Forget setups! The 13-step trading framework world champions ACTUALLY use

The red line in trading.

You have to know, if you will get success in trading, you have to use the right stations and way to become success. You have to know, you have to choose different models for different psychologies. This is the way you have to use in the future, and this is the way what I will explain you today. Not one setup is important for you, no. You have to know step by step what you have to do. Who I am? I'm Thomas Forwald. I'm the trading World Cup Champions maker like Patrick Nill or other big, big traders, and you can trust in me. This is the way what is working for you.

Look, even if some of you are bored now because you're saying, I just want to see a cool setup, wouldn't it be truly valuable to learn a professional approach to the market? What patterns and key figures do I really need to look at to plan my trades perfectly? And that's exactly what I want to do with you today. I want to show you how we at Trade the Traders approach the markets and what the essence is for us to make the whole thing sustainable and replicable. And I can tell you, this video is by far the most valuable video you could have ever received here because it gives you a very clear guide on what criteria to use before and after your trading to approach the markets, trade trade plannably and have logical consequences that will arise from it. I've prepared a 13-point plan for this, and I want to go through it with you today so that you're able to understand for once how do we approach the markets. Because it's absolutely not enough to just go to the market and say, oh, I understand the market anyway. Yes, it may be that you have a good basic feeling for the markets, but woe betide if something changes. Woe betide For example, if we enter a market phase like with Lehman Brothers or something, where suddenly the big crash happens, then you'll face very big challenges because then what worked before won't work anymore, what might have gone quite well in the last 2 or 3 years. And that's exactly why— take the common thread and let's see how we can construct it together. Let's go through that relatively quickly. The first thing I look at in the morning is what news is coming out today. The second thing is, will I even trade today? Or have such groundbreaking things happened overnight that brings us to the gap, so I'd better stay on the sidelines for now? Because one thing you can be sure of: if you want to make money sustainably in trading, it won't do you any good to try and earn more in extreme situations. What market structure is currently prevailing, and what profile shapes do I have in the weekly? Yes, I'll show everything in more detail in a moment. Business zones, what are they anyway? What purpose do they serve me? And have I received a roadmap for the day? What setups? And now you see, only at point 8 do we look for setups. Do I need to implement my roadmap exactly? And what does the market opening look like? Does the market opening, the trading opening at cash time, perhaps give me further clues that help me plan the market correctly? Emotions and risk management. Yes, that has to be 100%, right, to then really have a better added value than many, many traders out there who are often very unclear about their key figures. And last but not least, many don't feel like doing it. That's journaling. That means you really have to track your trades. Let's start with the news. The news is only interesting to me in that I look at which news will be released today, and if I see, for example, okay, at 14:30 the GDP for the fourth quarter is released, then I know that's a really important piece of news. And what do I do then? What do I do with this information? I simply mark this information in my chart to know that important news is coming. And am I prepared for this message? Now, that doesn't really play such a major role at first, but it simply gives me the hint that during this time, as a day trader, I shouldn't necessarily have positions open. Because when the GDP is released and there's a deviation, the higher it than the forecast, it leads to major movements. In the next step, I look at how gaps are currently structured before I start trading, and the gap shows me exactly where supply and demand are out of balance. And then I simply go and see what category of gap I have. Is this a gap that is highly likely to be closed technically, or is it a so-called breakaway gap? That means a gap that jumps away from the market and has simply left a long, long, long phase before it. But now the following is very crucial: to really evaluate this gap cleverly, I must in turn know which news this gap is based on. And I had already explained that to you in a previous video. Which news is really crucial? Central banks, if they turn something special, or economic growth, or inflation data. Those are gaps that are usually sustainable. But if a gap is driven by political markets, for example, then it's allowed to look like that, but the probability that it will be closed again is high. So always write it down and learn what the structure and the fundamental story behind a gap is. And if you don't feel like doing that and you do gap trading, then you'll see that every 5th or 6th gap is suddenly no longer closed. And if you then have such a great martingale system, oh, oh, then it gets really, really expensive. Let's come to point 4, market structure. Yes, what do I mean by that? In the end, I simply look at a period of time that is currently important to me. Where are we in balance, or are we currently in an active, aggressive trend? And then I look at where the current price is, and if I know a little bit about the markets, then I can immediately categorize it for myself. Is the probability currently rather higher for counter trades? Or is there a high probability that we'll now return to an old structure where the market might trade through really quickly? And that naturally gives me information on which trading style I should prefer right now. In the next step, I look at the weekly profiles. But what kind of added value does that give me? The weekly profiles show me immediately if the VPOCs are rising, staying the same, or even falling, because often you have huge profiles, but at the top and bottom, the big market participants had had no interest at all. That means try drawing a trend based only on the VPOCs and the value areas, and you'll find that you can immediately see if a market is flattening out in terms of global money flow or not. Look at the lows, look at the highs, and you will get information on whether these are weak, meaning dominated by small traders, or strong, formed proactively by large market participants. That also gives you a lot of information that helps you assess how stable this trend currently is. And that's all I need to get an overview from a technical perspective of what's going on. I can then form wonderful zones from that. And as you can see here, it's a beautiful trade opening and closing of a zone, and then the gap is closed. Now, why is that? Because this gap also simply had an origin that wasn't shaped by fundamental news, and it helps me to know that I can now plan a longer period for myself from point A to point B. and that helps me incredibly in day trading so that I just know the market will most likely strive upwards again for now. Let's move on to the daily business zones. Well, what is that exactly? The question is always, how do I determine support and resistance? What are just targets and what are truly smart areas where I can use counter setups? How do I derive them from the corresponding value areas in combination with other possibilities that show me who dominated the market, where and when. And then I wait and can clearly plan that a market will run from A to B or continue in a certain direction. I can clearly plan where I want to trade at all and which direction is dominant for me. And when I combine these things for myself, I simply have a huge added value for my trading. And then we're at point 7. And I create my daily roadmap, and this roadmap looks exactly like what I determine for myself from the business zones. I know exactly where I expect a fast movement, for example, where I expect a sideways movement, and where I expect the market to continue long, whether it's trend or balance, because I have to use different setups there. And that is absolutely crucial, and we're getting to that now. The topic of setups is very often way too overrated, yet it's only essential to know which setup I'm looking for where. And for that, I need exactly this roadmap. Otherwise, I don't know where to look for counter setups or where I can look for trend continuation setups. And I'm sure you know this, you have a setup that works great in some market phases and not in others. And with this, you're able to use this matrix to know exactly which setups to use where, and that is quite eminently decisive. And now we come to point 9. And later you should go and maybe look at this again in sequence to see if it's really helpful, because now we come to the market opening. That means the market has opened its trading, the cash session is running, liquidity is entering the markets. But what should I pay attention to now? I know, and I'm familiar with all these different market opening variants, but two things are always dominantly important to me. Is the market opening range very large? Or is it very small? And think about it, if something is very narrow but liquidity is the same as in the previous days, then the probability at a later point in time is much greater that the market will trend. And if you put that into context and you're planning a balance day, for example, but you see at the market opening everything is different, your result can be many times better because you know exactly, now I'd better stay out of the trading day. And if you go further and look at your risk management and your emotional state accordingly, that is, do I feel good? Am I in a good mood or am I having a crappy morning? Well, then you can start trading and go into implementation. And now comes the last point, which is very, very important, and that is journaling. Because here a lot of people make a huge mistake and document all their trades together. They then get a hit rate that leads to you not knowing at all. If I analyze breakout trades, for example, And if I then go and say, well, now suddenly a counter trade comes along, and now suddenly a trend continuation signal comes along, I don't have clear metrics for the different strategies and am therefore not able to really smartly evaluate for myself which strategy is actually the one that is beneficial for me. I don't know the average risk-reward ratios and the hit rates for the different processes. And you need all of that if you want to trade sustainably. Believe me on that. And yes, so I'd like to end this and just give you the opportunity to rethink whether this isn't a smart plan for approaching the markets. I hope this has helped you out, and I would say great trades and start planning your trades better if you haven't done so already. And don't look at the setups first, but you can see it here, only point 8 is the point where you can use your setups for yourself. And it doesn't matter if they're dynamic, if they're from the order flow, if they're from the footprint chart, or if they're PBD structures. What matters is where you use setups. And that is my message to you. Please take a look and feel free to leave a like if you enjoyed this and you say, yes, that was really some great added value for me. Thank you very much for your time.