Mentorship in Trading Strategies

Aug 22, 2024

Lecture Notes: Mentorship Session

Introduction

  • Apologies for being slightly late due to OBS streaming issues.
  • Focus of the mentorship is to provide guidance and understanding in trading.

Purpose of the Mentorship

  • Teaching Children: The mentor's goal is to teach his children, especially Caleb, to think independently and avoid an employee mentality.
  • Sincerity in Teaching: The mentor addresses his children directly, which creates an authentic connection with the audience.

Learning Approach

  • Work Hardening: Importance of hard work and not relying on financial handouts.
  • Authentic Teaching: Teaching is tailored to his children, ensuring they understand the concepts clearly.
  • Mentorship vs. Market Replay: Live teaching versus hindsight learning; emphasizes learning from real-time market action.

Key Concepts in Trading

Mindset Before Trading

  • Start with a clear intention and reason for trading.
  • Be aware of external influences and avoid being distracted by social media trends.

Understanding Price Action

  • Focus on Price Levels: Look for relative equal highs and lows, inefficiencies, and market smoothness.
  • Algorithmic Nature of Markets: The mentor emphasizes that market movements are driven by algorithms, not just buyer/seller activity.
  • Time is Crucial: Specific times of day (8 AM to 8:30 AM) are critical for observing market behavior.

Trading Strategies

  • Identification of Draw on Liquidity: Understanding where the market is likely to move based on previous price action.
  • Bias Development: Developing a bias by observing market conditions before making a trade.
  • Micro Contracts: Encourages practicing with small positions to build confidence before scaling up.

Practical Trading Guidelines

  1. Set Up Charts: Focus on the 1-minute, 5-minute, and 15-minute charts.
  2. Observe Price Movement: Identify smooth price areas for potential trades.
  3. Trading Discipline: Avoid over-leveraging; start with one contract until comfortable.
  4. Journaling and Analysis: Record and analyze trades to understand what works and what doesn’t.

Conclusion

  • The importance of patience and understanding in trading.
  • Trading requires continuous learning and adaptation.
  • Invitation to return for further lectures to deepen understanding.
  • Emphasis on minimizing emotional stress while trading.

Final Remarks

  • Thank you for participating. Looking forward to continued learning in upcoming sessions.