yuzzy 💯📈

There’s a story about a trader named Bill Lipschutz that I think every trader should know. While studying at Cornell University, Bill inherited approximately $12,000 worth of stocks from his grandmother. He became interested in trading and decided to put that money to work. Over the next four years, he grew that $12,000 into approximately $250,000. That’s over 20 TIMES his starting capital. But something happened. Bill became extremely bearish on the stock market and started taking heavily leveraged positions. He was convinced the market would continue falling. Unfortunately, the market moved against him. And within just a few days, he lost virtually the entire account. FOUR YEARS of growth wiped out in DAYS. Now, here’s the interesting part. That wasn’t the end of Bill Lipschutz. He went on to become one of the most successful currency traders at Salomon Brothers, generating enormous trading profits for the firm. But there’s something important I want you to take away from his experience. You can spend years developing a profitable trading system. You can understand market structure. You can have an incredible win rate. But none of that makes you immune to poor risk management. One badly managed position can undo years of progress. And sometimes, the difference between a trader who survives and one who doesn’t is simply knowing how much to risk. Always have a fixed risk. Never risk beyond your appetite. Never assume something can’t happen in the markets. Anything is possible in these markets, including the things you believe are impossible. Protect your capital at all times. You need it to trade tomorrow.💜

If you’ve struggled with technical analysis for a while, I want you to understand something. Technical analysis is arguably the easiest of the 3 major pillars of trading. 1. Technical Edge (TA) 2. Psychology 3. Risk/Money Management And I’ll tell you why. When it comes to technical analysis, the market repeats certain behaviours over and over again. One of the most important things you need to understand is how price moves between Internal Range Liquidity (IRL) and External Range Liquidity (ERL). IRL → POIs & Inducements. ERL → Old Highs/Lows, DOLs & Structural Targets. Price constantly seeks liquidity.‼️ The CISD (Change in State of Delivery) is what I look for after a liquidity grab to confirm a potential shift in delivery towards external range liquidity. IRL → Liquidity Grab → CISD → ERL. This is what I consider the true DNA of price delivery. Once you understand how IRL, CISD, and ERL work together, technical analysis becomes a lot easier to interpret. The goal isn’t to memorise a thousand patterns. It’s to understand the few things the market does repeatedly. And this is one of them. You’re welcome. GM💜