ICT Twitter Space: How To Build Your Own Profitable Trading Model from Scratch

Summary

The transcript delves into the intricacies of trading psychology and strategy, emphasizing the importance of having a consistent model for engagement, whether it be short-term trading or position trading. It stresses the significance of patience, understanding market narratives, and the 'why' behind price actions. The speaker candidly discusses the predatory nature of successful trading, advocating for a mindset that views the market as a battleground where only the prepared and disciplined thrive. The summary also touches on the structured timing of trading, comparing it to the scheduling of a favorite TV show, highlighting the need for discipline and patience in awaiting the right opportunities.

Takeaways

• 📈 Focus on the 'how' of engagement by identifying your trading model: scalping, swing trading, or position trading.
• 🔍 Understand the 'what' by recognizing what you are patiently waiting for in terms of market signals or patterns.
• 🤔 Consider the 'why' by developing a narrative that explains why the market should behave in a certain way based on your analysis.
• ⏰ Emphasize the 'when' by recognizing specific times of the day or week that are most relevant to your trading strategy.
• 🔑 Develop trust in your trading model and stick to it rather than constantly switching to new strategies presented.
• 🛡️ Be aware of the mindset required for trading, viewing it as a battle where you are taking from others in the market.
• 🚫 Avoid the temptation to chase quick profits by sticking to a disciplined approach and not deviating from your model.
• 🧠 Cultivate an understanding of market narratives to predict how the market is likely to move and why it will do so.
• 💡 Look for specific market behaviors such as reactions to old highs, reversal patterns, or other signs that fit your trading model.
• 🕒 Be patient and wait for the market to present opportunities at the right time, much like waiting for a TV show to air.
• 🗓️ Schedule your trading activities within specific time windows to align with market conditions and your trading plan.

Q & A

What are the four key aspects of trading mentioned in the script?

The four key aspects of trading mentioned are how, what, why, and when. 'How' refers to the model of engagement, such as short-term trading, scalping, swing trading, or position trading. 'What' is about what traders are patiently waiting for or conditioning themselves to anticipate in price action. 'Why' is the narrative or the reason behind why the price should react in a certain way. 'When' is about the specific time of day or calendar day for trading.

What does the term 'scalping' refer to in the context of trading?

Scalping in trading refers to a strategy where a trader makes many trades within a short time frame, typically aiming to profit from small price movements and often holding positions for only a few minutes.

What is the importance of having a consistent model in trading according to the script?

Having a consistent model in trading is paramount because it allows traders to deliver results consistently. It helps traders to understand the market's behavior and their own trading style, leading to a more disciplined and profitable approach.

What is the 'narrative' in trading as described in the script?

The 'narrative' in trading refers to the underlying reasons or the story that explains why the market should behave in a certain way. It's the trader's understanding of the market's likely behavior based on their analysis and expectations.

Why is it crucial for traders to have an understanding of why the market is behaving in a certain way?

It's crucial because understanding the 'why' behind market behavior allows traders to make informed decisions. It helps them to anticipate market movements and react appropriately, which is essential for successful trading.

What is the significance of the 'when' aspect in the script's discussion on trading?

The 'when' aspect signifies the importance of timing in trading. It emphasizes that traders should have a specific time frame for their trading activities, much like a TV show has a scheduled broadcast time. This helps in maintaining discipline and patience in trading.

What does the script suggest about the mindset of a successful trader?

The script suggests that a successful trader should have a predatory mindset, viewing trading as a battle where they are actively taking profits from others. It emphasizes the need for traders to be disciplined, patient, and focused on their trading model.

Why does the script compare trading to watching a TV show with a fixed schedule?

The comparison is made to illustrate the importance of patience and discipline in trading. Just as viewers wait for a TV show to air at its scheduled time, traders should wait for the right trading opportunities according to their model, without trying to force the market.

What is the 'Silver Bullet' mentioned in the script, and how does it relate to trading?

The 'Silver Bullet' is not explicitly defined in the script, but it seems to refer to a specific trading strategy or model that the speaker believes is optimal. It suggests that traders should find a model that makes the most sense to them and stick with it, rather than constantly chasing new strategies.

What does the script imply about the nature of trading and the market?

The script implies that trading is a competitive and aggressive activity where traders are predators in the market. It suggests that the market is not passive and that traders need to be proactive, waiting for opportunities to 'pounce' and take profits.

Why does the speaker emphasize the importance of not abandoning a trading model every time a new one is presented?

The speaker emphasizes this to caution traders against constantly switching strategies, which can lead to a lack of consistency and understanding in their trading. It's important to develop a deep understanding of a single model to achieve consistent profitability.