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$30+ Million Verified Trader vs 15 Unprofitable Traders (FT Umar Ashraf) — Transcript

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0:00I'm guilty of [music] incredible
0:01overtrading, sometimes taking up to 100
0:03trades a day, which is insane.
0:05>> Absolutely insane, I know.
0:06>> Wow, I don't think there's [music] any
0:07human possible way for you to be able to
0:10get into a trade, decide what's going to
0:11happen next, get into a second trade.
0:13You just have 100 random trades. And the
0:15problem with that is
0:15>> Do you want to see what happens when you
0:16take 15 unprofitable traders and sit
0:19them with one of the best traders in the
0:21world? Well, look no further as we take
0:2415 traders and sit them with the one and
0:26only Umar Ashraf.
0:28>> Prop firms are essentially a coin flip
0:29for the future, but the way
0:30>> Prop firm business models work is by
0:31your fees. That's the reality of a prop
0:32firm.
0:33>> So, when you have like such [music] a
0:35big loss, how do you how do you approach
0:37it?
0:37>> Your job is not to make money. Your job
0:39is to get data, get good, get better,
0:41get better. And over 2 years and maybe 3
0:42years, when time comes you'll make the
0:44money back. Stay away from options.
0:45>> Yeah?
0:45>> Yeah, yeah. That's someone [music]
0:46that's trade options. So, I'm telling
0:47you just like don't trade options. I'm
0:48telling I'm being honest with you.
0:49>> Yeah, don't trade options. Yeah, yeah.
0:51>> Trade options if you're like
0:52>> Umar has achieved over $30
0:55in verified trading profits. [music] And
0:57in this episode, he breaks down exactly
1:00the mistakes that every single one of
1:02these traders are making.
1:04>> If you're going to continue this way,
1:05I'll tell you now just to stop. Just
1:06take the money you're going to burn and
1:07split it here with everyone. That's
1:09what's going to happen. I'm just being
1:09honest. The market doesn't care if
1:11you're insecure, you're secure, or
1:12whatever. The market doesn't [music]
1:13care. Market's literally going to take
1:14your money away. We're always going to
1:16have our emotions hijack our thinking
1:17process, no matter what it is. Like, for
1:19me to say, "Oh, we're going to eliminate
1:21your emotions." means you're not going
1:22to be human.
1:23>> But not only that, he goes through the
1:25exact steps and actions that each trader
1:28needs to take in order to [music] see
1:30profitability and consistency. See the
1:32journey from start to finish in this
1:34special [music] episode of Words of
1:36Wisdom.
1:36>> So, two things. More information in
1:38trading doesn't make you a better
1:39trader. Less information will always
1:40make your life easier. One common
1:41mistake that people make, and I used to
1:43make this too, is
1:46>> lack of consistency and strategy
1:48switching.
1:52>> Hi Umar, how are you doing?
1:53>> I'm good. How are you?
1:54>> Good, good, good.
1:55So, I feel like that's probably one of
1:57my biggest flaws in trading I especially
1:59because recently I had reviewed all my
2:01recent trades and
2:04I remember watching one of your videos
2:06and one of your videos you displayed bad
2:08trading good trading. Bad trading is
2:10where you don't follow your process, you
2:12don't follow your risk rules or your
2:13plan at all. And good trading is when
2:15you do follow these things and whatever
2:17the result is, well,
2:20when you do follow it's a good and
2:22proper process.
2:23>> Yeah.
2:23>> I've had this difficulty for a while now
2:25and it feels like I'm very attached to
2:28the market attached to my overall
2:30process when I make it. My goal is to be
2:33a little bit more detached when I do
2:34this process so that I'm not having this
2:36level of expectation of it going in my
2:38direction or it not going in my
2:40direction.
2:40>> Got it. How long you've been trading
2:42for?
2:42>> About 6 years before 4 years I've taken
2:44it as serious as possible.
2:45>> Okay. And when you say you've been
2:47taking it as serious as possible for
2:48years, what do you mean you've been
2:49taking it as serious?
2:50>> So, my first year was just straight
2:53content learn as much content as
2:54possible then second year was
2:57applying this content.
2:59>> Okay.
2:59>> And then third year I learned about you,
3:01I learned the importance of journaling
3:03and reflection and I did not journal for
3:05that my last 2 years. Started
3:07journaling, started getting proper
3:09proper process and then my fourth year I
3:11invested in Tradezilla and has
3:13have had more direct knowledge of what
3:16I've actually been doing right or wrong.
3:18>> Okay.
3:19And then [clears throat] what do you
3:20feel like you're not consistent with?
3:23>> So, a little bit of my inconsistency is
3:26with not following my plan.
3:27>> Okay. Why do you think you're not
3:28following your plan?
3:29>> Um because sometimes I feel very
3:31intuitive but it's becomes [snorts]
3:33impulsive after because I attach my my
3:36levels of emotions to what the market is
3:39currently doing or not.
3:40>> How do you know that's true?
3:42>> Well, when I reviewed my process I like
3:44I mentioned I realized that a lot of my
3:46planning I did wasn't following. It was
3:49more or less of I see my edge, let me
3:50execute upon it.
3:51>> Okay, so you would have a plan
3:54>> Mhm.
3:55>> and then your executions would be
3:57different than that plan.
3:59>> And then when you would look at the plan
4:00after the market closes or session ends,
4:02how was your plan according to what
4:04actually happened in the market?
4:06So it was a good plan.
4:07>> It was Most of the time it was a good
4:08plan.
4:08>> So the plan was good, your execution was
4:09one problem, okay? And then the second
4:11problem is strategy hopping, right?
4:14>> Yeah, you can say.
4:15>> Okay.
4:16Uh
4:17interesting. So
4:18you've you've you you saw your impulses,
4:20you see your you're switching up. Now
4:23question I'm just trying to first gather
4:25some data for myself.
4:26>> Yeah, appreciate it.
4:27>> Is your is your has your size during
4:28that process been consistent? Like does
4:30size increase or decrease make you
4:33become more impulsive? Like what's that
4:35size look like?
4:35>> So size is static, but it becomes hard
4:40because sometimes let's just say I break
4:42even on the idea, it loses.
4:44>> Yeah.
4:44>> And then I'm jumping back in again
4:46because I think the reaction is still
4:47valid.
4:48>> What are some rules you have when you go
4:49into a session? Like what are like
4:51hardcore four or five rules you must
4:52follow?
4:53>> Four or five rules that I must follow is
4:56well, I'll be honest, I I can't say that
4:58I know my rules as deep as I need to
5:01know them.
5:01>> Yeah.
5:02Okay. So I think that's one problem.
5:05Uh so so
5:07there's a there's this thing with
5:08trading, right? We're always going to
5:10have our emotions hijack our thinking
5:12process, no matter what it is. Like for
5:13me to say, "Oh, we're going to eliminate
5:15your emotions." means you're not going
5:17to be human. Like that's impossible. So
5:18let's get get the idea that we're going
5:20to remove emotions out of the picture.
5:22>> Mhm.
5:22>> The idea is to have a proper framework
5:25or structure that helps you avoid making
5:28rules. Like for example, there's a law.
5:30The law exists that hey, if you break
5:31the law, you get punished. What is the
5:33law? So now that goes into rules. So
5:35your rules have to be around some of the
5:37problems and impulses you're having. So
5:39the first thing I'll tell you that's
5:40really good is you know what the problem
5:42is. You've identified it and you've
5:44proven in that this is the problem. My
5:46impulses happen
5:48uh and it doesn't allow me to follow my
5:49plan. It doesn't allow me to kind of
5:51execute on it and a lot of people don't
5:53even have a good plan. So, the fact that
5:55you have a good plan, that's already
5:57like
5:58to me you're on the right track.
6:00>> Appreciate it.
6:00>> Okay? Now, in terms of creating rules,
6:03that's what we're going to do right now
6:04and like what the rules should be and
6:06how you should structure those rules.
6:08Uh I'll throw some stuff out cuz once
6:09again, I don't know as much information
6:11about your trading, right? Do you go
6:12into days knowing like
6:15like do you have a max trade count? Do
6:17you have, you know, max drawdown amount
6:19that you have set or not?
6:20>> So, it's five trades max. Drawdown five
6:22losses max.
6:23>> Five losses max?
6:24>> Yeah,
6:25yeah. Because after I realized that
6:27after four or five, I'm not the same way
6:29I need to be for the week. I'm very
6:31subjective.
6:31>> How did you come to that number four or
6:32five?
6:33>> Um because I realized that well, after
6:36three or four losses, I'm feeling very
6:38emotional. I'm now taking trades at the
6:40end of the week when I should be the
6:42most optimal, I'm not even trying to
6:44trade anymore.
6:44>> And then when you do have these losses,
6:45is your size increasing, decreasing,
6:47staying consistent?
6:48>> They most of the times stay consistent.
6:50>> Hm. So, your size is staying consistent
6:51three, four losses, five losses and then
6:54how many trades are you taking on a on a
6:55given day?
6:56>> I like to stick to one or two trades a
6:59day.
7:00>> So, you like to stick to one to two
7:01trades a day but your max loss
7:04trade count is five.
7:05>> A week.
7:06>> Oh, a week.
7:07>> yeah.
7:08A week.
7:08>> But why are you doing that in a week?
7:09Why not do it per day?
7:11>> Because like I mentioned, after three
7:13losses, no matter if it's on an
7:15individual day or if it's on a one week.
7:18>> Do you do you have a hard time
7:20disconnecting from a trading session
7:21into the next one or do you connect them
7:23together?
7:23>> I connect them together.
7:24>> Yeah, so that's one problem, right?
7:27So, [clears throat]
7:28this is a common problem I see with
7:29traders as well is
7:31you can have a good trading week or good
7:33trading month. That doesn't mean that
7:35you should automatically connect that to
7:37next week, right? Like for example,
7:38there's this thing that sometimes I get
7:40caught up saying, too, "Oh, I had a
7:41really good month. I can go and be
7:43stupid and put on more size. Or I can be
7:45stupid and take on more more trades. Or
7:46I can be stupid and feel more confident,
7:48right? And the problem with that is as
7:51good as it sounds, we start to now
7:53neglect the future trades based on
7:56historical you know, situation. Now, the
7:57same thing happens in losing trades. If
7:59I have two weeks of losing trades,
8:01immediately it's like, "Oh my god, I
8:02suck. I can't you know, put on any any
8:05size. I can't put on any trades." And
8:07most of the time when that good setup
8:08shows up because of those two weeks of
8:10like overkill, I can't execute on that
8:12A+ setup or on that A+ day. All right.
8:15So,
8:16there's a few things. Uh another
8:17question just before I go into it.
8:19What are your rules for days to not
8:21trade?
8:22Like do you have any rules like, "Hey,
8:24these are days I'm not going to trade."
8:25or
8:27>> Um I don't think I have specific rules
8:29to not trade. It's just it's either I
8:31see that the market is at a at a optimal
8:34level
8:35>> What's What do What does that mean?
8:36>> So, I like to look at premium discount.
8:38All right.
8:39Meaning that if it's a good retracement,
8:41I try to get in. If it's at a premium
8:43and I'm want to buy, then I'm waiting
8:44for retracement.
8:45>> Let's take a step back. What in market
8:47context do you look at to know today's
8:49the day I'm going to trade or not? Or do
8:50you just look at
8:50>> Oh, I look at open high low close of the
8:52day.
8:53>> Okay.
8:53>> If the yesterday's day was very
8:55volatile, that means that most likely
8:57the open high low close of the next
8:59candle would be just as volatile.
9:01>> Got it. Okay. And then out of a good 20
9:03trading days a month,
9:06do you Are you noticing that you have
9:08some some days where you're trading
9:10really bad or your drawdown is more than
9:12usual or you're having periods that it's
9:14just terrible trading? Or not really?
9:16>> A little bit of both.
9:17>> bit of Yeah?
9:18>> Yeah. So, I feel like sometimes my
9:20trading
9:22the
9:22the more I look at when I look at my
9:25I see that that month is negative, the
9:27more I accumulate losses.
9:28>> Why is that?
9:30>> Well, then maybe it's because I'm trying
9:31to trying to get it back.
9:32>> Okay. So, big problem number one is
9:35and and we'll dissect it in a bit is
9:38disconnecting from previous laws,
9:39previous day, previous session, whatever
9:41it is. That's a big thing that we want
9:42to we want to we want to focus on that,
9:43right? Uh second is I think you need to
9:46establish rules on
9:49when you're not going to trade. I think
9:51everyone goes into the market like, oh,
9:52I'm going to trade, I'm going to trade,
9:53I'm going to trade. My big rule is like
9:55out of given 20 trading sessions a
9:57month,
9:58I'm trying to trade less than 10. Like
10:01there's 10 that I want to trade.
10:03There's like six that I can size up and
10:05be aggressive on on a given month. And
10:06you know, obviously there's rare months
10:08where the market's super hot, but then
10:09like consistent months like you're not
10:11going to get 20 trading sessions that
10:13are really active, volume is good,
10:15you're seeing momentum,
10:16market is in balance, whatever the case
10:18is. Like market context is reading for
10:20you to trade that market, right? On a
10:22given month there's like FOMC happening,
10:24there's earnings happening, there's some
10:25event that's happening that the market
10:27is waiting for. So, that comes into one
10:30thing of like what are days and periods
10:32you're not going to trade? Then it goes
10:35into if you're not going to trade some
10:36periods and there's let's say 20 trading
10:37days out of the month, how do you create
10:39a restriction for yourself and say I'm
10:41only allowed to take
10:43put on A+ size on five of those trading
10:46days. So, if you use one of them,
10:48mentally it's like, oh, I have four
10:49left, right? And the way I'm the reason
10:51I'm saying that is because that's going
10:52to help you create a little bit
10:54structure in in the trade you take, a
10:55little bit structure in the format that
10:57you kind of go into. Uh of no trading
11:00days. What is that no trading day? Uh in
11:02terms of disconnecting from trades,
11:04um
11:05there's
11:06>> [sighs]
11:07>> there's there's a few different things
11:09to do in terms of disconnecting, right?
11:11Uh what is your average loss in R or
11:13average gain in R? Do do do you know
11:15roughly? Like is it consistent? Is it a
11:17two? Is it a three? Is it
11:18>> It's it's um for my losses it's like a
11:21one point something.
11:22>> Yeah.
11:22>> One point five maybe.
11:23>> So, so you're not following your stops
11:24on them.
11:25>> No, not always. Like my all my negative
11:28I mean positive. I meant that in in
11:30positive sense. So, it's like if I have
11:32a take profit on a daily high, I'll take
11:34it off at maybe a 1R when I'm normally
11:37aiming for 3R. Well, because I see a
11:38retracement or I think it's not going
11:40any higher and then I get nervous.
11:42>> And then after you go through these
11:43trades that you think something else is
11:44going to happen on like the last 10 15
11:46different trades, what were the
11:47outcomes?
11:48>> Well, sometimes it was accurate.
11:49>> Okay.
11:50>> Right? And then sometimes I see the full
11:52extension I miss out on maybe a 4R
11:54>> you could pick if you could hard pick
11:55one of them either you sell early or you
11:57sell late based on the past 10 trades,
11:59what do you think would have a better
12:00outcome?
12:01>> Honestly, sell late. Just leave it. Just
12:04let it run.
12:05>> So, so what I'm just curious why have
12:07why hasn't that been one of like the big
12:08focus points?
12:09>> Well, because I recently found that out.
12:10Before this interview I did as much deep
12:12reflection as I possibly can to be as
12:14prepared as possible and I see that now
12:16my trading positions, my winners, I
12:18don't let them run.
12:20My losses, I'm constantly adding to
12:22them. Where if I lose one trade, I want
12:24to add to that because I think I still
12:26think this area or this zone is still
12:28valid.
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14:26>> Hi, doing man? Pleasure.
14:28So,
14:29lack of consistency and strategy
14:31switching. I don't think that I have an
14:33issue with the second portion because I
14:36I have a pretty good understanding of
14:37what my strategy is.
14:39>> Is your strategy proven? Does it Does it
14:40work?
14:41>> I've passed phase one and phase two prop
14:44evaluations and I've been funded, so I'm
14:46going to say that I do have a proof of
14:48concept. I had one payout in 2020.
14:50>> trades did you take on that strategy?
14:52>> So, on that strategy, I mean, it's been
14:55I would say hundreds across
14:57most evaluations.
14:59>> Has size been consistent on that
15:00strategy or inconsistent?
15:01>> Size has been pretty consistent on phase
15:04one. As I move on to
15:05>> But let's say we compile all those
15:07trades, right? And we look at
15:08>> Oh, it's inconsistent for sure.
15:10>> Okay. So, so, so,
15:11one one problem right there, and maybe
15:13I'm wrong here, but
15:16when when I look at strategies, I want
15:17to I want to measure it across a
15:19consistent size, right? Because if you
15:21have a strategy that sucks, sucks,
15:22sucks, and then you have one good trade
15:24or two good trades or five good trades
15:25with more size, you're profitable, you
15:27go, "Oh, wow, this is a good strategy."
15:28That's not, to me, a good strategy. You
15:30have to have consistent risk on that.
15:32So, if you take all of those trades,
15:33let's say it's 100 trades, and you say,
15:35"Okay, what if I was to risk 200 in each
15:37one of these, and I still targeted what
15:39I was targeting, would I be profitable
15:40or not?" And if you just do that one
15:42simple thing on on a strategy, most of
15:44the time you'll discover either that's a
15:46terrible strategy and you've been
15:48getting lucky with one or good trades,
15:49or it's such a good strategy that you've
15:51been getting crushed by one or two bad
15:53trades where you oversize and get
15:54crushed.
15:55So, that's the first thing, yeah.
15:57>> That makes a lot of sense, and I I think
15:58it's also a combination of not keeping
16:00consistent size, but also taking B-
16:03minus or C-plus setups instead of the
16:05A-plus setups because
16:06>> How do you identify B- minus and A-plus?
16:08And like, what what do you What's the
16:09difference for you?
16:10>> Uh it's a combination of directional
16:13bias, and then obviously imbalance or
16:15inefficiency, looking for a specific
16:17candle, engulfing candlesticks in
16:19particular. When I'm not looking for all
16:21those things at the same time, those
16:23three things, that's when
16:24>> So, so question, when you see a C-plus C
16:26or B setup,
16:27>> Yeah.
16:28>> how do you approach that differently
16:29than A-plus setup?
16:30>> I I think I approach it from a more
16:34uncertain, but uh how Jeff said, a more
16:37intuitive lens where I'm thinking like
16:39I'm smarter, like, you know, I have
16:42>> Does your Does your size stay
16:43consistent, less, more, same? What
16:44happens?
16:45>> Uh it stays the same.
16:47>> Why?
16:49>> It stays the same because
16:51I like to keep my risk somewhat similar
16:54to to the previous risk.
16:55>> So, if I give you two trades and say,
16:57you have a 90% chance of make getting
16:59this trade right, and you have a 50%
17:01chance of getting this right or 60%,
17:02which one would you go more size in?
17:04>> Obviously, the higher percentage.
17:05>> Yeah, so so you I think on A-plus
17:07setups, that's one thing that needs to
17:08get done. So, just to be clear on that
17:09for everyone else, is when you're in
17:11your developing stages as a trader, you
17:13should keep size consistent, right? Just
17:15to like measure strategy and so on. Once
17:17you get out of your development stage as
17:19a trader, the way you'll make a lot of
17:21money and the only way you'll make a lot
17:22of money is knowing where to size more.
17:24It's like poker, right? You have a good
17:26hand, you go in with more size. You have
17:28a bad hand, you can just stay to stay in
17:29the game and you kind of just, you know,
17:31keep your feet wet. Uh so you have to do
17:33that with your strategies and you have
17:34to know and have a clear identification
17:36as what is a A+ setup. Right? It has to
17:39be consistent where you should be able
17:41to go to someone that's never traded and
17:42able to show them the difference of A+
17:44and B+. And if you can't do that, then
17:45you don't have a A+ or B setup criteria.
17:48>> That makes sense.
17:49>> Yeah.
17:49>> Yeah. And and I think it's it is the
17:50combination of, you know, knowing that
17:53risk is important, but then risking the
17:55same on an A+ setup as I would on a C-
17:58or C+ setup, B- setup, whatever the
18:00case. That's that's definitely what has
18:02been holding me back is just risking the
18:04same amount.
18:04>> so question, why don't you do this for
18:06now? Uh
18:07why don't you take C+ setups out? You
18:09focus just on A+ setups. Like if you
18:11were to focus on just A+ setups, what
18:13what would happen?
18:14>> I'd be way more profitable than I am
18:15now.
18:16>> And the other part of of that would be
18:17what? You'd be trading a lot less,
18:19right?
18:20>> trading a lot less.
18:20>> So the challenge here is
18:22how do you trade less
18:24and do less activity, but still feel
18:26pro- feel feel productive? Cuz what
18:28>> leading into my next question is like
18:29how how do you deal with um uncertainty,
18:32but also impatience after a few losses
18:36to not feel the need to take a C- or B+
18:39setup?
18:40>> Uh so so for me, I mean, what's worked
18:42really well, as I was saying before, is
18:44having a rule of how many days and
18:46trades I take a month. So my thing is
18:48like how do I make the most amount of
18:49money doing the least amount of work?
18:50Like simple. Like I do not want to
18:52personally sit in front of a trading
18:53screen for 8 hours, 9 hours and trade.
18:55Like I I do not want to do that. I would
18:57rather trade for 2 hours, go in with a
18:58lot of size, make my money, call it a
19:00day. I'd rather do that five or six
19:02times out of a month, find those good
19:03setups, and that's it. So I can go into
19:06a trading session, this is what everyone
19:08should be able to do at a certain point,
19:09go into to trading session and say, "If
19:11I find nothing and I sit here for 6
19:13hours, I'm okay on walking away and
19:16putting on no trade."
19:18Simple.
19:19>> Yeah.
19:19>> Like the challenging part about that is
19:21if you sit in front of your computer for
19:23hours, you're like, "Oh, I I did my
19:24pre-market prep. I'm watching the
19:25market. I didn't get paid." I'd rather
19:27not get paid than destroy my capital and
19:30mental capital. Because now what happens
19:31is I take a C+ setup, I lose a little
19:33bit confidence, I get a little hesitant.
19:36If you're trading props, you you start
19:37to go, "Oh my god, I'm going to blow
19:38this account." Now when the A+ setup
19:41comes,
19:42you cannot execute on it.
19:44>> Yeah.
19:44>> You see You see what I'm saying? And for
19:45me, my biggest trades ever, day trade,
19:48swing trade, all came
19:49me being able to be in that position to
19:51take that trade, right? Me having mental
19:54capital, me having mental flexibility.
19:55Like I had a September that was really
19:57bad September, traded bad, and that was
19:59bad trade after bad trade after bad
20:01trade. And then October, we had the big
20:03sell-off,
20:04I wasn't able to capitalize on it cuz I
20:05was mentally depleted.
20:06But now if I was more patient in
20:08September and I said, "I don't have to
20:09trade. I don't have to try to catch the
20:10market.
20:11Uh I don't have to catch the sell. Let
20:13the market come to me." And whenever
20:14that happens, I execute on that. Which
20:16is hard. It's not easy to do. But the
20:18way to do it is, "Hey,
20:20out of a month, I'm only allowed to
20:21trade 6 days." So you go back to your
20:236-month, 7-month of data and you say,
20:25"Out of every trading day, how many days
20:27am I profitable or how many days do I
20:28make money? How many days are my setups,
20:30the things I want the market to show me
20:32for me to be involved?"
20:34>> Right.
20:34>> Right. And that's the quite question
20:35with the strategies. What do you need
20:37the market to show you? What do you want
20:39the market to do for you to be involved
20:41in that market for that day or week?
20:44Right. So for example, if if we go into
20:45FOMC week, Monday, Tuesday, Wednesday, I
20:47do not want to touch the market.
20:49Thursday, I'm I'm I'm I'm interested,
20:51right? Thursday, we might have a play.
20:52>> Right.
20:53>> Depending on if there's job reports, if
20:54there's no job report on Friday, I'll be
20:55involved Thursday. If not, going into
20:57Thursday, I might say, "Well, the market
20:59just had, you know, with the Fed
21:00meeting, we got a rate cut or whatever
21:02the case is." But now Friday, market is
21:04anticipating what happens in the job
21:05report.
21:06Big money's probably going to be on the
21:08sidelines.
21:10I don't think I want to trade here. I
21:11don't want to trade essentially a
21:12balanced market. I want to trade an
21:13imbalanced market. I want to trade when
21:15the market cuz the market has two
21:16things. It sees you're going to trade in
21:18balance or it's going to trade in
21:19imbalance. When it trades in imbalance,
21:20it's going to go higher or lower. I want
21:22to try to identify those days out of a
21:24month and if I can capitalize those A+
21:26days, not even trades, to know when to
21:28sit down at the table, that immediately
21:30will make me massively profitable.
21:33Hi.
21:35>> Those are hard acts to follow.
21:37>> [laughter]
21:38>> So, my question is I'm struggling right
21:41now with like insecurity around my
21:44strategy cuz I do trend lines and
21:46support and resistance. And I'm feeling
21:48kind of like I'm in kindergarten and
21:51there's more to know or
21:53so not necessarily like strategy
21:55switching, but I'm trying to add things
21:58to my strategy that's causing
22:00inconsistency. So,
22:02I had a period of time where I was like
22:05at 80% win rate and then I started
22:07tweaking things.
22:08>> Why did you start tweaking things?
22:10>> Well, I did switch from swing trading to
22:13day trading.
22:14>> Does the strategy still apply, whatever
22:15the strategy is, to day trading?
22:17>> Yes.
22:18>> How do you know yes?
22:21>> That's what we were taught from our
22:22mentor that it
22:24works across
22:25>> Okay, so you're putting your real money,
22:27your capital, your hard hard-earned
22:29money. How did you test it ignoring what
22:31people have said?
22:33>> I trade on prop firms, so I've been
22:35doing it that way.
22:37But I feel like
22:39>> Like if I was to go through your last
22:40100 trades, would you be able to
22:42identify the strategy in a clear concise
22:44way and show me that hey,
22:46market context is there, the setup and
22:48entry criteria is there. If I follow it
22:50on the past 100 trades,
22:52my 80% let's say win rate is there.
22:55>> So, my 80% win rate was there with a
22:58much larger risk on the 4-hour and now
23:00that I've tightened it, I'm just getting
23:03tossed around.
23:04>> So, do you think Do you think win
23:06percentage matters more than
23:08>> No.
23:08>> risk?
23:09>> I don't.
23:10>> So, what matters more?
23:11>> I think risk management.
23:13>> So, let's go to the risk part, right?
23:15Now,
23:16I would rather have a 40% win win
23:18percentage and a three to R,
23:20you know, profit and loss ratio,
23:22>> Mhm.
23:22>> and I would still be profitable than a
23:2480% win rate and that one or two trades
23:27I take blow my account. So, it's just
23:30Let's shift away from the win percentage
23:31cuz that doesn't matter. The thing that
23:34matters is when you are right on a trade
23:36and like the strategy goes through. Not
23:38even when you're right on a trade, but
23:39when the entry criteria aligns with that
23:42setup
23:43and you execute that well, what do you
23:45make on average on that trade, right?
23:47Based on a consistent size. Because
23:49your average P&L,
23:52the problem with that number on
23:53profitable trades is it
23:55it can it can be different based on your
23:57size.
23:58>> Mhm.
23:58>> But now, let's take the last 30 trades.
24:01Once again, keep the size consistent and
24:03say I risk 300 in each one of these.
24:05>> Mhm.
24:06>> Based on that,
24:08what do I make?
24:09And if that's a two or three R or return
24:13on base on your loss, then that risk
24:15part is good. Then we go on to the win
24:18percentage cuz win percentage is
24:20essentially how do you start to cut out
24:21the bad trades.
24:22>> Yeah.
24:23>> Do you need to Like, you know, some
24:24scalpers they'll have, you know, 25% win
24:26percentage or 30% win percentage and
24:28they're just putting on so many
24:29different trades than they need to to be
24:31able to find that one good setup.
24:33>> Yeah.
24:33>> those two things matter, but if you're
24:35now trading less and your risk and
24:38reward have to start making sense to two
24:40or three R, then it's like, okay, out of
24:41the 100 trades, what trades do I take
24:43out? Same thing, what days do I take
24:45out?
24:46>> Mhm.
24:46>> What You know, if I have two
24:47back-to-back trades or three
24:49back-to-back trades, do I Is my risk
24:51consistent? Is my strategy consistent,
24:53right? Does that entry criteria start to
24:55change? Uh like some people have a
24:57opening drive play, right? It only works
24:59the first 30 minutes, but they're
25:00trading an opening drive play like five
25:02times a day.
25:03>> Yeah.
25:03>> Like there's no way you can trade this
25:05particular set of five times a day.
25:07You're at 11:00 a.m. or 1:00 p.m. it
25:09doesn't apply anymore. They're like,
25:11"Oh, no, it works." I'm like, "Yeah,
25:12you're If I take random trades and I tag
25:14them
25:15and some of them work, some of them
25:16don't work, it's going to look good, but
25:18if you actually go through them and you
25:19look at the criteria based on what you
25:21wanted, you'll say, "Oh, this doesn't
25:22make sense." Now, in terms of adding
25:24things to your strategy, I always think
25:26>> [gasps]
25:26>> uh,
25:27like there's process of elimination. So,
25:30do more with less. So, I always look at
25:32how do I reduce, reduce, reduce, reduce
25:34without adding. Now, when I reduce and
25:37then I add one thing, I want to test
25:38that one thing.
25:39Right? I don't want to add four, five
25:40different things and be like, "What's
25:42the thing that's improving or making my
25:43trading worse?" So, you add that one
25:45thing, you try for two, three weeks, and
25:46you're like, "Ah, this wasn't it. Bad."
25:48You add another thing. Cool. Okay, this
25:49thing works. But then also, if you have
25:51a strategy and approach that is working,
25:53why change it? Why try to add things to
25:55it?
25:55>> Yeah, I saw a video that you had
25:58recently where it said
26:00you might not understand the market
26:02properly. So, with the simplicity of
26:05trend lines and support and resistance,
26:07I was like, maybe there's something I
26:09don't know. Maybe I am reading the
26:11charts wrong.
26:13I don't know if that makes sense.
26:14>> Yeah. Yeah, if if you if you can't read
26:15the market, and I have days too, like I
26:17have many days I go, I open my screen,
26:19I'm like, I have no idea what's going to
26:20happen in this session. I cannot read a
26:22single thing.
26:23Just don't trade. You don't have to like
26:25try to
26:27say I know what the market's going to
26:28do. I have I have no idea. I'm an idiot
26:29today. It's okay. I'd rather be an idiot
26:31for the day than lose money.
26:33Like that that's it. I'd rather be an
26:34idiot, lose money, call it a day than,
26:36"Oh, I blew my account." or "I blew my
26:37funded account." or "I lost X amount of
26:39money cuz I
26:40felt like I needed to, you know, do
26:42something." And the idea of insecurity
26:45you need to kill that in the market.
26:47Cuz the market doesn't care if you're
26:48insecure, you're secure, you're
26:49whatever. The market doesn't care.
26:50Market's literally going to take your
26:52money away. If you go in with that
26:53hesitation and unsureness,
26:55it's going to be a big problem. The way
26:57to overcome that,
26:59data, back testing, data, back testing,
27:01building compatibility, right? So, I
27:02always say if your strategy, you
27:03hesitate on your strategy, you're not
27:05comfortable in it. Like for example, if
27:06I tell you to take this trade
27:08based on 100 trades, you have a 50-60%
27:10win ratio of winning this, you're going
27:12to take it every time with a 3R ratio.
27:14You'll take it every time cuz you've
27:15seen it work. You have the ability to
27:17recognize, you have the ability to see
27:18it over and over again. But, if you
27:19don't have that, you don't have that
27:21confidence, you don't have that
27:21practice, every time you see that setup,
27:23you'll kind of step away from it.
27:25>> Yeah, I admit I need to back test more.
27:27>> Yeah.
27:29>> All right. So, uh my name is Robert
27:30Thomas III. Everybody calls me R3. Uh
27:33I've been exposed to the market for the
27:34past 6 years, gambling with the market 5
27:37out of those 6 years, and this last year
27:39I've been fully locked in, focused,
27:41trying to track my data, and all those
27:42different things. So, that's background.
27:43>> Why did it take you 5 years?
27:45>> Uh Uh I started while I was playing
27:48college basketball.
27:49>> Okay.
27:49>> So, focus and attention. I didn't know
27:51how much time it needed as far as the
27:52mental standpoint. And then when I
27:54graduated, I kind of got in the
27:55workforce. And so, that's that's the
27:56only reason it took so long. Uh so,
27:58yeah, the last year. And I think
28:00honestly, one of my biggest challenges
28:03that I'm struggling with today is I let
28:05a lot of outside noise affect my
28:07strategy and affect how I actually
28:09trade.
28:09>> Outside noise as in social media or
28:11>> Outside noise as far as the economy,
28:13what's going on, news that's coming out.
28:15You know the economy is not the market,
28:16right? Yep. Yep. As far as news that
28:18impact the market. Like I think for me,
28:20I let
28:20>> Give me an example of like a news
28:21article.
28:22>> Outside noise as far as like what are
28:23interest rates? Or for example, uh you
28:25know, president may drop some news that
28:27may impact the market.
28:28>> Why why why does that matter?
28:29>> I don't know.
28:30>> I don't know. I just think I over
28:32analyze trying to look at the macros
28:34instead of focusing on the charts.
28:36That's probably one of my biggest
28:37issues. The second thing is I'm in a
28:40trading mentorship and group, and the
28:41trader trades live. And honestly, in the
28:44I don't know if anybody else feels this,
28:45but in the retail space, that actually
28:48it hinders me a lot because I'm seeing
28:50this guy live trading and then I'm on my
28:51charts and I'm like, "Oh, he's in the
28:53trade, bro. Get in the trade." So, like
28:55I'm like abandoning ship at times
28:57because I'm trying to learn while also
28:58trading and it may be successful for
29:00others, but for me, I need to lock in on
29:02making my own kind of decisions. So, I
29:04guess my question is, what is metrics,
29:07what are things that you would look at
29:09from an evaluation standpoint when
29:11you're looking at your current strategy
29:13and understanding if you need to tweak
29:14your strategy or it's more of a
29:17consistency issue.
29:18>> Yeah.
29:19Two things. Uh
29:20once again, the market is not the
29:22economy. It's like I learned that the
29:24really hard way. Lost a lot of money
29:26with that.
29:27News that happened in the market do not
29:30automatically reflect, you know, the
29:32economy vice versa. So, we can have like
29:35a government shutdown. You might think,
29:36"Oh, the market's going to go down."
29:38Let price dictate that. Let price be
29:41reactive to that, right? You you need to
29:43take a step back and look at the macro
29:45element of the market. What are the key
29:47areas where the market participants want
29:49to get involved in? What are the areas
29:51they're holding up?
29:52Let's just say let's go let's dumb it
29:54down to the simplest way. Let's say
29:55support. Hey, we have a massive support
29:57that's the 3-year support level.
29:59A lot of open volume there, a lot of
30:01interest there.
30:02If there's bad market news and we
30:05basically break that level and that's in
30:06conjunction with the news, now we know
30:08that news is what impacted the market.
30:10So, now we can start to think about
30:11that. But now if like
30:13for example, um
30:14let's say the worst thing let's say we
30:16go to war, right? Let's say America goes
30:17to war with someone. Immediately it's
30:18like, "Oh my god, market's going to
30:19crash."
30:21You need signals in the market to tell
30:24you that. Do not make that assumption.
30:27And that was like with me 2 months ago
30:29in September. I was like, "Oh, the
30:29market's going to sell off because of X,
30:31Y, and Z." Market didn't never give me
30:33that read. I had things on my read on
30:35what I wanted the market to do and I had
30:37a thesis on it, but the read never
30:39happened. So, because of that I
30:41overtraded and took on bad trades. So
30:43you need to be able to combine those two
30:44immediately, right? Uh and what was the
30:47question, sorry?
30:48>> What um I have a follow-up question.
30:50Um as far as the strategy, does every
30:52strategy work for every type of market
30:55environment?
30:56>> No, I think um
30:57there's two things. There's strategy and
30:59there's approach, right? So approach is
31:01different than strategy, right? So
31:02approach is like for example, I use
31:04order flow. I look at the market as an
31:05auction, right? That's an approach.
31:07That's not a strategy. That's like how I
31:09read the market and how I understand the
31:10market. How that is something that I can
31:12kind of connect the dots with. Within
31:14that, I have two, three, four, five, six
31:15different strategies. Like I'll have
31:17like an opening drive. If the market's
31:19selling off the past two, three weeks,
31:20I'm not thinking about an opening drive.
31:22Why would the market open have some
31:23strong momentum and continue for the
31:25day, right? So like you need to know
31:27what a
31:28your approach will stay consistent, but
31:30your strategy based on market conditions
31:31will be different. Now there's
31:33strategies I have that are in more
31:35active markets, markets that are moving,
31:36trending. Then there's strategies that I
31:38have that will not work in active
31:40markets or markets that are trending. So
31:41I have to be able to break those two
31:43down, right? And then someone that's
31:46in their developing stages, I wouldn't
31:47try to have too many strategies. I would
31:49narrow down into one or two and take the
31:51least amount of trades that only fit
31:53that strategy. And it's going to take
31:55you longer, right? And it's going to
31:56feel like you're not doing work as I
31:57said before cuz you're not creating
31:59activity. You're like, "Oh, I'm not I
32:00didn't trade for the whole week. What am
32:01I really doing?" That is progress, you
32:04know? Cuz now you as a trader, your job
32:06is to identify opportunity and that
32:08opportunity may come in four days, five
32:09days, and then you react on it. And if
32:11it takes you longer to identify an
32:12opportunity early on, that's okay, but
32:14you're not blowing your account and
32:15you're losing money on it.
32:16>> Yeah.
32:17>> And then the third thing,
32:18I'm not the biggest fan of like
32:21for developing traders that are learning
32:24and figuring their strategy out to watch
32:26people trade live.
32:27>> Okay. Yeah.
32:29>> It's going to make it really hard for
32:31you to follow your thesis, your idea.
32:33Because if you watch me trade live and
32:35I'm like, "Oh, I'm going long." Like,
32:36I'm not right every time.
32:38>> Yeah.
32:38>> But, you cannot develop your own reasons
32:40and thought process. But, now if you go
32:41and you're like, I'm going to go long
32:42because of X, Y, and Z and you're wrong,
32:44you have real hard data on yourself.
32:47>> Yeah.
32:47>> But, if you go long based on what I'm
32:48going long on, you don't have real hard
32:50data on yourself. You don't know, are
32:51you being impulsive? Are you being
32:52reactive? Are you Are you taking the
32:54trade late? Are you scared of losing
32:56money? None of those things play a role
32:57and you're not able to collect real data
32:59on yourself cuz you're replicating what
33:01the person's trying to do. And even if
33:02you make money, let's say I go long, you
33:03go long, you make money.
33:04>> Yeah.
33:04>> make money today, you're not going to
33:05make money next week. You're not going
33:06to make money in two two weeks from now.
33:08You're not building yourself to be in
33:10this game in 10, 20, 30 years.
33:12>> Yeah.
33:12>> Let's take a break for a minute there,
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35:32>> Hi.
35:33>> Hi. I'm Allison.
35:34>> Nice to meet you.
35:34>> Nice to meet you, too. Um so, I'm guilty
35:36of incredible overtrading, sometimes
35:38taking up to 100 trades a day, which is
35:40insane.
35:41>> Absolutely insane, I know.
35:42>> Wow.
35:42>> And I'm aware of that, and I tell myself
35:44every day sitting down at my desk, I
35:46even have a little sticky note saying,
35:47"I will not overtrade." But then, as a
35:49I'm a quite a new
35:50>> Sticky notes don't work, right?
35:52Yeah.
35:52>> all.
35:53So, as like as a new trader, um
35:56maybe I don't know, or how have you
35:57experienced how were you able to
36:00discipline yourself, or what what things
36:02did you find helped?
36:04>> How long you've been trading for?
36:05>> 11 months.
36:06>> 11 months, yeah. How are you doing 100
36:08trades a day?
36:08>> I'm scalping.
36:10>> Oh, you're scalping. Okay. You're
36:11scalping. Okay. Uh
36:14>> I know it's insane.
36:15>> No, I yeah, I mean, I 100 trades are
36:17fine if you're scalping. It's like 5 6
36:19years in and you have a Is your strategy
36:21like does it work? Does it make sense?
36:22>> Sometimes.
36:23>> Sometimes?
36:24>> say 30% of the time.
36:25>> I I I think you right away I think 11
36:27months in that's too much trades and
36:28it's too much noise for you ever collect
36:30real data and understand real trades. I
36:32think you have to naturally cut that
36:34down. If you're If you're also scalping,
36:36what's the time period you're scalping
36:37like is it like the first 2 hours, first
36:38hour?
36:39>> And sometimes I'm there until you know
36:41I'm there for way too long. I sit down
36:42at 6:30 cuz I'm Western time and I leave
36:45it you know after the close because
36:46sometimes things happen after the close,
36:48right? Momentum starts happening. So
36:50>> I
36:50I think some things I would do and I
36:52we have to think a way to create this
36:54you know cuz the same thing now it's not
36:55going to work. Like it's clearly not
36:56working right now, right? So
36:58Um one I think cut off time and when you
37:01stop trading. Second is after every
37:02trade you need to give yourself a 5 10
37:04minute breather. I don't think 11 months
37:06in there's any human possible way for
37:08you to be able to get into a trade
37:10decide what's going to happen next get
37:11into a second trade. You just have 100
37:13random trades.
37:14>> Mhm.
37:14>> And the problem with that is in 11
37:16months the most important thing for you
37:17to do is to collect data on yourself on
37:19your strategy on what's happening.
37:20Because if I go through your data it I'm
37:22probably going to have a nightmare
37:24trying to figure anything out.
37:25>> That's me and even myself have a
37:26nightmare myself.
37:26>> So so so I want to know like oh if you
37:28make money what happens do you increase
37:29size do you decrease size? But if it's
37:30100 different trades that that's too
37:32much noise. So you you you need to get
37:34that number down. I I would probably say
37:36less than 10. Like like significantly at
37:3910.
37:40Uh I would cut off your time as well.
37:41Also as a new trader you shouldn't be
37:43trading at a professional level like I
37:44think professionals 10 12 years are like
37:47picking times. I'm going to trade after
37:48market close I'm going to trade at this
37:49time I'm going to trade at that time. I
37:50think you need one time slot. The first
37:52hour 90 minutes I'm going to trade I'm
37:53going to scalp. I'm not allowed to take
37:55more than let's say 10 trades.
37:57Uh after 11
37:59walk away from your computer. Like walk
38:01away. Turn it off. Do not say it's 11
38:03I'm going to sit here I'm not going to
38:04trade because I've done that and I I can
38:06tell you right now how that's going to
38:07go. You're going to put on another 90
38:08trades, right? So you need to walk off
38:10your computer at 11 let's say.
38:12Um have the hard stop at at the time.
38:14Restrict yourself to 10 trades. I mean
38:17depending on what broker you use some of
38:18them might let you do that, right? They
38:20might let you put a hard stop at 10.
38:21What broker do use?
38:22>> Questrade.
38:23>> Oh, they're not going to I don't think
38:24they'll let you. Yeah.
38:26>> Yeah, they're probably not going to let
38:27you. Yeah, you need to have outside of a
38:29sticky note, something that's hard and
38:31valuable that will allow you to follow
38:33the 10 rule trade.
38:34>> Okay.
38:35>> If you don't, it's just the flip side of
38:37it is you're going to spend 4 years, 5
38:38years, and you're going to be in the
38:39same cycle and you're going to burn
38:40through a lot of money. That's the flip
38:41side of it. And if you're going to
38:42continue this way, I'll tell you now,
38:43just
38:44quit. Just stop. Like you just just take
38:46the money you're going to burn and split
38:48it here with everyone.
38:50Just being honest.
38:50>> No, thank you.
38:51>> Right? Because uh
38:52I see people for 5 years they go down
38:54this bad rabbit hole and then depression
38:56and anxiety and you financial burden and
38:59all these things and ultimately it's
39:00like
39:02it's in your control. And then also if
39:03if Do you have self-control in your in
39:05your personal life or not?
39:06>> Well, not so much. I should have more.
39:08So, it's it's reflected in my trading as
39:10well.
39:10>> so something you can probably do is,
39:11"Hey, I I start doing the hardest
39:13things." Right? So, like something I did
39:15at one point in my career, I hate
39:16running, right? I'm not the person that
39:18likes to wake up in the morning and go
39:19to the gym. So, I started waking up at
39:206:00 and going for a jog. Right? It was
39:2210 minutes, 15 minutes. It wasn't like I
39:23was running a marathon, but just doing
39:25that super hard thing and saying, "I'm
39:26going to do this." And and following it
39:28for 30 days, that will reflect into your
39:30trading. And if you can't follow your
39:32own rules,
39:35I can promise you you're going to blow
39:37through a lot of money.
39:38>> Makes sense, yeah.
39:38>> I would focus a lot on developing
39:40discipline in your personal life, set up
39:42hard things, make yourself follow
39:44through, and then that will slowly bleed
39:46into your trading and self-control and
39:47and so on.
39:48>> Right. Appreciate it. Thank you.
39:49>> Of course. Thank you.
39:54I don't
39:55>> You want to come back?
39:56>> Nice to meet you.
39:57>> So, over trading for me it's more about
40:00accepting the loss. I don't take too
40:02many trades during the day. I have
40:04rules, only
40:06two losses.
40:07And that's it. I do two losses, I'll
40:09stop trading.
40:10But sometimes I trade one to one just
40:13for simplicity
40:15to collect data. But if I do one losing
40:17trade and one winning trade, then I'm on
40:20break even and that's when the
40:22overtrading comes. Even
40:24the setup, it doesn't meet all the
40:26criteria, but I just don't accept end up
40:29the day at break even and then I take
40:31the next trade just because
40:34>> Why don't you accept break even at the
40:35end of the day?
40:37>> Uh
40:37because I feel like I could do one more
40:40trade, maybe go for a green day.
40:42>> Sure. Okay, let's assume that's true.
40:45Historically, based on you doing that,
40:46what's that shown us?
40:47>> it doesn't work out. It never work out,
40:49but I don't accept that.
40:49>> but I know, but why if that's what your
40:51data is already saying it, how do we get
40:53you to logically believe that now? Hey,
40:55I I've tried after break even day, I've
40:58tried to make money or tried to trade,
41:00but I still and
41:01>> It helped me looking at the journal. I
41:04have I trade
41:05>> No, I know, but I'm saying you logically
41:06got to that conclusion that after two
41:08break even trades, you're not making
41:09money. You're you're you start to lose
41:11money afterwards. Yeah. Based on that
41:12data, that is true. So, why are you not
41:15able to get to a point in that, "Hey, if
41:16I hit my two losing days or two losing
41:17trades or break even day, why are you
41:19not able to use that and walk away?"
41:22Your data is telling you that. If I tell
41:24you if you touch this is hot, would you
41:26touch it?
41:27>> Nah. I always struggle with the fact
41:29that what if it's different now? What if
41:32something changed now?
41:33>> And has that changed?
41:34>> No, never. It never It's also about
41:37time. After 11:20, that's it. It never
41:40Out of 10 trades, eight doesn't work.
41:43So, looking at the data
41:44>> So, you see you see the problem with
41:45this is
41:46if you didn't know that, I would say go
41:48find out. You found out, you know it
41:50doesn't work. Now it's implementing it.
41:53Like for me, like I I have four or five
41:54trades a day. I've I've had a period
41:56where I had 10, 15, 20 trades a day and
41:58it would never work. I had a period
42:00where I would have two to three
42:00back-to-back losing trades and I would
42:02lose money. Uh I've I've had countless
42:04different things that have happened in
42:05my trading that I've learned from and
42:07I'm like, "Okay, this is something that
42:08I have enough data and understanding
42:10that no matter what I do, it's not going
42:11to work. So, the thing is how do we get
42:14you to understand and believe that now
42:16that hey, if I have a break even day
42:19based on historical data of mine
42:21usually I over trade. So, I hit break
42:23even, how do I turn my computer off and
42:25walk away?
42:26>> Sometimes I don't know when it's enough
42:28data.
42:29So, I stop. It's It's already telling
42:31me. Sometime I want to believe that I'm
42:34in a bad uh streak.
42:37>> Yeah.
42:38>> So, maybe I have done 10 trades. Eight
42:41of them doesn't work out, but maybe I
42:43need to do 30. So, I keep doing it.
42:45>> Yeah, you you don't need You Your Your
42:47brain's trying to convince you of like
42:49a good reason to keep doing it. But, I
42:51don't think you should do it. You have
42:53the reason to not just stop. So, it's
42:54it's
42:55the thing for everyone to understand is
42:57once something is very clear
42:59>> Mhm.
42:59>> cut it out. And if you want to
43:01reintroduce it, you introduce it in a
43:02nice way. So, for example step number
43:04one, you have two trades, break even for
43:06the day. Historically, I know when I
43:08when I'm break even, I go on tilt. I
43:10mess up. I I have two trades. I'm like,
43:11I need to make the money back. Okay.
43:13Historically, yeah.
43:14After that, I am a different person. How
43:16do I stop that? The way I stop that is
43:18the moment that happens, I walk away.
43:20Now, if I don't walk away, I reduce my
43:23position sizing by 90%. That I still,
43:26you know, if I'm wrong, it's a small
43:27loss. If I'm right, it's a small win for
43:29the day.
43:31Right?
43:31>> the risk.
43:32>> Yeah, reduce massively. Because now you
43:34still get your high of executing cuz
43:36like we like every Yeah, everyone wants
43:38that high. That's what you know, people
43:39care about. You get that high, but if
43:41you're wrong, which you most likely will
43:43be,
43:44it's small.
43:44>> Got it.
43:45>> Those are two things. Those Those are
43:46the only two ways. And then if you work
43:48out with the small risk
43:49>> Mhm.
43:49>> and over 100 trades, those trades start
43:51being good, increase size, increase
43:53size, increase size until you get to a
43:55comfortable point. That's the only like
43:57that is the only way.
43:58>> I think I I would do because I'm new, I
44:00would do all the instead of reducing the
44:03risk, then I will increase it because
44:05it's the last trade of the day because
44:06that's a rule. That's actually a rule.
44:08But, it's the last trade of the day, I
44:09will have to like I want to be happy for
44:12the rest of the day, and then I instead
44:14of
44:15uh reducing the risk, then I will
44:17increase the risk because
44:18>> But, that's bad. That's not going to
44:20make it
44:21And what happens when you do that? You
44:22lose money, right?
44:23>> Uh always. Yeah.
44:23>> So, so then are you happy?
44:25>> No.
44:25>> So, so the the framework there is you
44:27increase risk and you're not happy, but
44:28you're trying to be happy. So, how do we
44:30avoid one and two? Just don't trade.
44:32>> Not it.
44:33>> Or reduce risk massively.
44:34>> This is certain things. The thing is
44:36I sound crazy when I say it. They're so
44:38simple. It's just we don't want to
44:40accept that reality.
44:42>> Simplicity.
44:42>> Like we we just don't want to accept it.
44:44It's like, "Hey, you're not You as a
44:46human, you individually, different than
44:48me and different than everyone here.
44:49After two break even trades, you want to
44:51over trade, you go on tilt. That is your
44:53reality."
44:54Just stop it.
44:56And we we don't want to accept that,
44:57yeah.
44:57>> I see.
44:58>> Thank you, sir. Thank you.
45:03How you doing?
45:03>> Nice to meet you.
45:04>> Nice to meet you, too.
45:04>> I'm Eugene. Uh so, my problem is uh over
45:08trading, but over trading only when I'm
45:11after I lost the trade. So, let's say
45:13I'll be very consistent like I'll be
45:15winning, you know, what just one trade
45:16per day, one trade per day, but as soon
45:18as I lose, I can do like 15 trades after
45:21that.
45:22And so, my question is what is your
45:24thought process when you have a
45:26losing streak?
45:27>> Do you have a hard time taking losses in
45:29everything else, not just trading? You
45:30hate being wrong.
45:31>> Probably, yes. Yeah, I'm very
45:33competitive.
45:33>> Yeah, that's where it comes from, right?
45:35I I I had the same problem, right? In my
45:37early career where even now I I have the
45:39same problem, too, right? Like if I'm if
45:41I'm wrong, I'm like, "There's no way I
45:42was wrong on that." Like that's my first
45:44instant knee-jerk reaction. How was I
45:46wrong on that? What did I miss? Okay,
45:47I'm going to make it back without even
45:49realizing the moment that I'm doing
45:50that, right? So, that comes from that
45:52place of competitiveness and hating to
45:54be wrong. But, but continue. Go ahead.
45:56>> So, so how do you how do you
45:59fight that or what's your the process?
46:00Because what I'm doing is
46:02I'm pretty new to trading futures.
46:04However, I've been trading since 2018,
46:06so and I
46:07>> What were you trading before?
46:08>> Uh
46:09yes, futures, crypto, um
46:12um
46:13um
46:14forex,
46:15but and I watched also so many
46:17educational videos. I mean, I have so
46:19much knowledge, I feel like, and what
46:21happens is after I lose, then I start
46:23going into these rabbit holes, like
46:25maybe this strategy will work or this
46:26strategy, and I'm just then I'm all over
46:28the place, and
46:29That's good to know. Yeah. Second the
46:31part
46:32>> So so two things. More information in
46:33trading doesn't make you a better
46:34trader. Less information will always
46:36make your life easy. So, one common
46:38mistake that people make, and I used to
46:39make this too, is whenever I would trade
46:41bad, I would want to go learn more. I'm
46:43like, what am I missing in my learning?
46:45There's nothing in my learning or
46:47education that I'm missing. It's just
46:48now I am trying to justify the action
46:51and me not being able to read it. Like
46:53even now, there's days where the market
46:54sells off, and I go and I try to read
46:56it, and I'm like, I could not read it.
46:57What am I missing? And sometimes there's
46:59not something I'm actually missing. It's
47:00Some days you cannot read the market.
47:02>> Okay.
47:03>> at times is random, and those are the
47:05days you accept it. So, let's cut out
47:07trying to obtain more information, and
47:09let's reduce noise. That's number one.
47:11The reason reducing noise is important
47:13is because it goes down to if you have a
47:14way of looking at the market, and that's
47:16what we're talking about before, the
47:17strategy, and then there's a way of
47:18looking at the market. You want to trade
47:20on your viewpoint of the market, not my
47:22viewpoint of the market, not someone
47:23else's viewpoint of the market. Like,
47:24you know, we have the ICT stuff and all
47:26these different things.
47:27I can look at a chart, and I can take
47:29everyone's viewpoint, and I can justify
47:31that our stock is going to go up or down
47:33based on everyone's viewpoints. That's
47:34never going to work for me. So, I have
47:36to take a step back and say, what is my
47:37viewpoint? What is the strategy I'm
47:38trying to trade? What is the way I'm
47:39trying to trade? Does it make sense for
47:41this? If it doesn't make sense for this,
47:43I need to let go. Even if it makes sense
47:44for this, this is not something I'm
47:45trading, cuz I'm not going to wake up
47:47tomorrow and trade this way or trade
47:48this strategy or trade trade that. I
47:49don't want to hijack it for a day.
47:51>> But the only way to find out is through
47:53data, right? Like
47:54>> Yeah, yeah, of Of
47:55Yeah, yeah.
47:56Through that data, but it but the data
47:58is only relevant with how good the data
47:59is. Now, if I take 10 strategies and put
48:01it in data and not know what strategy or
48:03method I'm trading,
48:05then that data isn't really going to
48:06tell me much, right? But if I have let's
48:08say let's say I trade order flow. If I
48:09trade order flow and I'm trading based
48:11off absorption or whatever the case is
48:13and I only trade that style, I can now
48:15pull in the valuable insights. But now
48:17the day order flow doesn't work or I
48:20can't have a read on it and I go this is
48:22the day I'm randomly going to hijack the
48:24way this person or that person trades
48:25into that, it's not going to give me any
48:27real good data.
48:29Right? So so so one is eliminating
48:31noise, having a way of trading,
48:33uh sticking to that way of trading and
48:34even if that way of trading doesn't work
48:35and it won't work some days. That's
48:37something like you need to really
48:39understand. It has to be established
48:41like you have to be so good at being
48:43wrong,
48:44right? And the way like something I've
48:45done that helped me is every time I take
48:47a trade and I know what my risk is, I
48:48already go in, I lost 20 grand.
48:51I don't go into a trade like oh I'm
48:52going to make 60 or I'm going to make
48:53600, I'm going to make 6,000. I do not
48:55think that. That's like the worst way
48:57you're going to set yourself up for
48:58failure. You go into a trade and you're
49:00if you're risking 2 grand,
49:01took the trade, I lost 2 grand 2K.
49:03>> Okay.
49:03>> Let the trade play out. You already
49:04accepted the loss, now you're not
49:06attached to the outcome. When you're
49:08attached to the outcome, you start to
49:10now go oh my god if it goes here I'm
49:11going to make this, if it goes here I'm
49:12going to make that. So the moment you
49:13start to get to a point of losing, you
49:15don't want to accept it cuz you don't
49:16accept that outcome.
49:17>> Okay.
49:17>> So that's like for people that have a
49:19hard time taking losses and then in
49:20terms of cutting your trades like me for
49:23me if I have two bad trades like I'll
49:24walk away from the computer. I I don't
49:26care what I miss, I don't care what I'd
49:28rather walk away from my computer and
49:30miss out on the best trade of the day
49:33than over trade 100 different times. And
49:35that's where like following your rules
49:37are more important than catching that
49:38one trade cuz if you look at data for 20
49:40different days and every single 20 days
49:43you sit in front of your computer and
49:44like test this to really confirm with
49:46yourself too so you believe it. Out of
49:48those 20 days, you'll you'll You'll to
49:50realize if you stayed longer in all of
49:52those 20-days, you'll have one or two
49:53days where you make money.
49:54>> Okay.
49:55>> But in the collection of those 20-days,
49:57you're going to be net negative on that.
49:59>> Okay.
50:00>> So when you look at it from that
50:01framework, you're like, no matter what I
50:02do, I'm going to lose money in the long
50:04run, so I'm not going to break my rules
50:06for this one particular day and let my
50:08brain justify anything. And we walk just
50:10walk away. Like legitimately just walk
50:12away from your from your computer.
50:14>> Okay.
50:14>> Don't know where the market's going
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50:46below.
50:47>> All right. So, um I have been trading
50:50full-time since January of this year.
50:52I've realized that uh
50:54all of my problems kind of stem from
50:56impulsivity.
50:57And what's fixed that is meditation.
51:00That helped me a lot. So just
51:02uh stating that.
51:04I have trouble
51:06following uh my trading plan on days
51:08that the market's choppy.
51:10So how do you identify of those 20-days
51:14in the market, those 10-days that you're
51:15not trading?
51:16>> Okay, good question. Now, just to take a
51:19step back, how do you
51:21you said you have a hard time following
51:23your plan when the day's choppy?
51:24>> Right.
51:26>> Do you in your plan, do you anticipate
51:28that day's going to be choppy or no?
51:30>> I don't.
51:30>> So you cannot anticipate days when to
51:32trade and when not to trade, right?
51:34>> Uh sorry, let me correct myself. On days
51:36that the market is trading inside the
51:39highs and lows of the previous day is
51:41how I have seen in the past that the
51:44market's going to be choppy.
51:45>> Okay, so then when you see that
51:48shouldn't shouldn't your rule or game
51:50plan be do not trade today?
51:52Just flip it out.
51:52>> Yeah, yeah, yeah. You're right.
51:54>> So if you're going into that day knowing
51:56the criteria of not to trade, but you're
51:58creating a game plan to take on a trade,
52:01then which side do we stick to? Do we
52:02stick to listening to your game plan or
52:04do we stick to listening to market data?
52:06>> Yeah.
52:07Um
52:08>> Right? So I think the first thing is if
52:10you already have that and you you found
52:11that out of like, "Hey, market trades
52:13between a range. Market can't break out
52:15of this area. There's like news out this
52:17week or market is anticipating something
52:18big. There's a high probability we're
52:20going to be flat."
52:22Your only rule should be to not trade.
52:24>> Right.
52:24>> Right? And that the the rule there
52:25comes, "Do not trade today. I'm watching
52:27the session for data collection. I'm
52:29watching to see what levels the market
52:31reacts off." Maybe that day does trend
52:33up out of nowhere. That's okay. You live
52:35with it. You say, "Hey, out of the 20
52:37days that I thought the market was going
52:38to move, four days it moved. Based on my
52:40data, I saved 16 stupid trading days. I
52:42live with that." Because what happens is
52:45when we create these rules, we'll have
52:46those anomaly days or events that go,
52:48"Oh my god, I I knew I should have done
52:50this. I knew I should have traded that
52:51day. Why did I sit out today?" Okay, but
52:53let's take a step back and look at it
52:54through larger lens. And we look at a
52:57larger larger lens and larger data, it's
52:58like, "Well, it made the most amount of
52:59sense to sit out." Right? So I think
53:01going into those days, if you have a
53:03game plan, you start to mentally already
53:06prep your mind to put on a trade. But if
53:08you go into those days like I have days
53:09where I I'll go in like like I said,
53:11like if it's Tuesday and FOMC's tomorrow
53:13and Tuesday Wednesday market choppy. I'm
53:15like, "I'm not I'm not trading." My my
53:17my game plan is I'm not trading. I'm
53:19going to watch the open, the 30 minutes,
53:22maybe 60 minutes in.
53:24I'm going to observe the market. I'm
53:25going to take my levels and see how the
53:26market reacted to the open, carry it
53:28into my tomorrow's game plan. That's my
53:30job for the day.
53:31>> What if on the open the market trends on
53:33FOMC?
53:35>> I'm I'm personally I'm still not
53:36trading.
53:36>> You're staying
53:37>> I I I I I don't want to trade it because
53:38now
53:39if we go over 20 weeks of the same data.
53:42>> Mhm.
53:43>> If you give me four of them that work
53:45and 16 don't work, I'd rather take the
53:46better the 16 side.
53:48>> yeah, yeah.
53:48>> Right? So, that's where the anomalies
53:50come out cuz you're like, "Oh my god,
53:51last FOMC went up." But you're like,
53:52"Okay, let's go through the past 20
53:53weeks." Why did last week it go up? Oh,
53:56something big happened in the market.
53:57Trump maybe tweeted something. So,
53:58there's like events that'll also happen
54:00that we miss and we just look at the
54:02action. But in in case of a larger
54:04period, the data usually suggests
54:06otherwise. And the idea is to
54:07>> Okay.
54:07>> It's all a probability game. What's the
54:09probability this day there's a
54:10probability it's not going to trend.
54:13I'm not going to play the 20% side.
54:14>> Right. And it's better to take the zero
54:16or break even rather than take the loss.
54:18>> And the mental energy that you have. And
54:20also in days like that, for example,
54:21non-trending days in the market, you
54:23know, news event days, market is harder
54:25to trade. There's newer like sometimes
54:28it does the most random thing. It'll
54:29open, it'll sell off, then it picks back
54:31up and then sells off. You're like, "I
54:32don't know what's going on." But
54:33mentally you're like, "Oh, if I bought
54:34here and I sold there." It's like the
54:35reality of that is like you're guessing
54:37randomly guessing what a lot of your
54:38numbers are going to be.
54:40>> Yeah. And um one follow-up question I
54:42have is say you take on a trade,
54:44um position moves in your favor, do you
54:47add to that trade? And if you do, like
54:49what are your parameters to add to that
54:51trade?
54:52>> If I was the way I look at that is if I
54:53wasn't in this trade now, would I buy
54:54right here?
54:55The most simple way to look at it. Same
54:57thing if I if I'm in a losing trade, if
54:58I wasn't in this trade, would I buy
54:59here? And most of the time the answer is
55:01either no in the losing trade cuz I'm
55:02like, "Oh, I wouldn't There's no way I'm
55:04going to buy this stock or trade that's
55:05falling and selling off." This is where
55:07I would short. But because I have a
55:09short long position, I avoid that. So, I
55:11always look at a position if I want to
55:13add.
55:14If I didn't have anything right now, was
55:15to take a trade, what would that trade
55:17be?
55:17>> Okay.
55:18>> And the way and the way to kind of trick
55:19your brain is if you're already long,
55:21right? And your position in something is
55:23like you're already long your or you're
55:25looking to go long, I like
55:27prompt my brain like you prompt chat
55:29chat GPT. It's like
55:31force yourself to go short and look for
55:32a reason to go short. You must have a
55:34valid reason to go short. And now I try
55:36to come up with that reason. I'm like,
55:38"Oh, actually yeah, this makes sense."
55:39No, this doesn't really make sense. So,
55:40you can kind of wait out cuz in the
55:41moment, your brain does block out the
55:44other side cuz you get confirmation
55:45bias. I'm long. What what points to
55:47long? And if I look at a trade, I can
55:49tell you why you should go long or why
55:50you should go short. That'll make
55:52absolutely no sense afterwards, but in
55:54the moment, it makes the most amount of
55:55sense ever.
55:57I don't know. Nice to meet
56:00>> So, my name is Dave and I I definitely
56:03find that the FOMO and overtrading is
56:05something that I
56:06I've been working on the FOMO. I've been
56:08especially trading futures. Like you see
56:09these big pushes up. You're looking at
56:11NQ. You're like, "Oh my god, why am I
56:12not in that?" You got to breathe. So,
56:14I've been doing okay with that for sure,
56:16but the overtrading I've been scalping a
56:18lot and you know, at the end of the day
56:20half the time you're like, "I made 40
56:21trades to make $200." Like why didn't I
56:24stop when I was up at 1,500? And I just
56:26find that these days it seems like with
56:28the market when it moves so fast, you
56:30just want to be in. You want to be in.
56:31You want to be in. And I trade a lot of
56:33the overnight session.
56:34>> Mhm.
56:34>> And so, for me it's just like you're
56:36watching gold move and you're like, "I
56:37got to get in. I got to get in." Okay,
56:39I'm in. I'm in. I'm in. And then you
56:40make too many trades cuz you're trying
56:41to scalp it. And then all of a sudden
56:42it's like, "Wow, I made I made $300.
56:44That's awesome. I was up three grand,
56:46right?" And so, it's it's I found that
56:48the journey to become a successful
56:50trader has really just been
56:52um [snorts] a lot of trial and error.
56:54I've been like, "Okay, I'm I'm trying to
56:56learn how to do this and try to trade
56:57and do it properly, but when do I need
56:59to step on the gas and when do I need to
57:00back off?"
57:01>> Yeah. Uh how long have you been trading
57:03for?
57:03>> I've been two to three years somewhere
57:04in there.
57:05>> Two to three years is
57:06do you have rules? Once again, I mean
57:09>> I'm the the best. I've got a couple of
57:11rules that I've I've talked to and like
57:13I have a couple of friends that are
57:14therapists and I was like, "Man, you get
57:15in these trades and you're like, hey,
57:17I'm hot. I'm ready to go. I want to be
57:19in there." And they're like, "You need
57:20to cool down period. Like take three
57:21minutes. Like just reset." And even when
57:23you do that
57:24>> you do for your cool down period?
57:25>> Just getting up. Just getting out. Go
57:27and do a little stretch. Just move get
57:29away from the computer.
57:30>> Okay.
57:30Does that help?
57:31>> It does for sure. And but sometimes in
57:33the moment, like when you're clicking
57:34that mouse, you're just like, "Oh man,
57:36I'm I'm up and down. You're flipping
57:37left, right." Like you're just
57:38dopamine's firing, right?
57:39>> yeah.
57:40>> And so I it's I think a lot of people
57:41struggle with that, but it's uh it's
57:43something I've noticed like you want to
57:44be a scalper. I'm like, "Okay, I like I
57:46like the scalping. It's good. It works
57:47for a lot for for me." But then
57:48sometimes at the end of it, you're just
57:49like, "What am I even doing with this?"
57:51>> know that scalping works for you cuz
57:52you're green on on the end of the day?
57:54>> But yeah, I for like there's been a lot
57:56I find that especially with prop firms,
57:58it's it's hard you can be green, you can
57:59be be you be green, green, green, green,
58:02you break one rule, you're like, "Oh, I
58:03I blew two grand in that day. I blew my
58:05account, right?" So, you can I it's
58:07something I've really noticed. You can
58:08be green and be profitable, but the way
58:11that some of the rules are set up, you
58:12really got to pay attention. And I just
58:14sometimes you're not.
58:15>> Have you ever flipped into trying to
58:16trading a lot less instead of being a
58:18scalper and restricting to two or three
58:20trades for that session? Did you try
58:21that?
58:21>> I definitely tried it.
58:22>> did that go?
58:23>> It it goes okay. I find myself just
58:24basically staring at the wall sometimes
58:26and I'm like, "Okay, is
58:27>> Do you have a hard time doing that?
58:28>> Yeah, for sure.
58:29>> But what's your results and like
58:31like is it better than scalping? Like
58:33are you able to say, "Hey, I took three
58:34good trades and I was able to make more
58:36than 200, maybe make 500 or 1,000 or
58:38whatever the case is?" Or no?
58:39>> I don't think I have enough data for
58:41that, honestly. This is one thing that
58:42this has really helped me with is going
58:44through some of my trades and going
58:45like, "I am not tracking this properly.
58:47I am going in and out of trades. I'm
58:49flipping my bias. I'm not tracking it
58:51properly." So, it's something that I've
58:52seen that TradeZella has really helped
58:54me with is be like, "Okay, you are
58:55flipping your bias. Like you're not even
58:57you're not even thinking about this.
58:58Like you should be picking one or two
59:00more trades and just holding through
59:01them." And that's I'm just not doing it.
59:02>> Yeah, I was going to say cuz if you're
59:03scalping and you're flipping your bias
59:04so much, it's very hard to be able to
59:07flip your bias and trade well at the
59:09same time. And then they hits the same
59:12road map of randomness, right? You're
59:13getting a lot of random trades. And it
59:15goes back [snorts] it goes back to the
59:16same thing of data collection of how do
59:18you get good data that is
59:20the best amount of data for you to
59:21actually analyze, hey, am I trading well
59:24or am I throwing 20 darts and thank god
59:27I'm coming out positive on that, right?
59:29The
59:29>> way to do that is restrict your trade
59:31count. That's what I always say, like
59:33process of elimination, eliminate,
59:34eliminate, eliminate. Go to three trades
59:37a day, maybe four trades. Go through all
59:39your 20, 30 scalps that you're taking
59:42and say, "What are the setups that work?
59:43What are the setups that don't work?
59:45What are the setups that I want to do?
59:46And how do I restrict myself that I can
59:48only take three trades?" Like or five
59:51trades, whatever that is. I can only
59:52trade in the first hour, take three or
59:54four trades. They have to be a A+ or a B
59:57setup. What is the A+ setup? What is the
59:59B? Right? What does market context have
1:00:01to do in A+ and what does market context
1:00:03have to do in the B?
1:00:04I don't know what the difference is.
1:00:05Okay, so I am identifying everything is
1:00:07a A. Once you have that data, then you
1:00:10start to break it down and you look at
1:00:11the pattern and you're like, "Well, not
1:00:12everything is a A+ setup." And that's
1:00:14where you start to have real information
1:00:16and data on yourself, what happened in
1:00:17the market,
1:00:18what happened in the open, what was the
1:00:19week like, was there any economic
1:00:21events? And you start to track those
1:00:22things over course of 60 days, let's
1:00:24say.
1:00:25And then that gives you enough clarity
1:00:26on your edge, enough clarity on things
1:00:28that work, enough clarity on, you know,
1:00:30the way to trade. And I've noticed with
1:00:31people what happens is that that have
1:00:33taken 20 trades or 30 trades or were
1:00:35scalping,
1:00:36when they reduce their position sizing,
1:00:38they traded so much better. That's like
1:00:40what happened with me, like if you look
1:00:41at my data from like 2019 or 2018, I
1:00:44would have like 20 or 30 trades. Now I
1:00:45have like two to five trades. And my
1:00:47thing is when I go in I'm like, "Okay, I
1:00:49want to find one good trade or two good
1:00:51trades. What's my bias for the day?
1:00:53Let's say I'm looking to go long." Very
1:00:55few times am I going to go long, catch a
1:00:57short, go long, catch a short. Like
1:00:59that's not what I'm looking to do. If I
1:01:00can find that one side,
1:01:02I can go in with size,
1:01:03like even if you take all your trades,
1:01:05your 30 trades of the day, you find that
1:01:06one good trade and you go in that trade
1:01:08with more size, let's say. You'll make
1:01:11way more money than those 30 30 trades
1:01:12up and down.
1:01:13>> Yeah, yeah. I noticed for sure that
1:01:15especially just reviewing the data and
1:01:16listening to some actual professionals
1:01:18and saying, "Okay, is this trade if this
1:01:21is a scalp, I need to size down. Like I
1:01:23can't be going into GC contracts for,
1:01:25you know, looking for a couple of
1:01:26points. Like you blow yourself out $800
1:01:28in 10 seconds. Yeah. Like so it's like
1:01:30is this a scalp trade? Like you just
1:01:31have to have that one conversation with
1:01:33yourself.
1:01:33>> also break that down. I think for now
1:01:34let's stick to one side. I would stick
1:01:36to the wider day trades. Also scalp
1:01:38trading, if you're not at that point of
1:01:41outside of being a develop developed
1:01:42trader,
1:01:43your your your your emotions are going
1:01:45to be all over the place. Your biases
1:01:46going to flip and that's not going to
1:01:47give you the right data to analyze into
1:01:50how you're processing. And then it's
1:01:52easier to go from like day trading to
1:01:53scalping than like scalping and trying
1:01:55to be profitable in my opinion.
1:01:56>> Mhm.
1:01:57>> It's all good. Thank you, man.
1:02:03>> Hey Mark.
1:02:04>> Hey, how you doing?
1:02:05>> All right. I'm good. How are you?
1:02:06>> I have a huge issue in cutting my
1:02:09winners early. Um even though my studies
1:02:12and my data says
1:02:14I should be holding on to a trade. I see
1:02:16that red candle and I take my profit and
1:02:20I run.
1:02:21Sometimes it's a good thing, but I do
1:02:24see that the trend is continuing to
1:02:27where my study shows and I'm just not
1:02:30able to
1:02:30>> doing two things. So you said sometimes
1:02:31it's a good thing and I just want to
1:02:33focus on that for everyone is sometimes
1:02:34everything will be a good thing. Right?
1:02:36So I I I think we don't want to flaw our
1:02:38perception of real data by the sometimes
1:02:40anomalies. But now if I look at that
1:02:42over a course of larger amount of data,
1:02:44is that a good thing or a bad thing?
1:02:46>> Uh my data still shows it's a decent
1:02:49thing, but I'm not still able to hold on
1:02:50to it. I usually will come back and test
1:02:52the previous support level and then
1:02:55bounce, but I'm not
1:02:56capable enough to hold on and come back
1:02:59and
1:02:59hold to my test level. I'm just like I'm
1:03:01already in the money. Then I come I
1:03:03okay, cut it short, have it come back,
1:03:05but it doesn't come back all the way and
1:03:06then it goes and just my risk to reward
1:03:08just doesn't make sense for me to enter.
1:03:10Okay. I have a huge issue in just
1:03:12holding on to my trades.
1:03:13>> Okay, have you tried scaling out?
1:03:17>> I have, but every single time I see a
1:03:19red candle going against me or on a long
1:03:21position.
1:03:21>> you change your chart colors from red to
1:03:23something else?
1:03:26>> Mhm.
1:03:27I mean in the other show I would look at
1:03:28it as I look at I'm already in the
1:03:30money.
1:03:30>> Why are you looking at your P&L?
1:03:32>> Bad habit.
1:03:33>> So don't trade your P&L, change your
1:03:34candle colors, and trade price, right?
1:03:38And and the way to the way to always
1:03:40reassess it is would I take a trade
1:03:42here?
1:03:43Would I hold a trade here? And then
1:03:45another thing to do, I see you have a
1:03:46lot of notes, which is good. When you
1:03:47trade live, write it down. Write down
1:03:48your thought process. Right? Write down
1:03:50say it out loud because
1:03:52when you're trading and you're in your
1:03:53head, your head will play so many
1:03:55different thoughts, and you will not be
1:03:56able to think clearly. So what I do
1:03:58sometimes, like I'll talk out loud or
1:04:00I'll write things down, and I'll start
1:04:01to see afterwards that oh my
1:04:04thought process and my actual trading
1:04:05were completely disconnected, right?
1:04:08Then what I was actually thinking what I
1:04:09actually wanted to do. So it's just
1:04:11sometimes it's keeping yourself
1:04:12accountable, writing it or typing it
1:04:13out, or even just turning on Zoom and
1:04:15talking out loud to yourself and saying,
1:04:16"Oh,
1:04:17the market seems like it's going to go
1:04:18higher because of this." Like and you
1:04:20you you look at it from a subjective
1:04:21point of view, right? You don't look at
1:04:22your P&L cuz if you have your P&L open
1:04:24and you see you're 500 and then you're
1:04:26480, you start to panic. You start to
1:04:28like go all over the place.
1:04:30Um
1:04:30so don't look at your P&L, change your
1:04:32candle colors, and then before you go
1:04:33into a trade, start accepting the loss
1:04:36before you take it. So if you're going
1:04:37into a trade and you're risking 200
1:04:38bucks, I lost 200. The outcome, if it's
1:04:40anything outside of me losing 200,
1:04:42that's great.
1:04:43>> Okay.
1:04:43>> If you feel a little hesitation when it
1:04:45gets to a certain level,
1:04:47start by selling half. Just sell half.
1:04:49Like or sell a portion of that position.
1:04:51If you have two contracts or 10 or
1:04:53whatever the size is,
1:04:55cut off half, sell it at that point, and
1:04:56then let the other half ride out and see
1:04:58how you adjust it. Cuz once your
1:04:59position size goes down, it's also going
1:05:01to make things easier, and then let go
1:05:03of the idea that you have to maximize
1:05:05your position. So if you get into a
1:05:07position and
1:05:08you're risking 200 and you're aiming to
1:05:10make 500, and at one point you're up
1:05:11500,
1:05:13but you walk away on that trade at 420.
1:05:16That was the $80 you were risking that
1:05:18you lost to potentially make more.
1:05:20That's the trade, that's the risk you
1:05:22want to take. So, if you lost that money
1:05:24and you didn't maximize it, it's okay
1:05:26sometimes because you were also taking
1:05:28on that risk of
1:05:30of of of hoping to make more. So, you
1:05:32have to be able to walk yourself through
1:05:34these thought processes and make sense
1:05:36of it. The problem is in real time it's
1:05:37hard to make sense of it. So, write
1:05:39things down, tell yourself, "Hey, if I
1:05:41get to my target or the trade starts
1:05:43moving my favor, take half off, change
1:05:46the colors of candles." That helps so
1:05:47many people. Like, make it white and
1:05:48black. Right? So, you don't see the red
1:05:51and you panic, "Oh my god, it's going to
1:05:52sell off." Uh you trade 1 minute or 5 or
1:05:54what what time?
1:05:55>> 2 minute usually.
1:05:56>> Yeah, that's also why you're trading on
1:05:57a very small You can look at the 2
1:05:59minute, but then look at a larger time
1:06:00frame, too. Like, look at a 5 or a 15
1:06:02and look at the direction of the market
1:06:04and look at what's going on cuz the 2
1:06:05minute or the 1 minute it's also going
1:06:07to freak you out.
1:06:08>> coming in.
1:06:08>> Cuz even when I look at the 1 minute
1:06:09sometimes I'm like, "Oh I don't
1:06:11know." And then I look at the 5 and I'm
1:06:12like, "Never mind." Right? It's a lot of
1:06:14noise.
1:06:15>> Do you add on to your winners? Usually
1:06:16what I tend to do is let's just say I
1:06:17want to go from one point to another and
1:06:19it's going in my favor, I add on.
1:06:21>> So,
1:06:22not always. So, so, so it's the concept
1:06:24isn't if I add on to my winners that
1:06:25it's all trade by trade basis, right? If
1:06:28I go into a trade with heavy size early
1:06:30on, I'm most likely not adding.
1:06:32If I go into a trade with less than
1:06:34usual size and the trade becomes more
1:06:36favorable for that particular trade and
1:06:38it looks good, now that new add on is a
1:06:41separate trade. Mentally, I break them
1:06:43down as separate trades.
1:06:45Because if I
1:06:46look at it as adding on, I'm like,
1:06:48"Well, would I take the trade at this
1:06:50level?" And I'm like, "Nah, I think it's
1:06:51way too extended. I wouldn't take it at
1:06:53this level. Why would I add on to it?"
1:06:54>> Do I Do I Are your targets the same or
1:06:56you targeting different levels?
1:06:57>> It depends on the once again on the
1:06:58trade. If the trade is is let's say cuz
1:07:00there are certain periods where you get
1:07:02into a trade, it works out super well,
1:07:04it starts moving, market gets active,
1:07:05volume starts to surge in. At that point
1:07:07you're like, "Okay, well, this is a good
1:07:09trade. I'll get in." And then my level,
1:07:11depending on that level or depending on
1:07:13that trade,
1:07:14I'll keep that same level as a point of
1:07:16how will I react when we get there.
1:07:19Okay. So,
1:07:20a lot of trading isn't like, "Oh, when
1:07:21we get to this level, I'm going to
1:07:22sell." The idea is when we get close to
1:07:24this level,
1:07:26does price continue moving up? Does
1:07:28price slow down? Does volume keep coming
1:07:30in? Does volume die down? Do we see a
1:07:33lot of sellers come in? What starts to
1:07:35happen? Maybe that may happen a little
1:07:37bit before my level. And I'm like, "I
1:07:39don't want to carry on the risk. I'll
1:07:40get out." And that's something that's
1:07:41okay. You live with that. You're not
1:07:43going to catch the highs and lows of
1:07:44every trade.
1:07:45>> Correct.
1:07:45>> Yeah.
1:07:45>> Correct.
1:07:46>> Yeah, cool.
1:07:46>> Thank you.
1:07:49So, an issue of mine is maximizing
1:07:51profits, right? And letting and letting
1:07:53winners run, actually, right? And I feel
1:07:56like at times when I'm looking at the
1:07:58market, I have a specific point of
1:08:00entry.
1:08:02And
1:08:02>> Okay, so so question, why are you
1:08:03jumping to focusing on maximizing
1:08:05profits?
1:08:06You had a issue before. What was the
1:08:08What was the previous issue?
1:08:09>> Uh the impulsive trading sometimes.
1:08:10>> Yeah, so
1:08:12So, you can't work on those two things
1:08:13at the same time.
1:08:14>> Okay.
1:08:15>> Right? So,
1:08:18the the idea here is to have a theme.
1:08:20And I'll get to the question, but I I
1:08:21think just take a step back. The idea is
1:08:22to have a theme of what's the first
1:08:24problem. You need to solve that first
1:08:25problem and then build and fix the
1:08:27second problem. It's like building a
1:08:28building, right? You can't work on the
1:08:30seventh floor without having the base.
1:08:31>> Yeah, yeah.
1:08:32>> So, how do you solve this issue? Focus
1:08:34all your energy and time on this. Once
1:08:36that issue is done, then you go, "Okay,
1:08:38what is my second issue? What is the
1:08:39second problem I have to do?" Now, if
1:08:41you go into this trying to solve six or
1:08:42seven different issues in one time,
1:08:43you're going to struggle. You're not
1:08:44going to have one thing to think about.
1:08:46Right? So, let's fix the first thing,
1:08:48and when it's fixed, you need 30 to 60
1:08:50days, give or take, of following the
1:08:51rules, following everything, and then
1:08:52you go, "Okay, I'm doing this part well.
1:08:54I need to maximize my profits. I need to
1:08:56cut out my losses.
1:08:57>> Yeah.
1:08:58>> My data shows me a mess up. My data
1:08:59shows me that I should hold my trades
1:09:00longer or shorter, whatever the case is.
1:09:03Let's focus on this. This is the second
1:09:05problem now. So, it needs to it needs to
1:09:06work in that order.
1:09:07>> Yeah, yeah. And I I completely
1:09:09understand. Um
1:09:11but there are times where let's just say
1:09:13I take a regular trade and I want to
1:09:14hold it to take profit because that's
1:09:16the goal, you know, without touching it,
1:09:18without doing anything extra. I just
1:09:20want to let it run. But it gets so close
1:09:22to take profit and it just reverses. And
1:09:24I either break even or I lose the trade
1:09:27because I don't do nothing to it because
1:09:28I'm trying to now be objective. And
1:09:31there are times where
1:09:33I do take a trade and just like the
1:09:36previous person, I see a little bit of a
1:09:38retracement, a red candle, and I get out
1:09:40immediately and it continues to go to
1:09:42take profit.
1:09:42>> Yeah.
1:09:43>> So, my issue is how can I go about
1:09:45staying objective during this process
1:09:48and instead of being subjective about,
1:09:50"Oh, this is money going up, this money
1:09:51going down." Just focus overall on price
1:09:54action.
1:09:54>> Yeah.
1:09:55Uh there's very few times that I've
1:09:58sold a trade at my take profit.
1:10:01>> Okay.
1:10:01>> Right? I I think
1:10:04take profit is a good goal to post.
1:10:06>> Okay.
1:10:06>> But what you don't want to get caught up
1:10:07into is like, "This is my take profit
1:10:09and I have to sell at my take profit."
1:10:11>> Yeah.
1:10:12>> So, it's like
1:10:13it's like if if I take a ball and I
1:10:15bounce it on this table, I can make an
1:10:17assumption that's going to go this high,
1:10:18right? But if I bounce it and then when
1:10:20it hits this, it starts slowing down
1:10:22here,
1:10:23it probably makes sense for me to just
1:10:24take my money and walk away cuz that
1:10:25difference of profit at that point to
1:10:27the loss is too wide. The R at that
1:10:30point doesn't make sense.
1:10:31>> Okay, I understand.
1:10:31>> But it has to when the ball bounces and
1:10:33it gets there, that has to be justified
1:10:35that, "Okay, this looks like it's going
1:10:37to go down now." And I live with the
1:10:38trade. But now if I bounce it and it
1:10:40goes up super strong, I have no reason
1:10:41to sell my trade.
1:10:42>> Yeah.
1:10:43>> So, a lot of trading with taking profits
1:10:45and whatnot is reading what is
1:10:46happening. Like if you just take a trade
1:10:48and you like walk away and you don't
1:10:49look at it,
1:10:51it doesn't really make sense to me,
1:10:52right? If you're swing trading, sure,
1:10:54fine, still difficult. But outside of
1:10:56swing trading, you you you need to
1:10:58analyze that trade going in that
1:10:59direction and what starts to happen. And
1:11:01if you just aim for that level, there's
1:11:03going to be times it comes right here
1:11:04and then goes right back down.
1:11:06>> a lot.
1:11:06>> And it doesn't make it that that risk
1:11:07reward because you're still risking
1:11:09essentially that
1:11:10>> point
1:11:11>> point or points or whatever it is for
1:11:13that small gain. And a lot of times for
1:11:15me I'm like I don't care about two
1:11:16points. I'm already up 20 on this.
1:11:18>> Yeah.
1:11:18>> Let me take the 20 the guaranteed right
1:11:20now
1:11:21than for risking these 20
1:11:23and and you know, if you look at data
1:11:25and like say, "Oh, well, you know, you
1:11:26should have held held it." But I'd
1:11:27rather take the profit for a few points
1:11:28and call it a day.
1:11:29>> Okay.
1:11:30>> Yeah.
1:11:30>> And
1:11:31would you still consider that to be an
1:11:33objective process though? Because I feel
1:11:35like at times
1:11:37it's so close to take profit. I see
1:11:38money and I'm like ready to take it.
1:11:41>> Yeah, I don't I don't I I think when you
1:11:42cuz your your risk reward changes,
1:11:44right? Because
1:11:45if you don't sell at that point and you
1:11:48take the $1,000,
1:11:50what happens if you're up only 800 now
1:11:52and 600? Now you are either going to let
1:11:54it hit break even.
1:11:55>> Mhm.
1:11:55>> And if you let it hit break even, you're
1:11:56like risking 800 bucks to make 200.
1:12:00>> Mhm. Yeah, you're 100%
1:12:01>> of times
1:12:03doesn't make sense.
1:12:04>> It does not.
1:12:05>> yeah, yeah.
1:12:06>> Honestly, great response. Appreciate it.
1:12:08>> Appreciate it. Yeah.
1:12:10Hi, how are you?
1:12:10>> Great, wonderful.
1:12:13My name is Sony. I think I'm in a very
1:12:15interesting space. Like everything like
1:12:17I've been hearing uh folks like
1:12:20discussing their struggles, I've been
1:12:22there. I'm probably still there.
1:12:24Um
1:12:25like the sunk cost, right? Like that's
1:12:27like I have moved on. I've blown up my
1:12:29account three times.
1:12:31>> Okay.
1:12:32>> And then I always came back not to
1:12:34recover. I told myself it's a sunk cost,
1:12:37it's gone.
1:12:38I think I'm learning a skill.
1:12:41I need to work on this. That's why I
1:12:43came back.
1:12:44And I've struggled with stop loss and uh
1:12:48working on that, getting there.
1:12:50So, I think I'm in this in between space
1:12:53where in my trading journey, I've seen
1:12:57myself being profitable. I have
1:12:59discovered my edge, and I think I'm
1:13:03there.
1:13:04But, when do I say I have arrived? Do I
1:13:07ever say that?
1:13:09>> Oh, so it's like a recovering alcoholic
1:13:10then never arrives.
1:13:11>> No. Never. Yeah, yeah. I I think don't
1:13:14don't So so so I try to chase that I've
1:13:16arrived for like 7 years, 8 years, and I
1:13:18never like even now I'm like
1:13:21Like I'll have a bad month or week and
1:13:22I'm like, "Oh, I suck. Like I have
1:13:24no idea what I'm doing." It's It's
1:13:25natural, right? Because the markets are
1:13:28always evolving. You Your Your internal
1:13:30struggles and issues never go away. You
1:13:33get better at dealing with them. So,
1:13:34when they do come back it's like how do
1:13:36you now deal with them when they come
1:13:37back in that moment. So, it's like you
1:13:39never essentially arrive. Like for me,
1:13:40I'll give you some context.
1:13:41>> Yep.
1:13:42>> For 6, 7 years, every time I would have
1:13:44like a trading year would end,
1:13:46I would say, "Shit. Can I do it again?
1:13:48Can I make money again? Oh, I don't know
1:13:50when is it going to stop? When When am I
1:13:51going to have like like a year where I
1:13:53blow it all?" Like just back of my brain
1:13:55like that was the the thought process.
1:13:56Now, over time it's gotten way better,
1:13:58but that's also not a bad way to look at
1:14:01it. Cuz you also don't want to get to a
1:14:02point of I've arrived and then market
1:14:04boom takes it all away from you. If you
1:14:06If you come up on on your tippy toes,
1:14:08you're like, "Okay, well, I understand I
1:14:09have to be on my tippy toes for this
1:14:10game." And just because I made money
1:14:13yesterday or last week or last month or
1:14:14last year does not mean the market is
1:14:17going to give me money again. I have to
1:14:19earn it. So, you you're essentially
1:14:20never arrive.
1:14:21>> Yeah, so uh
1:14:23I think it's like slightly different. I
1:14:25I don't know much about the men women
1:14:27psychology, all that stuff.
1:14:29I feel like I do a lot more based on my
1:14:33instinct. Like when I read the tape and
1:14:35uh
1:14:36chart, like something just tells me
1:14:38inside like and and I I have gone back
1:14:40and looked at the stats because every
1:14:42man asked me like, "What are the stats?"
1:14:44Like, "Okay."
1:14:45Uh anyhow,
1:14:48how much data do I need to look at to
1:14:50like figure out that metric? Like I've
1:14:52been tracking for 4 months now. Uh it's
1:14:56like I say
1:14:56>> 4 months?
1:14:57>> Only in the last 4-5 weeks and I have
1:14:59tweaked and I feel like
1:15:01I shouldn't say I feel like it is
1:15:03actually working for me.
1:15:04>> Yeah, so 4-5 weeks is is not enough for
1:15:07you to feel that.
1:15:08>> Okay.
1:15:09Well, thanks for telling me
1:15:10>> I just Yeah, so
1:15:12everyone goes through this cycle and
1:15:14this is and very interesting cycle to be
1:15:16in where you track, you do everything
1:15:18right and then you hit this high of
1:15:19like, "Okay, I got it." 4 weeks. And the
1:15:21first thing that people hit is like, "Do
1:15:23I increase my size? Do I get more
1:15:24aggressive? How do I start making more
1:15:25money now?"
1:15:274 weeks is not enough.
1:15:28>> Sure.
1:15:29>> Right? Like my question to you now is
1:15:31like,
1:15:32"How do you respond when you have a
1:15:33losing week? How do you respond in the
1:15:35coming months when you have a losing
1:15:36month?" Right? How do you respond to a
1:15:38whole quarter? So, I would give it
1:15:39another 6 months at least for you to
1:15:42build groundwork cuz there are certain
1:15:43things every trader has to go through.
1:15:45Like you have to go through a bad losing
1:15:47streak after you made it. So, like now
1:15:49it's like 4 weeks you're profitable,
1:15:50cool. Now, what happens in 2 months when
1:15:51you give that money back or if you give
1:15:53that money back?
1:15:54>> Yeah, so for me the success criteria is
1:15:56not just the green.
1:15:58>> Sure.
1:15:58>> For me, like my biggest setback was Oh,
1:16:02I want to say it was
1:16:03like applying a stop loss.
1:16:05>> Sure.
1:16:05>> Now, I'm able to do that.
1:16:07>> Sure.
1:16:07>> So, I uh account for that as well in my
1:16:11success. Like so, like to say like, "Oh,
1:16:13I'm a profitable trader." Trader
1:16:15>> Yeah.
1:16:16>> accepting that 4 weeks is not enough,
1:16:18obviously. But I see that as a big win.
1:16:21Personally.
1:16:22>> What What What are three things really
1:16:24quickly that you're struggling with
1:16:25right now as a trader?
1:16:27>> Uh discipline. Uh sometimes I slip up.
1:16:30Like I clearly know this is outside of
1:16:32my niche. Like
1:16:33>> Sure.
1:16:34>> I'm short biased penny stocks. So, uh
1:16:37uh
1:16:37>> What else?
1:16:40>> That is it. I'm like really like
1:16:42sticking to like
1:16:43>> Okay, so so so so if that's it for 4
1:16:45weeks
1:16:47I mean if we were to talk again in 6
1:16:49months, you should be profitable.
1:16:50>> Yeah.
1:16:51>> Okay?
1:16:51>> I should be.
1:16:51>> Now the challenge there is how do you
1:16:53keep this pace in 6 months?
1:16:54>> Yeah, that's like I'm actually worried.
1:16:56Like I wonder if I'm like struggling
1:16:58with an impostor syndrome. Like like
1:17:01just like can I really call myself a
1:17:03trader just
1:17:04>> No, not yet. No, not yet. Okay. I'll
1:17:06tell you not yet.
1:17:07>> [laughter]
1:17:07>> Yeah, I I I think you need to have 6
1:17:10months to 9 months of consistent, you
1:17:11know, trades.
1:17:12>> Okay.
1:17:13>> Uh because there's diff- different
1:17:14challenges. One is like you did it for 1
1:17:15month, good job. That's phenomenal,
1:17:17right?
1:17:17>> Yeah.
1:17:18>> But are you able to continuously keep
1:17:20doing it and you're going to have
1:17:21hurdles in your trading journey and the
1:17:23question isn't the idea isn't always
1:17:24like money, right? It's not
1:17:25profitability, but it's like when you
1:17:28mess up and you cannot adjust to the
1:17:30market cuz market's going to change in
1:17:31the next 6 months many times over,
1:17:33are you able to adjust to that? Are you
1:17:35able to adapt to the market? And when
1:17:36you don't for a week or two, do you lose
1:17:38your and like start taking stupid
1:17:40trades and blow your account or are you
1:17:41able to take a step back, analyze,
1:17:43reassess, and take it from there?
1:17:44Uh so so that's where like a larger time
1:17:46period matters. And then if you're able
1:17:47to get through that, then the bigger
1:17:49question is how do you start to adjust
1:17:51risk? When does risk start to be be
1:17:52become dynamic cuz that's where you'll
1:17:54make money. You won't make money by just
1:17:55magically increasing risk. You have to
1:17:57know a plus setup, good marketing
1:17:58criteria once once a month maybe
1:18:01increase risk this day. Go heavy. And
1:18:03and those things and those things are
1:18:05going to take 6 to 9 months and you have
1:18:06to just you're in a good place where
1:18:09you can slow things down and just say,
1:18:11"Well, you know, I'm in a good place.
1:18:12Give it till like March. Give it till,
1:18:14you know, June. Play it quarter by
1:18:15quarter. Look at my problems and you
1:18:17know, identify them." There just do not
1:18:19get ahead of yourself right now.
1:18:20>> Oh, no. No, no. I don't think so. I'm
1:18:21not into like next year.
1:18:24>> Thank you.
1:18:24>> Yeah, thank you.
1:18:29>> Back again.
1:18:30>> How you doing?
1:18:31>> Doing good. Doing good. So, I'll say
1:18:33over the course of 3 years
1:18:36taking losses and dealing with them the
1:18:40right way
1:18:41uh has been
1:18:44a challenge in a for me because getting
1:18:47to the point where I can take two to
1:18:49three losses and walk away maybe for the
1:18:52week
1:18:53I noticed that
1:18:54as I look back on my data, I'm trading
1:18:57every day throughout the week and I know
1:19:00that can be a a big hindrance on my
1:19:02performance because obviously we spoke
1:19:04about
1:19:05you know, deciding what days you're not
1:19:07going to trade or you know, what days
1:19:09you are going to trade.
1:19:09>> Yeah.
1:19:10>> [clears throat]
1:19:10>> Taking losses but then coming back the
1:19:12next day
1:19:14and then taking a few more trades
1:19:17I would say three to five trades per day
1:19:20or trade ideas per day.
1:19:22Sorry, per week is where I'm at but then
1:19:25I find myself taking the same setup
1:19:27because I'm thinking in my mind, okay,
1:19:29maybe that my timing was just wrong the
1:19:31time horizon. I'm trading Asia um late
1:19:34Asia and pre-London into London. I'm
1:19:36like, okay, like it didn't play out in
1:19:38Asia. Let me go ahead and take it during
1:19:40London when I just lost in Asia. So, uh
1:19:43how did how did you mitigate you taking
1:19:47the same setup and disqualifying it
1:19:50when you have more data after you've
1:19:52just lost it to maybe say, okay, like
1:19:55I believe that this is going to go in my
1:19:56direction.
1:19:57>> I mean it goes back to the same thing
1:19:58again of understanding like was this
1:20:01setup an actual good setup? Does the
1:20:03criteria make sense? Does the market
1:20:04context make sense or you're just making
1:20:05it up? A lot of things that we do as
1:20:06traders we make up as we go, right?
1:20:09There's like this book it's called
1:20:10thinking in bets which is a really good
1:20:11book and I recommend everyone to read
1:20:12it.
1:20:13It makes you think that just because the
1:20:15outcome is good doesn't mean it was a
1:20:17good choice.
1:20:18Right? Just because the outcome of a
1:20:19trade was good doesn't mean it was a
1:20:20good setup. Doesn't mean that the setup
1:20:22criteria made sense. So, the same thing
1:20:24happens here where in the moment you see
1:20:27quote unquote the same setup but then
1:20:28market context is different. And market
1:20:30context is
1:20:31is key here, right? The same movement in
1:20:33a in a in a in a stock, let's just say
1:20:34we dumb it down to patterns. Let's say a
1:20:36double top, for example. A double top is
1:20:38not a double top in every single trading
1:20:40session and every single market
1:20:42session at all, right? It's different
1:20:43based on the market context. So, that
1:20:45setup that you may have that works that
1:20:48works really good under some market
1:20:49context and doesn't in others and you're
1:20:51maybe having a hard time identifying
1:20:53that. Now, if you're like, "No, I don't
1:20:54have a hard time identifying that."
1:20:55Then, my my flip question to that is,
1:20:57"What is your win percentage? Would you
1:20:59size up more on it? What is your average
1:21:00R2 R2 loss ratio on that?" stats are
1:21:03good and proven, then you keep then you
1:21:05keep taking it. Then, it's like, "Hey,
1:21:06this is the perfect setup. It works. I
1:21:08know it works one out of you know, one
1:21:10out of two times, 50% win ratio, for
1:21:11example. And you just keep taking that
1:21:13probability. But, the question is, "Is
1:21:15your setup or strategy or approach
1:21:17there?" Like, confidently, can you say
1:21:18it's there?
1:21:20And most of the time, it's really not
1:21:21for most people.
1:21:22>> Yeah, yeah. I would definitely say that
1:21:24during certain time horizons, like when
1:21:27I'm trading around 10:30, which is late
1:21:29Asia, getting into like 12:00 a.m.,
1:21:31which is pre-London, that's my most
1:21:33ideal time. And then, I find myself
1:21:34taking setups the next day at like 7:00.
1:21:36>> Yeah, but see those things it's just
1:21:38different market timings, too. Those
1:21:40things are just not going to work. Like,
1:21:41that that's already a Now now you're
1:21:43ruining your own data and ruining your
1:21:44confidence of knowing the setup works.
1:21:46Now, when the setup does present on the
1:21:47good session, you're scared cuz you
1:21:49threw away some good mental energy on
1:21:51the bad sessions. And that makes it hard
1:21:53for you to take losses cuz the idea here
1:21:55is, "How good can you be on taking
1:21:56losses?" "Hey, the probability of this
1:21:58is 90%, 10% it won't work. I'll comf-
1:22:01comfortably take this all day, every
1:22:02day. If it doesn't work, hey, I took my
1:22:04chances." And you get comfortable with
1:22:06that. But, you only get comfortable when
1:22:07you see the probability of reading it
1:22:09and the probability of being able to
1:22:10execute on it is consistent for you.
1:22:13>> Having the data and just executing at
1:22:15the same exact time. Even though you
1:22:17might think you see a setup at an
1:22:19outside
1:22:19>> If you think something If you think
1:22:21something, you have to back it up with
1:22:22data and data has to be at least 100
1:22:24trades. If not, then it's just tell
1:22:26yourself it's BS. Because we will we
1:22:28will create nonsense in trading that
1:22:31doesn't make sense. And I still do it
1:22:32till today. Like if I want to justify I
1:22:33should go long, I'll make it up and
1:22:35afterwards I'm like, "Whoa."
1:22:37That was not long. I'm like, "Why did I
1:22:38take that trade?"
1:22:39>> Yeah, the highest I've ever
1:22:40>> Right? Yeah, yeah, yeah, yeah.
1:22:41>> Thank you.
1:22:42>> Of course.
1:22:47>> Uh so, my question is one of my biggest
1:22:49issue is um with my strategy or
1:22:51approach, I trade obviously supply and
1:22:54demand areas and waiting for a price
1:22:56watching price action and volume of how
1:22:57they enter that area waiting for
1:22:59confirmation.
1:23:00>> Sure.
1:23:01>> So, one of my biggest issues is I
1:23:03misread price action and volume at those
1:23:05areas
1:23:06and I take it where I think it's going
1:23:08and it hits my stop loss and I'll
1:23:09immediately get in right after that
1:23:11because it's going in the opposite
1:23:12direction because I know that some level
1:23:14of activity is going to happen at that
1:23:16level. So, what habits can I put in
1:23:18place um in order to stop myself from
1:23:22doing that level of revenge trading?
1:23:24>> Question. Um
1:23:26from a one losing trade to a second
1:23:27losing trade in the session, what's your
1:23:28time gap between that?
1:23:31>> Ooh, that's a good question. I'm not
1:23:33sure.
1:23:33>> Yeah, so I would I would widen that,
1:23:35okay? Right? If you take one trade,
1:23:36winning or losing,
1:23:38add a 10-minute timer. Go on your phone
1:23:40and just put a 10- I'm not allowed to
1:23:41take a trade for 10 minutes. Right?
1:23:43Because
1:23:44the moment you get out of a trade, good
1:23:45or bad, your adrenaline or emotions or
1:23:48whatever a lot of different things are
1:23:49at a high. You have the urge to click a
1:23:52button again. Your pain tolerance also
1:23:54goes higher.
1:23:55>> Yeah.
1:23:55>> So, it's like you know when you if you
1:23:56take a trade you're down 1,000 bucks,
1:23:58what's losing another 300? What's losing
1:24:00another 500? Then you know next thing
1:24:02you know you're down like nine grand in
1:24:03the day and you're like, "How the hell
1:24:04did I get here?" Right?
1:24:05>> my laptop.
1:24:06>> Yeah, right? So, so, so, so, those
1:24:08things happen without you noticing and
1:24:10they'd like they'll start becoming paper
1:24:12cuts. And the way to avoid paper cuts in
1:24:13the moment is
1:24:14hey, have a 10-minute gap. I can't take
1:24:16a trade in 10 minutes. So, like that's
1:24:17why don't think beginners should scalp
1:24:19because there's so much context and fast
1:24:21pacing that happens and you have to be
1:24:23able to process at such a high level.
1:24:25Not just the data, but yourself. What
1:24:26are you feeling? If you go long and
1:24:28something goes down, you immediately go,
1:24:29"I should go short." You go short, it
1:24:30goes up, "I should go long." Like, you
1:24:31you can't process that fast enough. It's
1:24:33just not
1:24:34not possible, right? It's It's a It's a
1:24:35muscle that one needs to get developed,
1:24:37and it's a skill that needs to get
1:24:38developed that takes time and years and
1:24:39years and years of practice.
1:24:41Um having a wider time between your
1:24:43trades is important. That's number one.
1:24:45Uh
1:24:46after winners and losers, right? If you
1:24:48do go through some of your data, I would
1:24:50be interested for you to look into that.
1:24:51Like, "Hey, if I take a trade and I end
1:24:53the trade at 10:00 a.m."
1:24:54>> Yeah.
1:24:55>> and I lose money on it, how soon is my
1:24:57next trade?
1:24:58>> Yeah.
1:24:58>> It's 2 minutes later. Why the hell am I
1:25:00taking my trade 2 minutes later? What is
1:25:01my bias? Does my bias stay consistent,
1:25:03or do I flip it?
1:25:05Why am I flipping my bias?
1:25:07Right? What was my bias going into the
1:25:09day? Like, you start to question all
1:25:10these things, and you start to go like,
1:25:12"Wow, I wasn't
1:25:14me when I was trading." There's like
1:25:15this concept I think everyone should
1:25:16check out. It's like the caveman theory.
1:25:18Like, our brains are not wired to trade
1:25:20and be in front of a computer. Our We
1:25:22have a caveman's brain, and anytime we
1:25:24feel risk, our emotions get our logical
1:25:27side gets hijacked by our emotions. And
1:25:29in trading,
1:25:31that's what happens. Like, I I had a big
1:25:33losing month in September, and I
1:25:35I went through all my trades, and that's
1:25:36exactly what happened. I had one losing
1:25:38a short, and 2 minutes later I took
1:25:39another losing short. And like, the idea
1:25:41is when these things happen, you
1:25:43recognize them fast enough to put in
1:25:45rules that are right there, and you are
1:25:48forced to follow. Now, if you don't
1:25:49follow the rules,
1:25:51then that's a whole 'nother
1:25:51conversation.
1:25:52>> Yeah, and that's the big thing cuz on
1:25:53the first trade, most of the time when I
1:25:55do revenge trade, it is because I didn't
1:25:57follow my rules on the first trade, and
1:25:59then I get myself down this path of,
1:26:01"Oh, no, I'm chasing now for more." Now
1:26:02have [snorts] a revenge trade in those
1:26:04areas.
1:26:04>> Yeah, those are where my worst trades
1:26:06came from, too. Like, in in in many
1:26:07years ago. Even now, like, I'll have one
1:26:09trade, lose money, and then it's like,
1:26:11"Oh, what's another few grand? What's
1:26:12another few grand?" And the next thing
1:26:13you know, you look at your end of the
1:26:15P&L, and you're like, "Shit." That all
1:26:16added up, you know?
1:26:17>> Yeah.
1:26:18>> Perfect. Thank you, man.
1:26:19>> Of course.
1:26:23>> Hi again.
1:26:24>> Hi.
1:26:25>> So, I wasn't going to bring this up, but
1:26:26since there was a joke about alcoholics,
1:26:28I will.
1:26:30Um I have been recovered for 7 years,
1:26:33and so I take the revenge trading side
1:26:35the revenge trading side of trading very
1:26:38personally, because it does feel like a
1:26:41drug to me. Like it kind of can feel
1:26:43like an outer body experience when I'm
1:26:45like clicking.
1:26:46>> It is. But just to Yeah, it is, by the
1:26:48way.
1:26:48>> So, like why can I stop,
1:26:51you know, drinking,
1:26:53but I can't stop over trading? Like
1:26:57it it's just very frustrating. So, I'm
1:26:59trying to
1:26:59>> I would think and I don't I'm not Maybe
1:27:02I'm wrong, but I would think because in
1:27:05trading when you press the button,
1:27:06there's a positive outcome. In drinking,
1:27:07there's no positive outcome. So,
1:27:09mentally your brain is like, "Well, if I
1:27:10press this button, I will make the money
1:27:12back."
1:27:13In drinking, if you drink more, you're
1:27:15not going to get better. You're only
1:27:16going to get worse. So, it's a you you
1:27:18you would have to maybe apply the same
1:27:20concept or framework to trading that
1:27:22trading more than three times is me now
1:27:24being drunk or consuming too much
1:27:26alcohol, which will destroy my body,
1:27:28destroy me.
1:27:29>> Yeah, it's like over indulging in
1:27:30trading.
1:27:31>> Yeah. So,
1:27:32>> like this is the hardest thing I've ever
1:27:33had to stop to become a better person.
1:27:36So, I'm trying to apply it to trading.
1:27:38>> Yeah, I think Yeah, that's the only
1:27:40difference, probably. It's just here you
1:27:41press the button, there's a possibility
1:27:43of making the money back or making
1:27:44money. And here, there's only bad. So,
1:27:47you have to kind of after three or four
1:27:49trades, you have to maybe create the
1:27:51same framework. After three or four
1:27:52trades, it's now bad. So, anything I do
1:27:54after three or four is like me consuming
1:27:56too much that could be just disruptive
1:27:58to me, which it is disruptive if you
1:27:59over trade.
1:28:00>> Yeah.
1:28:01>> Yeah. It definitely is.
1:28:02>> Yeah.
1:28:03>> So, I know that was random, but
1:28:04>> Okay. All good.
1:28:06>> Uh
1:28:06well, going to over trading since we
1:28:08talked about uh before, um Um, when I
1:28:10lose a trade, I go to all these
1:28:12different strategies.
1:28:13Uh, when do you know that your strategy
1:28:17doesn't work anymore? Like you said that
1:28:19the market always evolving, getting
1:28:20better. So, like when do I know, okay, I
1:28:22need to change something?
1:28:24>> I mean, I I I don't think there's a
1:28:26there's understanding of a strategy
1:28:28doesn't work overall. It's a strategy
1:28:30maybe isn't applicable for that trading
1:28:32session or period, right? So, I think
1:28:34it's good to understand that and not
1:28:37write off a strategy. So, if something
1:28:38has worked for you for a month to months
1:28:40and it stops working, there's two things
1:28:43that have happened. The market
1:28:45direction changed, market movement
1:28:47changed. Like we sometimes go from like
1:28:48a very directional market on the upside
1:28:51to immediately chop to or for a month
1:28:53market is just selling off. Like if you
1:28:54go to this year, right? Like February,
1:28:56March, April, market selling off. So, a
1:28:58lot of people that were trading a
1:28:59certain way in January and and December
1:29:01and November of last year, they blew
1:29:03their accounts, right? So, it's not that
1:29:05their strategy doesn't work anymore.
1:29:07It's now the whole sentiment of the
1:29:09market has flipped. Market is extremely
1:29:11short. You have to be able to read that
1:29:13and analyze that. And then also, you
1:29:15have to put blockers in. Like, hey, I've
1:29:18been trading this way and I've been
1:29:19wrong four times.
1:29:21Let me go through these trades. Was I
1:29:23actually wrong or did I read this wrong?
1:29:26Those are two different questions to
1:29:27always ask yourself. Like I have I have
1:29:29a lot of days where I either read the
1:29:31market completely wrong and I had no
1:29:33setup and I'll like tag it as like no
1:29:34setup. Even though I want to convince
1:29:36myself that this was a trade setup,
1:29:37there was no setup. I convinced myself
1:29:39in the moment, but afterwards it was
1:29:41essentially nothing. And then there's
1:29:42times like, hey, same thing with like
1:29:44the opening opening range breakout,
1:29:45right? Or morning top sell off. Like
1:29:47just strategy names, names don't really
1:29:49matter, but based on what I'm looking
1:29:51for the market to give me to trade this,
1:29:53that period isn't there. Right? Same
1:29:55thing if like
1:29:56we go through a period where the market
1:29:58is really flat and you know, we we have
1:30:00that throughout the whole year. Like out
1:30:01of 12 months, you'll have like two,
1:30:02three months where the market is like
1:30:04dead.
1:30:05And like people during those periods are
1:30:07like aggressively trying to put on those
1:30:09their strategies and they're like, "Oh,
1:30:11it doesn't work anymore. This strategy
1:30:12doesn't work. Let me jump to another
1:30:13one." And then market gets hot, they
1:30:15they they they they they don't act on
1:30:17it.
1:30:18>> Yeah, that's the same problem. That's
1:30:19what happens. So, like when it doesn't
1:30:20work three, four times, what I what I
1:30:22want to do is like, okay, I want I want
1:30:23to put a more size on it and uh maybe
1:30:27make it work with something else. Maybe
1:30:29that is going to work. So,
1:30:31>> So so so
1:30:32>> after three, four times, I should
1:30:33>> No, I I don't think three, four times of
1:30:35something not working is enough, but I I
1:30:36I I think I think it's good like when
1:30:38things don't work and even when things
1:30:40work,
1:30:41the the so so taking a step back, the
1:30:43most healthiest thing everyone can do is
1:30:44have a good feedback loop for
1:30:46themselves. When things are good and
1:30:48when things are bad. The feedback loop,
1:30:50what it does is just keeps you on your
1:30:51toes. Hey, I've traded really well this
1:30:52week.
1:30:53I shouldn't go in next week and expect
1:30:55I'm going to trade well again because
1:30:56immediately when you trade good, you
1:30:58want to increase size, you increase
1:30:59size, market takes it all back and plus
1:31:01more from you, right? So, how do you
1:31:03incorporate that feedback loop to make
1:31:04sure that you shouldn't make those
1:31:06stupid mistakes. Same thing in when you
1:31:08lose money or your strategy doesn't
1:31:09work, have that feedback loop of
1:31:12the strategy not work? Did I not execute
1:31:14it well? Or was it market condition
1:31:16changed? And you have to be able to
1:31:18objectively look at that from raw data
1:31:21and be able to understand, hey, wow, we
1:31:22were in a trending market for two weeks.
1:31:24Now Trump introduces tariff war thing
1:31:26and market is very confused and no one
1:31:27knows what direction market wants to go
1:31:29in. Of course, my setups that I look for
1:31:31in midday aren't going to work. Market
1:31:33is very confused. Uh I think I should
1:31:35step back a little bit aside a little
1:31:36bit. Now, if you don't want to step
1:31:38aside, reduce your risk by 90%. Let's
1:31:40assume everything is a C+ setup and
1:31:42you're just like you're just like
1:31:43keeping your hand in the market, you're
1:31:45just like taking like scratch trades if
1:31:47you want to call it, but they're not
1:31:48trades that will destroy your account or
1:31:51allow you to make a lot of money. So,
1:31:52you have to just it's it's just like an
1:31:53adjustment period. You need to know when
1:31:54to adjust and adapt to the market.
1:31:56>> Okay. Thank you so much.
1:31:57>> course. Thank you.
1:32:02>> All right. So, uh been funded, I would
1:32:04say more than four times now this year
1:32:07in 2025.
1:32:09And my biggest struggle has just been
1:32:13rushing the process and being a bit
1:32:16impatient after phase one.
1:32:18I've cleared phase two, but
1:32:20once I'm funded, it's like I'm instantly
1:32:22thinking about the payout window and the
1:32:25payout request. How did you get over
1:32:28that hurdle and what did you do to reset
1:32:30yourself after a loss mid-session? Was
1:32:34there certain things that you would do?
1:32:35I know I'm not sure about your funded
1:32:36journey if you had if you had one. I
1:32:38know you briefly spoke about, you know,
1:32:40your process, but
1:32:41what did you do to overcome that?
1:32:44>> So, I've never traded prop firms ever. I
1:32:47mean, when I was trading back then, prop
1:32:49firms weren't a thing and I
1:32:51actually want to try it
1:32:53right soon cuz I'm curious to know what
1:32:55that feeling is like. I was alone,
1:32:57right?
1:32:57>> If I'm not mistaken.
1:32:58>> Yeah, yeah, yeah. So, you know, things
1:33:00were a lot different. So, I have like
1:33:02this take on
1:33:04prop firms
1:33:05and it's I don't think anyone should
1:33:07touch them unless you have a proven
1:33:09strategy and you've like you can trade
1:33:11well and you have a good concept of
1:33:12trading. If not, I think it just becomes
1:33:14just like magical slot machine and
1:33:17you're going to keep burning through
1:33:19capital, keep burning through capital
1:33:21hoping for this payout without a proper
1:33:24approach.
1:33:25>> Yeah.
1:33:25>> Um
1:33:26if I was to start today, I would and I
1:33:29had let's say two grand or three grand
1:33:31and I had an option to use that two
1:33:33three grand to trade or pick a funded
1:33:35account, I would probably use my capital
1:33:37to trade even though it wouldn't be a
1:33:39lot, it would be enough for me to maybe
1:33:41trade one contract or two contracts
1:33:43without extra additional rules and
1:33:45pressures on me. So, prop firms are
1:33:48great if all of those things are good.
1:33:50If those things are not good, the only
1:33:52thing you're introducing is you're
1:33:54introducing more difficulty in your
1:33:55trading journey.
1:33:57So, like What does like
1:34:00Cuz the pressure of like getting paid
1:34:01out and the pressure of hitting that
1:34:03payout and all of those things
1:34:05>> Is it Is it different for someone that
1:34:07has gotten to the funded stage multiple
1:34:08times and has at least gotten a few
1:34:10payouts versus someone that has never
1:34:12gotten to the funded stage or never
1:34:13received a payout? Like are you Are you
1:34:15taking a different approach to those two
1:34:17separate people?
1:34:18Or does it not really matter?
1:34:20>> I think it doesn't matter. I think it's
1:34:21still going to be there. All right,
1:34:23you're still going to
1:34:24Because there's
1:34:25To my knowledge and once again, I'm
1:34:26coming from a place where I have never
1:34:28traded prop firms. So, I
1:34:30I'm not in those shoes to really walk
1:34:32through the experience. But
1:34:34understanding it just from like a
1:34:35psychological point of view
1:34:37there are components of hitting this
1:34:40like dopamine high of getting to this
1:34:42payout. So, then what happens is that
1:34:44let's say you're 100 bucks away or 1,000
1:34:46bucks away from hitting a payout
1:34:47you as a trader, you now start to create
1:34:50false opportunities in the market to
1:34:52hopefully get a trade right and hit that
1:34:54payout.
1:34:54>> Right.
1:34:55>> And if you do that you'll get the
1:34:56payout. If you don't, you won't. So,
1:34:58like you start to make stupid trades and
1:35:00it's like my advice there, once again,
1:35:03coming from someone that hasn't done it,
1:35:04so it's a little bit hard is
1:35:07disconnect from the outcome of prop firm
1:35:08payouts or any sort of payouts and just
1:35:10trade what the market gives you. If
1:35:12you're 50 bucks away from a payout,
1:35:13don't say, "Oh, I need to
1:35:15get the payouts. I'm going to go put on
1:35:16a trade." Just trade the way you usually
1:35:18would. The
1:35:19The long-term goal, in my opinion, is
1:35:22you should aim to get away from prop
1:35:24firms. Prop firms are the middle tool
1:35:26for you to obtain capital and your own
1:35:28capital that you can trade with. That
1:35:30tool should That bridge should be
1:35:32applied once you've obtained the
1:35:34knowledge as a trader. You You You have
1:35:37a good strategy. You have a good
1:35:38approach. Once that part is done, then
1:35:40you can use it as a bridge to go on to
1:35:43build your own capital to trade. But if
1:35:45you just stay on prop firms for forever,
1:35:46just
1:35:48>> That makes sense. I mean, long-term
1:35:50most institutional or large traders
1:35:53would say that they would prefer to use
1:35:54customer funds over their own personal
1:35:56>> Yeah, but but but but that's
1:35:58that that's very different than prop
1:35:59firms.
1:35:59>> It's different from prop
1:36:00>> The reality of prop firms and you know,
1:36:01I tweeted about this other day. Prop
1:36:02firms are essentially quote unquote the
1:36:04future, but the way prop firm business
1:36:05models work is by your fees. They want
1:36:07you to fail. That's how they make money.
1:36:09That's the reality of a prop firm. So,
1:36:10if a prop firm comes out and says that,
1:36:12I respect them more than saying, "No, we
1:36:13want success for every trader." No, you
1:36:14don't cuz if if you take any big top
1:36:16firm and all of their traders made money
1:36:18for that month, that prop firm is going
1:36:20under. Right? So,
1:36:21that concept of like the word prop firms
1:36:24prop firms are funded companies, very
1:36:25different than traditional firms that
1:36:28use customer money. Those people are
1:36:30getting a salary. Those people that work
1:36:31for those firms are getting a salary.
1:36:33So, it's two different things.
1:36:35>> that they're that they're good. We know
1:36:36that like the statistics show that like
1:36:38only the top 5% of traders will ever
1:36:41pass and then it's like 1% of that 5%
1:36:44will ever get funded and then it's like
1:36:450.1% actually get a payout or consistent
1:36:48payouts. Like So, you're saying you're
1:36:50not approaching those two traders
1:36:52differently?
1:36:53>> No, I I you know, I would I would
1:36:54approach it from the way of just try to
1:36:56trade right. Stop trying to trade around
1:36:58your prop firm rules in terms of I need
1:36:59to get a payout. I need to do this. If
1:37:01that's how you're trading, it's just
1:37:02going to make things harder or find a
1:37:04firm that's not forcing you to trade
1:37:05around certain rules. It's just going to
1:37:07make your life harder cuz trading is
1:37:08hard hard as it is. Now, you're adding
1:37:10these new level of rules and making it
1:37:11even harder and harder in my opinion.
1:37:13>> Thank you.
1:37:14>> Of course. Thank you.
1:37:18>> Hi.
1:37:18>> Hi.
1:37:20>> First, I just would like to share that I
1:37:23slightly disagree with not starting with
1:37:26a prop firm because I started with a
1:37:28prop firm and I feel like the capital
1:37:31that I do have set aside to trade live
1:37:33with that I've been sitting on for over
1:37:35a year, I would have completely blown
1:37:37it. So, I learned a lot of valuable
1:37:40lessons making mistakes on the props,
1:37:42but at the same time,
1:37:44I'm ready to try to go live and I think
1:37:47I might have held myself back in that I
1:37:50could have become profitable more
1:37:52quickly had I been at least doing both
1:37:56at the same time.
1:37:58So,
1:38:00I'm wondering if you have a
1:38:01recommendation of when I should attempt
1:38:05to go live. I'm I'm considering doing
1:38:07forex very
1:38:08soon cuz it's a
1:38:10it's a lower barrier to entry.
1:38:13>> I mean, I'm personally not a fan of
1:38:15forex. I mean, just me. I probably would
1:38:17trade futures.
1:38:18Um
1:38:20more centralized exchange.
1:38:22Brokers aren't shady. Every broker is
1:38:24making up their own prices, own spreads.
1:38:27It's a lower barrier of entry for a
1:38:28reason.
1:38:29Just
1:38:30you know, it's
1:38:32I suck to you, but I'm not a fan of
1:38:33forex.
1:38:34>> Okay. Yeah, I know.
1:38:34>> I would probably stay I would probably
1:38:35stay
1:38:36I would probably stick to futures, but
1:38:39I get the point of where
1:38:41for you, let's say, prop firms helped
1:38:44you become profitable and so on, but
1:38:46when you look at it from a larger point
1:38:47of view,
1:38:49they are a slot machine for a lot of
1:38:51people. So, people feel the challenge.
1:38:53They go again. They go again. They go
1:38:54again, and they start spending so much
1:38:56money. Like, there's people that have
1:38:57spent more than two, three grand in fees
1:38:59in like a short period of time where if
1:39:02they took that two, three grand, traded
1:39:04one contract or one micro, let's say,
1:39:06where every stop was like they'd lose 20
1:39:08bucks or 30 bucks, right? They can go
1:39:11through 50, 60 trades, and they're
1:39:13essentially okay.
1:39:14>> Yeah.
1:39:15>> Right? As opposed to now,
1:39:17I'm getting funded. I now have to follow
1:39:19these rules, and I have to trade a
1:39:20certain way for these rules as I'm
1:39:22developing and being trying to become
1:39:24profitable. I now have these new layer
1:39:25of rules that I
1:39:28don't or shouldn't really have under me
1:39:29in my opinion.
1:39:30>> To be clear, I'm not profitable yet.
1:39:32>> Yeah.
1:39:32>> I just reached my first payout for AX
1:39:35and got denied.
1:39:36>> Yeah.
1:39:36>> So, I've
1:39:38hit like a wall of
1:39:41almost an inconsistency I hadn't seen
1:39:44before because I was trying to adjust my
1:39:46risk from the way I was trading before.
1:39:48So, now I'm just like on this roller
1:39:50coaster. I'm like trading the P&L. I'm
1:39:52taking profits too fast. So, that's kind
1:39:55of where I'm like, should I just go try
1:39:57to go live alongside this or am I trying
1:40:00to go in two different directions?
1:40:02>> if you can follow the rules enough where
1:40:05if you believe that if you didn't have
1:40:06those rules and you go on massive tilt
1:40:08and you trade 30 times cuz
1:40:11the the the one or two pros that I do
1:40:13see at prop firms is
1:40:14there is like a pro to the rules and
1:40:16there was a con to the rules, right? So,
1:40:17like the pro of the rules is that it is
1:40:19going to keep people in a structure and
1:40:20it's like, "Oh,
1:40:22if I don't follow this, I get punished
1:40:23and I fail." So, that there's an element
1:40:25of health healthiness to it for a lot of
1:40:27people. But, then on the flip side, I
1:40:29think that depends on you. If you if you
1:40:30can go live and you can follow your
1:40:32rules and you you are going to, you
1:40:34know, trade with max loss size and all
1:40:35these things, then then it does make
1:40:37sense, right? Maybe it does make sense
1:40:38for you to go live. But, if you think
1:40:39you're going to like not be able to do
1:40:41that and you do need that layer of like
1:40:43rules on top of you, then keep sticking
1:40:45with props until you maybe become
1:40:47profitable.
1:40:47>> Yeah, it's also a thing again like I
1:40:49haven't traded a prop firm challenge to
1:40:52like experience it, which I'm going to
1:40:53do very soon just to go through it. So,
1:40:55>> No, I respect your opinion. It was just
1:40:56my own journey. I was like, no
1:40:58discipline, no risk management, no
1:41:00rules. So, it was a season for me, but
1:41:03it's it could be different for another
1:41:06trader.
1:41:06>> Yeah, and and and right there see it
1:41:08that's where the rule element is
1:41:09healthy, but I the the thing that I have
1:41:11a difficult time is like
1:41:13just because you have the rules doesn't
1:41:15mean you're going to pass or you're
1:41:16going to do well. You need to have the
1:41:17foundation to write and be able to apply
1:41:19that because if not, you're going to pay
1:41:2150 bucks or 100 bucks or 200 bucks or
1:41:23whatever it is for every new challenge
1:41:25and that ends up being more at times for
1:41:27a 2K account that you can fund yourself
1:41:29and go with the certain broker and get a
1:41:30good amount of leverage to still trade
1:41:32one or two contracts. And you don't have
1:41:33to think about, "Oh, I failed the the
1:41:35Oh, I failed the account. I failed the
1:41:36account." I think once you overcome that
1:41:38part and you have the foundation, then
1:41:41you can maybe go to it, yeah.
1:41:42>> Thank you.
1:41:43>> Yeah, of course. Thank you.
1:41:54No, I couldn't I couldn't say it.
1:41:56Couldn't say it.
1:41:57>> [laughter]
1:42:05>> Uh so, I did disagree with you on a
1:42:08bunch of things, actually, right?
1:42:09Because I've traded prop and I've traded
1:42:12personal.
1:42:13And the point you made about how you,
1:42:15you know, traders might just start
1:42:17turning and turning accounts,
1:42:19I feel like people would do that with
1:42:21their personal. And I feel like there's,
1:42:23you know, people that lose way more
1:42:25personal because they end up dropping in
1:42:2750,000, 100,000
1:42:29into their accounts.
1:42:30Um and they blow their life savings. You
1:42:32know, you can't do with that with a prop
1:42:33firm. The turning your account
1:42:35>> So, question, do you think people that
1:42:36have 50 grand that you went through
1:42:38props haven't burned through 50 grand on
1:42:39props?
1:42:41>> So, I believe that the people who blew
1:42:43that through props
1:42:44would have blown that through personals.
1:42:46>> So,
1:42:47they would have blown in both ways,
1:42:48right?
1:42:48>> Yes.
1:42:49>> Okay.
1:42:49>> But the difference is so, it's not the
1:42:51prop firm that's the problem, it's the
1:42:53trader that's the problem, you know? And
1:42:56when you just look at strictly numbers,
1:42:59you buy a $100 challenge, you get like a
1:43:01$2,000 drawdown.
1:43:02>> Sure.
1:43:03>> But if you want to fund your own
1:43:05account, you got to put $2,000 in to get
1:43:07that $2,000 drawdown, you know?
1:43:09>> Sure.
1:43:09>> If it's a legitimate prop firm, you're
1:43:11trading the same minis, same micros.
1:43:14The data comes from CME, right? There's
1:43:17no
1:43:18uh like manipulation going on, you know?
1:43:20So, I just don't see the advantage of
1:43:22trading personal, maybe unless like you
1:43:25are constantly profitable and you want
1:43:27to fund and just like, you know,
1:43:29just be independent and
1:43:31>> so do you think a new trader should jump
1:43:32into prop firms?
1:43:33>> I think so.
1:43:34>> Okay, and what is going to happen in the
1:43:376 months that they trade props?
1:43:40>> They discover their edge. They They
1:43:42learn risk management, you know, and
1:43:44>> But don't you think it's hard to
1:43:45discover your edge when you have a
1:43:47certain rule and then or rules to follow
1:43:50and you have to hit profit targets and
1:43:51drawdowns and things like that and then
1:43:53you start to trade around that instead
1:43:55of your edge when this time the most
1:43:57important thing for you to do is to
1:43:58develop edge raw data and now I'm
1:44:00altering that to trade off this firm's
1:44:03rules. Now I'm altering it to trade off
1:44:04this firm's rules. Now I'm altering it
1:44:06to trade off this firm's rule. So, as a
1:44:07beginner
1:44:09where does it make sense?
1:44:11>> There There Look, there's a reality of
1:44:12it.
1:44:13>> Well, if someone's going to blow 50
1:44:14grand, they're going to blow 50 grand.
1:44:15Like, if you're going to be stupid,
1:44:16you're going to be stupid. Either way,
1:44:17right? But now, if I'm going to blow 50
1:44:20grand of my own money, let's say that's
1:44:21all I have and I'm going to burn it.
1:44:24I would still personally rather burn it
1:44:26through my own capital
1:44:28and know like, "Hey, the mistakes I'm
1:44:29making are not shaped off the rules that
1:44:32I have to bend off different firms."
1:44:33Just my take.
1:44:35Right? Hey, I I adjusted my risk because
1:44:37I'm an idiot. I didn't adjust my risk
1:44:38because this prop firm wants me to hit
1:44:40this profit target in 2 days for me to
1:44:42get funded and I reacted off that and I
1:44:44wasn't able to get real data. That's my
1:44:46point. Like, yes, both will lose money,
1:44:48but I would assume this one has better
1:44:50raw data for myself after losing 50
1:44:53grand than churning through 50 grand in
1:44:55account fees.
1:44:57Yeah, that's my That's my only thing
1:44:58with with I think once you get to a
1:44:59stage of knowing what you're doing, you
1:45:02have data, you can adjust to it, you're
1:45:03not going to get thrown off by the
1:45:04different rules and stuff, then yeah,
1:45:06sure, trade trade it. Go for it, right?
1:45:08But until then, you're just going to hit
1:45:10the slot machine and, you know, a lot of
1:45:12props have customers that have spent 80,
1:45:1390, 100, 200, 300 grand with them in a
1:45:15year.
1:45:16So,
1:45:17and if you look at their metrics, their
1:45:19metrics are I'm going to try to go long.
1:45:20I'm going to try to pass this challenge
1:45:21today. I'm going to take the craziest
1:45:22trade. And they do that over and over
1:45:23and over again. They're gambling. And
1:45:25it's easier to fall into that gambling
1:45:26mentality. You walk away a year later
1:45:28with no raw data, in my opinion. Would
1:45:31you hit that one big trade? Sure, maybe.
1:45:33But if that was the case and prop firms
1:45:35were such a good model, prop firms would
1:45:37be under. They wouldn't be
1:45:39profitable. The reason they're so
1:45:40profitable is because
1:45:42the other happens. People burn through a
1:45:43lot of challenges, right? So, I think
1:45:45it's a tool that you have to know when
1:45:48you're ready to use it and when you
1:45:50should utilize it. I think people are
1:45:52utilizing it
1:45:53too early on.
1:45:54>> Mhm.
1:45:55>> Yeah.
1:45:55>> Okay. I agree.
1:45:56>> The other point that I disagreed with
1:45:57you on uh you were mention you were
1:45:59talking to one of the traders here um
1:46:00and you were talking about how if a
1:46:02position is like, you know, so close to
1:46:04your take profit, why are you, you know,
1:46:07like if you're looking at the price to
1:46:08stall,
1:46:09>> Mhm.
1:46:09>> why are you not just taking your profit
1:46:11there?
1:46:12>> Okay.
1:46:12>> You know, uh
1:46:13if you see it stall.
1:46:14>> Sure.
1:46:15>> I feel like that advice only applies to
1:46:17a veteran.
1:46:18>> Okay.
1:46:19>> think that advice going to apply to
1:46:20someone who's new because
1:46:22as someone who's still trying to figure
1:46:23out their edge, still trying to figure
1:46:25out where their targets should be and,
1:46:27you know, just learning price action,
1:46:31I feel like you have to kind of just let
1:46:32the market do its thing and watch like
1:46:35how it reacts cuz sometimes price can
1:46:37chop to your take profit, right? And you
1:46:40got to be have the patience to
1:46:42accept that as part of your edge, you
1:46:44know? And then you you also don't know
1:46:46if it's your emotions that are hijacking
1:46:48you trying to take this
1:46:49profit target or is it actually like
1:46:51you're you're actually watching a
1:46:53reversal happen or not. So, I feel like
1:46:55those are the couple of
1:46:56>> Sure.
1:46:57>> Uh
1:46:58>> [sighs]
1:46:58>> I mean, I I I still disagree with that
1:47:00because I think what happens in most
1:47:01people's points is if their take profit
1:47:03is at 20 bucks, let's just say this
1:47:06stock or this thing has to go to 20
1:47:08bucks and it gets to like 1950 or 1980
1:47:11and they're off 20 cents,
1:47:13their stop is still at 18. Their break
1:47:15even is maybe at 1850. So, what happens
1:47:17in those situations, they start to give
1:47:19up
1:47:20a dollar and 15 in
1:47:22right? Or a point or two points or four
1:47:23points in profit
1:47:25>> for like that small 20 cents or 10 cents
1:47:27let's say if we're talking about stocks.
1:47:28I think
1:47:29because risk reward starts to adjust in
1:47:31the trade. So, like if if you're risking
1:47:33a dollar and you're looking to make
1:47:34three and you're up $2.80,
1:47:37your risk reward is now like you're
1:47:38risking 20 cents,
1:47:40right? Or you're risking $2 or whatever
1:47:43to make 20 cents.
1:47:44>> Okay, I see.
1:47:45>> Is that margin at this point worth it?
1:47:48If not, when do you start to cut your
1:47:49losses, right? And
1:47:52it's the same concept that as I was
1:47:53saying with the ball, if I bounce the
1:47:55ball here, we assume it's going to hit
1:47:56here. But we as traders should be able
1:47:58to recognize when to this slow down,
1:48:00right? Because if we say our target is
1:48:024280,
1:48:03how many times does it go to 4277 and
1:48:05reverse or 4276 or 75, right? Those for
1:48:08those five point gain, you're now going
1:48:10to risk 30 points. And as a trader, our
1:48:12job is to be adjusting to the market and
1:48:16be reacting to what happens. We didn't
1:48:18anticipate that there's going to be a
1:48:19lot of sell orders or aggressive selling
1:48:21coming. If that does start to happen, we
1:48:23as traders, I don't think it's a veteran
1:48:24or individual thing. It's every trader
1:48:26should be able to react to the market
1:48:28and understand, "Hey, for four more
1:48:30points, I don't think it makes sense for
1:48:31me to risk my 25 points of profit that
1:48:33I'm in already." That profit and I think
1:48:35for beginners, it's more important to
1:48:38lock in profit, see green, see
1:48:40consistency. Like I'd rather everyone,
1:48:42let's say that that's a beginner in the
1:48:43developing stages,
1:48:45have, you know, eight out of 10 trades
1:48:48where they've maybe maximized 90% of
1:48:50their take profit, left that 10% opposed
1:48:53to having two or three of those trades
1:48:54where they gave up that full take profit
1:48:56and they hit their stop loss or break
1:48:58even because that does more damage to a
1:49:00trader, especially in developing stages,
1:49:02than anything else because you're like,
1:49:03"Oh my god, I was up this much. I wish I
1:49:05made about What happened?" And you go on
1:49:06like crazy tilt. So,
1:49:08I I I think all the I would assume even
1:49:10if we're comparing who is more important
1:49:11I think for developing it's even more
1:49:13important to get those wins and get get
1:49:15momentum and get that confidence in
1:49:16their in their setups. Yeah.
1:49:18>> Okay. So, for example, let's say I start
1:49:21implementing that where I start like,
1:49:23you know, maybe let's say
1:49:25my position is four ticks away from my
1:49:27take profit and I start seeing the price
1:49:29stutter and I take that and I get that
1:49:32reward system, right? I get that reward
1:49:34in my brain. How do I avoid going down
1:49:36this rabbit hole where where I'm just
1:49:38now I'm 10 points away from my take
1:49:40profit and I'm cutting it and now I'm 20
1:49:42points away from my take profit and I'm
1:49:44cutting it because I just don't want to
1:49:45go down that.
1:49:46>> Of course, yeah, yeah. That's true. I I
1:49:48I think even when you do that, let's say
1:49:49you do do that for 10, 12 trades, you do
1:49:51go back to them and say, "What happened
1:49:52after I sold?"
1:49:53Every time [clears throat] I sold eight
1:49:55or nine times out out of those trades
1:49:57that position went up 10 more points.
1:49:59Wow, I am selling early. What is making
1:50:01me sell early? Okay, so what's the way I
1:50:02can combat that? Take half off the
1:50:04table,
1:50:05move my stop off. Like there's a lot of
1:50:07different variations you can do, but
1:50:09it's like when you do it, it's not like
1:50:10nothing's going to be perfect. You're
1:50:12going to have to keep adjusting, right?
1:50:13So, like I'll have periods where
1:50:15once it gets close to my take profit,
1:50:16I'll take half off.
1:50:18Right? I'll take a percentage off and
1:50:19I'll like feel some of the profit just
1:50:20cuz I'm like, "Hey, I want to get cash
1:50:22flow cash flow from this trade." If I'm
1:50:24trading like say spy contracts, I'm in
1:50:25500 contracts
1:50:27and we move up a little bit, I'm taking
1:50:29200 or 300 contracts, you know, as we
1:50:30get closer. I'll let the remaining run
1:50:32and I'll have like a mental stop on
1:50:34where I want the remaining to go and it
1:50:36makes it easier for me to manage the
1:50:38position now cuz I locked in profits cuz
1:50:40essentially like you didn't make money
1:50:42on a trade until you hit sell. So, if
1:50:43you see you're up 500, 5,000, 50,000,
1:50:45it's just numbers until you get out. So,
1:50:48if you sell portion of it, you take away
1:50:50the pressure of like, "Okay, I got
1:50:52something off." Even though it wasn't
1:50:53perfect on my take profit, I got
1:50:55something, I made some money, I got some
1:50:56win, I got some momentum and that I
1:50:58think goes a long way for traders.
1:51:00>> Yeah. Yeah. I like that.
1:51:01>> Awesome.
1:51:02>> Cool. Thank you, man.
1:51:02>> Appreciate it. Thank you.
1:51:03>> Thank you, sir. It's a pleasure to be
1:51:05here. Definitely. Um so,
1:51:08I have been trading for 3 years and I
1:51:11come from a family and from a place that
1:51:15money hurts.
1:51:16Like we didn't have anything. Now that
1:51:18we live in the United States,
1:51:20um money's different.
1:51:22>> Yeah.
1:51:22>> And I'm trying to have the right
1:51:24mentality on trading.
1:51:25>> Yeah.
1:51:26>> But my issue at this point of my 3 years
1:51:29on trading, I think it's mostly
1:51:31mentality.
1:51:32I'm switching. Um
1:51:34I was trading I used to start trading
1:51:36options.
1:51:37Then I switched to prop firms.
1:51:39And I found myself trying to trade every
1:51:41moment.
1:51:42You know, futures we close only 1 hour.
1:51:45So you can trade overnight. You can
1:51:47place a trade a limit order.
1:51:49Um
1:51:50during the overnight you were asleep,
1:51:51you open your profits, close out, that's
1:51:54it. Um
1:51:56but now
1:51:57I found and I and I was and I was making
1:52:00progress and I was making profits. I got
1:52:03some payouts, I got funded. But
1:52:06um
1:52:07at some point, like during this year, I
1:52:09found myself only failing. And
1:52:12I was like, all right, let me go back to
1:52:14my world, where is options, and let me
1:52:17trade my own capital. Because if I want
1:52:19to make uh progress on my career, I want
1:52:22to feel that is my own. I don't want to
1:52:24be dealing with um
1:52:26uh
1:52:27rules, like you say. I don't want to be
1:52:28dealing with have having to request my
1:52:31payout, having to request somebody like,
1:52:33"Hey, this is my money, give it to me."
1:52:35or whatever.
1:52:36Um and I've been trading options. You
1:52:38know, options they are hard, but I feel
1:52:42that I have been
1:52:45carrying
1:52:46the the ghost. How
1:52:49what what would be your
1:52:51your
1:52:52your advice to me
1:52:54to to deal with old ghosts, to deal with
1:52:58my
1:53:00mistakes
1:53:02from the beginning years, because I have
1:53:04been quitting early,
1:53:06uh winner,
1:53:08winning trades early.
1:53:10Um, sometimes I I don't I'm not able to
1:53:13recognize the
1:53:15the A+ or B+. So, it is like even though
1:53:19my my good trades are
1:53:23three times what I'm losing.
1:53:25Because just to give you a number, my
1:53:27profits are
1:53:28for for a contract, $60 and my losses
1:53:31are $20. Which is three times. But
1:53:37I
1:53:38um I deal with a lot of old ghosts. Like
1:53:42if I have a bias
1:53:43and I wanted to go short
1:53:45I keep trying. I keep trying, keep
1:53:47trying, keep trying and my
1:53:51win to loss ratio, it is too it is too
1:53:54little. It is not I'm not being able to
1:53:57to constantly keep my profits because
1:54:01for every 10 trades, I lose uh
1:54:04eight or seven. Basic scenario is like
1:54:08four good ones and six bad ones.
1:54:11How can I
1:54:13overcome the
1:54:16old Kelvin?
1:54:19>> I mean
1:54:21if you're trying to overcome the old
1:54:22version of you that would That's my my
1:54:24assumption would be
1:54:26you started as the old version, you then
1:54:29achieved the old version and became
1:54:31profitable and then you went back to the
1:54:33old version.
1:54:34Is that the case or not?
1:54:35>> Yeah.
1:54:35>> So, what happened? What So, you were
1:54:37profitable at a point.
1:54:38>> Uh-huh.
1:54:39>> And then what changed?
1:54:41>> I don't I don't really understand.
1:54:43Um
1:54:44>> Is it cuz you just got off prop firms,
1:54:45maybe?
1:54:46>> If what?
1:54:47>> Is it cuz you got off prop firms?
1:54:50>> The while I was on prop firms, I was
1:54:53making progress, but at some point I
1:54:56>> And now you're not on prop firms.
1:54:57>> Yeah.
1:54:57>> Maybe maybe maybe that's what it was.
1:54:59Maybe it was the prop firms did give you
1:55:00structure.
1:55:02And now that you don't have the
1:55:02structure and you don't have rules on
1:55:04top of you, you're
1:55:05you're pure mess.
1:55:07>> Like before I used to be trading
1:55:09futures. Now I'm trading options and you
1:55:11know it's so different. It's so
1:55:12>> Options like I I I I think like stay
1:55:14away from options.
1:55:15>> Yeah.
1:55:15>> Yeah, yeah. That's someone that trade
1:55:16options. I'm telling you just like don't
1:55:18trade options. I'm telling I'm being
1:55:19honest with you.
1:55:20Like I'm I'm being I'm being I'm being
1:55:22honest. Yeah, don't trade options. Yeah,
1:55:24yeah.
1:55:25I don't trade options like
1:55:26like it's yeah, don't trade options.
1:55:28Stick to futures. Right? Uh
1:55:31Trade options if you're like really good
1:55:33at managing risk. You're going to tell
1:55:34yourself you're going to follow your
1:55:35rules, you're going to do it. You can
1:55:36read price action in the market really
1:55:38well. You can identify opportunities
1:55:39extremely well.
1:55:41Until you get there,
1:55:43I don't think you should trade options.
1:55:44You should be able to make money with
1:55:45futures so easily that when you go to up
1:55:47cuz with options you start to introduce
1:55:49more risk, more fluctuation, more
1:55:51unknowns.
1:55:53Um
1:55:54you know, price going up doesn't mean
1:55:55the contract price is going to go up the
1:55:57same way. That starts to mentally mess
1:55:59with you like why I'm seeing price price
1:56:00go up and my contracts are barely moving
1:56:01or you know, price makes a small move
1:56:03down and your contracts go down 30%.
1:56:05That's such a big shock.
1:56:07Maybe you're trading options. I I I
1:56:08think go back to futures. That's the
1:56:09other thing. It's like if you guys are
1:56:10trading a certain instrument and it's
1:56:12working, keep trading that instrument.
1:56:13Scale into that. Don't switch. Right? So
1:56:15if you're trading futures and it's
1:56:17working,
1:56:18the the difference of you making $100 a
1:56:20trade or for for 60 bucks a trade, size.
1:56:24How do you Now, the question is if if
1:56:25you are making 60 bucks a trade and
1:56:27you're losing 20,
1:56:28how do you increase size while
1:56:30maintaining your risk and keeping it
1:56:32consistent and making sure you're
1:56:34executing at the same level? It may take
1:56:36you some time, but that's okay. But as
1:56:37you slowly increase size, now instead of
1:56:39making 60 bucks a trade, you go to 600.
1:56:40Instead of making 600, you make 6,000.
1:56:43The only difference between someone that
1:56:44makes a million a year to 100k a year
1:56:46outside of skills and experience is
1:56:47size.
1:56:48That's it.
1:56:49>> I I found amazing that you're saying
1:56:51that we we should trade less. I
1:56:54>> I mean I think it's a it's conceptual to
1:56:56everyone. You know, some people like to
1:56:57trade a lot. They're scalping. They'll
1:56:59take I know people that do put on 50, 60
1:57:01trades a day and they are making a
1:57:02grand, two grand a trade, losing four or
1:57:04five hundred. These are like
1:57:05professional people, right? That works
1:57:06for them, right? But I think starting
1:57:08out, the reason I say trade less is you
1:57:09want to make Like it's very hard for you
1:57:11to identify your setup
1:57:13>> Mhm.
1:57:13>> 20 times a day.
1:57:14>> Definitely.
1:57:15>> Just not going to happen, right? Uh if
1:57:18it is going to happen, then you know,
1:57:19you should be right at least 60, 70% of
1:57:21the time if you're scalping. If you're
1:57:22not, then you're over trading, you're
1:57:23just taking random trades. That's why I
1:57:25say reduce and force yourself to think
1:57:27about every trade, every opportunity you
1:57:28do take that has to fit sort within that
1:57:30criteria.
1:57:34>> Um so you were mentioning I overheard
1:57:36you say that scalping probably not very
1:57:37good for a beginner and I still consider
1:57:39myself a beginner. So what would you
1:57:40suggest? Like I'm going back to the
1:57:41drawing board basically.
1:57:43>> Yeah, I I I mean,
1:57:44I think scalping is very hard because
1:57:45it's very high
1:57:47high You have to be quick on your feet,
1:57:48right? It's It's fast-paced. You have to
1:57:49be able to think very quickly. You have
1:57:51to be able to read the market very fast.
1:57:54Um
1:57:55sometimes biases are switching,
1:57:56sometimes you're going from long to
1:57:57short and I just think
1:57:59in the early stages, it's very difficult
1:58:02to do that, right? It also depends on
1:58:04your personality type. Like are you able
1:58:06to move quick on your feet? Are you able
1:58:07to think clearly in your head in a short
1:58:09period of time under pressure, let's
1:58:10just say. Are you able to adjust your
1:58:12positions as needed? And most of the
1:58:14time most people cannot. So if you are
1:58:17trading, then it could be like, "Hey,
1:58:19this is my strategy and my approach to
1:58:21the market. This is what I need the
1:58:23market to do and show me." The market is
1:58:26not going to show me this thing 20 times
1:58:28a day or 30 times a day.
1:58:30It'll show it to me like once, twice,
1:58:32three, four, maybe five times, whatever
1:58:33the case is, but I need to now make sure
1:58:36that this criteria is hit perfectly. And
1:58:39if it is, I go in with the least amount
1:58:41of size. And the reason I keep size
1:58:43small for once again people that are
1:58:44developing is because once you increase
1:58:46size, that's when emotions hijack your
1:58:48trade.
1:58:49>> I've noticed that.
1:58:49>> Right? Like if anyone's trading with
1:58:51small size, your emotions are not a
1:58:53don't play a role. It's just not
1:58:54possible. Like, if you if everyone here
1:58:56risks a dollar on a trade, your emotions
1:58:58are non-existent. So, when people say,
1:58:59"Oh, my emotions are hijacking my
1:59:01trading." I'm like, either you're
1:59:02trading with too much size or you're
1:59:03lying to yourself. Right? Emotions come
1:59:05in after your strategy is essentially
1:59:07proven and starts to work and then you
1:59:08scale up. So, I would focus on that
1:59:10first and start to like trade in wider
1:59:13time frames.
1:59:15Don't look at the 1-minute time frame.
1:59:16Like, stay at at like the 5-minute at
1:59:18the lowest.
1:59:19>> That's hard to
1:59:19>> Uh yeah, stay at 5 minutes at the
1:59:21lowest.
1:59:22There's a lot of noise happens at the
1:59:231-2 minutes and like that noise makes
1:59:25you very reactive. Change your chart
1:59:27colors. Don't have red and green. That
1:59:29plays a big role in people. They see
1:59:31three red candles and it's like mental
1:59:33panic fire, right? They see green three
1:59:35green and they want to get in. These
1:59:36things start to play play a big role.
1:59:39And now, if you just make it black and
1:59:40white and you have your level and you
1:59:42have your identification, it's just it
1:59:43needs to hit this price for me to go
1:59:45long.
1:59:46>> Mhm.
1:59:46>> When it hits that price, shot down what
1:59:48happened? You might be wrong at first.
1:59:49You might get it everything might not
1:59:51work, but the idea is for you to keep
1:59:53building and learning on top of that and
1:59:54take the trades that fit that criteria.
1:59:56>> Thank you.
1:59:57>> Of course. Thank you.
2:00:02>> Um couple of just firing off questions
2:00:04for you. Uh previously in the videos,
2:00:07you have said you look for six to eight
2:00:09good days of trading.
2:00:10>> Yeah.
2:00:11>> Uh how do you identify those days?
2:00:14>> Uh good question. So, as I mentioned
2:00:15before, FOMC happens, right? A lot of
2:00:17times after FOMC happens, if you don't
2:00:18have job report the next Friday, that
2:00:21Thursday is a day I like to trade. The
2:00:23way I see it, just giving you one
2:00:24example, is like FOMC happens, market
2:00:26gets market's been waiting for this
2:00:28event, waiting for the news, depending
2:00:29on what it was.
2:00:31Uh Thursday after on the open, depending
2:00:32on yesterday's action, I start to look
2:00:34for how the open is happening. Are we
2:00:35getting an a surge of sell volume coming
2:00:37in? Sometimes sellers are very
2:00:39aggressive on the open. Uh and those are
2:00:41the days I I go to the market looking to
2:00:43be active. Same thing if like market's
2:00:45been flat for a while, right? Typically,
2:00:47you'll start seeing rotation. A flat
2:00:49market that's very balanced is going to
2:00:50get imbalanced at one particular point.
2:00:52So, if we're imbalanced for a while, the
2:00:54first question I have is why are we
2:00:55imbalanced? Right? Is there like a
2:00:57market event that the market's caring
2:00:58about? Are we in between a certain range
2:01:00from a technical point of view?
2:01:02Is there something that has happened
2:01:04that caused this to kind of kick in?
2:01:06Maybe everyone's waiting for tariffs
2:01:08announcements. So, before tariff
2:01:09announcements come out, market's going
2:01:10to stay cash and wait for that
2:01:12announcement to come in before it starts
2:01:13to make a move. So, during that period
2:01:15>> I'm like, "I don't really think there's
2:01:16a possibility to trade." Then the second
2:01:18side comes in where market makes a big
2:01:20move up or down. It goes into imbalance
2:01:22zone, right? You get a sell-off or you
2:01:24get this big impulse move on the upside.
2:01:25You break out of weekly highs, lows,
2:01:27whatever the case is. Now it's like
2:01:28market's in action. Now those are days
2:01:30that I come involved. Then we go back
2:01:32into that range and start getting a
2:01:33little bit more uh you know, to myself.
2:01:36>> Got you. On your uh personal or personal
2:01:38what whatever account you use, what's
2:01:40your daily loss limit on it
2:01:42percentage-wise?
2:01:43How do you take that?
2:01:44>> So, because I trade options, and this is
2:01:46what a lot of people get get wrong is
2:01:47like
2:01:49>> I I don't really trade futures that
2:01:50much.
2:01:50>> Okay.
2:01:50>> I trade mostly options. But but the the
2:01:53concept can can apply, right? So,
2:01:55my loss depends a lot on my previous
2:01:58month and what my bankroll is, right?
2:02:00So, if like my bankroll is good, right?
2:02:02And opportunity in that market is good.
2:02:03Like for example,
2:02:05uh August So, so in September I lost 1.4
2:02:08million dollars, but
2:02:10with the losses and the size I was
2:02:11trading, I was probably maybe going to
2:02:13walk out if I was right or caught some
2:02:15shorts, right? Probably two or two and a
2:02:17half million, maybe three.
2:02:18>> Mhm.
2:02:18>> So, the risk there may mentally made
2:02:21sense for me to be like, "Okay, I can go
2:02:22in aggressive." Also,
2:02:24August was a strong month for me to just
2:02:26bankroll some of the profits in to be
2:02:27able to take some of the bigger risks
2:02:28that I anticipated were going to happen
2:02:31in September, which I was wrong about,
2:02:33right? So, those two things go hand in
2:02:35hand, and that's where dynamic risk
2:02:37comes in, right? So, like I'll go into
2:02:39some trades that'll that'll be 20k, 30k,
2:02:42right? Like I I think in dollar terms.
2:02:43I'm not thinking really percentage. I'm
2:02:45going, "Hey, if I take this trade, this
2:02:48trade is going to cost me 50 grand. If I
2:02:50take this trade, this trade is going to
2:02:51cost me 40 grand. If I take this trade,
2:02:53this trade's going to cost me 15 grand.
2:02:55Okay, I can take the 15 grand trade."
2:02:57I've been like getting crushed in the
2:02:58market recently. I lost a little bit of
2:03:00momentum, lost a little bit of
2:03:01confidence. Um okay, let me let me take
2:03:04smaller sized bets, build that
2:03:06confidence up. Once that's there and I
2:03:07feel good, I'll go back in heavy. So,
2:03:10for me, the dynamic of the risk adjust
2:03:11all the time.
2:03:13>> [laughter]
2:03:19>> Thanks for being a gentleman.
2:03:21So, well, I was thinking I'm like on the
2:03:23path of being a profitable trader and
2:03:26I need more data to work for me,
2:03:28obviously. And as I've been looking at
2:03:31my stats on Trade Seller, and I look at
2:03:34like different things and different
2:03:35metrics, like what days it works for me,
2:03:37what times, and all the good stuff. I've
2:03:40been able to make those tweaks and like
2:03:43fine-tune to discover my edge. So, when
2:03:46I walked here this morning, and I was
2:03:48like, "Okay, you know what? I'm getting
2:03:50there."
2:03:51Uh but all of a sudden, like I'm
2:03:53listening to all the folks around here,
2:03:54and they seem to sound so technical and
2:03:56so smart, and I'm feeling stupid. I I'm
2:03:59doubting myself.
2:04:02Is it like post-lunch stuff? I I don't
2:04:04know. You wouldn't know that, but uh can
2:04:06you help me here?
2:04:06>> Yeah, I mean
2:04:07>> I thought trading is simple.
2:04:09>> Uh I mean, I don't want to say trading
2:04:10is
2:04:10>> to be simple if you like fine-tune here
2:04:12and there, right?
2:04:13>> I mean, it's I I don't want to say it's
2:04:14simple. I don't want to say it's
2:04:15complicated. I think there's like a fine
2:04:17middle of it.
2:04:18>> Yeah.
2:04:18>> My my my thing is if you're
2:04:20Let's just flip this conversation into
2:04:22like to your profitable for the past two
2:04:23years.
2:04:24>> Yeah.
2:04:25>> Then you have like whatever you feel
2:04:27doesn't matter, right? It's not like,
2:04:28"Oh my god, I need to add more things. I
2:04:30need to do more stuff." If your P&L is
2:04:32there and your stats are there and your
2:04:33data is there to support, you know, the
2:04:35things you know, don't add more just
2:04:37because people sound more technical or
2:04:39they sound like they know more.
2:04:42Um, that's probably my only thing. It's
2:04:44It's the same insecurity thing, right?
2:04:46That we were talking about before. Don't
2:04:47let that creep in into like, oh, I need
2:04:49to learn more. This person knows that.
2:04:50This person knows that. Like, if you
2:04:53know enough to make yourself money in
2:04:55the trading, like, don't try to learn
2:04:57more. If that's working, let's just say
2:04:58for you, for example, if it works, just
2:05:00keep it at that because when you
2:05:01introduce new information, now before
2:05:04you execute, and I've seen this happen
2:05:06to so many people, like they have a
2:05:07proven process, a proven method to, you
2:05:09know, trade, and then they're like,
2:05:11well, I watched this video and this guy
2:05:13or this girl does this or that. They
2:05:15introduce that. Now when it's time to
2:05:17execute, they overcomplicate their
2:05:19process that was already working. So if
2:05:21your thing is working, then don't be
2:05:24hard on yourself. Now if it's not
2:05:25working, then it's good to keep your
2:05:27ears open, pay attention, but you also
2:05:29have to learn how to filter noise cuz
2:05:31now the the problem with the trading
2:05:33industry now is there's so much noise.
2:05:35There's good data in the noise where
2:05:37like 10 or 12 years ago there wasn't a
2:05:39lot of noise and a lot of good data
2:05:41where I think there's like pros and cons
2:05:43of now, but now you'll hear so many
2:05:44different terms like I hear terms of
2:05:45like people that trade um
2:05:48ICT and they use these words. I'm like,
2:05:50what are those words? What does that
2:05:52mean? And it gets you into like, oh, I
2:05:53want to learn that. I want to see that.
2:05:55But for me I'm like, hey, I'm I trade
2:05:56this way. It works for me. I don't
2:05:58really care what someone else does. My
2:06:00metric isn't what they know or how smart
2:06:01they sound. My metric is, am I able to
2:06:03make money from the way I look at the
2:06:05market? And if that works, then keep it
2:06:06at that.
2:06:06>> All right. I'll stick to that. Thank
2:06:08>> Yeah, yeah, no problem.
2:06:11>> What's up, my man?
2:06:12>> What's up, man?
2:06:14>> So, um,
2:06:15from my recent experiences, I've been
2:06:17learning that it's not the P&L that
2:06:19matters, or as you can see here, it's
2:06:21not really the strategy that you use
2:06:22that matters, but it's really the
2:06:23character that you bring into the
2:06:25market. So I guess my question is
2:06:27>> I disagree. I think strategy matters.
2:06:29Yeah, yeah, I think I I character and
2:06:30all those things matter after you have a
2:06:32proven strategy.
2:06:34Um I think I think there's a
2:06:35misinformation in the market that
2:06:37everyone focuses so much on psychology
2:06:39and mindset and personal development and
2:06:41yeah, that's good, but I think that is
2:06:43second.
2:06:44>> Okay.
2:06:45>> That is not first. If someone is putting
2:06:47first and they only talk about that,
2:06:49that means they don't know how to trade.
2:06:50Keep that in mind in social media world,
2:06:52right?
2:06:53Um
2:06:54If you have a proven strategy, right?
2:06:56And it it it it works, your emotions
2:06:58only come in when you feel risk. You
2:07:00only feel risk when you have size or you
2:07:02have capital, right? If it's a dollar,
2:07:04you won't feel it. If it's $2, you won't
2:07:06feel it. Now, if it's 2 grand or 20
2:07:07grand, you will start to feel it.
2:07:08>> Okay.
2:07:09>> Then you work your way up to that. So,
2:07:10those are two separate problems, but
2:07:12this problem has to be solved first
2:07:14>> part.
2:07:15>> before you get here.
2:07:17>> Okay.
2:07:17>> Yeah.
2:07:17>> So, let's then say the strategy part is
2:07:20working and it is fixing. What
2:07:22characteristics do you believe should be
2:07:24brought upon the market every single day
2:07:26as an amateur trader as many of
2:07:28as many of us here?
2:07:30>> I think you have to be very That's a
2:07:31good question. You have to be very open
2:07:32to feedback. You have to be open in
2:07:33being wrong and good at being wrong and
2:07:35like accept it.
2:07:37Uh you have to approach the market from
2:07:39like literally no ego. Like there's
2:07:41times you have the perfect setup,
2:07:42everything looks good, and I'm wrong,
2:07:44and I'm like, "Okay, that was a good
2:07:45losing trade." And you live with that.
2:07:48Um adaptability, you have to adapt to
2:07:49market conditions really well.
2:07:52Uh you have to show up every single day
2:07:55and
2:07:56what I mean by show up every single day
2:07:57is
2:07:58just because you made money last week as
2:08:00I said before, does not mean you're
2:08:01going to make money next week. You have
2:08:02to keep doing the same things you've
2:08:04been doing that that have gotten you
2:08:05here. And I see traders that trade for 2
2:08:07years, 3 years, work really hard, get to
2:08:09this really good profitable stage.
2:08:11>> Yeah.
2:08:11>> And then they stop doing all the things
2:08:13they did, right? Uh they stop, you know,
2:08:15reviewing their data week to week or
2:08:17reviewing their end-of-day session notes
2:08:18or whatever the case is, and then they
2:08:20like immediately start going into
2:08:21drawdown.
2:08:23Yeah. And then also in characteristics
2:08:25uh characteristics as well, I think I
2:08:26think it is good you to know yourself
2:08:28and know what your flaws are. Uh like
2:08:31what are your personal things that you
2:08:33have a hard time like if you have no
2:08:34self-discipline, you're not randomly
2:08:36going to turn on a screen and develop it
2:08:38in a second. You have to have a level of
2:08:40patience for example, you need to be
2:08:41patient, self-discipline,
2:08:43uh self-control,
2:08:45uh your brain's important for you to be
2:08:46able to think like if you sleep at 6:00
2:08:49a.m. and you wake up at 8:00 a.m.
2:08:50expecting to perform,
2:08:52>> Yeah, it's hard.
2:08:52>> you're not going to. You know, so these
2:08:54are some of the things that are
2:08:55everything are important to everyone to
2:08:56have.
2:08:56>> Okay. Um then follow-up question, right?
2:08:59Uh this is a little bit more personal
2:09:01experience. I'm very disciplined like
2:09:02when it comes to the gym, but when it
2:09:04comes to trading, it's a little bit
2:09:06different, right? Like when it comes to
2:09:08follow my process or follow my rules.
2:09:10I I maybe it's because it's the money
2:09:12aspect behind it, but I want to know
2:09:14what's your opinion on that.
2:09:15>> I It's usually the money element. Yeah,
2:09:18it's it's money and you're looking for
2:09:19this outcome and because you want this
2:09:21outcome, you're willing to bend the
2:09:23rules here,
2:09:24>> Right. So it's like
2:09:25>> if you could go to the gym and bench 500
2:09:26lb and like gain 10 lb of muscle and
2:09:29there's a possibility of that, you would
2:09:31do it, but you know that if you do it,
2:09:32you're going to hurt yourself probably.
2:09:33You know what I mean? So now in trading,
2:09:34it's the same concept. You don't think
2:09:36you're going to hurt yourself. You
2:09:37think, "Oh, I'm going to be right here.
2:09:39Oh, this setup looks good. Oh, this
2:09:40setup looks so good. Let me increase
2:09:41size. If I increase size on this setup,
2:09:43I would have made this much money." So
2:09:45in one, you get hurt like you have real
2:09:48pain, right? In the second one, you
2:09:49don't believe that's real, so you're
2:09:51more comfortable in clicking a button
2:09:52that
2:09:53will probably hurt you after, yeah.
2:09:54>> Yeah. Thank you for that answer, man.
2:09:56>> I appreciate it. Thank you.
2:10:00>> I'll keep it warm for you.
2:10:01>> [laughter]
2:10:03>> All right, I'm going to make this quick.
2:10:04So
2:10:05I noticed online there's these two camps
2:10:07of traders, right? One camp says
2:10:10indices have no edge and that stocks in
2:10:14play are the only things that you should
2:10:17learn because it'll make it easier for
2:10:19you find your edge.
2:10:20Then there's another camp that, you
2:10:22know, they are trading indices, they're
2:10:25trading futures, they get payouts. And
2:10:27now a lot of them are starting to trade
2:10:29live. And they're taking wins and losses
2:10:31in front of you, so you can see their
2:10:32profitability, right? So, for someone
2:10:34who's like, you know, trying to become
2:10:36consistent and want to stick to at least
2:10:38one thing, I feel like I'm getting
2:10:39pulled into these two different camps
2:10:41and I don't know I don't want to waste
2:10:42my time. Essentially, I want to go where
2:10:44the edge is.
2:10:45>> Yeah.
2:10:45>> Someone who trades, I think SPX or SPY.
2:10:49And I've seen them trade like Nvidia and
2:10:51Tesla when they're in play. Like when
2:10:52Trump was about to become president,
2:10:54Elon was with him. Tesla was in play.
2:10:56>> Yeah.
2:10:56>> So, like how would you say like, you
2:10:58know, where is the edge in that? Like in
2:11:00in which
2:11:01>> I think both work. I think anyone saying
2:11:02one works and the other doesn't is
2:11:05stupid. They both work. It's just I
2:11:07think people haven't explored other ways
2:11:09of trading and they
2:11:11shut it off, right? So, it's like if you
2:11:13trade The thing that I'm only against is
2:11:15is Forex or CFDs is
2:11:18for a real reason. It's not centralized.
2:11:20Brokers are really shady. They're
2:11:21displaying different prices if you go on
2:11:23all different brokers. They make money
2:11:25by B-booking. It's not centralized. A
2:11:26lot of different stuff. But if you go to
2:11:27trade equities or indices,
2:11:30people make billions of dollars in both.
2:11:32There's no such thing as one is better
2:11:34than the other. You can make money in
2:11:36both. You can incorporate both. Uh when
2:11:39stocks are in play, you can go and trade
2:11:40some of the stocks, earning season, big
2:11:42news. When they're not in play, you can
2:11:43go and trade, you know, indices. So,
2:11:45both work.
2:11:46>> Yeah.
2:11:47>> So, like would you say cuz you hear a
2:11:49lot of this advice where like, you know,
2:11:51they focus on one thing, learn the one
2:11:52instrument, like learn how it moves
2:11:54first, you know, before you start like
2:11:56switching and cuz I don't want to like
2:11:57learn, you know, I I trade YM and it
2:12:00moves very different than other indices
2:12:02and it moves extremely different than
2:12:04any stock,
2:12:04>> Sure.
2:12:05>> you know? And I don't want to spread
2:12:06myself out too thin.
2:12:07>> I I think starting out you shouldn't. I
2:12:08think starting out pick stick to
2:12:10indices, which would probably be a
2:12:11little bit more easier than stocks cuz
2:12:13with stocks you now have to find what's
2:12:14in play, what's moving. You're going
2:12:16from Tesla to Nvidia to Palantir or
2:12:18whatever the case is, it becomes
2:12:19overwhelming but if you trade I don't
2:12:21know EOS, gold, whatever the case it's a
2:12:23little bit easier for you to pick that
2:12:24market, track it, trade it and so on.
2:12:27But yeah, but once you develop that
2:12:28market and you get good at it, you could
2:12:30always introduce stocks and introduce
2:12:32like what stocks are in play, what is
2:12:33moving, what is not moving and start to
2:12:35combine those two
2:12:37hand in hand.
2:12:38>> Right. So you've seen edge in both
2:12:39essentially, right?
2:12:41Okay, awesome. Thank you.
2:12:42>> Of course. Thank you.
2:12:45>> How's it going?
2:12:46>> How you doing?
2:12:47My question is I have been collecting
2:12:48data with very simple rules and now that
2:12:52I have enough data I was wondering
2:12:53should I be focusing on
2:12:56um risk and reward or win rate next?
2:13:01Or both at the same time? Should I be
2:13:03looking for a better risk and reward or
2:13:04should I be looking for a better win
2:13:07rate?
2:13:08>> Uh I mean
2:13:10>> Or both at the same time?
2:13:11>> I always say like win to loss ratio is
2:13:14more important but it depends, right? It
2:13:16depends on what is your like what are
2:13:17your stats, right? Uh if you show me
2:13:21that hey my win percentage is 60%, my
2:13:23question for that is like the 10 trades
2:13:26you took where six you were right and
2:13:27four you were wrong,
2:13:29were the six you were right on, was that
2:13:31your actual setup? Did the rules apply
2:13:34honestly? Right? Like I going back to me
2:13:36I have trades where I think it's a setup
2:13:37in the moment and I trade it I make
2:13:39money I feel great and I go back to it
2:13:40at the end of the day I'm like that
2:13:42did not hit my criteria. So honestly,
2:13:44that was a scratch trade for me. I don't
2:13:46want to count that in my stats. I don't
2:13:47want to say now I have a 60% win rate. I
2:13:49want to say I have a 50% win rate cuz
2:13:50that wasn't a good setup. The outcome
2:13:52was good but the things that I did for
2:13:54the outcome weren't good and I have to
2:13:55focus on that. So if you're focusing on
2:13:57win percentage, I would start to dissect
2:13:59that and understand that on a deeper
2:14:00level and same thing with losses. Was it
2:14:02a good loss or a bad loss? Bad loss
2:14:04meaning that this wasn't your trade
2:14:06setup. You didn't follow your stop loss.
2:14:08You didn't follow your execution rules.
2:14:10Good losses you followed everything but
2:14:11the market just the probability didn't
2:14:13work in your favor. When you look at the
2:14:15win percentage from that component, then
2:14:16you get the real raw number. What is
2:14:18your real raw number, right? Then from
2:14:20when you look at that real raw number,
2:14:22then you say, "Out of these 10 trades,
2:14:24these are 10 trades where I followed the
2:14:25rules, I followed my setup, I did
2:14:27everything good in here. I had a 60% win
2:14:29rate. Based on this, if I keep risk
2:14:31consistent at $200, what's my win to
2:14:33loss ratio?" And then from there you can
2:14:35start to optimize. But if you just look
2:14:36at those metrics raw,
2:14:39it's hard to really judge them.
2:14:41>> I see. Yeah. My only question is, when
2:14:43do you have any advice so I can
2:14:45recognize when
2:14:47this strategy it's actually not working
2:14:50or
2:14:51the market is just shifting and the
2:14:54strategy needs some little adjustment.
2:14:56So, when it's variance that it's in
2:14:59place or actually market is shifting?
2:15:02>> Yeah. Uh
2:15:04So, I think if strategy's working, once
2:15:05again, there's no such thing as
2:15:07the strategy doesn't work anymore. It's
2:15:09just maybe in the market condition, it's
2:15:11not as effective or the way to look at
2:15:13the market. So, just to simplify
2:15:15something, let's say
2:15:16my approach is I'm looking at the
2:15:19interaction between buyers and sellers.
2:15:20Let's say I'm looking at order flow, for
2:15:22example.
2:15:23And let's just say I have
2:15:25an absorption play. To simplify it for
2:15:27people that don't trade order flow,
2:15:29let's say I'm looking at a key support
2:15:31level and in that key support level I'm
2:15:33identifying where buyers step in, get
2:15:35more aggressive, they're more passive,
2:15:37they're able to overtake price and drive
2:15:38price up higher.
2:15:40Now, will that stop working?
2:15:43Uh
2:15:44Probably not. It'll keep working, but
2:15:46will it not work in maybe certain market
2:15:47conditions? Sure. If market is selling
2:15:49off, market's weak, uh that may not
2:15:52happen in the same context that I looked
2:15:54at it before. So, I may have to be able
2:15:55to recognize those different market
2:15:57conditions. So, for example,
2:15:58if you take this year,
2:16:00uh
2:16:01February, March, April, when the market
2:16:02tanked,
2:16:04right? For example, market it tanking,
2:16:05we had all the tariff news,
2:16:07everything was chaotic. People that
2:16:09traded a certain way,
2:16:11that approached the market that were
2:16:12riding the move up of Trump coming into
2:16:14office, they got screwed on that because
2:16:16they kept trying to catch you know,
2:16:19momentum in the market going in the
2:16:20upside. They weren't able to flip their
2:16:22strategies or approaches and then
2:16:23there's some people that were like, I
2:16:24have no idea how to trade this market.
2:16:26I'm going to sit on the sidelines. I'm
2:16:27not going to say my strategy doesn't
2:16:29work. I'm just going to say that the
2:16:30market has gotten more chaotic, it has
2:16:32gotten crazier and I do not know how to
2:16:34adjust to this volatility. So then
2:16:36that's where volatility starts to matter
2:16:37and that's why some people like look at
2:16:39VIX if they trade options or if they
2:16:40trade certain moves cuz it gives them a
2:16:42context of like this is not my time to
2:16:43trade.
2:16:44So your your strategy and approach are
2:16:47depending on what it is, are contingent
2:16:49at times in my opinion to market
2:16:52conditions and you don't want to scratch
2:16:54a strategy off that has worked and say,
2:16:56"Ah, it doesn't work anymore." or
2:16:57introduce new things because of a short
2:17:00period of it not working. But that's why
2:17:01it's very important like that's why the
2:17:03developing stage of getting the
2:17:04information and the trades and like
2:17:06following your rules and having the
2:17:08setup criteria set good is so important.
2:17:10Like that's more important than you
2:17:11making money on year one than anything
2:17:13cuz if that's set and you have that
2:17:15proven and you have confidence in that,
2:17:17then you go to sec stage two of like
2:17:18working on psychology, working on
2:17:20sizing, working on scaling in and out.
2:17:22Which is not easier but like you now are
2:17:24in a much better situation.
2:17:26>> I agree.
2:17:27>> Yeah.
2:17:27>> Great.
2:17:28>> Appreciate it. Thank you.
2:17:33>> So this is actually going to be a trade
2:17:36that I took
2:17:38and I won for the day,
2:17:41but I felt like I definitely rewarded
2:17:43bad behaviors
2:17:45and I was very
2:17:46like emotional on the day.
2:17:52On that evening, I like sat down for my
2:17:54trade hours
2:17:56and my
2:17:59husband was like watching my daughter
2:18:01and I was hearing like screaming and I
2:18:04was hearing him kind of like complaining
2:18:06and I was just in my head emotionally
2:18:09like feeling insecure about being a mom
2:18:12and and being a wife like not having the
2:18:14food done and everything. So like I had
2:18:16entered the trade basically as a good
2:18:20setup, but then it started going against
2:18:23me, but then it came back into profit
2:18:25and I actually ended up like closing the
2:18:28trade. You can see right here.
2:18:30I closed the trade and then I was like
2:18:33frustrated with my family and I thought
2:18:35that I got out too early. So I reentered
2:18:38the trade.
2:18:39So like on the end of the day, I was
2:18:42just like
2:18:44even though my P&L looks good, I'm not
2:18:47happy with myself. So it's kind of
2:18:49weird.
2:18:50>> So I I I I I I think it's good where
2:18:53for everyone if anyone has like a
2:18:55profitable trade like even for me now
2:18:56like I like I'll give you an example. I
2:18:58think
2:18:59in June or July, I traded FOMC and I
2:19:01usually don't trade FOMC, right? And I
2:19:04made like 50 some grand on FOMC.
2:19:07And it was like oh my god, I did so well
2:19:09and I read the market and what what not
2:19:10and you know, you want to
2:19:12make yourself sound smarter than you
2:19:13are.
2:19:14And then at the end of the day, I went
2:19:15back to the trade and I said exactly
2:19:16like you. I was like it's a green trade,
2:19:18but this behavior needs to be recognized
2:19:21right now. If I don't recognize this
2:19:22behavior now and I start building false
2:19:26confidence on me doing stupid things,
2:19:28the next time I do something stupid, I
2:19:29will not make money. I will probably
2:19:31blow so much more money.
2:19:34So I think it's that's one thing I think
2:19:36when people do look into their data to
2:19:38be able to be honest about it and to
2:19:40tell them like hey, I I didn't follow my
2:19:42game plan. I didn't do anything right or
2:19:44I did these things wrong. Even though I
2:19:45made money, I I'm going to count this as
2:19:47a scratch trade. So then even when you
2:19:49go on like your win percentage, this
2:19:50would be a trade where I'm like if I'm
2:19:52looking at my strategy, I don't want to
2:19:53look at this because it's going to give
2:19:55me flawed data, right? Like the trade
2:19:57worked, but there's also racks, or you
2:19:59know, there's elements of like
2:20:00randomness in some trades, and I don't
2:20:02want to introduce that in here where I
2:20:04kind of screw it up.
2:20:05>> I really should even change my stars. I
2:20:07don't know why I have to have. Like I
2:20:08should have given myself two.
2:20:11Cuz it was like I took this trade, and
2:20:13then this was the second, like me
2:20:15hopping back in. Like you don't
2:20:17especially the way I trade with trend
2:20:19lines, you don't do that. Like that's
2:20:22just sloppy. Like
2:20:24chasing the move or whatever.
2:20:25>> Yeah, but this is a prime example of a
2:20:26trade where I think you made you were
2:20:28green, but I think you were down, you
2:20:31know.
2:20:32>> Yeah, if you look at the insights, it's
2:20:33>> Yeah, you were down you were down a lot.
2:20:34So, this is a this is example where net
2:20:37P&L is saying, "Oh, the person made 20
2:20:39bucks." But at one point she was down
2:20:40$60. Right? So, in theory 200, 600,
2:20:442,000, 6,000. It looks great on paper.
2:20:47It looks great on for your win
2:20:48percentage, but
2:20:49>> Yeah, I get a lot of these negative
2:20:50marks on my seller insights.
2:20:52>> Yeah, so I would I would probably like
2:20:54see your drawdown exceed your profits by
2:20:55three times. Like these are things where
2:20:57it's like
2:20:58Now, if you look at your win percentage,
2:20:59you might feel good. But now if you
2:21:00start to take these trades out, you
2:21:01might start seeing your win percentage
2:21:03is actually a lot lower
2:21:05>> Yeah.
2:21:05>> than it should be. And it should it'll
2:21:06start adjusting more stats for you.
2:21:08>> One thing I really struggle with is the
2:21:11um
2:21:13Where's the where it tells you your data
2:21:16report? I do not know how to
2:21:20read my reports that well. Like what
2:21:22metrics This is embarrassing cuz I
2:21:25with prop firms, I take profit so fast.
2:21:27Like that's horrible. Point two one R.
2:21:30This is embarrassing. And you know, when
2:21:33you're on prop firms, when I first
2:21:35started, I would set my stop loss at the
2:21:38max drawdown. That's super embarrassing.
2:21:40So, that's why my daily my daily max is
2:21:43so high, but
2:21:44yeah, just trying to decide
2:21:47what to improve on with the metrics This
2:21:50for me.
2:21:52>> Yeah, I think I think the easiest two
2:21:54three metrics for everyone to focus on
2:21:55is one is average daily win loss ratio
2:21:58to trade win loss ratio. Like what are
2:22:00you making on each winning trade? What
2:22:01are you losing on each losing trade?
2:22:04Um having one to two strategies that you
2:22:06focus on and like categorizing your
2:22:09strategies, right? So for example, if
2:22:11you have I don't know, let's say um
2:22:13opening drive breakout strategy, you're
2:22:16able to identify what actually fits that
2:22:19strategy or criteria and the ones that
2:22:21don't when you just say this even if I
2:22:22made money or lost money, this was no
2:22:24setup. So you can properly track the
2:22:26data around it. If not, then you start
2:22:28having, you know, false data and you
2:22:29start having false trades. So even that
2:22:31trade where you made money, I would
2:22:33probably not even attach it to a
2:22:34playbook or attach it to a strategy. I
2:22:36would say no strategy. So now when you
2:22:38look at your strategy stats, it doesn't
2:22:39alter it and make it better
2:22:41than it is. Then you go, "Okay, when I
2:22:43look at my stats." Cuz
2:22:44there's an element of of some trades
2:22:46where
2:22:47you'll do everything wrong and you'll
2:22:48make money. And the quicker you can
2:22:50realize that and the quicker you can
2:22:52catch yourself and be honest and say,
2:22:53"Hey, this is not what I want to reward
2:22:55myself for and make myself feel good
2:22:56about." The better you'll be good at the
2:22:59faster you'll get good at trading and
2:23:00recognize these mistakes. Yeah, which is
2:23:03I think great that you recognize that
2:23:04and did that.
2:23:05>> Thank you.
2:23:06>> So the first thing and the most
2:23:08important thing that I want to talk to
2:23:09you about is reading order flow because
2:23:12I started using ATOS after I saw you
2:23:15using it, you know.
2:23:17Um so
2:23:19I want to make sure I'm analyzing the
2:23:21orders coming in correctly. So I took
2:23:22screenshots of my cluster settings and I
2:23:24just want to kind of walk through you
2:23:26through it at a high level just to make
2:23:27sure that I do have the right settings,
2:23:28right? So if you go to uh the cluster
2:23:31settings,
2:23:32I have it set to bid ask.
2:23:35Mode is volume profile.
2:23:37Uh
2:23:38bid color red, ask color green.
2:23:41And I'm just trying to keep it super
2:23:43simple, you know. I don't want to I I
2:23:45want too much data showing up in the
2:23:46candle.
2:23:48And then I think uh what is it? Uh
2:23:51Down here I just have the imbalance rate
2:23:53to set to 200. So
2:23:54when it starts stacking red and green
2:23:56orders, it should be like 2x for it to
2:23:58start getting highlighted, right?
2:24:00>> So when you when you look at footprint
2:24:02charts, they're not to they're like
2:24:04confirmation when you they're only work
2:24:05when you get to like a key zone or a key
2:24:07area, right? So one thing people do
2:24:09wrong with order flow is they like stare
2:24:10at it all day and try to find
2:24:12pockets of entries over and over again.
2:24:14>> Mhm.
2:24:14>> Like there's professional scalpers that
2:24:16can do that and find those like five 10
2:24:18point moves, but I think for majority of
2:24:21people you should utilize it if you get
2:24:24to like this key absorption area. And
2:24:26you know, can you analyze what's
2:24:28happening? And one thing that I highly
2:24:29recommend is like when you are trading
2:24:32screen record.
2:24:34Identify what you think is happening. Go
2:24:35back and see if you're able to recognize
2:24:36it, right? And and you start to train
2:24:38yourself over and over again.
2:24:40Focus on one or two things like oh are
2:24:42we seeing absorption? When does
2:24:43imbalance happen? What do you to see on
2:24:45the tape on on that tape? And and the
2:24:47thing with the tape is you start to see
2:24:48how the activity changes. You're not
2:24:49going to read every order, but you start
2:24:51to see the pace of orders and how
2:24:52activity starts to change. And how's the
2:24:54bid start holding? Does the bid keep
2:24:56pre-loading or not?
2:24:58But but that's something like you need
2:25:00to go through a session, record it, go
2:25:02back, watch it. Do a session, record it,
2:25:04go back, watch it.
2:25:06Do this like a good 100 times. You'll
2:25:08you'll
2:25:08develop this like natural intuitive
2:25:10feeling. That's how people get that
2:25:11natural intuitive feeling. Once they
2:25:12kind of are able to read it, they start
2:25:14to see oh this I've seen happen so many
2:25:16times. Buyers are stepping in. They're
2:25:18getting aggressive or there's a passive
2:25:20participant involved here.
2:25:22There's a high chance we're going to
2:25:23bounce.
2:25:24>> Yeah. Yeah, absolutely. So I do have a
2:25:26couple of like my best trades that I
2:25:28want to show you cuz if if I'm reading
2:25:30it correctly at my best trades, I'm just
2:25:31going to try to focus on doing this
2:25:33repeat that as much as I can, you know?
2:25:35So here let me just blow this up.
2:25:39Let me scroll. So pre-market review
2:25:42essentially this is a personal question.
2:25:44I ask, what was my weakness yesterday
2:25:47that I can work on?
2:25:48>> That's actually really good. The fact
2:25:49that
2:25:50So, the fact that you start from
2:25:51yesterday's weakness is a good thing cuz
2:25:53>> Yeah.
2:25:54>> it allows you to carry over yesterday's
2:25:57lessons and stuff
2:25:58and bring it and highlight it so you
2:26:00don't make the same mistake again. So,
2:26:01if like yesterday you overtraded for
2:26:03something stupid and and and the reality
2:26:05is
2:26:06we are all going to, including myself,
2:26:09continue to make the mistake. So, a
2:26:10mistake that I make today is the same
2:26:12mistake I made seven years ago. The only
2:26:14difference is that now I can recognize
2:26:16it faster and I can prevent it from
2:26:18bleeding into the next few weeks and
2:26:20blowing my account. The problem seven or
2:26:22eight years ago is when I would have a
2:26:23problem I would let it bleed into my
2:26:26trading and destroy my trading. So, a
2:26:29good way, which is what you highlighted,
2:26:30you start the day and you're like,
2:26:31yesterday I overtraded. I told myself I
2:26:33wasn't going to trade after 11. I need
2:26:35to stop trading after 11. I took two,
2:26:37three trades that didn't fit my game
2:26:39plan or I saw two, three trades that I
2:26:41thought were my play in my playbook or
2:26:43my strategy, but they weren't. So, today
2:26:46I need to double down on that more and
2:26:47be a little bit more aware. Or yesterday
2:26:49I slept at 6:00, I woke up at 8:00 and I
2:26:51didn't sleep and I Whatever the case is,
2:26:52I'm going to make sure I don't do that
2:26:53today.
2:26:54>> Mhm.
2:26:54>> Right? So, you start to go in with this
2:26:56like top of mind two, three things that
2:26:58you can control. What we can't control
2:27:00is we can't control the outcome of a
2:27:02trade. We can control risk and we can
2:27:04control how we enter a trade and you
2:27:05know, if you follow our rules. The
2:27:07things we can control, if we highlight
2:27:09that before going into every session and
2:27:11we let the outcome go, it's going to
2:27:12keep things more present for us.
2:27:14>> Yeah. I agree. Uh yeah, and then
2:27:16essentially just so you know, I ask
2:27:18myself from a one to five how I'm
2:27:19feeling. Like how's my energy and focus,
2:27:21right?
2:27:22Um and then just high-level what the
2:27:24market sentiment is, what what major
2:27:26news events are happening, right? Um
2:27:29then I just have some daily affirmations
2:27:31and I try to say them to myself.
2:27:32>> that's good. That's good. Yeah, yeah,
2:27:34that's good by the way.
2:27:34>> You know, so uh yeah, just try to
2:27:36reset myself, you know, before before I
2:27:38the market opens essentially.
2:27:41And then so this is basically where I
2:27:43took this trade. Um
2:27:45I had a 30-minute demand zone.
2:27:49>> Sure.
2:27:49>> Market opens, tanks.
2:27:51>> Sure.
2:27:51>> Uh pushed aggressively at the open. It's
2:27:54finding support at demand. Now I'm
2:27:57looking at the order flow.
2:27:59I'm trying to see what's happening.
2:28:01I see huge increase in delta,
2:28:05high volume,
2:28:06lots of buying.
2:28:09As like, you know,
2:28:10it dipped into it, but then like it kind
2:28:12of stalled and then I see aggressive
2:28:14[snorts] buyers coming in.
2:28:16Uh then I see
2:28:18aggressive sellers. I guess
2:28:20this is how I'm interpreting it.
2:28:22Aggressive sellers are trying to come
2:28:24back in at this pullback, but they can't
2:28:27and buyers are just, I guess,
2:28:30pushing through. Um
2:28:32and then I'm trying to wait for a price
2:28:34to pull back to one of my zones and it's
2:28:37just not it's just As soon as you start
2:28:38to
2:28:39>> you trying to Were you trying to go long
2:28:40here or what?
2:28:40>> trying to go long.
2:28:41>> Okay. What's the context of the market?
2:28:43Like why why did we sell off the first
2:28:45What's that? 5 minutes or 15?
2:28:47>> This is a 2-minute chart.
2:28:50>> Okay. So we open up 6 minutes in, we
2:28:52sell off and we recover.
2:28:54>> Yeah.
2:28:54>> What what was the overnight yesterday's
2:28:56any any context on this?
2:28:58>> Um I mean, so I guess
2:29:04I do have like the high-level market
2:29:05sentiment. So price was pulling back
2:29:08this week.
2:29:08>> What what trade versus what instrument?
2:29:09>> This is YM Dow. I know. It's It's an odd
2:29:12one. I haven't met anyone who trades YM,
2:29:15but I trade YM.
2:29:16>> [laughter]
2:29:17>> Uh so
2:29:18So it is So one thing is looking at the
2:29:21higher time frames, I saw the price was
2:29:23pulling back this week. It is at a major
2:29:26I guess support I meant to say support
2:29:28level from a month ago, right? On the
2:29:30daily. So it could find support from
2:29:32here.
2:29:33Uh so, that's so that's where my context
2:29:35was from the higher time frame level. Um
2:29:37but, I'm just trading intraday levels.
2:29:38You know, I don't like necessarily try
2:29:40to look back.
2:29:40>> So, there's like two ways to look at
2:29:41this, right? I mean, context is
2:29:43important, but also just because I see
2:29:44aggressive buying happening, doesn't
2:29:47always necessarily mean that the price
2:29:48is going to go up higher. Aggressive
2:29:50action or action has to be followed
2:29:52through with price. So, if I see a lot
2:29:55of like, let's say, positive delta at a
2:29:57at a low,
2:29:58I need price to follow through. Because
2:30:00if price doesn't follow through, what
2:30:01that's implying is someone is
2:30:03aggressively buying, but price isn't
2:30:05moving up. There's a lot of supply
2:30:07that's keeping it down. So, for me, that
2:30:09would maybe be a short. That's where the
2:30:11context of that session starts to
2:30:13matter. That's like the first thing, and
2:30:14then I go into the into the details. Cuz
2:30:16I I can interpret that in two different
2:30:18ways, right? But, then as I start to see
2:30:20that bottom starts to form and starts to
2:30:23hold, it's like, yeah, there's a lot of
2:30:24buying activity happening, but the
2:30:26action before that big move up is still
2:30:28holding flat. So, then it goes deeper
2:30:30into like, what would identify me going
2:30:32long here versus short? Cuz the flip
2:30:34side could be, hey, these are all orders
2:30:36going in, aggressive buying is
2:30:37happening, but supply is so much the
2:30:39price isn't moving.
2:30:41>> Okay.
2:30:41>> You see what I'm saying? So, you have
2:30:42But, that's why taking a step back, I
2:30:44was saying like, what what's the
2:30:45context? Like, what's happening? Is
2:30:47market selling off? What time period is
2:30:48it?
2:30:49Uh and then sometimes if I can't get the
2:30:51read there, I'll start looking for the
2:30:53move to start happening, price to
2:30:55follow, and look for entry a little bit
2:30:56later that gives me maybe a higher
2:30:57confirmation.
2:31:00>> All right.
2:31:01I know these are some low numbers you
2:31:02got to see in a while.
2:31:03>> Oh, you good, man. You good. You good.
2:31:05>> [laughter]
2:31:07>> Um so, I want to I want to kind of talk
2:31:09you through two trades that I took last
2:31:11week. One was on Thursday, one was on
2:31:12Friday. Um so, I'm a
2:31:15supply and demand trader, so key levels
2:31:18um and all the different things. And all
2:31:18these levels that you see right here,
2:31:20these are all off of the either daily or
2:31:224-hour, so longer time frames. Um my
2:31:25issue is I have no
2:31:27great process for confirmation of when
2:31:29price reaches those levels. So on Friday
2:31:32I think I got tricked out. One issue is
2:31:34you already talked about earlier in the
2:31:37session which is like stay off the one
2:31:38minute. So I'm just going to tell you
2:31:39through my thought process for this.
2:31:41So one of my biggest issues is I look
2:31:43for confirmation sometimes. What what
2:31:46what time is this by the way? Can't I
2:31:47can't
2:31:47>> This is the one minute.
2:31:48>> Yeah, I know but at what what time did
2:31:50you take the trade?
2:31:51>> Uh
2:31:519:30.
2:31:53>> Right on the open.
2:31:53>> Yeah.
2:31:54>> Mhm. Interesting.
2:31:55>> Three seconds until the open.
2:31:57>> Why?
2:31:58>> Uh I'm going to be honest, it was at one
2:32:01of my key levels and this was like a
2:32:02gamble trade. This is a very impulse
2:32:04This is an impulse trade immediately.
2:32:05Like as soon as it was at my level I'm
2:32:07like, "Okay,
2:32:08I think this thing is going to go long
2:32:09so I'm putting my stop here and we're
2:32:11riding this thing to the top."
2:32:13Very very impulsive, broke all rules, I
2:32:15took journals and everything notes
2:32:18and on it but
2:32:20yeah, that's the answer to that that
2:32:22question.
2:32:22>> There's something
2:32:23>> That's it. There ain't no ain't no ain't
2:32:24no if, ands, or buts around that one.
2:32:26>> Uh
2:32:27I mean I'm not I'm not a fan of trading
2:32:28on the open because
2:32:30the the US market or
2:32:32New York session opens at 9:30 but it
2:32:34doesn't always open at 9:30.
2:32:37Sometimes it opens at 9:37 and it opens
2:32:39up 6 7 8 minutes later and if you guys
2:32:41look at price action sometimes you'll
2:32:43see like
2:32:446 to 12 minutes sometimes like price
2:32:46will like open and it'll go high and
2:32:47then it'll start to sell off.
2:32:49>> Yeah.
2:32:49>> So the the concept behind that is before
2:32:51the market like we have a set time
2:32:53that's 9:30 a.m. and in those 7 8
2:32:56minutes it's all random. Just orders
2:32:58being filled, everything's just trying
2:32:59to get directional and then typically
2:33:02the day before the on pre-market the
2:33:05floor gets a large order sometimes that
2:33:07we need to offload 5 or 10 billion
2:33:10dollars of you know, these shares of
2:33:12this in the market. They can't do it
2:33:14right on the open. They have to wait a
2:33:15little bit 5 minutes, 6 minutes, 7
2:33:17minutes. So
2:33:18when the 5 6 7 minutes they open, that's
2:33:20when they technically open the market
2:33:22and open those orders and those orders
2:33:23start to fill.
2:33:25>> Yeah.
2:33:25>> Drives market up or down. Doesn't happen
2:33:27all the time, but you'll start to
2:33:28realize that. Same thing happens at
2:33:3010:00 a.m. So, if you guys look at 10:00
2:33:31a.m. outside of like market events,
2:33:33you'll see 10:00 a.m. and 10:30 a.m. are
2:33:35like the first two initial balances.
2:33:37That's why I say time is a very
2:33:38important concept in trading and for me
2:33:40I break 9:30 a.m. to 10:00 a.m. as one
2:33:43trading session, 10:00 to 10:30 a
2:33:44second.
2:33:45>> Okay.
2:33:46>> Whatever wherever price is until 10:30
2:33:48a.m. that's called initial balance,
2:33:50right? So, depending on where price is,
2:33:52where it traded the most volume,
2:33:54uh you start to establish those levels
2:33:56going into the next session or even for
2:33:58this session to identify will be go
2:33:59higher or lower. I'm not a fan of
2:34:01trading 30 seconds in.
2:34:02>> Yeah.
2:34:03>> Even if you made money or lost money,
2:34:04it's just
2:34:05there there's there's no read anyone can
2:34:07have.
2:34:08>> Yeah.
2:34:08>> You know, in my opinion.
2:34:10Um even if you're like, "I'm reading the
2:34:11tape." The tape the first 4 5 minutes is
2:34:13so fast that you humanly possibly cannot
2:34:15assess any sort of orders. So, it's just
2:34:17like
2:34:19you know, wait 7 8 9 10 minutes, at
2:34:21least something to get some direction.
2:34:23If you're like, "I'm going in going into
2:34:24this session to go long."
2:34:27Cool, but you need price to showcase
2:34:29something.
2:34:30>> Yeah. Okay. Yeah, no, that makes sense.
2:34:32I think uh one of my biggest issues that
2:34:34I struggled with for a long time is when
2:34:36price actually opens up at one of my key
2:34:39levels. That is my biggest issue from
2:34:41like from an impulse standpoint.
2:34:43>> if it opens up at your key level, how do
2:34:45you know it's going to go above or below
2:34:46your key level?
2:34:47>> Yeah.
2:34:48That's what I'm saying. I have
2:34:48>> So, so what you're essentially doing is
2:34:50it's at my key level.
2:34:51>> Yeah.
2:34:52>> I think it's going to go up, so I'm
2:34:53going to flip a coin and I'm going to go
2:34:54long.
2:34:54>> Yeah.
2:34:55>> Cuz my question in between that is what
2:34:57is the certainty or what is the
2:34:59confirmation that at your key level that
2:35:02this is going to go up or down?
2:35:03>> Yeah.
2:35:04>> Right? Like what's going to make price
2:35:05continue from here? What are you seeing?
2:35:08Right? And even if you take 10 or 20
2:35:10trades with no confirmation, you'll make
2:35:13money on some of them, you lose money on
2:35:14some of them.
2:35:14>> Yeah.
2:35:15>> You'll formulate stats, but they're not
2:35:17stats.
2:35:18>> Yeah.
2:35:18>> Because they don't have
2:35:19a real approach behind them. And that's
2:35:21what I was saying beforehand to
2:35:22everyone, like everything has to have a
2:35:23real approach. And if you have a real
2:35:25approach and real things that can back
2:35:27it up, then you have data to work with.
2:35:29If you take these trades and let's say
2:35:30you took every trade first 5 minutes,
2:35:32you'll say, "Oh, my win percentage is
2:35:3360%. My this is this." It sounds good.
2:35:35>> Yeah.
2:35:36>> But there's no real theory behind it.
2:35:39You know what I mean? 100%. So, one of
2:35:41my other questions is um
2:35:45on a different trade that I did take off
2:35:48the open, but I did I did wait for more
2:35:50confirmation. What time did you take
2:35:51this?
2:35:53Uh
2:35:549:34. So, 4 minutes in.
2:35:56You you are impulsive. I know. That's my
2:35:58issue. That's why I'm here. So,
2:36:02>> [laughter]
2:36:03>> all right. So, so like for example,
2:36:05right? For this trade here,
2:36:08um again, it came up, retested one of my
2:36:11levels.
2:36:12Um so, I'm watching how price is
2:36:14interacting in this space. I'm like,
2:36:15"Okay, we're you know, we're showing
2:36:17signs of weakness. I'm going to wait for
2:36:19a pullback." And the moment I receive a
2:36:21pullback on low volume, I enter.
2:36:25>> But what was your confirmation that it
2:36:26was going to go lower?
2:36:29Like if you can simplify why you thought
2:36:31in this exact situation it was going to
2:36:32go lower. And do not use that the candle
2:36:35wick at the top.
2:36:36>> Okay. This is forming a
2:36:37trend here, so this is a be a lower high
2:36:39and a lower
2:36:40>> But that's a 1-minute time frame.
2:36:41>> Yeah, on a 1-minute. Yeah.
2:36:42>> So, so what's your like what what's the
2:36:44reason behind this?
2:36:47>> There is no reason. There is no There is
2:36:48no process
2:36:49>> like see how for this I like let's just
2:36:51make up a reason, right? Like for
2:36:52example, price opens up first 4 minutes,
2:36:55price tries to hit what price is that? 6
2:36:57What's the red price? 6 what?
2:36:59>> Uh 18. 618.
2:37:00>> 618. It tries to hit 618.50. Every time
2:37:02it gets there, we start to see
2:37:03aggressive sellers come in and it keeps
2:37:05flooding the market. It keeps flooding
2:37:05the market. I know that there's a seller
2:37:07sitting there or participant sitting
2:37:09there.
2:37:10Uh that level is very important. That's
2:37:12a historical level from yesterday's, you
2:37:14know, uh opening range level, whatever
2:37:16the case is. So, we had activity, I can
2:37:17put a stop, I can take this trade. But,
2:37:19I had this thing that showcased that
2:37:21there's activity where sellers are in
2:37:23control. You're seeing it hit a level,
2:37:25and you're like, "Oh, because it hit a
2:37:26level,
2:37:28it's going to go down." Because I've
2:37:29seen these instances where it hits the
2:37:30level and picks right back up.
2:37:32>> Yeah.
2:37:33>> How do you decipher between the two?
2:37:34>> Yeah.
2:37:35>> And if you can't decipher decipher
2:37:36between the two, like if I show you a
2:37:37different chart, and I'm like,
2:37:40"What's the difference between this
2:37:41trade and that trade?" And you're able
2:37:43to contextually break it down, if you
2:37:45can't break that down, then you don't
2:37:47have an edge.
2:37:48>> Yeah.
2:37:48>> You have random stuff that you're
2:37:49trading, and sometimes it works, and
2:37:51that's the thing with trading, cuz
2:37:52sometimes it'll work.
2:37:53>> Yeah.
2:37:53>> Sometimes it won't work. And then you
2:37:55think you have something, and in
2:37:56reality, you don't.
2:37:57>> Yeah.
2:37:58>> Yeah.
2:37:58>> Yeah. Cuz I that's definitely I think
2:38:00that's definitely here. Like, I
2:38:01typically
2:38:02don't do any of my analysis, obviously,
2:38:05off the 1-minute. I use the higher time
2:38:06frames, and even the 5-minutes. Like, in
2:38:07a perfect world, my strategy is,
2:38:10you know, if it's um if this is going
2:38:12long, for example, I wait for a 5-minute
2:38:13close above, and then I switch to the
2:38:151-minute, and see how price comes back
2:38:18to that level, and then I get in.
2:38:20Um so, that's my typical rules and
2:38:22process, whether it's long or short. Um
2:38:24obviously, this doesn't tell that story,
2:38:26but even as I explain something like
2:38:28that, is that detailed enough, or is
2:38:29there more maybe comp- entry
2:38:31confirmations
2:38:32>> There's entry confirmations. Just cuz
2:38:34something hits a certain price point
2:38:35doesn't mean anything.
2:38:36>> Yeah.
2:38:37>> Right? Uh
2:38:38The idea is like, if you have that as a
2:38:39price level,
2:38:41you we want to see how it reacts,
2:38:43>> Yeah.
2:38:43>> right? And and how the order exch-
2:38:46orders exchange there. What's the
2:38:47activity like? Does activity like It's
2:38:49like a same thing with the ball analogy,
2:38:51right? If I drop a ball here, and it
2:38:52goes up, and it slows down, there's a
2:38:54high probability price will come down.
2:38:55So, it's like, let's say we relate that
2:38:57to the tape.
2:38:58Tape is accelerating accelerating, it
2:39:00goes here, tape slows down. Just one
2:39:01little concept of order flow, where you
2:39:03might say, "Oh, tape is slowing down."
2:39:05Orders and activity is not high here.
2:39:08Now, I want to see when it slows down,
2:39:09do we see another pick up? Maybe see
2:39:11another pick up? Maybe buyers do step up
2:39:12another pick up? Now, you might be more
2:39:14involved and more interested in that
2:39:16second move up. But, there needs to be
2:39:17something that identifies a deeper than
2:39:20just lines and levels, in my opinion.
2:39:23>> Yeah. Yeah. And is that 1 minute like I
2:39:25know I think you talked about someone
2:39:26earlier, you know, staying on a 2
2:39:27minute. Obviously, this is very like the
2:39:291 minute is is not for me. I know that
2:39:31after the session today.
2:39:33Uh so, I'm curious like it should I just
2:39:36stay on the 5 minute? Like what would be
2:39:37your recommendation
2:39:38>> Uh I would say five cuz it's like you
2:39:39took this trade, right? My other side is
2:39:41if you're so short on the short, you
2:39:42missed out on a bigger move.
2:39:44>> Yeah.
2:39:46>> You missed out on such a big move. Did
2:39:48you Did you hit your full take profit?
2:39:50>> So, that's another thing. I cut my
2:39:52>> So, you you just took a trade and it
2:39:53went green and you took it.
2:39:54>> And I took it. Yeah, I'm just Yeah, you
2:39:56transparently, that's exactly what
2:39:57happened. And I saw it was green and I
2:39:59took it out and I didn't even let it hit
2:40:00this. And like after my journal, I put
2:40:02like obviously like, "Bro, you're not
2:40:03trusting the process." Like that was my
2:40:05exact response.
2:40:06>> I think a lot of it just goes into the
2:40:08strategy part of you know, being able to
2:40:09really understand that you have a
2:40:11strategy. I think that should be
2:40:12everyone's main focus. I know people are
2:40:14jumping and like, you know, I want to
2:40:15make sure I can take profit and I can do
2:40:18this and they can do those things. I
2:40:19think first thing for everyone should
2:40:20be, do you have a proven strategy? Um
2:40:25and before we even get to strategy,
2:40:26let's go to approach. Like what is
2:40:27everyone's approach here? Like if
2:40:29someone's like, "Oh, I trade ICT." Cool,
2:40:31you trade ICT. Let's stick to that. You
2:40:33know, however that is. Is it proven? Did
2:40:34you back test it? Did you forward test
2:40:36it? You should also forward test every
2:40:38single thing you do
2:40:40uh with real capital, right? Obviously,
2:40:43once you get over the paper trading and
2:40:44familiar already with the with the
2:40:46platform. Uh forward test it, small
2:40:48contract, minimal risk, trade it live,
2:40:51see what happens, what doesn't happen to
2:40:53a point where your your emotions do not
2:40:55hijack
2:40:56your logical thinking. And if you trade
2:40:58one contract or you risk 40 bucks per
2:41:01trade or 20 bucks per trade, that
2:41:02shouldn't be the case. Uh I think in
2:41:04that period collect as much as data as
2:41:06you can on that strategy or strategies.
2:41:08I don't think you should jump to two or
2:41:09three more than two or three strategies
2:41:11max. Um
2:41:13you should break it down into two
2:41:15components. What one is um you know,
2:41:18being aggressive when and when to be
2:41:20aggressive and how to be aggressive and
2:41:22then second is when to play defense.
2:41:24Like what day should I not trade? What
2:41:25day should I trade? Uh what does a trend
2:41:27day look like? What does a non-trend day
2:41:29look like? And a lot of this you will
2:41:30learn after you have a session even if
2:41:33you don't trade and you write your notes
2:41:34down. You can have a session, you write
2:41:36your notes down like, "Hey, I thought
2:41:37today before the session open, I thought
2:41:39it was going to be a trend day because
2:41:40of this, but the market was flat. What
2:41:43the hell did I miss?" You might see
2:41:44something, you might not, but after some
2:41:46repetition of that over and over again,
2:41:47you'll build uh a good understanding of
2:41:50the market just through practice and
2:41:51just through applying everything
2:41:53throughout it all. Um I think that will
2:41:56typically take 3 months, maybe 4 months,
2:41:58maybe even less for some people. And the
2:42:00idea there once again is data collection
2:42:01and collect as much as data. I think
2:42:03once that's solved, then the focus comes
2:42:06into what are my problems? You know,
2:42:08what are my rules? Am I following my
2:42:10rules? Am I following my game plan? Uh
2:42:12am I following my strategy and like
2:42:15actually identifying that setup or am I
2:42:16making random setups?
2:42:18Um and then work on a week-to-week basis
2:42:20and in that week-to-week basis I would
2:42:22have a
2:42:23uh healthy feedback loop, right? You can
2:42:25go daily. I I think one of you guys had
2:42:27had in your game plans where before the
2:42:29session starts, you highlighted your
2:42:31main issues for yesterday's session so
2:42:33you can carry it over and like keep it
2:42:35top of mind. You should do the same
2:42:36thing for every week and every month and
2:42:38I think if you continue that and you
2:42:39work off that healthy feedback cycle
2:42:42without the idea of wanting to make
2:42:44money,
2:42:45in a year or two, I'd like extremely
2:42:48confident everyone would get to a point
2:42:50of consistent profitability and
2:42:52understanding of the markets. Yeah.
2:42:55Cool.
2:42:57Thank you.
2:42:58Thank [applause] you, everyone.
2:43:07>> Yeah, right before the mentorship, um I
2:43:10was actively day trading for a little
2:43:13over 3 years.
2:43:14Um and in the beginning, it was all just
2:43:16learning. Uh you know, uh just getting
2:43:18my feet wet. Uh just taking up as much
2:43:20knowledge as I could. Now, for this last
2:43:22whole year, uh I was at just over at a
2:43:25break-even stage, you know? Um I passed
2:43:28uh a couple of evaluations, uh but I was
2:43:30never able to get to that payout stage.
2:43:32Um and I just felt like I was just stuck
2:43:34here. And I needed that that next level,
2:43:36uh you know, to just start consistently
2:43:39getting payouts. Uh so,
2:43:41uh so, that's where I was right before
2:43:43uh the mentorship. So, one of the
2:43:44questions came up about overtrading and
2:43:46revenge trading.
2:43:47Um and I never had the problem where I
2:43:49was overtrading, you know, taking 10-15
2:43:51trades a day. Uh but I did have a
2:43:53problem, however, of forcing trades
2:43:55after sitting in front of the charts for
2:43:56like 30-45 minutes.
2:43:58Um just because like my, you know,
2:44:00logical faculty would start to drain.
2:44:03And um I would start seeing a setup
2:44:05which really isn't there, which really I
2:44:06shouldn't be taking, and I would force
2:44:07it, and I would blow out on those, you
2:44:09know? Um so, that's one of the questions
2:44:11that I posed to Omar, like, "How do I,
2:44:12you know, uh build this tolerance of
2:44:15sitting in front of the charts, not
2:44:16seeing a setup, and just, you know, not
2:44:18getting so drained?" Um and he
2:44:20essentially told me that I have to build
2:44:22that tolerance. I can't accept expect
2:44:24myself to just show up, you know, on day
2:44:26one and having the ability to sit, uh
2:44:29you know, taking all this data, manage
2:44:31my emotions, and be able to perform, you
2:44:33know? So, I need to build that up. I
2:44:35need to build that tolerance up. I need
2:44:36to take breaks if I have to uh
2:44:38throughout the day or even throughout
2:44:40the 1-hour session. That's one of the
2:44:42takeaways I had, and I just went home
2:44:44and I started just thinking like, "How
2:44:45can I start implementing this?" And a
2:44:48simple, easy idea that popped in my
2:44:50head, I went out Amazon and I got one of
2:44:53these timers, you know, and I would just
2:44:57set this up for every 15 minutes and it
2:44:59would just beep and knock me out of this
2:45:02trance that I fall into when I'm
2:45:03watching the charts, you know, and it
2:45:05would remind me like, okay, look, it's
2:45:07been 15 minutes now. I got to at least
2:45:09stand up or take a breath or lean back
2:45:11or do something to just check in with
2:45:12myself and then objectively look at the
2:45:14market as well like, look, is today
2:45:16turning out to be a day where I have to
2:45:17take a trade or not, you know? And then
2:45:19every 15 minutes this would
2:45:21go off and then after an hour I'm just
2:45:22done. I'm shutting off the computer. I'm
2:45:24off, you know, and just this fix of just
2:45:26bringing self-awareness really helped me
2:45:29out and it really helped me avoid
2:45:32forcing those trades on those bad market
2:45:33conditions and it helped me, you know,
2:45:36secure,
2:45:37you know,
2:45:39profitable days
2:45:41where the market conditions was working
2:45:42out.
2:45:43So that's one one huge takeaway it just
2:45:45helped me, you know,
2:45:47put that fix into that issue. And you
2:45:50know, Omar was essentially
2:45:53speaking about how you have to compare
2:45:56trading to an athlete, you know, like
2:45:58how you're training and how you're
2:46:00preparing, you know, athletes spend
2:46:02years to be able to perform under
2:46:04pressure
2:46:05and that's how traders need to also
2:46:10you know,
2:46:12basically build up those muscles, those
2:46:15mental muscles that you need to be able
2:46:17to sit in front of the charts and be
2:46:18able to perform, you know, managing your
2:46:19emotions,
2:46:21managing drawdown, managing loss, you
2:46:22know, so you have to think of it like an
2:46:24athlete and really train yourself, train
2:46:27your
2:46:28mentally, emotionally,
2:46:30you know, so that that really that
2:46:31analogy really helped, you know, put it
2:46:34together and cuz I watch sports, you
2:46:36know, and I and I follow athletes. So so
2:46:38that reference really kind of helped put
2:46:39things in perspective. So you know,
2:46:41after the mentorship I came home, I
2:46:43implemented all these fixes. There was
2:46:45another thing that uh, had mentioned,
2:46:48um, was when we were reviewing our Faith
2:46:49Zella, he really liked the way I was
2:46:51doing my pre-market journaling, and it
2:46:54was, uh, more of asking questions, uh,
2:46:56of how I'm feeling and what is my goal
2:46:59for today. Um, now, journaling is not
2:47:01just about, you know,
2:47:03tracking your entry, your exits, and and
2:47:05all the technicals, right? Journaling,
2:47:07you really need to do a deep dive of
2:47:08journaling of how you're feeling, uh,
2:47:10what, you know, your daily goals are.
2:47:12Um, so, he he liked the way I was doing
2:47:14my pre-market journaling. Um, so, I
2:47:16doubled down on that. I started, uh,
2:47:18journaling, uh, at the end of the day,
2:47:20uh, how, uh, what were my biggest
2:47:23mistakes, what were my biggest wins, uh,
2:47:25what were my best decisions,
2:47:27um, and then the next day I would start
2:47:29with what was that one weakness that
2:47:31was, uh, that was one what was the one
2:47:33weakness yesterday that is today's goal
2:47:35to improve. Um, so, that was another
2:47:37just takeaway that I had, um, that
2:47:38really helped me, uh, just become be
2:47:40more aware of my trading. And, uh, so,
2:47:43since implementing that, uh, you know, I
2:47:46was still taking prop firm challenges,
2:47:48uh, but
2:47:50really grateful, uh, the first week of
2:47:52January, I was just, you know, locked
2:47:54in. The price action was good the first
2:47:56week of January, and,
2:47:58uh, I just had winners back-to-back,
2:47:59and, uh, you know, I was able to secure
2:48:01a payout. I got past the evaluation and
2:48:04got a payout, um, and now I'm still
2:48:06running that same funded account. Uh,
2:48:08it's right going on week three. So, you
2:48:10know, next week, um, if, you know, I I
2:48:12obviously I'm planning on staying locked
2:48:13in. Um, that's going to be the longest
2:48:15I've held a funded account as well. So,
2:48:17couple of milestones, right? I was able
2:48:18to get a payout and I'm able to hold,
2:48:20uh, this funded account for longer than
2:48:22any time I've had in the past.
2:48:24My number one advice would be to just
2:48:27never quit. Look, if you have this
2:48:29vision of, uh, becoming a consistently
2:48:32profitable trader, if that's the career
2:48:34path that you see yourself doing for the
2:48:36rest of your life, cuz that's what it
2:48:37is. This is a journey for life. You're
2:48:39never going to leave the markets, you
2:48:40know? Uh, so, just don't quit. You just
2:48:42keep trying. Keep knocking doors. You
2:48:45know, I did not expect you know to be
2:48:47selected out of 500 applications, but
2:48:49you know what? I gave it my best chance,
2:48:51right?
2:48:52So, that's that's what I would say. Just
2:48:54keep trying. Keep knocking doors.
2:48:56Keep self-improving, you know, on and
2:48:59off the charts. And just see those you
2:49:02know micro changes that you make can
2:49:04really end up
2:49:07compounding over time.
2:49:08>> Well, there you have it, guys. I want to
2:49:09say a massive thank you to everyone for
2:49:11being part of this video from of course
2:49:13Umar Ashraf sitting down and willing to
2:49:15provide feedback and all the traders who
2:49:18took part and being so open and
2:49:20vulnerable with with their position
2:49:22currently as traders. And as you've
2:49:24seen, so many have progressed along the
2:49:27way taking action within their own
2:49:29trading journey and taking
2:49:31accountability most of all. Now, if you
2:49:33enjoyed this, make sure you hit like. Of
2:49:35course, make sure you comment your
2:49:36biggest takeaway from this episode.
2:49:38Maybe some improvements or even maybe
2:49:40people you want to see in the middle in
2:49:42the hot seat next. Now, if you want to
2:49:44partake in one of these sort of shoots
2:49:47in the future, there will be a form in
2:49:49the description below. So, make sure you
2:49:50click that and fill it out in detail.
2:49:52That's exactly how all the participants
2:49:55got chosen for this very shoot.
2:49:57Now, of course, links are in the
2:50:00description below for Umar Ashraf. And
2:50:03of course, other episodes are on screen
2:50:05right now. And until next time, take
2:50:07care.

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