Notes
- Prerequisites for the transition from demo to live trading:
- Minimum of six months of consistent performance.
- Keeping risk below 3% maximum.
- Ability to handle strings of losses unemotionally.
- The best source for studying seasonal tendencies is Moore Research Center, Inc.
- Look for significant market movements every 3-4 months (Quarterly shifts).
- Align daily activities with the expected monthly and weekly market direction.
- Our focus should be on the open, high, low, and close of the daily bar (Power Off Three ICT Concept.
- Specifics of the sessions:
- London Open: Often sets the high or low of the day.
- New York Session: Continuation or reversal based on higher time frame levels.
- London Close: Often marks the opposite end of the daily range.
- Taking the time to understand the power of compound returns properly is essential.
- Recommendations for loss management:
- Avoid overtrading and forcing trades.
- Scale down positions after losses to manage equity drawdown.
- Be patient and avoid rushing to recover losses.
- We can do very well even if our trades offer a risk-to-reward ratio of 1:1 or 1:2.
- Velocity (turning over equity) can be more effective than aiming for large risk-to-reward ratio trades.
- Taking partial profits reduces risk and secures some gains. It also helps manage the psychological stress of holding trades.
- Advice from those who are not consistently profitable is better ignored.
- A trader should trust only his own proven methods and results.
- Michael recommends not measuring our success with other traders or authors. Instead, we should focus on our own success and development.
- Realizing that it can take years to fully develop and become a consistently profitable trader is vital.
- Consistency and patience are key to long-term success in trading.
- Sticking to a proven method despite a temporary losing streak is what separates successful traders from perpetual losing ones.
When Am I Ready For Live Funds
Proof Of Concept
Minimum Six Months Of Consistency
Manage To Keep Risk Below 3% Maximum
Weather Series Of Consecutive Losses
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