Whatever stain you dragged in today, ego leaks, FOMO splatter, hesitation smudges, or that stop-loss you placed so generously it qualified as humanitarian aid 🫡 toss it in the basket. This is where traders de-grease their brains 🧠, disinfect their delusion, and figure out why their PnL looks like a crime scene.
Because let’s be honest:
Everyone’s scaled in like a hero and out like a hostage 📉
Everyone’s watched price rocket the moment they finally gave up 🔥
Everyone’s sworn “last trade of the day” and taken three more out of spite 😑
In here, we don’t judge, we’ve scrubbed every stain in the book📕. However, if you keep showing up with the same stains, we’ll know who’s been taking the pegs.😯🧺
🧽Deep Clean 🧼
Expansion is our final of 3 market conditions.
The gun goes off. Liquidity stops drifting and starts repricing fast.
When the market finally escapes a range with real intent, you get violent moves: imbalanced candles, skipped levels, shallow or nonexistent pullbacks, and trapped traders fuelling every leg. Expansion is where accounts explode upward — or implode instantly.

🔍How to Spot Expansion in Under 20 Seconds
One-sided aggression — strong directional candles with speed.
Imbalance streaks — multiple inefficient candles in a row.
No meaningful retest — price doesn’t return to the breakout level.
Volume + velocity spike together — not just high volume, but fast execution.
Liquidity gets skipped — breaker blocks and micro-levels get run through.
🧰Prop Playbook
1️⃣ Imbalance Continuation - Enter on micro pullbacks inside the displaced move. You’re trading strength, not mean reversion.
2️⃣ First Pullback After the Expansion Candle - Highest-probability entry of the entire market cycle. if you miss it — don’t chase late.
3️⃣ Break → Retest → Go (only when clean) - Shallow retest + immediate continuation = expansion. Deep retest = not expansion.

⚠️Where Retail Gets Hurt
Fading the move because “it’s gone too far.”
Waiting for a perfect pullback that never happens.
Entering late and getting smacked by the first correction.
Using normal size during abnormal volatility.
Assuming acceleration = exhaustion (wrong in expansion).
Professionals follow momentum.Retail fights it.
✅Execution Checklist
Did the range break with decisive displacement?
Is price skipping levels, not tagging them?
Did volume and speed spike together?
Is the pullback shallow?
Is VWAP cleanly flipped and holding?
🎰House Rules🃏
Each week we’ll show the many ways prop firms tilt the odds in their favour. This week we dive into the biggest mind game of all …
💸 The Real Size of a Prop Account
Everyone loves saying, “I’ve got a $100K account.”
But if you had a real $100K and risked $1,000 per trade, you could eat 100 full losses before blowing the account.
Now compare that to a prop “$100K” account…. It comes with a Max drawdown of around $6,000 and Profit target $12,000
So you’re not trading a $100,000 account, You’re trading a $6,000 account wearing a $100K costume. Apply the $1,000 risk per trade and you’ll be crying into your Cheerios after only 6 losses. What’s the probabilities of six losses in a row? out of 100 trades it’s 50%.

📏 Your Real Risk: Only $250 Per Trade
To survive the drawdown rules, you can’t risk $1,000 a trade like a real $100K account, scale down and set a cap at:
➡️ 0.25% per trade = $250 risk
➡️ Targeting $500 reward (1:2 RR)
Why so small? Because one oversized loss doesn’t blow the trade — it blows the challenge.
🔢 How Many Wins Do You Actually Need?
To pass the typical $12,000 profit target on a 1:2 RR
Win = +$500
Loss = –$250
At a 50% win rate, a win/loss pair nets you ➡️ +$250. So:
$12,000 / $250 = 48 win/loss cycles
Total trades: 48 wins + 48 losses = 96 trades
👉 You need ~96 disciplined trades just to pass a “$100K” challenge at a 50% win rate. Not five bangers, Not one “home run, Almost one hundred clean, consistent, small-risk trades.
🎯 Core Takeaway
A real $100K account gives you room to be wrong 100 times.
A prop $100K account gives you room to be wrong 24 times (at –$250 risk).
That’s the gap nobody talks about — and why prop trading requires discipline at a level most retail traders have never practiced.
🚨🔴Skid Watch🚨📅
Overlooking red-folder news carries the same level of regret as misjudging a post-vindaloo fart. Just dont do it🍛
| Date (Dec) | Event | Expected Market Move |
|---|---|---|
| 9 | ADP Employment (-13.5K) | USD -0.3% to -0.8% on miss |
| 9 | JOLTS Job Openings (7.14M) | Modest supporting move for cuts |
| 10 | ECI q/q (0.9%) | Secondary indicator, limited move |
| 10 | Federal Funds Rate Cut | Highest volatility event of week |
| 10 | FOMC Statement Tone | VIX could swing 2–4 points |
| 11 | Weekly Claims | Minor impact unless surprise |
📈 The Washout
Markets spent the week front-running a Fed cut now priced at ~85%. Every dip got scooped, every headline got spun dovish. S&P pushed a higher high, Nasdaq followed, and the VIX slid to 15.41 — fear left the chat. However If Powell doesn’t double down on a full easing path, expect sharp whipsaws. The reversal risk is brutal. 🎢

🧼Charts Tell the Story
NQ1! kissed VAH 25,788 and stretched 450+ pts above VWAP (25,250) (Anchored to the low) — classic pre-FOMC mean reversion vibes.
Trend still 🔼 but PCR 1.5–3.8 = hedged up.
December is usually green ✔️ but VIX 15–18 = chop city.
📊Weeks Probable Scenarios
🟦Base Case (65–75%) - Pullback → POC 25,622 → shallow VWAP tap → FOMC bounce → 25,800+.“Sell the news” risk low with 86% cut odds.
🟩Breakout (20%) - 4H close > 25,788 → 26,000 magnet 🎯 …but gamma walls = don’t chase blindly.
🟥Bear Trap (10–15%) - Hawkish shock → VWAP loss → flush 25,100 → put hedges ignite. ⚡
🎙️Alternate Takeaway

There’s a plausible case for a Dec 2021 Repeat
“NQ just replayed the 2021 script 📼 almost bar-for-bar — three drives, exhaustion pop, rollover signature. If this symmetry holds, this isn’t a dip… it’s history warming up for an encore 🔁.”
💆♂️ THERAPY SESSIONS
It’s Sunday Therapy: the only room where blown accounts become educational content.
1. “I Forgot It Was FOMC Day… My Account Did Not.” 📉⏱️
“I stepped away from my ES long for two minutes. A quick delivery at the door — nothing more. When I returned, it looked like Powell had run a controlled demolition through my position. One expansion candle slipped straight through my stop and erased $18,000 instantly.A sharp reminder that news events don’t wait for you… and they don’t forgive distractions.”
2. “I Copied a Twitter Trader. He Deleted the Tweet.” 🐦⚠️💸
“A well-known trader on Twitter announced he was ‘sizing in heavily’ on a breakout. I followed with my $12k account, assuming he saw something meaningful. Five minutes later, the breakout collapsed — and his tweet vanished without comment. I was left holding a $4,500 loss on a trade he had clearly abandoned. Borrowed conviction is rarely conviction at all.”
3. “The Overnight Hold That Held Me Hostage” 🌙📲📉
“I broke a core rule and held overnight because the setup looked exceptional. At 3:14 AM my phone exploded with alerts: the market had gapped straight through my stop. Low liquidity meant the fill was nearly $9,000 worse than planned. There’s no feeling quite like watching an entire week’s work vanish before sunrise.”
4. “Revenge-Traded My Way Out of a Funded Account” 🤦♂️🔥💼
“I was down $600 on a funded challenge — nothing catastrophic. But instead of stopping, I tried to win it back immediately. Lost $1,200, then $2,000, then breached every drawdown rule within 47 minutes. The account was gone long before the emotions cooled. Revenge trading doesn’t correct errors… it compounds them.”
Have your own confirmed therapy story? Email it in & if we publish it we’ll send you some Laundry Room Merch👊🏼
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