 Good morning traders and welcome to the last day of the bookmap pro trader webinar series on mastering trade management Today we have Charles goff Yeah, today we have Charles goff From pirate traders of Charles streams with us every Monday at 9 a.m He is a volume profile trader looking at the bigger picture Understanding the market structure of the structure via the the Volume profile and market profile and then looking at bookmap To guide him in the direction that he feels The market is dictating so looking at the order flow So if you guys don't know who Charles is Yeah, he's been using S&P futures traders specializing in the intraday two-way auction process of the S&P 500 And is the founder of pirate traders a community for professional traders Here's his links. We will copy these and put them into the chat for you If you want to reach out to Charles, you've got his website his YouTube and his Twitter handle here as well Go through the risk disclosures and then we will turn it over to Charles General disclosure all bookmap limited materials information and presentations are for educational purposes only and should not be considered specific investment advice Nor recommendations the risk disclosure trading futures equities and digital currencies Involve substantial risk of loss and is not suitable for all investors past performance is not necessarily indicative of future results Charles can't wait to hear it about your trade management. Take it away. All right. Here I go taking it away Already on the wrong side. Are you guys gonna give me one second to get set up here? How do I start this slide show? Oh, man, I had to set up before it now. It's not working All right, well, that's disappointing. Okay, the button to the the right of it there Present there we go. Okay. There you go. We're in baby. Sorry about the delay guys. Thank you for sticking with me I promise this is gonna be an awesome experience You're gonna learn a lot and you're gonna be glad you stuck around. Okay today I'm gonna be focused on teaching risk management and trade execution. Okay, what we call trade management I Teach all of this in a workshop that I call mastery of markets in mind If you're interested in joining the workshop now, we can't see that You know, if you're interested in in that workshop, I don't know what's going on here You're welcome to sign up markets in mind calm 10% off with the promo code book map. I am gonna have to just do this Kind of sloppy. Okay, we'll do it like this Cuz I can see on the screen that that's getting partially blocked out. All right So basically what I'm gonna talk about today is risk management and trade execution. Okay I'm only gonna be able to scratch the surface of What you need to understand to truly be a professional trader. So that's the reason I'm promoting the workshop I got one coming up in a couple of weeks If you're interested in checking it out, we'd love to have you there and that will go fully in depth on all of these things But if you are new to trading odds are what you're about to see will be very informative and insightful for you Because it's probably things you never thought about before Stanley Druckenmiller it is not whether you are right or wrong. That's important It's how much money you make when you are right and how much money you lose when you are wrong That is the key to trading Okay So the market is random You need to understand that the market is random. It will always be random There is no other thing the market can be but random So the the analogy that I often use is like imagine the market went up five points at 2 p.m. Every day just like every day for whatever reason it went up five points Somebody would eventually notice that that person would try to go long at 159 p.m. With a target five points ahead and then more people would see it and They would start to go long and then some of them would try to go long a little bit earlier, right? The market would start going up at 159 So then people would start going long at 158 and then people would start going long at 157 And so all the sudden it wouldn't be changing at 2 p.m. Anymore Also, some people would be trying to take profits quicker They would be thinking I don't want to wait for the full five-point move So I'm gonna take profits at two points And so then there'd all the sudden be sellers in the middle of that move going up So the volatility of the move would change and then inevitably at some point Somebody would come along who's a bigger trader who would say if I know all these traders are going long at You know 159 p.m. What I'm gonna do is I'm gonna slowly accumulate a short position As they're going long and then right when the clock strikes, too I'm gonna pound the market with sell orders and just wipe them all out, right? So there is nothing that could ever possibly happen forever in the market consistently. There will always be randomness Things will always be changing. That is the nature of the market. That's what makes the market the market. Okay, so Once you accept that the market is random You realize that the ultimate goal of a trading strategy is to allow a trader to put their faith in the strategy as Opposed to the random outcomes of market behavior Thinking in probabilities, which is the key to success as a trader is Understanding that there are two forces that influence how a trade turns out the quality of our decisions which is our strategy and luck, okay Once we can distinguish between the two We can focus on improving the quality of our strategy, which will lead to improved outcomes So you can never control the randomness of the market But you can't control the decisions that you make and how you interact with the market And as you do a better and better job of making those decisions, you can get better and better results from your trading So the first concept we're going to talk about today is risk management The role of risk management in your strategy is to protect you from losses The truth is finding success as a trader is a long and arduous process that requires the ability to constantly fail But still be able to stay in the game long enough to learn from those failures and do better The role of risk management is not to make you rich It's to keep you from losing your money so that you can stay in the game Okay, if you are thinking that you're gonna find some way to trade where you can get rich quick You can do this thing or that thing and all of a sudden you're gonna make a fortune You have come to the wrong place. I can't teach you how to do that I can't teach you how to get rich quick in the market. What I can teach you how to do The same way that I would teach you if I was gonna teach you how to speak a foreign language how to You know play a musical instrument how to operate heavy machinery Whatever the case may be I can teach you to gain experience with practice the key to be able To stay in the game long enough to put in the years you have to put in to get good enough at this business that you Can consistently make money requires that you don't blow up your account It requires that you stay in the game and that is what risk management is for I Can tell you right now I have been teaching people this strategy for about a year and a half now and I've not had a single person say to me It doesn't work now There are some people that don't have the discipline to follow the rules and so it might not work for them But this absolutely will work if you can force yourself to implement it So the first thing to understand is there is a difference between thinking like a gambler and thinking like a casino The way a gambler thinks is they are chasing an experience They are chasing a feeling they want to win. They want to feel good They want to feel like a winner and feel successful. And so that is what they are focused on that is what they are chasing They are easily distracted all it takes is bright lights and Flashing numbers and seeing other people around them making money and winning in their bets And it will get people to just give money to the casino to just hand it over Again and again and again Why because they are chasing that experience when they see those flashing lights They feel like they're missing their their opportunity when they see the other people around them winning They feel like they're missing their opportunity But the casino doesn't play that game The casino isn't fooled by flashy things a person can walk into a casino and put down a huge sum of money And the casino won't care the casino has a system that guarantees as long as people keep sitting at those tables and Playing those games are sitting at those slot machines and putting their quarter in the machine the casino will win they have a probability of success and so as traders we have to flip our Perspective we have to stop trying to be the gambler who's chasing the feeling of winning and we have to become the casino That has a consistent profitable edge that we just execute that edge So as an example of this I'm gonna use roulette Okay, if you don't understand the game of roulette they spin the ball on this wheel It lands in one of these little spots and there's a bunch of different ways you can bet You can walk in and you can just put a bet on red or black Okay, you can just straight up say I I feel like I have a 50 50 chance It's gonna land in red or black and that's the bet I want to take or you can walk in and you can put your money on just one Individual number you can say, you know five is my lucky number. I'm gonna put all my coins on five. Okay Now most people will do that most people will will try to bet on individual numbers Why because that is the one with the highest payout If you put your money on a particular number and it happens to land on that number You get 35 times whatever amount of money you put down. Oh my god. That's amazing Getting rich quick Right, so most people will chase that that is what they will do with their money But the casino loves that they do that because they only have a two and a half percent chance of winning Right, that's the the the probabilities that they're gonna make it if they put their money on a number is only two percent So if 97% of the time those people lose money The bank I mean the casino can easily afford to pay out 35 to 1 odds Because they're gonna make more money as long as people keep walking up and putting that money on the table But then let's talk about just the idea of putting your money on black or red, right? That seems like it gives you a 50 50 chance So why would the casino take that risk if they want a consistent edge? Well, there's a trick and the trick is that one green number on the wheel One of those numbers the zero number is green. It is not red or black Which means there is a statistical probability that every now and again over hundreds and hundreds and hundreds of spins every day Both red and black will lose their money and the casino gets to keep everything So between, you know, one person putting their money on red on a particular bet and one person putting their money on black The casino is paying out one side. They're keeping the money from the other side and Every now and again, they get to win all the money from both sides that guarantees them that it is a good system So this is how casinos think about betting. They don't give a shit How much money you walk in and put down on the table? They don't care how you want to choose to bet because they have set it up Using probabilities so that no matter what you do as long as the next guy shows up and does it and the next guy shows up And does it and the next guy shows up and does it? They will win in the end. Not only that they want some people to win They want some people to walk up and put their money down on black and win because then that affects the Psychology of everyone else in the room who suddenly feels like they got to put their money down And that's just more money That the casino gets to make okay, so we want to become the casino We want to think about our trades not chasing the experience chasing the probabilities the first thing that you have to understand is The effect that loss has on your trading Losing money in the market is significantly worse than making money is good Okay, because of compounding when you're winning the compounding works in your favor So you don't really need to worry about winning you can just let that compound and make your money and feel good But if you're losing it's compounding against you Which makes it harder for you to dig yourself out of that hole and win So just for a very simple explanation of this imagine you started with a hundred dollars You took a trade and you won ten percent return you now have a hundred and ten dollars. Okay great Same trade, but you lose ten percent. You now have ninety dollars So from a hundred dollars win or lose you get ten dollars, right? But now let's say on the next trade you start with a hundred and ten you win ten percent Well now you get a hundred and twenty one dollars You actually get paid eleven dollars for that second ten percent win But if you start with ninety dollars and you get a ten percent return you only get ninety nine dollars So the first trade you lost ten percent you lost ten dollars the second trade you won ten percent But you only got nine dollars because you were starting with a smaller amount So if you look at this chart over here on the right, this will visually show you how extreme this becomes The more losses that you take on if you take on a five percent loss That's no big deal. You just got to make five percent to get your money back if you take on a ten percent loss That's no big deal. You just got to get eleven percent return to get your money back But if you take on a twenty percent loss, you got to have a twenty five percent return a thirty percent loss You need a forty three percent return if you lose forty percent of your account size from trading You need a sixty seven percent return just to get back to zero Just to get back to where you started from and if you and I hope this never happens any of you But if you lose fifty percent of your risk capital if you lose half the money that you have to trade with you have to double your money Just to get back to zero That is incredibly difficult to do doubling your money In and of itself is a difficult thing to do but doubling it after taking on massive losses Doubling it not really making any returns just digging your way out of a hole is incredibly difficult to do So if you start losing fifty sixty seventy percent of your account size, you're basically toast You're probably never going to get to profitability The only option you have at that point is to fund the account again with fresh money and Keep trying and you can only do that so many times before psychologically it messes you up So if you take anything away from this presentation, I'm doing here today I hope you take away The idea that you must focus on protecting yourself from losses Rather than focusing on making money. Don't worry about the gains. The gains will take care of themselves Focus on protecting your capital Stay in the game long enough and you'll win Stay in the game long enough and you'll get rich But you got to protect your capital to stay in the game Okay, so we'll talk about risk reward and win win rate risk versus reward is how much money You will lose if you're wrong compared to how much money you will win if you're right So if you're risking one dollar to make two dollars, it is a one-to-two risk reward Your win rate is just simply how often you win with each individual setup or each individual strategy that you trade So it's important that you don't try to think about this as an overarching concept of all the trades you take Because each setup will have its own success rate If you take trades for a look above and fail of a previous day's high that will have a different win rate than gap-filled trades or trades that are Rotational trades when the market is rotating where you're taking reversion of the mean back to the POC will have a very different win rate Then trend trades where you're going with the momentum and you're trading with the trend So you need to look at each individual setup and you need to figure out how often do I win with this particular trade This particular style of setup that I'm trading The best way to do that when you're first starting out is to trade with a paper account Not back test but actually trade in real time with a paper account test it out so if you want a gap trade strategy and you come up with a way to trade a gap and You're looking for gap fills and that's your target and you have your system you start trading with a paper account The next 20 days that the market opens with a gap you open your paper account You take that trade in your paper account You follow the same systems the same rules all 20 times at the end of those 20 trades You will know what your win rate is for gap fill trades. Okay? Once you know your win rate that gives you a lot of insights in understanding What to expect from trading it so what this chart right here is showing us is the number of losing trades in a row the drawdowns that you are likely to get in Accordance with the percentage of your win rate Okay, so if you win Let's say you've got a setup that wins 50% of the time There is a 100% certainty you're gonna have two losing trades in a row 99% certainty you're gonna have three losing trades. There's a 76% certainty you're gonna have five losing trades in a row There's a 30% certainty you're gonna have seven losing trades in a row Okay, so you have to go into taking gap trades Knowing that you may have seven of them in a row. You may even have eight. You may even have nine of them in a row There's a 7% chance you might have nine losing trades in a row And so then you have to ask yourself Okay, well if there's a potential that taking this particular trade I could end up having nine of these that lose in a row Then you need to start thinking about how much loss will that be to your account? If you lost on this setup nine times in a row, how much of your risk capital would you lose? Would you lose 50% and that brings us to the next thing Which is position sizing Position sizing is the key to success in trading. So if you risk 1% per trade Adjusted for account size. So as your account size is going up and down It's always 1% of whatever risk capital you have and you take about it would take about 120 losing trades in a row to completely blow up your account. So I know what you're thinking I know all of you are thinking right now Charles. I Can't trade only risking 1% of my account size because then my rewards are gonna be so tiny like I'm barely gonna make any money But you can be wrong a hundred times and stay in the game So when you look at this chart you can see You know if I've got a 60% win rate on a particular setup I know there's a 16% chance I might have six losing trades in a row and so I would say to myself if I had six losing trades in a row and I was only Risking 1% I'd only lose 6% of my account But if I was risking 3% I'd lose 16% of my account if I was risking 5% I'd lose 26% of my account Okay, so you got to understand if you're gonna take this trade What are you really risking because the market is random you don't know if this trade is gonna work or not and you never will So you got to understand what you have at risk so the way I think about figuring this out is First I have to figure out where I want to actually enter my trades so for every trade I'm gonna enter I need to have a Area where I want to enter the trade Right then I have to have an area where I want to take profits if the trade works Which is my target and I want to have to have a place where I'm gonna get out of the trade if it doesn't work Which is my stop-loss now? I do not choose my targets or my stop-losses Based on size. There are so many traders who just every trade they take they risk four points or something like that That's ridiculous to me There are some days where you can take a trade You can only risk two points and there are some days where you got a risk 20 points It's whatever volatility the market is giving you that day It's wherever those support and resistance levels are where the market is likely to bounce between That's how I choose where to put my entry where to put my stop and where to put my take profit once I have decided that I Know where I want to put my stop my take profit and my entry then I figure out how many contracts Am I gonna trade and it is based on the amount of risk. It's based on the distance between the entry and the stop So here on this chart you are here on this image You could see if I'm entering here my stop is 10 points below my take profit is 40 points above That means I'm risking 10 points if I have an account size of $20,000 And I only want to risk 2% per trade That means I don't ever want to lose more than $400 in any one trade That means to enter this trade with 2% at risk. I want to be entering with eight MES contracts Okay, but now let's say instead. I was gonna get in with a much tighter stop. Let's say I was only gonna risk three points Well, then I would go to ES contracts if I was only risking three points because either way Both trades the trade with a three point stop or the trade with a ten point stop I am always risking $400. I am always risking 2% of my account size Well, why does that matter? Okay, this is just a chart to show you some some ideas of you know different portfolio sizes if you got 50,000 and You're risking, you know five points. You're you're trading for ES contracts, but if you got 10,000 It's eight MES if you got 250,000. It's a 20 ES contracts. Okay So this is the way traders think people that are new to trading They think the way trading will work when you're profitable is it'll be like win win win win win lose Win win win win win lose win win win win win lose win win win, but that's not what trading is like That is not realistically what trading is like. You won't be right most of the time What it will actually be more like is When lose lose win lose win lose lose win lose win win win lose win lose win lose lose This is what trading is really like. It's not every trade always works all the time. The market is random But that right there is an example of a 50% win rate If you Took 20 trades. That's 20 trades with a 50% win rate Okay, and you risk 2% in every trade and Your risk versus reward. So your your reward is double what you're risking every time You would have a 20% return over that series of trades over that 20 trades. So how many of you watching this right now? Take more than 20 trades a month Do you get a return on your account size more than 20% if not? You might say to yourself, what if I only took one trade a day One trade for 20 days in a row. Could I be right 50% of the time? Right could I at least half the time be right if I can have all day to look for the perfect opportunity to enter a trade I don't have to force my way into anything I can just sit back relax every day and wait for that one Perfect entry to come to me if I did that Could I be right? Half the time 50% of the time well if you could and you just make sure that you never risk more than 2% of your account and That you always have double the reward of however much you risk you will get a 20% return in a month That means in six months you can double your account size Taking one trade a day So I'm not telling you to only take one trade a day, but I'm telling you to think about this Don't just gamble don't just push buttons because there's flashy lights And it's exciting and you're on Twitter and other people are winning money and you want to win money too Be the casino have a system have a plan something that mathematically guarantees as long as you follow those rules You will have a successful strategy a very important concept to understand in trading is that losses are not a bad thing If you know your win rate if you know a setup that you trade has a 50% or a 60% or an 80% win rate When you take on a loss that just means you're one trade closer to your next winner So you can use this same concept to help you take the pain of the losing trades Let's say you've got a 50% win rate and you've just lost five trades in a row with this particular setup There is now a Significantly smaller chance you're gonna have a losing trade on the next one If you do have a losing trade on the next one a very significantly smaller chance the next one will be a loser and So on and so forth if you happen to have nine losing trades in a row It is very small chance your next one's gonna be a loser So by understanding your win rate by understanding this the success that you have with this setup You can keep taking those trades Even when they're not working because you know if this one didn't work and the next one doesn't work The next one will and if the next one doesn't work the next one definitely will if that one doesn't work The next one for sure definitely will and you keep following your rules and you keep following your system Because you're the casino you don't give a shit about what happens with this one particular trade You care about all the trades together Combined all the trades you do in a day in a week in a month in a year Combined that's where your success exists and if as you go through this process of losing trades If you're controlling the amount that you're risking to only 2% You can lose five in a row and your count is only down 10% Right you could lose Seven in a row and you're only down 14% you could lose nine times in a row and you're only down 18% and We know we can dig our way out of an 18% loss We can't dig our way out of a 50% loss, but we can dig our way out of an 18% loss Are you thinking like this? Are you thinking like a casino or are you gambling? Next thing I want to talk about is what's called our factor or sometimes it's called the r multiple It's just simply a way to quickly Calculate your risk so you take the total gains You could be measuring that in dollars in ticks in points Whatever you want and you divide it by the total amount that is risk So if you're risking one point to make four points It's a r factor of four if you're risking one point to make two points It's an r factor of two if you're risking one point to make one point five Points of profit. It's a one point five R factor, okay So now this is this is the real eye-opener folks If you've been sleeping so far, it's time to pay attention because this is where the shit gets real a Monte Carlo simulation if you don't know what a Monte Carlo simulation is It's basically a computer program. You feed it data and it runs every possible outcome based on that data Anything that could happen based on whatever criteria you give it. It runs through that Okay, so they took a Monte Carlo simulation and they told it to start with a ten thousand dollar account To have a 40% win rate to take 60 trades per month. So that's like two to three trades a day and To do it for two years So for two years straight if you take 60 trades per month with a 40% win rate and you all your trades have a risk factor of one point five Meaning you're risking one point to make one point five points to make a point and a half your worst case scenario is You start off with ten thousand and after two years you've got two thousand dollars Your average scenario you're most likely you're gonna have six thousand dollars Your best case scenario is that you will have fourteen thousand dollars Imagine trading for two years With a 40% win rate and in the end you only made four grand in profit All right, that's what happens if you're risking one point to make one point five points All right, but now let's just slightly adjust that risk factor Let's say for each point that you risk your reward is two points. So you've got a risk factor of two Right. Well, then your worst case scenario all the same stats start with ten grand 40% win rate 60 trades per month over two years By just always having a larger reward than you're risking your worst case scenario is 21,000 your worst case scenario is you double your money. The average scenario is $80,000. Okay, so you've 8x'd your money in two years The best case scenario is 260,000 okay, so I don't even know how much that is but ten thousand to 260,000 in two years would feel pretty pretty pretty good and you can do it with a 40% win rate You can do it being right less than half the time But your reward must always be double what you're risking So these are the things that can make you trade like a casino rather than like a gambler Every trade you're entering you're not entering because of a motion. You're not like oh my god I got to get long. I got to get short. Oh look what's happening. Oh flashy numbers The market's moving you have a plan you have a specific place You're gonna enter a specific place you're gonna put your stop and a specific place You're gonna take profit that take profit target is always at least double what what the distance is to the stop and your position Size is never more than 2% of your account I'm telling you if you just implement those rules hard as it might be because you got to be disciplined You got to ignore your emotions. You got to ignore your instincts and follow your rules But if you do and you can be right 40% of the time You'll make a living in this business and I tell you you can be right 40% of the time All it takes is a few years of trading a few years of experience and you'll be able to be right 40% of the time I swear Managing your risk is managing emotions This is one of my favorite quotes from the movie the dark night where the Joker says Nobody panics when things go according to plan even if the plan is horrifying, right? You know murder is a horrifying thing if you found out that somebody got killed you would be horrified by that But if that person's on death row and a judge has ordered that they be killed for for some crime that they committed Well, then people will come out in the town square and watch the hanging. They'll turn it into a show So suddenly this thing that would normally be so horrified somebody being killed is not as horrifying if it's part of a plan So if you have a plan for taking risk if you know that your win rate Might set you up for a series of losses Your win rate might mean you have three or four or five or six losses in a row If you know that ahead of time you don't need to get so emotional when you have a loss Because this is all just part of the plan And that's what's so important I'm taking way too long. I'm going way too slow. All right. I'm gonna speed it up here guys I promise so I'm not gonna teach you my specific trade setups today If you're interested in learning the exact setups that I use for entering trades I highly recommend you check out the workshop markets and mine calm. Okay, I'm gonna be teaching one next month I do them a couple times a year I probably won't do another one until the fall and of course you can use that promo code book map to sign up The reason I can't teach you my setups is because there's so much more in-depth knowledge I'd have to share with you before it would even make sense But I do want to walk you through how I manage those trades. Okay Bull markets are born on pessimism grown on skepticism mature on optimism and die on euphoria Maximum pessimism is the best time to buy and maximum optimism is the best time to sell Simply said my strategy for making money in the market on the time frame that I operate which is the day time frame is to buy fear and Sell greed. I use the emotions of the market To understand what's happening and look for opportunities where people are getting themselves overly long or Overly short and I take the opposite side of that trade So if I go long Because I think the market is getting itself overly short I then wait until I see the market is getting itself overly long and I take profits on that trade So I buy the fear and I sell the greed I'm sure you've all seen this chart before this just shows sort of a classic Market bubble. This is generally referring to things over a much longer term basis over a daily monthly yearly type of basis But it happens again and again in every asset class on planet earth like clockwork always It is always the same way and the basic concept is in the beginning You've got your smart money. You've got your people that know something that no one else knows and so they start putting their money into You know an asset Then it starts to go up because those people are putting their money in and then the Institutional investors start to find out about it, right? The people with very very deep pockets that only take trades when they have excellent entries for it They start to get in and that market continues to go higher There'll be a little dip a little pullback to try to squeeze out any of those early adopters Any of those early investors that got in they'll try to give them a little squeeze Once they've squeezed anyone that's gonna freak out and panic out of their trade It turns around whip saw style and starts going up again Well, then it starts to catch the attention of the media, right? People start talking about it and it just goes up and up and up and all of a sudden you get to the Enthusiasm stage where everyone's telling their friend. Oh guess how much money I'm making off of such and such a thing And then it's like pandemonium people just are buying and buying and buying then you get greed where people are like taking Ridiculous amounts of risk that they should not be taking because they're so convinced that this thing is gonna keep going higher Then you get delusion where people start to think it can't go down. It's gonna go straight to the moon It's never ever gonna come down again Then you get to a maximum point a point where things are so absurd They are so overpriced that there's just no one left that's willing to buy this thing. They've convinced Every person on planet Earth that's gonna buy this particular asset to buy it And there's no one left then the market starts to pull back Then there is always a set of laggards people who were not willing to buy this asset on the way up They will take one final attempt at buying right here Once that market bounces, which they call a dead cat bounce those early investors Right the smart money the institutional investors They recognize that is their opportunity to get out as soon as they start to get out Everyone starts to panic all the buyers from the whole way up Starts to panic and freak out and then the market drops like a brick it drops so far down that it gets so Ridiculously cheap that all of a sudden smart money Starts to become interested in it again, and then it just does it over and over again So it keeps and it does it again And then it comes down and then it does it again and it comes down and does it again And it just keeps doing that As long as that asset is still traded it is an emotional cycle that people go through We call this the adoption curve All right, so any new asset any new thing you can name anything it has an adoption curve There's just a thing about human behavior Everyone is not going to change their mind at the same time There are some people that can pick up on something very quickly Some people that have to wait until the rest of everyone else is doing it So for an example, let's say like Apple invents the iPhone, right? Your innovators they're out there at the Apple store day one when Apple launches the first iPhone, right? Then you got your early adopters. They're buying, you know iPhone 2 iPhone 3, you know, they're getting out there and they're buying those then you got your early majority Now this is when it starts to feel like almost everyone you know has an iPhone Or smartphone, you know what I mean? There's not to be Apple the brand, but everybody starts to have a smartphone Everybody's got the internet on their phone and then you got the late majority the people that are just like Everyone I know has this thing. I've got to buy it I just have to have it and then you've got the laggards the laggards are the people that will absolutely refuse to buy a smartphone Until they literally can't buy a flip phone anymore Until they go to get their flip phone fixed at the store and they're like We don't even have the parts to fix this anymore because everyone has smartphones now then they buy a smartphone So any new thing that is going to be adopted by human beings always goes through this process There are the innovators the early adopters the early majority the late majority and the laggards What I do as I trade throughout the day is Intra day I keep up with where we are in this cycle When is it those early adopters getting in and when is it those laggards? I try to get in with the early adopters and take profits with the laggards. I will never be an innovator I will never buy the high-tech or by the low tick of the day or sell the high-tech of the day That's not how I trade. I Watch the market Come down. I notice where it's bottoming and starting to go up and I get in there I'm not the innovator I'm the early adopter and then I watch as the early majority start to step in and the late majority Starts to step in and then I see oh it's running out of steam and then I Take profits Okay, this is the way I trade. I trade the adoption curve What you must understand is that price is just an advertising mechanism It doesn't mean anything just because the market goes up or down doesn't mean it's going to keep going up or down It's all about getting people to bid So think about an art auction, which is a one-way auction the auctioneer brings out the painting He talks about how great it is. He says we're going to start the bidding at $1,000 $1,000 do have $1,000 and a bunch of hands go up in the air Lots of volume lots of liquidity lots of people are willing to pay $1,000 for that painting So he lifts the bid do I have 1100 1100 do I have 1200 and as he picks that price up higher and higher and higher Fewer and fewer hands are going up in the air Right fewer and fewer hands the higher the bidding go. I have 1500 do I have 16 16 to have 17 17 to have 18 And then he starts to get to a point where it's down to just two people left Only two people left are willing to bid up at $2,000. I got $2,000 about 2100 2100 2100 Nope, no takers boom sold for 2000 and so Then that person that one final person that was willing to pay 2000 they get the painting Well, the stock market works exactly the same way the difference is there's not just one share of a stock There's unlimited number of shares or unlimited number of futures contracts, right? So it's as if the auctioneer sells the painting sold for 2000 and then immediately brings out another identical painting right, but now We've established there was only one person willing to pay 2000 Right, that's it. There was only one person willing to pay. So he's got to lower the bid back down to 1900 Well, now that person remember there was two people bidding at 1900 before Maybe they changed their mind Maybe they realize if all that painting is worth is 2000 They don't want to pay 1900 anymore And so the bid has to keep coming down until somebody's willing to buy it That is what we call the two-way auction process That is my key for entering trades Recognize where those changes are happening where the volume is getting thinner And there are fewer and fewer people willing to pay this price And recognizing when that comes to an end The difference between a one-way auction and a two-way auction Is that in a two-way auction buyers are forced into becoming sellers And sellers are forced into becoming buyers if you get along the market If you ever want to get your money back You have to sell your share or your futures contract, right? You have to go short You have to sell to get out of that trade And it's the same way if you go short if you enter a position short You have to go long to get out of that trade So if the market has pushed its way all the way up to a level where there's no one left to go long Not only is there no one left to buy up there But a lot of those buyers from earlier on are about to become sellers They're about to start pushing the market down That's the two-way auction process. That's where the edge exists We talk about this in form of balance and excess So balance is when the the market is range bound and this could be on any time frame You could be trading this second by second minute by minute and recognizing little tiny balance areas that break out You could be doing it over an hourly time frame overly a daily time frame monthly. It doesn't matter This exact same process is continually happening all the time Balance is two-sided trade Then the market breaks out of that balance. It creates excess And that excess leads to momentum the market heading in a certain direction So think about it like this The market is in a balance area. It's going sideways. It breaks out above It comes back down and tests it and then it just goes and goes and goes and goes So that's balance And that's momentum Right That's rotation and that's a trend So then it trends as far as it can go And it runs out of steam and guess what it starts to do it then starts to balance again It then starts to go sideways again So You know, if we look at the daily chart, we can see it You have balance in here and the market breaks and you get momentum A pullback, which is a version of balance and momentum you get more balance momentum balance momentum balance momentum Balance the fails pulls back in balance momentum and now once again balance Okay, so this is the process that is constantly happening Now it's a little tricky to read on the daily time frame like this because we're at all time highs and it's very volatile and blah blah But it is the same process again and again and again The market is either range bound or it has momentum and it's heading in a certain direction So I trade those two things differently I have a way that I trade when a market is in balance And I have a way that I trade when a market has momentum You must understand what time frame works best for you If you're a scalper, you're watching this process literally minute by minute Right, if you're a day trader, you're watching this process over a series of hours If you're a swing trader, you're watching this process over a series of days or weeks And if you're a long-term investor, you're watching this series over months and years And you have to operate on whatever time frame you're seeing So if the market is balancing on a daily time frame And you're a swing trader, you need to be looking for a version of the mean trades If you're a day trader, you might be trend trading one part of the day Reversion of the mean trading another part of the day If you're a scalper, you might be reversing the mean trend version of the mean trend Reversion of the mean trend. You might be doing all sorts of crazy stuff So you have to understand what time frame you want to operate on What time frame reading the market is the easiest for you And then you must trade on that time frame So how do we measure where these changes in the auction process take place? How do we know where the market might flip and reverse and start going the other way? Well, we use support and resistance levels A support level is where the buyers step in A resistance level is where the sellers step in When you poke into a support or resistance level And you reverse that is like a fight. That's like a test They're just poking it to see if it's going to hold And it might keep poking and it might keep poking And as long as it keeps holding Whoever's in charge stays in charge If you're poking into resistance and it keeps holding as resistance Those sellers are in charge If it breaks through that resistance It's like tug-of-war while it's poking When it breaks through it means those sellers have just let go of the rope And now the buyers are going to go flying Okay, so that's how I think about support and resistance Are the sellers still in control? Is it still holding? Are the buyers still in control? Or did the market just break? And now it's going to get movement to the other side So to define support and resistance I use volume, time, and building momentum For trading support and resistance I have to accept that there will be a lot of grind I have to monitor changes in tempo I have to look for continuation in the momentum of the ticks And I have to prepare both psychologically and within my strategy For fake breakouts and retests of support It is not uncommon for the market It's moving up, it pulls back down into a support area And then it comes down again And then it comes down again And it comes down again And then boom, it finally goes If I'm buying that support on the first test I must accept that it's going to keep coming back again and again I must even accept that it might come down And it might come down And then it might boop poke through and then head up So that needs to be part of both psychologically How I think about entering trades And in a technical, literal way How I enter my trades I must take that into account So as far as the levels that I watch for support and resistance And again, you're going to have to take the workshop If you don't know what these things are It's very complicated I have to explain it step by step But the things that I'm watching for To see what is support and resistance Is large nose of volume on the cumulative The multi-day volume profile Large nose of volume on the daily profile Large nose of volume on the 60 and 30 minute volume profile Previous days high and low Previous overnight high and low If the market is trending The previous TPO's high and low The half back of the daily profile And any untested base of single prints Or base of spike The half back of the 30 minute profile And then a balance area higher low On a longer time frame These are the areas where I'm looking for that change in market And I'm trying to understand who's in charge There is no one right way to approach the market Here I have an example of a market that is rotational It's going up and down and up and down Well, you could trade that reversion to the mean You could trade that by looking to get in Near the outer edges and take profits in the middle Or you could be more of a scalper and trade a short-term trend down And then trade a short-term trend up And then a short-term trend down and then a short-term trend up It doesn't matter There's no one right way to approach trading What matters is that you understand what the market is doing What matters is that you understand that the market is rotational Then you can figure out what way to trade that works best for you There's also different ways to think about taking profits You can have an expected move or you can monitor for continuation So here we have a market that is trending higher They broke out of the initial balance They had a gap down From the previous day that was unfilled Okay, they re-entered that gap and they started trending higher So you could go long in here because something has just changed We're no longer balancing where we've been balancing We're now breaking out of that balance So you could be an early buyer before the market makes the move But then you're saying to yourself, well, where do I take profits? Where do we get out of this trade? Well, one idea is you could just put your take profit order at that gap fill If the market has the momentum, it's pretty likely to fill the gap But it might fill the gap and then just keep going higher and higher into yesterday's range So you might say instead of taking profits at the gap fill I'm going to monitor for continuation Which means I'm going to just keep pulling my stop Each 30-minute time period up with price And wait for what we call cessation of the trend In this particular case, if you'd have taken profit at the gap fill You would have made about eight points more Yeah, about eight points more than if you waited for cessation But the next day that might have kept going for another 30 points to the upside So again, you just got to figure out what works for you Handling sweeps and stop runs Timing trades is very difficult These bot-driven markets are excellent at sweeping the order books in crucial locations to stop out shorter-term traders Any system with a hope of consistent profitability on an intraday timeframe Will have to include a strategy for dealing with these now common market behaviors So there's two ways to approach when the order book gets sweaped. What am I talking about? So let's say the market is is working its way higher You see some resistance above and you're thinking I want to short that resistance The market might push up into it Get to your resistance turn around and start heading back down Then come back up again and then go And break right through the resistance and then turn around and head lower from there It's a very very common thing It tests the resistance tests the resistance busts through and then reverses lower That is sweeping the order books What they're doing is they're stopping out All those sellers That sold the first resistance Right, they come back up. They get it again. They get more sellers Comes back up again. They get some more sellers and then whoosh They go take out those sellers take out those stops and then boom. They take the market lower So how do you handle that as an intraday trader? Since it is so common. Well, there's two different ways to approach it One you can be like a sniper The sniper means you wait and wait and wait for your entry You don't just simply put a limit order at support of resistance You watch when the market gets to that support of resistance. You wait to see what happens there If the market gets support or it gets resistance and it doesn't get swept You need to be able to enter into a trade like that because you cannot chase trades You don't want the market to push up into resistance turn around and start heading lower And then you try to short it down there. That is never a good good idea You have to be shoring it up in the resistance But If you're gonna wait You got to be a sniper. You got to be able to take that shot the second that it's in your crosshairs and not delay Or you can be more like rocky, right? You could be a disciplined hit taker So you can put your limit order in there with a very tight stop And if it comes up and it stops you out and then it comes back down You enter again with another tight stop and if it stops you out you enter again with another tight stop And you assume that whenever it gets that bigger break to the downside You'll make back more than you lost on the times you got stopped out Okay, and each trader just must figure out for themselves. What's right for them? sip of coffee Sorry guys, I know we're running long. It's been an hour. You stuck with me We're almost through I promise Okay, so managing trades Once you enter a trade so before you've entered you've chosen where you want to put your entry Where you want to put your stop where you want to put your take profit You've measured your risk. You know that your reward is at least double your risk You know that your position size is your only risking two percent of your account You put the orders in the book and boom you're filled. You're now in your trade There's two ways that you can approach handling that trade once you're in it The first is what's called set it and forget it. You've already put your stop You've already put your take profit and you just go with god at that point You let whatever is going to happen happen and that's all there is to it If it goes almost all the way to your take profit and turns around and stops you out, that's fine The other way that you could do it is you could adjust live trades So you could manage a trade once you're in it So for example, if you get in a trend trade and the market starts moving in your direction You might choose to put your stop above your entry So you can't lose money Even if it doesn't get to your take profit target and it comes back down and you get stopped out You still get a little bit of profits because you moved it above your entry Or for example, if you're in a trend trade and the market is working its way up And it's almost at your take profit level, but you think man, this thing could keep going We may have another 10 points from here. You can adjust your take profit at that point Once you're in the green you can adjust your take profit much higher Right that is adjusting trades live Again, I have found from trying to help students In the beginning You almost always need to be in the set it and forget it category If you want to be able to establish what works and what doesn't You've got to decide ahead of time before you're in the trade What levels you want? What is your stop? What is your take profit and just let them fill? Just deal with whatever emotions you're feeling Once you're in that trade ignore them and just let it get to either your stop or your take profit But as you gain skill as a trader, you are able to start adjusting trades live You're able to start using your intuition because you aren't affected by emotions as much To to improve your results If you do get in a trade and it doesn't quite make it to your take profit Or you do get in a trade and uh, it goes against you Okay Do not try to adjust trades live until you have a winning successful setup When you are first developing a new setup for the first time It's got to be set it and forget it or you will never learn what works and what doesn't because what's probably going wrong You probably had a brilliant idea before you entered the trade But then you just got emotional and you made a bad mistake with how you adjust it And that makes it much more difficult to figure out what really works or what doesn't Because it's all based on emotions Okay, so when i'm buying support, I choose a level where if it failed the failure would liquidate buyers Um, only by support you trust if there is any market generated information that would question the support then it is not buyable So let's just say let's pop open the the current market and take a look Excellent the market is one time framing higher. Okay Oh Man Yeah, I did not think it was going to be able to keep that momentum going that is interesting to see Okay, so the market is one time framing higher. I'm thinking we're heading up here to backfill the single prints That we left behind on the 15th Okay, so that's my target. That's where I want to take profits is right there So I know I want to get long and I know I want to take profits up there So the next thing I'm asking myself is Where would I put my stop? Well, because the market is trending they could find support anywhere inside this c-period They could there could literally be buyers waiting anywhere here. So my stop would have to be all the way down here below The c-period low So if I wanted to enter that trade right now, I literally can't because that's a one to one Well a little bit better than one to one risk to reward That's not good enough. So I would say to myself, okay I have to wait for a pullback into support. So then I start saying, okay, what are the support levels? Well, this node right here could be a support It's a little better risk to reward I would say even Good enough risk to reward to enter But There's also support right here There's also support right here And there's also an opportunity to get long right at that c-period low So if I'm thinking I can't enter where price currently is These are the support levels and I'm trying to decide which one am I going to buy I then look for is there any obvious reason why one wouldn't work And to be honest today any of these could work So it's not a great example, but let's say for example There had been like single prints right here Right. Well, then I would not want to buy this support Because buying that support it'll probably fail and go backfill those single prints So I'd want to instead buy the base of the single prints Okay, so the goal when buying support is figure out where the levels are that you can buy And try to buy the furthest ones you can from price Try to buy the ones with the minimal possible risk for the maximum possible reward Now I would rather miss a trade I'd rather say I'm not willing to buy these two I got to wait for the pullback to this one And let the trade run away without me Then try to force my way into a trade where my risk reward isn't good Because maybe I would make money today Yay, look at me. I'm the gambler who put the money on black and I won But I will probably won't make money tomorrow And I probably won't make money the next day And because I think in probabilities I'd rather miss a trade So that I can protect myself from losses Then force my way into a trade just to satisfy my craving to be long Does that make sense? I hope so I also always place my order one to two ticks above my level of interest So if I was trying to buy You know Let's say 51 31 I would actually put my order at 51 31 50 I always put it just a little bit above the support level that I'm looking to buy Okay, when taking profits at resistance I choose a level that has a very high that I have very high confidence the market can reach But that also has a high Probability of a reverse of reversing the market. Sorry. So basically the idea is If I'm entering my order right here and this is my take profit target But I think there's a chance the market might come all the way up here. I don't want to use this as my take profit Because I might be leaving a lot of money on the table if it blows right through there So the goal is always to choose the take profit That is the furthest from your entry you can get But it also still has high confidence the market will get there So if I think if I'm pretty confident the market can get here and like maybe it can get up here This is the take profit. I don't want to go for what's unreasonable and the market won't probably get there I so it's sort of the the sweet spot between Getting as far away from my entry as I can But not so far that the probabilities are limited that it'll even get there That's where I want to take profit. I also always want to put my order a tick or two below that specific level okay When stopping out at support when going the other way. So let's say I'm entering here. This is my stop. This is my take profit I'm going to put my my limit by order a few ticks above my entry My limit take profit order a few ticks below my exit I'm going to put my stop a few ticks below my stop level as well Okay, just because I'm so good at picking levels. Sometimes it comes right to it and then it reverses So I like to give myself an extra tick or two there When choosing a level to get stop out it should be a level Where if the support above it broke, but it was a fake out The market could still stay above. So that's such a great example Looking at the one time framing today Oh, here we go man as I'm speaking. We're pushing into it beautiful. So You know, if I'm looking to go long Let's say right here. This is where I want to put my long I don't want to put my stop right here Because the market could still come down to there and turn around and go higher I need to put my stop so far down that if the market were to get there It would fucking liquidate the market lower Right so that I don't get swept out of the trade Very important concept man. Look at this. Look at this kids. It's happening in real time You can get along the market right now with like Three points of risk With a potential reward Of You know 30 points Okay, now does that guarantee the trade is going to work? Of course not Of course, there's no guarantee the trade is going to work. The market is random. It may work. It may not But if you take these asymmetric opportunities when they come And you're right at least half the time you will make a lot of money And have a very good reward. It won't matter if this particular time you get stopped out Because the one time where it works you'll make up for all the losses before Risking two percent to make, you know, 12 percent It's a good trade. I'm talking about a Trending market right here Okay, okay, man. I really got to blow through these. I just got a couple more slides. I promise we're almost done So moving stops in a rotational market If it is a tight range, I never move the stops I set it and forget it if it is a wider range I use the value area high or the value area low So basically once the market re-enters value, then I move my stop to that value area high If i'm scratching out, which is basically just hitting the market, you know Exit button hitting if your long market sell or if you're short market buy or just the flatten button Scratching out of the trade is only acceptable in a rotational market if the market information changes So if the market is for example trading in a very tight range And all the sudden out of nowhere, it's like Okay, I can just stop out of that because something has changed and I don't need to be in that trade anymore If i'm watching book map and the liquidity suddenly changes, right? That's one of the key things I use book map for honestly is recognizing those liquidity changes. So if I'm in a trade where I'm long Because I think we're going to head up and test this liquidity at 51 50 And then all the sudden poof. It just disappears. It's just gone Well, then I don't want to be in a long trade anymore. So I'll just scratch out So in a rotational market, the only thing that will get me to scratch out is if the market generated information changes In a trending market, I will trail my stop So every 30 minutes as the market makes higher lows, I will move my stop up below the low of the previous tpo Okay Why because I don't want to give back all my gains if the market You know turns around and starts heading down. So I will trail that stop If the market generated information suddenly changes, I don't scratch out of the trade. I just move my stop as tight as I can So again looking at the live market You know if I got long and the market starts to push higher And then all of a sudden something crazy happens and there's like all this volatility. I'm like, what the fuck is going on? I'll just take my stop And stick it like right below price and it's like if they stop me out, okay But I'd rather stay in that trade just in case after the chaos is over. It keeps going higher As far as taking profits in a trending market, my targets for taking profits are high volume nodes previous highs and lows Virgin points of control weak and poor reference repairs and the base of either single prints or spikes I like to move my stop above my entry then tail it over time trail it over time I I will move my take profit order higher if it seems like the market has momentum and it's going to keep going And I my goal in a trending trade is to stay in the trade as long as possible With a trending trade, I want to get in as soon as I can And stay in as long as I can In a rotational market my targets are the tpoc the vwap the nearest supportive resistance level or the base of single prints Um, I don't change my target unless the market generated information changes. So that's scratching out I always wait for it to get to whatever level I'm targeting And the goal when I'm in a rotational trade is to be as cautious as possible with the entry But then take profits as quickly as possible Okay, and the last thing I want to mention Is the difference between trading options and trading futures. So this is something I have not publicly talked about Everyone who's been following my streams is going to shit their pants right now when they hear me say this Because I have never messed with options, but I am now trading options as well as futures I started experimenting with it about six months ago For swing trading purposes trading with options and I suddenly realized that they do actually provide a lot of Opportunity for day trading as well. And that is because structurally an option Handles market volatility completely differently than a futures contract. So with an option Your risk is capped by the price of the option or the spread Whereas with futures your risk is capped by the stop loss level that you choose In options time is the most important factor for success In futures volatility is the most important factor for success And in options, there's an unlimited way you could approach the market. You could look for you know, um Butterflies or iron condors to trade balance. You can you know trade just a single call or poet if you want to trade directional There's more approaches to it. Whereas with futures, you're limited to just long or short So what I have found is that intraday when the market is incredibly choppy It is hard to trade futures Because you might buy support and the market might start to make a move and then come back and take out your support And then go and you're like Damn it And if it happens once it's no big deal But if it happens, you know every day for a week straight, it starts to get really frustrating so if instead of buying a long contract in the futures I buy I use the um The options on the futures the MES options for for doing this If instead I buy a call option where I would buy support I can stay in that option Let them just grind around and drive me nuts and then later on in the day whenever that may be that it makes the move That's where I take profits on the call option Now the tricky part is time is a factor So the longer you're holding the option the more decay in in value you're getting So if I think a market is going to be volatile For the next say hour or two, but I'm pretty sure it's going to break higher or lower I'd rather use an option to trade it than the actual futures contract Whereas if I think I'm nailing an entry with a futures contract if I think I'm going to be you know perfectly Getting a very low risk opportunity I'd rather be in the future So that I can wait as much time as I need to You know to get that trade to work out Okay, so it's just one more thing to think about I'm going to be talking about this much more In the workshop next month and also describing the differences between my strategies for day trading and swing trading The ultimate takeaway that I'd like you to take away from today's course Is that the stock market is a no-called strike game You don't have to swing at everything You can wait for your pitch You can wait for the opportunity to come to you Where you can risk as little as possible for the maximum reward You can change your position sizing so that you're only risking a certain amount of your risk capital So that you can stay in the game for the long term If you feel you have to take every little trade that the market presents to you every time the market makes a move You got to be in This probably isn't the right game for you Thank you guys so much for watching once again If you're interested in the workshop head to marketsinmind.com promo code book map to save 10% We'd love to have you there With that I will say goodbye Bruce are you with me? Yes Wow Excellent charles really Fantastic webinar on covering so many crucial points In depth and very articulately done. So I don't know if if we have any time for some questions. Maybe a few questions here Let's do it. I gotta take a sip of coffee, but let's do it. Okay Let me see here over in I don't see anything really or much over in youtube But let's take a look over in our discord channel here. Hold on a minute While he's looking for questions if you did enjoy this lecture Do me a solid share it on your social media Tell your friends Yeah, I would like to yeah hit the like button and and please share this. I mean because like Um, I don't think I've seen A presentation that covers all of these elements within one presentation Uh, I've seen many over the years on aspects of it, you know, certain, um Areas of it, but not all together like this. So charles has really done a great job here Uh, and as a great reference, uh to go back and check again and again So, uh, let's see here. Um, I think robbed has a question follow questions Um, what you said about position sizing and volatility. How do you figure out volatility? Uh, is it precise number or uh, like an eyeball of estimating? Um, Do you discretionary figure out your position size or is it some kind of formula-based approach? Yeah, so everything I do is discretionary. It's all basically just by feel, right? I watch the market move And I get a sense of understanding of what it's doing based on what I'm seeing, right? So if it's a highly volatile day, you know, I just kind of recognize. Oh, this is one of those days We're getting really large ranges. We're reversing very quickly We're getting a lot of stops taken out on both ends If it's a tighter day where the market is in a much more, you know constrained sort of range I just know tighter range day. It's just kind of a feel that I go by Um, but the system for for managing my risk is an exact system So I have a piece of paper on my monitor that tells me exactly how many contracts I should be trading based on how far my stop is from my entry. So all I have to do is think And this trade is not feeling like a good one anymore Um, but uh, you know, this D period low was a good entry for a long trade Because I could have my stop at the B period low, which is cessation of the trend Which would mean I'm only risking one point So I could say, okay, I'm getting in at the C period low I'm targeting a move up to the base of the single so that matches my risk reward for sure Okay, um, I'm risking one point. Okay. Let me look over at my piece of paper and see how many contracts and then boom That's how many contracts I enter I also have just been doing this long enough that I kind of just know I can kind of look at the chart and know I need three contracts on this one or I need eight MES on this one or whatever the case may be Next question Okay, uh, let's see I check youtube quickly Yes, this is being recorded j. Uh, so uh, it'll be available immediately Uh, what is your criteria for determining balance versus trend price relative to a value? okay, so This is one of those things where I'll first teach you the classic way of doing it And then I'll kind of update it based on markets over the last, you know, six months or so So the classic way of measuring balance Is I first wait for the end of the initial balance So that is the the trade that the market does in the first hour of the day So for today, that would be this range right here. I then wait for the market to break out of that range Okay, and whichever side it breaks. That's a trend. That's the beginning of momentum Okay, so in this case, it would be a trend up because the d period broke out of the initial balance From that point on from the moment the d breaks above the initial balance I just watched to see do we keep making higher lows So as long as the d period low doesn't go below the c period low, which is why that was a trade It's still trending. It's still likely to go up and vice versa Now that's the classic way of doing it. I will tell you though What has become much more common in recent days for the market Is that we end up getting very large initial balances And then even if it starts to trend it doesn't get much for it Okay So I will look for opportunities to get long inside the initial balance And then just monitor the lows to see how far they can push it And as soon as we get cessation It used to be That this is a perfect example Let's say right now the d period pokes back down and gets below the c period low Back in the day, I'd be saying oh, we're probably just going to go sideways the rest of the day But now it is not uncommon for the market to start trending one direction and then literally just start trending the other way So I would be much more cautious Trying to go long down here for a version to the mean In case that momentum keeps going So it's a little more complicated nowadays than it ever has been before because the volatility is just insane Which of course we go into much more detail about in the course Next question Okay, let's see here Is value high or low ever a target for anything other than stops? Sorry, I wasn't made to say that one more time Um, well the couple questions from truman here, um I'll start with the first one a high volume note on the market profile is um Not uh, not virgin can it still be a target if there is market profile overlapping it? yeah, so Generally when i'm looking for targets It's like a level where I think the market can't keep going right so Sometimes that's a volume note. Sometimes it's you know a a potential resistance based on volume So if we zoom out here a little bit We can see that we've got some some high volume right here We can see we've got some high volume right here. We can see we've got some high volume right here So there would be nothing wrong with Using those as targets for the market to get to the next high volume note But we've also got these other references, which is the base of the single prints coincidentally in the same place Base of the single prints here weak reference in need of repair base of single prints up here So that's what I would end up using as my target because that's where The market is likely to change right if the trend can keep going And it's going to run out of steam the base of those single prints is where it will probably run out of steam So that doesn't mean it won't poke through it just means once it does it's probably coming back down So if i'm longing from here, that's where I want to take profits, right? But let's say that base of single prints wasn't there Right, we do have the large volume node. I would probably ignore that node and target this base of single prints Right, so generally the large volume nodes are more where I enter trades That's you know support if i'm going long or resistance if i'm going short And generally it's a place where there's going to be a change in the market is where i'm taking profits That's going to be base of single prints. That's going to be weak references that need repair Poor highs poor lows previous days highs or lows overnight highs or lows things like that Okay, great. I mean, uh, so kind of a follow-up or on that like uh, so if if price has blazed through though A high volume node, you know, uh in the bigger picture Uh, but the previous bar or time period you have on your profile um Is is the single prints are above that high volume node like you just said then you would go with the single prints Over the high volume node Yeah so volume nodes are kind of like There are areas where the market likes two-sided trade, right? So that's if the market's going to reverse somewhere a high volume node is a place it could But it doesn't have to it can blow right through a high volume node and keep going So if i'm looking for a place to take profits I probably don't want it to be a high volume node because it can just blow right through I want it to be something where there's definitely going to be a change in the market And and single prints work better for that Yeah Okay, great I mean here's just an example for today. Sorry if we do get cessation now And it's a big if because this thing could absolutely keep going the rest of the day But if we got cessation right now and the market poked below that d-period low, where was the change in the market? Was it at a high volume node? Not really I mean, there's some volume in here, but it's not that's not really that big of a deal. There's more volume up here The change was getting above the overnight high It was the fact that we got above the overnight high and couldn't stay above So that's the way I think about it Okay, go on um, I think that that's it and like I am Guys, I would just say like I put the link in there for the workshop Charles has graciously given us like over an hour and a half of a presentation here And covered a lot of a lot of pieces a lot of things So you can reach out to Charles on his website. I put it in there the Ask about the workshop as well And I think probably be a better Venue for following up and getting to some of the details here Thank you so much Charles. I don't know if there's anything else that you want to add before We close up shop here Well, I just first off want to say thank you to book map that you guys do this that you guys create this opportunity for traders to you know, who don't have as much experience to learn these pro You know series webinars are great. Um, so first off a thank you to you guys and one final plug for my workshop If you enjoyed this hour and a half the workshop is two weeks Of four hour long sessions. I go way more in depth. But anyway, thank you very much bruce and thank you to book map Excellent. Thank you, Charles Have a good one everyone. Bye