 basically go over for really the new traders and newer traders in here and I just want to explain maybe certain things So general trading rules and this it doesn't matter whether you're trading you supply and demand daily supply and demand zones Whether you're trading stop hunts or whether you're trading capture pain relief, right? There are certain things that you must Adhere to or you should adhere to right and Number one is obviously used a daily time frame prefer for perspective when entering on lower time frame so you can avoid buying or going long at highs and Selling or going short at lows and I can't remember who who did this But it was I think it was someone over the weekend that I think was buying the Euro CAD Yeah Sorry buying the CAD Pretty much at a low and I think they were asking about CPR something that I didn't know what a CPR was I don't remember who it was, but they literally bought The CAD and entered here right so entry to go short at the low and That's not the way that we trade, right? That's not we're not trying to short here if you understand we have to Look for pullbacks. That is where the discount is that's where the bargains are it's on the pullback It's not here. Don't don't FOMO in don't be the breakout trader Don't be that guy. He's you know, I mean if we're we're we're we are retracement traders You know and and level traders we are that's what we do But only when we know we have an advantage over other retracement and level traders But one thing we're definitely not in no Under no circumstances are we breakout traders? Yeah, and one thing we should never do as well is buy at highs and selling at lows This is the equivalent of buying at an absolute high Whoever the trader was basically bought at the absolute high and That's what that's not what you want to do You always want to look for you know where you are on the daily time frame chart. Yeah Avoid doing that. Yeah, so obviously number two is buying at lows and and selling at highs present the best risk reward Trading opportunities as we know, right or we should know and trade should be taken around the highs and lows of developing or Established ranges. So what I mean by that is this Yeah, is One second Do another page, right? At some point there's gonna be a range established Right, let's say for example in a trending market now a range can either be established from a previous Resistance potential turn support All right Mike and start to go like that and start to range from there Of course, we're not looking to take that because we understand where an expensive and where the bargain area is right So that's expensive potentially It can't go any higher than it is expensive. That's the bargain price But a range can be established from here, right? It can be and it does get established from there all the time or Here this is basically our preference. Yeah, but either way you look at it. Yeah We're looking to buy at the lows buy after an arrange is is Attempting to be established, but you have to come sometimes you have to let the range set. Yeah, so you have to let the range set So if we see something like that then we understand that potentially that's where the range is Going to set we might take a trade here cool If it works brilliant, but then the rain starts to become clearer as you start to come down All right, that's basically what it is or if you sometimes you might see something like this and then you might see, you know prices come back down and automatically That potentially is the first sign of a potential Ranging market where you're buying low, right? This is where the low prices because this is ultimately proof of value Right, the market went, you know, two or three hundred pips up from here The market established where the value was and this is where we potentially may get and start to Establish where that where another bargain is and this is where the range may start may start to Establish itself on right so you want to always look to buy low or You know anticipate where the range may be Yeah number three is Enter a maximum of two trade positions on a single currency For example, if I have or say you but if you haven't if you have open trades on the euro dollar and the dollar CAD Yeah, so if you're basically trading to dollar pairs or you're in two pairs that consist of a dollar currency Sorry of the dollar currency I Would probably advise for now. Yeah, until you get more advanced about trading and you'll get more confident Don't take another dollar trade. Yeah, unless you are break even or at least on at least one of your open trades meaning that if you're if you've got a Floating or an open trade and basically You're you haven't got yourself to any kind of break even or profitability on Either of these trades that are both open but if they lost then or if you've got if your stop loss got triggered and You know, you would end up losing the full amount. Let's say you risked up on a 1% on that one 1% on that one And you lost 2% If you've got if your stop losses got triggered on both of these pairs then just don't take the trade Let's say for example You enter into you know, you're in two positions But there's no way that you can lose for example on the dollar cat, right? Because maybe you know You've you've taken partial profits put yourself to break even though you're in a in a winning position on that currency pair Your risk is off the table. Yeah, no worries Lawrence. Take it easy Yeah, your risk is off the table, right? So you haven't got 1% in the market anymore. Yeah, you're now at profitability If this trade can lose you 1% then fine or whatever your risk amount is then fine Then you maybe you can if you want to then add another dollar position, right or a dollar currency So that you're not top-heavy, you know in the dollar just in case prices do go against you Yeah, so ensure that you're managing your risk to at the absolute maximum three only if one of these pairs You know, you're in a profitable break even position Let's go maximum of 0.5 per trade and that trade should be divided into two to three positions Ultimately, I would say probably just do 0.1 percent per position which would be Really a maximum of 0.3 percent But if you get a bit more advanced and get more comfortable and profitable Then you can do what I do which is basically just you know get heavier as You know your your free positions Get filled, right? I went over that earlier Only take trade setups you're interested in if it looks like the trade Set up template charts that with that are in basically the templates channel. Yeah, so again, I'll show you the templates channel If you're saying that, you know, you think that there's a stop on somewhere or CPR Trade set up somewhere writing your thinking whether whether it is or it isn't yeah And then you eat you message me at like two in the morning, but in your time zone It's like nine in the morning or whatever it is and you know that I'm sleeping potentially and you're thinking I really want to take this trade. Just look at the templates channel Yeah, does you does your setup look like anything in the templates channel if you're struggling and you can't see The template in your chart on your screen Do not take that trade because it's not an a1 trade setup Yeah, do not take that trade only take trades if they are If it looks like the trade setups that that that we take to trade, right be consistent with your time frames you look at Be consistent with the time frame. So you look to enter so if I think one of the one One of the big things that traders do is they bounce around time frames Yeah, how many of us or how many of you have bounced around from time frame to time frame to time frame? And from the five minutes to the one minute and five minutes of ten minutes of fifteen minutes to one hour to the four hour You have to try and establish trading I think personally should really kind of revolve around Your your life as far as if you have a job or you have children or when whether you're able to look at a Chart, you know a certain amount of time today That should dictate what you know the time frames that you should potentially trade There's no point in trying to be look at the 15 minute chart if You can't you know be around every 15 minutes to see what candlestick formation is, you know Forming to take a potential entry and have the time to take the actual trade entry right because taking It takes time to to to trade a position, right? You've got to calculate your lot size, etc depending on you know, your brokers or what Indicators you use risk management tools you use so it takes time Right and what you don't want to be is flustered in the trade You know, I mean trying to do this and then you know your you've got you know a hundred and one things to do You know, I mean it doesn't make any sense so if You can answer if you can afford to take, you know The four hour charts Or the six hour or the eight hour order wherever it is like trade those time frames be consistent Don't start going down to time frames just because you can get a bit better risk reward Um, but remember that because you can get a better risk reward doesn't mean that the lower the time the lower time frames are More reliable because ultimately how much supply or demand do you want to see? Before you are confident in that trade a one hour time frame Just tells you that there was one hours What what one hour's worth of supply of demand? Was in that was in that time frame, right? Four hours is going to be more reliable than one hour You know a daily pin bar is not the same as a as a five minute pin bar It doesn't give you the same information. It might be the same information But it's not giving you the same information not by a long shot. So, you know Be consistent in the time frames And also be consistent with with your entry triggers meaning that Um, I'm not saying that you if you trade candlesticks and the candlesticks that you can't do pending orders, for example Or vice versa, of course you can you can mix it up, but just be more consistent with one than the other Yeah, otherwise you're going to end up just confusing yourself and convincing yourself that um, you know the trade that you lost was because you entered into Um, a pending order rather than waiting for a candlestick or because you know You could have got a better entry using a pending order rather than waiting for the candlestick entry, right? They both have their pros and cons both have their pros and cons and you have to be comfortable With those pros and cons, right? There's going to be times where someone who took a pending order Got a great entry got a great exit Yeah, and they won the trade there's going to be times where I wait for a candlestick and I get you know, maybe You know a later entry and then because of where I placed my stop-loss I might even lose that trade, right? None of us are going to enter into the exact same You know positions at the exact same time when the exact same time frames All the time and it's remember it's not about the entries, right? The entry is not the reason why your trade Your trading over the long term is going to work out has nothing to do with it the retail space They get so obsessed with entries, you know, that's the number one question. I get I get asked I need to know how to answer It's like that's not the reason like picking a great level picking the right fundamentals Understanding where you are from a value perspective all of that comes first the entry is just then you know what? I've spotted this zone. This is the CPR. This is where the stop hunt is This is where I'm anticipating it. Do I see this setup? Yep. Boom. Take it. Do I see the entry trigger? Yep, take it. That's all it is If you don't see the entry trigger, then you know take it That's it I'll be consistent number eight Is have predetermined profit targets and I think I spoke about this. I think it was a dr. Ninja That was asking about it's on the pound on the pound dollar We were talking about that. I made a video earlier. I think yesterday so I said earlier this week, but I made it yesterday regarding The the pound and potentially where to take, you know, certain profits but ultimately You want to look to take profits partial or full? Yeah or full profits just before obvious price rejection areas the reason why I say that is because You want to you know avoid? What's known as a crowded exit? Yeah, so we know for example, let's say I'm going to draw out like, you know the pound right what happened with the pound All right, so the pound right now is there. I think there might be something like that, right? I think there's a level there now I think Dr. Ninja ended ended somewhere up here. I don't know where he stopped us was but he's got some good risk reward before you get down to in around a 50% level, but what What ultimately you want to do is If you know that this area here You know is is a level of support and resistance Try and take profit maybe just before you get there Right and just before again is a is a subjective term I can't tell you whether it's like five pips or 10 pips or 20 pips no idea But in and around that area, right is where you want to look potential is is one way to look For to take profits, right because you understand that that level's been traded right That level's been traded several times Then it's probably going to be an area where prices are going to react to yeah, so that's you know just one You know profit target Set up I guess I say set up but more of a profit target Oh a profit target that you can do right or or look towards It's a major, you know obvious price rejection areas a major supply and demand zones For example that worked in the past and support and resistance levels round numbers is a good one as well in conjunction with you know support and resistance or supply and demand zones Or what we use which is our take profit tool fib tool which is again 50 or 80 percent of the range again just just understanding, you know, if you watch that video I kind of explain it but 80 percent of the range you really want to start to look potentially because prices There's going to be people trying to get out right who nobody wants to It will say nobody but you know, you might be left holding the bag if you've Gone short here and then you're waiting for the absolute low prices may never reach that low Yeah, and lots trades might be exiting in and around that area As well as member other traders looking to buy in that zone yeah, so The closer we get to wherever this is a bargain area or take profit area or expensive Prices may never reach there and like I said, you don't want to be the last person holding the bag You want to be the only be the one that says oh, you know I'm going to hold for this and then all of a sudden prices start to retrace back and then reverse on you And you could have taken profit somewhere around here So me generally I would say the 80 percent area is is is a definitely a profit target And you can always leave a small position on a partial position Take 80 percent off 90 percent of whatever it is and leave a small position just in case Prices do continue to go to the downside, right? If you want to you don't have to it's up to you Ultimately, that's you know, um, where you want to look for some potential profit targets, but There's a mixture I guess of of those but Kind of predetermined right before you get into the trade Where it is that you want to take profit rather than just entering a trade And then saying oh where where where should I take profits after you're already in it? It should really be planned out You know in advance so that you're not being potentially subjective and you can kind of stick to some rules, you know I mean um, and nine only take trades Uh that have at least a better than a one-to-one risk reward ratio And I see and I said c number eight and the reason why I say c number eight is because And I mentioned it earlier today If you have if you if you're if you have an area, right? Let's say for example, I don't know you have And let's say that's an area that you want to look for Sorry, this is an area where you want to look for um A trade, right? This area right here now If for example, you get a candlestick Nice, you know candlestick here. They know some sort of pin bar and this is your risk Now If this is the most expensive area Is your reward worth the risk? That's the risk. That's the reward Is that worth it? If it's not a one-to-one or more than a one-to-one and even if it's a one-to-one I don't like one-to-one trades not so I don't take really one-to-one trades. Yeah For me, it's got to be better than a one-to-one trade for me It's got to be at least a two-to-one or two-to-one reward risk ratio, but um At an absolute minimum, but the point being is that wherever you place your risk And what your reward to the upside is That's an area of rejection. It's been rejected several times in the past. Yeah Chances are it may get rejected there and even if it doesn't cool, but the point is is that you want to um Understand where traders are potentially taking profit where you know, there's going to be lots of liquidity around here and um Whether you've got lots of upside potential and also as well it goes back to number one because again if this for example prices have been trending you don't want to look for trades Around expensive areas because highs are expensive areas, right? You want to maybe wait for a bit more of a pull back down to Better demand zone around there and that will give you for example better. Oh might happen there Sorry guys Oh, there we go. Yeah, that might give you Better risk reward, right? There's your risk And then maybe that's your reward. Yeah, so again it comes back to location and um, you know your your your risk reward and what you're Um, what you're willing to take but again, you have to establish your profit targets first before you can even Think about, you know, where your risk reward or measuring your risk reward. And finally this is just I guess not necessarily a rule but more a more of a um Uh, I guess an understanding of how the pros and cons of You know Placing your stop losses aware to place your stop loss, right? So tight stop losses represent better risk reward potential as we know as to the allure of going down to five minute time frames and getting, you know Having, you know, 10 pip trades and potentially making 100 pip to the upside, right? But stops are more likely to be triggered as we know because um, of the you know, the nature of uh, of of short term time frames that, you know, algos, etc All right Whereas wider stops Yeah, uh, stop losses won't give you as good risk reward as tight stops, of course But stops are less likely to be triggered in comparison to tight stops The thing is there is no right or wrong. Yeah, there is no best or worst. Yeah You have to understand it's like It's it's you have to understand the the upsides and the downsides to To trading there's always a trade-off in trading. Yeah, if there wasn't a trade-off Then that would be a massive edge, right? We pretty much just again Put everything we had into those trades And then we'd be, you know, trillionaires if there was no downsides There's always going to be a downside to the trades because this is a probabilistic gain We just need the probabilities on our side But there's no right or wrong only pros and cons when it comes to tight stop losses And you know wider stop losses I say this to to traders that I don't mind having a 10 15 pip stop 20 pip stop, right? Some traders will say Well, I want a wider stop fine I'm prepared to enter a trade multiple times if I lose on the first trade in the second trade in the third trade I understand the downside to having a tighter stop. Yeah But some people just don't maybe might not want to you know, enter two three four five times on the trade Right, and if that's the case then just have a wider stop But you have to understand the downside to the wider stop, which is basically you might get stopped up less But you're gonna have not as good risk reward Yeah, so so That's just what it is Yeah, there's no way around it and as long as you understand these things I'm trying to think of anything else But I think if you understand these things and just apply this to your trading to Our trading and in whatever you do. I think this should be a great foundation You know, I mean, it should be a really good foundation to all the strategies that we do take cpr Stop hunts, you know daily supply and demand