ICT 2024 Mentorship \ Lecture #1 August 5, 2024

Introduction

This tutorial is designed to help aspiring traders navigate the complexities of trading by providing foundational insights from the first lecture of the ICT Mentorship series. The focus is on understanding market behavior, developing a proper mindset, and identifying key trading strategies to enhance your trading skills.

Step 1: Establish Your Trading Mindset

• Understand Your Motivation: Before trading, clarify why you want to engage in the markets. This will help you stay focused and avoid distractions from external opinions.
• Embrace Responsibility: Take ownership of your trading outcomes. Acknowledge that losses are part of the learning process and that no one else is responsible for your trading decisions.
• Set Realistic Expectations: Trading is not a get-rich-quick scheme. Prepare yourself for a journey that requires patience, practice, and a commitment to learning.

Step 2: Identify Key Trading Times

• Use New York Local Time: Align your trading activities with the New York market hours, as this is when significant price movements typically occur.
• Focus on Specific Timeframes: Pay attention to three crucial time windows:
  • 7:00 AM to 7:30 AM
  • 8:00 AM to 8:30 AM
  • 9:00 AM to 9:30 AM
• Analyze Pre-Market Ranges: During these windows, look for relative equal highs and lows. These levels can indicate potential market movements and help establish your trading bias.

Step 3: Analyze Price Action

• Use Multiple Timeframes: Analyze price action on three different charts—15-minute, 5-minute, and 1-minute. This will help you identify trends and smooth areas in price delivery.
• Look for Smooth Areas: Identify areas of price that are "smooth," meaning they have consistent highs or lows. This indicates low resistance for price to move, making it more likely to be disrupted.
• Document Key Levels: Keep a record of significant highs, lows, and inefficiencies on your charts. This information will serve as a reference for future trades.

Step 4: Develop a Trading Plan

• Create a Simple Strategy: Start with a basic strategy that focuses on smooth price levels and relative equal highs/lows. Avoid overcomplicating your approach.
• Limit Your Trades: When starting out, trade with only one micro contract. This helps manage risk and reduces the emotional strain of trading larger positions.
• Establish Trade Rules: Develop clear rules for entering and exiting trades, including stop-loss placement based on the levels you’ve identified.

Step 5: Journal Your Trades

• Record Your Experiences: After each trading session, document your trades, emotional responses, and observations regarding price movements. This will help you recognize patterns and improve your trading skills over time.
• Reflect and Learn: Regularly review your journal to identify strengths and weaknesses in your trading approach. Use this insight to refine your strategy.

Conclusion

Successfully navigating the trading landscape requires a solid foundation built on mindset, time management, and strategic analysis. By following these steps, you can enhance your trading skills and increase your chances of success in the markets. Remember, consistency and continuous learning are key to becoming a proficient trader. As you progress, consider revisiting the concepts covered in this tutorial and adapting them to your trading style. Happy trading!