Good morning traders!
Hope everyone had a great weekend and got some rest for todays session.
I took extra time and gave explanations on the formation of value areas inside todays video pushing it to 40 minutes. Highly recommend watching all the videos to learn how profiles form into value areas overtime. Simply following along you will begin to catch on and predict the words I’m going to say next.
Volume Profile is not hard but mastering your craft to execute is extremely tough.
Work extra hard on solidifying your risk management and the analysis will form on it’s own. Understand who you are as a person and what triggers all your emotions. What do these emotions do when your trading, do they cause problems? Can they help?
A hidden indicator is your emotions.
One of the more general ones I can use for nearly everyone is FOMO.
The absolute best way to overcome this is watching the market for weeks while sitting on hands. Once you go back into trading you MUST use as small size as possible. Great rule to use is never risking more than 1% of your capital per trade. This means if I have a $100,000 account I will risk $1,000 on each trade. For me to lose everything it will take 100 losses in a row! Now for the ones just starting out I would drop this down to 0.5%!
This allows for a level head in the market and all decisions are based on the information provided to you and not the information you want to see.
Another rule I personally use is I will only change my $ risk once my account has doubled.
So if I have $100,000 and I risk 1% ($1,000) this is used all the way to $199,999.
Once I break over $200,000 I will then take 1% from $200,000 which allows me to risk $2,000 until the account reaches $400,000.
You should be sticking with size and become comfortable using it and then your profit will determine when you can step up the risk.
Moving back into the Weekly Outlook we will touch on last weeks setups then to todays session levels.
Last Weeks Outlook
Moving forward with emini this week I will look for the same range to hold until later in the week. CPI will be the catalyst to push prices out of this range whether to the upside or downside. As we started to see demand begin to dry up, this in turn should bring relief to inflation. Making this a highly anticipated release bringing more than likely a surge in volume & volatility.
Right now price still favors a break of upside as the 300 handle rally remains in tact. Upon breaking 4080s post CPI I will in now way be bullish here and look for a move lower to 3880s.
Not only did we get this move to the VAH 4192 but VAH 4095 held once again giving another buy opportunity early in the week.
To compliment every plan, plenty of updates are sent out in the telegram on a daily basis. See below.
There are plenty more to show but I will leave one more showing how we handled the CPI report.
*Note CPI trade sold 20 handles then sold another 40 after moving back up to level*
Of course I need to show a loser we had from the week, this is what it looks like when LIS (Stop Loss) is hit. Shortly after this loss we recovered it and more on the flush lower.
If you want access to the Telegram you must go through the link here.
