YT YouTube2Text

YouTube2Text → Transcripts → 9 Years of Trading Psychology in 37 Minutes

9 Years of Trading Psychology in 37 Minutes — Transcript

by TJR · 6,628 words · 1,018 segments · language en · Watch on YouTube

Open in transcriber Summarize with AI Download SRT/VTT

Full transcript

0:00These 10 trading psychology lessons
0:02helped change my trading forever and
0:04help me turn into a profitable trader. I
0:05actually studied all of these lessons
0:08and have some of them written down in
0:10this notebook back when I was an
0:11unprofitable trader and by reading these
0:13things every single day and by
0:14remembering them and by reinforcing it
0:17into my brain, it helped me actually
0:18turn profitable and it helped build up
0:21my trading psychology so that I would
0:23not get fearful in the markets, I would
0:25not get greedy in the market and I would
0:26keep myself disciplined and stay away
0:29from making just stupid mistakes. So,
0:31I'm going to go over these one by one so
0:33hopefully they can help you guys out
0:34with your own trading. This is stemming
0:36a little bit from the book Trading in
0:37the Zone by Mark Douglas. This book, if
0:40you guys haven't read it, I highly
0:41recommend you guys read it. It is by far
0:43one of the best trading books of all
0:45time talking about psychology. But, if
0:47you guys don't want to spend a whole
0:49bunch of time reading that book, you
0:50guys can just watch this video over the
0:51next 20-30 minutes and I'll give you
0:53guys pretty much everything you need to
0:55know. So, with that being said, let's
0:57get into it. Number one,
1:00within trading, anything can happen.
1:03There are no setups that guarantee a
1:06win. There's no such thing as a strategy
1:08that gives you a 100% win rate. There is
1:10no such thing as an edge that guarantees
1:13that you are going to win every single
1:15trade when you are placing it using that
1:18strategy.
1:19Every single trade is just one outcome
1:22on a long series of probabilities. Now,
1:26what does this mean? I feel like a lot
1:28of people, especially myself when I was
1:30first getting into trading, was I would
1:31watch all of these YouTubers and they
1:34would say, "Oh, this strategy is like
1:36the next big thing, right?" So, I'd
1:38watch it and I would write down all the
1:40rules, every single one of them, and
1:42then I would go and apply it in my
1:44trading. And maybe the first one or two
1:46trades, they would smack and I would hit
1:48take profit and I would be like, "Boom,
1:49this is the holy grail. This strategy is
1:52going to turn me profitable and I'm
1:55going to be the best trader of all
1:56time." And then I would lose a trade.
1:59And then I would think maybe I'm using
2:00the strategy wrong. Maybe I marked
2:02something out incorrectly. And then I
2:03would take another trade and I would
2:05lose that one as well. And then I would
2:07start spiraling and I would say, "Okay,
2:09no. This strategy just sucks. That guy's
2:11a freaking scammer and I shouldn't have
2:13listened to him in the first place and
2:14I'm going to find a different strategy."
2:15And I would rotate over and over and
2:18over again from strategy to strategy,
2:21from mentor to mentor, watching YouTube
2:23video after YouTube video because I
2:26didn't understand this one exact
2:28concept. No strategy is going to give
2:31you a 100% win rate. Instead, you need
2:34to expand
2:37what you guys think your strategy should
2:38give you over a long period of time. So,
2:42if we know that strategies are not
2:44supposed to give us a 100% win rate, but
2:46instead are supposed to just give us a
2:49higher probability of being right than
2:52being wrong, then that lets us be open
2:55to losses. Now, we can accept losses
2:58within our strategies and I feel like
2:59it's like a such a massive thing with
3:01beginner traders when they're first
3:03getting into trading, they'll look up
3:05online like best strategy in the world
3:06and then they'll trade it and then the
3:08second that they lose that first trade,
3:09they're like, "Oh, it doesn't work.
3:11Look, I followed all of the steps
3:12perfectly and I still lost. So, this guy
3:16must be lying to me and this strategy
3:18[ __ ] sucks." But, they don't
3:19understand the fact that strategies do
3:22not guarantee a 100% win rate. If it
3:25were as simple as writing down a
3:27strategy, setting up, okay, liquidity
3:29sweep, break of structure, fair value
3:30gap, break of structure, and then boom,
3:32target other draws on liquidity and then
3:34awesome. That gives you a 100% win rate
3:36every single time. If it was as easy as
3:38that, then everybody would be rich. But,
3:41the reason why the vast majority of
3:42people don't get rich from trading is
3:45because in their heads, they are
3:47thinking to themselves,
3:49"Oh, I just lost a trade using the
3:51strategy. This one sucks. And then they
3:53end up resetting their entire
3:55probability scale and jumping over to
3:57another strategy. Then they get on to
3:59that strategy. They win four or five
4:02trades in a row and they say, "Yep, this
4:03guy's the goat." And then they lose two
4:05trades. And then they say, "Wait, am I
4:07doing something wrong? No, I followed
4:09the strategy perfectly to a T, but I
4:11just lost these two trades. So, this
4:14strategy must suck and this must not be
4:16working for me."
4:18But at the end of the day, they just won
4:19four trades and then only lost two.
4:21They're up two R, if not even more.
4:24And that's what beginner traders do not
4:25understand about trading is that losses
4:27are inevitable. You have to accept
4:29losses. So,
4:32something that you guys need to accept
4:34is that one, anything can happen and no
4:38strategy is going to guarantee that you
4:40win.
4:41So, again, you guys see trading mentors
4:44like myself. I'll get on stream every
4:46single morning. I'll follow my strategy
4:48to a T. Do I win more often than I lose?
4:51Yes. Are my wins bigger than my losers?
4:54Yes.
4:55But do I win every single day that I
4:58take a trade? No.
5:00Why? Because my strategy does not
5:02guarantee a 100% win rate. And anybody
5:04that tells you that is a [ __ ] liar.
5:07Anybody that tells you that their
5:08strategy can guarantee you a 100% win
5:10rate is a [ __ ] liar. And if they did
5:12have a 100% win rate, then they would be
5:15doubling and tripling their money every
5:16single time because they should just put
5:17their entire trading account on that one
5:20trade setup every single time it
5:21presents itself. They would be the
5:23richest person on earth, but they're not
5:25for a reason.
5:26So, what is our strategy? Our strategy
5:29is exactly what I explained before.
5:32It is our edge that is probability
5:35within the market. Okay? Our strategy
5:39gives us a higher probability of being
5:42right than being wrong. A higher
5:44probability of winning rather than
5:47losing. And when we win, we are making
5:51more than when we lose.
5:54That is what our strategy gives us.
5:57And I'm going to touch on this a little
5:58bit more, but moving on to number two.
6:01This is touching on what we talked about
6:03with number one. You guys need to think
6:05in probabilities, not in certainties.
6:08So, professional traders and profitable
6:10traders, they don't try and predict
6:12every single move that the market is
6:14making.
6:15They execute on their strategy
6:18consistently and then let the statistics
6:21and probabilities play out over many
6:23trades.
6:25So, more often than not, profitable
6:27traders, they're not getting into the
6:28market and looking saying, "How can I
6:31predict every single move that the
6:33market's going to make?" No, what are
6:34they waiting for? They're waiting for
6:36their strategy that gives them a
6:38probability in the market to present
6:40itself. Why? Because they know that if
6:42they wait for those rules to set up,
6:45then they are going to have a higher
6:46chance of winning. And if they win,
6:48their winners are going to be bigger
6:50than their losers. And over a long
6:52period and a long series of
6:54probabilities, aka trades, they are
6:57going to be profitable.
6:59So, you guys need to start thinking in
7:01probabilities, not in certainties. So,
7:03when you place a trade using your
7:04strategy, you should no longer be
7:06thinking, "This is guaranteed to be a
7:08win because hey, look, I followed every
7:10single rule correctly using this
7:12strategy, so this has to be a win."
7:15And instead, you need to think, "Okay,
7:18did I follow every single step
7:19correctly?" The answer is yes, awesome.
7:23Then I've just enabled my probability
7:25within the market. And whether I win or
7:27whether I lose, it doesn't matter
7:30because as long as I know that the
7:31strategy gives me a higher probability
7:34of winning than losing and a higher
7:36probability of having my winners be
7:38bigger than my losers, then I I over a
7:40long series of trades, I will be a
7:43profitable trader. Number three, you
7:45have to accept the risk that you guys
7:48are taking before entering the trade.
7:51>> [snorts]
7:51>> You should already be mentally and
7:53financially comfortable with the maximum
7:56loss of the trade.
7:58And once you've accepted this, you are
8:01going to be much less likely to panic or
8:03interfere with the trade once you take
8:06it.
8:07I think this applies to almost every
8:09single one of you because this might be
8:12your guys' most difficult thing to get
8:14over.
8:15Okay?
8:17Almost every single unprofitable trader
8:21never mentally and financially prepares
8:25themselves for the risk that they are
8:27about to take in the markets. And you're
8:30probably saying, "Well, what if I'm
8:32trading on a funded account?" Well, I'll
8:34get there.
8:35If you guys are trading on a live
8:36account and let's say you want to risk
8:38200 bucks on a trade, you have to
8:41imagine as if that $200 is completely
8:44gone, has completely vanished.
8:47And the second that you fully process,
8:49"Okay, that is completely gone." and
8:51you've mentally prepared yourself for
8:53that loss, then when the loss comes,
8:56you're no longer going to be sad about
8:57it. Why? Because you prepared yourself
8:59ahead of time for that loss to happen.
9:02Now,
9:03if you're trading on a funded account,
9:06this is where a lot of you guys go wrong
9:08because a lot of you guys are trading on
9:09these funded accounts. And on these
9:11funded accounts, you guys never process
9:15the loss that you guys could take.
9:17Never. You guys never do because you
9:19guys are just looking at the trades that
9:21you're taking, but those trades that you
9:23guys are taking, those are not on a live
9:25account. That's not your money at risk.
9:27That's simulated funds given to you guys
9:30by the prop firm, by the company. So,
9:32what money, what dollar amount is
9:34actually at risk? It's the money that
9:36you paid for the evaluation challenge.
9:38It's the money that you put up to
9:40potentially get to the funded account
9:43stage to potentially get a payout. And
9:45that's the problem with almost every
9:47single one of you guys that is trading
9:49on a funded account right now.
9:51You guys are spending 50 to 150 to $200
9:55on these funded account challenges and
9:57you're not even thinking that that money
10:00could potentially be gone until it's
10:02actually gone. And then what happens?
10:04You end up spiraling. You pay for
10:06resets. You buy more accounts. And then
10:09you end up blowing those new accounts
10:11that you just bought. Why? Because your
10:12psychology is out of whack. And then you
10:14start revenge trading. And then you
10:15start taking trades that don't follow
10:16your strategy that are supposed to give
10:18you a probability in the market. Notice
10:21how this is just spiraling out of
10:23control. So, what you guys need to do if
10:25you guys are trading on prop firms, that
10:2750 $100, $150, $200 that you guys are
10:31putting up for the prop firm challenge,
10:33for the evaluation challenge, you guys
10:36need to be thinking in your head,
10:39"Am I willing and am I mentally and
10:42financially preparing myself to lose
10:45this money?" Because every single one of
10:47you guys is not thinking about, "Hey, I
10:50could lose this 100 bucks right now."
10:52You're thinking, "Oh man, if I just get
10:55this $1,000 payout, oh my gosh, I'm
10:58going to be so up." Or, "Oh my goodness,
10:59if I get max allocation on this and then
11:01I get payouts across all five accounts,
11:04I'll be able to make 20 bands."
11:06And yeah, that's great to think about,
11:08but you guys are just thinking about the
11:10max win and not thinking about what you
11:12guys could potentially lose.
11:15And I'm not telling you guys to focus
11:16on, "Oh yeah, have like that Debbie
11:18Downer mindset of like, yeah, this is
11:20definitely going to just get blown."
11:23But you guys need to prepare yourself
11:25for that account to get blown for two
11:28reasons.
11:29One, because some of you guys just are
11:32not in the financial position to be
11:34buying these funded accounts right now
11:35and maybe going through that thought
11:37process of okay,
11:39you know, like what would happen if I'm
11:41not able to lose this 100 bucks right
11:42now cuz you're just thinking on the
11:44payout. Okay, yeah, the payout would be
11:46great, but you need to go through steps
11:48to be able to get there. So, what
11:49happens if you lose? Are you
11:50comfortable? Are you financially stable
11:52enough to lose that money? If the answer
11:54is no, then you should not be buying
11:56that funded account.
11:58And then number two, you guys if you
12:01mentally say okay, yeah, I am
12:03financially stable enough
12:06to buy this funded account, are you
12:07comfortable
12:09with losing that amount?
12:12Because what happens if you blow the
12:13eval and you haven't prepared yourself
12:16for that, you're going to start
12:17spiraling and you're going to say, "Oh,
12:20no, I shouldn't have freaking lost. I
12:22shouldn't have lost to the market today.
12:23That It's not my fault. It's the
12:24market's fault. I need to reset my
12:26account right now. I need to buy some
12:28more accounts right now and I need to
12:30take this trade because I know it's
12:31going to go in my direction."
12:33And then instead of losing 100 bucks,
12:35you end up losing 200 bucks. You end up
12:37losing 300 bucks. You end up putting
12:39yourself into credit card debt. You end
12:41up digging yourself a deeper hole all
12:44because you haven't mentally prepared
12:46yourself for the financial risk that you
12:48guys are going to take. So, if you guys
12:50are trading on a live account, you have
12:52to fully mentally
12:55prepare yourself
12:57that as if the risk that you take that
13:01money is just gone.
13:03Same thing with an evaluation. Same
13:06thing with a funded account. The money
13:08that you were putting up for that eval
13:10challenge, you have to assume that it's
13:11long gone.
13:13Because if you do lose it, then at least
13:16you've already prepared yourself
13:18mentally for that loss and you say, "You
13:20know what? That was a risk that I was
13:23willing and financially able to make cuz
13:26I saw what the reward could potentially
13:27have done for me.
13:30And it's the same thing with live
13:31accounts.
13:33If you guys are saying, "I'm willing and
13:35able to risk $200 on this trade to
13:38potentially get a payout of 250
13:42or 300 or $400,
13:47but you are accepting the risk,
13:50and then you end up losing,
13:52no harm, no foul. But that is how you
13:55guys have to be approaching the market.
13:57You have to accept the risk before
13:59entering. If you don't, then, bro,
14:02you're going to be lost, and it you're
14:04going to be a lost cause. It's going to
14:05be cooked for you. It's going to be
14:07very, very, very, very, very insanely
14:11difficult for you to ever become a
14:13profitable trader.
14:15Because for as long as long as the time
14:18goes on with you not accepting the risk
14:21that you guys are taking within the
14:22markets,
14:23every single time that you guys lose,
14:26it's going to cause bad actions to come
14:27from that. Number four, you guys have to
14:30detach your self-worth
14:33from individual trades within the
14:36market. Okay?
14:38Does one losing trade mean that you are
14:41a bad trader?
14:43The answer is no.
14:45Your entire trading identity should
14:48never be tied to a singular outcome.
14:52>> [clears throat]
14:52>> Okay? We need to fully detach ourselves
14:55from individual outcomes. What a lot of
14:57people do is,
15:00you know, they will say, like, "Oh,
15:02yeah, like, I'm so good at trading." And
15:04then, boom, they end up losing a trade,
15:07and then it just puts them down in the
15:09dumps.
15:10But over the past month, they were
15:12profitable.
15:13And it's like, "Bro, you lost a singular
15:15trade, and the past five trades you've
15:17been green."
15:18And people nowadays, especially
15:21unprofitable traders, they put so much
15:22focus on today's outcome.
15:25When if you guys were to just zoom out
15:28on your entire lifespan of trading, you
15:31could see that, you know, when you first
15:32started trading, sure, you probably
15:34[ __ ] sucked.
15:36But if you look back a year from now,
15:38how was that person at trading? Are you
15:40a whole lot better now? If the answer is
15:42yes, then you're making progress, and
15:44that's all that matters. You guys need
15:46to fully detach yourself from the
15:47individual outcomes of trades and
15:49saying, "Oh, yeah, like if this trade
15:51doesn't hit, then I [ __ ] suck, or
15:52then this strategy sucks."
15:54And again, this happens all the time
15:56with funded accounts, because you guys
15:57might lose one trade in the eval's not
15:59blown yet, so you don't care about that
16:01loss, and you're like, "Yeah, I knew
16:02it's okay, losses are a part of the
16:04game."
16:05But that one trade that ends up blowing
16:08the funded,
16:09that is what is the dagger to the heart
16:12for the majority of you guys.
16:14And then you start questioning your
16:16strategy, you start questioning
16:17yourself, you start losing confidence in
16:19your strategy, you start losing
16:20confidence in yourself.
16:22And then let's say you end up buying
16:24another funded account, and you have
16:27good psychology, say, "Man, that [ __ ]
16:29sucks, right? It sucks." And then the
16:31next day happens, and because you use
16:35that strategy that stabbed you in your
16:36[ __ ] heart, but it was only one loss
16:38that caused you to blow that eval,
16:41the strategy presents itself again
16:43tomorrow.
16:44But because you have that lingering in
16:46the back of your brain, because you were
16:47so attached to that individual outcome
16:49of that singular loss from that trade
16:51that you took,
16:53you say, "Ah, no, I don't know, this
16:55looks a little bit scary to me, I don't
16:56want to take it." And then you don't
16:57take it.
16:59Guess what you just missed out on? You
17:00missed out on the potential to be able
17:03to grab some of the probability that
17:05that strategy gives you within the
17:06market. So guess what, that trade fully
17:09could have the capability of moving to
17:12full take profits.
17:14And by you not having the confidence in
17:16your strategy, in yourself, all because
17:18of that individual outcome that you tied
17:20yourself so closely to because it caused
17:22you to blow your eval.
17:24That is actually harming you in the
17:26future now. All of this stuff is very
17:28important.
17:30Just like let's say me for example,
17:32okay? The last trade that I took, I lost
17:35$135,000,
17:37which most of you guys can't even
17:39comprehend that dollar amount.
17:42It's a massive amount of money.
17:45That is what most successful people's
17:48yearly salary is over 12 months of
17:51working, and I lost that in a singular
17:54day of trading.
17:57Now, if I were to have attached myself
18:01to that outcome of that trade,
18:04and I said, "This trade determines
18:06whether or not I'm a good trader, or
18:09this trade determines whether or not my
18:11strategy works." How do you think I'm
18:13going to come out trading this next
18:16week?
18:17If I attach myself to that outcome of
18:20that one trade that I lost,
18:23guess how I'm going to be feeling. I'm
18:24going to have no self-confidence, I'm
18:27going to not trust my strategy, and I'm
18:29just going to be thinking, "Dude, I
18:31don't want to take any trades using the
18:32strategy. I'm going to look for another
18:34one."
18:35But then if I zoom out on my entire
18:37career as a trader,
18:39I know that this strategy is the thing
18:41that has given me probability in the
18:42market, that has helped me make all of
18:45this money for so long.
18:48And that one trade does not define me as
18:50a trader. It's all of the trades that
18:53I've taken over the entire period of my
18:54entire life that define me as a trader.
18:58And I know that over my entire timeline
19:01of life,
19:03I am net positive as a day trader,
19:06specifically net positive when I'm using
19:08this specific strategy that I'm using.
19:12So in turn, by detaching myself from
19:15that individual outcome of that singular
19:16trade and just instead attaching myself
19:19to the overall probabilities that the
19:21strategy gives me, I can look at it and
19:23say to myself, "Oh my goodness.
19:26This is amazing." Why? Because I know
19:28that I have probability in the market.
19:29So, I am going to try and take those
19:31trades every single time that the
19:33strategy presents itself.
19:35Let's think about LeBron James really
19:36quick. I know that's a like little bit
19:38of a weird transition, but if LeBron
19:40James is playing in a basketball game,
19:42he misses one jump shot. Does he tell
19:44himself that he's the worst basketball
19:45player of all time because he missed
19:46that shot? No.
19:48He'll probably come down the court and
19:50he'll take another shot with full
19:51confidence. And if he misses that one,
19:54does he hesitate on the very next one
19:56that he's taking? No, because he's the
19:57greatest basketball player of all time.
19:59Because over a long period of time, his
20:02career speaks for himself. So, he knows
20:05for a fact that, "Hey,
20:08when I have an open shot, I'm going to
20:09take it." Why? Because probabilities are
20:11favoring him.
20:13Because the probability of his entire
20:15career says that those shots are going
20:16to go in more often than not.
20:19We need to compare this to our
20:21strategies.
20:22Our strategies
20:24make us win more often than we lose, and
20:26when we win, we make more than when we
20:28lose.
20:30And as long as we know those stats, and
20:32you're probably saying, "Well, how do
20:33you get those stats?" Through back
20:35testing. Get a trading journal. Sign up
20:37to TradeZella. Okay?
20:39Connect your brokerage to it.
20:42Find your exact stats when you are
20:44trading, and as long as you have those
20:45probabilities on your side, then you
20:47should have full confidence in taking
20:48every single one of those trades.
20:50Specifically, if you have back tested
20:53your strategy to an absolute T, and you
20:54know for a fact that it gives you
20:56probability within the market. Number
20:57five, consistency comes from your
21:01mindset, but not your strategy. Okay? If
21:06consistency within the market came from
21:08strategy, then every single person in
21:12the world would have had a chance to
21:15become a profitable trader.
21:17But, as we know, 98% of traders fail.
21:21Why? Is it because they didn't have a
21:23strategy that worked? The answer is no.
21:28It's because their brain was all [ __ ]
21:31up. It's because their mental was [ __ ]
21:33up because they didn't understand these
21:34key concepts.
21:36Okay?
21:38There are
21:40hundreds, if not thousands, of
21:43profitable traders that are on YouTube
21:47that have given you guys their
21:49strategies for free.
21:52And these people are people that are
21:54consistently taking money from the
21:57market and being profitable traders and
22:00having probability in the market.
22:03So, what makes them profitable and you
22:07guys not?
22:12It's everything up here.
22:15You guys
22:17see the strategy present itself and you
22:20guys don't pull the trigger because the
22:21last trade was a loss. You guys see the
22:23strategy present itself and you don't
22:26pull the trigger because you just blew
22:29your eval. You guys see your strategy
22:32present yourself and you take the trade
22:34and it ends up being a loss and then you
22:36call that person a scammer and say that
22:38his strategy doesn't work, but that was
22:40one singular trade.
22:43>> [snorts]
22:43>> Consistency
22:45with one strategy that you know for a
22:47fact gives you probability within the
22:49market is going to create consistency
22:53within your probabilities of being a
22:55profitable trader. Discipline to one
22:58singular strategy and one singular edge
23:01that gives you probabilities within the
23:03market creates consistency of
23:06probabilities of a profitable trader.
23:09So, [snorts] if I have a strategy
23:12that I know for a fact gives me a 70%
23:14win rate and a 1:1.5
23:18risk-to-reward ratio every single time I
23:20take those trades, then as long as I
23:23take that strategy word for word, bar
23:25for bar, step by step every single time,
23:27I know for an absolute fact that those
23:30probabilities are going to play out over
23:32a long period of time and I will be net
23:34positive from the market.
23:36It's just cold, hard, [ __ ] facts.
23:38It's The math does not lie.
23:41If you have a strategy that gives you
23:43probability in the market that makes you
23:44win more than you lose, and your winners
23:47add up to more than your losers,
23:50then it is impossible
23:53for you to lose money within the
23:54markets.
23:55Over a long period of time, it is
23:58impossible.
24:01Okay? So, you guys need to build
24:03consistency within your mindset to be
24:05able to consistently take those trades.
24:07You need to build consistency within
24:09your brain to be able to take those
24:11trades. Number six, the market owes you
24:14absolutely nothing.
24:17The market is not personal. The market
24:19doesn't even know you exist, and it
24:22doesn't reward you, and it does not
24:24punish you. The market is not out to get
24:27you. The market is not trading bad. The
24:30market is not this big, bad monster that
24:33wants to see you lose all the time. You
24:35just suck at trading.
24:39And this is going to be difficult pill
24:41for you guys to swallow.
24:43The market owes you absolutely nothing.
24:46The market is a non-emotional
24:50random-ass entity, being, thing that we
24:54have no control over. What do we have
24:57control over? Our own actions.
25:01Okay?
25:02If we sit here and say the market is the
25:06reason why I lost that trade, then you
25:08will forever be a victim to the market
25:10and you will never be able to become a
25:12profitable trader. If you say the market
25:14is the reason why I was not able to win
25:16that trade today, then you will forever
25:18be an unprofitable trader. Just like
25:20I'll relate this to myself. Back when I
25:22was dealing with mental health issues,
25:25I said to myself, "I'm depressed because
25:29of my parents."
25:32Do I have any control over my parents?
25:33No.
25:34So, I gave all of the power of my poor
25:38mental health
25:40in their hands.
25:43So, me being depressed was completely
25:46determined
25:48by them.
25:49And the crazy thing about it was that I
25:51didn't even have the answer for what
25:53they could do correctly to make me
25:54happy.
25:55>> [clears throat]
25:57>> I'll give you guys an easier example. If
25:59I say I'm depressed because Donald Trump
26:01is president, well, guess what? As long
26:04as he stays president, I will forever be
26:06depressed.
26:08And there's nothing that I can do about
26:10it. Why? Because I have no control over
26:12him. I can't force him to drop out of
26:13office. I can't force him to be taken
26:15out. I have no control over that. So,
26:17I'm going to have to wait a full 2 years
26:19in order for me to potentially be happy
26:21again. Do I want that to happen?
26:24Or should I say to myself, "Maybe I'm
26:26the reason why I'm depressed.
26:28Maybe I'm the reason why I lost those
26:30trades."
26:32And it's a very difficult pill to
26:34swallow, but instead of saying the
26:35market is why I lost those trades or
26:38because Trump tweeted is because I lost
26:41those trades. Sure, that might have been
26:42a catalyst for the loss that you took,
26:46but who was the one that pressed the buy
26:47button? Who was the one that set the
26:49stop loss? Who was the one that set the
26:51take profit? And who was the one that
26:54got their account balance at a negative
26:57for the day? You did. And the second
27:00that you can start taking full
27:01responsibility for every single thing
27:03that has ever happened to you, not only
27:05in trading, but in your own life, is the
27:07second that you get full control over
27:09your own future.
27:12And that is just the cold hard truth. If
27:14you say, "I'm not successful because I
27:16was born in this shitty place," then
27:17guess what? You're forever never going
27:20to be successful because guess what? You
27:22can't change the place that you were
27:23born. If you say, "I'm not successful
27:25because my parents didn't give me a
27:27hundred million dollars by the time I
27:29turned 18," then guess what? You're
27:31never going to be successful.
27:33But instead, if you say, "Every single
27:35action that I have taken since birth has
27:37led me to this position, and I'm the
27:39reason why I'm a [ __ ] up, and I'm the
27:41reason why my life [ __ ] sucks," then
27:44yeah, it's pretty sad to think about
27:46that, but it also then gives you full
27:49control to be able to change your life.
27:51Because now it's not where I was born is
27:54why I'm not rich, or my parents are why
27:57I'm not rich. Instead, it's I'm why I'm
28:00not [clears throat] rich, but guess
28:01what? You can change that. You now have
28:04full control.
28:06And it's the same thing within the
28:07markets. If you forever blame the
28:09markets, if you forever blame your
28:11strategy for why you are not profitable,
28:14or if forever blame, "Oh, price action
28:16was bad." Every single month, bro, I see
28:18people complaining on TikTok, on
28:20Instagram, talking about, "This is the
28:21worst month of price action we've ever
28:23seen." No, you just [ __ ] suck at
28:25trading.
28:27You [ __ ] suck. I haven't had a single
28:30red month across this entire year of
28:33trading, and every single trade that
28:34I've taken has been live on stream.
28:39You [ __ ] suck at trading. If you have
28:41a red month, it doesn't mean that you're
28:43horrible at trading,
28:46but it means that you should probably
28:47look at that because you are doing
28:49something incorrectly.
28:51Stop trying to blame something that you
28:53have no control over and instead of you
28:55point the finger at yourself, then guess
28:56what? You actually have the ability to
28:58do something about it now.
29:00Because if you forever sit there saying
29:02it's the market's fault, then guess
29:04what? You will never be able to get
29:05better. Moving on.
29:08Number seven, eliminate the need to be
29:11right.
29:12Wanting to win every single trade leads
29:16you to moving stop losses, revenge
29:19trading, and holding your losers.
29:22Successful and profitable traders
29:25focus on making money over time, not
29:29proving themselves right. So, let's give
29:31an example of this. Let's say I get into
29:33the market, I lose $100,000, and I say,
29:36"No freaking way, man. There's no
29:38freaking way. I shouldn't have lost
29:40that. I know that I'm right about this."
29:44But I followed my strategy to a T, and
29:46that was just a drop in my probability
29:48bucket of my losses.
29:50And then instead, what happens? I end up
29:52revenge trading, and I take a trade that
29:54doesn't follow my strategy, that doesn't
29:55follow my rules.
29:57What probability do I have now? Nothing.
30:01It's a coin flip.
30:04What's likely going to happen in that
30:06trade? I'm probably going to lose. Why?
30:08All because I wanted to be right for
30:10that day. Guess what? You're never going
30:12to be right 100% of the time. Why?
30:14Because our strategy is built like that.
30:17Once we understand that our strategy is
30:19just a series of probabilities
30:21and just a percentage of times that we
30:24are going to be correct rather than
30:26incorrect, then we know that there's a
30:28portion of our trades that have to be
30:30incorrect for us to even gain that
30:32probability within the market.
30:35So, we need to completely remove the
30:36thought process of I need to be right
30:39today. Guess what? It's okay to be
30:41wrong.
30:43Accept that.
30:45It's okay to be incorrect. Number eight,
30:48every single trade that you take is
30:50unique. Even if the setup looks
30:53identical,
30:55the participants, the orders, and the
30:56order flow are different. Never assume
30:59that the next trade must behave like the
31:02last one that you just took.
31:04Let's say I see a setup happen today and
31:09I say, "Oh my gosh, this is the exact
31:11same setup that I saw yesterday and
31:13yesterday hit full take profits."
31:16And then I go and place the trade and
31:18then guess what? I get stopped out.
31:20What am I more than likely going to be
31:22doing? Because I thought that that was
31:23that the exact same trade. I'm going to
31:25be scratching my head. I'm going to be
31:27looking at all the steps within my
31:28strategy saying, "Where did I go wrong?
31:31What did I do incorrectly? Where did I
31:33[ __ ] up?" But, if you understand that
31:35every single trade is unique, then guess
31:37what? That loss that you took, that's a
31:39drop in your probability bucket. And
31:41that win that you took, that's a drop in
31:42your probability bucket.
31:45And you're no longer attached to the
31:47individual outcomes of the trades. Why?
31:49Because you know that as long as you
31:51execute that strategy word for word, bar
31:53for bar, and that strategy gives you a
31:55probability within the market, then you
31:57are going to be green over a long period
31:59of time.
32:01So, you guys need to detach from every
32:05single trade. Just because a trade looks
32:06the exact same as you took on Monday
32:08doesn't mean the one that you're going
32:09to take on Wednesday is going to have
32:11the exact same outcome. And a lot of
32:12people get super defensive over this.
32:14They're like, "Woah, woah, woah, THIS IS
32:16THE EXACT SAME SETUP."
32:18WELL, YEAH. Every trade is unique. The
32:20orders are different, the order flow is
32:21different, the participants are
32:22different, the algorithm is different.
32:24Everything is different. Every single
32:26day. Every single new day within the
32:28market is a unique marketplace and you
32:31have to understand that. Number nine,
32:33follow your process without hesitation.
32:37You have to define your strategy
32:39specifically
32:41and you have to take every single valid
32:43setup. Because if you don't take every
32:46single valid setup, then you are losing
32:48probability that your strategy gives
32:49you.
32:50You have to manage your risk identically
32:52each time and all you have to do is sit
32:55back and let the probabilities work in
32:57your favor. It is that simple. It is
33:00that [ __ ] simple. Find a strategy
33:02that gives you probability within the
33:04market, take that trade every single
33:07time it presents itself without getting
33:09fearful, without losing confidence, and
33:12let the probabilities do its thing. It
33:15is that freaking simple, guys. That
33:17simple. And last but not least, develop
33:19the five fundamental truths. Funny
33:21enough, this is my notebook from back
33:24when I was learning how to trade and I
33:25actually have these five fundamental
33:27truths written down.
33:29I'll find them really quick. This is
33:31back from shh forever ago.
33:34Look at this.
33:35Five truths.
33:37So, I'll read them out for you guys.
33:39Number one, anything can happen. Number
33:42two, every single moment within the
33:44market is unique. Number three, a
33:46strategy is an indication of a higher
33:50probability of one thing happening over
33:53another. Meaning, your strategy, all it
33:56is, it doesn't guarantee you 100% win
33:58rate, it doesn't guarantee you that
33:59you're going to become a billionaire.
34:01The only thing that it gives us is a
34:04higher probability of winning rather
34:07than losing. Okay? Number four, there is
34:11a random distribution between wins and
34:14losses on any given set of variables
34:19that define a strategy. There's a random
34:22distribution between wins and losses on
34:26any given set of variables that define a
34:28strategy. And then last but not least,
34:31you don't need to know what will happen
34:34next to make money. You don't need to
34:37know what will happen next to make
34:38money. So, I'll read that one more time.
34:40Five fundamental truths of becoming a
34:42profitable trader. Anything can happen.
34:44You could lose [ __ ] everything. Trump
34:46could tweet that the world is going to
34:48explode and boom, stock market goes to
34:50zero. Anything can happen. Number two,
34:52you do not need to know what will happen
34:55next in order to make money. You don't
34:57need to know what will happen next as
34:58long as you have a strategy that you
35:00know for a fact gives you probability
35:01within the market. You don't need to
35:02know what happens next. All you need to
35:04know
35:05is your strategy.
35:07All you need to know is your strategy.
35:08It's that simple. It is that freaking
35:10simple, okay?
35:12There's a random distribution between
35:14wins and losses for any strategy. A
35:16strategy simply means a higher
35:19probability of one outcome over another
35:22and every single moment within the
35:23market is unique, okay? And the last
35:26thing that I want to leave you guys with
35:28that is super important with trading
35:29psychology
35:31that he mentioned within this book which
35:32is like the core message of the book.
35:35Your goal should not be to predict the
35:38market. Your goal should be to execute
35:41your strategy flawlessly,
35:45manage your risk, and allow the
35:47probabilities to produce profits over
35:50hundreds of trades.
35:53If there is one thing that I want you
35:55guys to learn from this video,
35:57it's that when you guys get into the
35:58marketplace, you guys should not be
36:01looking to predict the next move. You
36:04should be simply just waiting for your
36:05strategy that gives you a high
36:07probability of being right more than
36:10you're being wrong and your winners add
36:12up to more than your losers.
36:15And that is what you should be focused
36:16on. You shouldn't be focused on why did
36:18the market move over here or what's
36:20going on over here? No, your focus needs
36:22to be your strategy. Your strategy and
36:25your steps that you have to take in
36:27order to find the executions that give
36:29you the edge within the market.
36:31That is all that matters. I could give a
36:34singular [ __ ] about what the market is
36:37doing right now. I could give a singular
36:38[ __ ] about what the market's going to do
36:40tomorrow as long as
36:43my strategy presents itself and that
36:45strategy continues to give me high
36:47probability of being right more often
36:48than I'm wrong and my winners add up to
36:50more than my losers,
36:51that is all that I care about because
36:52that is what helps us make money within
36:54trading.
36:56And what is our goal within trading?
36:59Most of you guys want to make money.
37:01So,
37:02rewatch this video if you guys need it.
37:04I hope you guys took notes and that is a
37:07full in-depth psychology breakdown for
37:10you guys on trading. That being said, I
37:12love and appreciate you guys. I'll catch
37:14you guys in the next one. Peace out.

About this transcript

This page contains the full transcript of 9 Years of Trading Psychology in 37 Minutes by TJR, generated from the public captions YouTube serves with the video. The transcript has 6,628 words across 1,018 segments, with the original timestamps preserved so you can click any line to jump to that moment in the embedded player.

What you can do with it

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

Free YouTube transcript tool

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