I Traded Markets for 26 Years: Here's What They Don't Tell You — Transcript

Full transcript

1. 0:00You know, over the last 26 years, I've
2. 0:02spent more than 54,000 hours sitting
3. 0:05behind a computer screen making trades.
4. 0:07Now, some of those hours were spent
5. 0:09making some of the biggest,
6. 0:11life-changing trades that any trader
7. 0:13could ever make. On the other hand, many
8. 0:15of those hours were spent making some of
9. 0:17the dumbest, most moronic trades that
10. 0:20any trader could ever make. But through
11. 0:23each and every one of those 54,000
12. 0:25hours, I have learned a lesson. So, in
13. 0:27today's video, I want to share with you
14. 0:29seven of the best lessons that I have
15. 0:31learned from trading the financial
16. 0:33markets over the last 26 years. But more
17. 0:36importantly, the lessons that the
18. 0:38trading industry just does not want you
19. 0:39to know about. Now, before I do that, I
20. 0:42want you to understand something. If you
21. 0:44came to this video looking for a pep
22. 0:46talk or a motivational session, this
23. 0:48ain't it. Because many of these lessons
24. 0:51you hear today, they're going to sting
25. 0:52you a little bit. especially the last
26. 0:55two because they're going to give you a
27. 0:57hard dose of trader reality and what
28. 0:59this industry is all about. But I do
29. 1:01promise that if you stick with me
30. 1:03through the entire video, most of your
31. 1:05questions about trading will be
32. 1:07answered. You will know exactly what you
33. 1:09need to do going forward regardless of
34. 1:12whatever your experience level may be.
35. 1:14So on that note, let's go ahead and get
36. 1:16started with today's video.
37. 1:20All right. So, to make today's video as
38. 1:22easy to follow along with as possible
39. 1:24and to make sure you guys get the most
40. 1:25out of today's lessons, I've broken them
41. 1:27down into three separate pillars. The
42. 1:29very first pillar has three lessons in
43. 1:31it. And these lessons are focused around
44. 1:33the absolute must dos as a trader. So, I
45. 1:36don't care what trading strategy you're
46. 1:37using, asset you're trading, or market,
47. 1:39none of that matters. If you don't have
48. 1:41these foundational components in place,
49. 1:43you can work as hard as you want at
50. 1:44this. You're not going to go anywhere.
51. 1:46Now, the second pillar focuses on two
52. 1:48lessons about trader mindset. Now, when
53. 1:50I say trader mindset, I'm not talking
54. 1:52about trader psychology. I'm talking
55. 1:54about getting you to start seeing the
56. 1:55market through the lens of a
57. 1:57professional trader. [snorts] And the
58. 1:59third pillar, which are the final two
59. 2:00lessons, are obviously the most
60. 2:02difficult for most of you watching
61. 2:04because they focus on the darker sides
62. 2:06of trading. There are just some things
63. 2:07about the trading industry and the
64. 2:09trading business that a lot of people
65. 2:11find very difficult to deal with. And
66. 2:13unfortunately, if you want to make this
67. 2:15[clears throat] a profession, you've got
68. 2:17to make peace with these things, you
69. 2:18have to understand them and accept them.
70. 2:20Because if you can't, I'm sorry to be
71. 2:23the one to tell you this, but trading
72. 2:24ain't for you. So, having said that,
73. 2:27let's start with pillar number one and
74. 2:29our very first lesson of the day. And
75. 2:31the very first lesson for today is
76. 2:32stupid simple always wins in trading.
77. 2:35Now, there's this quote I remember. I'll
78. 2:36try not to butcher it up on the spot,
79. 2:38but it goes like this. Any intelligent
80. 2:40fool can make something complicated, but
81. 2:42it takes a genius to make it simple. And
82. 2:44if you want to be successful at trading,
83. 2:46everything begins and ends with your
84. 2:48ability to keep things simple. But look,
85. 2:50I know you've heard that before, right?
86. 2:52Because every single YouTube video
87. 2:54you've ever watched has something to do
88. 2:55with a stupid simple strategy or a
89. 2:57stupid simple process. So what we're
90. 2:58going to talk about is what does stupid
91. 3:00simple mean? Like what's the line
92. 3:02between too much information and not
93. 3:04enough? And I will tell you that. You
94. 3:07see, all you need to do to have this
95. 3:09amazing, abundant, prosperous life as a
96. 3:12trader is just master the art of price
97. 3:15action. That's it. Because everything
98. 3:18that you need to know to get where you
99. 3:20want, it's right there in the price.
100. 3:23Price pays, opinions don't. You can read
101. 3:26all the reports you want. You can cruise
102. 3:28all the trading forums you want. You can
103. 3:30waste all the time you want, but if you
104. 3:32don't understand price action, you're
105. 3:34just dead in the water, no matter how
106. 3:36hard you try. Now, here's all you need
107. 3:38to master to understand how to use price
108. 3:41action properly. It starts with the
109. 3:43chart you're looking at. You see, a lot
110. 3:45of traders don't know this, but the
111. 3:46chart you're looking at is the most real
112. 3:49information that the market has to offer
113. 3:51you. Because what you're seeing is a
114. 3:53snapshot of how people think of an asset
115. 3:56in real time. So, when you see a chart,
116. 3:58here's what you see. All the good news,
117. 4:00all the bad news, all the geopolitical
118. 4:02news, all the data that's in the
119. 4:04possession of humankind that they have
120. 4:06at their fingertips is baked into the
121. 4:08chart you're looking at. And the price
122. 4:10of that chart is exactly what the market
123. 4:12thinks it's worth. There's no
124. 4:14speculation there. And the only job we
125. 4:16have as traders is this. We just need to
126. 4:18determine each day, do the current
127. 4:20market participants find that price to
128. 4:22be cheap or do they find that price to
129. 4:24be expensive? That's it. Once you do
130. 4:26that, you're mastering price action.
131. 4:28Now, here's the tools that you need to
132. 4:30mastery that support and resistance is
133. 4:32your first one. Hands down, there is no
134. 4:35better indicator than support and
135. 4:36resistance. In fact, 95% of all the
136. 4:39trading strategies, theories, and all
137. 4:40these lines people been drawing for the
138. 4:42last century originated around theories
139. 4:45about support and resistance. But here's
140. 4:47the thing, most traders don't know what
141. 4:49good support and resistance is. They're
142. 4:51just trading these random levels on
143. 4:53their chart. Let me show you how you're
144. 4:54going to figure this out. The two most
145. 4:57important areas every single day when
146. 4:59you start trading is the previous day's
147. 5:01high price and the previous day's low
148. 5:03price of the asset you're trading. The
149. 5:04previous day's high price represents the
150. 5:07most recent and most strongest seller in
151. 5:10the asset you're trading. And the lowest
152. 5:12price represents the strongest most
153. 5:14recent buyer in the asset you are
154. 5:16trading. Now, one thing traders ask me
155. 5:18all the time, hey, do you see this uh
156. 5:20asset going up? Do you see such and such
157. 5:22going higher? Here's your answer to that
158. 5:24question. Nothing can go higher until
159. 5:28you dispatch of the previous high
160. 5:31seller. I don't care what you do, you
161. 5:33can't go there until that person or
162. 5:36entity is gone. Same thing. Nothing can
163. 5:39go lower until the previous strong buyer
164. 5:42has been dispatched of. It's simple.
165. 5:45Now, what you want to do as a trader is
166. 5:47only trade at those two spots. That's
167. 5:50it. I know you can do it. Once you've
168. 5:52marked the lines, you can do it.
169. 5:54Anywhere [music] else, understand me on
170. 5:55this. Anywhere else that you trade on
171. 5:57that chart, you're guessing. And that's
172. 5:59a problem for a lot of you. That's why
173. 6:01your strategies are failing because
174. 6:03you're guessing there. And we don't want
175. 6:05to do that. Now, if the asset price has
176. 6:07gapped up or down, what you do is you
177. 6:09just draw a line on the high price of
178. 6:10the gap up, the low price of the gap
179. 6:12down, and you use the same exact theory.
180. 6:15[music] Now, one quick tip for you guys
181. 6:17watching, which is on the subject of
182. 6:18indicators. This is just my personal
183. 6:20opinion, but I think it will help most
184. 6:22of you. If you are not a successful
185. 6:24trader right now, don't use any
186. 6:28indicators. They're just getting in your
187. 6:30way. I want you to remember this saying,
188. 6:32even if you have to write it down. No
189. 6:34indicator will make a failing trader
190. 6:37successful. It can only make a
191. 6:39successful trader a little bit better.
192. 6:42It's not the answer you're looking for.
193. 6:44So, if you're not consistent now, you
194. 6:46don't have an understanding of what
195. 6:48support and resistance is, this an
196. 6:51indicator is just wasting your time,
197. 6:53just getting in your way and causing you
198. 6:54more confusion. The last thing that you
199. 6:57need in this process of mastering price
200. 6:59action is something you already know how
201. 7:00to do, which is read a clock. For some
202. 7:03reason, traders, myself included, when I
203. 7:05started, were just oblivious to what
204. 7:07time of the day moves were happening.
205. 7:09And here's what you need to know. The
206. 7:11best moves happen between the 15minute
207. 7:15and 30 minute mark of each day. That's
208. 7:18where your biggest moves are going to
209. 7:19come from. Sure, you're going to see
210. 7:21some parabolics and some dumps at the
211. 7:22open. We all see that. But the trending
212. 7:26strongest assets you can get behind and
213. 7:28leverage the most. The biggest trending
214. 7:30moves are going to happen between the
215. 7:3215-minute mark and the 30-inut mark.
216. 7:34Make sure you're present at the market
217. 7:36at that time. You've looked at your
218. 7:38support and resistance. you have all
219. 7:40this laid out for you and trading will
220. 7:42start to come a lot easier for you.
221. 7:43Okay, so sticking with the theme of
222. 7:45keeping things simple stupid, we now can
223. 7:46move on to lesson number two for today,
224. 7:48which is the power of one. I never
225. 7:50started to see consistent results with
226. 7:52my trading till I went with this whole
227. 7:54power of one thing. Starting with the
228. 7:56method I use, which I now call the 111
229. 7:59method. Now what this is is it's one
230. 8:01long idea, one short idea on one asset.
231. 8:05So, like one of the first things I ever
232. 8:06did was just delete everything off my
233. 8:08watch list and put just one asset on it.
234. 8:11I turned off the news, didn't chase the
235. 8:13shiny objects, kind of put myself in
236. 8:15this bubble and just focused on one
237. 8:17asset only for 30 days. Now, what was
238. 8:20crazy about this is within just a couple
239. 8:22of days, no kidding, just a couple of
240. 8:23days, I started to feel like I was
241. 8:25getting this sixth sense. Like, I kind
242. 8:27of just knew what this thing wanted to
243. 8:29do, how it behaved, where it wanted to
244. 8:32go. And that really gave me like a ton
245. 8:34of confidence to think about the trades
246. 8:36I wanted to make. But here's what else I
247. 8:38would do. I would draw out right before
248. 8:40the market opens what one long idea
249. 8:43would look like. Now, this was just the
250. 8:44shape I wanted to see. Now, the shape I
251. 8:47was drawing was based off of the several
252. 8:50several hours I'd been staring at this
253. 8:52thing for the course of a month. And I'd
254. 8:54say, well, probably going to look like
255. 8:55this and move like this. And then I'd do
256. 8:57the same thing for a cell. I' move like
257. 8:59this and do something like this. Now, if
258. 9:01the pattern kind of just followed along
259. 9:03with anywhere near that, I bought it or
260. 9:05sold it. No indicators, no candlesticks,
261. 9:08nothing else. I was just trading pattern
262. 9:11recognition. And strangely, I was doing
263. 9:14better with that than any of the other
264. 9:15garbage I had been studying up to that
265. 9:17point. So, this really helped me with
266. 9:18that focus. The next thing I did was
267. 9:22just the one trade a day rule. I would
268. 9:24focus on making only one trade a day.
269. 9:28And what I would do is I would tell
270. 9:29myself, let's say hypothetically my
271. 9:31brokerage account just gives me one
272. 9:33trade for today and that's it. Once I
273. 9:36make this trade, they're going to turn
274. 9:37me off. Now, what happened here in this
275. 9:39case is it started to allow me to think
276. 9:42about, do I really want to take this
277. 9:44trade? Like, this is the only trade I
278. 9:46get for the day. Is this really where I
279. 9:48want to put my money right now, or is it
280. 9:50better for me to wait? This was so huge
281. 9:53for me because it allowed me to start
282. 9:54thinking about quality. It started to
283. 9:56allow trades to come to me rather than
284. 9:59me just, you know, fighting off that
285. 10:00impulse of, oh, I got to trade. The
286. 10:02market's open, I must trade. Huge help
287. 10:04for me by focusing on just that. But to
288. 10:07take it even further, here's what else I
289. 10:09would do. If the one trade was a loser,
290. 10:12I would stick around the market for one
291. 10:14more hour. And I would only do so to see
292. 10:16if maybe I missed something on this
293. 10:19chart. If there was another pivot, if
294. 10:21there was something I didn't see, I
295. 10:22would just take a little extra hour to
296. 10:24look at that. However, if that one trade
297. 10:27was a winner, I just got the hell up off
298. 10:29my desk and bailed. I cannot tell you
299. 10:32guys how many times I gave back great
300. 10:35mornings. I mean, haven't we all? We've
301. 10:36had this wonderful morning. We've made
302. 10:38tons of money and then we just give it
303. 10:40all away back at the end of the day,
304. 10:42right? Just horrible, horrible feeling.
305. 10:44So, whenever I make a winner, just shut
306. 10:46that computer, leave, you're done for
307. 10:49the day. Now, that process worked out so
308. 10:51well. I'm still using a version of that
309. 10:53today, especially the one-winning trade
310. 10:55strategy. So, if I kind of just start
311. 10:56out really well for the day and I have
312. 10:58one really good winner, I almost never
313. 11:00trade again. I mean, I do not want to
314. 11:02give my money back later on in the day
315. 11:04or do something stupid, that's going to
316. 11:05make me angry. Now, I know for a lot of
317. 11:07people that are watching this right now,
318. 11:08you're going to say, "Man, just sitting
319. 11:10there looking at 30 days of just one
320. 11:11thing, that's going to be kind of
321. 11:12boring. Just focusing on one trade only,
322. 11:15that's going to be kind of boring." But
323. 11:16you have to understand, boring
324. 11:18ultimately wins out. When you're a new
325. 11:20trader, what you need more than anything
326. 11:23is discipline and structure. You can
327. 11:25lighten up the rules when you get a
328. 11:26little bit better, but as a new trader,
329. 11:28you're vulnerable right now. And that's
330. 11:31what's holding you back is just chasing.
331. 11:32I mean, you've got enough stuff to look
332. 11:34at all day long, right? You don't need
333. 11:37to take up precious brain space just
334. 11:39looking around at shiny objects, reading
335. 11:41social media posts, and just kind of
336. 11:43burning your brain out. So, that's
337. 11:45lesson number two. Just try to keep that
338. 11:47simple stupid and just focus on that one
339. 11:49asset, one trade idea just each and
340. 11:52every day and you should start to see
341. 11:53some good improvements. So, on to lesson
342. 11:55number three for today, which is if you
343. 11:57don't rank, you won't bank. You see,
344. 11:59every trader needs some form of ranking
345. 12:01system to help them quickly establish
346. 12:03the level of opportunity they're looking
347. 12:04at. Because we might have two charts
348. 12:06that are sitting side by side that have
349. 12:08like the same technical signaling, the
350. 12:09same technical setup, but there's a
351. 12:11really good chance they are not the
352. 12:13exact same opportunity. You see, our
353. 12:16ultimate goal for traders is to become
354. 12:18fully leveraged on only the best
355. 12:20opportunities. But if we don't have some
356. 12:22ranking system in place, we're just not
357. 12:24going to know the difference between
358. 12:26high probability winners and high
359. 12:28probability losers. We're just going to
360. 12:30overlever on every chart we see. We also
361. 12:32need to do this to eliminate the luck
362. 12:34factor. We need to document trades that
363. 12:36were winners based off of a mechanical
364. 12:39system, not winners that came from luck.
365. 12:41Otherwise, that will hurt us in the
366. 12:43future. So, here's what I want you to
367. 12:44do. Whenever you have a winning trade,
368. 12:46document as much of the trade details as
369. 12:49possible to find your edge. Do this
370. 12:51right away so you don't forget. Document
371. 12:54the setup, the time of day, the trade
372. 12:56that you took, was there news involved,
373. 12:58just as much data as you can. Then take
374. 13:00that data and match it against your
375. 13:02losing trades to see if you find
376. 13:04differences. Now, once you've done this,
377. 13:06make yourself a list that looks like
378. 13:08this. Tier one, tier two, and tier
379. 13:11three. A tier one play will become a
380. 13:14trade that is your go-to play, one that
381. 13:16you've developed a great relationship
382. 13:18with and have a high win rate. When you
383. 13:21see this trade, you must leverage as
384. 13:25hard as you can into the play. That's
385. 13:28your best odds. You need to do this,
386. 13:30too, because the day will come when
387. 13:31you've had like four or five losers in a
388. 13:33row, and you need to have the confidence
389. 13:35to go in when your heart doesn't want
390. 13:37you to. Now, a tier 2 trade is some of
391. 13:40high quality, but it might be missing
392. 13:41one or two data points. Now, when you
393. 13:43take a tier 2 trade, they're worth the
394. 13:45risk that you put into it, but the
395. 13:48important thing is it can't be a fully
396. 13:49leveraged opportunity. You have to dial
397. 13:52down the size. Now, on to a tier three
398. 13:54play. This is something for me that's
399. 13:56more of a speculative or correlation
400. 13:58play. Obviously, the quality of this
401. 14:01setup is not nearly as good as a one or
402. 14:04a two. So, what this means for us as
403. 14:06traders is we can't go full leverage on
404. 14:09a tier three play. That's like the
405. 14:11essence of revenge trading is you're
406. 14:13missing out on a quality play and
407. 14:15doubling down on a garbage play. And
408. 14:18that's what we want to be able to is
409. 14:20kind of categorize the risks that we
410. 14:22take. Now, for a lot of you watching,
411. 14:24you don't even need to mess around with
412. 14:25these tier 3es. At least, you know, to
413. 14:28do it on the lowest risks possible. Now
414. 14:30once you've developed this system,
415. 14:32you'll realize you'll be able to see the
416. 14:34quality of opportunity which will up
417. 14:36your confidence and help you make more
418. 14:39on the good place. Now that will
419. 14:41conclude pillar number one for today. We
420. 14:42can move on to pillar number two which
421. 14:44has to do with mindset. This will be
422. 14:46lesson number four and we're going to
423. 14:47call this one know thyself. Another
424. 14:50quote I can remember is this one.
425. 14:52Conquering others is easy but conquering
426. 14:54yourself takes true strength. You will
427. 14:56always be your worst enemy. The battle
428. 14:59you'll have as a trader won't be trying
429. 15:01to learn a strategy or how to read a
430. 15:03chart. That's like first grade stuff.
431. 15:04You'll learn that in just a few days.
432. 15:06But you're going to spend your entire
433. 15:07life battling the demons you have
434. 15:09inside. But here's the thing. Contrary
435. 15:12to what internet gurus want you to
436. 15:14think, you can't change who you are. You
437. 15:17cannot become somebody you were never
438. 15:19supposed to be. All you can do is
439. 15:21recognize your strengths and your
440. 15:23weaknesses and just work with them. Now,
441. 15:25let me tell you why this is so important
442. 15:26to you guys. the trading strategy that
443. 15:29you choose just won't be based on your
444. 15:31ability to understand it. It will be
445. 15:33more based on who you are as a person.
446. 15:35This is huge for a lot of you because
447. 15:37many traders will spend way too much
448. 15:39time trying to force these strategies
449. 15:41and theories that just simply don't fit
450. 15:43their behaviors. Now, throughout my 26
451. 15:46years of experience, I've narrowed down
452. 15:48three know thyself behaviors. This is
453. 15:50things you must discuss with yourself in
454. 15:52a mirror and make sure you've cleaned
455. 15:54this out before you start trading. One
456. 15:56is patience. Two is risk. Three is money
457. 15:59itself. Let's talk about patient. If
458. 16:01you're an impatient individual like I
459. 16:04am, you are going to struggle big time
460. 16:06with FOMO. This was huge for me because
461. 16:09every time I heard the bell ring, I just
462. 16:11wanted to get in there, start throwing
463. 16:12some money around, and just jump in the
464. 16:14battle, right? That's how we are. Now,
465. 16:16if you're a patient individual, your
466. 16:19problem is going to be just executing,
467. 16:21period. You're just going to be a little
468. 16:23hesitant. things are going to pass you
469. 16:24by and you're just going to miss out on
470. 16:26a lot of stuff. Again, it's okay to have
471. 16:28either one of these. There's no right or
472. 16:30wrong way. You just need to know that
473. 16:31that's a weakness and how will you
474. 16:34overcome each one of those weaknesses?
475. 16:36The second is risk itself. Do you
476. 16:38consider yourself to be a risk taker or
477. 16:40what level and what type of risk taker
478. 16:43are you? So, for example, I consider
479. 16:45myself to be a risk taker but only if
480. 16:48it's calculated risk. I have to be in
481. 16:51control of that risk. So, like in
482. 16:52trading, I can put a stop-loss. I can
483. 16:54choose how much share size I want. I can
484. 16:56control that risk. I don't walk into a
485. 16:59casino and gamble at all because I don't
486. 17:02have any odds. I'm not in control of
487. 17:03that risk. So, I simply will not take it
488. 17:05if I don't think I'm going to come out
489. 17:07on the good side. So, my risk has to be
490. 17:10calculated. Some of you that listen, you
491. 17:12just love risk. You just want it all.
492. 17:13You're just going to start throwing
493. 17:14money at everything and you're going to
494. 17:16have to slow that down because you're
495. 17:18going to blow up. A lot of you, you're
496. 17:20going to be a little conservative when
497. 17:21it comes to money. Again, that's okay.
498. 17:23So, what you're going to have to do is
499. 17:25kind of open it up a little bit and just
500. 17:27try to accept a little bit more because
501. 17:30if you don't take the risk, you can't
502. 17:31make the money. Again, there's no right
503. 17:33way or wrong way. You just need to
504. 17:35acknowledge these behaviors and work
505. 17:36with them. And the last is how do you
506. 17:38guys see money? Like, what does money
507. 17:40and success really mean to you? Some
508. 17:42people want millions and trillions.
509. 17:43Other people just want to get out of the
510. 17:45grueling 9to-5. So, for example, I've
511. 17:48always been a money conscious
512. 17:49individual. I don't know where it came
513. 17:50from. It's just how I am. I just know
514. 17:53what prices are. I just remember prices
515. 17:55and I know how much I pay for stuff and
516. 17:57I know if they go up or down. Now,
517. 17:59because of this, me being so money
518. 18:01conscious. I'm a terrible breakout
519. 18:03trader because mentally when I hear
520. 18:05breakout, I think chasing too high, you
521. 18:08know, I I just won't do it. I simply
522. 18:09cannot mentally overcome that hurdle in
523. 18:12my mind. This is why I trade reversals
524. 18:15because in my mind reversal means cheap
525. 18:19discount. So that's works for me. What
526. 18:21you have to do is find what works for
527. 18:23you. Again, the strategy you choose will
528. 18:27be based off of your behaviors more than
529. 18:29your general understanding of it. So
530. 18:31remember, know thyself. So on to lesson
531. 18:34number five for today, which is losses.
532. 18:36You know, people want to tell you, hey,
533. 18:38you got to take them losses. Losses are
534. 18:40no big deal. They're just part of the
535. 18:42game, right? Well, that sounds great
536. 18:44until you actually have to take a loss.
537. 18:46Then it feels like it's the most
538. 18:47emotionally devastating thing in the
539. 18:49world. It feels like you're going
540. 18:51through a breakup or something. So, no
541. 18:52matter how you want to look at it,
542. 18:54losses are just painful. Period. And
543. 18:56after doing this for 26 years, I can
544. 18:58tell you I hate losing now just as much
545. 19:00as I did when I started. In fact, I
546. 19:02still get mad after losses. So, as you
547. 19:05could imagine, I'm mad quite a bit. So,
548. 19:07I'm never going to act like this is
549. 19:09nothing because it is. Remember, know
550. 19:11thyself, right? And thyself really hates
551. 19:14to lose. So, what I had to do is try to
552. 19:16understand how losses affect us as a
553. 19:18trader. You see, what makes trading so
554. 19:21different from many other endeavors is
555. 19:22you see the product of your decision
556. 19:24play out right in front of you. So, when
557. 19:26you push a button and you enter a trade,
558. 19:28if it's immediately red, that just
559. 19:30doesn't feel good. And the longer that
560. 19:32trade stays red, the worse it gets for
561. 19:34us emotionally. So the best thing I
562. 19:36found to work for me to understand that
563. 19:38losses are a part of the game is there
564. 19:40would be losses no matter what career
565. 19:42path I chose. So for example, if I was
566. 19:44in a professional career that required a
567. 19:46license, the purchase of the license
568. 19:49would be a loss. But I have to have this
569. 19:51license so I can actually generate
570. 19:53income from the job or the business. If
571. 19:56I'm taking a car or a subway or a train
572. 19:59to work every day, that is a loss. But I
573. 20:02have to do that to get to the job to
574. 20:04generate money. So, there's going to be
575. 20:06losses no matter which direction we
576. 20:07point ourselves in life. It doesn't mean
577. 20:09that it's going to be easier or you're
578. 20:11not going to be upset about it. We're
579. 20:13not robots here, right? We're emotional
580. 20:15beings, but at least it helps you
581. 20:17understand it more. Now, one last tip
582. 20:19here. One of the best things you will
583. 20:21ever do in your life is take that P&L
584. 20:24and get it off your screen. you have no
585. 20:26business looking through that anytime
586. 20:28during the trading day because at some
587. 20:30point whether it's green or it's red
588. 20:33that number you see on screen is going
589. 20:34to influence you. It's going to cause
590. 20:36you to make an emotional decision over a
591. 20:39calculated technical decision and that's
592. 20:41usually when bad things happen. So now
593. 20:43for the third and final pillar in the
594. 20:45last two lessons of today which will be
595. 20:47the sixth lesson overall and here it is.
596. 20:51Trading will break you before it makes
597. 20:53you. Trading has to be the biggest
598. 20:56character magnification tool that's ever
599. 20:59existed. Like whatever demons you've got
600. 21:01locked away in your closet, it's going
601. 21:03to find those demons, pull them out, and
602. 21:05magnify them to the power of 10. Your
603. 21:08days are going to be long. They're going
604. 21:10to be brutal. The grind is real. And
605. 21:13many times, you're going to feel like
606. 21:14you're aging in dog years. But here's
607. 21:17the thing. In trading, what is weird is
608. 21:20you sort of have to go through this
609. 21:21entire breakdown process where you have
610. 21:25been broken so far that all the problems
611. 21:27you thought you had when you started are
612. 21:30no longer a concern. It's sort of like a
613. 21:32rebirth process we all have to go
614. 21:34through. I think we need to get that low
615. 21:37just so we really understand what's on
616. 21:39the line. Now, a funny story for you
617. 21:41here real quick. I remember when I was a
618. 21:44teenager, every time I would act up or
619. 21:46get out of line, my mom would get really
620. 21:48mad and she would look at me and kind of
621. 21:50point her finger with this evil eye and
622. 21:52she said, "If you don't get your act
623. 21:54together, I'm going to knock the be
624. 21:56Jesus's out of you." Now, still to this
625. 21:58day, I don't know exactly what a be
626. 22:00Jesus is is, but I do know when she said
627. 22:03that, what she meant is she's going to
628. 22:05knock the ignorance out of me and rewire
629. 22:08my brain right there on the spot. And
630. 22:10that's kind of what we have to do as
631. 22:12traders, right? We kind of have to knock
632. 22:13the Jesuses out of us and outlive our
633. 22:16pain and misery. That's the only way we
634. 22:19seem to be able to connect and
635. 22:20understand what this job is about. Now,
636. 22:23here's a tip to help you with it. For
637. 22:25each and every one of you who are
638. 22:26watching this right now, you've had some
639. 22:28big challenge in your life. Whether it's
640. 22:29a professional challenge, a physical
641. 22:31challenge, but there's been something
642. 22:32you've went for and you thought at the
643. 22:35beginning, you're overmatched. You're
644. 22:36just not going to do this. It's out of
645. 22:38your league. But you really put your
646. 22:39mind, your heart and soul. I mean, you
647. 22:41gave this everything you had. It was the
648. 22:43only thing in your life that was
649. 22:44important. And when you got to that
650. 22:46level, you just found some way to be in
651. 22:48the zone and you pushed through and you
652. 22:51achieved it. And when you achieved it,
653. 22:52you actually surprised yourself. So draw
654. 22:56from that story. You all have that
655. 22:58story. And why I'm saying that is
656. 22:59because the strength you need, it's
657. 23:02right there. That's where you're going
658. 23:03to get it from. Now, on to lesson number
659. 23:06seven, the final one. Most of you are
660. 23:08going to quit before you finally hit the
661. 23:11big time. The whole strain, the whole
662. 23:13grind, the whole market manipulation
663. 23:16garbage, just all going to get to you
664. 23:17and you're just going to walk out the
665. 23:19door in frustration. And here's what I
666. 23:21want to say about it. There's no shame
667. 23:22in quitting. I even did it a few times.
668. 23:25But here's what we need to understand
669. 23:27that you've got to understand. In my
670. 23:29opinion, everybody needs to spend a
671. 23:31minimum of four years in this business
672. 23:34before you truly understand what trading
673. 23:37is all about. Now, that doesn't mean
674. 23:39you're going to be broke and suffering
675. 23:41for four years. Doesn't mean you can't
676. 23:42make any money, but you have to be
677. 23:44around for four years till you've
678. 23:46experienced enough market cycles, enough
679. 23:48market manipulation, enough games, and
680. 23:50just really figured out who you were as
681. 23:52a trader, where you fit in. Then and
682. 23:55only then can you give yourself an
683. 23:57honest answer whether or not you can
684. 23:59make it. Now, if you ever reach that
685. 24:01point where you're convinced you want to
686. 24:03quit, I want you to ask yourself these
687. 24:05questions. Have you given it everything
688. 24:08that you've had, like 100%. Have you
689. 24:12exhausted every resource available at
690. 24:15your fingertips? [music] If the answer
691. 24:17to that is yes, then you can walk away
692. 24:19from trading and you can hold your head
693. 24:21up high and you can lose with dignity.
694. 24:24But if the answer to that question is
695. 24:26no, and you know you've left a lot on
696. 24:28the table, you can't quit because you're
697. 24:31just going to end up regretting it.
698. 24:33Anyway, I hope you enjoyed today's
699. 24:34video. Cheers.