Month 2 Notes: Growing a Small Trading Account
A. What to Avoid:
- Avoid Rushing for Massive Gains:
- Resist the urge to quickly accumulate significant gains in terms of pips or percentage returns. Trading should be approached with a disciplined and strategic mindset.
- Avoid Exposing Yourself to Large Risk:
- Steer clear of taking excessive risks in the hopes of attaining equally large returns or profits. Prudent risk management is vital for long-term success in trading.
- Do Not Underestimate Small Risk Trades:
- Acknowledge that even small-risk trades can contribute to the growth of your trading account over time. Consistency is key.
- Avoid Sacrificing Trading Equity due to Poor Planning:
- Ensure that your trades are well-planned and executed, and avoid actions that could jeopardize your trading equity unnecessarily.
B. What to Aim For:
- Realistically Anticipate a Favorable Reward-to-Risk Model:
- Develop the ability to predict and assess trade setups that offer a favorable reward-to-risk ratio, ensuring that potential gains outweigh potential losses.
- Prioritize Risk Management:
- Emphasize the importance of managing risk in trade setups. Learn to protect your capital and prioritize risk control over potential rewards.
- Identify High-Reward Trade Setups:
- Seek out trade setups that offer a reward that is at least three times the potential risk or higher. Aim for trades that provide a substantial upside compared to the downside.
- Frame Good Reward-to-Risk Setups:
- Structure your trades in a way that allows for favorable reward-to-risk ratios, minimizing the impact of unprofitable trades on your overall account.
Additional Insights:
- Leverage Compound Interest:
- Understand the power of compound interest and give it the time it needs to work in your favor. Patience and a long-term perspective are essential for maximizing the potential of your account.
- Selective Trading for High Returns:
- Focus on carefully chosen, high-quality trades rather than making numerous trades. Being highly selective can lead to substantial returns in a shorter period.
- Monitor Drawdown Closely:
- Pay close attention to drawdown, as it’s a critical metric. Minimizing drawdown helps preserve your trading capital and promotes a steady, sustainable growth trajectory.
- Monthly Equity Growth Target:
- Aim to grow your account by approximately 6% of your equity each month, emphasizing steady and consistent growth rather than erratic gains.
You can download ICT mentorship month 2-part 1 notes in pdf by clicking on the below button
Remember, successful trading requires a disciplined approach, sound risk management, and a focus on long-term sustainable growth. Stay patient, stay selective, and prioritize protecting your capital.
| ICT Core Content Moth 2 Notes |
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| ICT Core Content Notes Month 02 Part 2 |
| ICT Core Content Notes Month 02 Part 3 |
| ICT Core Content Notes Month 02 Part 4 |