Insights on Trading Strategies and Journaling

Aug 24, 2024

Lecture Notes on Trading and Market Analysis

Introduction and Audio Issues

  • Addressed previous issues with audio volume.
  • Emphasized the importance of using good equipment, but noted YouTube compression issues.
  • Personal messages, texts, and overstepping boundaries were discussed.

Schedule and Class Structure

  • Announcement of scheduling changes for upcoming sessions:
    • Afternoon lecture at 1:30 PM ET tomorrow due to an eye appointment.
    • Thursday and Friday will revert to morning sessions.
  • Focus of the session: Journaling and logging practices for trading.

Trading, Journaling, and Collecting Data

  • Importance of journaling and logging for the month of August.
  • Collecting data, not demo trading or entering markets is the focus.
  • Training the brain to recognize patterns, similar to noticing a new car model after purchasing one.

Addressing Previous Errors

  • Clarifications on previous miscommunications during a live stream.
  • Corrected terms and stages, e.g., "second stage of reaccumulation" vs. "second stage redistribution."

Trading Philosophies

  • Emphasis on not needing scripts or teleprompters, teaching from experience.
  • Importance of visual learning and understanding market behavior.
  • Remove "right" and "wrong" thinking initially; focus on learning and observing.

Journaling Practices

  • Journaling should avoid negativity and instead focus on coaching oneself positively.
  • Encouragement to emphasize what was done right and recognize new opportunities.
  • Journaling helps manage fear, greed, and regret.

Chart and Market Analysis

  • Explanation of chart setup: 15-minute, 5-minute, 1-minute, and 15-second charts.
  • Discussed the advantages of using different time frames to understand price action.
  • Relative equal highs/lows and inefficiencies as key focus areas.

Market Behavior and Time Management

  • Explained the significance of specific times: 7:00 AM, 8:00 AM, and 9:00 AM ET for market behavior.
  • Importance of understanding market structure and how to anticipate moves based on these times.

Technical Analysis and Trading Models

  • Details on identifying market entries using fair value gaps (FVGs), breakers, and other indicators.
  • Discussed the concept of inversion fair value gaps and their role reversal.
  • Emphasis on focusing on sell-side imbalances when expecting downward movement.

Conclusion

  • Emphasized the importance of patience, experience, and observation in trading.
  • Encouraged maintaining a positive and constructive journaling practice.
  • Stressed the importance of adhering to trading rules and limiting influences from others.
  • Highlighted the importance of humility and avoiding the influence of ego in trading decisions.

Final Thoughts

  • The session concluded with a demonstration of market analysis and prediction in real-time.
  • Encouraged students to maintain a consistent journaling and study practice, focusing on learning and not just trading profitably.

These notes are structured to help students reinforce their understanding of trading principles, focus on consistent learning and journaling practices, and manage their expectations and emotions in trading.