Market Mechanics Ep 19: When Not to Trade — Transcript

Full transcript

1. 0:00A lot of traders think that the key to
2. 0:02making more money is to trade more. More
3. 0:05charts, more setups, more entries, more
4. 0:08action. But that mindset is exactly what
5. 0:11destroy most traders.
6. 0:14Just because the Forex market is open 24
7. 0:16hours a day, 5 days a week, does not
8. 0:20necessarily means that you have to trade
9. 0:22every single day.
10. 0:24And just because the market is moving,
11. 0:27does not mean you have to be part of it.
12. 0:30The truth is a huge part of becoming a
13. 0:33profitable trader is knowing when not to
14. 0:37trade. So, it's like knowing when not to
15. 0:39trade is as important as knowing when to
16. 0:41trade.
17. 0:42Because as a trader, you only have a
18. 0:45finite amount of capital.
19. 0:47And if you keep chasing low probability
20. 0:49setups, eventually you won't have any
21. 0:52money left for the high quality ones
22. 0:54that actually matter, that actually make
23. 0:56you money. And the thing about these
24. 0:58high quality setups is that they don't
25. 1:00come around often. But when they do, you
26. 1:03need to be ready. You need to be ready
27. 1:04to deploy your capital. So, in this
28. 1:07lesson, I want to show you the market
29. 1:09conditions in which you should not
30. 1:11trade. So, you can preserve your
31. 1:13capital, protect your trading
32. 1:15psychology, and stop donating money to
33. 1:17conditions that were just never worth
34. 1:20trading in the first place.
35. 1:22So, with that being said, let's dive
36. 1:24into the lesson. Now, the Forex market
37. 1:26is open 24 hours a day, 5 days a week,
38. 1:29right? Every day is a trading day, but
39. 1:31that does not mean that you should trade
40. 1:33every day. You should only trade when
41. 1:35there is a high probability setup that
42. 1:36aligns with your plan. Remember, if you
43. 1:39blow up your capital, you can't trade,
44. 1:42right? Because
45. 1:43if you are pretty much going all in on
46. 1:46these low probability setups, you are
47. 1:48just setting yourself up for failure in
48. 1:50the long term.
49. 1:52And just because the market is moving,
50. 1:53that does not mean you have to trade it.
51. 1:55Right? It's imperative that you guys
52. 1:57understand when not to trade. Because
53. 2:00knowing when not to trade is as
54. 2:01important as knowing when to trade. And
55. 2:03when to trade is very simple. It's just
56. 2:06when there's a high probability setup
57. 2:07that aligns with your plan, your
58. 2:08mechanical trading plan, take that
59. 2:10trade. If there isn't, don't trade. As
60. 2:13simple as that. Right? But at the same
61. 2:15time,
62. 2:16there is some days or some months, some
63. 2:19scenarios where you shouldn't be taking
64. 2:21a trade at all. Okay?
65. 2:23And before I talk more about that, I
66. 2:24just want to say this, right? 99% of the
67. 2:27volatility you see every single day is
68. 2:29just a trap waiting for the unsuspecting
69. 2:31trader. If you're not careful
70. 2:33whatsoever, if you're impatient, if you
71. 2:36are trying to force trades when there is
72. 2:37no opportunity, just because you want to
73. 2:40make money,
74. 2:41you are going to make a mistake, and you
75. 2:44are going to lose. Even if you don't
76. 2:46make a mistake, the market will induce
77. 2:48you to making a mistake. Right? And you
78. 2:50will lose money.
79. 2:52And this is exactly why so many of
80. 2:54traders actually lose money in the
81. 2:56markets because they are impatient.
82. 2:59Now, quality setups don't come around
83. 3:01often, but when they do, you need to be
84. 3:02ready. And if you're chasing volatility
85. 3:05every day, you're chasing all these low
86. 3:06probability setups,
87. 3:08uh you're forcing trades, you are
88. 3:10revenge trading, all these type of
89. 3:11stupid mistakes, you will not be ready
90. 3:14when the quality setups come. Because
91. 3:17when the quality setups come, guess
92. 3:18what? You either have no money to
93. 3:20actually take it, or you don't have
94. 3:23emotional capital. Right? That means
95. 3:25you're not emotionally ready to take
96. 3:27that trade because maybe you've been
97. 3:28losing the past few trades, and your
98. 3:30confidence is down after, you know,
99. 3:32going through this huge losing streak.
100. 3:35Therefore, it's extremely important to
101. 3:36know when not to trade so you can
102. 3:38preserve your capital for the high
103. 3:40probability setups, the ones that will
104. 3:41actually work.
105. 3:43Okay? And quite simply put, there is
106. 3:46two market conditions that you should
107. 3:47not trade.
108. 3:50Volatile market conditions, or the
109. 3:51markets are illiquid. All right? So, let
110. 3:53me just explain what this mean.
111. 3:55Now, based on my 5 years of experience,
112. 3:57you should not trade when it meets any
113. 4:00of these criteria. Okay? So, I'm going
114. 4:02to explain one by one. All right?
115. 4:04Let me just pull up the drawing tool if
116. 4:06I actually need to draw something.
117. 4:08So, the first scenario is when price is
118. 4:10in the middle of nowhere. Now, what do I
119. 4:12mean when I say price is in the middle
120. 4:13of nowhere? Basically, if you actually
121. 4:16follow our mechanical trading plan,
122. 4:18right? You identify your market
123. 4:19structure, you mark up your point of
124. 4:21interest, you should be just waiting for
125. 4:24price to get to the point of interest.
126. 4:25So, for example, right now price is, you
127. 4:27know, it just broke structure to the
128. 4:28upside. And then right now you are
129. 4:30waiting for price to actually come down
130. 4:31to this demand zone so you can look for
131. 4:33an entry.
132. 4:34This means that when price is pulling
133. 4:36back, you're not doing anything. All
134. 4:38right? You are just waiting for price to
135. 4:40patiently get down to the point of
136. 4:42interest, then you take that trade.
137. 4:44Okay? But obviously, later on you will
138. 4:46learn about the different market phases,
139. 4:48and you will know that you can trade
140. 4:49this countertrend as well, and we
141. 4:51actually teach you how to do that. Okay?
142. 4:52But for now, just know that when price
143. 4:55is not at a point of interest, that
144. 4:57means price is in the middle of nowhere,
145. 4:58and since price is in the middle of
146. 4:59nowhere, you shouldn't be taking a
147. 5:01trade.
148. 5:02Right? Because it messes up your risk to
149. 5:04reward. If you try to enter for a trade
150. 5:06when price is in the middle of nowhere,
151. 5:08where should you place a stop loss? And
152. 5:09where should you place a take profit?
153. 5:11You realize that you will most likely
154. 5:12get a very, very bad risk to reward,
155. 5:15like a one is to one risk to reward, or
156. 5:16even worse than that. Right? So, when
157. 5:19price is in the middle of nowhere, do
158. 5:20not trade. Okay? Do not trade
159. 5:22whatsoever. Just, you know, after you do
160. 5:25your analysis, set your alerts at the
161. 5:27point of interest that you want to enter
162. 5:28on, and just patiently wait for price to
163. 5:31tap into that point of interest, and
164. 5:33then go and look for your entry model.
165. 5:36So, price in the middle of nowhere, do
166. 5:37nothing. Price at the point of interest,
167. 5:40that is where you can start to look for
168. 5:42your trading opportunity. All right? And
169. 5:44I know this might sound super simple.
170. 5:46You might be thinking, "Brett, I already
171. 5:47know this. You said this a thousand
172. 5:48times."
173. 5:49But trust me when I say that this is so
174. 5:51many This is where so many traders mess
175. 5:53up. Right? Even though you know what to
176. 5:55do, you just don't do it. Right? You
177. 5:56ignore my advice, and you try to, you
178. 6:00know, enter for a sell right here where
179. 6:01price is already entering into our
180. 6:04discount zone, entering into this uh
181. 6:06demand zone right here, and try to enter
182. 6:08for a sell here when it's way too late
183. 6:10to trade the countertrend. Right? So,
184. 6:12there is different nuances to to how to
185. 6:14trade the market properly. And like I
186. 6:15said, we will go deeper into that in the
187. 6:18the multi-time frame market phases
188. 6:20course module, the lesson. Right? For
189. 6:22now, just understand that, okay, if
190. 6:24price is in the middle of nowhere, don't
191. 6:25trade. Even if you are trading the
192. 6:26countertrend just like this, right? So,
193. 6:29let's say you're trading a countertrend,
194. 6:30you're trying to sell during this
195. 6:31pullback, right? In this case,
196. 6:33if you don't enter for a sell, you
197. 6:35should be waiting for price to get to
198. 6:36this supply zone, right? And then you
199. 6:38actually look for your entering for the
200. 6:40sell, and actually trade the
201. 6:41countertrend. So, if price is like right
202. 6:43here, it's in the middle of nowhere as
203. 6:46well, right? Because price has not
204. 6:48actually mitigate any point of interest.
205. 6:50Right? You should only trade after price
206. 6:52mitigate a point of interest, show your
207. 6:54entry model, then you take that trade.
208. 6:56If price mitigate a point of interest,
209. 6:58and you don't see your entry model, same
210. 7:00thing. You do not take that trade
211. 7:02whatsoever. All right? So, yeah, that's
212. 7:04that. That's the first point. When price
213. 7:06is in the middle of nowhere nowhere,
214. 7:08that's a no-go. All right?
215. 7:09Next, when you're experiencing slow and
216. 7:12choppy price action and there is no
217. 7:14clear bias.
218. 7:16Now, what I mean right here is where
219. 7:19it's similar to what I said right here
220. 7:20where price is in the middle of nowhere,
221. 7:22but in this case, it's slow and choppy
222. 7:24price action. Okay? So, maybe just let
223. 7:26me go on to the charts and show you some
224. 7:28examples of slow and choppy price
225. 7:29action.
226. 7:31This right here will be a good example
227. 7:33of slow and choppy price action. Right?
228. 7:34You can pretty much see price is just
229. 7:36oscillating, right? Going sideways.
230. 7:39There is no clear bias whatsoever. Okay?
231. 7:41Because if you look at the overall
232. 7:43trend, right? We are still bearish. And
233. 7:45if you are still bearish, we are waiting
234. 7:47for price to, you know, mitigate some
235. 7:49form of supply that we have right here,
236. 7:52or or even like
237. 7:57or even like right here, right? We're
238. 7:59just waiting for price to mitigate that
239. 8:00supply. So, if price is like slow and
240. 8:03choppy, just going sideways like this,
241. 8:04there is no clear bias, we can't really
242. 8:06tell whether price is going up right now
243. 8:08or whether price is going down. It's
244. 8:10just chopping around within this range.
245. 8:12This is the market condition that I
246. 8:14don't personally trade. Right? And yes,
247. 8:17we teach you how to trade consolidation,
248. 8:19and you can do that. Right? But for me
249. 8:22personally, I just try to stay out of
250. 8:23the market when price is consolidating
251. 8:25just like this, and it's slow, and the
252. 8:27price action is very choppy, it's very
253. 8:29unpredictable.
254. 8:30Right? There is no clear bias, right?
255. 8:32Because price is sweeping the liquidity
256. 8:33from this high, this low, and then price
257. 8:35is sweeping the liquidity from this high
258. 8:37as well. And right now we are just back
259. 8:39to exactly where we start. Right? We
260. 8:41started off right here, and then right
261. 8:42now we are back to where we start. Price
262. 8:44is in the middle of nowhere, no clear
263. 8:45bias whatsoever. We are neither bullish
264. 8:47or bearish, we are just going in
265. 8:49circles. Right? So, in this case, it's
266. 8:52honestly a waste of time to to trade
267. 8:54this uh condition. Just wait for price
268. 8:56to actually break out of this
269. 8:57consolidation, right? And have more
270. 9:00smooth price action like what we see
271. 9:01right here, very smooth price action,
272. 9:03then you can go and look for your trade
273. 9:06opportunity. Right? Slow and choppy
274. 9:07price action, just just don't bother,
275. 9:09honestly. Okay, so next is
276. 9:13Mondays and Fridays. Right? I personally
277. 9:16do not like to trade Mondays and Fridays
278. 9:18as well. Okay? So, you must think about
279. 9:20it in this way.
280. 9:22So, when the market opens on a Monday,
281. 9:26this is where the retail traders, or
282. 9:28rather majority of traders,
283. 9:30just come back onto the market after a
284. 9:3348-hour break. Right? Because the
285. 9:35markets are closed on Saturday and
286. 9:38Sunday. Right? So, the markets are
287. 9:40closed on Saturday and Sunday.
288. 9:42As a result, Monday, when the markets
289. 9:44open, this is where traders, they come
290. 9:46back after this 48 hours break, and they
291. 9:48are slowly settling in to their trading
292. 9:50desk. So, as a result, there's going to
293. 9:52be lower trading volume. Okay? There's
294. 9:54going to be lower trading volume.
295. 9:56However, there are there are some
296. 9:57exceptions, right? If I see like a
297. 9:59top-notch A+ extreme high probability
298. 10:02setup on a Monday, then yes, of course
299. 10:04I'm going to take it because my trading
300. 10:06plan states that if a setup meets my
301. 10:08criteria, I will take the trade
302. 10:09regardless of the day. Right? But yeah,
303. 10:12if it's just like a mediocre setup, you
304. 10:14know, it's it's like a eh to me, yeah,
305. 10:17Monday I just try not to trade, right?
306. 10:19Because
307. 10:20there is this where there's a lot of
308. 10:21traps on Monday, right? And Monday is
309. 10:23also the day where the market
310. 10:26like trying to determine which direction
311. 10:28price is going to play out, right? Is it
312. 10:30going to go up within this week or is it
313. 10:32going to go down in that that week,
314. 10:33right? So, Monday is another scenario
315. 10:36where I just don't trade on Monday.
316. 10:38Okay? And also there's a lot of traps on
317. 10:40Monday, right? Especially since, you
318. 10:42know, um the market just open, right?
319. 10:45Example, when the market open, it could
320. 10:47open at like a gap, right? It could open
321. 10:49with like a
322. 10:50gap up, right? Like and then market open
323. 10:52right here. And then as a result, you
324. 10:54might think the whole market is actually
325. 10:55bullish right now, but in this gap up is
326. 10:57just to sweep the liquidity from this
327. 10:59high and then next thing you know, price
328. 11:00just turn incredibly bearish. So,
329. 11:02there's a lot of traps on Monday and
330. 11:04once again the market is still trying to
331. 11:05figure out where to go for the following
332. 11:08week. So, yeah, Monday is just not for
333. 11:09me, right? And another thing is Friday,
334. 11:12right? So, other than Monday, I also
335. 11:14don't like trading on Friday, okay?
336. 11:17Reason being Friday, there is a lower
337. 11:21amount of trading volume, right? There
338. 11:24is lower liquidity because yeah, the
339. 11:26market is is ending right now. So,
340. 11:28Friday that is where the institutions
341. 11:31they are closing their books, you know,
342. 11:32like like they are they are settling,
343. 11:34they are getting out of their positions,
344. 11:36right? So, there's going to be lower
345. 11:37liquidity. So, the markets are illiquid,
346. 11:39right?
347. 11:40That's one thing.
348. 11:42And there is going to be very less
349. 11:43trading opportunities on Friday.
350. 11:46And then another thing is if you try to
351. 11:48enter for a trade on Friday,
352. 11:52you are likely
353. 11:54going to hold the trade past the
354. 11:56weekend, past Saturday and Sunday,
355. 11:57especially if you are a swing trader.
356. 11:59And if you're holding the trade over the
357. 12:01weekend, there is going to be a rollover
358. 12:03fees that you are going to incur, right?
359. 12:06So, yeah, that that just cause your
360. 12:07profit margin to just decrease, right?
361. 12:10So, as a result, I don't trade on Friday
362. 12:12as well.
363. 12:14Right? Unless right, I'm already in an
364. 12:17existing position, right? So, the only
365. 12:19exception to this rule right here is
366. 12:20that if I'm swing trading, I'm already
367. 12:22holding the trade from last week, then
368. 12:24yeah, I'm just going to continue holding
369. 12:26the trade until price hit my take
370. 12:27profit, right? So, I'm not going to like
371. 12:29close the trade just because it's
372. 12:31Monday, no, no. I'm just going to hold
373. 12:32the trade over Monday, Friday until the
374. 12:34price hit my take profit. So, that's if
375. 12:36I'm swing trading. But if I'm day
376. 12:38trading or even scalping, I just don't
377. 12:41like to trade on Mondays and Fridays.
378. 12:43All right? So, yeah, there is that. And
379. 12:45then fourthly, December. Now, December,
380. 12:47this is where institutions they are
381. 12:49taking a break, okay? The smart money,
382. 12:52they are, you know, going away for
383. 12:54Christmas to spend time with their
384. 12:55family, going on a vacation for the
385. 12:57winter, whatever it is, they are taking
386. 13:00a break, right? I mean, they have been
387. 13:02working for like what, 12 months, right?
388. 13:04So, obviously they deserve a break as
389. 13:06well. So, when all these professional
390. 13:08traders, this smart money, these
391. 13:10institutions, they are on a break,
392. 13:12guess what? The market is going to be
393. 13:15very illiquid, right? It's going to have
394. 13:17less trading volume. And since there's
395. 13:19less trading volume, it's more illiquid,
396. 13:22that means the markets tend to move
397. 13:24slower, right? And it pretty much just
398. 13:27goes back to this.
399. 13:28And
400. 13:29pretty much from December onwards,
401. 13:32right? Or rather the whole month of
402. 13:33December, you'll most likely see slow
403. 13:35and choppy price action. Okay? If you
404. 13:38don't believe me, let me go into the
405. 13:40charts and prove it to you.
406. 13:43Okay, so this is December 2 years ago.
407. 13:46Right now, we are still in November, so
408. 13:47I I can't show you the price data for
409. 13:49this year December, but this is from
410. 13:51December 2022, right? So, once again, I
411. 13:55just wanted you to show you how many
412. 13:56pips the price move
413. 13:59in December for EUR/USD, right? You can
414. 14:01see EUR/USD start December all the way
415. 14:03to the end of December,
416. 14:05it pretty much chop around for just 250
417. 14:08pips.
418. 14:09250 pips for the entire month. Do you
419. 14:12know how less that is? Right? And just
420. 14:15to put it into perspective,
421. 14:17let's look at November, right? November,
422. 14:20price moved
423. 14:23almost 800 pips. That's four times
424. 14:28more
425. 14:29trading volume than in December, right?
426. 14:32Not not really trading volume, but four
427. 14:34times more volatile in November than in
428. 14:37December, right? Or even just let's just
429. 14:39look at October, all right? Let's just
430. 14:40look at October. October itself, it
431. 14:43moved over
432. 14:46at least 500 plus pips, right? And if
433. 14:50this doesn't convince you, just look at
434. 14:52the price action, right? October, we got
435. 14:54price pulls back, goes up, pulls back,
436. 14:56right? Normal price action. November,
437. 14:58same thing, goes up, pull back, goes up,
438. 15:00pull back, normal price action. And then
439. 15:02come December, price goes up, make this
440. 15:04minor pull back right here, and then
441. 15:06just uh you can see you can see how slow
442. 15:10the the continuation is, right? It's
443. 15:12very very slow
444. 15:13and it's very choppy, you can see.
445. 15:16Pretty much after mid-December onwards,
446. 15:18it's just chop around here here. And
447. 15:20then coming to Christmas, the market is
448. 15:21just
449. 15:22uh just not moving anywhere, the the
450. 15:25liquidity is extremely thin, and then
451. 15:27coming New Year, price action go back to
452. 15:29normal again, right? So, please, for the
453. 15:31love of God, just go and spend time with
454. 15:33your family, go and I don't know, kiss
455. 15:36under the mistletoe or like uh decorate
456. 15:38your Christmas tree, celebrate your
457. 15:40Thanksgiving or Boxing Day, whatever you
458. 15:42guys celebrate, just go and chill during
459. 15:45December, right? Pretty much from
460. 15:47December 1st onwards, just go and take a
461. 15:49break, right? If you have been trading
462. 15:50for the entire year, you deserve a break
463. 15:52as well. Just because you don't trade
464. 15:54for 1 month,
465. 15:56that's not mean that you are going to
466. 15:57like I don't know, lose your trading
467. 16:00ability, all right? So, don't be stupid,
468. 16:01just December, just take a break and
469. 16:04then come back with a fresh mind when
470. 16:06the new year actually starts.
471. 16:13Next is immediately before and after
472. 16:16high impact news, right? When you go
473. 16:18through the fundamental analysis course
474. 16:20module, you will know why I don't trade
475. 16:22during the news, I don't trade
476. 16:23immediately before and after the news. I
477. 16:26have this rule called the
478. 16:2830-minute rule or rather the 15-minute
479. 16:30rule, right? You basically wait
480. 16:3215 minutes or even 30 minutes after the
481. 16:34news come out, then you actually begin
482. 16:37trading again, right? So, yeah, that's
483. 16:39what I personally do because the news
484. 16:42the market uh the market just going
485. 16:44crazy during the news, right? You will
486. 16:46learn more inside the fundamental
487. 16:47analysis course module, but basically
488. 16:49the volatility is extremely high, the
489. 16:52spreads are extremely high as well, it's
490. 16:54expensive to trade during the news,
491. 16:56you're going to incur a lot of
492. 16:57um
493. 16:58uh commission, I mean uh the broker
494. 17:00cost, and yeah, it's just not worth it,
495. 17:03all right? And there is no edge in
496. 17:05trading the news. Remember, we are
497. 17:06professional traders here, we are not
498. 17:09gamblers. If you are gambling, by all
499. 17:10means you can trade the news, right? Try
500. 17:12to uh predict where the price is going
501. 17:14to go up or down, but more often than
502. 17:16not, it's going to
503. 17:18yeah, markets are just manipulated and
504. 17:19you are most likely going to lose money
505. 17:21in the long term if you trade news,
506. 17:22right? So, immediately before and after
507. 17:24high impact news, we don't touch price
508. 17:25at all.
509. 17:26And next is when you are not in the
510. 17:28right mental state, right? This is
511. 17:29something that is so underrated that
512. 17:31people don't actually talk about.
513. 17:33Now, what I mean when I say the right
514. 17:35mental state? Remember, trading is 80%
515. 17:38mindset and 20% strategy. You need to
516. 17:41ensure that you are 100% focused without
517. 17:44any distractions when you go into the
518. 17:46charts and scan for your trading
519. 17:48opportunity.
520. 17:49If you are distracted,
521. 17:51you are just going to lose your money or
522. 17:53rather transfer your money to the other
523. 17:55trader who is extremely focused
524. 17:58and disciplined.
525. 18:01So,
526. 18:02why not just take a break, right? If you
527. 18:04are I don't know, like if you are facing
528. 18:06something difficult in your life right
529. 18:08now, right? Maybe you have family issues
530. 18:10or you just broke up with your
531. 18:12girlfriend or you are really struggling
532. 18:14right now and you're just not in the
533. 18:16right mental state, right? Maybe like a
534. 18:18loved one is hospitalized right now, so
535. 18:20it's difficult for you to trade and
536. 18:22focus on the charts because you keep on
537. 18:23thinking about something else, when that
538. 18:25happens,
539. 18:26do not trade, all right? Please, for the
540. 18:28love of God, do not trade because when
541. 18:30you go into the charts, you need to make
542. 18:32sure that you perform at your 100%. You
543. 18:34need to make sure that you are extremely
544. 18:37focused and extremely disciplined.
545. 18:41And chances are you will not be able to
546. 18:43do that if you are distracted by
547. 18:44whatever that's going on in your life
548. 18:46right now. So, if you're going through a
549. 18:48breakup, I don't know, you're going
550. 18:49through a divorce or you're just not in
551. 18:51the right mental state to trade, just go
552. 18:53and do something else. Maybe go try
553. 18:55therapy or walk in the park or go to the
554. 18:57gym or I don't know, watch Netflix if if
555. 18:59that helps you, but just don't trade,
556. 19:01all right? Because you're just going to
557. 19:02lose your money. And you're you're just
558. 19:04going to use the market as like a
559. 19:07as a way to vent your anger or your your
560. 19:09sadness. And you are doing that by
561. 19:11losing your money and that's going to
562. 19:13cause you to become even more depressed
563. 19:15and even more angry and that's going to
564. 19:17cause your mental state to go into this
565. 19:18downward spiral and that's what I don't
566. 19:20want to see, all right? I want you to
567. 19:22not just be rich, but also be mentally
568. 19:25well and and spiritually well, all
569. 19:27right? Next is losing streaks, okay? So,
570. 19:31I believe I've already mentioned this um
571. 19:33a few times, right? When you are going
572. 19:35through a losing streak, you have lost
573. 19:37the past 10 trades in a row,
574. 19:40maybe it's time to
575. 19:42steer clear the markets, sit on the
576. 19:45sidelines
577. 19:49or re-evaluate the past 10 trades,
578. 19:51review your trading data, see what you
579. 19:53have been doing wrong, right? What
580. 19:55mistakes you keep on committing? Are you
581. 19:57continuously just revenge trading and
582. 19:59just causing your losses to get bigger
583. 20:01and bigger?
584. 20:02Basically, just reset, right? So, stop
585. 20:05trading even losing the past five 10
586. 20:08trades in a row, stop trading, really go
587. 20:09and look at your plan, right? Look at
588. 20:12the past few trades, find out what's the
589. 20:13mistakes, so you can do more of what
590. 20:15works and less of what doesn't work.
591. 20:17And then, yeah, you might need to adjust
592. 20:20or refine your plan before you get back
593. 20:22to the market with a clear and focused
594. 20:24mind. Okay, so if you are going through
595. 20:25a losing streak, just don't trade,
596. 20:27right? Just close your laptop,
597. 20:30close your computer even, right? Just
598. 20:32don't look at the charts for like at
599. 20:33least 1 week or so, right? Really go and
600. 20:36get a mental reset before you come on to
601. 20:37the charts, because if you don't do
602. 20:39this, what happens is that you're just
603. 20:41going to fall into this downward spiral
604. 20:42of analysis paralysis, you lose a trade
605. 20:45and then you'll you you'll start taking
606. 20:46even more trade, you start revenge
607. 20:48trading trying to make back the money
608. 20:50that you've lost, and then
609. 20:52uh you lose that trade as well, and then
610. 20:53you suddenly just keep on getting very
611. 20:55depressed and
612. 20:57yeah, and you just start losing faith
613. 20:59and confidence in your trading ability,
614. 21:01and now you are doubting yourself
615. 21:03thinking whether trading is the right
616. 21:05career path for you, maybe you should
617. 21:06just quit trading and go back to your
618. 21:089-to-5 job or whatever, and yeah, this
619. 21:10is just going to cause you to end up
620. 21:11quitting trading, right? When you are so
621. 21:14close to becoming profitable, if you
622. 21:15just push forward and just push through
623. 21:18this phase. Right? So, there's that. And
624. 21:20then the last condition is the last
625. 21:23trading day of the day or of the month,
626. 21:25right? So, it could be the 31st
627. 21:28or 30th 30th, right? It depends on like
628. 21:31which is the the last operating uh
629. 21:33trading day of the month, right? And
630. 21:36usually this is the day where
631. 21:38institutions they close their books,
632. 21:39right? Since they are closing their
633. 21:40books, you know, they are done trading,
634. 21:42then yeah, once again, it's the same
635. 21:43thing like what I mentioned right here,
636. 21:45that there's going to be low trading
637. 21:46volume, not much trading opportunity in
638. 21:48the markets since the markets are
639. 21:49illiquid. Right? So, yeah, those are the
640. 21:51times you should not trade. Remember,
641. 21:53when I say that, knowing when not to
642. 21:55trade is as important as knowing when to
643. 21:58trade, all right? And the best time to
644. 21:59trade is when a setup meets your
645. 22:01criteria.
646. 22:03Okay, when you see that trading
647. 22:04opportunity that lines up with your
648. 22:06trade plan, execute the trade without
649. 22:08hesitation, without reservation or fear.
650. 22:11And if you lose the trade, eat the loss
651. 22:14and move on, because you trust your plan
652. 22:17and you know that in the long term,
653. 22:19your discipline will pay off and your
654. 22:21trade plan will actually play out and
655. 22:23you will be consistently profitable. So,
656. 22:25hopefully after this lesson, you can see
657. 22:26that one of the best skills that you can
658. 22:28develop as a trader is restraint. Is
659. 22:32patience.
660. 22:33Because like I said, profitable trading
661. 22:35is not just about knowing when to enter,
662. 22:37it's about knowing when to stay out,
663. 22:40when to sit on the bench, when to sit on
664. 22:41the sidelines and just observe.
665. 22:44The market is open every single day, but
666. 22:46that doesn't mean that there's
667. 22:47opportunities every single day.
668. 22:49A lot of the volatility that you see
669. 22:51that have that's going on in the market,
670. 22:53most of the time is just noise, is just
671. 22:56traps, is just low quality movement that
672. 22:59is designed to punish the impatient
673. 23:01traders, designed to make the retail
674. 23:03traders liquidity.
675. 23:05So, yeah, please
676. 23:07have a mindset shift, stop thinking that
677. 23:09you need to trade all day because you
678. 23:10really don't. You only need to trade
679. 23:13when a setup clearly meets your criteria
680. 23:16and the conditions that actually support
681. 23:18your edge.
682. 23:19That is the real key. Protect your
683. 23:21capital, protect your mental state, and
684. 23:23save your bullets for the moments that
685. 23:25actually matter.
686. 23:27Because at the end of the day, the best
687. 23:29traders are not the ones who trade the
688. 23:30most. They are simply the ones who know
689. 23:33exactly when it is worth doing nothing.
690. 23:37So, with that being said, I look forward
691. 23:38to seeing you guys in the next lesson,
692. 23:40and as always, remember, you're just one
693. 23:43trade away.