Trading Lecture Notes

Introduction

• Speaker almost missed the session due to watching YouTube.
• Emphasis on the informal and relaxed nature of today’s session.

Current Market Overview

• Charts Used:
  • 15-second chart on the right
  • 1-minute chart on the left
• Key Features:
  • Large premium gap noted as an area of liquidity.
  • Focus is on holiday weekend impact; no live streams on Monday or Tuesday due to lower liquidity.

Trading Strategy Discussion

• Opening Range:
  • Examines gaps between 9:30 and 10:00 AM.
  • Holiday volume considerations; advises against trading on first day after a holiday.
• Fair Value Gaps (FVG):
  • Yesterday’s FVGs are still relevant up to a 3-day lifecycle.
  • Importance wanes after three days.
• Liquidity Pools:
  • Mention of sell-side liquidity resting under certain lows.

Personal Experience and Commentary

• Reflects on personal anecdotes to relate to market feelings.
• Shares an observation about missing a shorting opportunity due to being occupied.

Upcoming Market Movements

• Discussion on whether the market will target liquidity around the 19694-95 area.
• No new FVGs formed on the 1-minute chart as of yet.

Trading Models and Concepts

• Key Principles:
  • Encourage studying price behavior and setups.
  • Mention of ICT’s concepts and the challenge of exposing original ideas.
• Caution Against Over-trading:
  • Discusses the usual behavior around holiday weekends.
• Immediate Rebalance:
  • Looks at how candles might indicate bullishness.

Market Predictions and Assumptions

• Importance of time in price action; aims to see price actions by noon.
• Liquidity Dry Up:
  • Reduced liquidity as traders exit before the weekend.
• Algorithm Behavior:
  • Discussion on how the algorithm interacts with buying and selling interests.

Personal Trading Philosophy

• Advocates against active trading on days lacking clear market direction.
• Personal experiences and philosophies are shared.
  • e.g., importance of naps for personal well-being.

Trading Strategy Tips

• Key Models and Setups:
  • Encourage finding and mastering one’s unique trading setup.
• Trading Psychology:
  • Warns against the emotional pitfalls of trading.
  • Stresses the importance of mindset and self-talk.

Market Behavior Analysis

• Current market behavior seen as muddled and unorganized.
• Impact of layered new day and new week opening gaps on market movement.

End of Session Recommendations

• Encourages relaxation and reflection over the weekend.
• Recommends revisiting the trading exercises discussed earlier in the week.
• Next live stream planned for Wednesday; further announcements via the community tab on YouTube.

These notes aim to summarize the key points and strategies discussed in the trading session. They provide insights into market analysis, trading psychology, and the personal experiences of the speaker.