ICT Mentorship Month 2: Growing Small Accounts Without High Risk

Key Concepts

• Avoid High Risk: Do not rush for massive gains in pips or percent returns. Focus on consistent, sustainable wealth building instead.
• Avoid Large Risks: Avoid the mindset that high risk is needed for high returns. You can grow your account with small, well-defined risks.
• Compound Interest: Understand that even small amounts like $100 can grow significantly over time through compound interest.
• Trading Strategy: Define trades with low risk and let them compound over time. Aim for consistent growth rather than quick, large gains.

Important Points

Risk Management

• Suppress Greed: Avoid the temptation to chase high gains; focus on long-term growth.
• Use Low Risk: Employ low-risk trade setups to avoid large drawdowns.
• Respect Risk: Prioritize understanding the risk side of trade setups over potential rewards.

Trade Setups

• 3:1 Reward to Risk Ratio: Aim for trade setups with at least a 3:1 reward to risk ratio. For every $1 risked, aim for $3 in return.
• Low Impact Trades: Frame trades so that even if they're unprofitable, they have minimal impact on your account.

Performance & Profitability

• Accuracy vs. Time: High accuracy is not necessary; time and consistent low-risk setups will build wealth.
• Win Rates: Different win rates (e.g., 75%, 60%, 50%, etc.) imply different risk/reward setups:
  • At 75% accuracy, lower risk is needed for each reward.
  • At 50% accuracy, risk $1 to make $1.
  • At 33% accuracy, aim for a $2 reward for every $1 risked.

Example of Trading Strategy

• Initial Capital: Start with a small amount like $5,000.
• Selective Setups: Use selective trade setups for big payouts and low risks.
• 50% Monthly Return Example: Possible but not standard – requires selective, high payout, low-risk trades.

Focus on Low Drawdown

• Avoid Large Drawdowns: Have strategies to minimize drawdowns.
• Pip Goals: Aim for 50-75 pips per week as a consistent performance level.

Basic Strategy to Follow

• 6% Monthly Growth: Aim for a 6% growth per month via 20 pips per week with 1.5% risk per trade.
• Compound Growth: Compounding at 6% monthly can double your account annually.

Trade Identification

• Daily Chart Setups: Utilize daily charts to find setups with high probability.
• Order Block Identification: Identify and trade off of order blocks for high accuracy setups.

Psychology & Long-term Goals

• Patience: Stick with long-term goals, allowing consistent growth over time.
• Millionaire Goal: Starting with $1,000 and compounding at 6% monthly could potentially grow to over $1 million in 10 years.

Conclusion

• Commitment to Learning: Stick to structured learning and disciplined trading to grow even small accounts significantly over time.
• Future Teachings: Upcoming teachings will further detail trade ideas and scenarios for account growth.