The ONLY Perspective That Will Fix Your Trading

Summary

In this video, the speaker discusses the importance of focusing on the process rather than the outcome in trading. By emphasizing key concepts like maintaining a clear directional bias, trusting your model, and avoiding emotional trading, traders can improve their decision-making and avoid common pitfalls such as trading out of desperation or falling victim to FOMO. The speaker highlights the value of patience, consistency, and performance-focused goals, offering practical advice on managing losses and building long-term success in trading.

Takeaways

• 😀 Focus on the process, not the outcome. Trading for profit alone can hinder your progress.
• 😀 Always start with a clear directional bias. If unsure, do not take a trade.
• 😀 Only execute a trade when both your directional bias and trading model align.
• 😀 Trading out of desperation or with a scarcity mindset leads to poor decision-making.
• 😀 A successful trading day is measured by following your model, not by whether you’re in profit.
• 😀 Losses are inevitable. Accept them and focus on your trading process, not the result of any single trade.
• 😀 Fear of loss and emotional decisions (e.g., FOMO) cloud judgment. Train yourself to execute your plan despite fear.
• 😀 Keep a longer-term perspective. One bad trade or day does not define your success as a trader.
• 😀 Follow a strict entry checklist to avoid impulsive, low-quality trades driven by emotions.
• 😀 Consistently track and evaluate your trading performance using metrics like KPIs, max loss per day, and adherence to your model.
• 😀 Trading should not be relied upon as the sole income source, especially for beginners. Ensure you have a financial cushion before going full-time.

Q & A

Why is focusing on making money every day detrimental to a trader's success?

Focusing solely on making money leads to emotional decision-making, stress, and a lack of discipline. When traders are driven by the need for daily profits, they are more likely to take impulsive trades, ignore their strategies, and lose sight of the process. This ultimately hinders long-term progress and profitability.

What is the first step to measuring progress as a trader?

The first step is determining your entry criteria. By clearly defining your entry rules and following them consistently, you can evaluate whether your trading day was successful based on your process, rather than the outcome.

What should a trader do if they don't have a clear directional bias?

If a trader doesn't have a clear directional bias, they should refrain from taking any trades. Trading without clarity often leads to poor decision-making and unnecessary losses.

What is the role of the model in determining whether to execute a trade?

After establishing a clear directional bias, a trader must assess whether their model is present. If the model aligns with the market conditions, only then should the trade be executed. If the model is not present, the trader should avoid entering the trade.

How can a trader avoid trading out of desperation?

A trader can avoid trading out of desperation by not relying on trading as their sole source of income, especially early on. Having financial security and a backup plan allows a trader to trade without the emotional burden of needing immediate profits.

What is the significance of having a clear entry checklist?

A clear entry checklist ensures that a trader only takes trades when all conditions are met, minimizing the risk of impulsive decisions. This checklist should include elements like clear directional bias, the presence of a trading model, and a set entry time frame.

How can traders overcome a scarcity mindset in trading?

To overcome a scarcity mindset, traders need to adopt an abundance mindset. This means trusting that opportunities will arise and not rushing into trades out of fear of missing out. Traders should remain patient and wait for the right setups rather than forcing a trade.

What is the importance of having a long-term perspective in trading?

A long-term perspective helps traders avoid emotional decisions driven by short-term market fluctuations. By focusing on the process rather than immediate outcomes, traders can develop consistent, disciplined trading habits that lead to long-term success.

What should a trader do if they fear taking a loss on a trade?

Traders should accept that losses are inevitable and part of the process. If a trader follows their entry criteria, even if a loss occurs, they should remain disciplined, avoid emotional reactions, and trust their strategy. A healthy fear of loss should not lead to hesitation in executing trades when the conditions align.

How can a trader avoid FOMO (Fear of Missing Out) in trading?

Traders can avoid FOMO by sticking to their trading plan, using an entry checklist, and focusing on process over outcome. They should remind themselves that there will always be more opportunities and that impulsively jumping into trades can lead to poor outcomes.