Emotional Intelligence With Uncle Larry FOMO — Transcript

Full transcript

1. 0:00hey guys here with uncle larry again hey
2. 0:02guys and we are going to get into our
3. 0:05first video topic of fomo fear of
4. 0:08missing out
5. 0:09yeah so fear of missing out is something
6. 0:11that we have in all aspects of life but
7. 0:14it's really big in trading right so so
8. 0:16jack um have you ever been a victim of
9. 0:18fomo yeah all the time especially um
10. 0:22still now it's just that now i know how
11. 0:24to control that fomo so what do you do
12. 0:26to control it
13. 0:28what i do is i just try to
14. 0:31think about what's going to happen if i
15. 0:33do give in to my fomo
16. 0:35and if i do give into my fomo the
17. 0:38consequences are going to be i'm
18. 0:39probably going to lose money i'm
19. 0:40probably going to get mad and
20. 0:42i'm probably going to you know ruin
21. 0:44another trade because i'm focusing on
22. 0:46one that i've already missed
23. 0:48usually so how do you actually because i
24. 0:50mean sometimes we just have that urge to
25. 0:53i don't want to miss out i just got to
26. 0:54take a risk is there anything you can do
27. 0:57to kind of minimize that risk one thing
28. 0:59that i'll do if i still think the trade
29. 1:01isn't too far away like i'm not going to
30. 1:04chase something that's up multiple
31. 1:05hundreds of percent but if i miss the
32. 1:07trade by a little bit i'll just take
33. 1:09smaller size and if it can create new
34. 1:12key levels that i can risk off of
35. 1:14then maybe i could enter a full position
36. 1:18as long as the chart creates a new
37. 1:20structure
38. 1:21and a new plan for me to then trade
39. 1:23instead of the plan that i was going to
40. 1:25trade i obviously missed it so i can't
41. 1:27just um take the same trade because my
42. 1:30risk to reward is going to be skewed
43. 1:32so you know one of the things i'm
44. 1:34hearing you say too is that
45. 1:36it's already left the barn right the
46. 1:38horse is out of the barn the if you get
47. 1:41in with the fear of missing out you've
48. 1:43already kind of missed the prime time to
49. 1:45get in right
50. 1:47so
51. 1:48is there something to be learned if you
52. 1:49said okay i'm not going to
53. 1:51as you said either
54. 1:53either do a small
55. 1:54trade or not at all is there something
56. 1:56you can learn that can help you next
57. 1:58time
58. 1:59yeah so what you can do is just think
59. 2:02about like why did i miss the trade was
60. 2:04i being lazy
61. 2:05um was i being was i scared of to take
62. 2:08the trade
63. 2:09and think about all these other emotions
64. 2:11that came into play and why did you not
65. 2:14take that trade where you thought you
66. 2:15were going to take that trade or if you
67. 2:17didn't think you were going to take it
68. 2:18and you just like see it going up and
69. 2:20then you decide to get out get in that's
70. 2:22more of like uh chasing and that's not
71. 2:25really um fear of missing out so that's
72. 2:27another thing to kind of make sure that
73. 2:29you're not just chasing stocks
74. 2:31especially with no plan
75. 2:33so jack are there when you do miss a
76. 2:35trade how long before the next great
77. 2:37opportunity comes along
78. 2:39well it's always different depending on
79. 2:42how hot the market conditions are and
80. 2:45sometimes there'll be another trade in
81. 2:47you know 5 10 15 minutes an hour or
82. 2:50other times you're gonna have to wait
83. 2:51another week for a good trade to set up
84. 2:54so it's always different and you can't
85. 2:57force it to be there the next minute but
86. 2:59sometimes it will be the next minute you
87. 3:00just
88. 3:01have to identify the trading
89. 3:03opportunities and identify how
90. 3:07hot the market is with opportunities so
91. 3:09what i'm hearing you say though is that
92. 3:12no matter what right around the corner
93. 3:14there's another opportunity yeah right
94. 3:16there's going to be another opportunity
95. 3:18right around the corner and you have to
96. 3:20think in your head that you're going to
97. 3:21have better odds trading that next
98. 3:23opportunity that comes around that
99. 3:25you're prepared for rather than fomoing
100. 3:28into
101. 3:29a stock at a bad entry price with
102. 3:31probably a not very good plan and you're
103. 3:34probably going to be risking more than
104. 3:36you intend to
105. 3:37and i'll tell you what this now will
106. 3:39lead into
107. 3:41revenge trading because if you enter
108. 3:43that fomo trade
109. 3:45and you get in at a bad price with a bad
110. 3:47plan and you're risking more than you
111. 3:48intend to
112. 3:50you're going to be emotional when you
113. 3:52then have to take the loss
114. 3:54at a bad price
115. 3:56and then you're going to want to make
116. 3:57your money back
117. 3:59and you're going to be looking for that
118. 4:00next trade right away and you're not
119. 4:01going to have patience for that next
120. 4:03opportunity
121. 4:04so this is where again emotional
122. 4:06intelligence comes into play and as jack
123. 4:08just said you know you don't want to
124. 4:10make those emotional trades
125. 4:11what we know is that if you have two
126. 4:14people who are all things given equal
127. 4:16same intelligence same um
128. 4:19skill level and they take a math test
129. 4:21and they end up both getting d's on the
130. 4:24math test
131. 4:25the person with
132. 4:27lower emotional intelligence we'll be a
133. 4:29little more pessimistic and we'll
134. 4:31interpret that as that's the best i can
135. 4:33do
136. 4:34the person with higher emotional
137. 4:36intelligence tends to be more optimistic
138. 4:38and they look at it and say wow i guess
139. 4:40i need to study harder or change my
140. 4:42study habits and that's one of the key
141. 4:45things is when when haters end up hating
142. 4:48with jack
143. 4:49and saying how could he have made this
144. 4:50money
145. 4:51what they need to do is say
146. 4:53what is he doing that i can also learn
147. 4:55to do how can i mimic what he's doing
148. 4:57because if it's working for jack it can
149. 5:00work for someone else
150. 5:01that is what emotional intelligence is
151. 5:03about is learning to kind of put
152. 5:06things aside putting your pride aside
153. 5:08put your anxieties aside and being able
154. 5:11to say you know what's going on here so
155. 5:14there's like four key parts to emotional
156. 5:16intelligence the first is interpreting
157. 5:18what you're feeling the second is being
158. 5:21able to use what you're feeling to
159. 5:23achieve your goals
160. 5:25the third and this doesn't apply quite
161. 5:27as much to traders but being able to
162. 5:29interpret what others are feeling and it
163. 5:31does to some extent because when you're
164. 5:32watching people's um
165. 5:35trading and they're you're following
166. 5:37them and realizing ah these guys are all
167. 5:39panic trading right
168. 5:41and then the fourth is using that
169. 5:43information to get results that that you
170. 5:45want in an
171. 5:46ideal world it would be a win-win not in
172. 5:49training but in relationships so those
173. 5:51are the four key components of it and
174. 5:53that's what we want to help you guys
175. 5:55develop so
176. 5:57talking more about the uh the revenge
177. 5:59training what's that all about
178. 6:01so revenge trading is a human emotion
179. 6:04for sure and if you
180. 6:07um
181. 6:08let's just say you're driving and you
182. 6:11get stopped at a red light by a few
183. 6:14seconds and you missed it and you're the
184. 6:16first one there sitting and waiting for
185. 6:17that green light that next time that you
186. 6:19see that yellow light i guarantee you're
187. 6:21going to go faster to try to beat it
188. 6:23because you don't want to get stuck at
189. 6:25it again
190. 6:26and i just thought of that off the top
191. 6:28of my head
192. 6:29but going into trading it's a lot
193. 6:32different because we have
194. 6:33money at
195. 6:35stake here and that is you know a lot
196. 6:38more um
197. 6:39important than being stopped at a red
198. 6:41light for a minute or two it's our hard
199. 6:44earned money that a lot of people
200. 6:46need these monies to uh to pay bills and
201. 6:50all this stuff so if you lose some money
202. 6:53on a trade you're going to want to make
203. 6:54that money back right away as soon as
204. 6:56you can as quick as possible and that's
205. 6:59going to cause you to take a bad trade
206. 7:01and probably fomo into something else
207. 7:04and i see traders do this all the time
208. 7:07especially if
209. 7:09they lose a small amount if they lose a
210. 7:12couple hundred bucks a few hundred bucks
211. 7:14500 bucks whatever it is they are going
212. 7:16to want to make that money back and then
213. 7:18what happens when they lose another 500
214. 7:20bucks the other down a thousand and now
215. 7:22they're gonna you know risk more and
216. 7:24more and more to make that thousand back
217. 7:25now they're down two thousand now
218. 7:26they're down three thousand until you're
219. 7:28able to hit that max limit where you're
220. 7:31just
221. 7:31you know all over the place and you're
222. 7:33in shambles and this is the mistake that
223. 7:35i made the most at the beginning is
224. 7:37whenever i lost i could never control
225. 7:40how i felt after it and i had to go
226. 7:42through it multiple times
227. 7:44knowing that if i'm if i enter another
228. 7:46trade
229. 7:47i'm going to lose more money because i
230. 7:50am not mentally stable
231. 7:52to make that trade now five years in if
232. 7:54i
233. 7:55lose some money i'm okay with it because
234. 7:58i know that there's going to be another
235. 7:59trade around the corner and i'm able to
236. 8:02not really care about it but in the
237. 8:03beginning you're going to be so focused
238. 8:05on that money and not focused on the
239. 8:07trade at all and you are just going to
240. 8:09jump in and you're going to just compile
241. 8:11and compound those losses until it's a
242. 8:13huge loss that sometimes is
243. 8:15unrecoverable
244. 8:17so i gotta make quick comment about the
245. 8:19uh i loved your uh stoplight analogy and
246. 8:22think about that this goes beyond
247. 8:24trading but we do it we sometimes go you
248. 8:27know what i'm going to hit the gas to
249. 8:29make that yellow light
250. 8:31but if that's what we're doing is that
251. 8:32really smart we get away with it you
252. 8:33know 99 times what about that 100th time
253. 8:35when somebody else is going the other
254. 8:37direction and you're running a little
255. 8:39late and you get an accident right
256. 8:41so again not letting your emotions drive
257. 8:44you it affects all aspects of our lives
258. 8:47now real quick with the um the the
259. 8:49losses
260. 8:50when you first got started you almost
261. 8:52gave up because of those losses right
262. 8:55yeah i think it was somewhere between
263. 8:57five and ten times i made the same exact
264. 8:59mistake revenge trading over and over
265. 9:01and those were all
266. 9:03like pretty catastrophic losses for me
267. 9:05considering i was working on a job
268. 9:07making ten to twenty dollars an hour and
269. 9:09losing one two three thousand four
270. 9:11thousand eight thousand dollars was my
271. 9:13biggest loss eight thousand dollars in
272. 9:15just a few hours where i had to
273. 9:18work so long to
274. 9:20make that money but on the good side now
275. 9:22that i can i can think about it is
276. 9:25those lessons then stuck for me the
277. 9:27harder they hurt and the more times that
278. 9:29i made those mistakes those lessons
279. 9:31finally stuck with me because i was able
280. 9:33to feel that emotion very deep inside me
281. 9:36compared to someone who just gets you
282. 9:38know gifted a hundred thousand to trade
283. 9:41with they can just lose and lose and
284. 9:43lose and not really feel it because they
285. 9:45didn't have to work for that money and
286. 9:46save up so it's always good to be
287. 9:49risking your hard earned cash after
288. 9:51you've been studying and after you feel
289. 9:53like you've had
290. 9:55a good understanding of the technical
291. 9:57side of trading but then there's a whole
292. 9:59other side and that is the side of
293. 10:01mastering yourself and mastering your
294. 10:03emotions yeah and that is that is key
295. 10:05and i mean jack is actually when it
296. 10:07comes to trading has done that at an
297. 10:09incredibly early age but some people
298. 10:12never master their emotions and you guys
299. 10:14all know people who are you know 50 60
300. 10:16years old they're going off they get mad
301. 10:19they get you know reactive they're
302. 10:20impulsive
303. 10:22the nice thing is you can learn this
304. 10:24stuff at any point
305. 10:25here's another interesting fact
306. 10:28ei emotional intelligence is more
307. 10:30important to success than your iq is
308. 10:33now a lot of people wouldn't believe
309. 10:34that but
310. 10:35research has shown it is you can have
311. 10:37really high iq
312. 10:39but make really bad decisions because
313. 10:41you're making them impulsively
314. 10:43the other nice thing is that while your
315. 10:45iq can't be changed it's it's what it is
316. 10:48that's that's it all the studying does
317. 10:50not increase your iq
318. 10:52you can improve your emotional
319. 10:54intelligence and the more you
320. 10:56do some skills and practice some
321. 10:58different
322. 10:59things that i'll share in later videos
323. 11:02you will slowly increase your emotional
324. 11:05intelligence and make better decisions
325. 11:07jack didn't do any training he just kind
326. 11:09of figured out the hard way by losing
327. 11:10thousands of dollars but
328. 11:12but hopefully we can help you guys too
329. 11:16all right we'll talk to you next time
330. 11:18remember to like me on uh twitter larry
331. 11:21blackwell you already are following him
332. 11:23but if not
333. 11:24is it a jack
334. 11:26jack and and also uh check out tim sykes
335. 11:31um
336. 11:32site where he's got his classes if you
337. 11:34really want to learn how to master
338. 11:35trading
339. 11:36talk to you guys soon