YT YouTube2Text

YouTube2Text → Transcripts → 12 Years of Trading Knowledge in 2 Hours - Umar Ashraf

12 Years of Trading Knowledge in 2 Hours - Umar Ashraf — Transcript

by Chart Fanatics · 25,063 words · 1,318 segments · language en · Watch on YouTube

Open in transcriber Summarize with AI Download SRT/VTT

Full transcript

0:00welcome everyone back to Chart Fanatics the go-to channel for all the very best strategy and concept
0:06breakdowns with the very best traders in the world Talking of which today we have a very very special
0:11guest He is a eight figure verified trader the founder of Tradezella It's the one and only Umar
0:19Ashra What is going on RZ Absolute pleasure Thank you for being here Finally being on this show I've
0:25been seeing it for such a long time and I'm like you know what This is the place to be This is the
0:30place for every trader to come to to get real raw education And um you know just before we begin I
0:36love what you're doing I love what you're sharing the trading community Uh you know with the other
0:40channel and then also with this channel I think traders are not understanding how much free value
0:45and good value you're putting out So I appreciate that a lot Thank you man I appreciate you and
0:49appreciate you being here You know um today we're going to be doing a five-step process from
0:53beginner trader novice trader to expert trader I don't think there's anyone better to be able
0:57to help us do that And uh you again very thankful for the kind words But where should we begin Like
1:02where's the first step All right cool So what I want to do is I want to go through this like
1:06five-step process So it's like let's say one two three four and five And this five-step process is
1:15there to help a trader go from basically someone that has no idea what he or she's doing to a point
1:21of getting to a comfortable consistency point of view Right now when I get to this point this point
1:28does not mean you start making so much money It does not mean that you are a millionaire trader
1:34It just means at this point you have a consistent repeatable process where you know how much to you
1:40know increase bet size you know what trades to take you know what days to be aggressive what days
1:44not to be aggressive and you have a really system system and dial down process right That's the goal
1:50we want to get to And this goal once again should not relate to a money goal So before I go into
1:56like this five-step process there's a few truths I think traders must understand before they go
2:01onto this journey And I'm going to go under the assumption that someone is starting today and
2:06they're like at this like stage zero stage one uh of wanting to become a trader And for me anytime
2:13someone enters this stage and before they kind of go to the end there are a few set of truths that
2:18they must accept and fully understand And if they understand and accept that at this stage it makes
2:23the next few stages a lot more easier Yes Right So let me explain what those steps are or what those
2:31things are First th this is for people let's say depending on wherever you are in your stage even
2:36I think if you're in let's say stage two or stage three or stage four or even stage five I think
2:43most people in stage five or four understand these truths because I think without this you kind of
2:48won't get it Um so what is truth number one before you go on this journey of becoming a consistently
2:57profitable trader that has a system uh that is repeatable that is understandable uh that you
3:03can scale up or scale down as you want The first thing is understanding when you're in this stage
3:08is trading is not easy right And and and this I know it's like sounds very cliche and you hear
3:14it you don't hear it but I think understanding this truth is so important Uh because I think
3:19most people that are on stage one and two go into like oh trading is going to be easy I'm
3:22going to be this millionaire trader in day two day three day four And I think knowing right here that
3:28hey this thing that I'm about to do is very hard It's going to be extremely difficult and accepting
3:33what you're walking into kind of makes it easy Why Because as you go through this journey and it gets
3:39harder and harder and harder you start knowing well I know what I signed up for I know this is
3:43going to be hard I know what I was going to accept But then if you go into this and you're like well
3:47when I go on Instagram or I go on these platforms and I see someone having this and having that and
3:52making so much money why am I not able to do it These processes get very very hard for you That's
3:57number one Number two thing that we want to accept and we want to kind of really nail down is our
4:02goal in these in this whole process is not making money This is not our goal We are not trying to
4:14make money And I know it sounds crazy when people watch this They're like "What do you mean we're
4:18not trying to make money?" We want to accept that We do not want to track our progress here off the
4:24dollar sign If we go into this process that I I'm going to dive into and we start looking at
4:29the dollar sign and we're like well I'm in process three and I'm unprofitable it's not working That's
4:35the not that's not the right metric And I'll get into the metrics So we're not looking at
4:39making money here That is not our goal If we do everything right in these stages properly this
4:45dollar sign will come knocking on your door and it it'll show up Yeah On its own without you even
4:50chasing it Right So we chase the process As we get better and better at the process and we get better
4:55at trading this part comes on its own right Just the byproduct of the the work and the the focus on
5:03the right things Yes Yes And then that that just kind of creates like a mental shift right I think
5:08I I think even me when I first started trading I went into like make wanting to make money wanting
5:12to make money wanting to make money and then you set money goals right This year I want to make
5:16this much money right where I started switching my goals to like this year I want to be able to
5:21identify the good versus bad trades to take This year I want to be able to identify what trades
5:26I should increase risk or decrease risk This year I or this month I want to get good at identifying
5:31this setup Yes Right So when you start doing that you start you know having this consistent element
5:37of like making money which comes on its own Right The third thing is in this whole process we are
5:44only going to control the things we can control The things that are in our control we will focus
5:50on So whatever we can control we will put our focus in that We cannot control what is going
5:56to happen to the market But what can we control right That comes down to we can control our risk
6:02right So it's like when I see traders in stage 1 two three or any stage right that are like oh my
6:06god I lost more money than I planned Why Mhm Like it's it's just a simple concept Why It's something
6:13you can control How much you put into a trade you can control What trades you take your quality of
6:19trades that you take is something you can control right Your setups that you execute on is something
6:26you can control The days you trade is something you you can control Your emotional element also
6:31something you should be able to control right So our job here is to control focus on the things we
6:37can control I cannot control what Trump's going to tweet right So if I get into a trade and the
6:43trade goes the opposite way and it was because of this unknown variable that I had no control
6:49over I have to let that go Hey guys just a very very quick one If you're enjoying this playbook
6:54and you want to get it sent directly to you make sure to go on chart fanatics.com put your email
6:59in and every episode we drop we will send you a direct PDF breaking down this exact playbook or
7:06alternatively also the playbooks will be put all together with the rules over on trade zella That
7:12is an incredible collaboration So if you want to actually add the playbook to your trade zella make
7:16sure you go check that out as well But let's get back into this episode And then I think one of the
7:21last things is understanding this part which is very important is that in trading there is
7:27no aha moment Interesting like like so I've been trading for 11 12 years now I don't have that like
7:38at all And what I mean by no aha moment is just because I've made money last year just because I
7:45made money yesterday that's just just because I made money last month I know does not equate to
7:51me automatically making money the next month Yeah So trading is a game You have to show up every
7:56single day You have to have a good process You have to be able to adjust the process as needed
8:00You have to be able to adjust to market conditions and if you're able to do that you will have the
8:05best chance of making money consistently But if I go "Oh my god I figured it out." And the reason I
8:11say that is because I noticed when traders go from stage one to stage two to stage three in
8:17this stage they have those periods of feeling that aha moment And what happens is when they
8:22get to that moment of you know hey I I figured it out Boom They go down Yeah Hey I figured it out
8:29Boom Even for me there's so many times where I'm like "Oh I figured it out." And you know I end up
8:35having a 20% draw down 15% draw down in a trade or on my account And it's when you realize like
8:42"Hey I can start getting from stage a to two to three to four and five And even when I'm at stage
8:48five it doesn't mean I've made it It just means now I have this process that I understand really
8:54deeply And I have to control that process and I have to keep focusing on that process and I have
8:59to adjust it as the market starts adjusting and I need to know where to apply where to take a step
9:04back and if I'm able to do that this will show up Yeah No definitely and you know what I really
9:10love about especially the aha moment because I think that that is what a lot of traders assume
9:14happens Um there's like a click or light bulb moment where everything changes not realizing
9:20that nothing changes you just get better as you say on the focus element for sure Um and you
9:26probably understand that it's not easy and you're probably not focused on the dollar amount So as
9:30a combination of all of these things as you say the dollar amount sorts itself out and you accept
9:36there's no aha moment So you recognize the focus of your performance your process your routines
9:43uh a lot of the time sometimes outside of actual trading itself so that you're prepared to be to
9:48be focused when necessary Yeah Yeah So so I that's I think accepting because for me for I think six
9:54years seven years I've chased this aha moment I was like why I get it but then I lose it I get
9:59it then I lose it I get it then I lose it And then you know I think in year six or seven whatever it
10:04was I I sat down and I'm like wait there's never really this moment that we get right and then the
10:11last thing right understanding this part Now this applies to some people and it may not apply to
10:18some people depending on what stage you're at but you have to understand psychology in trading is
10:24overrated Mhm Right And like emotions are a thing I'm not saying emotions aren't a thing right But
10:31this is overrated I I write really bad Emotions are really overrated And the reason I say that
10:37is because your emotions are a battle for us to take when we get somewhere here right It's like
10:44in stage three and four That's where we start dealing with emotions before we get to emotions
10:50And once again I I emphasize on this because I see traders in stage one or stage two and they go "I'm
10:55not profitable because I can't get my emotions in check." And I'm like "Well your emotions should
11:00not be in effect in stage one and two This is when you're building up skills." And when you're
11:05building up skills your size shouldn't be large enough for it to impact your emotions Yeah Right
11:10So it's like when you're in stage one two and partially shifting to three This is where like
11:14your size right needs to be the least amount So like how much you're risking your capital amount
11:19This is where it's like the least amount and then it slowly starts picking up somewhere here So the
11:25reason I say emotions are overrated it applies a lot to stage 1 2 3 But then obviously once
11:30you pass those stages this is one of the battles that we have to deal with which we'll get into
11:36the into these stages But I think if you're in stage one two three this should not be there
11:41Let's take a break for a minute there guys cuz I want to tell you about our preferred prop firm
11:44Apex Trader Funding Now Apex is no stranger to the podcast or even Chart Fanatics because we've done
11:51two incredible episode with two record holders in terms of Trader Kane who got a record payout at
11:57$2.3 million at Apex And then beating that record in the end was Jadecap aka Kyle who also then
12:06has a record payout now of over $2.5 million in a single payout with Apex And that really just shows
12:13the infinite possibilities you can achieve at Apex Trader Funding Now what traders love about Apex is
12:20that you can get up to 20 accounts So whether you get the 25K account ranging all the way up to the
12:26300K account you can get 20 of those So if it's 20 300k accounts that is 6 million in tradable
12:34capital which is absolutely incredible Not only that it's only a one-phase evaluation There's
12:40no daily draw down and up to $25,000 per account It's 100% yours and after that it's a 90% split in
12:50your favor That's right At Apex you can actually trade with Wealth Charts Trader and Ninja Trader
12:57So you can choose your favorite trading platform And not only that you will actually get realtime
13:01data included when purchasing your evaluation with Apex What I personally love about Apex is that as
13:08long as you're trading your day-to-day strategy you don't have to worry about trading the news You
13:13can actually request your payouts every 8 days and there's actually no cap to your max payout
13:19which really shows the infinite possibilities you can have at Apex Thanks to Chart Fanatics you
13:24can get the best offer available at Apex They are always running sales So make sure to use the code
13:30CF That will automatically give you the best offer available at Apex The link for Apex Trader funding
13:37is in the description below So click that link use the code CF and you will get the best offer
13:43available Become an Apex trader today Now let's get back to the episode Would you say that what
13:48the problem is is that people use it as a crutch They use it as almost an excuse for why they're
13:52not performing well versus actually identifying like they don't have edge or they're oversizing
13:58or they're making these what you would call like novice mistakes which is why it's down here at
14:03the sort of phase one and two but a lot of the time people kind of trap themselves here because
14:07they'll just constantly point to psychology Yeah And there's no one really can help with that
14:11because unless you start to really identify edge Yeah So so because it's easier to blame psychology
14:17right It's easier to say like there's so many traders that I've I've come across They'll say
14:22you know it's I know how to trade but it's my emotions And I'm like okay what's your playbook
14:27What's your strategy Walk me through it Has it been proven Have you tested it enough And they're
14:32like no Then how do you know it's your emotions Cuz when I trade I get this and I feel that And
14:35I'm like yeah So how about we work backwards How about if you feel that and this is for anyone
14:40that feels that So let's say this is strategy and let's say this is emotions Your strategy needs to
14:46be focused first and your emotions or let's say capital needs to be low right Not even here It
14:52needs to be low and then your capital picks up when your strategy becomes more repeatable So
14:59capital needs to be minimum your position sizing So for example if you're risking $50 a trade and
15:05let's say losing $50 a trade doesn't really bother you it's going to allow you to operate
15:09your strategy a lot more effective effectively But now if let's say losing 5K of trades going
15:14to like shift you up and down you don't have a good strate even if you have the best strategy in
15:18the world your emotions will hijack your process Yeah And and that's why capital placement and when
15:23to increase size and when to take certain trades becomes important here and not here because what
15:28we want to do here is we want to develop on stage one two and partially three And then when we go
15:33from three to four that's when we want to start adjusting size This is like these stages and
15:38you know I'll get into it in a bit is like this is where we start making money This is where we
15:41start taking proper bet sizes Here's where we build the foundation And while we're building
15:46foundation we don't want to have emotions We don't want to make our life harder So we reduce position
15:51sizing We reduce risk So this part does not hijack this process No I love that I think from what I'm
15:57hearing as well and just general observation is that a lot of the people in phase one and two are
16:03essentially trying to take things from the more expert stages and trying to apply them early on
16:08Yes Which isn't the right formula Yes Yeah Yeah And then that's where all of this not easy Money
16:14is not our goal Control the things you can control There's no aha moment Emotions overrated All kick
16:19in to the final thing which this whole process of a to five is a slow marathon Mhm Right That's the
16:27last thing I want to just touch on before we go into this Trading is a marathon It's not a
16:32sprint And the reason I want to emphasize that on people is because everyone watching and I want you
16:36guys to think about this for a second If you've been trading for two years you've been trading
16:40for three years even if you've been trading for a year how many people that have been watching have
16:44rushed into trying to make money in three months have rushed into making money in six months And
16:49what what that does right and I've seen this so many times and it like frustrates me So I'll give
16:54you an example of like two traders that I've seen two types of traders right There's trader
16:59one let's say both of them started in 2021 right And this is trader two also started in 2021 right
17:08Trader one you know rushes the process goes back to zero Russia's the process goes back to zero
17:14Russia's the process goes back to zero Russia's the process goes back to zero What happens here
17:20They blow their account they lose their funded account something whatever it is and then they
17:24go back to zero And then they repeat the cycle Yeah You go to 2025 they're still here Yeah But
17:30in this window of four years they've had success many successes But those many successes were
17:37not built on strong foundation So it's like imagine building a 50story building with no
17:41strong foundation Anytime there's anything bad that happens the building's going to collapse
17:45Yeah So what these traders do and I'm confident that 60 70 80% of people watching are in this
17:51cycle they don't have a strong base Then trader number two who builds a strong base doesn't get
17:57this phase of hype or excitement or success until maybe year one or maybe like even year two or
18:03year three And then this trader obviously the the path doesn't look like that but the trajectory is
18:09a lot higher Why Because this person has spent such a long time in this like flat stage right
18:16And in this flat stage they develop themselves Yeah And then the hard part about this stage and
18:21the reason people have a hard time being here is you'll look at someone that you started trading
18:25with or someone that started the same time as you and you're like well he or she made money
18:29today and I did not Yeah So I need to do what he or she's doing Well what they don't know is just
18:33to kind of go off your point is that you're here in this flat stage doing the right thing focusing
18:38on your skill sets and building those skills Let's say you're here in this moment but what
18:43you're seeing over here is this guy Yeah Here Yes Not knowing that a month later or two months later
18:49he's here while you're still here building your skills Um and then like you say you're comparing
18:53to this person I need to be doing that And then you start making changes and start basically
18:58formulating this sort of journey which you don't want to be doing And like you said though rightly
19:01so because I was in this journey I remember and you know so many traders I've spoken to
19:05have been in that journey still in that journey And uh it's almost a trap because those moments
19:11those peaks just trick you into thinking you're doing the right thing Yeah And I I know people
19:16that are in that in four years right I I I look at their stuff I look at their stats I look at
19:20their performance And it's like hey you haven't been able to break out of this bubble Like you've
19:25made no pro progress You feel like you've made progress but you really haven't But this person
19:29like I I have an example of of of a trader that I know personally right Uh his name is Jay right And
19:35uh I think he started trading in 2020 or 2021 Mh And he was unprofitable for 9 months 10 months
19:4312 months And I use him as an example really like all the time because his journey was exactly this
19:48Like I think for 9 months he was unprofitable And you know when I say unprofitable I don't mean like
19:53he's losing his life savings or anything I'm just you know he's flat he's losing some money he's
19:57making some money He's here Yeah for like 9 months right But he's red Like if he his account started
20:01here he's like under but not massively And I think it was 2021 his account starts like picking up
20:07picking up picking up whatever We're in 2025 And I think recently he had his first 100K trade Wow
20:14Right This guy who was in this period for 9 months you know and when he got out of the period after
20:209 months it wasn't that he started making a lot of money but he like after 9 months it like up
20:23down up down you know good process good systems He had his first 100k day and that day like and the
20:29special thing about this day that I want to talk about it's not that he made the 100k is this day
20:33is repeatable there is a process behind it it's not by random he can do it again he had a 50k day
20:4070k a day this process h this this dollar value has a process behind it right it has a process
20:47behind it very different than this person also making 100k this day 100k this day but there's
20:51no process behind it there's no systems there there's nothing that can make it repeatable
20:56And and this person even though let's say it took them longer in some people's eyes he has something
21:02that he has a strong foundation on where he is in stage four to five and he has a system he can
21:07repeat Yes This person does not cuz even with this person making 100k down here they're going to lose
21:12100k Exactly Or lose more than 100k Yeah So then in the again the danger of social media and danger
21:19of just being in the space is you'll see this the making you won't see this And there's a lot more
21:25of this than there's of that Yeah That's that's the other part All right Cool Cool All right Let's
21:31dive into all of the stages and the steps and the cool part Right And this is something where like I
21:38can confident confidently say I think if people give this follow those five principles give it
21:44time right apply the right strategies and you know figure out what the right strategies are for them
21:50they'll have the highest probability at being profitable like like I'm so confident and I've
21:56seen it happen but even people that are watching out of like 10,000 people let's say less than 50
22:04people are going to actually do this Yeah but the ones that do do it they'll have a have a have a
22:08good route Here are some of the things I want to focus on all of these areas right Minus the bad
22:15handwriting Uh okay So let's assume everyone is in novice Even if you're not in you're in
22:19developing you're intermediate you think you're advanced you're in pro Let's just start from the
22:23beginning right So there's elements that I think in every stage that are important right So it's
22:28like for example uh your risk your risk here to let's say developing let's say this is where it
22:34starts at zero developing you go from like a one to two intermediate when you start experimenting
22:40you can maybe go from like three to five and then this is where kind of the scaling of risk becomes
22:46like the goal this is where we focus on risk right this is where like the risk component becomes more
22:52important here risk is something we like nudge with and I'll kind of get into uh get into that
22:58This is where when you go to novice and developing intermediate this is where like your knowledge of
23:03trading has to be focused on So you're like focus on this part of skills is the biggest focus point
23:10is here Not that the focus point of developing skills goes down here but it's like when you get
23:15to this range your skills should kind of be good And what I what I mean by skills I'm talking about
23:21you know you should be able to understand market dynamics You should have playbooks you should have
23:25setups you should understand what moves the market you should understand uh what days to trade what
23:29days not to trade You should have those levels of skills focused down there Yeah Uh same thing with
23:35size Your size in these kind of three stages stays the same right Up or down not a lot And
23:43same thing here your risk you can start adjusting This is where dynamic risk kicks in Right And then
23:51experiment Right I think this is once again where you experiment the most Yeah Right And then this
23:58is where you have a good process This is where you should be good Okay So it's just kind of
24:04putting where focus goes in where focus doesn't go in And then I think a little bit I think the
24:09another last one would probably be psychology And I think psychology automatically plays a
24:14role with dynamic and plays a role with you know risk So this is where these are like the
24:19two places where if I was to pick where psychology comes in right it's here and here So like you you
24:27start making the gap from intermediate to here is like the first phase where you should have
24:31psychological gaps You should have emotional like your emotions where it should hijack your process
24:36or start to hijack it Right Not saying like that's what we want but it should show up here It should
24:41not show up in stage one It should not show up in stage two If your emotions show up in stage
24:45one or two that means you're risking too much Your size is way too high than what you should be doing
24:51from a trader point of view So in just looking at this kind of framework stage one stage two
24:56stage three your risk stays consistent You're not having dynamic risk And what do I mean by dynamic
25:02risk is you're not risking like you're not going in one trade risking $100 and the the A+ setup
25:07you're going to say well now on this A+ setup I will risk 300 That dynamic element you have
25:12to have enough screen time You have to have enough uh skills to be able to increase that dynamic risk
25:17Uh and then once you start doing dynamic risk that's where like this part really comes in the
25:22emotional element right I'm just going to put emotions right Emotions come in And that's okay
25:27That becomes like the next devil that we have to deal with But we want to deal with this part first
25:32And what is this part that we want to deal with That's what I want to like focus on first Um so
25:37once again the whole framework here you guys can just kind of understand it Experiment in
25:42stage 1 two three three we start leaning away Like three is typically like the split part in mo most
25:46cases right But one and two is where we just start throwing stuff at the wall We start getting a feel
25:52of the market We start getting an understanding of what that is And now I want to walk you guys
25:56through stage one to two what you should be doing in stage one what you should be doing in stage two
26:01and how all of that should look All right so let's talk about stage one really quick What everyone
26:05should be doing on this stage and what they want to kind of understand Now when you guys start you
26:12know remembering that you won't know everything is fine So let's say let's say let's call it stage
26:16one right stage one this is like novous traders right novous traders okay so in stage one this is
26:29where once again we know absolutely nothing Uh you want to go here with the blank state Uh if
26:35you go into the stage thinking this is the way how things are done and you go in with a closed mind
26:40it'll make things a little bit harder Here's where we want to have the market we're trading right I
26:45think everyone getting into the market should know what they want to trade right So one thing
26:50I'm not the biggest fan of is like I think when people are in the developing stages they go I'm
26:55going to trade crypto and then I'm going to trade futures then I'm going to trade forex and then
26:58I'm going to trade options And it's like no let's pick one market Let's understand that market and
27:04let's understand how we want to trade that So for example in this situation let's just say we pick
27:10futures just for argument sake right I am trading let's say ES S&P 500 trading NQ right that's what
27:19I want to trade that's the market um trading let's say New York session right this is New York time
27:27for anyone that is not familiar uh that's the market I want to trade so that makes things clear
27:32second thing is I want to start knowing okay how Do I want to trade Do I want to scalp right Do I
27:39want to like day trade Do I want to hold trades you know from couple of seconds to a couple of
27:44minutes Or do I want to hold trades longer than just a few seconds two minutes right So it's like
27:48understanding what type of approach I want to take right And and by the way what you pick here is not
27:55concrete So because you say you want to scalp you might get into stage one and you might say "Ah
28:00actually I don't want to scalp anymore It's not for me I'm not really good on my feet as quickly
28:04as possible Yeah I need something a little bit slower and that's okay The idea here is once again
28:09we can experiment on the stage We can play around with the stage Um that's that The next thing is
28:14you you want to there's two approaches right You can either paper paper trade here right And and
28:20this depends if you're completely new you have no background know anything paper trade get familiar
28:24with trading get familiar with the markets uh get familiar with your platform buy stuff sell stuff
28:30whatever If you're past that stuff right which which I think everyone should you know move on
28:35from at at a certain point you want to use real money and a very small amount right Like start
28:43with I don't know $1,000 or two 2K or 3K I don't think you should go in with more than that Very
28:49small amount Yeah Right Put that capital in to to the market And this is after the fact that you've
28:56paper traded you've understood the market you understood what works what doesn't work how the
28:59platform works and you kind of have a good idea then obviously do that Uh and then from there you
29:04want to start building a process right And I'll kind of go into the process a little bit Uh the
29:09idea of a process here guys is you won't have everything perfect Yeah And and I think this is
29:16what people forget is they think that the thing that they select early on is what they have to
29:20stick to And that's why early on I recommended that in stage one two and three we have a lot
29:25of experimentation And experimentation obviously starts going down afterwards Yeah But we want to
29:30have a process that we can adjust here And the reason we want to have a process and we want to
29:36have data tracking here is because we then know what our problem is Yes What people do is because
29:42they don't have a process and they don't have data tracking of their process when they get to
29:46let's say stage three right They don't know what is making them do that They don't know if it's a
29:54bad setup They don't know if it's their selection of trades They don't know if their size They don't
29:58know if it's emotions They they have no idea So they go back into this place again Yeah So if we
30:04start building this from day one which will build out together and we start altering it based on how
30:09we want to trade and what we want to do it'll make our life a million times easier Yes Right
30:14Let's take a break for a minute there guys cuz I want to tell you about our incredible sponsor
30:18Trade Zela Tradzella is the number one trading tool in the entire trading industry Tradezella
30:24allows you to become a more profitable trader allows you to make immense progress as a trader no
30:29matter if you're a beginner or an advanced level trader because it makes journaling easy It makes
30:34journaling something that is fun and enjoyable and something that is interactive So no matter
30:39if you're a crypto trader no matter if you're a futures trader no matter if you're a forex
30:43trader no matter if you're a stock trader all you have to do is select your broker your platform of
30:48choice and connect it to Tradesella and it will automatically sync your trades and pull all of
30:55that data onto the dashboard making journaling and finding your edge and adapting your edge so easy
31:03In collaboration with Tradzella and Chart Fanatic specifically we are actually getting the playbooks
31:08from the episodes that we're filming with these incredible verified traders and adding them as
31:13playbooks onto Trade Zela So you can actually go on there and see the rule sets already predefined
31:19So make sure you check that out as well Now you can actually get 10% off your monthly
31:24subscription using CF10 on Tradzella right now But more importantly I would say CF20 for 20% off your
31:32yearly subscription with Tradezella The links for Tradezella are in the description below So make
31:38sure you go check them out Use CF20 get 20% off your yearly subscription become a better trader
31:44today Now let's get back to the episode That's essentially just the essential framework right And
31:50then obviously when you have this you want to have risk I think risk less than 1% per account do even
31:570.5% when you start out What does that mean That means if you're if you have let's say a $1,000
32:03account you're risking like I don't know what what is 1% on I'm blank $10 $10 right You're risking
32:11$10 per trade That doesn't mean you're investing $10 That means if you are wrong you will lose
32:16$10 You can invest a,000 You can invest $2,000 Especially if you're trading futures you'll have
32:20margin and so on But if you're wrong you lose $10 Maybe you lose $20 Maybe whatever the case is So
32:26you you can maybe go to you know micros You don't have to trade ES You can maybe trade micros You
32:31can start adjusting to have the least amount of risk possible Now the the problem here is people
32:36will say "Well Omar how will I make money?" Once again going back to my point early on we're not
32:41trying to make money The reason we want to have the least amount of risk is because we do not want
32:47to we want to be able to take the most amount of trades and be wrong and still be alive Yeah
32:52Because capital is the most important thing in the market And without capital we cannot trade Yeah So
32:57that's why this thing we have to protect And while we're in stage one two and a little bit of three
33:01we want to risk the least amount So if we're wrong wrong wrong wrong wrong we can survive to see
33:06another day That's why the idea of making money in these stages is not something we should focus
33:12on Definitely And you know just to go back to the left side here you know the experimentation I feel
33:18like is missing There are people who experiment but I think they will go into it through some
33:23sort of educational route or some YouTube video whatever it may be Yeah Um and they come across
33:28let's say the market's chosen for them in a sense The pair and the the asset the trade is chosen for
33:33them The style is chosen for them because of and again it's not necessarily their fault but it's
33:38actually going back to as you said understanding the expectation knowing that it's not going to
33:42be easy that once you actually have the correct expectation then you can have the right mindset
33:48and do the right things versus if you don't if you kind of allow yourself just to kind of find
33:52yourself into the trading industry and then just kind of following the same sort of journey that
33:57most people do which we already pointed out is that boom and bust constantly you'll just find
34:01yourself there where if you want to make those changes which I think is the whole purpose of this
34:05video here is to go through these stages for you to really elevate and allow you to sort of really
34:09become more self-aware is that regardless of how you come in you need to understand this element
34:15here You know the market you choose You know you might have come into it on FX right In the UK
34:21that's pretty much how most people come across trading FX but you never know You might come
34:24in and realize okay FX isn't that efficient It's not really the most regulated and it's not really
34:29centralized I want futures sounds better Okay And then from there you then pick your the futures
34:35instrument You then pick the style Then you pick you you paper trade or you have a smaller account
34:40And that experimentation is so necessary to build your repetitions But as you pointed out like
34:45really really minimize the risk It's not about making money It's about building your reps Because
34:50I think if anything a lot of people obviously because they don't do this yes they blow up two
34:56three times very early on And that's kind of their expectation of trading versus if they've actually
35:00trained themselves to take losses but maybe lose 10% But that was over you know 20 30 40 trades
35:08they've actually told themselves actually if I do this right I can still be in the game and I think
35:12that's a huge difference in mindset Yes And and that to your point is exactly what it is because
35:17you start even though it's not money that for some people it may not burn them but you get familiar
35:22with this process right like hey I'll lose 10 10 and then I'll have a trade I'll make 30 I'll
35:27lose a 555 and I'll have a trade I'll make 40 So those setups come and then you start knowing trade
35:32selection and setup selection and then you're like wow if I have this process and I follow it long
35:36enough I will make money Yeah Right And I think doing that in stage one and two and that's why
35:41the least amount of money it's important because I see people in the stage they're like no I don't
35:44really care about a thousand I want to do more I want to like feel it And then they lose it
35:48and then they do it again They lose it They do it again And then it's like you get in this mindset
35:52of wanting to make that money back which is like the worst place to be And that's like not where
35:57I think any trader should focus on That becomes like a I call it like a revolving door You know
36:01it just doesn't end because just as we you had the illustration before with the 100k examples that's
36:07exactly what happens You'll be up and you'll let's say if overall in your journey you've lost 20K
36:12Yeah And you're up 10 right now The first thing that's going to go through your head is I just
36:17need to make 10 more and break even Yes And then you lose that 10 now you're 30k down Right And you
36:22just repeat that over and over Yeah And something I want to add on to this is if someone is in stage
36:25three or four and I know they're like I don't want to watch the stage one video I think going back to
36:29the basics of stuff is very important because it allows you to rebuild up the foundation better
36:33Right So even for me when my trading breaks sometimes I go back mentally stage one I'm
36:37like okay like what am I missing here What am I doing wrong Like what do I need to do to you know
36:41refix the stuff Is there something broken Like for example with the Trump market now market's
36:45very different getting adjusted to it requires a new approach new process new understanding of how
36:50to kind of you know set up game plans Sometimes you can't have biases for the day because the bias
36:55can change Uh so so going back to ground ground uh you know stage one mentally for a day or two
37:00and just building yourself back up I think is also very important Definitely Cool Cool So
37:05yeah So that's that's a little bit stage one I'll go into the process and then obviously I think in
37:09stage one like what is the goal we're trying to do Like let me just put the goal like the objective
37:14the the the goal of stage one that we're trying to do is we're building our foundation right Oh
37:19[ __ ] Foundation right I wrote it wrong Uh we're building our foundation right We're building our
37:29process and we're getting educated here right And there's two types of education right And I think
37:34early on we get like videos and like you know you want to buy something online you watch this video
37:40and a lot of other videos on this channel uh books and whatever the case is you can do that
37:44on education And then I think the second one is like screen time Yeah Yeah Right Screen time This
37:51is the most important education in the world This is good to build the foundation This is where it
37:56gets more and more So the way this correlation works is early on your screen time starts high
38:02I mean your video education starts high and your video education goes down Your screen time starts
38:07average and then your screen time goes up Right So that's like where the correlation happens So stage
38:11one we are building a good foundation of learning We want to know what we what we need to learn
38:16uh you know market dynamics what moves the market uh you know setups technical
38:20uh stuff whatever the case is Getting all of that together to dive into our process which
38:25we'll go into stage two in a bit Right now what does that process look like And I think this is
38:29the important part before we go into stage two And stage two I'll talk a little bit about setups and
38:33I'll talk about strategies and you know how to kind of do that Uh but the process is what we
38:41care about So in trading there's a few things that are not negotiables for us There's things that we
38:48want to really understand and we want to really kind of uh identify right So there's pre-market
38:56right Game plan So every day you guys go into a day you should have the following session notes
39:06right You have your pre-market game plan So this is before you start trading your session
39:10You have a game plan There's like your actual trade notes Let's call it live trading right
39:18And then you have your post market analysis Post market analysis right So once again you have a
39:30pre-market game plan your live trading notes uh and then you have your postmarket analysis This
39:36is kind of like a little bit of manual work Yeah And then from this then you have like your trade
39:42data right and I want to help you understand what that kind of looks like So pre-market game plan
39:48So what do we want to do every day is before you go into any session you want to have a game plan
39:53that approaches that particular session So what would that game plan look like So for
39:58example let's say tomorrow is Monday I would say for Monday my game plan I am watching ES right
40:08uh as I'm watching actually before I even go into ES when I go into my game plan I'm looking at all
40:12the economic events economic events that possibly have moved the market last week and are moving the
40:21market So it's like last week and this week and the reason I say last week is because I want to
40:28have this foundation of what moved the markets what is the sentiment of the market uh and what
40:32is happening this week Mhm Once again guys because we are in stage one you will screw up really bad
40:38here You will not get this right You will have bad analysis You would not you will miss stuff This is
40:44okay This is why stage one This is why like for me a lot of times I've learned so much from just
40:49an economic point of view by observing the market watching the market taking notes on it going back
40:53to it Yeah Then it's the game plan of like the setups and the trades So for example if you're
40:58watching ES right Your game plan could be what is it you're watching with ES I'm watching these are
41:04my levels This is maybe my bias with the S&P 500 Uh if we break this level this is the trade I'm
41:12looking for This is like my key inflection points right Uh this is where my supply is This is where
41:18my demand is Uh this is just kind of the framework for this particular name or it could be the market
41:24And you kind of go off that So you make that whole pre-market game plan Once again this is something
41:29that I think it's better to add more and then cut down than to like have nothing Yeah Because here
41:34you want to write your thoughts and your thoughts could also be something as like I think the market
41:40is going to go up today because of this That's okay And the reason that's okay is because when
41:43you write that on Monday and then you review it at the end of the day you're like "Oh [ __ ] I
41:48missed this." Yes You go to Tuesday you go back to Monday and you you compare you start looking
41:52at what you're missing here you start going "Well my game plan was to do this on ES but I missed the
41:58economic event that was coming at 10 a.m I was looking to trade this week but Powell speaks on
42:04Wednesday." And typically I've noticed when Powell speaks the market gets gets very flat Yeah Oh wow
42:11I start You start noticing these clues and I can tell you these clues as much as possible You can
42:15you know someone else can tell you you can watch a YouTube video and you'll have the foundation
42:18But it's like when you write these things down and you observe them Yeah they stick with you a
42:23lot more Right So for me a lot of times like my trade selection and my day selection came
42:28a lot from those reps of like oh well this week you know we have earnings coming up market when
42:33there's earnings season doesn't really move but the names start moving after earnings Yeah So
42:40for example Tesla has earnings right right now like currently while we're shooting this earning
42:44season's going on Um me I'm not trading names around earning season I'm now looking a day or
42:51two after maybe the day after depending on the move and I start formulating trades then Yeah
42:57Right And that comes from having a plan having your live trade notes and postmarket analysis
43:03which I'll get into and adjusting this as per the sessions keep going because this will give
43:09you a lot of value of your thinking pattern like everyone here has their own way of processing data
43:15like this is let's say data everyone connects it differently The only way you'll know how you're
43:20connecting it and how you're connecting it right or wrong is by doing this repeated process over
43:24and over again especially in stage one two and three Yeah And obviously we're going to continue
43:28this on all stages but these stages where you will have the biggest learning No definitely Cuz
43:33the the one thing that really stands out to me as you said is writing it down Not only do you sort
43:37of remember it and you sort of more deep learn it but also to assume that you're going to remember
43:42it just in your mind every single day Like you might remember the first day maybe Yeah Most of
43:47the time when once the market's alive and you're sat there everything you planned out and thought
43:52in your head is gone So like this process of actually creating a game plan writing it down it's
43:57uh you know simple simple step but so powerful because once you have a collection of this you'll
44:03be able to pick up on the fact that okay as you mentioned economic event you know you missed it
44:08but then my analysis was correct Okay or economic event I plan not to trade I took a trade I've
44:15taken an L Yes once you start collecting these over time especially in stage one then you're
44:20it's almost like not speeding up the journey but at least it's doing the right steps for you to
44:24be able to review keep a record of of everything that's going on And that's what's going to build
44:30the reps You know that's where that's where your better decision- making your clearer decision-
44:36making will come from versus what most people do and I know I did it in the beginning as well is it
44:41just everything's in here and you think I I'll remember you forget the trade you took in the
44:46morning sometimes if you if you going overboard and that's just not good cuz then you have no
44:51reflection at all of what happened at the start what was my actual plan what was what my actual
44:55thoughts and same with the postmarket analysis you know if you're not doing that you just you're
45:00never learning are you no of course and and that's why I said this this part is very like be open to
45:05making mistakes this like we're experimenting here right and I think for people that are
45:09think they are in stage two and three come back here again and and experiment experiment of like
45:14getting this part right getting the one the floor right second doing it consistently and then third
45:20finding things to take away from it right And and if you intentionally do that day after day
45:27one you will get very in tune with the market and two you will find so many things out and you will
45:32learn more that will stick with you consistently Yeah Right So that's that's one Then live trading
45:37notes So this is something I think becomes like this is very powerful So like there's a few ways
45:42to do this One you can screen record Yes Yeah Right So like I screen record like I use Loom and
45:47I screen record my session like I'll talk over it sometimes Um or second something that also helps
45:53me is typing Interesting Or writing like you can you can write and like I'll give you an example
45:59of like how I write stuff and what I do and like I'm telling you it's legit a game changer It's
46:04like it it helps more on like stage three when emotions start coming in But the idea of writing
46:11is like I'll do like five minute check-ins if I'm like in like draw down and I'm really
46:16struggling But typically I'll do like 15 minute check-ins And what I mean by that is if I start
46:21trading at 9:30 a.m Yeah All right At like 9:45 right I'll have like my first check-in and like
46:31just set an alarm on your phone like go off every 15 minutes and like write what do I see What do I
46:37think Hey I'm looking at Tesla Tesla looks like a good long above 252 I'm watching that Or I could
46:44say "Hey I'm in Tesla long here This is why I'm long My stop is here." Right And what that does
46:49is one it allows you to see what your thinking process is when you're in the markets Because a
46:55lot of times what you guys will see you'll have a plan and then your actual trades differ from your
46:59plan and you'll go "Whoa what the hell Why can I not follow a simple plan?" And then second you'll
47:05start seeing when you do your postmarket analysis like wow why was I going long in Tesla This has
47:11happened to me probably like four months ago Like I took notes I looked at it aftermarket and when I
47:17looked at this I go this makes absolutely no sense Like why was I taking this side of the trade And
47:25it's like when you are in this moment you know trading at times does get a little bit confusing
47:30You do start overthinking Emotions do become a part of it Like a lot of things happen here
47:35And the the idea of the po postmarket analysis is one you're looking at your pre-market game
47:39plan You're looking at what did you get You're looking at your game plan for the day in terms of
47:44the trade and the selection what you were going to do how you executed that what your execution
47:50looked like and then analyzing that at the end from a thought process point of view Yes Right
47:55And then the other thing that goes into stage one and everything we're doing in stage one guys this
47:59is something we're doing until stage five This part doesn't stop Like this is part of the process
48:03right Is like rules you set and all that happens when you go from stage 1 2 3 4 5 is like these
48:09processes get more defined They get more easier They get repeatable And this is what I was saying
48:13early on When you have this the process becomes very repeatable So going to rules as I mentioned
48:19earlier we want to control things we can control So like some rules I have is like I don't like to
48:24trade past 11 a.m Eastern time So like that's when I end my trading session So that's like a
48:29rule I have I think for everyone else starting too I think if you're trading US markets I don't think
48:34you should sit in front of your computer for like 10 hours trying to trade especially early on You
48:39guys early on will have more You will learn not even early on later on You will learn more off
48:45the screen than on the screen consistently If you spend 3 hours on the screen and you spend three
48:50hours off the screen looking at what your thought process was you'll learn more than sitting in
48:54front of a screen for six hours right Do you feel like that comes down to the fact that when they're
49:00on the screen a lot of the time they're wanting you know they're not really clear anyway There's
49:06a lot of chaos going on A lot of the time they're probably again taking information from someone
49:10else Um so therefore it's kind of like influence decision versus if you're focused off the screen
49:19you know on on your your trading their trading their decisions what they've done what they
49:24control essentially what what you said earlier Um that's why it has such a more profound impact on
49:30the trader because it's actually what's within their control It's actually what they've done
49:35versus just what the market's done Yeah Why the markets moved sideways Why the market reacted to
49:41this area This is much more important and powerful because this is directly your track record if you
49:48will your actions within the market Yeah Yeah No exactly I think it comes down to one I think after
49:53a certain point like the US market doesn't really move as fluidly right Like typically after 11 12
50:00you know action starts dying down Second I think you get you know mentally we don't have mostly we
50:06don't have the mental capacity to sit in front of a computer for four or five hours and make really
50:10high important choices over and over again and execute at a high level So that execution quality
50:16after time goes down because our brains get tired Uh and then I think third is you know just I think
50:21overall we don't need like the idea of trading in my opinion is freedom right Like that's why
50:25you want to do it But if you're chained down to your screen for 10 hours then you're not really
50:29making any pro uh progress It makes no sense Yes Right So to me it's like hey if you have
50:33this rule of getting off by 11 or 12 let's say even 12 I think early on is fine Um you kind
50:38of limit your trade selection Also if you if you end until 4 p.m what starts happening throughout
50:44the day Mentally if you're sitting in front of your computer for 6 hours and you don't take a
50:48trade it's very easy to say "I've been here for 6 hours I've been here for seven hours I made $0
50:55let me take a trade Right It's the same concept of going to work and not getting paid So it's
50:59like you're going to work and you don't get paid for seven hours So you your trade trades that you
51:04start taking in hour four five six just it's easier for you to take them which lead to like
51:09overtrading and bad trades Yeah it does Yeah Right So yeah So there's rules So like for example 11
51:14a.m end uh I think in stage one having like cut off rules Uh I think another rule is like I need
51:20to be at my desk one hour before the market opens All right Um I think that just kind of
51:27keeps things consistent And you know something to keep in mind everyone loves that trading you don't
51:32have a boss You don't have anyone looking over you But that's also a really big con cuz I think most
51:37people need that structure Yeah So I think setting that structure up for yourself and following it is
51:41really important Uh and then I think the next one is like how much you're risking right Hey
51:46I'm risking let's say I I'm not allowed to lose no more than $50 per trade Yeah Following that
51:52and making that especially in this stage making that really consistent Uh making sure that you
51:57are doing stage one stage two stage three of your notes every single day And like this could be just
52:04your basic rules right This is it Uh I I need to have a game plan I need to be in front of my
52:10computer 1 hour before Uh I need 11:00 a.m I end risk no more than $50 Uh even trade count I think
52:17early on limit your trade count Limit yourself to like maybe three max trades a day No more than
52:22three Yeah Um I think what that does is I think when you limit yourself to a few trades you you're
52:27more cautious of like well I only have three trades today Let me use them wisely Mhm Right
52:34And you know the other flip side of this is like you'll hear traders say "Well what if you have
52:38a very good day and the market's moving and you should take 10 12 trades." And I'm like "Yeah I
52:42agree to with that but stage one." Stage one Yeah Mhm That's not what we're focused on I love what
52:47you said there as well Um in terms of traders are just by themselves you know like traditional prop
52:53firms for example or these professionals or even traders from the past they were either in pits
52:58or if it's traditional prop firm they have like trader pods they have risk managers like all these
53:02different facilities almost you know interactions before a trader places a trade you know and it's
53:11just crazy how different that is I think most traders like the average viewer here doesn't
53:16even know that exists Yeah So all they know is that that sort of being alone It's not a problem
53:21It's more so going back to one of the beginning points is understanding what you're signing up for
53:26And really if you're going to do this right you need to be your own risk manager You need to be
53:30your own accountability You need to be your own mentor if you will Um and that's hard A lot of
53:35people find that difficult Well that's why I think the way you've mapped this out is to facilitate
53:40um a natural progression of having all those things for yourself Yeah Yeah No exactly I
53:45think it comes down to that you know extremely important And then in this stage once again our
53:50main goal is to have a process have rules and and get as much as learning as possible Watch YouTube
53:55videos read books get a good understanding of the market you've selected and kind of you know just
54:00get really comfortable with the plat platform you're using Get really comfortable with with
54:04trading overall here is once again we're not trying to make money We're not having these you
54:08know insanely complex approaches or strategies or none of that It's just getting comfortable
54:13with the market with a a good process and good rules right Uh now we go to stage two right So
54:20this is where you start hitting developing stage right So once again guys this process the rules
54:27they stay It's not this is not stage contingent It's not like oh we only do it in stage one No
54:31you do this forever I've been trading for 10 12 11 years I do this The best trading floors in
54:37the world All of them have a process All of them have have pre-market notes All of them have live
54:42trading notes All of them have postmarket analysis They they have rules They have all of these things
54:46Even people that have making 30 40 50 million a year have processes in place Right So now let's
54:52go to stage two So stage two is this is where we start taking everything from stage one right
54:58And we start going to building strategies So this is like we're like developing right We're like a
55:07developing trader Yeah So strategy/playbooks like the goal here is for us to build playbooks So what
55:14should you have by now What should you have And like stage one typically is like two weeks to four
55:21weeks It's not a long period you're in right These are the stages that end up being long So stage one
55:26you're like two weeks to four weeks It's a lot of experimentation It's a lot of comfortability It's
55:30a lot of just learning Some people might be in it for two months It just depends on how well you can
55:34read the market right Uh and understand the market Not even read the market but understand the market
55:39This stage is typically longer I've seen the stage from like 2 to 3 months right So like 60 to 90
55:46days Uh the the the simple goal here is now to start building our playbooks building a strategy
55:54So like we we want to have an approach right And then the way this approach kicks in is if you have
56:00that healthy process that you built and you have healthy rules and you limit your risk amount and
56:05you you know know the right things you're doing on a day-to-day basis and you follow that for a
56:09month straight Yeah You go to stage two If you didn't do that for a month straight you you're
56:12not mentally you shouldn't go to stage two Right Stay there Here we just want to build a playbook
56:18So let's go a little bit into playbooks Right So building this comes a lot down to the strategy
56:26the approaches cuz I know there's like ICT SMC there's like orderflow uh there's like so many
56:32different ways to trade And the one thing I want to say right away is there is no one way to trade
56:39Mhm So I I I won't come on here and I won't say like like I I'm not I'm not going to be
56:45that person that says I I don't trade ICT but I won't say ICT is bad We have Jade Cap who trades
56:52it Yeah And he had his 2 whatever million payout It's crazy I know So like there's there's I don't
56:58want to say there's strategies that are bad If if the strategy you have is proven it is tested and
57:04makes sense and all you have to do is scale up Mhm Go with that But get rid of the idea that you know
57:09I want to pick one strategy and that's the best strategy and this is the worst strategy and also
57:14we don't want to strategy hop I think what happens is people don't have like you know strategy hop
57:18So for me like I trade with orderflow right I have a few different strategies and playbooks
57:24Uh let's say I have like my opening drive opening drive I have my morning top setup
57:34And another video me and you can go really deep into is this whole orderflow thing because I think
57:40a lot of people want you know if people are down if you guys like give this a like or thumbs up or
57:45whatever If you guys we can yeah hit subscribe now Um we can do like a whole like 2-hour thing
57:52on order flow cuz this is like this is probably a three-hour video I think Uh and then we can
57:57go into like deeper setups right But there's there there's approaches So so the idea that
58:00I'm trying to create here is like you need to know what your approach to the market is what
58:05your market understanding is and then your setups come Yes I can have my let's say I talk about my
58:12morning setup and what I use in my morning setup is I use orderflow as one of the tools or one of
58:17the approaches I have for reading the market and you don't do that but you're trying to take my
58:22playbook and you're trying to apply my playbook and I see that happening right so it's like even
58:26when you're seeing someone's playbook someone's strategy you have to understand what is the thesis
58:30of this playbook what are they what are they trying to understand so for like orderflow like
58:34even eliminating this word this is basically just the action between buyers and sellers Mhm So I'm
58:42just looking at the auction to identify strength and weakness and I'm looking at these setups to
58:48identify who is more in control in just simple theory So when I go to let's say I don't know ICT
58:53for example what are they looking at What is their basis What is their approach And then what are the
58:58playbooks or setups that come under here right What is the playbook that comes under here So
59:03it's like if you are watching someone's video on this channel for example which I think by the way
59:08is I'm I'm not even saying it cuz I'm biased but actually I think this is probably the best YouTube
59:13channel out there And I'll tell you why Because I think you get to see people's playbooks You
59:17get to see actual strategies which honestly like genuinely is like insane Like like no joke I think
59:23that's nuts I'm surprised you pulled it off Yeah No I think I think that's insane Um but yeah so
59:29it it comes down to that So I think the thing I'm trying to get into here number one is like first
59:34you can't just have a a naked playbook You have to know what concepts does this playbook represent
59:40What concepts does this strategy represent That would make sense because you need to understand
59:45like if there's a morning top uh setup which I'll kind of explain in a bit Why does this go up or
59:51down Right And once you understand why it goes up or down or what is the reasoning we're looking for
59:56and that derives from this or that derives from this or whatever that is it gives you a better
1:00:03understanding So that's why in stage two as we're developing we are trying to understand and this
1:00:09goes into like this concept of like patterns right just to kind of take up some space just to make
1:00:15this up It's like when people see patterns right It's like they'll say they they'll see a pattern
1:00:20where it's like "Oh well you know um I hate thinking about patterns but let's say you have
1:00:25a head and shoulders You have you have a double top pattern right Or a head and shoulders right
1:00:30Whatever pattern there is." And they're like "Oh well you know if we hit the top twice that means
1:00:36the trade's going to go down." And it's like no I think that's very stupid to think about it from
1:00:43that approach The approach to think about it is to understand well why did it reject here What
1:00:50is going on here What happened around here What is the direction and sentiment So for example if you
1:00:56take a trade right Let's say let's say this is all you see But you take a trade that opens up really
1:01:00strong Mhm Pulls back has strength here continues Will you short that Probably not Mhm You'll
1:01:08probably assume that hey the transactions and the activity that's happening here is a lot stronger
1:01:12than there It makes more sense to go long It doesn't make sense to close your eyes and say "Oh
1:01:18it's a it's a double top pattern Let me go short." So that same concept of like questioning things
1:01:23and making it logical goes into your playbooks And I think a lot of people that are even in stage
1:01:28three or some even in stage four I don't think they question these things and they go "Oh I saw
1:01:33a bull flag so I went short I went long." Mhm And I'm like that's not a good enough reason to take a
1:01:39trade Yeah You need to give a reason of that bull flag And you have to understand in playbooks and
1:01:44in market conditions there's a lot of different stuff that play a role Like if you have a day
1:01:50where there's a lot of fear in the market or you have a week where there's a lot of fear or
1:01:54negative sentiment right Let's say the sentiment is negative right Negative sentiment Typically
1:02:02most setups that are going to work for that day or for that period are going to be on the downside
1:02:06They're not going to be on the upside uh setups So it's looking at there's a sentiment that's
1:02:11what's driving the market and that's what adds on to these playbooks or these kind of patterns that
1:02:17I think a lot of people talk about and you have to be able to identify that with events Now if I
1:02:22see let's say I see a really good setup happening right And this is where you know stage one kind of
1:02:27kicks in a little bit and we have to combine it with stage two If I see like a really good setup
1:02:32and let's say Powell is speaking in two hours I don't care how good that setup is I'm not touching
1:02:38it personally I there's just too many unknowns there I don't want to touch it So that's where you
1:02:43start combining You start having a playbook and then you start questioning it with understandings
1:02:47of like okay I have this good playbook Yes Right The this is the market sentiment This is what
1:02:53where the playbook's underlying concept makes sense This is what this playbook makes sense to
1:02:58this is what this playbook looks for These are the things that need to make sense And then that helps
1:03:03with once again trade selection day selection you know it helps you with dynamic risk Once we
1:03:09get to that stage you start knowing what days to increase size reduce size You start knowing what
1:03:14trades to increase size and reduce size on You start knowing what trades to really execute on and
1:03:18what trades to kind of avoid Right So that's where the dynamical understanding of this is very very
1:03:23important Mhm No I think it's so important because as you mentioned near the beginning there if you
1:03:29just freestyle then you're never going to learn You're not going to understand where the mistakes
1:03:34are what you're doing right what you're doing wrong By having an actual playbook and being able
1:03:39to sort of differentiate your trades because most people aren't going to just have one They will
1:03:44have different factors that means you know maybe different times different uh market whatever it
1:03:49may be um you're able then to collect the data and stats of that particular yes performance and then
1:03:56be able to understand maybe out of the the free here let's say like morning top the opening drive
1:04:00order flow maybe you know Trump's come in the markets have changed suddenly the opening drive
1:04:05isn't performing that well yes you know then to pause that bench that focus on what maybe morning
1:04:10top is you absolutely hammering great you know stats great strike rate let's go you know let's go
1:04:15focus on that yeah know exactly and I think when you have that kind of conceptual understanding It
1:04:22makes it a lot more easier for you right So that's why for me having those days and trade selections
1:04:26makes the most amount of sense for me So like now going into let's say a playbook right So this is
1:04:32where the developing thing is And once again we're still stage two and part partly stage three is
1:04:38still experimenting So it's like we can experiment here So if we pick this doesn't mean this is what
1:04:42we stick with forever Um if we pick this we want to continuously have this in the back of our minds
1:04:47You want to ask this why question over and over again right Still at this point that money is not
1:04:52important Yeah money is not important Make sure to add that in there right So the concept here
1:04:57is why like why like for example morning drive and simple simple thing right or let's say the
1:05:02morning top What I'm looking for is let's say the market closes here the day before the next day we
1:05:08gap lower and we open we open up on the first 10 20 30 minutes I look for some weakness and
1:05:14I look to short that on the downside Now if I show you that what I don't want people to do is
1:05:20I don't want people to go into this setup and anytime they see a similar action they go and
1:05:26short it Yeah You want to understand the why Okay What differentiates a setup where the same thing
1:05:33happens but what differentiates this moment to weak or strong Mhm Right What showcases on give
1:05:41or take order flow What showcases on price action What showcases to me Right what what identifies
1:05:47as weak or what identifies as strong in those two scenarios Yeah What are other economic or market
1:05:53events right That also play a big factor here For example let's say I take two setups right And
1:06:01let's say with the morning top setup this setup is what makes sense Market closes here the day before
1:06:06Next day it opens up lower It picks up It flats And now we have the same thing from the day before
1:06:13What's the difference between both There's a lot of things that could be different ones One one
1:06:17as mentioned the strength of let's say the buyers or sellers that you could read on orderfall Maybe
1:06:22let's say something on price action Maybe on this one we do have a big economic event coming out
1:06:28Maybe we do have Powell speaking Maybe we have Trump speaking Maybe there's something happening
1:06:33in the near future that this one I'm not really as comfortable as taking maybe to this one This
1:06:39one I may be comfortable taking Even if the action on the tape or the action on price action looks
1:06:45relatively uh similar because I'm factoring this in and the reason I bring these points
1:06:50in is because when you guys are developing your playbooks there's very cool concept that comes in
1:06:56here and this goes with everyone's playbook right so even if you're watching any of the playbook
1:07:01videos on this channel go back and do this exercise this will make things so much clear for
1:07:07you because when you understand a strategy from a deep point and you can really understand the other
1:07:14elements that influence it or may influence it You start having better execution You start knowing
1:07:21like a lot of trades where even I have big size I don't feel emotion And the reason I don't feel
1:07:26emotion not that I don't feel emotion all the time there's days I'm like a complete wreck by the way
1:07:30right Uh there's but there's trades I I I trade and it's so flawless and my emotions do not become
1:07:35a part of it because I understand the strategy or the playbook and the event so well and I'm
1:07:42comfortable and the last thing I'm thinking about is losing money because I'm very comfortable in
1:07:46the trade and if I'm wrong I know what I'm going to lose So the emotions don't hijack because I
1:07:50have a lot of reps and comfortability of understanding that playbook So when you
1:07:55see someone explain a playbook and talk about something what you should do is you can go back
1:07:59and you can back test it Yes So what what's what's this concept mean So for example going back to a
1:08:08morning top setup let's just say let's make let's say let's make rules for it Okay let's say we
1:08:16take this And this goes once again for every other playbook video you see go back spend time because
1:08:21this time that you spend on it it's going to help and improve your whole um philosophy of that setup
1:08:26or philosophy of what is happening in that current period So for this what am I looking for Let's say
1:08:31I'm looking for a gap down right Let's just make rules right This is my rules For this I'm looking
1:08:37for a gap down What does this mean That the market opens lower than yesterday's close So for example
1:08:44if let's say yesterday market closed at I don't know 4,000 right at 4 p.m Today at 9:30 a.m it
1:08:50opens up at I don't know 3980 It just opens up lower right That's what I want to see I want
1:08:55to see a gap down Second is this setup for me is usually within the first hour max maybe let's say
1:09:045 minutes to an hour This is when I'm looking at this I'm not looking at this 2 hours or 3 hours in
1:09:09So I think having an idea of time is also very important to know when I'm looking for this So
1:09:14when I do go back in time and I do test this this is what I'm essentially looking for Yes Right
1:09:20Second is what is my entry criteria What do I need to see This is not really my entry criteria This
1:09:25is more so like my trade setup or environment This is what you need to see to be get to that point
1:09:30Market gaps down It gaps down lower than you know a key level Uh this is the time period I'm trading
1:09:35it in So what is my entry criteria for this particular setup Uh I'm looking for a move on the
1:09:40upside upside move And I'm looking typically no follow through Now what does this mean Right This
1:09:51is once again the whole why We want to keep asking why Everything is why no follow through This
1:09:57concept of no follow through essentially means that you know we'll see a move that goes up The
1:10:03volume isn't that strong You're not seeing a surge in volume you're not seeing a surge in activity
1:10:08and you know the the conceptual understanding when you look at order flow uh and you kind of start
1:10:13understanding the tape is if price starts moving up and you're not seeing activity increase a lot
1:10:17of times it's typically not a lot of strong buyers behind it there's not a lot of activity there's
1:10:21not a lot of interest behind it that's driving price higher so that's like the first thing I'd
1:10:25want to see of like okay there's no follow-through that's my first entry criteria my second entry
1:10:30criteria is once there's no follow-through do we start seeing the action slow down Do we start
1:10:37seeing a little bit selling pressure So two things that I've seen is I'll see selling pressure kick
1:10:42in right It can be light or I'll see activity slow down Mhm And what do I mean by activity slow down
1:10:49So sometimes I'll see you know we open up we open up okay maybe not the strongest or even
1:10:56if let's say we do open up a little bit strong and then once we kind of start hitting this flat
1:11:01area price gets flat And once price gets flat around here uh activity slows down And what do
1:11:07I look for activity when activity slows down Uh the tape slows down We we stop seeing aggressive
1:11:13buyers come in Uh there's no one aggressively you know filling the ask over and over again The same
1:11:19way we saw that there once that starts happening if we are at let's say a key level an inflection
1:11:24point that's where we're moved into For me that's where I start looking for the short This is a
1:11:30short trade So I'm for my morning top I'm looking for a downside play So that short play is what I
1:11:36look into Now for me to take this trade my risk has to make sense right So meaning like hey if I
1:11:44take this trade am I positioned accordingly that if I'm wrong I'm comfortable in what I lose If I'm
1:11:50right is there money for me to be made If that makes sense I'm good to go Right now it's once
1:11:55again there's a few things we have to think about here And the reason I'm factoring these few things
1:11:59in is because I want people to understand how to think through playbooks and how to think through
1:12:05strategies Mh Right What what matters here There's a few things So there's there recently I think two
1:12:12weeks ago from the time of shooting there was a day that morning top setup like it it kind of
1:12:17presented itself very similar I didn't take it And I'll tell you why I didn't take it Because
1:12:21for 3 4 days the market's been selling off selling off selling off selling off And I was like okay I
1:12:26think right now the market is maybe overextended I'm seeing something similar happen but market's
1:12:32been so like we've been having big gap up days big gap down days And I'm like last thing I want to do
1:12:37is be caught up in this like irregular activity And I was like I decide I decide not to take it
1:12:43And that day what happened is we this is where we closed the day before We gapped down we moved
1:12:47up we moved down and then we rallied up Right So that's where the selection of like economic
1:12:54events selection of you know the last few days of what what's happening in the market play a role
1:12:59because now but now if we're selling off for four or five days we're overextended Yeah Do I really
1:13:05want to take a short trade on an overextended day Yeah I'm like ah this the trade looks good but
1:13:10like I can live with missing this one out Yeah Is the is the idea Not that I don't think it's going
1:13:16to work I'm okay with missing this one out I'm okay with not putting and even if I do take that
1:13:21trade and this is where like stage three and four and kind of kick in with dynamic risk My risk on
1:13:25this is not as aggressive Yeah No So like in that sense you're identifying factors that could remove
1:13:34certain attributes to the trade that you actually want to take So rather than it being say let's
1:13:37say you know you graded a A+ suddenly downgraded to an A and therefore you with discretion you're
1:13:43saying okay I don't really feel that this trade is the best one for me to take risk being st
1:13:58it never really matters in terms of like we're focused on it but that byproduct only comes from
1:14:02building those reps Exactly Exactly And then when when you have this foundation what it allows you
1:14:07to do is now I know what I'm looking for Right So now I know hey I'm looking for the first 5
1:14:11minute to an hour in open I'm looking at let's say I don't know ES or I'm looking at Tesla or
1:14:15whatever it is I can go back in time to let's say the last three years and I can go through every
1:14:21single day Write out my game plan spend time on like hey the market gap down the first 5 minutes
1:14:28to 1 hour Here's my entry criteria Would I take the trade No Yes No Take that build data around
1:14:34it And now I maybe in three years I maybe got I don't know 50 trades Now I have 50 trades Some I
1:14:41made money some I lost money that I can go through I'm like okay let me go through this individually
1:14:44Let me spend time This is where the time element kicks in right What this does is you can now you
1:14:50go back in time you back test you build your reps you get familiar with the market you get familiar
1:14:53with what's working what's not working Once you get really familiar with that now imagine what
1:14:58happens in real time of a trade that you've back tested for three years I mean a three-year time
1:15:02period over and over again you get so comfortable in seeing these moves that you know how to execute
1:15:07it when to execute it when it may work when it may not work And obviously not everything is
1:15:11going to be in the same environment but you get more comfortable And that's where when you get
1:15:16this any kind of strategy the idea to go back in time and back test it play with it have the strong
1:15:22understanding I think is is is something that every trader in stage two should be doing right
1:15:28That's why you'll see like traders in stage four or five really don't back test They kind of have
1:15:32things down and they have the they have enough experience and reps to do to execute stuff But
1:15:37I think when you're in stage two like why not accelerate your learning curve and try it And
1:15:42you might try this and you might say it doesn't work It doesn't make sense Okay go to another one
1:15:45Go to another one But have the proper foundational understanding of what this strategy means Like if
1:15:51I give you these rules like your question should be what does this mean It's essentially means we
1:15:57gap down market is weak market tries to make his first leg up first leg up isn't being able to have
1:16:02any follow-through that continuation of selloff happens but the action is seen on market trying
1:16:07to push up If market gaps down and it pushes down we typically get that recovery Yeah I want to see
1:16:14the market trying a little bit and if it does try you start flushing There's also this other
1:16:19thing with like the morning top setup that I see Uh the market opens at 9:30 a.m which is something
1:16:25I'll drop here Sometimes the market doesn't really open at 9:30 a.m Why It doesn't make
1:16:31sense right It doesn't Yeah Yeah Sometimes the market doesn't open at 9:30 a.m I mean
1:16:36there's what happens is so a so sometimes there's there there's particular days that some orders
1:16:42need to get filled really large orders So those orders cannot get filled right on the open So a
1:16:47lot of traders on the floor uh a lot of let's say institutions that need to kind of offload
1:16:522 million shares three million shares They're like they'll sell it to send it to someone on
1:16:56the floor and they're like I need to offload this on the open Mhm They're not going to do
1:16:59it on the open and they're like "Shit we need to wait a little bit." And you'll see action
1:17:04picks up and then 937 938 941 is when they start offloading and then the price starts dumping So
1:17:09when you see that happen that's where that big sell pressure comes in from I got you Okay So
1:17:14that's also something like I start looking into Mhm So it's like when we do our playbook video
1:17:20I'll show you examples of that of like when it happened and how I' I've read that and there's
1:17:25times where I see that happen and from like a dynamic risk risk point of view I kid you not
1:17:31I just all in all just like heavy in and I those are days I have big trades These are like those
1:17:38anomalies of finding things in the market that you see consistently and when you see it consistently
1:17:42enough making money from the markets becomes a lot easier because it's like that one setup one
1:17:48trade you see it happen it's repeated what's the difference of me making a thousand or 100 thousand
1:17:53more size going with more size that's right yeah so once you have the playbooks the process
1:17:59um and you build the reps yes you start to really identify certain nuances certain things that are
1:18:05a bit more unique and that's where your unique edge comes in which then builds your A star and
1:18:10A+ and that's where the dynamic sizing starts to step in once you build those reps Of course
1:18:14at this stage though doing these processes are so important to be a well-rounded trader and to build
1:18:19your confidence most of all because without that confidence you're never going to be able to handle
1:18:24size or be able to stay consistent Um because all it takes is a loss or a few losses to knock that
1:18:30confidence if it's not built with the as you said earlier with the the diagram you know the strong
1:18:34foundation Yeah Yeah So that's why it's like this is where I think traders need to spend a lot of
1:18:40time off the screen That's what I was saying Like they're more valuable of doing this and building
1:18:45data collection around these setups over and over again than to go back in time sit in front of a
1:18:50screen for 9 hours The 9 hours isn't really going to show them any value But if they start looking
1:18:54at this consistently they're like "Okay this makes sense That makes sense I understand the good part
1:18:59the bad part." And they start developing the playbook They start developing the strategy
1:19:02And it's not just developing this It's other stuff that we develop too But this at this stage is like
1:19:07the key thing that we want to spend time on And I and and I've seen people get out of this in 30
1:19:11days right It just depends on how intentionally you can get reps in and how much you can absorb
1:19:16from getting those reps in Uh and I've seen people in this for like 6 months I can imagine So
1:19:21that's why two to three month time period I think being in this period uh developing your playbooks
1:19:26combining your processes with your playbooks when you find these processes let's say morning top
1:19:30that's a setup you're focused on Applying it in the real market executing it taking that real data
1:19:35combining with the back testing data and just kind of working through that for two to three months
1:19:40um will give you a real strong foundation Definitely No definitely And I think that's
1:19:45what a lot of traders miss Well a lot of traders skip stage one and two all together I think a
1:19:50lot of traders don't like a lot of traders do but for or fortunately sorry that they'll be able to
1:19:56really hopefully reflect and just say okay now's a chance cuz it's not like the time periods are
1:20:00long especially like stage one and two between those two if you add them together it's not a
1:20:04lot long time if you do the work yeah but the problem here so far is like it's not a long but
1:20:10people go well I could take a trade in one month and I can make that money why would I do that and
1:20:15that's that was that's why in the beginning I went through those key points for you to accept
1:20:20You can either go through that cycle for 5 years or you can commit to this stage now and
1:20:23get out of that cycle in 5 years That's on you Most people go through cycle one naturally but
1:20:28it's like get out of it as quickly as possible Go to the stage Yeah Recognize it and make changes
1:20:32Yeah Yeah Let's take a break for a minute there guys cuz I want to tell you about our incredible
1:20:36partnership with propertrader.com Majority of you out there are prop firm traders You're using prop
1:20:41firms to leverage your trading skills to be able to get more capital and to be able to absolutely
1:20:46change your life So what's important to be able to find the right challenge for you with
1:20:50the best firms and most of all the best prices and that is exactly what propertrader.com does
1:20:57Profraderrader.com's allows you to compare prop firms be able to find the best challenge suited to
1:21:02your trading style and get you the exclusive best discounts in the entire industry so that you're
1:21:09paying the cheapest price possible for your prop firm challenge So on propertrader.com you'll be
1:21:14able to use filters to be able to do that and find the exact challenge for you Be able to find your
1:21:19favorite prop firms On the futures side we have the biggest futures firm in the entire industry
1:21:23with Apex Trader funding giving us the best discount possible Right now it's actually 80% off
1:21:29using the code PFT On the CFD side on Forex side we actually have a brokerbacked prop firm called
1:21:36Atmos Funded backed by Toxrex and they are giving an exclusive offer at 50% off all challenges Again
1:21:45using the code PFT So make sure you go do that And not only that another exclusive offer only on
1:21:51Propirm Trader with another brokerbacked Propirm Blueberry 25% off using code PFT25 while also on
1:21:59your first payout you get a free double-siz challenge account So on your first payout you
1:22:05have 100k account you will then get a 200k account given to you and on top of that you can get an
1:22:10exclusive offer only on propertrader.com with alpha capital on their one-step challenge 25%
1:22:17off using pft1 So make sure you go and do that and there's so many more exclusive discounts only on
1:22:25propertrader.com It is the go-to site for all prop firm traders out And one thing I'm really excited
1:22:31about that I personally helped to organize was the giveaway of giveaways The 7 figure giveaway just
1:22:38through purchasing your challenges for the best price through proper.com Every single week you
1:22:44will automatically be entered into an incredible giveaway a collaborative effort across all of
1:22:49these firms on screen between 100 to 200k accounts over seven figures It means that one person every
1:22:56single week who's made a purchase through propertrader.com will be getting seven figures
1:23:01in challenges that could completely revolutionize your trading journey Again all you do is for any
1:23:06of the firms on propertrader.com use the code PFT at checkout and you will automatically be entered
1:23:14every single week The link for propertrader.com is in the description below Now let's get back to the
1:23:20episode Right cool So this is this is mostly you know a lot of stage two is is is you know applying
1:23:27um you know it's a lot of it is just developing right this is not we're not scaling up we're not
1:23:31really doing we're you know looking at playbooks we're back testing uh we're we're we're taking
1:23:38we're taking some real trades right uh we're we're we're making sure we can follow our rules right
1:23:45like these things should be tackled here like if you have rules you should follow them right
1:23:49uh you have your you know pre-market game plan You have your you know live game plan You have
1:23:55your postmarket game plan Like you're doing this on a day You're doing your weekly recaps
1:23:59You're doing your daily recaps You have daily You have weekly right And now while you're also doing
1:24:05this something you want to do is you want to track all your data right You want to track everything
1:24:11in terms of your trade So like I'll give you an example Uh two good ways to track stuff is
1:24:17you want to track everything in R multiple right And I think once you build that mentality now it
1:24:22makes things a lot easier Uh you want to look at trades from our point of view So every trade that
1:24:26you look at you don't want to look at did I win or did I lose Was it a win or was it a loss You
1:24:33don't want to look at that This is not something you want to look at You want to look at R So what
1:24:38does R in the simplest term mean is if you are taking a trade and let's say you buy the trade at
1:24:45$10 right Let's say you buy one share at 10 Now before you buy the trade you should know that
1:24:51hey if this trade goes to nine I'm going to exit Okay Right So that means if it goes to nine I'm
1:24:58going to lose $1 Mhm So every trade you go into you should have that risk element combined Now
1:25:03if this trade you lose $1 you lost one R Mhm Okay Let me rewrite that You lost -1R Now if
1:25:15this trade ends up going to $12 right because you made $2 and you were going to lose $1 if you were
1:25:23wrong you had a 2:1 riskreward ratio meaning you made $2 you risked one so you had a 2R Does that
1:25:32make sense 100% Yeah So it's just dividing the potential loss to what you made Yeah Right Now
1:25:39if you were going to lose $1 but you end up losing $8 what do you think happens What does your R go
1:25:49to You have a well zero -2R Yeah that is a problem Now now it's like [ __ ] why do I have a negative
1:25:56-2R You shouldn't be losing more than negative 1R Mhm Right So when you go into this whole tracking
1:26:01element is one tracking from a R point of view What are things you want to start tracking Right
1:26:06Because now now you start building this foundation of things that you start tracking One I think
1:26:10is R Uh in R the second thing you want to start tracking and this is something that I see people
1:26:17uh you know mess up as well is how effective is your stop loss right Like if if if you show me 30
1:26:24trades and I ask you well how effective was your stop loss You should have an answer for me where
1:26:28it's like what do I mean by effective where it's like if you buy a trade here and that's your stop
1:26:35How many times does this happen Right If that happens a lot your stop is maybe too tight
1:26:40right But now it's like that's where you have to start knowing like is my stop too tight Is my stop
1:26:47improving Right Uh what is my draw down per trade How fast or slow am I going into draw down How
1:26:54fast or slow am I making money Like if I go into a trade what starts happening Is my entry right too
1:27:01early Is my entry too late Right Like what starts happening here Is my exit too early Is my exit too
1:27:13late How many of these happen Right Uh what are the times I'm taking my trades in My best trades
1:27:21my worst trades right And because your emotions should not play a role here because you're trading
1:27:25with the least amount of money you should be able to experiment this with real money data
1:27:29right real money of like seeing these patterns seeing hey are your stop loss hitting How early
1:27:34are you taking your trades Uh are you following your max loss rule Like if you say you're going to
1:27:39lose $50 are you following that Which you should right This these are things like the rules thing
1:27:44like the faster you're able to follow these things the faster you'll be able to get out of the stage
1:27:47right If you can't follow this never mentally go to the next right How fast how how effectively are
1:27:53you following this Right The times that you said you're going to trade your rules is that being
1:27:57followed Then like the setups that you said you're going to trade right Setups are you your playbooks
1:28:03are you executing them based on the follow rules right Then in terms of your findings what are
1:28:09your findings right Findings in terms of like hey this is what I learned about the market This is
1:28:13what I learned about market dynamic This is what I learned moves the market All of these things And
1:28:18what you should do when you do your weekly review you should put all of these things into a into
1:28:22a document and you should write it out Hey this week these are things I learned And I learned like
1:28:26[ __ ] when Powell does talk market does move Oh I learned when you know every first Friday of the
1:28:31month we have job reports and market cares about job report I learned that when Trump tweets market
1:28:37goes crazy right Like you start picking up on those things and then you you do that on a week-
1:28:42toeek basis to a month-to-month basis You start noticing your problems and then your goals you
1:28:47know early on when I said goals are not money your goals start shifting right Instead of it being
1:28:52money it starts going "What are my goals?" Right your goals start becoming I have a bad R multiple
1:29:00right So my goal is to make my R multiple improve How do I improve it I have many trades where I
1:29:10lose more than negative 1 R What does that mean That means I don't follow my stop loss Yes So I
1:29:15need to make sure I start following my stop That's one of my goals for this week I need to make sure
1:29:24I follow losing only $50 per trade I realize that when I do make money I immediately go into my
1:29:30second trade So I rush my second trade So this is where you start having those processes into this
1:29:36developing stage of like okay this is the problems This is working this is what's not working was to
1:29:41your point earlier in terms of stage two or even stage one but particularly sorry stage two is as
1:29:48we just mentioned with Trump for example like you might have been trading last year and then
1:29:52coming into this year the markets have changed and therefore you might have to come back to do
1:29:56this stage again even if you've been at stage five for example for the last two three years because
1:30:02the playbook might not be working or you might need to start tweaking some of the R multiple the
1:30:07the risk maybe amount or the the the ticker that you're trading or reviewing the days and the times
1:30:13etc because there's such a shift in the market Yes Um so like this is a uni as you said earlier
1:30:18a universal stage but so integral and it's not something that you do once you know it's something
1:30:24that you have to do to begin with to really build your your uh stamina as a trader your resilience
1:30:29as a trader your confidence and your systems and your processes your playbooks But it is
1:30:34something that if you've done it correctly one time it's something you're going to lean on in
1:30:38the future You know as market conditions change as you you know need to review your performance
1:30:43potentially You you might have had a bad quarter and you need to review that performance And this
1:30:47is essentially where you're going to come back to Yeah So that a lot of here is just developing this
1:30:50thing And like I said the the the big thing here is just data collection right Uh and then once you
1:30:58have data collection and you start knowing the mistakes you're making you start building your
1:31:02playbooks you start making the mistakes and you start applying it is where we start going to like
1:31:06this like optimization/intermediate stage right This is where we start really applying and we
1:31:13start optimizing the things that we've done which is like stage three right This is where you should
1:31:19be an intermediate trader Yes not making money but you should have your playbooks established
1:31:25You should have back tested for you know a good amount of time and you should have built a good
1:31:28foundation of the markets You should have your rules and these rules will adjust as time goes
1:31:32on And as you start saying well you know what not until 11:00 a.m Let me do it to 12 You might say
1:31:38uh you know instead of taking three trades I'm going to take five I tend to take more trades
1:31:42and I get one to two winning trades Um you might adjust something with your process here and this
1:31:47is all open Like this is not something I want to be so opinionated on but this is just a framework
1:31:51that you should follow But by here you should have enough data of yourself Yeah Of the mistakes
1:32:00you make of the things that you're doing good the things that you're doing bad such as your
1:32:04bad or multiple You move up your stop too much Uh you don't follow your stop for example You
1:32:09don't follow your risk amount Um maybe you choke your trade and you mismanage it Yeah You mismanage
1:32:15trades Maybe like like by by this point like when you go to stage three like you should know
1:32:20your biggest problems Yeah Right Like you should have enough data and good data right That's why
1:32:26the one before is data collection And if you have good data on your processes and on your behaviors
1:32:32you should be able to know how to fix the problem Because if you don't have good data and you don't
1:32:36have good stuff you won't know what problems to fix Yeah Yeah Because I think every trader
1:32:40ends up having their own pattern like negative patterns and positive But the ones obviously we
1:32:45need to focus on to reduce down are obviously the negatives Yeah And uh you know it could be it's
1:32:50a whole different things like normally I think there's reoccurring themes yes with individual
1:32:54traders for one person they might be choking the trade another trader might be uh cutting
1:32:58off profit too early too much volume too early another trader might be oversizing you know it's
1:33:04very unique and that's the problem though because then if you don't do the data collection properly
1:33:09yes you can try and remember like you probably do that mistake and be like I've done this before
1:33:13but the data can maybe when your data collection is done properly There may be other correlating
1:33:20factors to it you know like it might be bad sleep for example It might be that there was some sort
1:33:24of market movement the day before but then the next day if you're trying to follow your plan
1:33:28you as normal doesn't perform right Uh or the market movement the day before has then caused
1:33:34you to be a bit more emotional coming into this day So you make a mistake and that's why that data
1:33:38collection is there because to yes to pick up on maybe like hey I keep oversizing for example Yeah
1:33:44that might be something you you remember here but the knock-on effect of why you've done that isn't
1:33:49something that you're going to constantly be able to collect Yeah And then having that once again
1:33:53good data collection allows you to go into your problems allows you to tackle your problems And
1:33:57once again by this point you should know all of those problems You should have solutions for them
1:34:03and you should start implementing the solutions right And by now like stage three beginning like
1:34:09there's the beginning of stage three and then ending before you go to stage four Here's where
1:34:13you know the problems and before you even go into stage four you should be able to execute
1:34:19your playbooks well You should be able to have a good foundation of your playbooks You should be
1:34:23able to have good trade selection You should know all your problems and you should be able to tackle
1:34:28them Yeah you're not going to solve all your problems but the idea should look like problem
1:34:32fixed problem fixed problem fixed problem fixed So it's like every time you have a problem you have
1:34:37this process of a identifying the problem because you have good data collection knowing what the
1:34:42problem is on a deep level and knowing how to fix it Yeah And keeping a way that a way of tracking
1:34:48that you're fixing it like hey my process is like something that happened with me early on is I used
1:34:53to be so biased in my pre-market game plan that I used to miss the real good trades because I
1:34:57was so biased in one side I never used to have enough space to allow myself to be flexible I
1:35:02was like "Oh I think the market's going to go down today." So I'm looking for shorts Market
1:35:05starts rallying I'm not taking longs I'm still shorting So that was a problem I had And the way
1:35:09I found that problem out is by doing this process where hey I become so biased right And that bias
1:35:16blocks me from taking any other trades So going into this week I need to unblock the bias Going
1:35:22into this month I need to unblock the bias And I need to be more flexible And solving some problems
1:35:26like this don't happen in one day This could take weeks if not months Yeah It's identifying and then
1:35:32actually addressing that Do you feel like it's important to address a specific problem one at
1:35:38a time or is it something that you should if you've identified let's say two or three you
1:35:42should still tackle two three of them I I I think you can tackle they're typically in the different
1:35:47spaces right So like one is like at the same time Yeah One is bias second is like my risk is
1:35:52off I can control my risk moving forward too But it's like the problem here isn't you know there's
1:35:58three problems here One is identifying problems So it's like if you identify problems you're already
1:36:03like ahead of 60% of people because I don't think people can identify problems Well then it's how
1:36:09do you tackle them Like what is your approach Like okay if you're biased what do you do Mhm
1:36:14Then third is doing it This is like problem people like there's so many traders that'll tell you this
1:36:21is my problem Yeah Okay What are you doing to do that I don't know Every time I hit the same thing
1:36:26So it's like you need to have that plan and then you need to implement that plan Yeah This is the
1:36:30whole like the whole stage three is that and give yourself the time to do it as well Yes And like do
1:36:37this 6 months 3 months two months Money doesn't matter The money doesn't matter Exactly Because
1:36:43again you know just off the last point but this one in particular the money will come as a byprod
1:36:48because this is literally the part where it starts to form Uh because if you then are fixing these
1:36:53problems and these mistakes and spending the time to do so yes this will then sort itself out This
1:36:58is where you'll start seeing some progression and whatnot but that's still not the goal The
1:37:02goal here starts coming into like stage four 100% Right So now this is where we start going to stage
1:37:08four And once again you don't you go into these places when you get comfortable There's no like
1:37:11I I I don't want to put a hard time limit on it but I also don't want to put a hard kind of pause
1:37:17on it either I think this is one of those things you navigate through on your own uh as time starts
1:37:22going on right So once we get stage three out of the way we've optimized we've understood our
1:37:27problems and we start tackling our problems And you should be able to tackle them And all of these
1:37:30problems should be trackable in terms of problem solved problem solved problem solved And until you
1:37:36get that healthy feel of doing that repeatedly you don't go into stage four Stage four is this
1:37:41is where we start playing the size up game right This is where you start hitting the advanced level
1:37:50This could be 6 months later This could be a year later right Does all dependent on you right This
1:37:56is where this guy comes in Emotions This is where he is like right there Yeah I can imagine Right
1:38:05He starts hijacking everything Uh makes everything a complete mess a complete nonsense right So here
1:38:12it it comes down to knowing how to take dynamic risk right I think it's knowing how to increase
1:38:20risk and how to be risk on and how to be risk off right this is like very important So once
1:38:27again stage four tip people are not in this like even if it takes you a year to get here
1:38:32that's okay I would rather people take a year to get here then like you know like get to a point
1:38:40of like doing it too fast sizing up blowing their account So like a year a healthy time Now there's
1:38:47some things that you go through here Okay so this is one stage that I know many traders are stuck
1:38:53at Like I know traders that are profitable they make money but they're like "Every time I size up
1:38:57I kind of get stuck on making more money or I get stuck on getting to the next stage." And there's
1:39:02kind of a process Like even for me like I'm still trying to size up I've sized up I'm still trying
1:39:06to size up You always go through like when you get to four you're always in like four and five You're
1:39:10always in four and five You're always in four and five right Five is like you start cruising and
1:39:14then when you're ready to size back up you go into four Mhm Right So for me at this particular stage
1:39:20u it's identifying a few things and one thing is this part plays a big role It steps in in every
1:39:26single category Uh you have to start learning what your emotional triggers are Interesting Yeah Right
1:39:33What I think every every traders have unique ones Every trader I think has unique ones Right Uh like
1:39:39some people like your ego gets in the way Some people you know they don't like this also gets
1:39:45eliminated more If your stage threes don't act good this gets eliminated more This still pops
1:39:50up because like naturally we don't want to lose money right We as humans do not want to be in a
1:39:54place where we lose money Uh where we're wrong where we look stupid uh especially on a larger
1:39:59scale Also on a larger scale whenever you have more money involved you feel the burn Yeah Right A
1:40:07lot more Yeah Way more And two three times of this is really bad So here's where you start having new
1:40:12rules for risk right So like some rules I have if I have a big trade on the open my second trade I
1:40:20usually size down or I I'm more focused on my size on the second trade where I'm more cautious Mhm
1:40:27So what I used to do early on is I would have a big trade on the open my second trade is a
1:40:31second bigger trade and then I would lose it all Right So it's like knowing what to do during big
1:40:38trades knowing what to do during bad trades right There's like and these bad trades and good trades
1:40:45become more more important because there's more capital behind it So it's like typically I would
1:40:50have a bad trade it's like [ __ ] I risked 30 or 40 grand on a trade If I take a second trade for
1:40:57me to make that back I need another big trade Yeah Do I need to go big trade again Like how
1:41:01do I dynamically play with my risk at this point Right cuz that's it becomes a pro like a formula
1:41:05thing because if you then downsize and that one wins is mine are covered Yes So that's where you
1:41:12know knowing where to size up Mhm Right And it's a lot like for people that played poker it's a
1:41:18lot like poker right like you'll have hands that are really good and then just because you had a
1:41:23you think you had a good hand and it didn't work out doesn't mean the next one when you
1:41:26don't have a good hand you go all in again Yeah So it it now it's like the trigger point becomes
1:41:31important because you need to know well I need to be patient right and there's this thing of
1:41:36sizing up it's like this automatic mental law that happens but the moment you say I'm ready to size
1:41:41up right moment you're like I'm ready you get very blinded by trades every trade looks good right
1:41:48and then when you go into the trade you're like [ __ ] every trade is not good right so when you
1:41:53when you're in this mind mindset of sizing up uh a lot of it is going into like okay just because I
1:41:59can size up doesn't mean I should size up So it's very similar to poker Just because you can go all
1:42:04in doesn't mean you should go all in on every hand Right So there needs to be rules here in how you
1:42:09do it Right So it's like a staircase right So if let's say you're risking $100 a trade you can't go
1:42:14and risk one a trade Yeah Because too much of it There's a 10 to1 ratio there Yeah So now you have
1:42:20to be right 10 times to recoup that So I usually say like 20 to 30% is a good starting point maybe
1:42:28So if you're doing 100 go that 120 130 Yeah Like you because the thing with sizing up it's not like
1:42:33you don't just wake up and you size up like like I want to size up and like I want to take bigger
1:42:38trades on my day trades and I want to instead of risking like 50K 60K I want to go risk 200K 300K
1:42:45but I can't do that on one trade because if I go into a trade tomorrow and I risk 300K my normal
1:42:50risk size of 30 to 50K is not going to catch up to that 100 especially if I'm in draw down like it'll
1:42:56put me in this really bad bad stage So for me it's like okay well if I'm starting off if I am risking
1:43:02let's say 50k I can maybe go to 70 I can maybe go to 90 right and 90 even double sometimes but
1:43:08depending on the hand depending on what the hand is presented on that setup I'll start adjusting my
1:43:13risk it also sizing up also goes into a little bit of you know your percentage increase Yeah
1:43:19right like what that percentage increase is right like I said I think it should be 20 30%
1:43:24Uh there's also your how you've been trading right Like historically or not even historically like
1:43:31kind of the compounding like um you know if you let's say you've done 50k trade you've already
1:43:35won one now you do a 20 30% increase you win that one Yes then you can do another 20 30 you know
1:43:41percent increase again there's yeah there's like this whole thing with it right because there's
1:43:44this element of like what is your recently how how have you been trading recently and if like
1:43:50recently I'm not in draw down fine I have the card to increase my risk when I see a good setup but if
1:43:57I'm in draw down you know in stage four in stage four stage five it's a little bit different but
1:44:02in stage four if you're in draw down like you're not at expert level with risk right we're in stage
1:44:08five you should be an expert level with risk where even if you're in draw down you should be able to
1:44:12say I'm in draw down but I see a good handle me going in and that's what like professional traders
1:44:16do but at this stage because you're not at the professional level if you're in draw down like
1:44:21your like card to risk should be cut down Yeah Some some other rules that I have that I think
1:44:26works really well for people is you can take one to two max trades a month Yeah With increased risk
1:44:33So it's like this special card that you have that you're like I can only use it twice this month Do
1:44:38I use it on this hand Yeah that gives you like they're very selective Yeah So it helps you a
1:44:42lot in the early early points in stage four to be very selective on the good trades right And
1:44:48then it also depends on markets What's the market condition If you can read the market condition and
1:44:52you're getting a good flow with the market sh size up play with size But it's like when Trump came
1:44:57into office market shifted people blew accounts everything went up and down Should you size up
1:45:03around that time Probably not This is when you should be on like the left side of the spectrum
1:45:08of sizing up your game or sizing up you know your positions You should be a little bit more
1:45:13cautious So that's where the markets matter How you've been trading matters and then how well you
1:45:18increase So now if you increase 20 30% You stay at 20 to 30% for like 2 months Yeah And then if
1:45:24you have one to two trades you can increase 20 30% Then you have maybe one where you can increase 50%
1:45:31So it becomes very selective of when you do it and you this part's really important because the
1:45:38biggest problem I see here with people is I think when they know they can size up they do it either
1:45:43too early or they get mentally blocked out on what trades they should size up on They kind of
1:45:49hold they failed to pull the trigger and and what what another thing too much as well Do you think
1:45:55it it happens too much and on bad trades So I'll give you an example and this has happened with me
1:45:58right like countless times like countless times right I take a trade I make money I I go normal
1:46:05size okay take another trade I make money normal size [ __ ] why did I go normal size in these
1:46:14trades I'm such an idiot why didn't I go more size on this you know what next trade I'm going to go
1:46:20more size go in here my emotions block that more size I lose money Yeah Similar pattern The way you
1:46:31break that pattern up is every trade or every hand is new Mhm And just because you made money on this
1:46:37trade doesn't mean the next setup is good There's this thing that we have and this is where emotions
1:46:41hijack Emotions hijack Just because I had a good setup yesterday does not mean I'm going to have a
1:46:45good setup tomorrow And does that make that setup better or worse That's a new setup new market new
1:46:50everything There's also an element of like your confidence level because emotions comes in So
1:46:55let's say your confidence here is like let's say this is a confidence chart and during this trade
1:47:00it's here during this trade it naturally goes here during that trade it naturally goes here and when
1:47:05it's here is when you lose money Yes Right So so knowing like that's where when you're sizing
1:47:10up this emotional meter or emotion meter kind of gets broken Mhm Is there anything you do to sort
1:47:18of help do the reset you know in these moments you know whether it's routine based or whether it's
1:47:22journaling based or anything like that Yeah So I think for me like I said the the daily journaling
1:47:27is very important Like I have daily journals where I'll say you know yesterday's session
1:47:31yesterday I missed two trades and because I missed two trades uh I I I know there's a little bit FOMO
1:47:36that exists because I missed this big day and I you know didn't execute on it So I need to be a
1:47:40little bit cautious and when I look at trades just as a note look at it from a fresh point
1:47:44of view right And don't factor in what I lost in yesterday So I think those reminders help
1:47:49Uh something else that I do is if I'm on a really good hot streak which is something I
1:47:53haven't broken out of yet There are times where I take time off during hot streaks because I've
1:48:02had periods in the past where I've been on like a two three week hot streak and a week later I give
1:48:07it all back Yeah Like just like not even a week two days I give it back It's just naturally your
1:48:13excitement level and your confidence level goes up and up and you get blinded And as you get more
1:48:18and more blinded you start taking these stupid trades over and over again and it just kind of
1:48:22ultimately kills your performance So for me it's like if I go on this like crazy good streak I
1:48:27I'll either step away or I'll size down a little bit and I'll let myself reset right And I think
1:48:33when I let myself reset it just allows me to get a lot more comfortable with the overall environment
1:48:38It's kind of like this chart you marked out here You know at these moments both on the positive and
1:48:44negative you know let's say you've had a really hot streak you're still you're heightened If you
1:48:48had a really bad streak is heightened and that's at those heightened moments is where the mistakes
1:48:52come in And you know it's so like the filters are down and the the critical thinking are down So by
1:48:58taking that break here it allows those emotions to come down before that takes place before that
1:49:04crash and burn you know and and that's the main goal of here right in stage four This is this is
1:49:08something you'll be in maybe a year or two years itself just being in this stage like you can be in
1:49:12this stage for a really really long time like I I think even being here for two years three years I
1:49:17know traders that have been trading for 5 years they're still in this stage at this stage you're
1:49:21making money Yeah Yeah You you should be making money is the thing you should it's not like you're
1:49:25but it's just stage five is where because the thing is stage five is where everyone's goal is
1:49:29but they just they don't understand the all the stages we've gone through so far They just don't
1:49:33they kind of skip over that Yeah And the thing is goes back to your first point you know on stage
1:49:38one or not before stage one but when we were just mapping out expectations having that expectation
1:49:43Yeah I speak to so many traders whose goal is to be an eight or nine figure trader but they have no
1:49:50idea in terms of what it takes You know thankfully we're mapping it out here but that's it always
1:49:54makes me so intrigued in their mindset is that if you have a goal surely you should know what
1:50:00it's going to take right versus just assuming you just keep trading Yeah And one day you get there
1:50:04Exactly You know and I think having that road map and understanding that is important And the main
1:50:08key takeaway at this stage right And this stage is something like you never fully graduate from
1:50:13stage four You go from stage four to stage five and then you go back to stage four whenever you
1:50:17want to size up And like like even for me like I'm going to go back in stage four as I want to
1:50:22size up And then when I get to stage five I'm in that comfortable size and comfortable risk
1:50:26uh proportional element of like what I'm risking what I'm you know taking on and so on
1:50:30Uh but the main key takeaways on this size is like knowing what that increase size is for you
1:50:36right so number one is like knowing hey where do I increase size and what that max size looks like
1:50:43right so it's like the max size and then I think the other thing is just knowing this emotional
1:50:49meter of yours knowing when you get to the top knowing when you get to the bottom because you
1:50:53have the low points like I have days where I have low points and I want to like take every trade
1:50:58to make that back and it's like sometimes it's not having the money element of making it back
1:51:01It's just it's performance It's and you get this performance thing of like [ __ ] why did I lose
1:51:05money Why did I take this stupid trade Like why am I such an idiot You want to wipe the slate clean
1:51:11Yeah And that's not typically the best place to be We have to press reset you know Yeah And here
1:51:16you have to find your things to to to to do it like like one thing I like that works for me is
1:51:21just walking away Yeah Like I I I don't I don't have the emotional control and this is me being
1:51:26honest where if I have a bad four trades and you tell me to sit in front of my computer for 5 hours
1:51:32and don't take a trade I would not bet on myself to not take a trade I know I would end up taking
1:51:38a trade It's just something I know I'm going to do So the way I avoid it is I just walk away I don't
1:51:42need to be in front of my computer at that point Uh I know I'll end up taking a trade and I've done
1:51:47it countless times So for me to restrict it is I'm not going to fight the urge to not take the trade
1:51:51I just won't be in front of my computer Why do I need to be in front of my computer So that's where
1:51:56the rules and the guidelines and the things you need to do you know kind of help to to facilitate
1:52:02this process Yeah definitely Yeah So this I think I think if most people make it till here I think
1:52:07they're good in my opinion I think this is like a healthy place to be in I think I think it's
1:52:11like stage four and five right Uh where because I think there there will be some traders where they
1:52:17stay at stage four right they don't go to stage five and that's there's nothing wrong with that
1:52:21right Um it's about your goal and expectation like like this is where I think Yeah This is where I
1:52:28think the healthy spot is Exactly Right I think like inner down here and I think I think here is
1:52:33like whenever you want to tap into like you have your comfortable size uh you have your processes
1:52:38like at at this point is like let's say your max risk is 10k your average risk is 5k you have your
1:52:44five three to five setups you know you're good at understanding your emotional triggers right you
1:52:50have a process right uh you can identify setups you can identify markets uh you know when to
1:52:58trade when not to trade Right You're like I know when to trade I know when not to trade You can
1:53:03repeatedly use this process this framework and you can adjust Right So a lot of times people that are
1:53:08even you know here as well but here you're you're kind of in the battle area of like increasing and
1:53:13decreasing size But I think at this point is where you have this process during this whole
1:53:18time where you can repeatedly make money You can repeatedly adjust to market conditions You
1:53:23can know when to take time off You can know when to be aggressive you start having this
1:53:27this I I I I do think you know most times you'll hit maybe three years maybe five years for some
1:53:32people depends on what whatever it is but I think this is where you can get to and these these time
1:53:38frames all depend on how quick you learn how much time you're putting in how intentional you are
1:53:43um you know your learning curve uh all of these different stuff like for me honestly I probably
1:53:49didn't get here until like year eight I probably didn't get till year eight and and the main key
1:53:55takeaway take away from here What you should feel in this and this is what once again when I got to
1:53:59year eight is I can do this again I have you know and you know going back to the aha moment that I
1:54:05was saying before is you always chase this aha moment but there's never aha moment but there's
1:54:09more more so like a process and an ingredients of knowing I can do it again I know that if I stick
1:54:15to this long enough and I know if I follow this process I will eventually figure it out So it's
1:54:20like even going with this new Trump market that I see a lot of people struggling with If this
1:54:24was me in like 2016 I would say "Oh my god am I gonna make money this year Am I gonna do well How
1:54:28am I going to deal with this?" But I think now being in 11 12 years I'm like "Okay well I've
1:54:33seen this market change countless times This is not the first time It's not the last time."
1:54:36I understand when the market shifts this is how I need to approach it and this is what I need to do
1:54:41That's the thing So like you you can see the clear differences of those traders who have been through
1:54:46some market shifts before like yourself uh versus this is their first time Yeah Right the first time
1:54:52uh sort of traders are panicking and sort of emotional and making mistakes kind of confused
1:54:57Yes You know will kind of put their projection onto the market of like this is crazy this is is
1:55:02it always going to be like this etc Um they don't know how to adapt versus the ones who have been
1:55:06through the market conditions they understand right They understand that okay maybe they're
1:55:11not going to actively start trading just because you know they understand what's going on It's more
1:55:14so that they just know to either step back to reposition reconfigure pause whatever it may be
1:55:20Um and that's where like that experience comes in And that's as you said like there isn't an
1:55:24aha moment but when you understand the power of process the power of data the power of these
1:55:31decisions and these minute details Yeah That's kind of your aha moment you know but it's not
1:55:37a one thing and it's not something that click I mean that's the thing Everyone's looking for
1:55:41a light bulb moment where it's like whoa I know now And then from this day onwards it's easy you
1:55:46know Um and that's the difference And I think this really is highlighted you know these five stages
1:55:51especially I'm I'm glad actually we went into you know really really uh big detail in stage one and
1:55:57two because that's where I think majority of the audience probably are Um but their goal is to get
1:56:01to four and five And if anything you get to see that four and five isn't like really about this
1:56:05huge monumental changes is actually the you know step one two and three Exactly And then it's just
1:56:10little tweaks then for four and five to really take you to a to a new level you know Yeah And
1:56:16and the the like I said the simple thing here is just you have this like four or fivestep process
1:56:22that you can do very fluidly in stage five Yeah And no matter what issues and problems you go
1:56:26through you can always you know go through it and then hit profit Go through it hit profit
1:56:31Go through it hit profit And it's like if you can't do that you have issues in stage one two
1:56:35and three And you've not spent enough time And and time is important here because I think what
1:56:39people don't get with time is you can't skip any of these because you need to go through
1:56:44when market shift You need to go through when you know you're in draw down Like like I always ask
1:56:49people traders they're like oh I've been trading for one year and I'm like have you been in draw
1:56:53down They're like no not yet I'm like hm okay well we'll talk again when you're in draw down because
1:56:57I want to see when you're in draw down I want to see how you react to that I want to see oh you've
1:57:00been trading for one year Oh [ __ ] you've been trading such an easy market Like during Biden's
1:57:04administration I think the market wasn't hard personally right I think it was a very easy
1:57:08trending market for the most part Not all the time So it's like if someone traded in a certain time
1:57:12period I don't think they have the experience yet And now those same people that like no I I've got
1:57:17it I know people that blew their accounts the last quarter right They they got ultimately
1:57:22destroyed I know people that couldn't execute a trade Because what happened last quarter is
1:57:26the market sentiment switched so much in a short period of time that people could not adjust to it
1:57:31And that's where like people that are in stage five or you know on a higher stage they have the
1:57:36time limit of like they have the experience of time which is important to know like I've seen
1:57:41this before I know how to do it I've been through a draw down I know how to handle a draw down Uh
1:57:45I've been through you know taking a big bet where everything looked right and it went against me
1:57:48but it didn't destroy my confidence because I understand the market is you know market switches
1:57:52and market's always right So those things like this is why I say like this is like a three to
1:57:55five year process even though it took me eight Um but I do think it took me aid cuz I wasted a lot
1:58:01of time on stupid stuff right You didn't get the to have this sort of insight right It was that
1:58:06and I I do think there's a lot of great things out there of like understanding what a proper
1:58:10playbook is how a proper playbook is set Same thing That's why I was saying with this channel
1:58:13like when I looked at this channel initially I was like "Holy [ __ ] I look at this from like
1:58:17the 18-year-old Omar that's starting out and looking at like seeing everyone's playbooks and
1:58:21I can have an opinion on oh that makes sense that doesn't make sense." seeing that is like
1:58:25holy [ __ ] that expedites your learning curve so much instead of going through this and then
1:58:31when you have a framework and you apply those things in the framework I think it cuts your
1:58:35learning curve and point to profitability by 50% Yeah Yeah I love that Well thank you again
1:58:40and I'm sure we could have kept going and we definitely have to sit down and do uh you know
1:58:44the order flow and one one playbook at least Um but everyone at home drop a comment of your
1:58:48biggest takeaway from this episode I know there was so much Any questions you have for myself or
1:58:53maybe Umar just drop them in the comments below Links for Umar will be in the description below
1:58:58as well Hit subscribe Other episodes are on screen This has been Chart Fanatics Take care

About this transcript

This page contains the full transcript of 12 Years of Trading Knowledge in 2 Hours - Umar Ashraf by Chart Fanatics, generated from the public captions YouTube serves with the video. The transcript has 25,063 words across 1,318 segments, with the original timestamps preserved so you can click any line to jump to that moment in the embedded player.

What you can do with it

Use the transcript to take notes, quote the speaker, build a study guide, generate a summary with ChatGPT or Claude via the YouTube Summary tool, or export it as a timed subtitle file with YouTube to SRT. You can also re-open it in the transcriber to translate the transcript into 100+ languages.

Free YouTube transcript tool

YouTube2Text is a free YouTube transcript generator — no signup, no daily limit. Paste any YouTube link and get the full transcript instantly, with timestamps, click-to-jump, translation to 100+ languages, AI prompts for ChatGPT, Claude, and Gemini, and exports to TXT, SRT, VTT, or Markdown.