Stock Trading Millionaire Says Forex Is A Scam - Umar Ashraf

Summary

In this insightful podcast, renowned trader Omar Ashra shares his trading philosophy and journey, emphasizing the importance of a strong mission and disciplined approach. He discusses the significance of learning from experience, the challenges of maintaining consistency, and the psychological aspects of trading. Ashra also talks about his ventures, including Trad Zella, a trading journal app aimed at empowering traders with data-driven insights and educational resources. His reflections on growth, both personal and professional, reveal a strategic mindset focused on long-term vision and value creation beyond financial success.

Takeaways

• 😀 The importance of having a strong mission is emphasized; success in trading often follows when one is driven by a purpose beyond just making money.
• 💰 A trader's reputation is built not just on profitability, but also on demonstrating value and proof of their trading strategies.
• 📈 The speaker reflects on the significance of transparency in the trading community, advocating for showing both successes and failures to build trust.
• 🧠 Mental capital is as crucial as financial capital in trading; losses can impact confidence and the ability to execute trades effectively.
• 🤔 The necessity of a systematic approach to trading is highlighted, as relying purely on luck or momentary judgment can lead to inconsistent results.
• 🔄 The idea of 'refining the game plan' is introduced, where traders should continually assess and adjust their strategies based on market feedback.
• 🚫 The potential pitfalls of public trading are discussed, including the psychological impact of audience reactions on a trader's performance.
• 🏆 The pursuit of becoming a better trader is likened to an athletic pursuit, where the goal is not just financial gain but achieving a high level of proficiency.
• 🤝 Networking in trading is not just about making connections but about offering value and learning from others who are at a similar or higher level of success.
• 🛠 The development of a trading tool, Trad Zella, is driven by a mission to empower traders with data and education, rather than just financial gain.
• 🏁 The concept of 'resetting' after each trading day or period is presented as a way to maintain objectivity and prevent complacency in trading.

Q & A

What is the significance of having a strong mission in trading according to the speaker?

The speaker believes that a strong mission is essential because it attracts money even when you don't actively seek it. It's about having a clear goal and purpose that drives success in trading.

How does Omar define a 'bad trade' even if it results in profit?

Omar considers a trade as 'bad' if it doesn't fit his game plan, playbook, or predefined criteria, regardless of the outcome. Even if it makes money, it's written off as bad because it lacks a systematic approach.

What does Omar mean by 'mental capital' and why is it important?

Mental capital refers to the confidence, ability to execute, and trust in one's trading strategies. Losing mental capital after a significant loss can be detrimental as it affects future trading decisions and performance.

What is the importance of transparency and proof in building a brand in the trading industry according to the speaker?

Transparency and proof are crucial for credibility. The speaker emphasizes that unless one has 'skin in the game', their opinions or advice on trading matters may not hold much weight. Demonstrating personal success through proof strengthens the brand.

How does Omar approach the learning process in trading?

Omar believes in learning through experience and by putting theory into action. He suggests that understanding what works and what doesn't through personal experience is more valuable than just following others' advice.

What is the role of repetition or 'reps' in Omar's trading strategy?

Repetition helps Omar refine his trading skills and make them second nature. It reduces hesitation and emotional interference during execution, leading to better trading decisions.

How does Omar handle the public scrutiny that comes with being a well-known figure in the trading space?

Omar has learned to tune out external opinions, focusing on his own trading performance and personal growth. He doesn't let compliments or criticisms affect his trading decisions.

What is the significance of the 'reset' mentality in Omar's trading philosophy?

The reset mentality allows Omar to maintain a clean slate daily, avoiding complacency after good days and quickly moving on from bad days. It's about consistently performing and not relying on past successes.

What is Omar's view on the role of luck in trading?

While acknowledging that luck can play a part in individual trades, Omar emphasizes that long-term success in trading requires a systematic approach and consistent strategy execution.

How does Omar manage the risk in his trades?

Omar manages risk by focusing on the amount he's willing to lose based on his account size and the trade specifics. He believes in risking an appropriate amount and being prepared for the outcome, whether it's a win or a loss.

What lessons has Omar learned from his biggest trading loss in 2020?

The 2020 loss taught Omar the importance of maintaining control over risk, not being swayed by market conditions or public opinion, and the value of mental capital in trading.

What is the role of a trading journal in Omar's trading process?

A trading journal serves as a tool for reflection and learning. It helps Omar track his trades, understand his performance, and identify areas for improvement outside of just win/loss ratios.

How does Omar view the relationship between his trading success and his social media presence?

Omar sees his social media presence as a platform to share his journey transparently. He believes in showing both the highs and lows of trading to give a realistic view of the profession.

What advice does Omar have for new traders learning from online resources?

Omar advises new traders to combine online learning with personal experience in the market. He emphasizes the importance of实操, or putting trades into action, to truly learn and understand the market dynamics.