Introduction
Chapter 1
Introduction
Introductory Thoughts
There are a million ways to make money in this business. How else could overtrading be such a problem? Making the money is easy; keeping it is the hard part.
This playbook is a top-to-bottom look at my approach to the markets—from specific components of particular setups to my entire mentality and process behind it all.
This will not be trading 101. I will not be touching base on any basic terminology regarding orderflow or trading in general. You will be best served by getting acquainted with orderflow terminology and references before diving into this—or by searching them up along the way.
I want to begin by noting that there isn’t a singular, most perfect, and practical strategy that exists in trading. The unfortunate reality is that, on the path to mastery in trading, one must also find mastery in oneself. Each of these cannot work without the other, and most approach this journey very inefficiently.
It isn’t a matter of finding a good strategy—there are countless good strategies that can work very well. It is a matter of being able to match a good strategy and overall market approach to your true personality (your strengths, weaknesses, demons, etc.), not trying to ram through the wall and “defeat” the demons just to make a strategy work.
I’ve found that the best approach is to find a way to be able to keep the windows closed on them and navigate around them. Do not go chasing the ghost of perfection. Doing so will simply keep you stuck in the hamster wheel.
The Process — What Works for Me
I’ll be the first to admit that my overall approach to trading isn’t the ideal one that you might hear from “professional” traders on the internet or in a trading book—but it’s the one that works for me.
What may work like a dream for me may be a nightmare for another trader. It’s all about one’s personality and goals for their own personal trading. While I have countermeasures in my process to prevent certain mental windows from opening, or to sustain a better quality of life, those same countermeasures may be completely useless to the next trader—or even hinder their ability to perform at their highest level.
Freedom of Time
I share a goal that most traders share—true freedom of time. Ironically, I find that most tend to lose sight of that particular goal, to the point of it becoming a mere afterthought.
For me, it is the driving force of my trading approach. Trading is my vehicle to be able to fully utilize the very currency that we’re not only blessed to have, but can never get back. True wealth is not one’s monthly P/L—it’s the opportunity to freely allocate our time in whatever way(s) we choose.
My Trading Schedule
With this in mind, most of my trading takes place after the IB (Initial Balance) closes. My trading sessions are generally about an hour long. Some days it can be as short as 10–20 minutes, depending on how lucky I get with market timing.
90 minutes would be an extended session, and anything beyond that would mean that the market isn’t exactly going my way and I should probably just call it a day and come back the next.
I’m not looking to extract profits from every market wiggle—why should I stay on the charts longer than I need to? I’m a scalper, which means I can find plenty of +EV opportunities in any given period, in any given hour.
We trade a highly leveraged product where P/L is tick by tick. It’s best not to approach the markets with a scarcity mindset. The markets aren’t going anywhere—what am I in a hurry to do, exactly?
This Approach Achieves Two Things
I can choose to deal with the markets on my own time, which means I can still get ample sleep to keep my performance sharp.
I can sustain a very healthy social life. This, to me, is a huge component of true wealth.
Having these two luxuries makes my entire process much more sustainable over the long term. I’m primarily a scalper who doesn’t stay in trades for very long. If all I need is an hour in the markets to do my work on a consistent basis, why would I allow someone else’s arbitrary set of rules to dictate my life around trading?
My quality of life will always be my biggest priority.
The Work Behind It
Now, this isn’t all to say that I haven’t put in the work. I, like many of you, have long endured the sleepless nights, the tired mornings, the “I should probably just quit” moments.
I spent the beginnings of my trading career getting to my desk anywhere from 5:30–6 AM on a daily basis. I spent months studying how the overnight activity translated into the premarket, into the open, and into the close—day in and day out.
This doesn’t mean simply watching it all unfold live and in real time—this included constantly replaying multiple sessions over and over as the markets were closed.
When I say I studied, I mean I studied. I replayed countless pivotal moments in the markets over and over to build up my own pattern recognition with the DOM as best as I could—to spot certain nuances, key factors, and components that can lead to a potential outcome, a turn, or an opportunity.
There are many intangibles that are developed over time and experience in the arena—hence the “vibes trader” joke. This playbook is my attempt at making my own edge as clear and concise as I possibly can.