---
title: 'Why You''re Trading the Markets Wrong'
source: 'https://youtube.com/watch?v=VRL_8RpiJ6U'
video_id: 'VRL_8RpiJ6U'
date: 2026-08-19
duration_sec: 60
channel: 'TradingLab'
---

# Why You're Trading the Markets Wrong

> Source: [Why You're Trading the Markets Wrong](https://youtube.com/watch?v=VRL_8RpiJ6U)

## Summary

This video addresses a common trading mistake where traders enter on a break of structure without proper confirmation. The presenter explains why a wick above a high is insufficient and demonstrates the correct criteria for a valid break, leading to a winning trade.

### Key Points

- **The Losing Trade Setup** [00:00] — A trader sees a break of structure and a fair value gap, sets a stop loss below the liquidity break and a take profit at the recent high, but the trade loses.
- **Identifying the Weak Break** [00:27] — The flaw is that price wicks above the high but does not close above it with speed and distance, indicating a weak break.
- **The Winning Break Criteria** [00:42] — A valid break requires the candle body to close above the break of structure with speed and distance.
- **Entering the Winning Trade** [00:55] — After a confirmed break, enter at the fair value gap as normal, resulting in a winning trade.

## Transcript

You get your break of structure. Then you get your fair value gap. &nbsp; The perfect trade You set your stop loss below this liquidity break&nbsp;&nbsp; and set your take profit at the recent high. You enter the trade ecstatic and are ready for&nbsp;&nbsp;
What happened? Why was this a losing trade? You see, this trader did have the right idea but&nbsp;&nbsp; there s something very wrong with this trade. After this liquidity sweep, price does a break&nbsp;&nbsp;
When doing this break, it doesn t close above&nbsp; this high with speed and distance. It just wicks&nbsp;&nbsp; What we are looking for is something like this. Where, when breaking this break of structure,&nbsp;&nbsp;
price breaks through it strong and hard. But&nbsp; the key thing we are looking for is that it that&nbsp;&nbsp; the body of the candle closes ABOVE&nbsp; the break of structure like this. &nbsp; Now that we have a break of structure with&nbsp; speed and distance and closes above the break. &nbsp;
We can enter at the fair value gap like normal. And now we have a winning trade.