Summary
Highlights
The speaker begins by explaining his primary focus: identifying the market's tendency (sideways or trending) and then selecting appropriate zones for potential trades. He aims for 1% profit from his trades, usually by winning three out of five trades. He analyzes the Euro CHF pair, noting its current sideways movement despite an overall upward trend, which prompts him to check higher timeframes.
To understand the market better, the speaker switches to higher timeframes (2-minute, 3-minute, 15-minute). He observes strong buy signals on the 15-minute chart but also identifies areas where the strong buy might fail. He looks for specific price points and structures to consider selling, noting that a low ADX indicator suggests the market isn't ready for a strong directional flow, making trades riskier. He stresses the role of repetition in quickly assessing charts.
The speaker details his process for executing trades, dropping to lower timeframes (3-minute, 1-minute, 15-second) to find confirmation and entry points. He marks areas of interest, like past failure points or strong volume, to anticipate market moves. He emphasizes not forcing trades and waiting for clear signals, even if it means missing an immediate opportunity, to avoid bad trades due to eagerness.
The speaker advises caution in sideways markets, which can be tricky and lead to getting 'caught.' He highlights the importance of self-trust and discipline; if he feels unsure or misses usual entries, he stops trading. He demonstrates patience, waiting for specific price action and confirmation on indicators before entering, even if it means switching to a different chart if the current one is too erratic.
The speaker discusses that genuine understanding and confidence in trading only come from direct experience in a live market, unlike demo accounts. He explains that the emotional 'feeling' of live trading—knowing when an entry is good despite a loss or bad despite a win—is crucial for guiding decisions and adapting strategies. This real-time experience helps traders discern signals and manage emotions.
Throughout the session, the speaker continuously adapts to market behavior. He switches between different currency pairs and timeframes, seeking clear trends rather than battling sideways movements. He maintains patience, waiting for ideal setups and confirmations, even if it means extended periods of observation without trading. He reinforces that not every market condition is suitable for trading.
The speaker meticulously analyzes various potential trade entries, considering factors like structure candles, indicator readings (e.g., ADX), and support/resistance levels. He explains his decision-making process for entering and exiting trades, often looking for a 'steep shape' for strong momentum. He also shares moments where his initial trade ideas don't pan out, prompting him to reassess or move on.
The speaker emphasizes the importance of a deep understanding of trading principles over mere strategies, as markets constantly change. He highlights that being able to explain one's thought process is key to working through losses and maintaining discipline. He encourages consistent practice and learning, even suggesting a 'ratio' approach for timeframes based on individual comfort (e.g., 1-minute on 1-minute chart).
After a prolonged trading session, the speaker eventually finds a 'beautiful' trade that aligns with his criteria, leading to a profitable outcome. He expresses satisfaction with even a modest profit (1%), emphasizing that persistence and waiting for the right opportunity ultimately pay off, even if it means trading for an extended period. He humorously reflects on the intensity of his focus during trading.