oh guys welcome back to the channnel in this video I want to share with you a really valuable lesson potentially your most valuable lesson in trading and it all stems from this trade that you're looking at right now from a trade that came up in my live session this week on the euro dollar and you can see lots of lines and you can see lots of kind of uh Target zones and predictions and things like that but I want to break down this trade and show you exactly what all this means because what I'm about
to share with you here is going to transform the way that you look at Target taking risk management and entry orders so let's get stuck in all right so the main subject that I want to cover on this video is orders all right and I want you to get your head around that all orders are orders what do I mean well I mean that your stop-loss order is someone's entry order your entry order could be someone's Target order and they're all the same thing but what we don't see is a lot of Traders they they
try and put as much effort and energy into being right and picking the best entry order but they don't do the same for their target taking and their stop loss which means they either get stopped out or they get involved with some trade that goes on and on and then they start getting emotionally involved uh or it goes against them and they end up losing over time because of that emotional turmoil so before I explain and break down the trade that we're looking at on the screen here I want to just run through some fundamentals
and some core principles around order flow and and how the market orders are placed and hopefully you can get your head around this so that when I break this down in the in the trading situation it will makes sense and if you follow this along and you apply what I'm about to teach you and you go forward in your own trading applying what you've leared here it will transform your trading not only will you have much more profit you'll also have higher probability setups you'll be right more than you're wrong you have better risk reward
profiles and you'll have much more opportunities that are high quality so I'll start by explaining why it's difficult to be a trend Trader and a counter Trend Trader okay because let's just say that you're looking for the continuation in a trend right and where you're looking to involve yourself in the market is on the pullback right now you're looking to place a buy order at the bottom and then you're looking to sell at the top for a profit now the chances of you actually picking right at the bottom and getting involved at the bottom is
Slim or it's unrealistic to expect you to be able to do that all the time realistically where your orders are going to be are somewhere on the way down where you perceive there to be some deceleration in the market okay so you're going to see something like this and you're going to get involved somewhere around here okay now imagine that you were looking to take your profits at the high right but imagine you was then looking to be a counter Trader and looking looking to involve yourself in a short as well well you're not going
to be selling the top right you're going to be looking to profit around here right somewhere around here which means it gives you this very small window for you to actually be taking targets and it's very difficult cuz the market doesn't always harmonically move like this so it's always wise to pick one over the other but the reason I wanted to show you this is because this is the reality of order placement people's stop losses are here people's sale orders are here and if you can if you can think like the other Traders and you're
looking at long-term moves say um you've got a lot of time to figure out where most people might have their sale orders okay if everyone's long here there's going to be a lot of sale orders here right if someone is a counter trend trer Traer they're going to also have sell orders here right now the same if you're looking to buy down here and go long here you might have stop-loss orders here well guess what if every if there's lots of stop-loss orders here they're sell orders and if the market starts to tank and Trigger
all these orders you you then see these big spikes you hear of stop hunting where institutions will tease that in to trigger all those orders and then it will see the market tank because all the sale orders get triggered and then they basically buy up at a much better price and then they you know they make a killing so you see all of this happen but the the the principles I want you to get your head round is order placements are subjective structure is subjective everyone's got a different idea your your job as a Trader
is to think like as many Traders as possible and pinpoint the best entry so you can get in and out as quickly as possible without all of that emotional pain so let's go back to the chart and I explain how this worked out on the euro dollar basically what we're looking at here is the flag pattern we had this flag pole we had a flag pattern uh formation and then we had an extension of that flag pole uh this was the prediction this is where we were looking at this setup at about half 7 8:00
um on Tuesday morning and then it rallied to the upside and um and took out you know took out targets now you'll notice that there's a few markups here right the first one is the stop loss the stop loss is below the flag pattern now I said to my members that I I'm going to take my first Target at this light green zone and then the dark green zone indicates my secondary targets which I I can Trail stops to or just roll my stops to break even and then just let price do its thing until
that secondary Target is hit what's fascinating is if you look at what happened here and I explain my decisions for making those positioning uh in just a moment but what what happened here look at this as we blasted out of that zone you can see the reason the reason I had my first Target here was cuz I didn't want to fight Beyond this original previous structure right this is one 2 three four tests and even on the way up look you can see that pregnant pause where we held and we respected that level that's the
sort of thing that I don't want to be in a in a trade like I don't want to be in the trade longer than I need to be and going through all this resistance and stuff that plays havoc on your emotions right so I I want to be in and out with as high probability as possible and as quickly as possible so I can get on to the next opportunity so look what happened we had that so targets came off and then we paused we held but I'd already taken my money right at that point
now what happens next is we blast through that zone pull down look at that rejection previous resistance previous resistance becomes Port right on the dime before turning up and going again and then where does it go to why did I pick this level for my next Target Two well let's look left look at this right one support resistance resistance resistance resistance resistance resistance big rejection resistance so I don't want to fight through that for my secondary targets so I place my target here my secondary Target and look what happens as we approach that level we
had this big bullish candle hit it like a brick wall right before rolling out of steam and then Target twos come off the table and then look we roll back down where do we roll back down into support resistance becomes support and then we rally again now at this point I've taken my profit I'm not capturing yes I've left this money on the table I'm not capturing any more profit but as you can see my targets were at optimal positions where I wasn't in the trade longer than I need than I needed to be I
wasn't going through oh you know imagine having your target here your first Target here and then you hit this um 55 level and you start rolling over and you're right back down here and you're oh you know I don't need to be in this and you start getting emotional or you pay excessive rollover costs you don't want to be doing that so the lesson for this is you want to be thinking like as many other Traders as possible and although yes it's important to treat your entry order with precision and be right it's also important
to treat every order the exact same way your target is someone else's entry your stop- loss is someone else's Target so you want to be putting as much energy and attention and effort and Analysis into your target taking and your stop losses as you do your entries and if you do that your trading will sore the progress and the results on your trading will accelerate trust me so I hope hope that's valuable if you got any questions on this let me know in the comments and until next time take care and I'll see you in
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