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These are the user uploaded subtitles that are being translated: 1 00:00:01,280 --> 00:00:05,120 a trading plan pretty much does what it says on the tin right it's essentially 2 00:00:05,120 --> 00:00:09,200 just a document that describes your systematic approach to trading your 3 00:00:09,200 --> 00:00:14,080 defined edge in the market with your entry exit and risk management rules 4 00:00:14,080 --> 00:00:18,160 so in simpler words your trading plan is just your training strategy written down 5 00:00:18,160 --> 00:00:21,520 pretty much right now you will have this plan either 6 00:00:21,520 --> 00:00:26,160 printed out on your desk or on the wall beside your computer or at the very 7 00:00:26,160 --> 00:00:31,119 minimum have it on your notion dashboard just to make sure that it is somewhere 8 00:00:31,119 --> 00:00:35,680 that you can easily access it especially all times when you are trading because 9 00:00:35,680 --> 00:00:39,600 you will be reading this before and during every single trading session so 10 00:00:39,600 --> 00:00:43,280 that it is constantly at the forefront of your mind because this literally will 11 00:00:43,280 --> 00:00:47,920 be your trading bible now over the course of the next few modules you're 12 00:00:47,920 --> 00:00:51,199 first going to create your own individually tailored training plan 13 00:00:51,199 --> 00:00:56,079 and this will initially be a very rough and basic plan because you have not yet 14 00:00:56,079 --> 00:01:00,399 had the opportunity to actually test your plan to trade it and to figure out 15 00:01:00,399 --> 00:01:03,199 exactly how you want to trade the strategy 16 00:01:03,199 --> 00:01:07,200 but before you can actually start that process of testing and trading you 17 00:01:07,200 --> 00:01:10,320 obviously need a plan as a starting point right because you need that plan 18 00:01:10,320 --> 00:01:14,799 written down you know first in order to actually be able to test that plan 19 00:01:14,799 --> 00:01:18,799 you can't just start firing into any old trade that maybe you think resembles a 20 00:01:18,799 --> 00:01:23,360 strategy because that's just going to be a recipe for disaster and any data that 21 00:01:23,360 --> 00:01:26,320 you might be collecting it's going to be pretty much irrelevant 22 00:01:26,320 --> 00:01:31,840 at that point because you know the data is not a part of a defined strategy 23 00:01:31,840 --> 00:01:35,920 so the first step is just to get your very very kind of rough 24 00:01:35,920 --> 00:01:40,079 first draft of your plan written down and then everything will build from 25 00:01:40,079 --> 00:01:44,240 there so once you have that first draft you will then begin the testing phase 26 00:01:44,240 --> 00:01:47,280 which is what we will cover in depth in the next module 27 00:01:47,280 --> 00:01:50,960 and then once you've tested it and you've collected data to prove that it 28 00:01:50,960 --> 00:01:55,439 does have a profitable edge you can now begin to start to trade it in the live 29 00:01:55,439 --> 00:01:59,520 market and see how you get on then as you gain more experience you gain more 30 00:01:59,520 --> 00:02:03,200 data on how your trading plan you know how it actually plays out in the market 31 00:02:03,200 --> 00:02:08,000 you can then refine your plan make improvements and evolve it based on that 32 00:02:08,000 --> 00:02:13,040 hardcore data that you have collected to actually improve your edge even more 33 00:02:13,040 --> 00:02:16,800 and then finally you will then create your next version of your plan 34 00:02:16,800 --> 00:02:21,040 and repeat the entire process and this process will continue for the rest of 35 00:02:21,040 --> 00:02:25,120 your trading career your trading plan is literally a living and breathing 36 00:02:25,120 --> 00:02:29,280 document which you will always be evolving as both yourself and the market 37 00:02:29,280 --> 00:02:32,720 evolves with it now obviously when you create a new plan 38 00:02:32,720 --> 00:02:35,599 or even just a revised version of your plan 39 00:02:35,599 --> 00:02:39,200 and once you've tested it you don't have to start trading it live or on demo 40 00:02:39,200 --> 00:02:43,440 straight away you of course can keep refining your plan based on your testing 41 00:02:43,440 --> 00:02:45,760 data until you get it to a stage that you're 42 00:02:45,760 --> 00:02:48,800 pretty happy with you know and then you can start to trade 43 00:02:48,800 --> 00:02:51,599 it live once you've got it to that point 44 00:02:51,599 --> 00:02:54,160 so that's pretty much the journey that we're going to go on together throughout 45 00:02:54,160 --> 00:02:58,959 the next few modules now if you can't describe what you are 46 00:02:58,959 --> 00:03:02,319 doing as a process then you don't know what you're doing 47 00:03:02,319 --> 00:03:06,480 so your eventual goal is to have a full flowchart diagram 48 00:03:06,480 --> 00:03:11,120 that describes the complete end-to-end process of your strategy with an if then 49 00:03:11,120 --> 00:03:16,159 and a yes no format so a robot could almost literally execute it for you 50 00:03:16,159 --> 00:03:18,959 now as you've probably experienced i've been thinking as you've been going 51 00:03:18,959 --> 00:03:22,640 through the technical analysis lessons there is quite a lot of moving parts to 52 00:03:22,640 --> 00:03:26,799 the strategy and it definitely can be pretty overwhelming when you're first 53 00:03:26,799 --> 00:03:32,159 learning this style especially if you are brand new to trading in general so 54 00:03:32,159 --> 00:03:36,159 creating a training plan it can seem like quite a daunting task because your 55 00:03:36,159 --> 00:03:40,480 level of understanding and your experience with the strategy it's still 56 00:03:40,480 --> 00:03:45,200 in its very early and premature stages and don't worry that's absolutely normal 57 00:03:45,200 --> 00:03:49,280 and okay so you know don't worry stress about that but if you follow the steps 58 00:03:49,280 --> 00:03:53,280 as laid out in this course if you continue to study the content and if you 59 00:03:53,280 --> 00:03:57,760 continue to put in the hard work it's literally only a matter of time before 60 00:03:57,760 --> 00:04:02,400 it will all click and it will all become extremely simple and second nature to 61 00:04:02,400 --> 00:04:06,319 you whereby you achieve that fourth stage of competence remember that's when 62 00:04:06,319 --> 00:04:10,640 you are unconsciously competent where you can drive your car home and without 63 00:04:10,640 --> 00:04:14,319 even thinking about it you will get to that point with your training but then 64 00:04:14,319 --> 00:04:17,919 you can literally boil your your training plan you can boil it down to 65 00:04:17,919 --> 00:04:21,919 just a few key words that you you look at before and during each training 66 00:04:21,919 --> 00:04:26,400 session and those key words those keywords of kind of your your simplified 67 00:04:26,400 --> 00:04:30,880 training plan that will encompass all of the detail and the complexity of your 68 00:04:30,880 --> 00:04:35,759 process that you now subconsciously understand 69 00:04:35,759 --> 00:04:38,800 but simple can be harder than complex you 70 00:04:38,800 --> 00:04:43,840 have to work really hard to get your thinking clean to make it simple but 71 00:04:43,840 --> 00:04:48,320 it's worth it in the end because once you get there you can move mountains 72 00:04:48,320 --> 00:04:52,639 so i knew someone who was a chef and quite early in their career they had a 73 00:04:52,639 --> 00:04:56,400 bit of a tendency to make their dishes extremely complex 74 00:04:56,400 --> 00:05:00,160 because you know understandably they thought that was how things worked 75 00:05:00,160 --> 00:05:04,639 more stuff on the plate must equal more skill and therefore surely that must 76 00:05:04,639 --> 00:05:09,759 lead to more rewards right but then this young chef he went to a michelin style 77 00:05:09,759 --> 00:05:14,080 restaurant and at the time it was regarded as one of the best in europe 78 00:05:14,080 --> 00:05:18,479 and the head chef at this restaurant he was a fair bit older than him 79 00:05:18,479 --> 00:05:22,160 and he had been in the game for a very very long time and this michelin star 80 00:05:22,160 --> 00:05:27,680 chef he only ever put just three things on the plate just three things nothing 81 00:05:27,680 --> 00:05:31,520 more and the simplicity blew the junior chef away 82 00:05:31,520 --> 00:05:35,759 but more than that it was the level of execution of those ingredients that 83 00:05:35,759 --> 00:05:40,240 impressed him everything was simple but literally perfect 84 00:05:40,240 --> 00:05:44,000 so after his meal the junior chef went and spoke with the michelin star head 85 00:05:44,000 --> 00:05:48,000 chef of the restaurant and the head chef told him that he had also gone through 86 00:05:48,000 --> 00:05:52,160 kind of that exact same process as him when he was younger as well when he was 87 00:05:52,160 --> 00:05:56,080 starting out in his career where he initially he kind of found himself over 88 00:05:56,080 --> 00:05:59,280 complicating everything and trying to make these really high 89 00:05:59,280 --> 00:06:02,960 complex meals but the michelin star chef he said that 90 00:06:02,960 --> 00:06:06,240 he was thankful that you know he'd gone through that journey because the 91 00:06:06,240 --> 00:06:11,520 complexity of his approach initially that complexity that gave him the 92 00:06:11,520 --> 00:06:16,240 knowledge that was required in order to now be able to execute the simplicity of 93 00:06:16,240 --> 00:06:20,400 his dishes perfectly so the lesson here for us 94 00:06:20,400 --> 00:06:25,440 is that elegance and consistency that actually comes from simplicity 95 00:06:25,440 --> 00:06:30,400 that simple recipe that he now has but to get to that level of simplicity 96 00:06:30,400 --> 00:06:34,560 first you need the deep understanding and that deep understanding that 97 00:06:34,560 --> 00:06:37,919 actually comes from the initial complexity 98 00:06:37,919 --> 00:06:41,600 so what i'm trying to say here is that your first few initial versions of your 99 00:06:41,600 --> 00:06:44,800 trade plans they might actually be quite complex 100 00:06:44,800 --> 00:06:46,960 you know when you're writing out a lot of your process and there'll be a lot of 101 00:06:46,960 --> 00:06:50,319 words and a lot of explanation and that's fine because that can you 102 00:06:50,319 --> 00:06:53,759 know really really help you at the start but eventually you will find kind of as 103 00:06:53,759 --> 00:06:56,080 you go along and you get more experienced and you kind of really 104 00:06:56,080 --> 00:06:59,599 refine your style you will boil it down to just a few key 105 00:06:59,599 --> 00:07:05,280 sentences on one page so you should end up with one very simple trade plan and 106 00:07:05,280 --> 00:07:10,160 then also your full enter in process laid out as a separate flowchart diagram 107 00:07:10,160 --> 00:07:13,120 alongside that but of course you know that short 108 00:07:13,120 --> 00:07:17,199 simplified trade plan that is what you will be looking at before and during 109 00:07:17,199 --> 00:07:20,800 every single training session now there are a lot of things that you 110 00:07:20,800 --> 00:07:24,240 can include in the contents of your plan but i recommend that you have these 111 00:07:24,240 --> 00:07:28,479 three components as the bare minimum so as long as you define how you will 112 00:07:28,479 --> 00:07:32,880 enter the market how you will then exit your positions out of the market and how 113 00:07:32,880 --> 00:07:36,880 much you will risk on those positions then you are pretty much good to go 114 00:07:36,880 --> 00:07:41,280 so the very first time you create this you know make it simple or as complex as 115 00:07:41,280 --> 00:07:44,960 you need to but just get something down for all three of these sections because 116 00:07:44,960 --> 00:07:48,160 you just need something that you can then go and test and then once you're 117 00:07:48,160 --> 00:07:52,000 testing it then you can you can start that process of refinement but you just 118 00:07:52,000 --> 00:07:55,199 need the starting point so you know don't try and kind of 119 00:07:55,199 --> 00:07:59,120 perfect it straight away because it's pretty much going to be impossible just 120 00:07:59,120 --> 00:08:02,400 make sure you get going now there are of course other sections 121 00:08:02,400 --> 00:08:06,720 that you can add such as you know diagrams of your entry model screenshots 122 00:08:06,720 --> 00:08:10,800 of actual trade examples from your plan you may want to list the specific 123 00:08:10,800 --> 00:08:14,479 trading hours that you will trade within list the pair or pairs that you actually 124 00:08:14,479 --> 00:08:17,759 trade and you know if you trade multiple pairs 125 00:08:17,759 --> 00:08:21,039 you may have you know slightly different rules for each pair um and i haven't 126 00:08:21,039 --> 00:08:24,720 listed it here but you can even go you know in a lot of detail kind of your 127 00:08:24,720 --> 00:08:28,240 risk management and your risk limit rules as well so of course this is not 128 00:08:28,240 --> 00:08:31,759 an exhaustive list but just something to get you thinking about 129 00:08:31,759 --> 00:08:35,839 now in the next lesson i will show you kind of a beginner's trading system that 130 00:08:35,839 --> 00:08:40,000 you can use as an example to kind of see how this could potentially all be laid 131 00:08:40,000 --> 00:08:44,080 out for you now training is an individual sport i 132 00:08:44,080 --> 00:08:48,080 can teach you the theory and i can show you how i trade but ultimately the 133 00:08:48,080 --> 00:08:52,240 responsibility falls on you and no one else it's just you who's gonna be 134 00:08:52,240 --> 00:08:55,279 pressing buy and sell no one's going to do that for you 135 00:08:55,279 --> 00:08:59,839 you are here to become an independent and consistently profitable trader 136 00:08:59,839 --> 00:09:04,480 that is going to require you to build develop and evolve your trading plan 137 00:09:04,480 --> 00:09:09,040 into something that is unique to you of course it will still be heavily based 138 00:09:09,040 --> 00:09:13,440 on the core concepts but you then need to take those and mold it into something 139 00:09:13,440 --> 00:09:17,279 that makes most sense to you that suits your training psychology and that you 140 00:09:17,279 --> 00:09:21,600 can actually execute with your current lifestyle and your current routines 141 00:09:21,600 --> 00:09:26,080 you know trading it's not rigid with very hard and fast rules people make 142 00:09:26,080 --> 00:09:29,920 their own interpretations based on the theories and the concepts provided and 143 00:09:29,920 --> 00:09:33,519 trade what they believe to be right there's a million ways to make money in 144 00:09:33,519 --> 00:09:35,760 the markets odds are that you're not going to be 145 00:09:35,760 --> 00:09:39,760 good at scalping day trading swing trading and position trading if you try 146 00:09:39,760 --> 00:09:43,360 to do them all you will most likely end up being you know a mediocre jack of all 147 00:09:43,360 --> 00:09:47,360 trades and a master of none so don't spread yourself too thin at the 148 00:09:47,360 --> 00:09:52,000 surface level because to truly reap the benefits of one strategy you have to 149 00:09:52,000 --> 00:09:55,839 sacrifice the others identifying what you should focus on and 150 00:09:55,839 --> 00:10:00,000 specialize in is where that compounding momentum will take off 151 00:10:00,000 --> 00:10:04,800 so go deep on that and specialize because that's where your processes and 152 00:10:04,800 --> 00:10:10,079 your results will become more predictable scalable and sustainable 153 00:10:10,079 --> 00:10:14,320 style drift comes from not clearly defining your strategy and your goals 154 00:10:14,320 --> 00:10:18,560 as a result you won't stay with your approach through the thick and thin 155 00:10:18,560 --> 00:10:23,120 if you are a short-term day trader you must recognize that exiting a trade you 156 00:10:23,120 --> 00:10:27,600 know for a quick 50 pip profit only then to watch it go on for another 300 pips 157 00:10:27,600 --> 00:10:32,079 that is of no real concern to you because you specialize in and operate in 158 00:10:32,079 --> 00:10:35,920 a particular zone of an instrument's price movement but someone else they 159 00:10:35,920 --> 00:10:40,000 might operate in a totally different area of the curve but both traders can 160 00:10:40,000 --> 00:10:44,320 be successful however if you are a longer-term trader 161 00:10:44,320 --> 00:10:47,680 there's going to be many times where you are running in a decent amount of profit 162 00:10:47,680 --> 00:10:51,120 but only to give it all back in the pursuit of trying to capture a much 163 00:10:51,120 --> 00:10:54,160 larger move but the key is to just focus on a 164 00:10:54,160 --> 00:10:58,480 particular style and then once you define your style and your objectives 165 00:10:58,480 --> 00:11:02,880 will then become much easier to stick to a plan and to attain success 166 00:11:02,880 --> 00:11:06,720 and then in time you will be rewarded for your sacrifice with your own 167 00:11:06,720 --> 00:11:09,200 speciality and it takes the same commitment that 168 00:11:09,200 --> 00:11:12,000 you would make in a relationship you know how good a marriage do you think 169 00:11:12,000 --> 00:11:15,760 you would have if you kept cheating on your spouse a trading strategy is the 170 00:11:15,760 --> 00:11:19,680 same you need to be faithful to it for it to give back to you 171 00:11:19,680 --> 00:11:23,600 because just because we can do something doesn't mean that we should do it 172 00:11:23,600 --> 00:11:26,480 so if we know that if we spread ourselves too thin up here you know on 173 00:11:26,480 --> 00:11:29,920 the top surface level it's very unlikely that we're going to really reap the 174 00:11:29,920 --> 00:11:34,560 benefits of a particular style of trading unless we dig deep down into it 175 00:11:34,560 --> 00:11:37,519 and specialize so we know that digging below the 176 00:11:37,519 --> 00:11:41,680 surface that is where the oil is that is where the treasure is and that is where 177 00:11:41,680 --> 00:11:45,600 the real gold lies so when we are up on the surface and we 178 00:11:45,600 --> 00:11:47,680 can see all these different ways of trading 179 00:11:47,680 --> 00:11:51,920 how do we know where the oil is below how do we know where to start drilling 180 00:11:51,920 --> 00:11:54,959 down to the surface because one way to drill would be to 181 00:11:54,959 --> 00:11:58,320 just start you know randomly driving all over the place and just finding out you 182 00:11:58,320 --> 00:12:01,440 know through process of elimination where that oil is and where the gold 183 00:12:01,440 --> 00:12:05,600 lies that's going to be quite you know time inefficient and you could waste a 184 00:12:05,600 --> 00:12:09,279 lot of money you know drilling down into all the wrong areas right 185 00:12:09,279 --> 00:12:13,760 so that begs the question how do we work out exactly where it is that we should 186 00:12:13,760 --> 00:12:18,079 spend our time and where we should spend our resources drilling down into to find 187 00:12:18,079 --> 00:12:22,000 that oil to find the gold that looks deep beneath the surface 188 00:12:22,000 --> 00:12:26,320 well there are a few steps to this first you need to get real with exactly 189 00:12:26,320 --> 00:12:29,760 who you are and where it is that you want to go 190 00:12:29,760 --> 00:12:33,279 because once we identify this we can then move forward and determine 191 00:12:33,279 --> 00:12:36,399 precisely what actions you need to take to get there 192 00:12:36,399 --> 00:12:39,839 and this is the time to get real with yourself so you can map out a clear plan 193 00:12:39,839 --> 00:12:44,880 of action and move forward unimpeded so there are four main steps to figuring 194 00:12:44,880 --> 00:12:49,360 that out and the first step is to very clearly define your trading goals so 195 00:12:49,360 --> 00:12:53,360 what are you trying to achieve and why but you must also consider your current 196 00:12:53,360 --> 00:12:57,200 lifestyle so what are your current time constraints and commitments and then 197 00:12:57,200 --> 00:13:00,800 it's time to dig deep into your training history and your journey so far you're 198 00:13:00,800 --> 00:13:04,000 really looking under the hood at everything the good the bad the failures 199 00:13:04,000 --> 00:13:07,120 and put out all of the lessons that you can find from here because there will be 200 00:13:07,120 --> 00:13:10,000 many if you spend the time to look hard enough 201 00:13:10,000 --> 00:13:14,079 now of course if you are new to trading or you are new to this strategy then you 202 00:13:14,079 --> 00:13:17,360 will not have a relevant training journal just yet to go through now so 203 00:13:17,360 --> 00:13:21,920 this step does not apply to you just yet but these steps the next two steps we're 204 00:13:21,920 --> 00:13:25,600 going to look at number three and number four they are for when you are refining 205 00:13:25,600 --> 00:13:28,880 and improving your already established trade plan 206 00:13:28,880 --> 00:13:32,560 so you know you will study your trade journal to try and identify the patterns 207 00:13:32,560 --> 00:13:36,160 and commonalities within your past trades so that you can implement rules 208 00:13:36,160 --> 00:13:40,320 to help you to do you know more of what works and to do less of what isn't 209 00:13:40,320 --> 00:13:43,440 working for you and then once you do this you will 210 00:13:43,440 --> 00:13:46,800 pretty likely find that you're going to identify some 211 00:13:46,800 --> 00:13:49,839 some psychological blockages that you may have that are actually holding you 212 00:13:49,839 --> 00:13:52,720 back but once you identify those 213 00:13:52,720 --> 00:13:56,880 first you know you must find out exactly why you have those blockages and then 214 00:13:56,880 --> 00:14:00,000 you can implement steps to help you overcome them so that they no longer 215 00:14:00,000 --> 00:14:04,240 hold you back and limit your growth and now you will be able to rise to that 216 00:14:04,240 --> 00:14:07,680 next level so spend some time getting very clear 217 00:14:07,680 --> 00:14:11,199 and honest with yourself on what you were trying to achieve and why 218 00:14:11,199 --> 00:14:13,440 because if you want to become a full-time trader then it will most 219 00:14:13,440 --> 00:14:17,360 likely make sense to develop a strategy that's quite active maybe hands on you 220 00:14:17,360 --> 00:14:20,880 know maybe on the intraday time frames because you will be able to you know be 221 00:14:20,880 --> 00:14:24,639 at your computer screen undisturbed but if you want to trade around your 222 00:14:24,639 --> 00:14:28,160 current job or maybe even running you know another business that you own or 223 00:14:28,160 --> 00:14:31,839 you work within of course this is also possible you know contrary to what 224 00:14:31,839 --> 00:14:34,880 instagram might make you believe you don't actually have to quit your 225 00:14:34,880 --> 00:14:37,920 nine-to-five job to be considered a professional trader 226 00:14:37,920 --> 00:14:42,560 but you must be realistic and adapt your strategy to work around your job or 227 00:14:42,560 --> 00:14:45,839 business you know you will not be able to be on the charts and you're probably 228 00:14:45,839 --> 00:14:49,920 actively trading the same way a full-time trader can be 229 00:14:49,920 --> 00:14:53,760 now it's very similar for if you are someone who wishes to travel and trade 230 00:14:53,760 --> 00:14:57,440 you will most likely want to either develop a longer-term hands-off strategy 231 00:14:57,440 --> 00:15:00,800 where you are setting risk entries on the longer term time frames with kind of 232 00:15:00,800 --> 00:15:04,880 that set of forget management or go to the complete other extreme and maybe you 233 00:15:04,880 --> 00:15:08,240 just want to day trade you know one or two days a week for example where on 234 00:15:08,240 --> 00:15:12,560 those days you do not travel or explore that day but you dedicate those days you 235 00:15:12,560 --> 00:15:17,120 know that that time solely to training so when you're thinking uh you know 236 00:15:17,120 --> 00:15:21,279 about your training goals do not focus on that sort of end result 237 00:15:21,279 --> 00:15:24,399 you know i.e you know you want to replace your income with the 238 00:15:24,399 --> 00:15:29,199 trading profits instead focus on the process and the lifestyle 239 00:15:29,199 --> 00:15:31,600 you know what lifestyle do you want to live 240 00:15:31,600 --> 00:15:34,800 because it's that lifestyle and that process that is actually going to get 241 00:15:34,800 --> 00:15:37,519 you that result it's very common for people to want the 242 00:15:37,519 --> 00:15:40,560 monetary results that successful training can bring but it's not so 243 00:15:40,560 --> 00:15:44,720 common to desire the lifestyle that that result requires 244 00:15:44,720 --> 00:15:48,160 now by lifestyle i don't mean you know what house you're going to live in and 245 00:15:48,160 --> 00:15:52,160 what car you're going to drive what i mean is what is your everyday 246 00:15:52,160 --> 00:15:56,320 life trading routine going to look like to achieve that result that you want 247 00:15:56,320 --> 00:16:00,399 each day so start thinking about this now 248 00:16:00,399 --> 00:16:03,440 then once you have a clear idea of what your goal is and what you're trying to 249 00:16:03,440 --> 00:16:06,480 achieve with your training then you can start to plan out the steps that you 250 00:16:06,480 --> 00:16:10,399 need to take to get there and a big part that is going to determine what steps 251 00:16:10,399 --> 00:16:14,399 you can actually take will be what your current lifestyle is so what are your 252 00:16:14,399 --> 00:16:17,680 current time constraints what commitments do you have 253 00:16:17,680 --> 00:16:20,639 do you have dependents you know do you have young kids or maybe you care for 254 00:16:20,639 --> 00:16:24,720 someone do you have a nine-to-five job if so do you have regular access to your 255 00:16:24,720 --> 00:16:27,759 trading charts now think about what time frame can you 256 00:16:27,759 --> 00:16:31,759 actually enter on what time frame can you manage your trades on is it 257 00:16:31,759 --> 00:16:34,480 realistic that you will be able to monitor the one-minute chart for entries 258 00:16:34,480 --> 00:16:38,240 during work you might need to drop your ego a little bit don't worry about 259 00:16:38,240 --> 00:16:42,160 trying to get you know a two pip stop and instead build a trading system 260 00:16:42,160 --> 00:16:46,560 around the m15 risk entries for example you know maybe using the m15 or even the 261 00:16:46,560 --> 00:16:50,560 four hour for entries that could be a lot more sustainable for you and you'll 262 00:16:50,560 --> 00:16:53,680 actually have better results in a quicker period of time so maybe you just 263 00:16:53,680 --> 00:16:56,639 need to you know look at a few more pairs if you're going to be looking on 264 00:16:56,639 --> 00:17:00,480 those hard time frames and that will be looking you know working better for you 265 00:17:00,480 --> 00:17:03,920 and if it's just not realistic to split your focus between your job or your 266 00:17:03,920 --> 00:17:07,280 business or maybe you do something that means that you don't even have access to 267 00:17:07,280 --> 00:17:10,640 you know the internet or your computer when you're working then swing training 268 00:17:10,640 --> 00:17:13,439 will probably be a lot more realistic for you right focusing on those hard 269 00:17:13,439 --> 00:17:16,640 time frame moves now another major thing to consider is 270 00:17:16,640 --> 00:17:20,400 what time zone do you live in for instance if you live in new york 271 00:17:20,400 --> 00:17:23,600 and i believe you are in the eastern time zone then the london session starts 272 00:17:23,600 --> 00:17:27,039 around 3am for you so are you going to get up early to be on 273 00:17:27,039 --> 00:17:30,720 the charts for you know 3 am how realistic is it that you can then 274 00:17:30,720 --> 00:17:33,919 trade the london session through the early hours of the night and still 275 00:17:33,919 --> 00:17:38,000 perform your job during the day and keep your health and your mental well-being 276 00:17:38,000 --> 00:17:41,440 intact because some people can do it and they 277 00:17:41,440 --> 00:17:46,080 feel that the sacrifice is worth it but most can't so figure that out and be 278 00:17:46,080 --> 00:17:49,840 honest with yourself and just pick what is most sustainable 279 00:17:49,840 --> 00:17:53,280 and maybe you can you know even look at concentrating on currency pairs that 280 00:17:53,280 --> 00:17:56,960 sometimes move more during the new york session and even the asian session so 281 00:17:56,960 --> 00:18:00,240 pairs like aussie dollar and the japanese pairs um you know the 282 00:18:00,240 --> 00:18:02,799 japanese yen pairs and specialize in those 283 00:18:02,799 --> 00:18:05,360 now if you really want to hang out on the beach and you want to travel the 284 00:18:05,360 --> 00:18:08,559 world then you should probably work on swing trading or even position trading 285 00:18:08,559 --> 00:18:11,440 strategies because it's not really that realistic that you're probably gonna 286 00:18:11,440 --> 00:18:14,880 have you know great wi-fi on the beach or by the pool and you know the sand in 287 00:18:14,880 --> 00:18:17,840 your laptop or the sun glare on your screen 288 00:18:17,840 --> 00:18:21,360 it's not really realistic that's going to affect your trading intraday right 289 00:18:21,360 --> 00:18:25,120 but if you like the excitement of facing a new trading day with a clean slate 290 00:18:25,120 --> 00:18:28,559 just training for a few hours then day trading might be for you 291 00:18:28,559 --> 00:18:31,600 now you might think that day trading sounds sexy but if you have a demanding 292 00:18:31,600 --> 00:18:34,400 job and two kids maybe it's not that realistic for you 293 00:18:34,400 --> 00:18:37,200 right but only you are gonna know this but 294 00:18:37,200 --> 00:18:41,120 just try to be honest with yourself now and you'll save yourself a lot of time 295 00:18:41,120 --> 00:18:46,240 and headaches you'll find quicker success but more importantly sustainable 296 00:18:46,240 --> 00:18:49,200 and scalable success you know by sticking to what you can 297 00:18:49,200 --> 00:18:53,679 currently execute so design your trader plan around a style that actually fits 298 00:18:53,679 --> 00:18:56,240 that obviously then once you achieve your 299 00:18:56,240 --> 00:19:00,160 goal and your lifestyle changes then you can adjust an adapter trade plan to fit 300 00:19:00,160 --> 00:19:04,080 that right now as i said the beauty of the strategy is that it's based on price 301 00:19:04,080 --> 00:19:06,720 action you know i've shown you the blueprint and all the tools that you 302 00:19:06,720 --> 00:19:10,480 need but now it's down to you to kind of take that and tailor all of that and 303 00:19:10,480 --> 00:19:14,160 tailor that strategy to suit your lifestyle 304 00:19:14,160 --> 00:19:17,600 now we'll talk about journaling a lot more in a future lesson 305 00:19:17,600 --> 00:19:20,799 so we're not going to cover this in depth now but kind of a quick point is 306 00:19:20,799 --> 00:19:25,200 that when you are revising and improving your trade plan you know going forward 307 00:19:25,200 --> 00:19:30,400 analyzing your trade journal will play a large large large role in this so you 308 00:19:30,400 --> 00:19:33,280 will essentially be trying to look for repeat patterns and commonalities in 309 00:19:33,280 --> 00:19:37,280 your winning trades and then the same for of course all of your losing trades 310 00:19:37,280 --> 00:19:39,919 so this way you can work out how you can do more of 311 00:19:39,919 --> 00:19:44,480 what is working and less of what isn't so that you can implement new rules into 312 00:19:44,480 --> 00:19:49,120 your trade plan to avoid repeating those same failings now don't rush this 313 00:19:49,120 --> 00:19:54,080 process it's not glamorous it is pretty boring not gonna pretend it isn't but it 314 00:19:54,080 --> 00:19:58,160 is one of the single most effective things that you can do to make a quantum 315 00:19:58,160 --> 00:20:02,159 leap forward with your results because if you spend a week a month however long 316 00:20:02,159 --> 00:20:06,400 it takes you to do it properly get it done the lessons will be in there some 317 00:20:06,400 --> 00:20:08,799 of the biggest lessons and improvements that you can actually make with your 318 00:20:08,799 --> 00:20:12,320 training will be in there you know digging through your journal 319 00:20:12,320 --> 00:20:16,000 that is the work that other traders they just simply are not doing 320 00:20:16,000 --> 00:20:21,360 so if you do do it you are literally giving yourself a massive edge over them 321 00:20:21,360 --> 00:20:24,720 and in that previous step where you have reviewed your trading history you will 322 00:20:24,720 --> 00:20:27,919 probably have found technical problems with the strategy which you can make 323 00:20:27,919 --> 00:20:31,600 simple kind of adjustments and you know improve with new rules in your plan but 324 00:20:31,600 --> 00:20:36,240 you will also probably find that you're making the same silly human errors again 325 00:20:36,240 --> 00:20:40,159 and again so this final step step four it's all 326 00:20:40,159 --> 00:20:44,159 about finding the why why are you making those same mistakes 327 00:20:44,159 --> 00:20:47,360 and you need to identify your psychological blockages and there is a 328 00:20:47,360 --> 00:20:50,799 lot of introspection that goes into this process you know what are the main 329 00:20:50,799 --> 00:20:54,159 barriers that are holding you back and then what is your plan for actually 330 00:20:54,159 --> 00:20:57,679 overcoming them the more reflection self-review and 331 00:20:57,679 --> 00:21:02,640 contemplation that you perform as a trader the quicker you will progress 332 00:21:02,640 --> 00:21:05,280 for instance you know when you review your journal and you kind of look 333 00:21:05,280 --> 00:21:08,960 through the data you might spot that you know every time you lost the first two 334 00:21:08,960 --> 00:21:13,520 trades of the day your results then spiraled and you took a lot more losses 335 00:21:13,520 --> 00:21:16,960 when this happened so very simply you can implement you 336 00:21:16,960 --> 00:21:20,559 know pretty simple risk management rule to just stop trading for the day if you 337 00:21:20,559 --> 00:21:24,480 take two losses for example now this lesson is not about trading 338 00:21:24,480 --> 00:21:28,240 psychology we will cover this in a lot more depth later 339 00:21:28,240 --> 00:21:31,679 but for now you just need to understand the four-step process to go through each 340 00:21:31,679 --> 00:21:35,840 time you are revising updating and improving your trade plan and that's how 341 00:21:35,840 --> 00:21:39,039 you can define your own you know your own trading personality and actually 342 00:21:39,039 --> 00:21:42,159 create a plan that is individually tailored to you 343 00:21:42,159 --> 00:21:45,600 because once you have that you will massively increase the chances of you 344 00:21:45,600 --> 00:21:49,120 actually adhering to your strategy rules which in turn then increases the 345 00:21:49,120 --> 00:21:53,600 probability of you achieving long-term consistent results 346 00:21:53,600 --> 00:21:56,880 now in the next lesson i'm going to show you a relatively basic 347 00:21:56,880 --> 00:22:01,360 trading system for you to use as an example to see how you can begin to 348 00:22:01,360 --> 00:22:05,720 structure your own trading plan36588

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