WEBVTT

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You’re losing money because you trade
movement.

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You see a green candle, you buy.

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You see a red candle, you sell. That’s not
a strategy. That’s a donation. I don't
trade movement. I trade setups.

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My entire framework is built on three things.

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If one is missing, I don't take the trade.

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First, I need pressure.

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I want to find where someone is forced to
act. Forced to sell. Forced to buy.

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This isn't about predicting the future.

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It’s about identifying trapped participants.

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Breakout buyers underwater.

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Shorts squeezed on good news.

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Options dealers forced to hedge. Pressure
is the fuel.

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Without it, the market is just noise.

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If I can't identify who is about to be
forced into a bad decision, I do nothing.

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Second, I need structure.

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Pressure tells me a move is coming.

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Structure tells me exactly where I am wrong.

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Structure is a hard line on the chart. A
prior day’s high. A VWAP level. A gap
fill.

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It’s my invalidation point.

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Before I ever think about entering, I must
be able to say, “If price does X, I am
wrong and I am out.” If you can't define

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Finally, I demand asymmetry.

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This is where the money is made.

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It’s not about finding trades that could
go up a lot.

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It’s about finding trades where my risk is
small and my potential reward is large.

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Can I risk twenty cents to make two dollars?

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Is my stop—my structure—tight?

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Is the path of least resistance clear if
the pressure builds?

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If the risk is a dollar to make a dollar,
I pass.

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The market offers better odds than that if
you’re patient.

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For example, a stock fails to break out
over $100.

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All the buyers at $100.05 are now trapped.
That's the pressure.

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The structure is the $100 level.

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I can go short and place my stop at $100.20.

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My risk is defined and small.

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The asymmetry is betting that those
trapped buyers will be forced to sell,
pushing the stock back to $98.

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I'm risking pennies to make dollars.
That’s a setup.

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Anything less is a waste of capital.