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Okay folks, we're really looking at how traders make 10% per month.
And we're going to stick with our theme here using our case
study on the Aussie dollar.
Now quickly, obviously going through everything we've gone
through in the previous two sessions, um, we've identified
as 75, 12 level on a daily chart.
We've brought that down into a hourly chart.
We noticed that there was by stops the us.
So we know that there's liquidity pools resting above those specific highs.
So the markets that should be reaching up there as much as a hundred pips from
the level we're identifying, uh, 75 12.
So they're easily get up to a 76, 12.
Looking at
the 15 minute timeframe.
As we assume earlier in this series, we've shown that there was a BI
set up at 75, 12 on a daily chart.
Uh, we had a old, low everything that we referred to and what
to focus on in September.
Everything is being identified in this specific case study.
We don't really require.
The market to give us an hourly up to get in and use that risk.
We can use a 15 minute timeframe and used the framework that price gives us
on that specific timeframe relative to what you see on a 15 minute timeframe.
Yeah.
Obviously the risks can be reduced from what will be seen on an ally chart.
And then just as well, the 15 minute chart can be reduced down into a
five minute chart and we identified where the stock could be in relative
terms to the bull shorter block.
And we also framed out where three to one reward to risk ratios would unfold.
And it happened to be rate below our first area of buy stops or
the five minute liquidity pool.
Now this is nowhere near the level of the objectives.
We identified framing the trade on an hourly chart and
just giving you the context.
What if we were to look at the market like this and say, we traded this particular
payer and we had a 2% risk on the trade.
If we had 2% on the trade and the market trades up to this high, where the buy
stops are, and it's a liquidity pool, the market should respond off of that
75, 12 levels because it's a daily chart reference point or bullet shorter block.
If we take our 2% position and take half of that position off, as we
get three to one, noticed it doesn't have to even throw out the buy stock.
These by stops, don't even have to get blown out.
This is three to one reward to risk, so we can take first profit and bank
a 1% times three are so we can make 3% on this one trade here and still
leave the second portion of the trade on aiming for what there's liquidity
pools referenced on the hourly chart.
Now as price explodes and it goes through those buys stops.
Obviously you can see going up to a 15 minute timeframe.
Now we can go and look at higher liquidity polls reaching into higher
and higher grade liquidity pools until we get to that hourly chart.
But for right now, just simply look at what's already happened.
The framework we used for the five minute chart that we've
outlined in the second session.
That model on risk allows us to have 1, 2, 3, 4, 5, 6, 7, 8, 9 are.
In other words, we made $9 for every $1 risk, just reaching into
the 15 minute by stop liquid.
The liquidity pools that we saw in our chart, that's, what's being identified
for our objectives, but now here we have, we have a, uh, a crossroads.
You, can we take some of the position off here or do we leave the second
balance of the original position with 2%?
We only have 1% remaining on, we could take a portion of that off,
or we can leave it to go higher and reach it as a higher objective.
The choice is going to be yours.
Preferably, I think I would like to take something off because we're in a
really nice liquidity pool relative to 15 minute timeframe and we might get
some consolidation or could be wrong.
Could even reverse here.
We don't ever know that, but we are trading with higher level
institutional or flow relative to that daily or block from 75 12.
We have seen expanse on the upside.
It's now taken by stops in the form of a liquidity pool and a five minute chart.
We just shown.
Then now we've see the 15 minute liquidity pool and that buyer stops over here.
That's been violated.
So we've already seen nine to one payout, which is astonishing by any measure
and in letting the price go a little bit further.
Once we cleared this by stop the area.
Would be reached into as well, and we'd have 15 R as well.
Now this is the liquidity pool that we resting around that same hourly basis.
I'm just viewing it in terms of the 15 minute chart, you can see the
expanse and it's available to you.
When you look at the market, framing it with very low risk, very low risk.
Notice also, we took first profit at a multiple of three to one.
So we made $3 for our $1 risk.
As soon as we did that, we've already made 3% on the street with ultra
short-term risk, less than 10 pips.
That was it.
Less than 10 pips, but let's say we reframed a trade with a little
bit more than that and say, we used a little bit more comfortable
stop and say it was a 20 PIP stop.
Could that still pay out in handsome?
Why wasn't it.
Obviously the market reaches above the stops.
We noted the market reaches for 10 and 20 PIP grades for stop sweeping.
We had the old high back here and price just gets real close to it, but
expands right above where we would expect to see price reach for here's.
What I want you to focus.
The potential range was about a hundred.
From where we were looking at buying and where we thought the price was going
to go, we don't need the absolute high and we don't need the absolute low, or
we're looking at the lions portion of the move about nine, about a hundred pips.
Let me ask you a question.
Do you think you'll get every PIP of every potential range you
identify as potential profit.
If you're insisting.
You're going to be frustrated, but you don't need that.
What happens if you just had half of the range?
Would you be disappointed if you say yes, you would be disappointed.
My question is, is why would you be disappointed?
Is that better than what you're doing now as a new trader, it's probably going to
be very easy for you to say, well, that would be better than I'm currently doing.
Now.
Let's look at some numbers.
Assume for a minute, we had a $1,000 trading account and we set the trade up
originally, as we did with the five minute chart, less than 10 pips, we're going to
say we rounded it to a 10 PIP stop loss.
And the market came up and allowed us to get our three
to one multiple in this trade.
We would already have 3% paid.
Now, we're going to assume that you've gone through the mentorship.
You've learned how to do this.
And you've gone to the point where you are comfortable trading with life funds, or
maybe you're still in the demo account.
If that choice is yours, you have to make a decision in timing for your own sake.
I can't do that for you, but say for instance, you're
looking at the trade and it.
Praying, just like we were outlining it here and it allows you to get a
2% position on to trade is 2% risk.
If you have the opportunity to get three to one paid out and you take that off
your position, now you have 1% remaining.
The first 1% taken off with a multiple three to one.
Be taking profits at 30 pips.
You've already banked 3%.
Look what that does in a month by itself, it's over 10%.
So even if that's all you get is the first profit objective of three to one.
So if you frame your trades with really small risk, it's easy to get multiples
of three to one or more for your reward.
So your, our levels are easy to get to when you start refining your risk.
See it's not having big risk that makes the money.
It's having this small risk that makes the money.
That's the real secret.
The fact that you need to be able to frame your trades on levels that
should see institutional sponsorship.
That means should the banks propel price higher or lower because it's off a daily
chart or a weekly chart on monthly chart.
Those levels are going to be highly impactful in terms of price.
They they're going to drive price higher and lower relative to those levels
because that's where the real orders are.
It has nothing to do with your indicators, has nothing to do with
your supply and demand, or your theory on price as nothing to do with that.
It's where the orders are.
And the orders are going to be around monthly, weekly, and daily levels.
Now, what if you let portion of that second half go and you
only got half of that 100%.
Remember, we were looking at that setup.
It was potentially a hundred pips available to you, but say you only
let it go 50 pips and you just couldn't bear to hold onto it.
And that's all you could do.
Or you did something and it got, you stopped out early.
Okay.
You showed your stop up too aggressively and you only managed
to make 50 pips out of that.
Now this is assuming you've already taken that first 1% off.
This is the second 1% that's remaining.
By itself, if you collapsed it, 50% of the, uh, a hundred pet range where
you're looking at you're tacking on another 21 plus percent for the month.
If that's all you're doing week after week, if you're getting scenarios
like this one trade you're focusing in tightly watching one setup and
you milking it for everything that it's worth, keeping the risks small
and looking for higher timeframe.
If you do that, you're looking at 21 plus percent, but it's going to
call it 21, plus your original 3% on the first half of that trade.
So really what are you making?
And you didn't even get the entire 100 pit range.
Now think about that.
We use the same scenario where we use the 10 PIP stop and we
let the second portion run.
After three to one was taken off at 30 pips, then we'd let the remaining portion
run and say, we only managed to get here.
100 foot range who would be upset.
Would you be upset with that?
I don't think you should.
If you are it's greed, you can't allow greed to do this to you.
Now, what happens if you get the entire 100 pet range, say you
get your 100, put a take down.
No one shot.
One kill you.
Get it for the entire week.
The second portion of that trade net you over 46%.
That's in one month.
Okay.
If you'd let this continuously paying out and you do this every single
week, and you're looking for one shot, one kill seven areas, and you
get 100 PIP objectives taken down on the second portion of your trade.
Remember, you're already taking partials off at three to one.
So you're taking 1% off.
If every trade you take is 2%.
Once you know what you're doing is scale off 1% at three to one.
And you wait for the second portion of reach for these higher, higher timeframes.
That's how you make a lot of money.
You pay yourself initially get paid, pay the trader, take partials.
Don't listen to people that don't make money.
You have to pay yourself because you don't know if your trade is going to
pay now, but once you get three to one, you've already, you're already living
in an environment that pays exceedingly.
Well, think about that.
If that's all you managed to do is get first objective at three to one.
It's all you ever did.
Nothing ever panned out beyond that who would be complaining about.
Only folks that are demanding precision beyond your personal
efficiency right now, you can't do it.
You don't have that level of efficiency yet you can grow into that over time, but
you have to allow that time to take place.
But if you get these one shot, one kills where you're looking for a nice
weekly trade of a a hundred pit range.
You don't need the 100 pit range to pay you out handsomely.
But if you go in aiming for it, once in a while, you'll.
And we'll just play devil's advocate for a moment.
And again, we're going to assume for a moment you did, you're able
to take down a hundred pips a week.
It may require you to do another trade that pan out to
get to that a hundred pips.
I'm not telling you to force yourself to get a hundred pips every week, but it
may require you to do a second trade or a third trade, or you may take another trade
and it reduces you down to just this.
You didn't lose you.
You're going to have, you're going to have, uh, encountered, uh,
uh, barriers like everyone else.
Doesn't.
But if you're making your second portion of your trade paying out and
you're reaching for higher timeframe objectives, like we just framed,
it does trade a low risk trade.
It's been framed on a higher timeframe.
Premise with the things that I taught you to focus on on the
month of September is content.
The second portion of the trade will always make more than the first.
Obviously you're getting out early with a portion of the partial is not a weakness.
It's not an impact.
To you make you more money.
When, when, when traders or educators or other folks say that you're taking off
some of the trade before it gets to a, uh, a profit objective that you've had in mind
beforehand, that's coming from someone that does not make money consistently.
And I'm telling you because they're forcing themselves to hold on
for their ultimate objective.
And they're too black and white and profit taking you.
You have to pay yourself when it's available.
If you're at binary, it's all or not.
You're never going to be as good as you think you are.
Believe me, I'm very proficient with price action, but I don't demand
everything all off at my profit objective.
My higher end profit objective.
I learned to pay myself because there's many times I've seen, I've had
really handsome profit sitting in the trade, but I did not allow myself to
take something off and I watched it come all the way back and turn it to.
Or come back and take me out with, uh, a modest stop-loss and then running
my favor, which is very frustrating.
And you've probably encountered that yourself,
but let's say for instance, you couldn't manage to do that trade
with 10 pips and you were just stuck to that one hour set up.
No problem.
No problem.
There's no reason to be upset about that.
If you allow that 20 pips set up to give you a 50 PIP run.
Okay.
Think about that.
If you take the first portion of that trade off and you
only get 50 more pips beyond.
In other words, you've, you've placed your trade on and you paid yourself a modest
30 pips moved to the sidelines, and then you only managed to get another 50 pips.
Well, you made over 10% right there on the second portion of the trade.
It's not about how many perfect exits and entries you get.
This is after your first profit, you pay yourself something
and then let the partial run.
The balance has to run, and that will always pay you more.
And here's the thing, the psychological effects of it not
being a, a trade it's already paid you, you you've taken some skin off.
And that's good because you have one pound of flesh now.
Okay.
For your time, your energy and your focus in that marketplace.
When you focus on trading like that 10% in one month on the back end
of your trade, that's not just w we've already factored in counting
the first portion of your trade.
That goes without saying that that leads to 12% by itself.
But if you can't do this ultra short-term trades, you can still do trades.
And that's still handsome.
10% compound that over the year is over 300% for the, for the year.
And that's amazing.
Where else are you going to get 300% return?
There's no money manager out there.
You're going to raise his hands eight.
I'll do that for you.
There's no fund managers going to say, Hey, look, you know, I'll,
I'll double your money in a year.
I can consistently do that.
I'm going to work hard to do that.
They're not working hard for you.
Okay.
They're doing very little to very lazy and you're going to watch your
money better than anybody else.
So when you see things like this, it's real important that you focus on
that number is an astonishing number.
You can do very, very well with tripling your money every single
year, 10% a month compound.
That does that.
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