Hello, my name is Sean Vengan and today is the 1st of august 2017 or flag day as the Bitcoin community like to call it Now the struggles that traders face is losing money and not knowing what to do being proven wrong on a regular basis is an uncomfortable feeling and the intuitive Reaction is to bury your head in the sand and hope that price will return to your buy or sell price That you may recover your money and break even now some of you may have heard the acronym Mma Mma stands for mixed martial arts Now what if I said to you? You don’t have a choice. I want you to go three rounds each round is three minutes? with a professional MMA fighter Your response will probably be are you crazy of course no, and I say why not? Well you say to me. Well. I’m not trained. He’s a professional fighter Well, that’s exactly what you’re doing when you start trading in the financial markets there are trained Professional traders who are going to eat you alive and the less you prepare yourself? You are going to lose a lot of money So in today’s video. I’m going to show you a three-step plan that I’ve been using for the last 10 years That not only keeps me safe, but also makes me consistent profits So without any further ado, let’s go straight to the explanation We’ll start by going through the steps and then I’ll go through an actual example to show you how this actually works Step one. Is there a valid set up and is it with or against the trend Step two is it worth risking my money to take this trade Step three, how will I manage the trade? Now before we discuss this trade and the implementation of these three steps I want to make it clear that I am a trend trader That is to say 85% Of my trades are with the trend Now if you don’t know what a trend is then go back to episode 10 And you’ll see a clear explanation in the video there You will need that in order to follow what we’re going to say now currently we had an ABC Correction over here and Then we reached a higher high and I was looking for a high low This would establish an upTrend now I’m happy to get in long on an upTrend, so my entry point would be the break of this high and My Stop-Loss would be the break of this low So let’s review that in relation to Step one Is there a valid setup? Well my valid setup on this particular example was I had an ABc Correction and I was looking for the train to resume again when we had a higher high and a higher low and Then I also saw the momentum, which is the bottom indicators going positive I Now have a valid setup. So just to confirm. I had an ABC correction I had an uptrend confirmation and I had momentum going positive So the minimum Criteria for me is I have to have three things going for me before I take a trade that Means my probability is much higher than if I were to just jump in and take a trade Now as you can see it is with the train because we’ve got a higher high and a higher low so that’s that one taking care of Step – is it worth risking my money to take this trade Well now we’ve identified our entry and stop-Loss we now need to look at our targets as You see on here. I’ve identified my targets Target one two and three So we now can define what our Risk reward is Our stop loss is placed over here Was a cross So on the braking of that low bar our entry was on the braking of the high and Our Target is Target one Target to Target three so target three Gives us a risk reward Ratio of Roughly four to one So is it worth risking my money to take this trade yep? I believe four to one is a good risk to book reward finally step three Let’s talk about Managing the trade how will I manage this trade? Well the there’s a whole area that we need to look at managing the trade and This is where you lose or make money. So you really should focus on this step three So step three we can break down into three categories One is pre entry The next is post entry and finally there’s post exit The questions, you should be asking at three entry level are as follows How much am I willing to risk on this trade? What is my entry point? Where is my stop-Loss? Where are my targets or targets? Where is my Break-even point? So let’s have a look at those questions. How much am I willing to risk well that depends on your capital and How much you’ve allocated to this trade? Each person is different. My risk will be different to your risk Where is my entry point? My entry point is here where I’m pointing to and my stop-Loss is here where are my targets Target one Target to Target three and Where is my break-even point now in terms of Break-even Point it will vary? But in general I would say that as soon as I hit Target one I want to bring my stop loss as a trailing stop loss To Breakeven points which is Entry point plus commission In this way, I am not risking any money whatsoever And it doesn’t matter if the trade comes back on me. I will have lost nothing whatsoever And all and if it goes good Then I can write the trade and bring my trailing stop up and up and up until I reach a profit post Entry Here we ask the question Is there a structure change now? We know we’ve got a higher high and a higher level we’re looking for that to keep continuing Higher highs higher lows if it breaks that structure that’s a warning sign And it’s a sign that we should be coming out of the trade How can I reduce negate my risk well as I mentioned to you once I hit Target one. I’m looking to Bring my stop loss as a trailing stop to break-even in that way. I don’t lose any money whatsoever Then there’s also the other side of the coin if the trains trade is going well What you want to do is add to your position So you want to take an additional position in order to compound your profits? The best traders compound their profits, and that’s how they make big wins and have small losses post exit What you need to do here is essentially review the trade How did I do on the trade? How well did I stick to my plan? What did I do right? What did I do wrong? Are there any lessons I can learn for future trades? So there you have it step one step two step three If you follow this formula that I’m giving you You will be a long way ahead of many traders who have no plan I have no organization no discipline and no control and in this way you’re managing your risk and they are in control of Yourself and not subject to the markets controlling you now if you want a copy of this infographic Then what I want you to do is register on my website Crypto trading mastery calm, and I’ll send you a copy of this and Please don’t forget subscribe to my you Tube channel and Facebook and Twitter groups Press the notification bell so you don’t miss out on vital information like this Now I hope you’ve learned something today. Thank you for your time. My name is Shawn Vengan bye. Bye now you


  1. I definitely learned something today.
    How should i set CCI indicator? What CCI length are you using for long trades?

  2. Thanks for the video, I just had a question in reference to your statement on 'compounding your profits.' In your illustration, say you achieve TP1, you're saying that IF you don't see signs of a trend reversal, that you should buy more? Thanks again.

  3. Great work Sean Vengan. I have subscribed to your channel and email. Your explanations are very simple for us beginners. Looking forward to subscribe to your membership plan once you launch

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