Why You're NOT a Profitable Trader YET...and How to FIX IT!!

Summary

In this lecture, Jared Wesley emphasizes the importance of discipline, planning, and adherence to trading rules for profitability in trading. He discusses common pitfalls such as poor money management, lack of a trading plan, and the psychological aspects that lead to selling too soon or holding onto losing trades. Wesley stresses the need for traders to follow their plans consistently, manage their trades effectively, and understand the expectations tied to their trading strategies. He also highlights the contrast between the dedication traders show when working for others versus their own trading careers, urging traders to build their own dreams and trust the process for long-term success.

Takeaways

• 📈 Success in trading requires discipline, time, and effort, much like going to the gym regularly.
• 🚫 Most traders fail because they don't consistently follow their trading plans or money management rules.
• 📋 Having a trading plan is crucial, but it's equally important to stick to it, even when it's challenging.
• 💡 Traders often sell too soon, cutting profits short, which can significantly impact long-term profitability.
• 🔄 It's essential to understand the balance between goal attainment and profit protection in trade management.
• 📊 Different trading styles and strategies require different management approaches; there's no one-size-fits-all solution.
• 🤔 Traders must be honest and objective with themselves, acknowledging when they're not following their plan and making necessary adjustments.
• 💰 The difference between being profitable and not can come down to how well one manages their trades and adheres to their trading plan.
• 🛠️ Developing a strong consequence system can help traders stay disciplined and committed to their trading plan.
• 🔄 The market is unpredictable, and traders must be prepared to adapt and manage their trades effectively in various market conditions.
• 🚀 Building a successful trading career is a gradual process that requires patience, persistence, and a systematic approach.

Q & A

What is the main topic of Jared Wesley's lecture?

The main topic of the lecture is why people are not yet profitable traders and the rules and path they need to follow to become successful.

What does Jared emphasize as crucial for becoming a profitable trader?

Jared emphasizes the importance of time, effort, and work, as well as following the right rules and having a proper trading plan.

What is the significance of the gym analogy used by Jared in the lecture?

The gym analogy is used to illustrate the common issue of people starting with enthusiasm but quickly losing motivation, which is a pattern that should be avoided in trading for consistent success.

What are some of the topics Jared plans to cover in the lecture?

Jared plans to cover topics such as money management, trade management, psychology, building a trading plan, and having a pre-trade checklist.

What is the 'insanity' Jared refers to in the lecture?

The 'insanity' refers to the repetitive cycle of traders not following their plans, selling too soon, and not learning from their mistakes, leading to a lack of profitability.

Why does Jared mention the importance of being honest and objective with oneself in trading?

Being honest and objective is important because many traders tend to lie to themselves about their progress and mistakes, which prevents them from making necessary improvements and achieving success.

What is the significance of the 'when will the insanity stop' segment in the lecture?

The segment serves as a real-life example of a trader's mistakes, such as not having a plan, neglecting to place a stop loss, and holding onto losing positions, which Jared uses to highlight common pitfalls to avoid.

What does Jared mean by 'bag holding' and how does it relate to trading?

Bag holding refers to holding onto a losing position in the hope that it will eventually recover, which is a risky and often unwise strategy in trading. It's used to illustrate the importance of having a proper exit strategy.

What is the main message Jared wants traders to take away from the lecture?

The main message is that traders need to commit to a disciplined approach, follow their trading plans consistently, and understand the expectations and consequences of their actions to achieve long-term profitability.

How does Jared describe the difference between a trader and a gambler?

Jared describes a trader as someone who follows money and trade management strategies, while a gambler lacks a plan and relies on luck, which is not a sustainable approach in trading.