How to Stop Staying Stuck as a Trader
Summary
TLDRThe video script discusses the challenges of trading, emphasizing the importance of understanding market trends and structure. It uses the metaphor of climbing rocks to illustrate the gradual learning process in trading, where traders must avoid the trap of constant change and instead build a solid foundation of knowledge. The speaker shares insights on recognizing market movements, supply and demand, and the significance of sticking to a disciplined approach to achieve profitability and avoid the common pitfalls that lead to failure.
Takeaways
- 📈 Trading is difficult due to the vast number of approaches and the need to master a specific methodology to be successful.
- 🔄 The 'M Effect' or trend following is presented as a preferred trading strategy that emphasizes proper market structure understanding.
- 🪨 The concept of 'rocks' symbolizes independent trading concepts, each representing a step in a trader's learning journey.
- 🤔 The challenge for traders is to resist the temptation of comfort and novelty, which can lead to a cycle of perpetual learning without mastery.
- 🚫 Many traders quit or get stuck in a loop of learning new strategies without fully mastering any, leading to a lack of profitability.
- 💡 The importance of understanding market movement through supply and demand dynamics is highlighted as a key to successful trading.
- 📚 Education in trading should be gradual, building upon foundational knowledge to develop a robust trading system.
- 🔑 Mastery of trading comes from sticking to a learning path and avoiding the trap of constantly seeking new strategies without applying them.
- 🧠 The learning process in trading is likened to academic education, where foundational concepts are built upon over time.
- 📉 The script emphasizes the importance of recognizing when not to trade, as part of a disciplined trading approach.
- 🌐 The concept of trading in harmony with market trends and understanding the larger supply and demand areas is crucial for entry and exit points.
Q & A
What is the main challenge that traders face according to the speaker?
-The main challenge traders face is the multitude of approaches to trading and the difficulty in mastering a single, consistent method, which leads to a perpetual cycle of switching between different strategies without achieving proficiency.
What does the speaker refer to as 'the M effect bubble'?
-The 'M effect bubble' is a term used by the speaker to describe a trend following or structure following approach to trading, which emphasizes proper understanding of market trends and structures as a foundation for successful trading.
Why does the speaker compare trading concepts to rocks?
-The speaker uses rocks as a metaphor to represent independent trading concepts. Climbing each rock symbolizes mastering a concept, and the difficulty of moving from one rock to another represents the challenge of learning new trading strategies.
What does the 'foam mattress with snacks and steak' represent in the script?
-The 'foam mattress with snacks and steak' symbolizes the comfort zone or the temptation to revert back to easier, less effective trading strategies after achieving some initial understanding or success.
What is the significance of the '90% of traders' statistic mentioned by the speaker?
-The statistic highlights that a large majority of traders never progress beyond the initial stages of learning and often quit or remain stuck in a cycle of switching between trading strategies without achieving mastery.
What does the speaker mean by 'trading true structure'?
-Trading true structure refers to understanding and following the natural patterns and trends of the market, rather than trying to predict or manipulate them, which is a key component of the speaker's preferred trading approach.
How does the speaker describe the process of learning to trade effectively?
-The speaker describes the learning process as gradual and building upon initial understandings, similar to constructing a house from the foundation up. It involves making incremental leaps in understanding and avoiding the temptation to jump between strategies.
What is the importance of understanding supply and demand in trading according to the script?
-Understanding supply and demand is crucial as it forms the basis of market movements. Recognizing how supply and demand validate price movements can lead to more accurate predictions and better trading decisions.
Why does the speaker emphasize sticking to a single trading approach?
-The speaker emphasizes sticking to a single approach to avoid the treacheries of falling back into a cycle of learning and forgetting. Consistency in learning and applying a single approach is key to achieving mastery and profitability.
What does the speaker suggest is the key to breaking out of the cycle of perpetual learning without progress?
-The key to breaking the cycle is to make a commitment to a single trading approach and to continue learning and applying it consistently. This gradual accumulation of knowledge leads to a deeper understanding and eventual mastery.
How does the speaker describe the difference between a novice trader and a proficient one?
-The difference lies in the depth of understanding and the ability to apply that understanding consistently. A proficient trader has a solid foundation and a clear template for entries, management, and exits, whereas a novice trader may lack this structure and understanding.
Outlines
💎 The Challenge of Trading: Mastering Independent Concepts
The speaker introduces the concept of trading as a challenging endeavor due to the vast number of approaches one can take to engage with the markets. They liken the process to climbing rocks, where each rock represents a unique concept or strategy. The 'M effect' or trend following is presented as a preferred method due to its profitability and educational value. The speaker emphasizes the importance of understanding market structure and trend to build a solid foundation in trading. The analogy of the 'foam mattress' and 'snacks' illustrates the temptation to revert to comfort or less challenging methods, which can lead to a cycle of perpetual learning without mastery.
🌐 The Importance of Stepping Stones in Trading Education
This paragraph delves into the idea that trading education should be a gradual process, akin to climbing from one rock to another, each representing a deeper understanding of market dynamics. The speaker warns against the pitfalls of jumping from one system to another without fully grasping the underlying principles. They discuss the importance of recognizing and leveraging supply and demand within market structures to identify trend opportunities. The paragraph also touches on the concept of fractals and time frame analysis, suggesting that a comprehensive understanding of these elements can lead to more effective trading strategies.
📈 Building a Robust Trading System Through Sequential Learning
The speaker continues to build on the theme of gradual learning, emphasizing the need to construct a trading system brick by brick, starting with a foundational understanding of market trends. They discuss the process of learning to identify and capitalize on market movements, using supply and demand as a framework for entry and exit points. The paragraph highlights the importance of sticking to a learning path and not being swayed by the allure of new, unproven strategies. The speaker also introduces the idea of using higher time frames for context and lower time frames for validation, creating a multi-layered approach to trading.
🚀 Achieving Mastery and Profitability in Trading
In the final paragraph, the speaker discusses the culmination of the learning process, where traders develop a mastery that sets them apart from the majority who remain in a cycle of perpetual learning without achieving proficiency. They stress the importance of understanding market conditions and having a clear template for entry, management, and exit strategies. The speaker also addresses the gap between a trader's proficiency and the average person's understanding, illustrating how this gap leads to more informed and profitable trading decisions. The paragraph concludes with a reminder of the high percentage of traders who quit before reaching a proficient level, urging viewers to stick with their learning process to find true profitability.
Mindmap
Keywords
💡Trading
💡M Effect Bubble
💡Structure
💡Trend Following
💡Supply and Demand
💡Education
💡Conceptual Niche
💡Loop
💡Entry
💡Profitability
💡Time Frames
Highlights
Trading is difficult due to the vast number of approaches available, often leading to confusion and lack of success.
The 'M Effect' or trend following is a preferred method for its profitability and educational benefits.
Understanding market structure is fundamental but often poorly taught, leading to improper trading practices.
The importance of learning to trade true trends and structures as the basis for education in trading.
The challenge of scaling the 'rocks' of understanding in trading, which represent independent concepts.
The 'nice foam mattress' analogy represents the temptation to revert to comfort and simplicity, hindering progress.
The 'perpetual cycle' that most traders find themselves in, unable to progress beyond a certain point.
The necessity to leap from one 'rock' of understanding to another, building upon each new concept.
The concept of supply and demand as a foundational principle for market movement and trading decisions.
The importance of not just understanding trends, but also how to identify and capitalize on them effectively.
The idea that education in trading is a gradual process, building upon small steps to achieve mastery.
The risk of falling back into old habits or comfort zones, which can derail a trader's progress.
The necessity to construct a trading system from the foundation up, rather than picking up pre-built systems.
The importance of recognizing and sticking to a trading approach to avoid the pitfalls of constant change.
The concept of fractal supply and demand across multiple timeframes as a method for identifying entries.
The significance of understanding market conditions and when not to trade as part of a trader's education.
The gradual development of a trader's ability to identify and manage trades effectively over time.
The gap between a trader's proficiency and the average person's understanding, highlighting the importance of continued learning.
The high percentage of traders who quit before reaching a proficient level due to the challenges of learning.
Transcripts
hey how's it going welcome to mfx so
this right here in front of you these
little rocks these little circles
whatever you want to call them are
actually the reason that trading is very
very hard for a lot of people and why a
lot of people really never make it
anywhere in their trading careers and I
kind of want to cover them with you
right now so that as you continue you
hopefully can get better and a lot
quicker okay so very simply the way I
want you to think about these rocks are
as kind of independent Concepts okay so
you start off as a Trader this is
literally you whatever you want to call
it and the problem that we all
experience is there are close to 5
million trillion billion whatever you
want to call it different ways to
actually approach the markets there's
there's many ways to approach the
markets okay you might have started in
any discipline it doesn't really matter
but there's many ways to approach the
markets okay the one that I use is
personally the one that I like the most
because of course it made me the most
profitable made me the most money and
has proven at least to me through
education of others that it has built
and brought profitability to a lot of
other people so what we're going to
assume is we'll call this the uh in this
scenario here the M effect bubble or
otherwise known as Trend following
structure following proper structure
proper Trend right because as you guys
know I talk about this a lot a lot of
the stuff in the overall space actually
teaches you structure very poorly where
you know you'll learn how to use
structure and then all of a sudden
you'll be taught to wait for this or
wait for this or wait for this and then
you'll be taught to trade inside of this
to come back to the zone to come back
down to make a new break to come back to
a Zone to come up Etc right so this is
what I call impr proper structure
understanding which is fine you know
it's it's a it's a version of of it that
can work for you but the me effects way
is basically to understand that we trade
true Trend true structure and that's
where the education starts right so
we're going to talk about this
specifically in the ment effect sense of
what you kind of learn here but this is
going to apply no matter what so I want
to imagine I want you to imagine that
this is you and I want you to ask
yourself okay how hard okay is it to
scale this rock you know how hard is it
to get on top of it um it might be a
little hard right you'd have to put
hands on you probably have to kick your
leg up and then boom you get on top
right and now you're on this you're on
this rock so you made your first your
first step is what we can call it okay
now upon making that first step what
actually happens is you sit upon this
Little Rock of understanding um and then
what happens and this is a very very
treacherous and scary thing is that down
here okay you have a very very nice a
super nice nice okay a super nice nice
foam mattress okay and next to the foam
mattress you have snacks and steak and
whatever else you guys like to eat okay
so that's this little this little area
down here and that area actually
represents another Little Rock okay it
actually represents another potential
Little Rock So this could be another
system this could be the new algorithmic
system this could be the new 9:45 a.m.
uh trading system this could be the new
breakout system whatever it might be
okay this represents that so what tends
to happen is that people take the step
back down because well it's nice you
know there's a nice fo mattress there's
snacks there's steaks and it appears
like you found some new Grail you've
struck new gold and as a result you end
up coming back to the guy here and a lot
of the time most Traders this is
actually 90% of Traders uh before
quitting end up in this little Perpetual
cycle right here this is the cycle of
close to everybody that's watching this
video right now if you just found this
video it's actually very likely you're
in this cycle right here because you
found me randomly right you haven't seen
any of my stuff you haven't learned
directly from me you maybe been learning
from other areas you maybe even have
years under your belt and all of a
sudden you found yourself here this is
where a lot of people spend their entire
trading careers until they quit so most
people end up quitting before they even
reach let's say the next Boulder um but
what's interesting is let's say you then
decide to okay you know I'm starting to
learn I'm starting to learn that the
market moves through these fundamental
ways of of structure uh through a
fundamental way of trend and all of a
sudden you say screw coming down to the
nice mattress you know I really want to
know what's going on and you make the
leap right you jump you barely grab onto
this oh almost full you kick
yourself up boom you kick yourself up
and boom you end up on the Rock and this
rock can represent another element of
that concept right another concept but
now where you take for instance the
structural understanding and you turn it
into a understanding of how supply and
demand moves right how Supply is formed
how demand enters and how that actually
formulates the the the rules for an
actual move so if a lot of you know okay
Down Below on mea.com this is this is
course material specifically from the
portal as you guys know but the
underlying thing and you can take notes
on this if you want so again I don't
mind sharing this for free it's just I
have it laid out very well within the
course within the team because I want to
teach someone kind of from the get-go to
a professional how to think about the
market but this is underlying how a
market moves right it creates and moves
as a result of demand through demand
validation or Supply validation in this
case this is a game of supply and demand
and this is an example to the Buller
side where as demand validates price
really wants to move and that starts the
first U mode for a structural delivery
or for a trend-based delivery is just
the problem now once again is that you
can only get to this understanding if
you allow yourself to key into and take
that next leap or take that next step
from an initial understanding that hey
the markets are actually Trend related
and sometimes it takes multiple of these
things right here without quitting to
make the assessment for yourself and see
it for yourself that hey there actually
is a conclusion that I can draw about
the market in in the in the effect that
it actually moves in One Direction and
often times when that direction starts
and you can pinpoint that direction and
you understand how Market delivers that
direction and that delivery is so clean
and perfect that you could Now look for
a position within it and and basically
hold on to it until it delivers to King
the call whatever you you know it just
delivers beautifully a lot of people
stay in this in this Loop forever until
they find their first step where they're
like wow this is actually phenomenal
right I'm finally understanding that
this is what creates moves I'm no longer
interested in taking the next you know
rabid jump the next rabid jump looking
for the next potential course next
potential course and they make the jump
to the next step of what might be a
trend structural-based approach where
they start to learn the concept that can
be um built upon it almost like a house
right you're constructing the foundation
you're you're laying the concrete then
you're laying the the wood perfectly on
top you're perfectly isolating it
whatever it is right you're building
that house properly from the bottom up
if you just try to pick up a house and
drop it somewhere it'll work you'll have
a house but it won't be sturdy right and
it will fall over and you will end up
back in the bottom right so this is why
uh from an educational perspective there
are steps that are taken to actually
ensure that there's a progression in
terms of how you think which is why a
lot of people never get out of this
little area here and they stuck in that
Loop forever and the few that do still
have a very likely chance due to the
fact that without proper understanding
without proper education you stand a
very very high chance of falling back
down into Comfort or finding yourself
back into a new skill set right because
this nice foam or or uh snack or steak
does not have to just be a new concept
or another way to approach the markets
this could be something happening in
your life this could be a new skill set
that you want to learn this could be a
new job that you want to get this could
be a new responsibility that you're just
going to start taking care of and you
start to forget get more about trading
and all of a sudden you find yourself
back in this Loop right and again if 90%
of people are trapped here you know over
time right if you start and you end up
in any of these Loops right where you
don't kind of allow yourself to grow in
understanding to the point where you
have Mastery to the point where you can
actually be profitable you end up stuck
with what we can call the percentage the
percentage of people that fail right and
that percentage is very high of course
as it is in any skill set is just in
trading uh this it seems a lot higher
Because unless you have the skill set
mastered you're not going to be making
any money right because trading is the
only industry in the world where the
work that you're doing does not mean a
reward until the very very end because
you can only start to actually reward
yourself for the stuff that you're doing
once your system is truly profitable in
making money right where every trade
leads to a result that's going to grow
the
over arching Equity curve to new highs
to new highs and start making you actual
money in your Equity curve right but a
lot of people never even get to that
point because well it's hard right it
takes a lot of time so all of these
rocks here kind of act as stepping
stones of Concepts within a niche within
a conceptual Niche or an approach to the
market that you're learning right and
it's very important that if you're
serious about this that you look to
stick to it right because each one of
these hold the Treacher the treacheries
the treacheries of having to fall down
and kind of restart and kind of have to
go back and kind of re-evaluate what
you're doing otherwise what happens is
you might have that initial
understanding and this is kind of from
my own personal experience of mentoring
over you know 10 to 20,000 people over
my uh overall educational career and and
making amazing Traders out of it and my
personal trading having improved right
what we start with is we start to see
that hey prices do actually tend to move
in structural Trends right and as we
understand that we start to understand
how that's layered with the movement of
for instance supply and demand and then
we start to recognize how that supply
and demand can be potentially viewed
fractally across a number of time frames
where if of this happening we can now
watch for entries along these same
entries that we saw here just inside of
that area so you start to learn how to
overlap time frams and you start
understanding how that same
understanding of supply and demand is
now used alongside that then you take
that to the next level and you start
understanding how that works even
further across time frames and how we
basically can start to buy stop versions
of these or sell stop versions of these
to get into very very clean entries
across number of time frames because
then we learn that these things occur
within occurring larger supply and
demand areas right so this is where you
have overall structure inside of that
structure you have structure and that
structure breaks down as it starts to
break up it starts to create supply and
demand and that supply and demand gives
you actual real areas of Entry without
ever trading randomly back to random
areas or breaking down or anything like
that and starts to make real moves right
and this goes kind of hand in hand as I
kind of look at this with some of the
stuff I kind of showcase here now again
this whole thing as well as all the
course material that goes with it with
real proper understanding from the
get-go to the very very end is actually
available to all MX members as well as
the screener as well as some other
really cool stuff so you can check it
out below but you don't need it right
you can use this video itself to
understand firsthand how you want to go
about your learning so please just stick
to something and stick it through
because that's the only way you're
actually going to find profitability um
and you can see the same kind of
examples here actually maybe I can find
some better examples for you guys um
yeah so these are some of the examples
I've been I've been mainly working
through recently okay but basically you
have those structural deliveries that
start to across multiple time frames in
this case on the 65 minute or whatever
and they lead to overall formations of
demand and within their new demand and
within their new demand all of which
produce an opportunity for an entry
which is actually one of the reasons I
took this entry myself okay but that is
all um that is all still a
buildup of an extra understanding to
what's going on right so this is you
taking those little leaps and notice as
you're taking these little leaps they
are easier and easier to take they still
might be hard just like the initial leap
to the first step can be a little bit
hard and then the next one's going to be
a little bit hard and the next one's
going to be a little bit hard um they're
able to be done because you have the
prior understanding that you carry to
each ongoing leap right because this is
how education truly works this is how
we've all been taught to actually learn
this is actually if any of you that are
in school in college graduated college I
graduated college myself anyone that's
done that has been through this right
where you don't learn the main thing
you're going to college for or the main
things that your job is going to require
you don't learn the the intricate things
that you learned maybe in college or at
a higher level high school course in
elementary or middle school it doesn't
happen you get preconditioned to
understand how to think and then how to
grow upon that thought so instead of
starting with you know for any of you
for any of you chemistry Majors out
there that have done like the whole you
know you know electron ring
configurations or whatever they are
right it's you don't always start with
this you start with a simple
understanding of here's a gas here's a
thing here's a solid okay I don't
actually remember the full education
that I used to take in from this it was
a bad example but you never start at the
at the finale you start at something
that's very minuscule something very
small you make that first step up and
then from there you grow and
understanding and you grow it and you
grow it and you grow it and that's
exactly what learning the trade is going
to be like and it doesn't matter who you
learn from I want you to remember that
you can even learn completely for free
online if you want I'm going to continue
to release uh hopefully very helpful
content over the time of this YouTube
career if you're not part of the team or
anything you don't want a more um kind
of structur structure-based approach
that's going to do the same thing where
over time your understanding becomes a
little bit better than the understanding
that you had prior and all of a sudden
right as you make another tiny little
climb to another Point here all of a
sudden you have a full understanding of
how you want to go ahead and trade an
overall system you start understanding
that you know there are a lot of points
in time that you're actually staying out
in the times that you're staying in you
know you have a higher time frame or a
context time frame as I call it EVC or
you also understand how to think in time
frames you start understanding that
you're only going to start looking at
Price when it's truly starting to make a
proper stage two and then you can start
watching in these areas for entries and
then what you'll do is you'll start to
look inside of those areas on your
validation time frames on your lower
time frames for the actual proof that
you know validation or new stages are
coming into the market and then you look
to take those higher through the entries
within these areas and those become your
entry time frames and within those
entries you start to see proper buildups
of what we call MBS which are you know
fractal supply and demand validation so
you start to look for buys just like
this through a high or buys through a
high and you look for price to basically
so something along the lines of this
probably right and you look for price to
do this and you look to take the buy
through that or the buy through that and
then you look for that move right there
as it validates itself so as this move
validates itself you look for that to be
the start of hopefully what you saw here
which would have been the entry around
here which leads to a proper delivery in
price which is a real Trend right and
then as everyone else around you is
stuck wondering how are they always in
this why didn't they get in here or here
how are they you know how are you in
this what do I do how do I get in this
instead you start recognizing that this
is not a time to get involved in a trend
the proper time to get involved in the
trend is when the trend starts to begin
to show you that it wants to make that
move and then that movees delivery is
actually the work of what you did prior
paying off and then you look at your
system and you're like wow you know I
have a pretty good system this isem gets
me into Trends keeps me in Trends keeps
me out of really bad action I don't
trade all the action that's bad I don't
I don't touch price at all I don't show
up every day and you have the average
kind of Trader the average person come
to you and
say why don't you take a trade today
what's going on why don't you take a
trade on this exact pair at this exact
moment how are you not taking trades why
why is everything so choppy what do I do
and you're like dude you your first step
is to understand right your first step
is to understand that one there are
conditions that create a good Market to
trade and you don't even understand that
there are conditions or there are
markets that are in a condition that
should be traded or shouldn't be traded
so your initial question of
understanding why I didn't even touch
something is it's just lost right
because there's no Foundation there's no
there's no there's no concrete laid down
nothing's nothing's on the floor so the
point of this video is just to remind
you that no matter how you go about your
education
going forward you need to have some kind
of understanding that the learning
process is going to be very gradual it
doesn't have to be slow slow but it's
going to be gradual and those graduals
are going to build up to an
understanding right so from the floor if
we are to draw out the floor if I go
like this very simply make this really
thick if I draw the floor and I just
draw it out in time like this and I draw
the top here what you don't know is that
after some time this right here becomes
the difference okay this right here
becomes the difference in your
understanding to the average person that
you will normally meet and see in any
given space and all of a sudden the same
kind of questions that you might pose
now you know how did you not trade today
how did you not get caught in all this
chop how did you not take four trades
this given day how did you just take one
trade and had it play out how did you
know to get involved in this area here
for this move and then how did you stay
in it how are you managing this thing
all the way through how did you know
when to break even how did you
understand when to manage your risk how
did you know to start watching for
trades here but not here what about a
higher time frame was the thing that
stopped you and if it did stop you what
if it didn't stop you why did you fully
stay out of price here and how was it
and why is it the case that when you
know there's a market that's just doing
you know something like this and you
completely didn't trade it how did you
know and again all of that comes from
now what you would just view as your
overall template for an entry your
overall template for uh management your
overall template for partialing for
taking it and all of a sudden you start
to notice the Gap um The Gap so this is
the gap right here you start noticing
the gap between where you are and the
proficiency level you have and the
profitability that you're finally
starting to see because of the
understand you have versus the average
person that has stayed in a loop right
from either this area here or this area
here or this area here and what I can
tell you is that about 90% of most
Traders because of what I've seen
personally as a mentor
and and just seen personally from
mentoring over you know a few 10
thousands of people okay is that most
people before they ever get to any
proficient level quit or stop or
stay in the loop around here where they
learn some conceptual framework to the
market they start working a little bit
more and they find themselves back
within the nice foam and the mattress
and the snacks and the steak and all the
other fun stuff that comes with it and
they stay in this Perpetual Loop
until
they
quit or die
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