Lecture Notes

Overview

• Discussed levels and price testing on different exchanges (Binance, BitMEX, etc.).
• Emphasis on understanding and using actual levels rather than prices.
• Mentioned gaps in the market and their perceived misconceptions.
• Highlighted the importance of not losing money in trading.
• Discussed the progression of knowledge and income in day trading.

Levels and Price Testing

• Example Level: 61.84 on Binance.
• Comparison with XBT on BitMEX:
  • Find the equivalent level on the BitMEX chart.
  • Use of time stamps to find levels.
  • Examined the 3-minute range for comparison.
  • Personal preference: author prefers using 61.84 regardless of exchange differences.

Gaps and Misconceptions in the Market

• Common misconception: gaps make trading difficult.
• Clarification: gaps (also called windows) do not affect the author's strategy.
• Emphasis on precise predictions despite gaps.
• The term "windows" was used historically (e.g., 1940s).
• People tend to create unnecessary terms to understand market phenomena.

Trading Strategy and Mindset

• Focus on not losing money rather than making money.
• Building a foundation to prevent losses:
  • Equip traders to never lose a cent.
  • Start small and build over time.
• Advice for mentees:
  • Test and perfect trades without the pressure to make money.
  • Avoid losing bank accounts and bankrolls.
  • Making informed, high-quality trades over time.

Knowledge and Income Progression

• The pathway of knowledge and income in day trading:
  • Knowledge grows incrementally (staircase model).
  • Income remains flat until a significant level of understanding is achieved.
  • At a certain point, income can increase sharply or decrease if not prepared.
• The necessity to avoid quitting before reaching full potential.
• Learning to make precise trades and managing risks effectively.
  • For example, small strategic trades leading to significant profits over time.
  • Emphasis on reducing risk and avoiding entering bad positions.
  • Examples of greed and strategic positioning.

Final Thoughts

• Importance of perseverance in trading.
• The goal is to master the trading strategy before expecting significant income.
• Once mastered, executing trades becomes almost effortless.