The Hack That'll Help You Win More & Win Bigger

Straight up until you hit the buy side liquidity. Price moves straight up pretty much for a period of 1 day and 8 hours where you— What's up guys, welcome back to another video. Now this one's going to be a pretty quick one, but I just wanted to make a video to give you a little hack that you can use to not only massively increase your win rate but also massively increase how much money you make while spending much less time on the charts and much less energy and emotions wondering if you made the right decision or if you made the right call. I know this sounds very good to be true, But this is one of those very simple things that eludes the minds of many. And once you learn to see this concept on the chart, you will never look at the chart the same way again. You will actually get the results that I promised just now. And by the way, before I get into this video, if you don't know who I am, my name is Xuan. I'm on a mission currently to create the world's best trading education suite by making trading easy for everyone. And now let's actually get into the video. Now the premise of this video is really simple. It's The idea that we want to always be trading expanding markets, or rather expansions, and we want to be trading in trends. Because not only when the market is expanding, we're gonna get a way bigger move compared to if we were trading in, for example, a ranging market or in some kind of retracing market. But secondly, when we are trading with the trend, not only are these expansions going to be really powerful, they happen really quick and they're usually very high probability. Like there's no room for doubt. You don't have to sit there and wonder if you made the right call or not. It just happens. And when it does happen, happen, you know, you get a lot of profit. And the reason why this is important is not only for the amount of money that we're making, but for another very important reason, and that's something called mental capital. Think of mental capital as like your emotional battery. I don't know if you've realized this before, but every time you go through like a rough patch in your trading, you're— not only do you feel, you know, really horrible, but your future decisions, especially if you take them in the same day or within a very short time span, they tend to be pretty Terrible. Like, the quality of your decision-making just sort of goes down, and that has a lot to do with this thing called mental capital. And this is something that isn't discussed enough, in my opinion, because having enough mental capital is literally one of the most important things that allows you to, you know, consistently make good trading decisions. Now, as I've mentioned before, this mental capital thing is a lot like a battery, but the problem is that most people don't really— well, first of all, it's probably your first time hearing The word mental capital. And number 2, most people seem to just shrug it off and like, hey, it's nothing important. But it's really important that you maintain the integrity of this emotional battery. And some of the ways that you can do that is going out on walks in nature or just spending time in nature, like on the sand, getting some sun. You could go play sports, exercise, get your body moving. That's how you release those endorphins that make you feel good and also, you know, reset yourself, you know, mentally and physically, and, you know, spending time with loved ones, doing just hobbies. And again, like, this is one of the reasons why it's so important to take a break in trading and why if you go too hard on trading for too long, like, it's one of the easiest things to get yourself burnt out from because trading is such a high-impact, high-intensity emotional activity where, especially if you're a beginner, when you take a trade, like, chances are you're not— you're probably not very calm. You're probably going to check the charts every 5 minutes or 15 minutes. And you're going to have some pretty strong emotions, especially if the price is moving against you. Sometimes even if price moves with you, like in your favor, you're still going to feel really strongly about that. And every time you expend some kind of emotional energy, you are draining your mental capital. Now, the reason why I gave you an understanding of mental capital first before jumping into the technical know-how of, you know, how to trade and find expanding markets is because expanding markets and trending markets, they move pretty much in one direction straight. Like it could be either straight up or straight down. It doesn't take very long for them to go straight up or straight down. The win rate is usually a lot higher, high probability, and the amount of money that you do make is a lot more because the move tends to last for a lot longer. And all of this combines to a package that helps you go through your day-to-day trading life without taking much of a toll on your mental capital. And this is how you're able to show up to the markets day in, day out, not only make a ton of money, but also you're able to do this sustainably and consistently. Now I know a lot of you might not be at that point yet where you're worrying about consistency and you're just trying to get to a point of profitability, but still this is something that will aid you on the journey even to just profitability. And now we're gonna get into the actual technical know-how of, you know, expanding markets and trending markets. Now, first of all, before I actually teach you how to trade this, you have to first learn how to identify what is a trending market or what is an expanding market. And all I need you to understand, it's gonna be very simple, is that at any given point in the markets, there is always some kind of higher timeframe target that the market makers are looking at, and they're programming the algorithms to deliver the price to. I know that sounds like a mouthful, but all you need to understand is, for example, let's go back to TAO right now that we're looking at TAO. Let's just go back to this point for a moment. Now obviously we have the benefit of hindsight, we have pretty much a crystal ball, we know what happened in the past, but I'm just trying to teach you this thought process and this framework so that you can apply it to any chart. And then later on I'll actually apply it to a live example. So Right now at the price that BitTensor currently is, you have a range low and you have a range high, right? You can almost say that BitTensor is trading like for the most part between these 2 levels where the price action is pretty much concentrated between these 2 levels. And so at every given point in the market, when I say higher timeframe target, you just need to wonder like what is the next step? Instead of looking at price where it currently is now, think one step ahead, right? If you were a market maker, let's look at, you know, consider everything in the big picture. Like, where would I want to move the price to next? And given the fact that we have the benefit of hindsight, we know that the market's going to go up. The thought process behind this would be, okay, not only are we trading in a range right now, the fact that the range low is taken out already means that there probably isn't too much more liquidity left to take in terms of the sell side. In fact, if we just go to the past, there is nothing, literally, quite literally nothing beyond this point. So We are at the lowest point of the chart already. Anybody that went long at any point in the chart, like quite literally at any point, if they were to place their stop loss beneath the all-time low or when the token literally got released, they would've gotten stopped out either on this move or this move right here, which means that more likely than not, okay, understand the thought process. I'm trying to make an educated guess on where the market's gonna go next, right? This is something known as your higher timeframe bias. And so I do think that Based on an educated guess. And by the way, you will get better at this the more you do this, right? But for now, just understand the thought process. I'm trying to teach you how to think here. So given the fact that this sell-side liquidity gets swept over here, you know, more likely than not, the market's probably gonna go up. And where? Well, let's look at the buy-side liquidity. You have one over here that hasn't yet been swept, and then you have another one here that also hasn't been swept. So let's just mark it out for the sake of this video. And of course, if you zoom really far out, Like really, really far out, like you're basically looking at the previous all-time highs. But for now, for the purpose of this video, we're not gonna look at that. In fact, isn't even relevant to us really, because like I'm on, I'm looking at a 1-hourly timeframe here. Like sure, I'm 100% confident that Bittensor will eventually get back to $800. And in fact, it will hit more than $1,000. Bittensor is one of my top picks for the AI supercycle that is, that I believe is coming. later on this cycle. But still, I'm on a 1-hourly chart here. It will eventually get to those points. But for me, looking at a 1-hourly chart right now, it's completely irrelevant. And there's a fine balance between not zooming out enough so that you don't have a good understanding of the big picture and zooming out way too much to where like it's completely irrelevant to you. So, you know, educated guess, I do think that price is gonna go up to here and here. Now, not to sound like a broken record, we do have the benefit of hindsight so we can see that eventually BitTensor did come to this point. Now, the reason why I share with you the higher timeframe bias and why this is so important to trading in expanding markets and in trending markets is that first of all, we need to have a target or we first need to have a direction before we can even determine what is an expansion and what is a retracement. And just to give you a good understanding of the market phases, let's say that this is the target and this is, well, let's say it's a range low, right? This is going to be a masterclass, a very quick masterclass on what are market phases. If price is approaching the target, This is known as an expansion. Now, you know what is a consolidation and you know what is a retracement. So this one would be expansion. And then once the target is hit, and let's say that this becomes a new target, this move here becomes the reversal. So there are 4 phases in the market that could happen at any given time, right? So this would be your consolidation, as mentioned beforehand. This would be your expansion. And the reason why it's expanding is because it's moving towards the direction of the target, right? So this would also be an expansion. And once the target has been hit and it's hit a point where you're expecting some kind of reversal, then it becomes a reversal. Now, the same is true assuming that we know that after the range low, let's say based on our educated guess, we think that the market is going to go back up to the range high, then this again once more becomes your expansion, right? So these are the 4 market phases, and I hope you're starting to get a picture now of what I mean when I say expanding markets. The reason why we need a higher timeframe bias is to determine the direction and the target so that we can determine in which direction is the market going to expand into. Now, one thing That's very important to note, and I will show you an example later. The reason why expanding markets are so much better than retracing markets is not only the fact that retracing markets quite literally don't give you as much gains for the same amount of movement. Now, expansions are usually delivered in a way that it's twice the order of magnitude of retracements, and most often it can be a lot more. Not only does it move a lot more compared to retracements, but it also does so much faster. Usually in half the time of retracement. And again, it's high probability. You already know the target, right? Or you already know the direction. Right now you're just trading with the trend. So again, I've talked about the importance of trading, you know, with the trend and trading expanding markets, but I'm gonna show you a couple of examples of, you know, retracing markets versus, you know, expansions. I want you to just pay attention to this move right here. And let's study all the pumps and let's study all the, you know, the retracements, right? So in 4 hours it goes up by 7%. In 3 hours it retraces by 3% just to go up again within 3 hours by 11% to retrace, let's say over the next 14 hours for half the movement. And then again, you pump to, let's say here, which is an 11% pump over the next 4 hours, 14 hours, sorry. You retrace by 5%, again, half the amount of order of magnitude, but same time taken. And then boom, once more. Like, I think you're starting to see the picture here of like the power of trading with the trend where not only way shorter timeframe, but way bigger, you know, And much more certainty. And when you trade this way, it's really brain dead because you can literally just, you know, if the market is going up, you can quite literally just buy the dip. And if the market's going down, well, you short the pump. Now you might be wondering at this point like, hey, how do I determine what is a retracement and what is an expansion? Well, the answer is very simple. Expansions always target some form of liquidity and retracements are always targeting some form of PD array. Now, I know that sounds also kind of like a mouthful, but I'm gonna explain it now. Liquidity, like at every point in the market, you have buy side liquidity, which is essentially just swing highs. Like it's a fancy way to say swing highs, but at the same time, I don't wanna just say swing high because then I'm failing to paint a good picture of why, you know, I call it liquidity and how liquidity is the mechanism behind how the markets function. And underneath every swing low, you have sell side liquidity. So this is your BSL, buy side liquidity, and this is your SSL, right? Sell side liquidity. Very simple. So Notice how if my direction, right, let's say my higher timeframe bias, my direction is towards the upside. Notice how every expansion goes from quite literally some kind of retrace, like some kind of area to target some kind of liquidity, right? In this case, this would be buy side liquidity straight up until you hit the buy side liquidity and then you sort of chill out. Same here. Like from here you move straight up until you take out the buy side and then you sort of chill out and go into a retracement. So once more from here, To here, you can see that this is also a buy side liquidity. Price moves straight up pretty much for a period of 1 day and 8 hours where you pump 20%. You take out that liquidity and then boom, you go for a retracement. Now hopefully you understand what is liquidity. Just think swing highs, swing lows. Retracements, on the other hand, always target some kind of PD array. PD array is essentially if you draw a fib, right? I'm sure you guys have heard of the golden pocket before. The golden pocket is known as a type of PD array. PD array, by the way, means premium discount array. Again, it's a very fancy term to say retracement area. And usually this comes in the form of a fair value gap, an order block, or just the golden pocket. So just to give you an example, within this move here, notice how from this low to this high, price retraces back into the golden pocket, right? So that's a PD array. Once more, let's say the move starts from here to there. Price takes out the liquidity. Remember earlier on I mentioned expanding takes out liquidity. After you take out the liquidity, you retrace back into the golden pocket. Now, Those of you who don't know what are order blocks, like, you don't have to get into the thick of things. Like, usually when we're dealing with PD arrays, when we're looking at fair value gaps, and when we were looking at order blocks, we usually look for them to happen within the golden pocket. So for now, like, if I start talking about order blocks and if I start talking about fair value gaps, this video is going to be way longer than it needs to be. But for now, just understand that PD arrays are some kind of retracement area. And the easiest way that you can learn retracement areas is just use the 0.705 retracement, 0.618. So The next time you find yourself targeting some sort of, you know, retracement area, meaning let's say if I were to, you know, take a short here, right? Say I take a short here, I place my stop loss above the wick. And if I find myself targeting the, let's say the 0.618, for those of you who are familiar with the Fib, the 0.618 is the golden Fibonacci zone, right? And we're most often taught to, for example, buy or sell at the 0.618 for very high probability trades. Meaning if we are bearish, we wanna be selling the 0.618 of this range, right? This high, this low. Mm-hmm. We wanna sell at the 0.618, but if we're bullish, we want to ideally be buying at the 0.618. Now let's say that you predict that some kind of retracement is going to come. So, okay, like I know the market's probably gonna go down, so why not take a trade to target, like let's say, and usually the thought process when you find yourself taking any retracement trade, and I'm gonna break it down for you because I've been there and I've seen like so many of my students do it that at this point it's like I, I know exactly what's going through the thought process when you're thinking of this. I know. for a fact that the market's gonna go down, you know, in the immediate short term, but in the long term, right? I know full well that this still looks like a pumping market, right? This still looks like an uptrending market, but you know, I don't really have any other trades right now. I happen to be looking at this chart and so, you know, why not? And so you take retracement trades just to learn the hard way that not only are these much lower probability trades, these usually take way longer to play out for much less gain, right? Just to give you an idea, This is how much, you know, potential reward that you're expecting versus a potential reward like this. Quite literally 3 times the reward. And so the next time you're stuck wondering like, you know, why is trading so hard and why am I feeling so terrible about all the decisions that I'm making? Well, just ask yourself this. Are you trading a retracement or are you trading an expansion? If you're trading an expansion, a really good sign you're trading an expansion is that, you know, it's really pain-free, right? You're not doubting yourself. Things are happening, things are moving, you're in good money, especially if you read the direction right. And like, yeah, you know, life's just good. Trading's easy, you know? Actually, like, trading's easy. You know, who said this was hard? I'm sure you felt that way before, and that's probably because you were trading an expansion and not a retracement. And again, the way you determine the expansion is just looking for the higher timeframe bias and make sure you're trading in line with that direction. Okay? So the next time you find yourself targeting some kind of PD array, just understand that you're trading a retracement, that you're far better off not trading at all and just waiting for some kind of, you know, retracement level that's in line with the trend to get hit before you start trading. Otherwise, you're going to be stuck in one of those trades that, you know, really make you question The meaning of life and really makes you question whether or not you have like a below average IQ. And like, it makes you question if why does trading feel so hard when everyone else seems to get it? And by the way, guys, if you truly believe that trading is able to give you the freedom that you deserve to allow you to work from anywhere and still make a really good living, but cannot for the life of you figure out how to make this work, I want you to click the first link in my description box below. Now don't worry, it's not some $997 course. It's just a website that shows you how my company is able to help you solve the problem. Now, I don't really mind if you click or not, but for those that this is relevant to, and if you'd like some help fast-tracking the learning curve on trading, then check it out. But otherwise, if you found value from this video, drop a like. It truly does make my day. And if you wanna see more content like this, make sure you subscribe. And, and if you want me to make a video on a topic that you'd like covered, then drop it down in the comments section below. But otherwise, thank you so much for spending your time with me. I truly appreciate it, and I hope that you have a wonderful day ahead. Cheers.