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Hello traders! I'm Sara, you might know me also as The Perceptive Trader. I'm a full-time currency trader and a trading performance coach. Trading and psychology are the two biggest passions that energize my life and I was fortunate enough to merge them together and create my life purpose around that and helping other traders succeed in this field. Some other passions of mine include going to the gym, traveling, playing piano, spirituality, self-improvement, writing, coaching, and counseling. There's a lot more I could share with you about me and I'm eager to do it along the way. I believe you can know me better from my Twitter content (@PerceptivTrader) and newsletter The High-Performing Trader - where I share weekly posts on trading psychology and performance --> https://theperceptivetrader.substack.com/ I hope you take the biggest value out of this amazing group that Matt had the delight to create! It's an awesome opportunity to feed your passion for the markets and grow with shared perspectives! Excited to share my knowledge, learn and connect with you all!

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Matt Thomas
Vivek Rana
Arvind Vidhate
Raushan Prashant
Abdulai Ayaaba Sumaila
New comment 5d ago
Pinned

Watch This Video to Get Started. "Introduce Yourself" Template Attached.

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Today I started reading a new book the psychology of money and I'm recommending to all our community members, Her I quote some great lessons from one of my favorite chapter Chapter- Nothing’s Free “Everything has a price, but not all prices appear on labels.” - “Everything has a price, and the key to a lot of things with money is just figuring out what that price is and being willing to pay it. The problem is that the price of a lot of things is not obvious until you’ve experienced them firsthand, when the bill is overdue.” - “Most things are harder in practice than they are in theory. Sometimes this is because we’re overconfident. More often it’s because we’re not good at identifying what the price of success is, which prevents us from being able to pay it.” - “Like everything else worthwhile, successful investing demands a price. But its currency is not dollars and cents. It’s volatility, fear, doubt, uncertainty, and regret—all of which are easy to overlook until you’re dealing with them in real time." - “The question is: Why do so many people who are willing to pay the price of cars, houses, food, and vacations try so hard to avoid paying the price of good investment returns? The answer is simple: The price of investing success is not immediately obvious. It’s not a price tag you can see, so when the bill comes due it doesn’t feel like a fee for getting something good. It feels like a fine for doing something wrong. And while people are generally fine with paying fees, fines are supposed to be avoided. You’re supposed to make decisions that preempt and avoid fines.” - “It sounds trivial, but thinking of market volatility as a fee rather than a fine is an important part of developing the kind of mindset that lets you stick around long enough for investing gains to work in your favor.” - “Market returns are never free and never will be. They demand you pay a price, like any other product.” - “The trick is convincing yourself that the market’s fee is worth it. That’s the only way to properly deal with volatility and uncertainty—not just putting up with it, but realizing that it’s an admission fee worth paying. There’s no guarantee that it will be.”

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I'm excited to announce that @Sara Jorge aka ThePerceptiveTrader has joined the community! I'm sure a lot of you know her as @PerceptivTrader on Twitter with over 40K followers. She's a full-time currency trader and trading performance coach that helps individuals overcome their psychological performance flaws to achieve peak performance in the markets. Please send her a warm welcome message within the community and start leveraging her insights and wisdom as one of the top trading mindset & psychology coaches/mentors in the industry (say hello, ask her questions, etc.). This is just the beginning of what will become a top-tier trading community focused on deliberate practice, real habit & skill-building, and continuous improvement for long-term, sustainable member success. Learn More About Sara/ThePerceptiveTrader: 1. Follow Sara (@PerceptivTrader) on Twitter 2. Subscribe to Sara's High-Performing Trader Newsletter 3. Check Out ThePerceptiveTrader.com Website 4. Watch Sara's Interview With Anthony Crudele

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www.tradingheroes.com/spirituality-in-trading/amp/ Spirituality has traditionally been a taboo topic among traders. Many successful traders I've met or know of have a spiritual practice, but wouldn't talk about it openly. I feel that this is because trading has traditionally been a very male dominated profession where feelings are thought of as weak or a liability. However, depending on which study you read, as much as 90% of new traders ultimately fail to become consistently profitable. Therefore, there's something clearly wrong with the old model. All problems in trading stem from a separation from your soul. That may sound like a ridiculous statement right now. But if you stick with me, I'll show you exactly why this statement is true. There's probably a tiny part of you that agrees with me, but the rest of you is very skeptical. I understand, that's totally normal. You don't have to believe me right now. Let's explore spirituality in trading and why I feel it's vital to your long term success as a trader. # The 3 Human Elements of Trading There are basically 3 elements within ourselves that we have to engage to become a successful trader. Understanding these elements will allow you consciously improve in these areas. If you don't know about them, then how can you work on them? Makes sense right? Alright, so here they are and how they influence your success as a trader. ## Left Brain Awareness Our left brain handles cognitive functions and deals with logic. This is where we usually start when we are learning any new skill. In trading, this means learning how to: - Execute the rules of a trading strategy - Enter trades - Calculate risk - Analyze your results - Optimize your strategy Unfortunately, this is where most new traders get stuck. They think that trading is only about numbers and trading systems. This is why online content focused on trading systems is so popular.

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Matt Thomas
Dindayal Pawar
New comment 8d ago

Greeting to everyone, hope you are doing well. I just want to ask how is everyone coping with the current markets. For me I think the markets aren't active that much, more of consolidation or liquidity generation and I find it hard to find high probability trades on my instrument and even opted for the alternative.

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Matt Thomas
Kabo Nicholas Molemogi
New comment 11d ago

Josh Schuler at Trade With Profile is hosting a Skill Event tonight to cover a critical topic: building a strong playbook of consistent, repeatable, and profitable setups/strategies. This concept of building a playbook of reliable trade setups/strategies based on context/posture/environment is something that I don't see enough developing traders taking seriously; even though it's one of the most important things you can do as a trader. It's the source of consistency, repeatability, and overall edge/positive expected value (aka profits over time). - Register For the Skill Event - Learn More About Trade With Profile 2 Helpful Resources Related to Playbooking Trades: 1. Top 15 Quotes From The Playbook By Mike Bellafiore 2. 3 Core Components of a Robust Market Methodology

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*NEW VIDEO* Mental Toughness is the Cornerstone of Success as a Navy SEAL. Traders Can Learn a Lot From the Mindset They Have to Acquire Just to Make it Through BUD/S Training. Article & Video Links: - Full Article - YouTube Video

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Why is Day Trading So Stressful - Learn How to Overcome it (FULL ARTICLE): https://tradingparadigm.com/why-is-day-trading-so-stressful-learn-how-to-overcome-it Discover Why Day Trading is So Stressful and How to Overcome That Stress With a Solid Mathematical Edge, Proper Risk Management, and Effective Mindset.

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Hello everyone, when do you think one should modify their strategy? Because the market is always evolving, how do you know when it's time to modify and not confuse that with difficult trading month?

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Matt Thomas
Kabo Nicholas Molemogi
Dindayal Pawar
Arvind Vidhate
New comment Apr 28

You may have heard the saying that “the process must come before the results”, and only that way you’ll make money in trading. While this is certainly true, it's easier said than done. Today, I want to share with you three crucial things that you can't afford to miss if you want to focus on your process and stop trading in anxiety to achieve results. #1 Set a Solid Trading (and Life) Routine As a trader, the majority of your success comes from your preparation which will reflect in the execution. To perform at your full potential, you need to invest time in journaling your trades, backtesting, data collection, analyzing wins and losses, reviewing your performance, preparing your analysis and trading ideas, and mental preparation for the week ahead. These tasks may seem overwhelming, but they're necessary to get you focused on the process. When you focus on performing well, the results become secondary. On the other side, your life routine is of extreme importance because it dictates your emotional state. If you don’t enjoy your life routine you’ll struggle to be mentally healthy going into your trading session. Ask yourself the main emotions you feel throughout your day. Be attentive to this. Do you go through your day mainly stressed? Anxious? Demotivated? How do you tend to wake up? Good trading performance requires balance. Feeling good emotionally is the base of your mental edge. Make sure you’re meeting your basic needs - good sleep, food, exercise… - and the emotional ones too. Because if your emotional needs aren’t being met in your life, you’ll look to fulfil them with trading which leads to all sorts of mistakes. #2 Put Things In Perspective Trading requires patience and perseverance. When you find yourself becoming impatient, take a moment to reflect on the time and effort you need to become a consistent trader, which can take 5-7 years, compared to the rest of your life where you can enjoy the benefits of your compounding efforts. This reflection can help you remain calm and focused, even during challenging times.

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Hello @everyone I would like to know from you guys, how to keep your mindset & emotions calm during a losing streak. How do you cope with that? What do you do to be able to not be affected by the losing streak? How do you reflect and get back on your feet?

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Dindayal Pawar
Kabo Nicholas Molemogi
Matt Thomas
Saman Zarein
New comment Apr 20

Brian Shannon @alphatrends is a trader that I deeply respect. In a recent interview with Richard Moglen of TraderLion, Brian discusses the anchored VWAP indicator in-depth. From a technical edge/methodology standpoint, I personally talk a lot about profiling (volume profile & market profile) - and I truly believe that profiling offers the overall strongest lens to view markets through. But VWAP (and even more specifically - anchored VWAP) is a close second to profiling, in my opinion. I use the traditional daily VWAP along with various anchored VWAPs (anchored to the beginning of the week, month, year, substantial gaps up/down, and other big events/announcements like FOMC, etc.) to supplement my profiling analysis. So check this interview out and then share your thoughts on VWAP and any other indicators/charting studies that you find useful to observe and analyze market behavior. I look forward to hearing everybody's thoughts on their most valuable indicators.

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This is very confusing topic i have come across while i was setting up my risk management frame work... in trading we say we don't know the outcome but we need to follow a method (edge) consistently... but there comes risk management part if you follow percentage risk there with everyday / every trade your not going to consistent in risk because fluctuation in capital change the absolute risk per trade every trade... and if you follow fixed risk per trade then your consistant in risk but if loosing streak occur then impact can be direct... my question for all from above what method you follow? why ? psychology and drawdown management with respect to that as fundamentally both have different impact..

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Matt Thomas
Arvind Vidhate
New comment Apr 11

For those of you who celebrate, I hope you have a happy Easter weekend and enjoy some time (and hopefully nice weather) with family & friends. No trading for me today with markets closing early. Just like most other holidays/early closes, it's not a time to force any action. To me, it's a much better time to get away from the screens and rest/re-charge. If you haven't seen my email newsletter message from yesterday, I shared that I've been updating and re-designing the TradingParadigm.com site (a long overdue project). Outside of trading, that's where much of my time, energy, and focus has been going for the past month or two. But once that's completed, my focus will shift back to this community and continuing to grow/improve it. Cheers!

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Imagine being able to go back in time and restart your trading journey. Knowing what you know now - would you change how you approached it (likely a "YES")? And if so, what would you do differently? I'm extremely interested in all of your thoughts/perspectives on this. I think it will provide a ton of insight into what to avoid and/or focus on to achieve the best, most efficient trader development. Looking forward to your responses!

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Over J
Kabo Nicholas Molemogi
Dindayal Pawar
New comment Apr 3

Practicing Non-Attachment @tradingcomposure.com An attitude of non-attachment in trading is key! Here's a Zen story that highlights that: Two monks were traveling together on a journey through the countryside when they came across a woman who was trying to cross a muddy and flooded road. She was clearly in distress and unable to continue her journey. Without hesitation, one of the monks picked her up and carried her across the road, while the other monk watched in surprise. After they had traveled a few miles, the second monk finally spoke up, "Brother, as monks, we have taken a vow of celibacy and non-attachment. How could you touch that woman?" The first monk looked at him and said, "Brother, I put that woman down back at the road, but it seems that you are still carrying her with you." The story illustrates the importance of letting go of our attachments and judgments, and embracing a proper attitude of non-attachment and equanimity. In the market, and more broadly in life, we often carry the weight of our past experiences and emotions with us, allowing them to influence our present and future. But, by letting go of our attachments and judgments, we can free ourselves from the burden of the past and live in the present moment with peace and clarity of mind. - What is Non-Attachment? Non-attachment is not about being a cold or emotionally dead brick wall, instead, it’s about learning how to let go of the thoughts and emotions that create suffering. Once we can stop being so attached to our thoughts, we experience tremendous relief, inner peace, and a pervading sense of joyful well-being. So how do we let go of our thoughts and emotions? We must learn to observe and disentangle ourselves from our thoughts through practices such as mindful awareness, meditation, and self-inquiry. When we can simply allow life to unfold naturally without being attached to outcomes, beliefs, feelings or opinions, then we experience true non-attachment. Picture this process of detachment like being an ice cube that slowly melts down into a puddle of flowing water. Water, like the practice of non-attachment, flows with life effortlessly and peacefully, whereas ice cubes do not.

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This is a post to stress the importance of daily/weekly/monthly/yearly Prep & Review. I know everybody's time is limited (and I completely understand that), but being a successful trader is about more than just clicking buttons during trading hours. The real work takes place during the preparation and review phases. So no matter what markets/products/timeframes you personally trade, what I'd really like to see is members of the community sharing more of their prep/review work - and using this platform as a trading journal of sorts. Getting these "reps" in is incredibly important. And being able to do your own prep/review work, in addition to viewing & analyzing others who might have a different perspective you never considered, is powerful. What I do each day/week is my own prep & review work - and then compare it to the work of my top mentors (Josh Schuler, Aaron Korbs, Merritt Black, etc.). For example, at the beginning of each week (every Sunday), I start by watching Josh Schuler's Weekly Market Outlook - and compare it to my own macro-level prep. Then each day of the week, I take a similar approach, but from a more refined perspective. I do my own daily prep - and compare it to Josh's Daily Market Outlook, Merritt's Daily Market Insight, etc. Then at the end of the day, I take a similar approach with review. First, I review my own trades - and then I compare that to what Josh, Aaron, and Merritt have done. So not only am I racking up reps with my own trades and review/prep work, but also through the trades of mentors I deeply respect as well. This is a powerful recipe for accelerated growth. So let's get this community back into gear and start sharing more individual prep/review work. Not just to help ourselves, but for the benefit of everybody in the group! Helpful Resources:

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Kabo Nicholas Molemogi
Matt Thomas
New comment Mar 15

Trading is an 80% Job means we have to follow the plan which is decided in advance by an Owner / Employer. Just like in a Normal job; We have to come on time ( 9 to 5 ), We have to do the task on time, We have to be disciplined during the office, We have to follow the system for any type of work. Almost any Job in the world is Boring; so is Trading. Trading is a combination of Employer Plan (20%) Employee Action (80%) # If you are not following your trade plan means you are not a good employee. - A Good Employee never argues with Employer/Owner/Boss. - A Good Employee does the Task according to Bos's instructions ( Not apply Creativity / Mind). - A Good Employee on time during office hours. - A Good Employee will be in the office despite not having any work. (90%+ Attendance). - A Good Employee does not repeat mistakes after getting scolded by Boss. Similarly - A Good Trader always show up on time. - A Goo Trader follow the system without any emotional attachment with his trade executions. - A Good Trader read the price action during trading hours. - A Good trader don't repeat the mistakes.

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Kabo Nicholas Molemogi
New comment Mar 13

Insights and Strategies To Pass Them Successfully Mastery is achieved under adverse conditions. Passing these 6 trading tests is not only proof of your maturity as a trader but a vote for your confidence and abilities. Generally, traders are grouped into two categories: 1. Traders who equate setbacks to failure 2. Traders who see setbacks as challenges Needless to say, the second group achieve higher levels of performance during the peak performance trading program. It’s all about reframing your perception which requires you to alter your self-image. That’s when change happens. But how can you do this? In this article, we’ll explore the 6 tests you’ll be subjected to in your trading and how you can cope with them in the best way! #1 Missed Trade More painful than losing money is missing an opportunity to make it. You might think at some point in the future you’ll finally stop missing trades. Nothing could be further from the truth. Even the best traders miss trades. And it’s fine as long as you recognize the reason why you missed the trade and work on it next time. Sometimes you miss a trade because you were busy managing another one and there’s no way you could’ve been attentive to two things at the same time. You can choose to only manage one trade, not more than that, at any given moment. You need to deliver good performance to all the trades you’re in and if you can only do that for one trade at a time, it’s okay! If you feel guilt, regret, and anger after missing a trade, these emotions will haunt you to the next trades until you’re able to let go and reframe your brain. It's okay to feel pain, but it's not okay to let it affect your next trade. Practice your ability to reset after each trade or you'll be trading in the past. Quick Note: Before assuming that you've missed a trade, confirm if it was under your criteria or if you're assuming that in hindsight. Then, find out the why. The reason why you missed the trade falls under one of these 4 possibilities:

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Dindayal Pawar
New comment Mar 8

Coming off a Holiday yesterday (short session/early close), we opened today around 4045 with an open rejection reverse. We initially went up to test 4056 (a low volume node on the 5D composite profile), rejected it, and reversed back through the open toward 4030. This had me leaning toward a breakdown of the initial balance and move lower toward 4000. But first, I thought we would see a rotation back up from the initial balance low toward the open/daily VWAP. So that was my first trade. Trade #1: Took a long near the IB low and was keeping a short leash on it because the upside target I was shooting for was only about 15 points away. The trade had a nice initial impulse, but then immediately reversed. So at that point I exited for a 2pt gain and was no longer looking for longs. My full focus turned toward a short entry for the IB low break. Trade #2: Entered short on a break of the IB low and the trade worked nicely for a while. We were one-timeframing on the 30min TPO chart (making lower highs and lower lows), so I started thinking this could be a trend day. When I'm in a favorable position on trend days, I'm typically monitoring for 2 things: one-timeframing on a 30min TPO chart as a just mentioned and staying outside one standard deviation of VWAP on a 5min daily chart. Later on in the lunch hour these things were tested and I ended up exiting the trade for about a 9pt gain, but unfortunately I missed out on about 10-20 more points when it immediately reverted back down (I pointed these two things out with some annotations on my charts). I wanted to hold on to my short because I didn't think the down move was over yet, but I also wanted to lock in the gains I had so far - so the latter is what I did. After exiting, I was looking for a re-entry a few points below the IB low, but the market never gave me that opportunity. It just continued lower down to my initital target in the 4000-4005 area. I wouldn't have been looking to press the trade any further past that as it would most likely get some support once hit (at least initially). Overall, solid day but could've been 2-3X better if not for that minor hiccup in the downtrend.

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Dindayal Pawar
Matt Thomas
New comment Feb 28

If your on "Loosing Streaks" doesn't means that your a looser, only if you have "Edge".... Many new traders if started getting losses they try to find new system, they shift to the new again after some trades that system also started giving losses and again this loops continues... because they only know "Win rate and risk : reward " and they don't know how many loosing streaks are going to unfold and how to keep emotions stable during that....below image shows that if you have x% of win rate then how many loosing streak you can expect for 1000 trades that you are taking as your system....so if you know that your already prepared for (mentally, financially and risk management wise) then your execution becomes simpler... Note:- Loosing streaks are subject to market it can go above that and below that but if your prepared you know that threshold limit of system hence you become more aware to risk management, follow one particular method and you do not jump from system to system... comment your views on this... (rather being more aggressive on trade management be more aggressive on risk management)

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Dindayal Pawar
New comment Feb 20

Yesterday morning, ES held 4100 and then drove toward weekly and monthly value (the 5D & 20D VPOCs) in the 4125-4145 range. But in the last hour of the session, the market gave that entire move back (closing at 4096). Then today, we opened even further below that (around 4076) and movement was very indecisive in the first hour of trade (aka the initial balance). From my perspective, this now makes 4100 a strong resistance level. And based on how the market treated the first hour today, it led me to believe that we'd most likely see a rotational day around the 4075 area and/or a test of 4100 followed by a drive lower. Trade #1: I only had a small window to trade today (10:30am to 11:00am), but that half hour gave me one opportunity to express my rotational narrative. I took a short near the initial balance high at around 4184 and held it all the way down toward the intitial balance low around 4160 for a 24pt gain. If I were at my desk today, I probably would've taken a couple longs off the IB low (for gains) and another short off the IB high (for a loss). So it had potential for a really big day, but I'm glad I was able to take advantage of that one opportunity this morning at least because I won't be active at all on Monday (markets close early for Presidents Day).. I love 30-40pt rotational days like this and being able to fade the edges/extremes. To me, that scenario is profile trading at its best. Also, let me know if you're actually following these trade reviews and interested in me continuing them. There hasn't been much interaction with them at all, so I don't want to keep sharing them inside the group if nobody is interested. I'd rather spend my time sharing things that the group as a whole finds helpful - so let me know what that is if these trade reviews aren't it. I appreciate the feedback!

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After driving up to the 4160/70 area yesterday, the market came back down overnight - opening today's session right above 4100 (4103.75 to be exact). In the first hour of trade (the initial balance), we held 4100 and drove toward the 20D VPOC (volume point of control) at 4125/4130. After seeing 4100 support hold yet again and drive price back to the 20D VPOC around 4125, the main scenario in my mind today was a move from the 20D VPOC to the 5DVPOC (around 4145). I was looking for a bit of a pullback to the 4115 area for entry before positioning for an IB high break and move toward 4145, but that pullback never came. I won't go through every trade today like in past reviews because I took so many today (probably 10+). But it was because I was battling the consolidation in the 4125-4135 range for like 2 hours before the upside move I was leaning toward eventually panned out. Pretty much all of my trades were near breakeven until the last one that worked for an 11pt gain (from about 4128 to 4139). The market headed right to 4145 before stalling and reversing back down. I tried to give it a little bit of space for a potential run toward 4150/4160 thinking stops might get run through that area (since that's where the down move began), but things didn't play out that way. It looks like we're basically back in ping-pong posture between 4125 and 4145 (the 5D & 20D VPOCs). I have some appointments tomorrow so I most likely won't be on the screens. But overall, the past week of trading has been a battle. My contextual reads and supporting trade ideas have felt pretty good, but the execution of those ideas hasn't been so easy with the slow, choppy, frustrating way that the market has been going about making the moves I'm expecting. Definitely had more break-even trades than I've ever had in a 1-week span. Maybe next week will provide some moves with tempo & follow-through.

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The market opened at 4122 and put in a relatively narrow 22pt initial balance range (IB Low: 4113 & IB High: 4134.75). No real directional conviction in that first hour of trade. Just kind of sat around the 4125 area (which is also the 20D VPOC). The market is in a balanced posture with price, 5D VPOC, and 20D VPOC all basically the same (5D VPOC 4144 and 20D VPOC is 4125). With this posture in mind, along with the relatively narrow IB range we put in this morning, there was potential for a relatively large breakout to one end of the range. Once a market is balanced, the next move is imbalance (big moves start from balance). Trade #1: With the market hovering around 4125, I entered a long position and was looking to stick with it as long as we held above the opening range. If that area held, I was looking for a push through the IB high and then hit the 5D VPOC at 4144 (along with the naked VPOC from yesterday's session right at the same level). These levels often act as a magnet for price as the market approaches them. That's pretty much exactly what happened, but I only captured about 8pts on it due to chop. Trade#2: Took another long near the IB high with the same sort of idea - I was looking for a breakout to the 4144 level and beyond. But I ended up getting chopped out for a 4pt loss. Trade #3: Took one last shot at the breakout and caught it. The market moved right up to 4144 as expected, but had zero follow-through at that level and dumped all the way back to the 5D VPOC at 4125. I ended up exiting for a 3pt gain. Overall, the morning session was filled with some extremely slow put-you-to-sleep type of action - and the outsized move to the upside that I was looking for never panned out. I'll most likely not participate at all this afternoon if this type of action remains and just wait for tomorrow for more opportunities. Right now, price seems to just be ping-ponging between the 5D VPOC at 4144 and the 20D VPOC at 4125. But eventually, I'm expecting the market to finish balancing in this area and begin a more sustained directional move one way or the other.

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Matt Thomas
New comment Feb 15

CPI this morning at 8:30am EST brought some volatility to the market. Some very indecisive action followed with the market going coast-to-coast within a fairly large range multiple times. As usual, I didn't participate until after the initial balance (10:30am), but I just couldn't catch anything meaningful today. The market had a strong directional open with a quick move down to 4114 followed by a powerful 56pt reversal back the other way. Even though this created a fairly large initial balance range (which tends to favor rotations), I thought we might get a pullback toward the middle of the IB range before breaking the IB to the upside and testing higher prices. I ended up taking quite a few trades today: Trade #1: long at around 4150 looking for a move back toward the IB high and beyond. The trade didn't really work at all. Lost 7pts. Trade #2: After the attempt on trade #1 and strong reversal down away from the IB high, I started leaning toward rotations within the IB range. So I took another long around the IB low of 4114 and it had a really nice initital impulse of about 12pts up, but then immediately reversed and took me out at breakeven. Trade #3: After getting knocked out of trade #2 almost the the tick, the market then proceeded to run right back up toward the opening range/daily VWAP/anchored VWAP from CPI release around 4135ish. When it started coiling right beneath these levels, I positioned for a breakout. It was either going to go or I was going to get right out. I ended up exiting at breakeven right before the market flushed back down toward 4100. Trade #4: After getting knocked out of trade #3 and the IB getting extended to the downside, I didn't think the market would go much lower (at least not easily) considering the support in the 4100-4110 area. So that's where I was trying to pinpoint an entry. Got in around 4108, but then the market wasn't behaving in a way that I liked. Instead of tapering out at that level and having an immediate impulsive move back up and away, the market started building value right in that area. I ended up getting out at breakeven before it eventually started moving back toward the 5D & 20D composite reference areas in the 4125-4150 range. Easy to say in hindsight that I should've held on longer, but it's not so easy trading on the hard right edge of the charts. I kept a short leash on it because the market didn't act as I was expecting in my entry area and things could've easily gone the other way.

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Last Thursday, S&P 500 futures (ES) broke and closed below 4100 on a multi-distribution down day. On Friday, it opened below 4100 and closed essentially right at it (1 tick below) - testing it multiple times throughout the day. As I mentioned in Thursday & Friday's trade reviews, 4100 is a huge level. If ES couldn't reclaim 4100, then it would most likely be heading back toward 4050 and below (20D VPOC is currently around 4030 or so). Thursday, 2/9 Trade Review Friday, 2/10 Trade Review Today, we opened slightly above 4100, quickly tested it, and then drove right up to the 5D VPOC around 4125/4130. This all happened within the first hour of the session (known as the initial balance) and is one of the exact scenarios I laid out on Friday. I didn't personally catch this move because I almost always sit out the first hour just to let the market show its hand and settle a bit (especially on Mondays). But the reclaim into the 4100-4200 range paired with a strong open (open test drive) gave me conviction that we would most likely break the initial balance range to the upside and test higher prices (main target around 4150). Trade #1: This was my only trade today. I got long on the breakout of the intitial balance around 4130 and the market just kept grinding higher. I was thinking this could potentially be a trend day since we kept one-timeframing and building new profiles higher (migrating the point of control up to about 4135). But then a lot of balance/consilidation began to take place in the 4130-4150 range throughout the middle of the session. I ended up getting knocked out of the trade for +8pts (was shooting for about 20pts). Trade #2 (never happened): This trade never took place. But once I got knocked out of trade #1, I was looking for a short around the 4150 area if things lined up appropriately. I was looking for a minor breach of the 4150 level (which is a low volume node area on the 5D & 20D composite profiles) followed by an immediate rejection so that I could get short. But the market only pushed up to 4149.50 before dumping back down to 4130. Solid idea, but was looking for a bit better of an entry - so the trade never panned out for me.

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Richard Villarreal
Matt Thomas
New comment Feb 14

For Daily reminder I just created 1 diagram of trading in the zone book.

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Yesterday, ES closed below 4100 on a multi-distribution trend down day (which was outside of the 4100-4200 range of the past week or so). The market then opened today below 4100 as well (right near the lows/close of yesterday). This had me leaning to the short side on rejection of 4100 (old support becomes new resistance). Trade #1: Took a short right around 10:30am at the 4100 level and had a nice move down to the open & VWAP. Got stopped out for an 11pt gain on the boounce off that level. Trade #2: Took another short around 1:20pm at the 4100 level and again had a nice move down to VWAP. Got stopped out for a 10pt gain on the bounce off that level. Was shooting for 20-25pts on each trade, but the open range/VWAP held as pretty good support all day. Essentially 2 main scenarios today and moving into next week after the break below 4100 (see arrows in image). One scenario is that the market holds below 4100 as resistance and makes a move down toward the 20D VPOC at 4033. And the other is that the market reclaims 4100, holds it as support, and makes a move toward the 5D VPOC at 4125.

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This past week ES has been trading in a roughly 100 point range from around 4100 to 4200. Going into today, the 5-day volume point of control (5D VPOC) was right in the middle of that (at about 4155). Then the market opened right at/slightly above that level (about 4165). In A period (the first 30 minutes of the session) the market traded below the open. In B period, it pulled back toward the open, but drove strongly back down to set the initial balance range (first hour of the session). So we were balanced on a weekly timeframe (5D VPOC = current price), which means the potential for a relatively large move from balance was present (big moves start from balance). With the directional (downward) open, I was leaning to the short side for opportunities today toward the taper in the 5D composite profile at around 4100. Trade #1: Short at around 4151. See notch in composite profile and low volume node in daily profile. Was a great entry, but I adjusted my stop to breakeven prematurely. Ended up getting stopped out (basically to the tick) right before the market flushed down and broke through the initial balance. Missed out on a 20pt+ gain because I mismanaged the trade. Trade #2: Short again on pullback into the initial balance low around 4141. Near perfect trade. Very limited negative excursion and essentially just ran to my 20pt target at 4121. Was expecting more chop at the 4125 zone, but the market essentially dropped right through it. After this trade, I was starting to look for longs as we approached the bottom of the 4100-4200 range. Trade #3: Long at about 4117 (see notch in composite profile). Was expecting a more impulsive upward reaction and a taper in the daily volume profile. But instead the market started to build value (at lot of transactions taking place) right at my entry level, so I got out at breakeven. Trade #4: Long at 4096. I was looking to get long around the 4100 level because it's the bottom of the range that we've been trading in for the oast week. I had some great trades off this level earlier in the week, so I gave it another shot. Just like trade #3, however, I didn't like how the market was behaving after I entered. Instead of the daily volume profile tapering off and getting an impulsive reaction back up toward 4125, it started moving sideways/building value. So I got out for a 3 point loss.

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A member of the community recently asked me a question relating to strategies/systems - and it inspired me to write a blog post explaining my answer in detail. Thanks @Arvind Vidhate Here's the Link to the Full Blog Post: 3 Core Components of a Robust Market Methodology This is an incredibly important concept to understand because most developing traders I've come across over the years typically claim that they already have a strategy/system in place - and they want help with the mindset/psychology component (because that's where they think their main problems are). But down the line, I often come to find that their strategies/systems are extremely weak - and this lack of edge is only exacerbating their psychological issues. So try to understand that things like FOMO, impulse trades, hesitation, breaking rules, exiting too early, holding too long, etc. are often symptomatic of poor methodology (lack of competence/skill/edge). I'm not saying psychological hurdles will entirely go away once you have these 3 core components firmly in place. But it's difficult to be confident and consistent like most trading mindset/psychological coaches preach without deep market competence and legitimate trading skill to back it up. A trading system/methodology with real, meaningful edge can do wonders in regard to mindset. I hope this helps bolster your personal trading system/methodology! And feel free to share your opinions & experiences down below in the comments.

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Arvind Vidhate
New comment Feb 8

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