Original subtitles

Welcome back folks.

This is month two of the ICT mentorship.

It says teaching one of eight of the second month of 12.

And we're really dealing specifically with growing small accounts without high risk.

Before we start, obviously we need to know what it is that we need to avoid.

The first thing you need to do is do not try to rush, to make massive gains

in either pips or percent returns.

I can tell you I fell victim to this as my, as a new trader, I went in thinking

I can get rich really, really good.

As a trader after I started seeing how fast profits can come, uh, it kind of

makes you think that it's like the lottery every single time you sit in front of

your computer and it's not the case.

Okay.

So as a new trader, the first thing you want to do is kind of suppress that

desire to try to chase massive gains.

And it's either in a total number of pips.

Cause it seems like it's a trophy thing to tout that on the internet or.

Or mediums like Twitter or Instagram of Facebook.

Uh, it's not important how many pips you have, and it's not

important how much money you make.

It.

It's the percent returns to actually make a consistent wealth building.

And it don't chase high percentages.

You don't even really need high percentages to build wealth.

Do not open yourself to large risk in hopes of equally large returns or.

It's not necessary for you to have very much risk on your

trades to make a lot of money.

It's rather myopic and it's a misnomer for new traders.

When they come into this industry, they think they have to have a

lot of money and they have to put a lot at risk to make money.

Well, that's not true.

And the only reason why they think that is because they're trying to

make money quick, lots of money.

Do not assume taking small risk defined trades will not grow your account.

This is one of the lessons that took a while for me to

learn early on in my career.

Um, I thought I had to have a lot of risk on the trades and otherwise

I wouldn't see my account grow and that's not entirely true once I

understood the compound interest.

Uh, Uh, it doesn't take much time at all for your money to grow, and it

doesn't matter how much you start with.

You can start on a shoestring budget, even as little as a hundred dollars, a hundred

off can grow exponentially over time.

If you submit to it now, I think if everyone would start

with a hundred dollars, number one, you would never be broke.

If you made mistakes in there.

Secondly, who says that you can't add more money to it once you

become more confident, see, that's the part, everyone jumps ahead.

They want to take everything they're willing to risk and

lose, but not really lose it.

And they put it in their account and they put it all in one or two trades

and hopefully they get a lottery win.

You don't need to do that.

You don't need to do that at all.

You can actually define your trades with very, very low risk

in terms of total equity, and then watch it compound over time.

That's how you grow.

Do not sacrifice trading equity for poor planning or lack thereof.

Like I just mentioned in point number three, it's very important that you

understand that there is not a necessity for large risk to build wealth.

You need to have consistent parameters that will allow you good risk.

For each trade with well-defined low risk parameters, the setups

need to have well-defined risk 2%.

Ideally if you're a new trader, but no more than 2% on an average,

you don't need to have any more risk than that to build wealth.

What do you need to aim for?

What specific things should you be focusing on going forward?

If you have a small account in how to start building it up?

Well, you need to determine how realistically you can anticipate

a favorable reward to risk model.

What does it look like?

We're going to talk a little bit about that in this specific team.

You're gonna have to learn to respect the risk side of the trade setups

more over the reward too many times.

And I did this too.

It was a new trader.

We don't, we don't think about losing money because after all,

we're always going to be right.

The fact that we think about the profits solely, and we don't really

concern ourselves or respect the fact that we could lose on every single.

How many times have you started a trade as a new trader?

Now, maybe you were nervous when you, when you first got in it,

but when you first put the trade on, greed puts you into that.

Greed puts you into that position where you're trying to make money,

but once that transaction starts and you're in the marketplace,

that greed transfers into fear.

I hope I make money.

What if I don't make money?

See, when we first put the trade on it, we're not necessarily fearful, but unless

we're fearful of missing the move, it's greed that puts you into the trays.

But you need to learn to respect the risk side before you take

that trade and execute on it.

Because if you don't focus on that side, that's the part that hurts you.

Nobody gets broke by taking profits, but they all go broke by taking too much risk,

identify, trade setups that permit three reward multiples to one risk or higher.

It's very important.

And we're gonna talk about specific numbers and how it's actually,

uh, uh, measurable in terms of.

But you want to look for trade set to have three to one payouts and for every

$1 you're risking, you hope to make $3

frame good reward to risk set ups to have little impact.

If unpriced.

Again, that gets back to having very small risk.

If you have very small risk well-defined trade setups, you're never going to

worry about, well, you might get a loser here and there and you might

get a string of losses, but it's not going to take you out of the business.

It's not going to take you out of your career of choice.

You came into this industry to make money.

You want to obviously change the course of your life in terms of financial.

Um, uh, fluency.

And even if you're not trying to get rich, if you just trying to have a

passive income, maybe you're trying to supplement some of your, uh, your, uh,

your bills, your monthly costs of living.

You know, you came in here with a monetary desire.

So keep that in mind.

You want to do this for a long time, not just get lucky for a short period

of time and make a lot of money.

Cause that doesn't happen.

No one does that.

Forex is not the lottery.

All right.

The reality of re reward to risk ratios.

Okay.

What will you need to see in performance for profitability now, everyone

thinks they're going to never have a.

When he first started out everyone, Superman, that can't go wrong.

Your system's going to be the best thing since sliced bread.

Don't worry about it.

You'll never have a loser.

No one starts in this industry with that as a, um, hit the ground running.

You never have any losing trades.

You're going to encounter that.

So when we talk about accuracy, accuracy is not even necessary in terms

of high-end accuracy to make money.

You don't even need high accuracy.

But you do need time.

Time is the missing element and that's the secret.

That's the holy grail to allow compound interest to do its magic.

So my question to you is this, do you think that you're a 75% win rate trader?

In other words, every train you get in is 75% of those trades winners.

If that's the case, you're winning.

That 75%, that is actually very high.

And your ratio terms of what you're hoping to make in terms of your risk.

It's really low.

You don't need to have very much in terms of risk to make $1.

If you had 60%, you have even still, you have less in terms of what you

have to take on as risk to make $1.

But when we get to 50 50, You got to start risking a dollar for a dollar.

Then at 40%,

the ideal ratio would be, you're trying to make a dollar 50 for every $1 to be

profitable when you're only 33% accurate.

Ideally the minimum is you're going to be looking for trades

to pay you $2 for every $1.

At 25% accuracy.

Now, folks think about this.

If 75% of the trades that you take are losing trades, the minimum ratio

for profitability is you have to look for trades that pay out three to one.

Now think about this for a moment.

If we look at the low end objective in terms of accuracy, that means 25%.

We're looking for trades that are going to pan out, hopefully $3 reward for $1 risk.

So if we have that scenario and we are able to take a trade and risk $1 and make

three hours in return, we can be wrong.

75% of the time and still be net profitable.

Now think about it.

If you grow in your understanding of the things I'm teaching, you say you

become profitable to the degree where half of your trades are profitable.

That means the ability for you to find three to one trades more than

doubles that more than doubles.

So that means your accuracy grows, but yeah.

Reward to risk ratio.

If it just stays three to one, you're going to have more trades

that pay out three to one.

Therefore your equity is going to increase exponentially.

Now what happens when your win rate goes up above 50%?

What happens if you have a 65 to 70% accuracy and you're looking

still for three to one trades, your money grows exponentially.

What happens when you start looking for reward to risk ratios of $5

paid out for $1 risk and you have a 70% accuracy, suddenly wealth

is not that far at a region.

Now looking at an example of trading with statistics behind it,

I think everyone would agree that to make a percentage increase of 50.

Inside of one month is actually a pretty good feat.

Now I'm not advocating that everyone's going to be able to

make 50% return in one month.

It's not going to happen.

That if we have an account that would be relatively small.

And I'm going to say for the benefit of, uh, an example, um, we're going

to say 5,000 hours is something that everyone's, uh, uh, able to do

once they understand how to trade.

We're going to say that everyone is willing to put

$5,000 into a trading account.

And you'll determine when you're going to do that.

I'll never tell you when that's going to happen.

You make the decision on your own, but let's say for instance, you put

$5,000 in an account and you use.

Some, uh, some of the ideas that we teach here and you you're able

to find big payouts, big reward to risk ratio, trade setups, to

make a 50% return on your account.

In one month, it doesn't take many trades to do that, but it does

take highly selective setups and you have to do certain things to

make this, uh, um, uh, pay pay now.

And here's the thing.

Once you get one or two of them in.

Month in terms of trades, you can now start lowering your risk

to reward ratio, trade setups.

If you want to stay busy, you can still do very well by adding more percentage-wise

on your account, but you don't need to go out there every single time.

Looking for big payout trades, you can get bread and butter scenarios where it's

two to one, three to one scenarios where it's easy to get these, uh, payouts.

So if you started with $5,000 and you were able to find

setups that do do these things.

And that's what I did in my FX book for this mentorship, I show over 50% return

and I didn't do many trades at all.

It wasn't many trades at all to actually brought this type of return.

The profit actually grows over.

$2,500 and that's not bad for, for an account that would start with $5,000, not

a whole lot of trading in the first month.

That is what is possible, but not a standard.

Do not expect this as a normal, every single month type thing.

But think about this, if you could show a 50% return just for the

year, how amazing would that be?

If you were able to take your money and compound it, where you had a.

Uh, 50% per year, that blows away every money managers, goals out there.

Uh, it certainly blows away any kind of a stock return, you

know, IRA or anything like that.

It, it, you would be outperforming every asset class that's available to you.

And you think about what you're able to do.

You can do that in a month.

If you could do that in one month, looking for high payout, low

risk, imagine what's available.

This is the one that you want to pay the most attention to.

And I said, you have to respect this side of it because the

draw down is what will hurt you.

It'll hurt you psychologically, and it will hurt you monetarily.

So as you can see what we're doing, Well, our goal is, is

to have little to no draw down.

Now you're going to have draw down.

This account will have draw down.

You will see it.

Uh, it's not my goal to show you massive drawdown so you can

see how it comes back from it.

The idea in this mentorship is to avoid large draw down

and obviously in one month taking 10 trades.

Um, I tell everybody my average, uh, goal for the week is 50 to 75 pips a week.

And.

You can see here, the average, when is 51 point 80 pips.

And with 10 trades, a total haul of 518 pips for the month.

And I think that's a pretty consistent for what I'm able to

do on a month to month basis.

I don't try to do anything more than this.

This is like my sweet spot for my performance.

And I try not to do anything above this.

And every time I try to do that, I get a king Kong feeling and, you know,

king Kong it and they're moving and he fell off the empire state building and

didn't live too much longer after that.

So I learned that lesson as well.

All right.

So what should you focus on initially?

That's right.

6%, 6% of what?

6% of your equity compounding per month.

Now it doesn't sound like much.

It doesn't sound sexy.

It doesn't give you the willies.

Well, guess what?

It only takes you 20 pips per week to do it.

And it only requires one and a half percent.

And it only requires one to one ratio to do it.

That means if you find a trade that pays out potentially 20 pips, and

you can frame the trade where you're only taking 20 pips risk, guess what?

That's all that's necessary.

And they happen every single day.

I'm not advocating, looking for one-to-one ratio trades, but I'm going to show you

by example, how easy it is to get that once your accuracy increases and your

understanding of price action, these setups are there every single trading day.

Now, again, I am not, I preface it again.

I am not trying to instill in action.

Warrior hero where you go in there and you're trying to prove to the world that

you can trade every single day and get your 20 pips 40 pips or whatever it is

you're trying to do every single day.

I don't think it's something that can be done consistently every single day.

If you do, you're inviting.

And there isn't a trading day that doesn't look good initially and go sour quickly.

You want to be trading in highly selective conditions.

And when you do that, even with low reward to risk ratios, one-to-one, you

can still find one and a half percent return payouts per week, one trade.

That's all you need.

And you're actually going to have a little bit more than 6%, but what the

6% do compound that every single month, it doubles your money every single year.

And I don't care what your equity size is and you start.

Now I can't lift a thousand dollars.

Your risk per trade is going to be one and a half percent or $15.

That's it.

You're only risking 15 bucks.

Now, if you lost $15 and you had a thousand dollar account, are you going to

go home and take it out on your family?

No, most people wouldn't do that.

And if you would, then you're probably not meant for trading.

So what you'd be risking is 20 pips from your entry price and your

profit will be taken at 20 pips for a one and a half percent return.

But here's the thing.

It's easy to say this in number form, but how does, how do we find it?

Where did, where did he set up the curve?

Well, the 6% per month setups, they form specifically in the easiest ones

to find are looking at your daily chart and they make it easy to do.

What is it?

What is it specifically you're looking for?

Well, you're going to lead looking for the things that I've talked about in

the very first month of this mentorship.

One specific is an order block, wherever there's a price point at which a

move quickly moves away from a level.

If it, in this case, it's movement up.

We find that down candle right before the move goes higher.

When price goes back down into that down candle, we have a really

good probability, especially off of a daily chart that you're going

to get a 20 PIP or more prices.

Now magnified in zoomed in, we can see that that order block is noted with the

two areas, drawing your attention to it.

We're looking at the body of the candle, which is the opening lowdown

candle up to the high that candle.

Okay.

And it's a fair value gap price.

You can see trades right back down into that level, right?

As price hits that on that particular day.

That's when you'd be looking for a trade, you'd be looking to go long there.

Okay.

But not just simply as it hits that level, we're going to wait for

something to give us confirmation.

Obviously the same thing occurs when a lower timeframe

we look for the order block.

We're just going to scale down cause everything in price is fractal.

So we're going to highlighting specifically the 0.7, five, 12 level.

Okay.

So we have a one hour chart we're zoomed in and you can see price shows

an old low right here and below old Lowe's we know there's going to be

cell stops, resting below there, and the price drives down below that.

Taking out an area of cell stops, we're running into a liquidity pool,

but it goes specifically down into that one level that we identified on

the daily chart, meaning 0.7, five.

Price trades down into that level and slams right into it.

Now we are in turtle soup conditions.

That means a bright below an old low, we could potentially expect this market

to run higher when it hits this level, when an hourly chart, we can simply wait,

we're going to wait for confirmation.

The market wants to go higher from that level.

In other words, we're going to wait to see if the bank sponsors that level.

If they do.

We already know by looking at what we've learned in the first month.

There are buy stops above these equal highs, right above here.

There's equal highs.

And I'm going to ask you before I show you again, where else would you

expect by stops above the market?

The place to be residing in.

That's right, right there.

So by stops are above us.

So we can map out areas at which we can look to take our profits

before we even put the trade on.

That's important.

You need to know where you're at in terms of risking and rewarding.

Where are you going to take your profits?

Where do you think the market's gonna be drawn to?

And why should the market right.

At these specific levels about looking at that 0.75, 12 level.

That's important because we know our, our traders, our trade is

being framed on a daily chart.

It's not a five minute set up.

It's based on a institutional level on a daily chart.

Now here we have the market trade up through the down candle, right in here.

That's the bullish older block price trades through it here.

Once it happens, we identify the opening and high on that candle.

That's where the Bible.

Okay.

So in this area, if we use the opening on that candle, we're going

to add our five pips spread to it.

Okay.

And build that in and you can see our order would be around 0.7 5, 4, 2.

That would be our limit order.

So we would be long there on this candle.

It drops down into it.

We would reasonably expect to see our entry to be filled at that price point.

Now, obviously, if we're going to read along there, the parameters

for trading with 6%, so.

Because our, our aim is to first get ourselves in sync with trying

to double our money over the year.

Not this week, not this month, we're trying to double our money over the year.

That's low hanging fruit.

That's easy for a new aspiring trader to grow into it.

Doesn't give you the PIP drunk mentality.

You're not trying to force a million dollars into your account right away.

It's gradually adding a flood.

So you're gonna define your risk by saying, okay.

I want to take a stop at 20 pips.

Okay.

And guess what that does.

It puts your stop below the middle of that down candle.

So you have a good risk model here and also it's framing it really well because

we don't want to see price go down below the mid point of that down candle.

It's already shown a willingness to drop the low here and take the stop.

So it wants to obviously want to go higher if it's going to go higher, it

won't come back down below the middle of that down candle or bullish or block.

So our stops at 75 22, our entries at 75 42.

We have a 20 PIP stop loss.

And obviously as soon as we get to this level here, we're already at one to one.

So at this point we could be long here, right here.

We're already at guess what one and a half percent.

Now once we get to one and a half percent profit, does that

mean we collapsed the trade?

We can.

Absolutely.

We can.

That's a one-to-one gearing and we would make our one and a half percent return.

And it's that quick, you're over in a couple of hours you're done

for the week, but what did we first start this trade with?

We framed it with the buy stops up here and the by stops up here.

So when price goes to our first profit, we can start taking our risk and reducing.

Taking some of it off.

In fact, we could probably do this.

We could take half the position off and guess what we'll do.

We'll make 0.7, 5% return on the trade.

Once it gets to this level here, right up here, that's the first objective.

So now we've already banked the 0.7, five or three quarters of

1%, and we are allowing the price to expand up to another level.

So now guess what?

As soon as we get to this level here, we're back at one and a half percent.

We made another profit objective here at a multiple of two.

So now we're at one and a half percent again, but we've already

banked three quarters of 1%.

Now mind you don't want to have percent is open profit it's paper still

hasn't been realized yet, but have we reached into the buy stops yet?

No, we have not seen anything.

In terms of these buys stops over here being reached into or swept.

Guess what happens?

Multiple three comes in.

Now we've added another 20 pips of profit and we cleared up the stops.

We can take another portion of our position off.

We can take a quarter of it off.

We can take, uh, uh, uh, a half of it off you, whatever it is that you

want to do, I'm not giving you any structure yet, but I want you to think

about paying yourself right here.

Okay.

And you would have done well over what will be necessary to make

one and a half percent, right.

And you graduated your exits based on logical areas of where probably

should reach at this point here after your second multiples reached,

your stop needs to be at breakeven.

So you'd be down here at your entry.

So now you would have right now, no way for that to take

you out below your entry point.

Okay.

And you've already banked a position in the position that you've scaled.

And obviously multiple forest hit gets real close to where our bus stops are.

So we would reasonably expect this to do what maybe consolidate maybe

retrace a little bit, but still reach for another area of liquidity

above these equal highs over here.

And ultimately we get a multiple of five.

It clears out the buy stops over here.

And guess what?

I'll leave you to study this in terms of how many opportunities you could have

done in terms of scaling, if you would.

Um, took off half the position at, um, multiple of one.

In other words, if you made 20 pips, if you'd taken half of it off

and you let the remaining half run all the way up to get these, uh,

stops, how much money would that be?

How much percentage would that be?

What would that do for your account?

What if you took off?

What if he took off one quarter?

Over here at 20% and let the remaining balance run.

What if he took off three quarters of it off here and left one quarter

of the position I want to run.

All of these things are for your study.

And it's important that you do this because I want you to think

about what is available to you.

This is only one set up framed on a daily chart and it was aiming for what?

By stops.

We've already identified.

Those by staffs were reached into right there.

Everything that was shown to you in month one was used here in illustrative purpose.

So now you can see how easy it is to get that 100% return a week and you

don't need it to get it in a full shot where you get in and you get out

all four in all four out in terms of entry and exit, full position on full

possession off, you can graduate.

Your, your position profits and scale them out logical levels and

still allow your little bit of a portion of the position to pay out.

Amazingly.

Think about this.

Let's say you took off half the position here.

Okay.

So you have 0.7, five or three quarter percent.

So now here you got a three-quarters of 1%.

Again, he had one and a half percent.

Here's 3% return just on the second half.

Now, think about that.

You made three and a half percent on the second year.

Plus three-quarters of 1% share over 4% just in that trade with

graduating it and just scaling it out.

Now, what if you did that every single week.

Now, how about this?

What if he did it twice a week?

What happens if you do it three times a week?

How much does your money grow?

If you trade like this, everything is organized.

Everything is specifically designed.

You only execute with one specific task.

In mind, you buy at specific levels, you sell at specific levels.

You trail your stop.

Only when specific levels are reached for we're going to give you all these things.

But think about this.

This is a five to one setup.

This is what a one shot, one kill looks like, and it's framed on a daily.

It's going to give you institutional sponsorship.

There should be a willingness to see price rally down here.

Why?

Because it's off of a daily order block, the banks trade off of daily levels.

So hope you enjoy this teaching.

Um, the next two will be actually, uh, giving you more detail about

trade ideas and scenarios like this.

So that way you can build your, uh, understanding about how

you can build your, uh, equity and grow it from even a small.

And again, if we started with a thousand dollars, okay.

A thousand dollars becomes over $2,000 after 12 months.

And I know some of you don't think that's great, but guess what?

That does in 10 years, if you stick to it, never add another

penny out of your pocket.

It's over a million dollars.

And my question is where are you going to be 10 years from now?

If you have a thousand dollars in your hands right now, will you have

a million dollars, 10 years from now?

You've got no excuse not to now until next time, which you

good luck and good trading.