Brief Summary
This video discusses essential lessons for futures traders, emphasising the importance of finding a trading system that works for you and avoiding the allure of quick-rich schemes. It highlights the psychological barriers traders face and stresses the need for hard work and patience in building an account. The video introduces two key trading rules: avoiding indicator overload and trading with the correct capital size, advocating for a focus on price action and market structure.
- Find a trading system that works for you
- Avoid indicator overload
- Trade with the correct capital size
- Focus on price action and market structure
Introduction: The Realities of Trading
The video addresses both experienced and novice traders, acknowledging the struggles many face, such as blowing through accounts and searching for foolproof strategies. It points out that psychological barriers affect most traders, leading to issues like fear, greed, overtrading, and revenge trading. The speaker aims to share lessons to help traders understand when to stop, find a suitable system, and achieve consistent profitability. He cautions against falling for flashy promises of overnight success and stresses the importance of hard work in making any trading system effective.
Building a Foundation for Success
The speaker advises beginner traders to take their time building their accounts, especially when capital is limited. He suggests starting with micro contracts. He emphasises that finding a strategy or system that aligns with one's trading style and personality is crucial. The speaker shares his early struggles, highlighting the importance of mastering market structure and price action to achieve consistent profitability in futures trading. He encourages viewers to ignore the "gurus" pushing unrealistic expectations and focus on genuine learning and understanding.
The Value of Genuine Content and Learning
The speaker asserts that his video content aims to genuinely help people by providing a strategy and system that works. He mentions a Discord community and a private community with successful traders, offering opportunities for further learning. He clarifies that his intention is not to exploit viewers financially but to simplify trading and make it accessible. He discourages constantly switching between channels in search of signal alerts, advocating instead for learning a strategy that enables self-sufficiency.
Trading Rule #1: Simplicity and Price Action
The first trading rule is to avoid overloading oneself with numerous indicators. The speaker advocates for using a naked chart, focusing on mastering market structure and price action. He explains that understanding these concepts is key to identifying trading direction and opportunities. He describes his simple strategy based on supply and demand, identifying key zones where institutions are making moves and trading in alignment with them. While he uses the volume profile indicator, he stresses that price action is paramount.
The Power of Price Action and Market Structure
The speaker elaborates on why he favours volume and price action over lagging indicators like MACD and RSI. He stresses that volume is essential for understanding market momentum. He reiterates that price action, coupled with market structure, is the "holy grail" for successful trading, enabling him to trade independently and profitably. He shares his personal journey of overcoming initial struggles by focusing on these core concepts, which allowed him to leave his 9-to-5 job and trade for himself.
Trading Rule #2: Capital Management and Risk
The second rule involves knowing the correct amount of capital to trade with. The speaker advises beginner traders to start with demo accounts and then transition to micro contracts. He recommends a 5-6% risk parameter, never trading more than this percentage of the account. He explains how scaling up gradually as the account grows, while maintaining the same risk percentage, can lead to significant gains over time.
Growing Your Account and Avoiding Pitfalls
The speaker advises against depositing large sums into a brokerage account without experience. He contrasts trading with personal accounts versus prop firm funded accounts, noting the challenges of adhering to prop firms' rules. He suggests that traders using prop firms should use their profits to build their own personal accounts for greater success.
Recap of Key Rules and Community Invitation
The speaker summarises the two key rules: avoiding indicator overload and using the right capital size. He encourages viewers to gain experience with naked charts and to grow their accounts at a steady pace, adhering to a 5-6% risk parameter. He invites viewers to explore the channel's videos and join the free Discord community. He also mentions the option to become an elite member for more in-depth content, including trade breakdowns and live trading sessions.
Elite Membership Benefits and Closing Remarks
The speaker details the benefits of the Ultra Elite membership, including trade breakdown videos, a video playlist, market structure videos, live recorded trading sessions, and market recap videos, all for a monthly fee. He encourages viewers to subscribe to the channel, turn on notifications, and like the video if it was helpful. He concludes by inviting viewers to leave comments about their trading strategies and any struggles they are facing.
