Lecture Notes: Mentorship Session

Introduction

• Apologies for the late start due to technical issues with OBS streaming.
• Purpose: To mentor and teach trading principles, especially to personal children.

Teaching Philosophy

• Focus on building an independent mindset in children:
  • Avoid fostering an employee mentality.
  • Emphasize hard work and self-sufficiency.
• Questions from audience about teaching methods.

Mentorship Goals

• Support son Caleb’s interest in trading.
• Encourage documentation of his progress through a YouTube channel.
• Emphasize sincerity in teaching, as if speaking directly to children.

Audience Engagement

• Addressing audience members who may not be serious about learning.
• Importance of self-responsibility in trading.
• Suggestion for already profitable traders to refrain from watching the livestream to avoid distraction.

Market Conditions

• Upcoming heavy news driver at 10:00 AM (ISM PMI).
• Discuss the importance of understanding market dynamics before trading.

Key Trading Concepts

• Mindset: Have a clear reason and purpose for trading.
• Preparation: Prepare yourself mentally before engaging in trading.
• Learning Structure:
  • Importance of understanding price action and market behavior.
  • Avoid complexity; focus on basics first.

Trading Framework

• Key Concepts to Consider:
  • Market behavior before opening times (7:00 AM to 9:30 AM New York time).
  • Recognizing smooth price levels and relative equal highs/lows.
  • Understanding liquidity draws and market traps.

Practical Advice

• Encourage using micro contracts for beginners to minimize risk.
• Importance of patience and understanding before attempting complex trades.
• Build a trading model based on clear observations rather than following others blindly.

Observational Techniques

• Chart Analysis:
  • Use 1-minute, 5-minute, and 15-minute charts to study market behavior.
  • Annotate charts and keep a trading journal for reflection.
  • Identify price delivery patterns, especially smooth vs. jagged movements.

Conclusion

• Recap of principles covered in the mentorship session.
• Encouragement for self-study and application of concepts discussed.
• Reminder of the importance of mindset and preparation in trading.
• Invitation for participants to join future sessions for deeper dives into trading strategies.