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Market Mechanics Ep 32: Become a Disciplined Trader in 21 Days — Transcript

by Brad Goh (The Trading Geek) · 3,736 words · 602 segments · language en · Watch on YouTube

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0:00Most traders are inconsistent because of
0:03their strategy. They're inconsistent
0:05because they cannot trust their strategy
0:08when pressure hits. They don't have what
0:11I call the execution confidence.
0:14And the thing about confidence is that
0:16it isn't something that you're born
0:17with. It's a skill, right? Which means
0:20it's something that you can earn through
0:21reps. And that's what this 21-day at
0:25flow discipline challenge is designed to
0:27do. It's to force consistent reps under
0:31a trading plan with journaling until
0:34execution becomes automatic.
0:37Now, bear in mind that money is not the
0:40goal here, right? The goal of this
0:41challenge is not to make the most amount
0:43of money in the shortest amount of time
0:45possible.
0:46The goal here is to build, like I said,
0:49the execution confidence, right? It's to
0:51make it a habit to follow your trade
0:53plan, to be disciplined.
0:55And the reason why I picked 21 days is
0:57because science has shown that it takes
0:59around 21 days to build a habit. So,
1:02hopefully by the end of this 21 days,
1:05following your process should start to
1:06feel like second nature, right? It's
1:08like at the end of these 21 days
1:11it should feel weird not to follow your
1:12trade plan, right? Because now you're
1:14like so programmed, you're so
1:16indoctrinated to actually go and follow
1:18your trade plan, right? So, this is
1:20pretty much how you can rewire your mind
1:22to become a disciplined and consistent
1:24trader.
1:25So, here's the rules of the game. Over
1:27the next 21 days, you're going to be
1:29taking 21 trades that are fully in
1:32accordance with the trade plan.
1:34You can do this on a demo account, you
1:36can do this on a live account,
1:37completely up to you. Ideally, you
1:39should do it on a live account because
1:41it builds real power, especially when
1:44your real hard-earned money is on the
1:45line. But, you can obviously do it on a
1:48demo account as well, right? Because
1:49like I said, the goal here is to just
1:51build a habit to follow your trade plan,
1:53not to make money.
1:55So, here's the rules of the challenge.
1:57Out of these 21 trades, every single
1:59trade that you take, it must be aligned
2:02with your trade plan.
2:04It must be executed cleanly, which means
2:07you have to follow your risk management
2:09rules.
2:11And then you have to journal immediately
2:13after you close the position itself.
2:16Okay, so these are like the three
2:18criteria for every single trade that you
2:21take over the next 21 days.
2:23The goal of this exercise, like I
2:25mentioned earlier on, is not to make
2:27money. It's to build a habit of
2:28confident execution. Okay, just because
2:31you have to take 21 trades over the next
2:3321 days, does not necessarily means that
2:36you have to like follow that to a T.
2:38Because if you do that, you're going to
2:40end up forcing trades. You're going to
2:42end up forcing trades even though
2:43there's no clear opportunities in the
2:44market. Because that's just how the
2:46market is. On some days, there is no
2:49setup that fits your plan.
2:51So, you're allowed to skip those days,
2:53right? Because the one of the criteria
2:55is that every single trade you take must
2:57be aligned with your trade plan. So, for
2:58example, today is day five of the
3:00challenge, and then I see that this
3:03setup doesn't align with my trade plan.
3:05It doesn't fulfill my entry criteria.
3:08Then, I'm allowed to skip that trade.
3:10I'm allowed to skip that day itself.
3:12Okay, so the goal here is not to gamble
3:14every single day. It's not to force
3:16trades when there's no opportunities.
3:18The goal here is to build discipline
3:20through reps that is aligned with your
3:23trade plan.
3:25So, think of it like this. Yes, you are
3:27required to take 21 trades across 21
3:30days. But, it doesn't have to happen
3:34within the 21 days. If it takes you a
3:36little bit longer, 30 days, 60 days, 50
3:39days, that's completely fine. Just move
3:43at your own pace, but make sure you keep
3:45your standards high.
3:48So, the goal of this exercise is for you
3:51to internalize these five fundamental
3:54truths about the market, right? So, this
3:56is how I define execution confidence.
3:59Like I said, execution confidence means
4:00you have the conviction in your trading
4:02strategy, you have the confidence in
4:04yourself to execute your trading
4:07strategy. And the only way you can get
4:09to that that stage of enlightenment,
4:10right, of execution confidence is when
4:13you have finally embraced these five
4:16fundamental truths about the market.
4:18These are five truths that is quite
4:21renowned that are actually created by
4:24this man called Mark Douglas, which is
4:26one of the greatest of all time when it
4:28comes to trading psychologies. And the
4:30five fundamental truths basically states
4:32that number one, anything can happen in
4:34the market. So, at any given moment,
4:36price can shoot up $100, $1,000,
4:39whatever it is
4:41because anything can happen in the
4:43market, which also means that if you
4:44don't trade with a stop loss, you are
4:46going to get stopped out when something
4:48unexpected start happening.
4:50Now, now if you trade if you don't trade
4:52with a stop loss, you're going to lose a
4:54lot of money when something unexpected
4:56actually happens.
4:57And you don't need to know what is going
4:59to happen next in order to make money,
5:01right? A lot of beginners think that
5:02they have to predict what price will do
5:04next in order to profit from this
5:06market. When in reality, that's not
5:08true, right? All you need to have is an
5:10edge. And then over the long term,
5:13right, over a large sample size of
5:15trades, you will end up being
5:17profitable. There is a random
5:19distribution between wins and losses for
5:21any given set of variables that define
5:23an edge.
5:24What you basically means that wins and
5:26losses are randomly distributed. Just
5:29because you win this trade does not
5:31necessarily mean that you're going to
5:33win the next trade. Similarly, just
5:34because you lost the previous trade does
5:37not increase or decrease the likelihood
5:39that you're going to win or lose the
5:40next trade. It's all 50/50.
5:43An edge is nothing more
5:46than an indication of a higher
5:48probability of one thing happening over
5:50another.
5:51When you have an edge, which is in the
5:53form of a strategy, it gives you the
5:54competitive advantage. It increase the
5:57likelihood of you winning a trade, but
6:00it does not guarantee that you will win
6:02a trade. Right? So, that's what it means
6:04by by this rule right here. An edge just
6:06allows you to essentially put the odds
6:08in your favor. Just a little bit just a
6:10little bit, right? Not too much. It
6:12doesn't guarantee that you'll win.
6:13And every moment in the market is
6:15unique.
6:17History doesn't repeat itself, but it
6:19sure as hell rhymes, which means that
6:21when you're trading, you'll see certain
6:23patterns play out over time, right?
6:26Something happens in 2008 financial
6:28crisis, the next time there's a stock
6:29market crash, you'll see the same sort
6:32of patterns appear in the market, right?
6:33The fear index start skyrocketing,
6:35people start panic selling, right? So,
6:38that's what I mean when I say history
6:40doesn't repeat itself, but it sure as
6:41hell rhymes.
6:43And that ties into this quote right
6:44here, which says that every moment in
6:46the market is unique.
6:48Just because the pattern is there,
6:50doesn't mean that is the exact same
6:52pattern.
6:53Right? For example, in the 2008
6:55financial crisis, let's say stocks can
6:58crash by, once again, just giving you a
7:00example, stocks crashed by 58%.
7:03This time round during the COVID-19
7:05pandemic crisis, now stocks have crashed
7:08by, let's say, 40%. It's the same
7:11pattern, which means stocks crashing
7:12during a crisis, but it's a different
7:16degree, right? Like it might take a
7:17different uh duration for the stock
7:20market to actually crash that
7:21percentage, right? Crash that 40%. It
7:24might take um 1 hour for the stock
7:27market to crash 50% back in the 2008
7:29financial crisis, but right now it might
7:31take
7:311 day, right? For the stock market to
7:33crash by 40%.
7:35And it's the exact same thing right
7:36here, right? Every single moment in the
7:38market is unique. So, even though
7:39patterns repeat itself, it does it's not
7:42always it's not going to be the same
7:44pattern. It's not going to be exactly
7:45the same.
7:47If these truths aren't real to you yet,
7:49you will keep hesitating before you
7:51enter a trade, you will keep cutting
7:53winners early, you will keep revenge
7:55trading, you will keep over trading, and
7:58most importantly, you won't be able to
8:00trust your trade plan
8:03or even yourself.
8:06So, this exercise fixes that, right?
8:08This challenge fixes that. Because as
8:10you take reps, as you journal your
8:12trades, you start to experience these
8:15five fundamental truths in real time.
8:18When you're going through a losing
8:19streak,
8:20then you understand that there is indeed
8:22a random distribution between wins and
8:24losses, right? Because
8:26just because I'm have lost five trades
8:28in a row does not mean I'm going to lose
8:29the next trade. I could actually win the
8:31next trade, right? Because it's 50/50.
8:34So, that is the point of this exercise,
8:36right? It's to do this challenge over
8:38and over again,
8:40and just get to that state of execution
8:42confidence.
8:44Right? So, when you reach that state,
8:47this is where
8:49you will become what I call a consistent
8:51trader. Someone who's able to just
8:53follow the trade plan, someone who
8:54actually have
8:56a lot of trust in the trade plan because
8:58they know that
9:01they don't need to win the next trade.
9:02They are fully detached from the outcome
9:04because they fully embrace the truth
9:06right here.
9:07So, if you don't reach that state of
9:09execution confidence after these 21
9:11days, after these 21 trades, I highly
9:14recommend you to repeat this exercise
9:15until you do.
9:17Which means that if at the end of these
9:1921 trades you still find yourself trying
9:21to gamble in the market, trying to
9:23predict what price will do next, trying
9:25to
9:26uh like attach yourself to the outcome
9:29of any given trade, then go and do this
9:32exercise again.
9:34Do another 21 trades, and then do
9:37another 21 trades if you can't accept
9:38this truth until you eventually embed
9:41this truth into your subconscious mind.
9:43Until you start believing all of this
9:45truth with every fiber of your being.
9:48All right? That's how important this is.
9:52So, like I said, every single trade
9:54inside in this challenge right here, you
9:58want to make sure that you follow these
9:59three things right here. And in order to
10:01help you do that, you can use Edge Flow.
10:04All right? So, it's going to be this
10:05entire loop. You start your trading
10:07session, you only take A+ setups,
10:10and you execute with your trade guide
10:12and your risk panel, and you journal
10:14immediately using the instant journal
10:15flow, and you close your session, and
10:17you do your end-of-day review.
10:19So, obviously, I'm not going to go
10:20through each one of these steps in this
10:22video, right? Because we already have
10:23done a bunch of lessons covering each
10:25one of these steps, right? Like how to
10:26do your pre-market routine, how to start
10:28your trading session properly,
10:30how to identify your A+ setups on the
10:32chart itself,
10:33and also how to execute trades with your
10:36trade guide and your risk panel, and how
10:38to journal immediately after you
10:40actually get out of a trade, and how to
10:42do your end-of-day review, right? So,
10:43all of these lessons have already been
10:45covered inside the academy, inside this
10:48series of professional trading lessons
10:50right here. So, make sure you go and
10:52check that out, right? But basically,
10:53you want to be doing these five steps on
10:55a day-to-day basis for the next 21 days.
10:59All right? That's the loop. Just repeat
11:01it 21 times.
11:02If by the end of these 21 days, you
11:05still feel fear, hesitation, or you're
11:07still repeating rules, then you haven't
11:09completed the real goal yet. And like I
11:10said, you just want to repeat this
11:12exercise. Do it for another 21 days, or
11:14do it for another 21 trades.
11:18Hell. Okay, cool. Here's the thing. At
11:20some point in this challenge, you are
11:23going to take a few losses in a row.
11:25That's just the nature of the game,
11:27right? Because if you're taking 21
11:28trades, you're probably going going like
11:30at least, I don't 10 of them, right?
11:33Five of them, six of them.
11:35Right? But you are going to get to a
11:36point where you take a few losses in a
11:39row. You execute a trade, then you lose.
11:42You execute another trade, you lose. You
11:44execute another trade, you lose. And you
11:45start to panic. You start to doubt
11:48yourself, right?
11:50Understand that when self-doubt start
11:52creeping in,
11:54it's the most dangerous disease. Because
11:57once it enters your mind, it starts
11:59spreading.
12:00Now that one loss turns into you
12:04contemplating your existence in this
12:06world.
12:06You reevaluating whether like trading is
12:09even the right field to actually um
12:12master, right? You you start to go into
12:14this now as spiral and you start to
12:15over-catastrophize
12:17your failure.
12:19You start questioning your strategy, you
12:20start questioning your ability, you
12:21start questioning your desire to become
12:23a successful trader. And this is where
12:25you start doing stupid things.
12:27You play stupid games, you win stupid
12:29prizes.
12:31So, when fear or doubt shows up during
12:33these 21 days, during these 21 trades,
12:35like I said, it's not a matter of if,
12:38it's a matter of when. It is going to
12:40show up, right? So, when it does show
12:41up, I want you to tell yourself,
12:44"Yo, I'm here to complete the 21 trades.
12:48I'm not here to make money today.
12:51If I lose, it's okay. I'm building
12:54execution confidence. That's the goal
12:56right now. It's not to make money, but
12:57it's to build execution confidence. And
13:00when I do that, eventually the money
13:02will come later."
13:05So, that's what I want you to tell
13:06yourself,
13:07right?
13:08If you start doubting yourself, if you
13:10start
13:11fearing, you know, start
13:13over-catastrophizing the situation,
13:15thinking that you will never succeed,
13:16and you're going to fail, you're you're
13:17you're you're going to die of starvation
13:19because uh you are going to suck at
13:21trading,
13:22pause, calm down, take a deep breath,
13:25tell yourself, "You are here to build
13:28execution confidence, not here to make
13:30money. That's it.
13:33And the thing is, at some point of time,
13:35you are going to encounter a losing
13:37streak, right? Like I said, five losses
13:39in a row, that might be nothing. But
13:41what if you encounter a streak where you
13:43lose 10 trades in a row?
13:4510 trades in a row. Does that mean that
13:47your strategy sucks? Does that mean your
13:49strategy is broken? Does that mean that
13:50trading is a scam? Does that mean that
13:52your brokers are out to get you?
13:54Absolutely not.
13:56A losing streak doesn't mean your
13:58strategy broke.
13:59It just means that you are meeting
14:01reality.
14:02It just means that you are participating
14:05in this unpredictable game of day
14:08trading.
14:09Right? And
14:10that's what makes the game worth
14:12playing.
14:13When you encounter a losing streak, this
14:15is where you can finally internalize
14:19truth number three,
14:21that wins and losses are randomly
14:23distributed.
14:25You will never ever know for sure
14:26whether next trade is a win or a loss.
14:29And that's exactly why risk management
14:31matters.
14:33And just because there's a random
14:34distribution, doesn't mean there's
14:36random results.
14:38Because your discipline is what shapes
14:40the equity curve.
14:42Discipline turns randomness into a
14:45pattern over time.
14:48All right, let me repeat myself.
14:49Discipline turns randomness into a
14:52pattern over time.
14:54Randomness of the market, out of your
14:56control. Whether you are disciplined,
14:58how you show up to the market, that's
15:00within your control.
15:02Which means that if you focus on the
15:04things within your control, you know,
15:05you are disciplined when it comes to
15:06your actions,
15:08it kind of reduce
15:10the randomness in your trading results.
15:14Okay, like just think about it in terms
15:15of physics.
15:17When you are disciplined, you are
15:18building structure. You are building
15:19order.
15:21And when you build order, you of reduce
15:23the amount of chaos, the the entropy
15:25that is in the world right now, right?
15:28So, that's what you do when when you
15:29have when you have discipline.
15:31And the thing about your trading
15:32outcomes is that most outcomes cluster
15:33in the middle, but sooner or later you
15:36will get a big win or a big loss. You
15:38avoid a big loss by keeping your risk
15:40consistent. You capture the big win by
15:43letting your edge play out.
15:45So, your job during a losing streak is
15:47simple.
15:48Stay at the same risk, keep your risk
15:50consistent, 1%, 2%, whatever it is, stay
15:53within your rules,
15:55and keep journaling, right? So, as long
15:57as you follow these three things right
15:58here, you'll be fine.
16:00This too shall pass, right? Eventually
16:02the losing streak is going to pass,
16:03eventually you're going to get back your
16:04mojo, eventually you're going to get
16:07back your your wins. I just want to I
16:09like heavily emphasize that you need to
16:11repeat this exercise if you still
16:13doesn't feel confident in your trade
16:14plan after these 21 days. If you still
16:16haven't internalized these five
16:18fundamental truths.
16:20You just want to repeat this exercise
16:21until execution confidence becomes a new
16:24norm.
16:25Until you are so locked in on following
16:27the process that you stop caring about
16:29the outcome.
16:31That you no longer care about the money
16:32and you only focus on
16:35the process of becoming a skilled
16:37trader. You only focus on executing your
16:39trade plan to the best of your ability.
16:42And the ironic thing is when you stop
16:45obsessing over the money, you stop
16:47attracting more of it.
16:49Because now your time, your money, and
16:52your attention are focused on the only
16:54things that increase your odds
16:56long-term.
16:57And that is clean execution,
17:00discipline, and consistency.
17:04When you focus on the process, the
17:06results take care of themselves.
17:08Right? So, that's the point of this
17:09entire challenge right here.
17:11Now, if you want accountability, I
17:13highly recommend you to share your
17:15progress publicly, right? Just document
17:17this 21-day challenge on your social
17:20media itself.
17:21So, what you want to do is to make sure
17:24that you post a daily or weekly
17:25check-in, right? Just like what I've
17:27taken right here, right? Just a photo of
17:29you using Edge Flow, right? Maybe a
17:31photo of the Edge Flow dashboard or a
17:33photo of your Edge Flow trading journal,
17:35and just post it on your social media.
17:37And when you do that, you want to tag
17:39Edge Flow on Instagram, edgeflow.ai on
17:41Instagram, and tag Edge Flow AI on X if
17:44you're posting on Twitter, right? Which
17:46is X.
17:48And you also want to make sure that use
17:49the hashtag Edge Flow challenge so that
17:51we can see it and we can hold you
17:52accountable, and we are also going to be
17:54reposting some of the best check-ins and
17:56progress updates, right? So, make sure
17:58you clean up your desk, have a nice
18:00aesthetically pleasing photo right here,
18:02and we're going to repost it.
18:04All right. So, uh to help you
18:06to actually document your journey, we
18:08have actually included this structure
18:10for you to follow, right? So, basically,
18:11when you're posting, you know how you
18:13need you need to write a caption, right?
18:14You can write day number of 21, right?
18:19Day five of 21, day six of 21 of the
18:22Edge Flow challenge, and then whether
18:23you have taken a trade today, yes or no,
18:25and what was the result of the trade,
18:27whether you have made five R, two R, or
18:29whether you have lose $500, $300,
18:32whatever it is, and whether you follow a
18:34trading plan today, and what is the one
18:36lesson you learned today. And then just
18:38put hashtag Edge Flow challenge and tag
18:40us on the social media itself.
18:42So, here's an example of what that will
18:44look like, right? If you're posting on
18:45X, it's the same thing as if you're
18:47posting on Instagram. Just take a photo
18:50of Edge Flow dashboard or trading
18:51journal or Edge Flow in general, like
18:53any feature that you like.
18:55And then just post it on your Instagram
18:57and just follow this exact format right
18:58here. Today is day number out of 21
19:01days. I've taken a trade. Uh this is my
19:04result. I've actually followed my trade
19:06plan, and this is the lesson that I
19:08learned today. I learned that I should
19:09be wait for I should wait for
19:10confirmation. I should make execution
19:12feel effortless. No confirmation, no
19:14entry. And over time, these lessons
19:17start compounding.
19:19Yep, so that's the format you can
19:20actually follow.
19:22I just want to end up by saying that
19:24this challenge this challenge really
19:26isn't about making money in 21 days.
19:29It's about becoming the type of trader
19:31who makes money for the next 21 years.
19:34Take 21 clean trades, journal them,
19:38review them, and prove to yourself that
19:41you can follow a process under pressure.
19:43Start changing your identity.
19:46You are no longer
19:48the unprofitable trader
19:51who is inconsistent with his actions,
19:53who repeat the unconscious patterns, who
19:56is constantly self-sabotaging themself.
19:59You are no longer that guy. From today
20:01onwards, as you embark on this 21-day
20:03challenge, you are a professional
20:06trader. So, think, act, and feel like
20:09one. And when you feel like one, you
20:12start taking these 21 trades days in
20:13accordance with your trade plan, you
20:15start getting the results of one. Right?
20:17Remember, discipline turns randomness
20:20into a pattern. So, do this 21-days
20:23EdgeFlow discipline challenge and you
20:24will stop being at war with your
20:26emotions. You will finally start trading
20:29like a system.
20:31And once execution confidence becomes a
20:33default mode, becomes your operating
20:36system,
20:37profitability is only a matter of time.
20:41With that said, let's get to work. Start
20:43doing this challenge, share your
20:44progress on your social medias itself,
20:47tag EdgeFlow, and hashtag EdgeFlow
20:49challenge. Let's go.

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