A guide to having discipline in trading.

FACT: 95% of traders lose money as they lack discipline to sticking to their trading strategies or lack of. Discipline or emotions directly influence your decision making process. Its what separates consistency profitable traders. 

Here are 7 lessons to master your discipline.

Reflect on your emotions. Be self aware.

– Take time on recognising and acknowledging your feelings. What you feel is valid;
– Assess potential triggers for impulsive actions. Define and accept triggers. Eg making money to pay bills or recover losses;
– Be kind to yourself and show empathy in hard times. Never belittle yourself. Go back and learn why you made a mistake;

✅ Keep a trading-thought journal. This is worth it as you can look back with that trade.
❌  Don’t beat yourself up for losing the trade/s as its inevitable. But learn from your mistakes.

Embody market awareness. Eliminate confirmation bias.

– Refresh your bias each day based on new data. New day = new plan;
– Stay objective and adapt to dynamic markets. Adapt or fail;
– Update your trading plans as new information becomes available;

✅Check scheduled news events daily; be aware of potential volatility.
✅  Reduce your risk ahead of high impact events. 

Establish strict trading rules; Define your non negotiable.

– Consider setting a daily loss limit. Eg. Use a daily stop of $550 per account;
– If you lose more than this, know that something has gone wrong in your approach;
– Pick a position size with appropriate risk & stick to it;
– Only increase size after 2 consecutive winning weeks;
– No plan = no trade. Avoid trading if you haven’t planned the scenario’s as you end up in ‘no man’s land’;

❌ Don’t engage in revenge trading.
❌ Don’t have a catchup “trying to make it back” mindset.

Build a trading plan. Be consistent.

– Outline the market context & your key levels each morning;
– Write out your trading plans & keep them handy at your trading station;
– Be prepared to trade In the Zone from 8:30am – 12:30pm NY time;

✅ Execute only planned trades with good risk to reward ratio. Stick to your plan.
❌ Don’t: Increase risk by moving your stop loss. Once you choose an invalidation point, it must be honoured.

Implement a shot-clock after losing trades.

– Take 5-minutes or more to cool-off after a losing trade or series of trades;
– Use this time to journal, plan trades, meditate or use the restroom;
– Implement breath-work to increase blood flow to your brain;

“In the Bhagavad Gita they say, “The mind under control is your best friend, the mind wandering about is your worst enemy.” Make it your best friend, to the point where you can rely on it. Your mind makes you strong from within. It is your wise companion. The sacrifices you make will be rewarded.”

— Wim Hof, Becoming the Iceman: Pushing Past Perceived Limits

Journal and review all of your trades.

– Keep a log of thoughts, emotions, data during trades. Refer back to these notes and highlight any salient points;
– Screen record all your trades & watch the game film daily. This is a low cost way to capture all of your trading action;
– Conduct daily, weekly and monthly trade reviews. Be honest and patient with yourself;

✅ Keep a consistent journaling time to build the habit.
❌ Don’t journal only winners. Losses are highly valuable lessons.

Always be a student of the game!

– Be humble & strive to learn continuously;
– Find a mentor, someone who is willing to teach you;
– Read for 30-minutes per day to keep your mind sharp;
– Keep an open mind & always be adaptable;

✅ Find a good trading community (we have a list of twitter accounts, youtube channels and paid subscriptions even though we are confident in our stuff for we can always benefit from others). 
❌ Try not to stress and don’t suffer in silence.

What are “Candle Sticks”

 A candle stick represents price action within a time frame. In essence it a method to represent price behaviour and by creating symbols of price behaviour, we can extract some information of a period of time. 

The makeup of a candle stick:
> The candle sticks body represents the price that it started and the price it ended within a particular time frame.
> The wicks of a candle stick represent what happened to price during a period. It shows you the range of the price action during that time.

To learn more, click on the blue button below

Support and resistance levels are critical concepts in technical analysis used by traders to identify potential price levels where the price of an asset is likely to encounter obstacles or reverse its current direction. These levels are based on the idea that markets tend to remember previous price levels and react to them in the future.

The significance of support and resistance levels lies in the fact that they can act as turning points for the price. If a support level holds, it suggests that buying pressure is strong enough to push the price higher. Conversely, if a resistance level holds, it indicates that selling pressure is sufficient to prevent the price from rising further.

Traders often use support and resistance levels to make trading decisions. 

In trading, trends refer to the general direction in which the price of an asset is moving over a period of time. Identifying and understanding trends is crucial for traders as it helps them make informed decisions about when to enter, exit, or stay out of the market. There are 3 main types of trends in trading. Uptrend, downtrend and range bound which is no trend.

To learn more, click on the button below.

A moving average (MA) is a popular technical analysis tool used in trading and finance to smooth out price data over a specified period and identify trends. It is a lagging indicator, meaning it relies on past price data to calculate its value. The moving average is calculated by adding up the prices of an asset (such as a stock or currency) over a certain number of periods and then dividing the sum by the number of periods.

For example, if you want to calculate a simple moving average (SMA) for a stock’s closing prices over the last 5 days, you would add the closing prices of the last 5 days and divide the sum by 5.

Moving averages help traders identify the general direction of a trend and smoothen out the noise in the price data, making it easier to identify potential entry and exit points for trades.

To learn more about what MA we use and how, click on the blue button below

Fibonacci sequence and the golden ratio exist everywhere in trading. We will look at how to apply them. We can use the   Fibonacci Retracement tool to highlight price areas with strong significance in both uptrends and   downtrends, on both HTF and LTF  .

It can provide a trader with great confluence to identify a strong trade entry or take profit.

Fibonacci Retracement is a must-have in your confluence toolset.

This series will reveal the full power of Fibonacci being applied to your analysis, study this without distraction, put it into practice, and see for yourself.

Divergence is one of the most effective indicators when used well and is the most common market conditions indicator that provides a reliable trading signal for a reversal. However its also fought with risk as well. 

The concept is simple and that’s why its like by traders all over. The signal of the upcoming price moment appears from this divergence. The indicator can only notify you of over bought or oversold or exhaustion conditions on the horizon using a oscillator type of indicator, Convergence is another.

To learn more about Divergence or Convergence, click on the button below.

Mandatory Subject as its the basis for all charts and trading.

Elliott Wave Theory was developed by Ralph Nelson Elliott in the 1920s. Its a theory based on observation of the financial markets with characteristic movements that repeat. Hence he called these movements “waves” due to the highs and lows and cyclical up and down motion. In total there are 13 major Elliott wave patterns. Here we will only provide an introduction, enough for you to understand and for you to take it further.

This section is all about indictors and how they can be used. This is a basic introductory module for the popular indicators like the MACD, RSI, etc

The moving average convergence divergence (MACD) is a trend-following momentum indicator that shows the relationship between two moving averages (ema) of a price action. The MACD is calculated by subtracting the 26-period exponential moving average (EMA) from the 12-period EMA. The result of that calculation is the MACD line.

The relative strength index (RSI) is a momentum indicator that measures the magnitude of recent price changes to evaluate overbought or oversold conditions in the price of a stock or other asset;

The RSI is displayed as an oscillator (a line graph that moves between two extremes) and can have a reading from 0 to 100. An example is given below;

The word “liquidity” is used a lot in trading and there is a reason for it, its part and parcel of the trading environment and its real. Therefore it makes sense that you understand this factor and adopt into your chart analysis and into your trading strategy.

So what is Liquidity in general terms and what is it when it comes to actual trades ?

When one talks about price cycles in trading context, one has to involve Elliot Wave Theory, Dow Theory, Gann Theory and Wyckoff Theory, Also the likes of Jesse Livermore and Stan Weinstein are known for their contribution to technical analysis as well.

When sellers get exhausted, then demand general starts getting higher and it’s then when price breaks the resistance level. 

When price consolidates, meaning rests sideways under resistance, this is seen as bullish. There are only so many times those who short or sell, especially in a macro uptrend that eventually, the high lows gives a breakout. At times it can be a reversal, Hence one must always look at the pros and cons of each position (is it a bullish or bearish trend or market), as it could be the decider and also a low risk short at times. this is where liquidity levels come in. 

After covering the Fibonacci retracement and Fibonacci extension tool, then by combining them with levels, we can observe “Harmonic” patterns.

Harmonic patterns cannot be used on their own with fibonacci levels, even if they align correctly. What we need is context as well as symmetry between the waves. For example, AB wave should not move 20% in 1 hour and then wave CD 20% in 20 days. Time and symmetry are important factors when we look at trading these patterns as well.

Never trade harmonics with patterns alone, you need to look for confluence with other chart elements. What are these chart elements, well they are listed above. The trick is to look for certain confluences and possibly align them with a strategy of some sort.

Soon to be release here

The different types of trader determines the frequency of trading, the goals, the risk management and the tools used (strategies). Here is an introductory to the different trading styles and its good to understand what they are in order for you to align your expectations with the strategies we teach you. 

Here are the differences between the four main styles of trading: scalp trading, day trading, swing trading, and position trading: 

1. Scalp Trading

Definition: Scalp trading, or scalping, involves making numerous trades throughout the day to capture small price movements.

Characteristics:

> Time Frame: Very short, from seconds to minutes.
> Frequency:  High volume of trades, often dozens to hundreds per day.
> Goal: To make small profits on each trade, which accumulate over time.
> Risk Management: Tight stop losses to limit potential losses.
> Tools: Requires advanced charting software, real-time data, and quick execution capabilities.

Suitable For: Traders who can dedicate full attention to the markets during trading hours and have the ability to make quick decisions under pressure.

2. Day Trading

Definition: Day trading involves buying and selling financial instruments within the same trading day, ensuring all positions are closed before the market closes.

Characteristics:

> Time Frame: Intraday, typically from a few minutes to several hours.
> Frequency:  Several trades per day.
> Goal: To profit from short-term price movements without holding positions overnight.
> Risk Management:  Uses stop losses and profit targets to manage risk.
> Tools: Requires real-time data, technical analysis tools, and a solid understanding of market conditions.

Suitable For: Traders who can actively monitor the markets throughout the trading day and prefer not to hold positions overnight due to the risk of after-hours events affecting prices.

3. Swing Trading

Definition: Swing trading involves holding positions for several days to weeks to capitalize on short- to medium-term price movements.

Characteristics:

> Time Frame: From a few days to several weeks.
> Frequency:  Fewer trades compared to day trading, often a few trades per week.
> Goal: To capture gains from market swings or “waves” by analyzing price trends and patterns.
> Risk Management: Uses stop losses and position sizing to manage risk.
> Tools:  Relies on technical analysis, chart patterns, and sometimes fundamental analysis to identify opportunities.

Suitable For: Traders who cannot monitor the markets continuously but can dedicate some time to analyzing and managing trades regularly.

4. Position Trading

Definition: Position trading involves holding positions for several months to years to profit from long-term trends.

Characteristics:

> Time Frame: Long-term, from several months to years. 
> Frequency:  Very few trades, often a handful per year.
> Goal: To benefit from major price trends and fundamental changes in the market.
> Risk Management:  Focuses on broader stop losses and portfolio management strategies.
> Tools: Primarily relies on fundamental analysis, economic indicators, and long-term technical analysis.

Suitable For: Investors and traders who prefer a long-term approach, are patient, and can endure market fluctuations without frequent intervention.

Types of Exchanges

Cryptocurrency exchanges can differ significantly from one another, especially in terms of the features and options they offer. Some, for example, are set up to appeal more to traders, while others are dedicated to people who want to buy or sell cryptocurrencies quickly.

Furthermore, cryptocurrency exchanges can be centralised or decentralised.

Centralised Exchanges

Centralised exchanges tend to be operated by a company that makes a profit from the fees they charge. In this case, the exchange controls the funds, and the transactions are not anonymous since the company has to meet Know Your Customer (KYC) regulations.

Transactions are carried out using methods offered by a central authority that supervises daily operations.

A centralized exchange has the advantage of high liquidity but the disadvantage of a higher risk of being targeted by hackers.

Examples of Centralised Exchanges:

Decentralised Exchanges

Decentralised exchanges don’t rely on third-party services. As such, users control their funds, which means there is a lower risk of price manipulation and fraud.

In this case, all transactions are completely anonymous since there is no entity that needs to conform to Know Your Customer [KYC] rules.

The advantage is limited exposure to theft and hacking, while the drawback is a lower level of liquidity.

In such scenarios, one must funds in their personal wallets such as MetaMask, Phantom, Solflare, WalletConnect, Coinbase Wallet, etc

Examples of De-Centralised Exchanges with leverage options (can refer to them as decentralised perp exchanges) :

Decentralised SWAP exchanges, meaning you can swap 1 token for another:

Token NETWORK summary:

Many decentralised exchanges today cater for many network (layer 1) tokens such as ethereum, matic, optimism, solana, etc. The wallets usually cater for specific networks which are suited for specific swap decentralised exchanges. Perp decentralised exchanges are much more limited and restricted to a few networks. For example, Jupiter per exchange, only deals with the Solana network at the time of writing this up.

To purchase cryptocurrency through an exchange, you first need to register and then fund your account, which is also referred to as a wallet. You can fund your wallet with another cryptocurrency or a fiat currency. For the latter, you can use a debit/credit card or wire transfer, depending on the exchange.

You then open a “buy” order, which essentially means that you’re asking to buy a cryptocurrency. All sell and buy orders are registered in the order book, which lists how much of a cryptocurrency traders want to buy and sell in total, along with the prices they’re asking or looking for.

So, if there’s a seller who is offering the cryptocurrency at the price you want, then you will be able to make the purchase. Of course, if you set an unrealistic price, your buy request will not be filled.

Depending on your location, centralised exchanges could restrict your leverage options which can rule out futures and margin trading, leaving only spot trades.

For further information on the exchanges, it’s best you do your research on what suits your objectives.

This section is all about Risk Management, TradingView, other tools, Trading Position Size, Trading with Leverage and managing expectations.

Note: The above 8 elements are part of the curriculum to being an apprentice or trader including this module.

5 x Videos to be available here, soon.

Soon to be release here

This section is all about topics that broaden your mind on what is actually out there and reality. Being a trader means you need to know what really is taking place so you can make better decisions. 

For example, what is money, how is it created and who and how they control it.

Soon to be release here

The trading community often debates the effectiveness of technical analysis (TA), with some arguing that historical data offers limited actionable insights for successful trading. Yet, paradoxically, many traders regularly refer to past data to anticipate and plan future price movements.

Drawing from our extensive experience in the crypto trading arena, we’ve observed the fluctuating usefulness of historical data. While it occasionally assists in trade planning, its relevance can wane in certain situations. Our analysis suggests that while historical trends seldom precisely replicate themselves within a single asset like Bitcoin, retrospective examination does reveal recurring patterns and formations that can inform trading strategies more broadly. However, executing these insights in real-time poses a significant challenge.

In certain circumstances, we do notice alignment, albeit within a broader context. Understanding this context is paramount; relying solely on chart indicators overlooks crucial factors such as price cycle positioning (like Elliot wave count), prevailing market sentiment and areas of liquidity.

In light of these insights, we advocate for a nuanced approach to historical data analysis. Rather than isolating it, one should integrate historical data with an understanding of price action, market psychology, and key support and resistance levels. Ultimately, effective trading involves not just studying historical data but also discerning how to apply its lessons within the appropriate context.

Therefore, as part of our trading school curriculum, we extensively analyze charts to elucidate why prices behave in certain scenarios and identify trading opportunities aligned with established strategies. Strategies, we emphasise, are ineffective without the right context.