Lecture Notes: Trading Presentation

Introduction

• Presenter greets the audience and checks audio.
• Reminder: No live stream tomorrow due to Fed's rate announcement.

Opening Session

• Discusses the opening range gap, a premium opening, sweeping Friday's high.
• Focus on the 15-minute timeframe; mentions personal pace is slower due to a migraine.
• Inside the opening range gap, color-coded for analysis.

Main Topic: Missing Trades

• Scenario: Missing a trading entry.
• Reasons: Freezing, second-guessing, late charts.
• Solution: Strategies to enter a move that's already started.

Trading Insights and Strategies

• High Probability Trading:
  • Gap openings provide insights, especially when larger than 40 handles.
  • Use the opening price and previous settlement to find potential targets.
  • 70% chance of hitting the mid-gap within first 30 minutes.
• Chart Analysis:
  • Utilize 1-minute and 15-second charts for detailed analysis.
  • Understand fair value gaps and how to use them for entries.

Trading Setup

• Indicators and Overlays: Suggestions for chart annotations.
• Timeframes: Use of various timeframes for different trading styles.
  • High frequency: Look for short-term liquidity runs.
  • Longer-term: Align with hourly or higher timeframes.

Day Before FOMC

• Market Behavior:
  • Typically volatile, manipulated price action.
  • Suggestion to trade only in the morning session.
  • Avoid larger positions due to unpredictable movements.

Example Walkthrough

• Demonstration of analyzing potential trade setups on both short and long timeframes.
• Emphasis on patience and waiting for correct setups.
• Caution against impulsive trading and over-leveraging.

Common Mistakes

• Over-leverage: Avoid taking on too much risk.
• Impatience: Wait for confirmed setups.
• Reaction to Missed Trades: Avoid emotional responses.

Additional Trading Tips

• Avoid Afternoon Trading: Especially before major announcements.
• Economic Calendar: Use it to predict market movements.
• Practice and Backtesting: Essential for building trust in trading strategies.

Conclusion

• Encouragement to test strategies independently.
• Understanding personal trading behavior through active observation.
• Reminder of upcoming stream on Thursday.