Boot Camp Day 13: Risk Management — Transcript

Full transcript

1. 0:00what is Good Guys welcome back uh
2. 0:02welcome to boot camp I believe day 13.
3. 0:06um hopefully you guys are ready to get
4. 0:07into some disciplined stuff and uh for
5. 0:10most you guys today is going to be
6. 0:12relatively easy for others
7. 0:15um you know you might be able to learn a
8. 0:16little bit more but
9. 0:19today we are going to talk about
10. 0:20something very basic which is just risk
11. 0:24management and really the first part
12. 0:26about risk management in
13. 0:29um uh in just trading uh and that is
14. 0:33literally how much you are risking
15. 0:35because when people say risk management
16. 0:37is the most important thing
17. 0:40they're you know like it's it's true but
18. 0:43also like
19. 0:45it's it's the most important thing
20. 0:48because of how hard it is due to all the
21. 0:52other emotions so in this video we're
22. 0:55going to talk about what risk management
23. 0:57really is which is literally just how
24. 1:00much to risk and when to risk it
25. 1:04um and all those other emotions and
26. 1:07things that we have to deal with that
27. 1:10comes from discipline um so when people
28. 1:11say yeah risk management is the most
29. 1:13important thing they it's not wrong but
30. 1:16it's
31. 1:17um
32. 1:18this thing on
33. 1:20um yeah it's not it's not wrong but it's
34. 1:22also I guess just not phrased the right
35. 1:25way I would say discipline is the most
36. 1:27important thing and just having a stable
37. 1:30um and strong like headspace is is the
38. 1:34most important thing and not many people
39. 1:35have that uh you know believe it or not
40. 1:37in this world and you tend to find that
41. 1:39you know you find someone that's super
42. 1:41disciplined they're making a lot of
43. 1:42money same thing applies to trading if
44. 1:44you're super disciplined that money will
45. 1:46come
46. 1:47um just like with any other job right if
47. 1:49you put in the work the money will come
48. 1:51right back to you
49. 1:52um you know you just got to do the right
50. 1:54stuff and don't slip up okay so today
51. 1:58it's going to be relatively quick video
52. 2:00but it is very important if you don't
53. 2:02know anything about it and like I said
54. 2:05um all over Tick Tock and like I've said
55. 2:07at the beginning we are doing this from
56. 2:08scratch so this is essential for me to
57. 2:10mention
58. 2:12um especially because I feel like a lot
59. 2:15of you guys come into this thinking
60. 2:18you are going to make 100K in your first
61. 2:21year I hate to ruin your dreams I hate
62. 2:24to break it to you bro
63. 2:30you're not gonna make [ __ ]
64. 2:33you're going to lose money probably in
65. 2:36your first year probably in your second
66. 2:39year
67. 2:39imagine this is like college tuition
68. 2:41you're paying you're paying for the
69. 2:43lessons Okay so how can we make it so we
70. 2:47lose the least amount of money because
71. 2:50it's kind of impossible to to just start
72. 2:54off OfferUp even if you've been trading
73. 2:56on demo even if you go from demo
74. 2:59profitable on demo to live there is
75. 3:01going to be an in-between where you are
76. 3:03losing money
77. 3:05um
78. 3:06just because your emotions it's it's so
79. 3:08hard and that's why half of this literal
80. 3:10boot camp is all dedicated to emotion so
81. 3:13hopefully we can start nipping those
82. 3:14things in the ass and you know like cut
83. 3:16out a lot of these problems that you'll
84. 3:18face along the way as long as you guys
85. 3:19listen as long as you listen Okay so
86. 3:23today what are we talking about we're
87. 3:24talking about risk management how much
88. 3:26you should risk per trade and that's
89. 3:28about it and how often you should trade
90. 3:30because that's really all risk
91. 3:31management is right what are we doing
92. 3:33managing our risk how do we do that
93. 3:34understand what we're risking and
94. 3:36understand not to overdo it okay so how
95. 3:39can we do that what I like to do very
96. 3:42simple okay risk one to three percent of
97. 3:45your account
98. 3:48and that's it okay you're risking one to
99. 3:51three percent of your account size per
100. 3:53trade okay and depending on if you do
101. 3:56Futures if you do options if you do
102. 3:58Forex there's a bunch of different ways
103. 4:00to calculate this and figure out your
104. 4:02risk
105. 4:03um and it's relatively easy on all of
106. 4:05them and a little simple Google search
107. 4:08can help you out how do I risk one
108. 4:10percent of my account doing options with
109. 4:13this stop loss how do I risk one to
110. 4:16three percent of my account doing
111. 4:18futures
112. 4:20with you know a two-point stop loss with
113. 4:24a five-point stop loss with a ten point
114. 4:25stop loss right how do I calculate you
115. 4:29know how do I figure out one percent
116. 4:30risk on this account size with this pip
117. 4:34stop loss for Forex for example okay
118. 4:36simple Google search or literally just
119. 4:38looking up lot size calculator position
120. 4:40size calculator all of those things work
121. 4:44um that's not for me to do that's for
122. 4:46you to do that's your homework there you
123. 4:48go that's one step of your homework okay
124. 4:50you can figure out where you can find
125. 4:53out to calculate that that's not what
126. 4:55I'm here for Google can do that in two
127. 4:57SEC seconds and I'm not going to waste
128. 4:58my time explaining that so that being
129. 5:01said you're going to risk one to three
130. 5:03percent of your account why are we doing
131. 5:04this well let's think about it logically
132. 5:07right if we are risking one percent of
133. 5:09our account per trade that means we
134. 5:10would have to lose a hundred trades in a
135. 5:12row to lose that account completely will
136. 5:15that happen rarely right you may be
137. 5:18asset trading but you will probably get
138. 5:22at least like two out of your ten trades
139. 5:25say it take profit
140. 5:27um whether it's from luck or just
141. 5:30yeah it'll probably be from luck if
142. 5:32you're a terrible at trading right
143. 5:34um so right it's pretty much impossible
144. 5:37to blow your account risking one percent
145. 5:40per trade because that pretty much means
146. 5:42you would have to lose 100 trades in a
147. 5:45row and you aren't going to do that and
148. 5:47then from there it's like okay let's say
149. 5:50like even then like let's say you're
150. 5:52losing 80 of the time if you're only
151. 5:54risking one percent
152. 5:56then like
153. 5:58you know at the end of the year you'll
154. 6:00still have 20 of that account left and
155. 6:01that's still money that you saved right
156. 6:05instead of blowing all of it in two
157. 6:07weeks and then having to refund it right
158. 6:09so let's think about this logically
159. 6:11would you rather be able to keep the
160. 6:13initial account that you started with
161. 6:15or
162. 6:17or would you rather keep having to fund
163. 6:20that same amount of money that's in your
164. 6:22account right now every [ __ ] week
165. 6:24because you keep losing it
166. 6:27all because you want to get rich quick
167. 6:28and we know damn well you aren't right
168. 6:29we talked about this at the very
169. 6:30beginning you will not get rich quick
170. 6:32doing this get that [ __ ] out of your
171. 6:34head
172. 6:37okay get it out of your head and once
173. 6:39that's gone say okay cool I'll get rich
174. 6:41slow relatively slow right
175. 6:45um so I'll get risk slow how do you do
176. 6:47that by risking one to three percent of
177. 6:49your account okay what else does this
178. 6:52mean this also means okay yeah we're
179. 6:55risking one percent per trade that means
180. 6:57it takes 100 trades for us you know to
181. 7:00lose everything however
182. 7:02what happens if you take 100 trades in a
183. 7:04day that means that account will be gone
184. 7:06in a day and we can't risk that we can't
185. 7:08this is a risk on Marketplace this is a
186. 7:11risk on asset this is a risk on job okay
187. 7:13if you if you are the type of person
188. 7:17that needs instant gratification and you
189. 7:19need it every second of the day this is
190. 7:21not for you because with trading you
191. 7:24literally
192. 7:25trading is not what people painted out
193. 7:27to paint it out to be trading is waking
194. 7:31up and doing something emotion like
195. 7:34without emotion
196. 7:36and and you have to you have to be able
197. 7:39to make up to upwards of 60k in a day
198. 7:42and be emotionless and also lose you
199. 7:46know up to like 20 I lost like 27k like
200. 7:49two weeks ago in one trade in a day
201. 7:52and you have to be emotionless because
202. 7:54the second the second your emotions
203. 7:56plug-in boom you're [ __ ] that account
204. 7:58consider that gone literally considering
205. 8:00gone the second you start over trading
206. 8:02the seconds you start taking more than
207. 8:04the set amount of Trades that you wanted
208. 8:06to take per per day
209. 8:08the minute you start doing more than
210. 8:09that
211. 8:10that's when you screwed the minute you
212. 8:12start risking more that's when you're
213. 8:14screwed and you're probably thinking no
214. 8:16no that's not going to be me it's not
215. 8:17going to be me I'm going to follow tjr
216. 8:19it's trust me you will make this mistake
217. 8:21without a doubt but again remember what
218. 8:23we said last time last last discipline
219. 8:26class
220. 8:27understand when the mistake happens and
221. 8:31never do it again right it's like
222. 8:33imagine you have the best the best job
223. 8:35in the world and you have a boss and
224. 8:38you're getting paid millions of dollars
225. 8:40a year
226. 8:41and you [ __ ] up you make a mistake and
227. 8:44your boss comes to you and says I can
228. 8:47fire you right now or I'll give you one
229. 8:50more chance but you can never make this
230. 8:52mistake again
231. 8:54right
232. 8:56never make that mistake again because
233. 8:58this is literally the exact same
234. 9:00situation because you are literally on
235. 9:02Pace
236. 9:04to pretty much an infinite source of
237. 9:07money with this skill
238. 9:09as long as you follow these damn rules
239. 9:11because think about it this way if you
240. 9:13had two hundred thousand dollars in your
241. 9:15trading account would you be trading the
242. 9:17way that you are now
243. 9:19would you be risking 20 to 30 per trade
244. 9:22would you be risking your entire account
245. 9:24on a trade would you be taking 10 trades
246. 9:27a day and would you be okay with losing
247. 9:2910 trades every single day with that
248. 9:31high of a risk
249. 9:32you probably wouldn't especially if it
250. 9:34was two hundred thousand dollars
251. 9:36and you're probably saying tjr my
252. 9:38account's not at that size right now I
253. 9:40know it's not at that size
254. 9:42but you have to treat it as if it is at
255. 9:44that size because that's just like you
256. 9:46know some [ __ ] ass kid in high school
257. 9:48or in college saying I don't got to do
258. 9:51this I don't got to do that I'm not in
259. 9:52the NBA yet well how the [ __ ] do you
260. 9:54think you're going to get into the NBA
261. 9:56how how the [ __ ] do you expect yourself
262. 9:59to get to that point if you can't even
263. 10:02act and hold yourself like the people
264. 10:04that that are already doing that are you
265. 10:07know how do you expect to get there you
266. 10:09really think you're going to do it a
267. 10:11different way you really think of all
268. 10:12these people that are doing this
269. 10:13successfully you really think that you
270. 10:15can do it a different way
271. 10:19right let's let's think about this okay
272. 10:22so
273. 10:24now that we understand all that
274. 10:26perfect
275. 10:28[ __ ] stick to it that's what risk
276. 10:30management risk management is clap it up
277. 10:33you figured it out you're done
278. 10:36now you just gotta stick to it and
279. 10:38that's the hard part so
280. 10:41super [ __ ] easy video today write
281. 10:44down in your notes risk management what
282. 10:46am I risking one to three percent per
283. 10:49trade
284. 10:50how many trades am I taking per day
285. 10:54this is what I would like to say risk
286. 10:57one to three percent of your account per
287. 11:00day
288. 11:01that just makes it easy that makes it
289. 11:03the easiest thing possible because then
290. 11:05it's like okay I can take
291. 11:09two trades with 1.5 risk
292. 11:12or I can take one trade with one percent
293. 11:14risk I can take one trade with three
294. 11:16percent risk I can take three trades
295. 11:18with one percent risk
296. 11:20either way you're still within that
297. 11:22threshold
298. 11:24and you can take you know one or two
299. 11:26setups right if you see two setups for
300. 11:28the day perfect and guys the nice thing
301. 11:30is you're not always going to see
302. 11:32multiple setups every day you know who
303. 11:34knows some days you might not see any
304. 11:35setups and you risk zero on the day
305. 11:37other times you see two setups and you
306. 11:39wanna you know go heavier on the wrist
307. 11:41because all the biases are aligning
308. 11:43right and that we'll cover that in this
309. 11:45course as well but for risk management
310. 11:48one to three percent a day because all
311. 11:52you're doing here is living to trade
312. 11:54another day if you can live to trade
313. 11:55another day there will always be setups
314. 11:57tomorrow this Market is not going
315. 11:59anywhere this Market's not going
316. 12:01anywhere so stop trying to rush the
317. 12:03process drop like you guys realize
318. 12:05you're trying to go from zero to 100K in
319. 12:07under a month do you realize how [ __ ]
320. 12:10stupid that sounds you are
321. 12:12me okay that's you that's you it is you
322. 12:15okay that is that is you if you think
323. 12:18that is possible if you're the if you
324. 12:20are a child
325. 12:31I can't wait to watch it tomorrow I
326. 12:33can't wait to watch tjr's video today
327. 12:36I can't wait to become a millionaire in
328. 12:38two days
329. 12:40that's you
330. 12:41if you're watching this saying
331. 12:44yeah I'm trying to be a Million Dollar
332. 12:46Trader by the end of this year you're a
333. 12:48come on guys let's be ambitious
334. 12:53let's be slightly over over ambitious
335. 12:57let's not and I didn't even want this
336. 12:59[ __ ] ass gum I was just trying to be
337. 13:01like you
338. 13:02um
339. 13:04let's be
340. 13:06slightly overly ambitious
341. 13:09let's not be [ __ ] Liars okay
342. 13:14um I don't want this [ __ ]
343. 13:19okay
344. 13:21let's be let's be smart about this all
345. 13:23right and under understand that this
346. 13:25will take time okay the money's not
347. 13:28going to happen in one day but again
348. 13:30think about what we've said previously
349. 13:32we are here to learn the skill initially
350. 13:35the money will come and that is very
351. 13:38very difficult for Traders to understand
352. 13:40especially new Traders or Traders people
353. 13:42learning how to trade
354. 13:44they want money first
355. 13:47and that's it they don't they don't even
356. 13:49think about the skill they're just like
357. 13:50me want money give give it okay [ __ ]
358. 13:55you won't get it okay you're not you're
359. 13:59not going to get that money because you
360. 14:01could give a [ __ ] about learning the
361. 14:02skill all you want is the [ __ ] money
362. 14:04why don't you dedicate instead of
363. 14:06dedicating your life to I want to make
364. 14:07money
365. 14:08dedicate this [ __ ] to I want to actually
366. 14:11learn how the [ __ ] these charts move
367. 14:13because once you understand that
368. 14:16money is [ __ ] Limitless if you know
369. 14:19where a chart is going to go that
370. 14:21literally
371. 14:22is is a is literally showing you where
372. 14:27the economy is going in terms of like
373. 14:29the S P 500 or literally the dxy if you
374. 14:33can read that chart you have Insider
375. 14:35information
376. 14:36and that it that in itself is an
377. 14:38infinite money glitch
378. 14:40and that's what you have to understand
379. 14:41it's the skill that's the glitch
380. 14:44it I don't know I don't know what you
381. 14:47think I don't know what you think you
382. 14:50know your [ __ ] ass over leverage
383. 14:52[ __ ] trades are gonna do they won't
384. 14:54do [ __ ] you're you're banking you're
385. 14:56you're over leveraging and over trading
386. 14:58Banking and hoping that you can get one
387. 15:00trade to hit one trade to get you out of
388. 15:02the fat ass hole that you've been in
389. 15:04news flash buddy you're digging it
390. 15:06[ __ ] deeper with every single one of
391. 15:08those that you take because guess what I
392. 15:10was there too and I went to bro
393. 15:13I was in so much [ __ ] debt I was in
394. 15:15so much debt because of that [ __ ] it was
395. 15:17terrible I was literally indebted to
396. 15:19friends
397. 15:20that is never a fun thing
398. 15:23and Shout out those people for not
399. 15:26literally like beating my ass over the
400. 15:29money because it took me a while to get
401. 15:31it back to them
402. 15:33um so yeah don't fall into the stupid
403. 15:37ass trap of thinking you're going to get
404. 15:38rich quick and risking a lot this is a
405. 15:41risk on game and there's no point in
406. 15:43risk putting risk on when you don't when
407. 15:46you don't even know how to do this so
408. 15:48this is very important that we're
409. 15:49getting this out the way early on
410. 15:51because
411. 15:53[ __ ] man uh you guys would have been
412. 15:56[ __ ] you guys would have been like
413. 15:58perfect I know how to trade let's put a
414. 16:00thousand on this [ __ ] and it's like all
415. 16:02right I failed you right so before we
416. 16:06even teach you guys when to enter a
417. 16:08trade
418. 16:09let's understand what we're entering
419. 16:11with and why we want to do so okay so
420. 16:14hopefully you guys understood that from
421. 16:15the video and we have a nice little
422. 16:20dildo
423. 16:22um here for me to speak into now so
424. 16:25maybe the audio is clear maybe and is
425. 16:29the video clear uh I didn't do a face
426. 16:32cam but I tried like
427. 16:34different settings I don't know
428. 16:36hopefully it worked out if not
429. 16:38I'm sorry
430. 16:40um but anyways I'll see you guys
431. 16:41tomorrow peace out
432. 16:42I want to eat your ass