2022 ICT Mentorship Episode 39

Summary

The speaker emphasizes disciplined trading and skill development, highlighting the importance of consistency and patience over seeking external validation. They provide specific times for trading opportunities, focus on learning from setbacks, and stress the long-term benefits of mastering price action. The goal is financial independence, where the skill set learned can beat inflation and offer true autonomy. The speaker encourages a calm, methodical approach to trading, where success is built gradually, and stresses the value of a supportive community. Feedback is invited for refining the mentorship, with a focus on real, lasting results rather than quick fixes.

Takeaways

• 😀 Consistency is key to successful trading: It's not about making quick profits but about executing a few solid trades with discipline each day.
• 😀 Avoid ego-driven trading: Don't trade for clout or social validation, focus on results and long-term success instead.
• 😀 Focus on quality setups: Look for high-probability trades that align with your strategy, rather than chasing every opportunity.
• 😀 Timing is critical: Certain times of the day, like after lunch or during specific hours, are more likely to present good trading setups.
• 😀 Trading success is a marathon, not a sprint: Small, consistent wins can build up over time and lead to long-term financial freedom.
• 😀 Fear and greed should be controlled: Successful traders operate with emotional discipline, unaffected by market hype or personal ego.
• 😀 Learn from both successes and failures: Mistakes in trading are inevitable, but they’re part of the learning process and should not discourage you.
• 😀 Build experience step by step: Over time, each trade teaches you valuable lessons that add to your overall understanding of the market.
• 😀 Don’t rush to recover losses: Take breaks if needed and come back with a fresh perspective instead of forcing trades out of frustration.
• 😀 Trading is about self-reliance: Focus on building your skills, learning from real-time experience, and avoiding distractions from external influences.

Q & A

Why is it important to avoid 'willy-nilly' or undisciplined approaches in trading?

It is important because an undisciplined approach leads to inconsistent results and a lack of real understanding. Traders who try to recreate the wheel or seek clout often overlook the deeper principles, which eventually causes them to fail. Discipline is key to applying what you've learned effectively and achieving consistent success in trading.

How does clout-seeking behavior impact a trader's success?

Clout-seeking behavior is a distraction that prevents traders from focusing on the process of learning and refining their skills. Those who prioritize external validation over results tend to be less disciplined and often miss out on real opportunities. Successful traders are more concerned with results and less concerned with public recognition.

What is the significance of 'buy-side' and 'sell-side' liquidity in the context of the trading strategy?

In the trading strategy described, 'buy-side' and 'sell-side' liquidity refer to the market areas where large orders (either to buy or sell) are waiting to be executed. When the market breaks through these areas, it can indicate an opportunity for traders to enter the market in the direction of the break. Understanding where liquidity lies helps traders anticipate price movements.

Why does the mentor stress the importance of only taking one or two trades a day initially?

The mentor emphasizes starting with just one or two trades a day to avoid overtrading and to focus on quality rather than quantity. This helps build discipline, focus, and ensures that traders are learning to make decisions based on probabilities rather than acting out of fear or greed.

How should a trader handle losses according to the mentor's advice?

Losses should be viewed as temporary setbacks, not as failures. The mentor compares losses to getting a flat tire: they are frustrating but don’t stop you from reaching your destination. The key is to stay disciplined, learn from the loss, and not let it affect your emotional state or decision-making in future trades.

What does the mentor mean by 'money management' and why is it important?

Money management refers to the strategies traders use to manage their capital, including determining how much to risk per trade and how to protect gains. It’s critical because it helps traders avoid catastrophic losses and ensures that they can continue trading over the long term while preserving their capital.

Why is the mentor not promising that traders will get rich, and what is he offering instead?

The mentor is realistic and emphasizes that he is not promising wealth or instant success. Instead, he offers a skill set that can potentially lead to financial freedom. The mentor highlights that consistent trading based on sound principles can offer opportunities to grow wealth gradually, but the journey is one of continuous learning and discipline.

What does the mentor suggest is a key factor to overcoming the fear of trading?

The key to overcoming fear in trading is developing a skill set that removes the fear of missing out, failing, or inflation. With practice and experience, traders will learn to trust their abilities, maintain discipline, and avoid letting fear or greed control their decisions.

What is the importance of backtesting and identifying key moments when setups form in the market?

Backtesting and identifying key moments are crucial for gaining experience and confidence in trading setups. By reviewing past market behavior, traders can recognize patterns that are likely to repeat, allowing them to trade with a higher probability of success. This helps solidify their understanding of price action and reduces emotional decision-making.

How does the mentor suggest dealing with moments of frustration or the urge to quit?

When feeling frustrated or overwhelmed, the mentor advises taking a break, even a week off, to reset and come back with a fresh perspective. It’s important to keep the experience enjoyable and not force it, as pushing too hard when you're not in the right mindset can hinder learning.