Real Money Real Results - First Year Trading Expectations

Summary

This video series offers a transparent look at real trading practices, addressing common questions about realistic expectations in trading. The mentor demonstrates live trading on an account opened with $25,000, showcasing detailed results from January 2022 and discussing the importance of discipline, strategy, and risk management. The series refutes criticisms of demo trading, reinforcing credibility by providing verifiable data. The mentor explains the psychological challenges of trading, including drawdown management and avoiding revenge trading. By sharing practical lessons and demonstrating correct approaches, the video aims to educate viewers on achieving consistent results and building confidence in their trading strategies.

Takeaways

• 😀 The video series addresses questions about realistic expectations for trading results, from a mentor's perspective.
• 😀 The mentor discusses starting with a $25,000 trading account and emphasizes that the results shown are from a live account, not demo trading.
• 😀 The series focuses on answering students' questions regarding drawdown, over-trading, losing streaks, and how to manage these challenges without excessive leverage.
• 😀 The mentor shows the entire process, including printing statements and providing downloadable PDFs, to demonstrate transparency and authenticity in trading.
• 😀 The first trade was entered on January 14th, 2022, after funding the account, and the mentor explains that many traders rush into trades, which often results in early losses.
• 😀 The video highlights a glitch where the account showed an unusual deposit, though it wasn't related to the mentor's trades.
• 😀 The mentor shares his experience of dealing with a drawdown and emphasizes the importance of sticking to trading rules, even when frustrated or losing.
• 😀 Revenge trading, or making impulsive trades after a loss, is discussed as a major mistake, and the mentor demonstrates how this can lead to further losses.
• 😀 The video illustrates how to correct a trading mindset by reducing trade frequency, adhering to strategies, and stopping after a winning trade to prevent mistakes.
• 😀 By the end of January, the account showed a 22% return on investment, highlighting the potential for growth despite early losses and mistakes.

Q & A

What is the purpose of this video series?

The purpose of this video series is to provide transparency about the mentor's trading journey, showing real trades and explaining the challenges faced, such as drawdowns and overtrading, while addressing common questions and misconceptions from students.

Why does the mentor mention the disclaimer at the beginning of the video?

The mentor emphasizes the disclaimer because the content discussed in the video is based on his personal experiences and is not a guarantee of the same results for others, as each trader's outcomes may vary.

How did the mentor fund the account, and what was the initial balance?

The mentor funded the account with $25,000 and clarifies that there has been confusion online, with some people claiming he started with different amounts.

What does the mentor mean by 'revenge trading'?

Revenge trading refers to the scenario where a trader, after suffering a loss, continues to make trades in an attempt to recover the losses quickly. This typically results in further losses and can spiral out of control.

Why does the mentor show the full account number in the video?

The mentor shows the full account number to prove the legitimacy of the trading account and to counter accusations from critics who claim the trades are not real or are cherry-picked from a demo account.

What does the mentor hope to prove with the printing of the account statement?

By printing the account statement, the mentor aims to provide a verifiable, real-time record of his trading activity, ensuring transparency and authenticity, especially for those who question the validity of his trades.

What challenge does the mentor highlight about new traders starting with live funds?

The mentor points out that many new traders rush into live trades without sufficient patience or preparation, leading to losses. He emphasizes the importance of sticking to a trading plan and controlling emotions to avoid such mistakes.

How does the mentor correct drawdowns and overtrading?

The mentor corrects drawdowns and overtrading by returning to his core trading rules, reducing trade frequency, and being more selective about when to enter trades. He also advocates for stopping trading when feeling out of control.

What mistake does the mentor make during his trading process, and how does he handle it?

The mentor makes the mistake of entering trades impulsively, leading to a loss streak. He corrects this by reducing trade frequency, sticking to his system, and managing risk more effectively to recover from the drawdown.

What was the mentor's performance at the end of January 2022?

At the end of January 2022, the mentor's account showed a positive return of 22%, growing the initial $25,000 balance by $5,564, highlighting a successful month despite early challenges.