High Performance Trading Lecture Notes

Introduction

• Free Downloads:
  • 4-Step Method to High Performance Trading
  • 7-Step Daily Routine for High Performance Traders
• Purpose:
  • Develop mindset and routines for trading competence.
  • Bulletproof daily habits for traders.

Key Topics

Mindset and Technical Mastery

• Combination of mindset reset and technical mastery.
• Importance of mastering specific trading setups:
  • Focus on setups you have mastered.
  • Understanding power of parabolic trade setups.

Characteristics of Effective Trading

• Focus on 2-3 scalable opportunities weekly.
• Traits of effective traders:
  • Zero stress, thought, emotion, and management.
• Key elements to understand:
  • Weekly template for trading.
  • Know where you have a real edge in the market.

Trader Behavior and Mindset

• Trader behavior is a significant factor in success:
  • Self-sabotage and impulsive trading can lead to losses.
• Importance of rewiring your mindset to recognize real money-making opportunities.
• Patience is critical in waiting for the right setups.

Weekly Trading Template

• Days of the Week:
  • Friday: Closing range, sets auction process for Monday.
  • Monday: Opening range marks the start of the week.
  • Tuesday: Typically expands range.
  • Wednesday: Midpoint range resets the week.
  • Thursday: Possible range expansions or trend continuations.
  • Friday: Closing range of the week.

Types of Trades

• Focus on specific setups rather than random trades:
  • Trend Trades vs. Reversal Trades:
    • Identify and master one type.
• Aim for 90-10 parabolic trading setups.
• Quote from Bruce Lee: "I fear not the man who has practiced 10,000 kicks once, but I fear the man who has practiced one kick 10,000 times."

Understanding Parabolic Trades

• A parabolic trade experiences explosive movement, often not returning on the same day.
• Three-Day Template:
  • Builds a setup over three days culminating in a parabolic trade.
• Key Concept:
  • Identify potential parabolic trades using specific criteria and timing.

Trade Entry Criteria

• Criteria from Playbook:
  • Understand the price at close and trade along the expected movements.
  • Use historical data to identify setups that yield high returns.

Daily Trading Process

• Identify instruments for potential trades.
• Narrow down to two or three best candidates.
• Execute setups and review after closing the market.
• Repeat the same process daily.

Behavioral Insights for Traders

• Many traders struggle with emotional control, leading to over-trading and impulsive actions.
• Bill Lipschitz Quote: "If most traders would just learn to sit on their hands 50% of the time, they would make a lot more money."
• Focus on high probability setups and eliminate distractions and inconsistencies.

Conclusion

• Keep trading simple and focus on mastering specific setups.
• Wire your brain for success through discipline and understanding key concepts.
• Maintain a positive mindset and clarity in trading decisions.