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One of my focuses is less
than six February, 2017.
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ICT mentorship swing trading's.
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Our topic for this month is teaching
is going to be focused on reducing
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risk and maximizing potential reward.
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Swing set up.
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Okay.
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Reducing risk is begins with knowing your
maximum risk purchase set up or trade.
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You should not allow high
risk percent portrayed.
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This equates to gambling,
obviously, and professionals.
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When they're trading, they look to frame,
set us with low risk and high reward.
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Now with swing trades, we're only focusing
on framing the monthly and weekly levels.
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Ideally.
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So when we look at monthly and
weekly levels, that it means the
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PD arrays for a premium, we're
looking to sell those levels.
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That means we're looking for bears,
shorter blocks, bearish liquidity,
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voids the trade up into the sell
short, optimal trade entries.
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Bearish.
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Uh, fair value gaps.
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Um, we're looking for old highs,
the short of false break above
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we're looking for rejection blocks
candles that have real long wicks.
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We're going, gonna look to try to sell
above the bodies of those candles.
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We're gonna be looking to sell
it old lows and old highs either.
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Or that same thing is seen as a premium
or obviously everything in reverse.
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We're looking for a.
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Mitigation blocks breakers.
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Well, shorter blocks voids below us
or lows and old highs and rejection
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blocks with candles to have long wicks.
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We'll S we'll look for cell
stops below the bodies of those
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candidates before I rejection block,
and by only framing trades along
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those monthly and weekly levels.
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Now, again, I elect to use order blocks in
the teachings because to make the video.
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With every possible scenario, it would be
ridiculous in terms of length, but you're
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looking for, in terms of the PD array,
matrix, everything above you, you go in
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the order that that matrix shows you.
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And again, there may not be a void.
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There may not be a fair value gap, but as
you progress through that list from the
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bottom up for premium PDRs, and from that
list top down for the discount PD, right?
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That's the order in which you hunt
the current range of trading him by
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using those levels or those arrays
on the monthly and weekly charts,
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it will give you the context of what
you're going to be trading off of.
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If we see the market is going to
give us a mopping weekly level for
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bearishness, we're going to be looking
for monthly discount arrays to reach into.
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And we're going to be looking for
the very first one in the list
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that may be a mitigation block.
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It may be a Bush breaker.
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It may be a liquidity void it's
below us, again, anything in terms
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of the discount PDRs, that will be
our objective on the monthly chart.
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So you're framing the trade on
the monthly and you're framing
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the objective on the monthly.
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So you're in looking for
massive amounts of range.
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So even though.
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These ranges are huge.
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Many times traders.
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If they are trying to trade big moves
like this, they still maximize their
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leverage and he still maximize their risk.
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And there's no reason to do that.
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Don't try to put too much risk
on your trade and try to get
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rich in a handful of trades.
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It doesn't work.
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Don't try to double your
account every single month.
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It's not, it's not necessary.
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And especially for some of you
that are in his mentorship that
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are aspiring to be fund managers,
you simply don't want to do.
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You want to keep your risk really,
really small, because that sells your
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business model to a potential clients.
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When they see how very low your
risk is and how consistently
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you're pulling in returns.
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And as we're going to outline in
this teaching, how we're going to
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get those returns to be really big
in relationship to the risk that.
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Again, looking at higher timeframe,
PDRs and using for our entries.
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This is going to permit your
setups to have tighter stops now.
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Obviously, if we go into later
teachings in this mentorship, you'll
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be able to reduce the risk even more
than we're going to outline in here.
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But for the average, Jonas, you know,
operating a business or working a job,
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a desk jockey, someone has no real free
time to be in here day trading every day.
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You don't need anything less than a.
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I think if you can't check your phone
a couple times throughout the day and
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you don't need a whole lot of time
checking it, but you just need to be
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able to have access to a four hour chart.
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And many times you're going to see
that the setups ACCE are around,
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uh, the, the close of the day.
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You'll be able to do a lot of these trades
framed the day before or the night before.
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So it's not like you have to be
in here every five minute basis
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and checking it all the time.
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By using the hard timeframe arrays as
we discussed a moment ago in reference
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to the monthly and weekly levels.
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If we are looking for that, the frame,
our trade, think about the massive
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rains that could potentially be there.
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And then we're going to reduce down
to a four hour timeframe to frame
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the entry by doing so we remove all
the necessity, have a big, huge stop.
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As we discussed in the position
trading methods in January.
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We were framing an
entirely on a daily chart.
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Now I'm not going to rehash the entry
techniques that was taught in January.
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I'm going to refer to you back to
that same limit order and buying.
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I want to start.
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So I'm going to stop those entry
patterns or those entry techniques.
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They're going to be applicable
to your swing trading.
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Okay.
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So just go refer back to those previous
lessons that we don't have to do a lot
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of rehash, but those same entry patterns.
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Used with your swing trades
on a four-hour basis.
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Those patterns for entry can
help you reduce your risk.
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Now, if we are focusing on these maximum
timeframes, monthly and weekly, and
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that's giving us the context for our trade
again, the range is being very large.
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Monthly ranges can be
several hundred pips.
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Weekly range could be a couple hundred
pips daily, a hundred pits or so.
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By having a four hour, it reduces
the ranges to a smaller, more
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conservative number in terms of
what we can frame our risk around.
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Use nothing less than three
to one reward to risk ratios.
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Now I say this as a reminder, but
you're going to absolutely have a
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difficult time having trades with
just three to one using this criteria.
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In many times, it's going to be five
to one, 10 to one is not unheard of.
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And we'll show an example in this
teaching and actually give you a homework
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to go in and look for other ones.
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Three.
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Oh one is easy.
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And when you treat with reward to
risk ratio conditions, you only
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need to be accurate 30% of the
time to be profitable, nothing
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about you can lose 70% of the time.
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If you're trading with three to one
reward, the risk, imagine being wrong.
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70% of the time and only right.
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30% of the time and still being
net positive, being profit.
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Being wrong that many times.
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Now, if you compound that with the
fact that you can get with five to
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one, 10 to one reward, the risk,
how many times can you afford
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to be wrong in those conditions?
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You could be wrong a lot and
still be extremely profitable.
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Now leverage is your holy
grail and swing trading.
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Okay.
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You're going to look to control your
leverage and you're not trying to maximize
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it just because your broker's trying
to give you 50 to one in the states.
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And who knows where you're at in the,
in the globe where they're trying to
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give you a hundred percent or more.
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I don't know.
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I don't keep up with anymore.
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In terms of who allows, what brokerage
firm did you give that type of unheard
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of leveraging, but I'm going to be Frank.
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Uh, you don't need that much, you know,
and futures is about 10 to one generally.
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It's that the, uh, the leverage you
get when you're trading commodities,
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uh, Forex in states, we have a maximum
leverage benchmark at 50 to one, and
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you don't need that to get wealthy.
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You certainly don't need
that to get wealthy, um, in
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a very short period of time.
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And I'm not trying to define it
in terms of late weeks or months,
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but you can certainly get there
before your 401k would give.
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All right.
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So maximizing the reward.
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Okay.
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This is obviously what everybody does
when they're trying to trade to try
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to get the most bang for their buck.
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Well, the key is only trade on higher
timeframe, monthly and weekly level.
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We already said this, but I have to keep
beating it in your head because you're so
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interested in these lower timeframes, not
so much now because we've been spending
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such a long time on the hard time frames,
and you've seen the importance of it.
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But these higher timeframe levels,
they are exactly what you're
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looking for in relationship to
smart money place, smart money.
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Can't see the five minute order block.
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Okay.
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The algorithm is this allowing the
price to get down to those levels.
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And then you're getting responsiveness
off that off based on limit orders.
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But those responses are really
patterned off of a higher timeframe.
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That means a daily, a weekly or a
monthly, and they layer their orders
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just above or just below these levels.
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They don't all have the set
entry order at the same price.
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So when we have these daily levels
or four hour levels, there's going
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to be a specific level in mind.
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For instance can be the big figure.
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It could be a 20 level, it could be a
80 level or 50 level, but just above,
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it would be, for instance, if we're
looking at the, uh, mid figure level
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and we're attracting some bullishness,
it could be a bullet shorter block
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that forms at the 60 level, which is
just 10 pips above the mid figure.
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But overall they're averaging
in and at 50 as a whole, but you
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can see order start building.
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With the lower timeframes as we'll
talk about when we get into short term
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trading and day trading and scalping,
but we don't necessarily need any
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of that to get involved with these
types of trades using a four hour.
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So timing for our entry on hard
timeframe levels that offers
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the maximum are multiples.
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Now what's at our multiple
that's your reward.
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On the, the risk that you're
associating to that trade.
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So if you're trying to get a multiple
of say five or get five are on your
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trade, you're trying to get $5 for $1.
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So if we're framing our trades with
nothing less than three to one, and again,
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it's very, very hard to find a three
to one trade on these types of setups.
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Many times it's like I said, five or
higher, sometimes 10, 12, even 15 to one.
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In some instances, if you look
hard and you wait for the setups to
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come, believe me, they are there.
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But having these are multiples,
that's what professionals do.
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We put very little money at.
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To get huge price moves, massive price
moves in relationship to the overall
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risk that we put to our account.
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Now, higher timeframe levels to
offer ranges of 200 to 500 pips.
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They can yield up to 10 R wins.
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That means, imagine you put a dollar
up, you're gonna get $10 back for that.
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How many times do you need to do that over
the course of a year, if you're managing
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funds to return a return of, I don't know,
20%, 30% where everybody goes as static
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as, uh, you know, the industry standard.
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If you can hit that me and
you're killing it, you don't
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have to do very much to do that.
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00:12:44,040 --> 00:12:48,360
And that's why I'm trying to stress that
if you think you have to trade a lot to do
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very wellness business, you are mistaken.
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Because you can manage other
people's money and get a great
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deal of money doing that.
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And you very little trading the
public to the uninformed money
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that place funds in your hands.
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They're basically uneducated.
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They assume for general principle
that you're in here every day, like a.
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00:13:14,355 --> 00:13:17,745
Basically like you've been doing before
you joined us mentorship every single day,
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scouring over into the charts, working
your rear end off to get very little.
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00:13:22,935 --> 00:13:27,975
So if your clients think that you
have that work ethic and you're
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working very, very hard when you're
really not working all that hard,
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00:13:32,205 --> 00:13:34,725
that's why these fund managers live
the lifestyle they have because they
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00:13:34,725 --> 00:13:36,795
do very little to get what returns.
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They put very little risk in there
because they don't want to scare the
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00:13:41,040 --> 00:13:43,440
clients away with a lot of drawdown.
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But if they take big, massive moves
out of the marketplace with very
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small risk, it looks amazing on paper
and it compounds the bottom line.
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00:13:53,460 --> 00:13:55,080
And it's a very handsome
reward over the year.
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Now, granted, some of you are probably
thinking I don't want 30%, Michael.
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That's just simply not enough.
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I need more than that per year.
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Let me tell you something.
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When you have $10 million
and you're missing.
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00:14:06,450 --> 00:14:08,010
And you show a 30% return.
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00:14:08,160 --> 00:14:10,800
Believe me, you don't
just keep $10 million.
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00:14:11,520 --> 00:14:13,980
People will start knocking on
your door, beating your door down,
227
00:14:13,980 --> 00:14:14,939
ringing your phone off the hook.
228
00:14:14,939 --> 00:14:16,200
Please take my money.
229
00:14:16,950 --> 00:14:21,360
Large, big buyers, large investors
will be beating your door down to get
230
00:14:21,360 --> 00:14:22,830
ahold of you so you can manage them.
231
00:14:25,290 --> 00:14:30,000
And remember there's typically one to two
swing trades per every four to six weeks.
232
00:14:30,600 --> 00:14:34,380
So about a month and a half or so, about a
month, month and a half generally, you're
233
00:14:34,380 --> 00:14:37,470
gonna get one, maybe two swing trades.
234
00:14:37,470 --> 00:14:39,840
The second one is just basically,
usually beginning around that
235
00:14:39,840 --> 00:14:43,080
time, but the frequency is about
one every four to six weeks.
236
00:14:43,710 --> 00:14:44,970
And that's a pretty safe assumption.
237
00:14:44,970 --> 00:14:48,030
And if you look at the, the timeframe
on a daily chart, you'll see that
238
00:14:48,030 --> 00:14:49,260
that's pretty much the average.
239
00:14:49,800 --> 00:14:50,730
So that means, okay.
240
00:14:51,765 --> 00:14:54,795
Presented a lot of time to
prepare for these trades.
241
00:14:55,245 --> 00:14:57,165
You're not over the charts.
242
00:14:57,195 --> 00:14:58,065
Every five minutes.
243
00:14:58,185 --> 00:14:59,565
You don't have to be
there every single day.
244
00:14:59,595 --> 00:14:59,865
Either.
245
00:14:59,895 --> 00:15:00,975
You can miss a day.
246
00:15:00,975 --> 00:15:04,215
If you have to, you have a life,
you have a business you're on you.
247
00:15:04,275 --> 00:15:05,595
You got to do a business trip or whatever.
248
00:15:05,895 --> 00:15:07,485
You can still swing trade.
249
00:15:07,485 --> 00:15:10,515
You don't need to do a whole
lot to do this by removing high
250
00:15:10,515 --> 00:15:15,285
leverage and coupling higher
timeframe setups with high RS.
251
00:15:16,125 --> 00:15:16,785
This is key.
252
00:15:17,775 --> 00:15:20,205
So if you can remove the high level.
253
00:15:21,735 --> 00:15:23,145
We're not trading with 50 to one.
254
00:15:23,985 --> 00:15:29,145
We're not trading with a hundred
to one, 200 to one or 401.
255
00:15:29,204 --> 00:15:33,375
If they even still allow that
anymore, by removing the high
256
00:15:33,375 --> 00:15:38,535
leverage, you can actually trade
with just three to one leverage.
257
00:15:39,464 --> 00:15:43,574
That means if you have a $10,000
account, you're only trading with three.
258
00:15:43,605 --> 00:15:43,725
Mm.
259
00:15:45,625 --> 00:15:47,155
And I know it probably
just blew your mind.
260
00:15:47,155 --> 00:15:47,604
What?
261
00:15:48,175 --> 00:15:49,495
I didn't come here to learn that.
262
00:15:49,734 --> 00:15:50,035
Sure.
263
00:15:50,035 --> 00:15:50,454
You did.
264
00:15:50,484 --> 00:15:53,214
You came here to learn and
be profitable and have risk
265
00:15:53,365 --> 00:15:55,885
managed, low risk, high reward.
266
00:15:57,145 --> 00:16:00,175
The way you answered that
equation is number one.
267
00:16:00,385 --> 00:16:02,635
You have to remove your leverage.
268
00:16:03,115 --> 00:16:06,055
Your leverage is going to kill
you when you build your positions
269
00:16:06,055 --> 00:16:08,275
up to the point where you can
eventually trade at a larger.
270
00:16:09,060 --> 00:16:12,150
Size and say, you get
into $2 million mark.
271
00:16:12,510 --> 00:16:15,060
You can start considering going
into, and you really should
272
00:16:15,060 --> 00:16:16,110
consider going into prime.
273
00:16:16,110 --> 00:16:21,480
Brokerage prime brokerage will not
allow you to leverage your D leverage.
274
00:16:21,780 --> 00:16:24,090
So that means whatever you
have on deposit, that's the
275
00:16:24,090 --> 00:16:24,900
maximum you're going to do.
276
00:16:25,860 --> 00:16:28,380
And then frankly, you're not even going
to trade with that leverage either.
277
00:16:28,950 --> 00:16:31,620
You're going to actually
be under leveraged.
278
00:16:32,400 --> 00:16:35,430
In other words, if you have a
million dollars on deposit, you're
279
00:16:35,430 --> 00:16:36,960
not trading with a million dollars.
280
00:16:38,705 --> 00:16:42,335
Many times you're trading with a half
a million dollars and then it probably
281
00:16:42,335 --> 00:16:47,765
sounds counterproductive, but you're
actually doing very well when you have
282
00:16:47,765 --> 00:16:53,165
those seven digits and you don't need
very much return to keep doing very well.
283
00:16:53,615 --> 00:16:56,675
And again, at that moment, at that
point, you don't want to risk anything.
284
00:16:57,125 --> 00:17:00,755
You want to keep your risk very small
and still allow your big profits
285
00:17:00,875 --> 00:17:02,435
in terms of reward to pan out.
286
00:17:04,385 --> 00:17:06,095
Now, if you consider that leverage the 3d.
287
00:17:06,839 --> 00:17:07,230
Okay.
288
00:17:07,230 --> 00:17:10,349
And you're looking for setups
that pay out as high as 10 are.
289
00:17:11,460 --> 00:17:13,950
You can, it can get up to 15%.
290
00:17:15,210 --> 00:17:19,740
So if you're risking one and a half
percent on your equity per trade,
291
00:17:20,159 --> 00:17:26,879
and you get a reward of 10 for $1,
you're making upwards of 15% on that
292
00:17:26,879 --> 00:17:28,740
one transaction or that one trade.
293
00:17:29,790 --> 00:17:31,230
How many of those do you need for.
294
00:17:32,945 --> 00:17:33,815
Now, these are math.
295
00:17:34,385 --> 00:17:39,965
Say you're getting an average of six
really choice swing trades per year.
296
00:17:40,805 --> 00:17:43,205
And I already know some of you thinking,
man, this is not active enough.
297
00:17:43,205 --> 00:17:44,495
I need to be doing something more.
298
00:17:45,125 --> 00:17:45,575
Now you don't.
299
00:17:46,565 --> 00:17:47,105
No, you don't.
300
00:17:47,315 --> 00:17:48,605
Well, who says you have to do more.
301
00:17:49,475 --> 00:17:51,545
You're here to learn how to be profitable.
302
00:17:52,325 --> 00:17:56,045
So if you can have a life, do other
things outside of trading and still do
303
00:17:56,045 --> 00:18:00,245
exceptionally well, think about it 15%.
304
00:18:01,395 --> 00:18:02,774
If you manage funds.
305
00:18:02,985 --> 00:18:03,315
Okay.
306
00:18:03,315 --> 00:18:07,365
And you're risking one and a half
percent risk, and you're using three
307
00:18:07,365 --> 00:18:12,195
to one leverage and you're using
an average of 50, 50 pips per stop.
308
00:18:12,615 --> 00:18:12,975
Okay.
309
00:18:13,185 --> 00:18:19,155
When you do that, focusing on just six
swings per year alone, and that, that
310
00:18:19,155 --> 00:18:26,385
set up an offering of 10 reward to
risk for $1, you get back 10, if you do
311
00:18:26,385 --> 00:18:28,274
that, you're more than doubling that.
312
00:18:30,395 --> 00:18:31,955
I think about that for a second folks.
313
00:18:33,065 --> 00:18:38,225
If you can look for setups that yield
10 to one, and believe me, when you
314
00:18:38,225 --> 00:18:41,675
go through the homework that I'm going
to give you in this teaching, you're
315
00:18:41,675 --> 00:18:47,525
going to see just how easy tend to one
multiples are defined in swing trading.
316
00:18:48,845 --> 00:18:53,795
If you just take six of them
per year, six trades, that's it.
317
00:18:54,485 --> 00:18:57,095
Six trades risking one and a half hours.
318
00:18:58,095 --> 00:19:01,815
Using three to one leverage
and about a 50 PIP stop.
319
00:19:04,095 --> 00:19:07,455
You're more than doubling
your equity every single year.
320
00:19:08,625 --> 00:19:10,695
Now that's not doubling your
money every single month.
321
00:19:11,715 --> 00:19:14,955
It's not getting 25% every week.
322
00:19:16,425 --> 00:19:19,395
It's not getting 15% on your day trades.
323
00:19:21,155 --> 00:19:23,975
It's being very, very conservative.
324
00:19:25,235 --> 00:19:26,555
Very low-frequency.
325
00:19:28,005 --> 00:19:32,775
The opportunity for draw down is
very, very low because your frequency
326
00:19:32,775 --> 00:19:36,285
is low and your risk is already
predefined at one and a half percent.
327
00:19:37,275 --> 00:19:38,445
You know what you're looking for?
328
00:19:38,595 --> 00:19:41,955
There's a frequency of about one
trade every four to six weeks.
329
00:19:43,065 --> 00:19:47,175
And you're looking for ideal setups
around a monthly and or a weekly
330
00:19:47,175 --> 00:19:53,715
level by framing these ideas and
hunting setups that offer 10.
331
00:19:55,915 --> 00:19:59,605
This will give you the context and
framework to double your equity
332
00:19:59,605 --> 00:20:04,285
or your managed fund equity in
the course of just six trades
333
00:20:04,285 --> 00:20:07,075
per year, you don't have to rush.
334
00:20:07,615 --> 00:20:09,835
You don't have to take
every single swing trade.
335
00:20:09,835 --> 00:20:11,035
If it doesn't look right, just wait.
336
00:20:12,145 --> 00:20:15,925
There's something, setting up something,
you know, every four to six weeks, there's
337
00:20:15,925 --> 00:20:20,365
some kind of trade that offers you an
opportunity to do something in the market.
338
00:20:21,570 --> 00:20:26,100
But if you're framing the setups on a
monthly and or weekly level, these can
339
00:20:26,100 --> 00:20:31,230
offer huge multiples of reward to risk.
340
00:20:36,430 --> 00:20:36,639
All right.
341
00:20:36,639 --> 00:20:39,760
We're gonna take a look at an example
here and start giving you some ideas,
342
00:20:39,760 --> 00:20:44,110
how you can flush this out about
maximizing reward and reducing risk.
343
00:20:47,110 --> 00:20:48,310
And this example, we're
gonna be looking at the.
344
00:20:50,024 --> 00:20:51,794
And I want to take a
look at this high here.
345
00:20:52,965 --> 00:20:57,584
The high was born in 2011 in April,
and we're using an old, monthly
346
00:20:57,584 --> 00:21:01,185
high, so we're high in the range.
347
00:21:01,334 --> 00:21:06,284
So we're deep, deep, deep in terms
of the premium in relationship to
348
00:21:06,284 --> 00:21:10,814
an old high back in 2009 October,
we've defined the bare shorter
349
00:21:10,814 --> 00:21:12,435
block, which is the last up candle.
350
00:21:12,435 --> 00:21:12,715
And.
351
00:21:13,875 --> 00:21:17,235
And we've defined the mean threshold
of that last up candle as well.
352
00:21:17,835 --> 00:21:23,655
We extended that out in time
and we got to April and March of
353
00:21:23,655 --> 00:21:26,145
2011, where we hit those levels.
354
00:21:26,655 --> 00:21:30,795
And we're going to now take that idea
and reduce it down to a lower timeframe,
355
00:21:30,945 --> 00:21:32,775
executable timeframe of four hours.
356
00:21:35,075 --> 00:21:37,505
I want you to take a look
at this down candle here.
357
00:21:37,925 --> 00:21:38,105
Okay.
358
00:21:38,105 --> 00:21:41,405
So now we're actually going to
start looking at the monthly PDF.
359
00:21:42,405 --> 00:21:48,885
So we're trading off of a level of premium
of a bare shorter block and focusing
360
00:21:48,885 --> 00:21:54,195
on the mean threshold and below that
level would be this old high that will
361
00:21:54,195 --> 00:22:00,105
be the very first discount PDA member.
362
00:22:00,135 --> 00:22:04,365
It's an old high that could
be a potential discount PD.
363
00:22:05,535 --> 00:22:10,545
So we have a down candle here, which
is an old high that's left or two
364
00:22:10,545 --> 00:22:14,415
left of the entry technique or pattern
that we're looking to trade short at.
365
00:22:17,595 --> 00:22:18,615
And that's this level here.
366
00:22:21,295 --> 00:22:25,585
So all we're looking for is the range
between that down candles high and
367
00:22:25,585 --> 00:22:29,905
entering up at that means threshold
from the order block from October, 2000.
368
00:22:32,135 --> 00:22:35,195
And we're going to say
that that levels 1 42 80
369
00:22:38,585 --> 00:22:44,705
drop down into a four-hour timeframe at
the same level, uh, going into may, we
370
00:22:44,705 --> 00:22:46,865
can see price trades up into that level.
371
00:22:48,485 --> 00:22:52,085
And we have the mean threshold and
bear's sort block noted here, and we
372
00:22:52,085 --> 00:22:54,665
have 1 48 65 is the main threshold.
373
00:22:55,445 --> 00:22:57,035
And I want you to look very closely.
374
00:22:59,155 --> 00:23:03,985
We can see here, we have a,
a bare shoulder block last up
375
00:23:03,985 --> 00:23:05,095
candle rate for the down move.
376
00:23:05,665 --> 00:23:08,215
And it's highlight with the
arrow above and below it plenty.
377
00:23:08,575 --> 00:23:13,165
And we split the candle and half
at the main threshold as well.
378
00:23:14,215 --> 00:23:16,885
And we delineated the low on
that for the bare shorter block.
379
00:23:18,385 --> 00:23:23,305
We're going to assume that we're going
to use the four hour for our entry.
380
00:23:23,335 --> 00:23:27,025
We're going, looking to
go short and we're using.
381
00:23:27,795 --> 00:23:30,255
The mean threshold on the monthly candle.
382
00:23:31,275 --> 00:23:35,235
And it's also the opening of that
bullish candle that makes the high,
383
00:23:36,495 --> 00:23:38,235
and we're going to risk a stop.
384
00:23:39,195 --> 00:23:42,705
One PIP above the
highest high that candle.
385
00:23:44,265 --> 00:23:46,035
Can we have a 70 PIP stop loss?
386
00:23:48,075 --> 00:23:51,375
The blue shaded area is
our potential reward.
387
00:23:53,235 --> 00:23:54,645
The horizontal line.
388
00:23:54,645 --> 00:23:57,495
That's a delineating 1 42 80.
389
00:23:59,085 --> 00:24:00,885
That's that old, monthly high.
390
00:24:02,115 --> 00:24:08,445
This comes to a reward range of 585 pips.
391
00:24:09,135 --> 00:24:15,285
So we're risking 70 pips and there's
some of you you're cringing by now.
392
00:24:15,645 --> 00:24:16,515
70 pips.
393
00:24:16,515 --> 00:24:20,295
I can't handle 70 pips, 70 pips.
394
00:24:21,375 --> 00:24:23,715
To make 585 pips.
395
00:24:24,524 --> 00:24:28,514
And you can see that, that monthly,
old high, that again is the first
396
00:24:29,055 --> 00:24:35,475
discount PDA rate that we would come
to from that high at 1 49, 20 or so.
397
00:24:39,365 --> 00:24:43,055
So basically what we have there
is an eight to one reward, right?
398
00:24:44,445 --> 00:24:47,564
So for every $1 we're risking,
we're getting a potential
399
00:24:47,564 --> 00:24:49,574
of $8 back as a reward.
400
00:24:49,604 --> 00:24:54,074
So in essence, what we can see here,
just in this trade framework, we have
401
00:24:54,074 --> 00:24:59,115
the potential in just one trade to make
as high as 12 and a half percent return.
402
00:25:00,794 --> 00:25:05,715
Now that's an amazing amount of money in
the amount of percentage for one trade.
403
00:25:06,584 --> 00:25:10,544
And the amount of risk is my
Newt compared to the reward.
404
00:25:11,235 --> 00:25:12,405
It's framed on a monthly.
405
00:25:13,725 --> 00:25:16,485
And the objective to take profit
is framed only monthly level.
406
00:25:17,024 --> 00:25:22,754
So by framing the PD erase and using
the PD array matrix properly, we
407
00:25:22,754 --> 00:25:28,514
can frame trades that have enormous
amount of reward, the risk potential.
408
00:25:31,605 --> 00:25:32,565
Again, I'll give you another scenario.
409
00:25:32,565 --> 00:25:33,615
This is going to be homework.
410
00:25:34,395 --> 00:25:34,575
Okay.
411
00:25:34,575 --> 00:25:37,665
Now we're going to focus on
this high here or last bullish
412
00:25:37,665 --> 00:25:38,805
candle rate for the down move.
413
00:25:40,004 --> 00:25:41,865
And we're going to be
looking at that candle.
414
00:25:42,930 --> 00:25:44,850
As a potential shortnesses for homework.
415
00:25:46,170 --> 00:25:51,600
And I want you to look at the bullshit
order block, the last up candle, that
416
00:25:51,600 --> 00:25:57,330
opening price that comes in, we're
going to round it to a level of 1 41 55.
417
00:25:58,080 --> 00:26:02,520
I want you to go into your charts on
the Euro dollar and use a four hour
418
00:26:02,520 --> 00:26:07,140
timeframe and use the entry techniques
that I taught in the position.
419
00:26:07,140 --> 00:26:10,290
Trading concepts for January's content.
420
00:26:11,010 --> 00:26:11,460
Go into the.
421
00:26:12,385 --> 00:26:17,415
Four hour timeframe as price
hit that 1 41 55 level.
422
00:26:18,075 --> 00:26:18,345
Okay.
423
00:26:18,345 --> 00:26:23,535
Study down on a four hour and use
the entry techniques that I taught
424
00:26:23,535 --> 00:26:25,365
you in January for position trading.
425
00:26:26,325 --> 00:26:29,985
Where would you look to take
profits at the first one?
426
00:26:29,985 --> 00:26:33,525
You're going to be looking for the
means threshold of that last down
427
00:26:33,525 --> 00:26:38,535
candle in 2010, that we've already
traded there once, but I want you
428
00:26:38,535 --> 00:26:39,705
to consider that as your first.
429
00:26:41,070 --> 00:26:47,850
And then you consider the down
candle in October that same candles
430
00:26:47,879 --> 00:26:51,210
low, it has equal loads with the
green candle to the right of it.
431
00:26:51,420 --> 00:26:52,110
Same here.
432
00:26:52,710 --> 00:26:58,680
That would be your objective looking for
an opportunity for a low end swing trade.
433
00:26:59,040 --> 00:27:05,670
So again, we're looking for the
opportunities to be short at that 1 41 55.
434
00:27:07,399 --> 00:27:11,540
Using the entry technique that I taught
you for position trading in January.
435
00:27:13,040 --> 00:27:15,470
And I want to see the
homework shared on the forum.
436
00:27:16,220 --> 00:27:19,850
You can do it in one chart, this
poster for our chart and put
437
00:27:19,850 --> 00:27:24,770
it in our February questions in
the answer section on our forum.
438
00:27:25,280 --> 00:27:28,220
And I like to see some
real interaction this time.
439
00:27:28,250 --> 00:27:32,270
So that means the, I knew that a lot of
people doing the homework don't copy.
440
00:27:32,270 --> 00:27:33,110
Everybody's answer.
441
00:27:33,110 --> 00:27:35,570
Don't read through the form first
to see what everyone else is doing.
442
00:27:36,390 --> 00:27:37,620
There's no wrong answer.
443
00:27:38,190 --> 00:27:41,880
Just it's again, it's for
interactive purposes and for study,
444
00:27:42,120 --> 00:27:46,290
and also for feedback for me is
that I can get a collective view
445
00:27:46,290 --> 00:27:47,490
of what you're all dealing with.
446
00:27:47,490 --> 00:27:48,000
The content.
447
00:27:49,350 --> 00:27:50,640
I believe that you'll find it.
448
00:27:50,640 --> 00:27:52,470
There's a setup there as well.
449
00:27:53,220 --> 00:27:55,590
And the reward again here is.
450
00:27:57,179 --> 00:28:01,020
Well, if you consider it's 1 35
as a potential area, as a downside
451
00:28:01,020 --> 00:28:05,730
objective, I mean, 1 41 55, if that's
the price you get, and it's probably
452
00:28:05,730 --> 00:28:09,750
gonna be higher than that, that you
would use to get entry for a short,
453
00:28:10,439 --> 00:28:14,280
that is over 650 pips for one setup.
454
00:28:15,000 --> 00:28:20,580
So if you can frame your trade with a
60 PIP stop loss, you could find a 10.
455
00:28:21,330 --> 00:28:26,970
To one reward to risk scenario on
this trade here, premium PD PDRs, and
456
00:28:26,970 --> 00:28:31,440
then using the monthly discount PD
arrays, as we noted here, but to meet
457
00:28:31,470 --> 00:28:37,290
threshold of the last down candle in
October, 2010, or are we November?
458
00:28:37,290 --> 00:28:44,639
Actually, probably the downside
objective is again, several hundred pips.
459
00:28:45,899 --> 00:28:48,420
So suddenly you start doing these
things and you start applying it.
460
00:28:48,810 --> 00:28:50,280
Don't stop here with this example.
461
00:28:51,090 --> 00:28:55,050
For the remainder of the weekend, go
through and try to find five examples
462
00:28:55,800 --> 00:28:59,790
somewhere else in another payer, it
doesn't matter where at it doesn't
463
00:28:59,790 --> 00:29:03,420
matter what time of year go in and
look for a scenario, just using a
464
00:29:03,420 --> 00:29:08,070
monthly and or weekly scenario and
frame out a couple of trades, how to
465
00:29:08,070 --> 00:29:12,780
find five that yield at least five
to one reward, the risk scenario.
466
00:29:13,290 --> 00:29:15,540
So you have really two homeworks.
467
00:29:16,230 --> 00:29:16,590
Yeah.
468
00:29:16,620 --> 00:29:19,110
The one that I'm giving you here,
and then you have a secondary.
469
00:29:20,235 --> 00:29:26,505
We had to look for five scenarios using
only a monthly or weekly PDA Ray for
470
00:29:26,505 --> 00:29:31,125
premium or discount, and try to find X
listed like this, try to find four, two
471
00:29:31,875 --> 00:29:38,265
buys and two sells using this criteria to
frame out swing trades and look for five
472
00:29:38,265 --> 00:29:40,575
to one payouts or potential to pay out.
473
00:29:40,635 --> 00:29:42,825
And obviously you have the benefit
of hindsight, and that goes without
474
00:29:42,825 --> 00:29:44,625
saying, but this is how you study it.
475
00:29:44,655 --> 00:29:45,315
This is how you get in there.
476
00:29:45,315 --> 00:29:47,925
And you get excited about
seeing how powerful it is.
477
00:29:48,750 --> 00:29:51,030
And how infrequent you need
to worry about trading.
478
00:29:51,419 --> 00:29:52,679
You don't have to worry
about trading all the time.
479
00:29:53,100 --> 00:29:56,760
You can get in massive amount of
return on your equity and doing very
480
00:29:56,760 --> 00:30:00,570
little work, putting very little
risk exposure to your account.
481
00:30:01,409 --> 00:30:04,320
So hopefully you found this
insightful until next lesson.
482
00:30:04,860 --> 00:30:06,060
I wish you good luck and good trading.
42321
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