My honest advice for traders losing more than they win (Unfiltered)

Summary

The speaker candidly shares their trading journey, emphasizing the importance of patience and discipline in trading. They recount a personal experience where rushing led to significant losses, underscoring the need for a systematic approach and backtesting to build confidence. The video dispels the myth of chasing 'pips' and highlights the significance of risk-reward ratios over win rates, advocating for a data-driven strategy to ensure consistent profitability.

Takeaways

• 📈 Consistency is key: The speaker emphasizes that having a system in place for consistent profitability is crucial, rather than making money every single month.
• 📱 Social proof: The speaker posts daily trades on Instagram as evidence of their trading success and to back up their claims.
• 🚫 Avoiding rush: One of the main reasons for not making money is the rush to trade, which can lead to poor decisions and losses.
• 📉 Learning from failure: The speaker shares a personal story of a significant trading loss to illustrate the importance of learning from mistakes.
• 🛑 Importance of discipline: The speaker warns against breaking trading rules, especially when emotionally driven, as it can lead to substantial losses.
• 🔢 Data-driven trading: Trusting one's trading edge is built on having data to back up the strategy, which instills confidence in trading decisions.
• 📊 Backtesting is essential: The speaker stresses the importance of backtesting a trading strategy over several months to ensure its viability before live trading.
• 🚫 Avoiding pip obsession: The focus should be on risk-reward ratios rather than the number of pips gained or lost in a trade.
• 🤔 Questioning high win rates: The speaker suggests that high win rates promoted by some trading groups may be misleading and not indicative of profitability.
• 📉 Accepting losses: It's normal to have losing trades and weeks; what matters is the overall profitability at the end of the month or year.
• 📝 Keeping records: Maintaining a record of trades, both wins and losses, is crucial for accountability and improvement in trading strategies.

Q & A

What is the main issue the speaker addresses regarding trading?

The main issue addressed is the rush and impatience that traders often experience, which can lead to poor decision-making and losses.

How does the speaker describe their trading system?

The speaker describes their trading system as having a set of consistent rules that, when followed, ensure profitability over time.

What mistake did the speaker make during the prop challenge that led to a significant loss?

The speaker manually closed a trade too early, thinking they had hit their profit target, but after commissions and other deductions, they fell short and ended up blowing the account by breaking their own rules in a rush to recover.

Why does the speaker emphasize the importance of backtesting in trading?

Backtesting provides data that supports the trader's strategy, builds confidence, and helps identify potential pitfalls or patterns in trading behavior that can be improved upon.

What role does the speaker believe emotions play in trading decisions?

The speaker believes that emotions can significantly impact trading decisions, often leading to hasty and unprofitable choices, especially when traders are under pressure or feeling rushed.

What is the speaker's view on the importance of risk-reward ratio in trading?

The speaker emphasizes that the risk-reward ratio is crucial in trading, as it determines the profitability of each trade and should be the primary focus rather than the number of pips gained.

Why does the speaker discourage focusing on win rates in trading?

The speaker discourages focusing on win rates because they can be misleading; a high win rate does not necessarily equate to profitability if the trades are not properly risk-managed.

What is the speaker's advice on the frequency of trades taken by successful traders?

The speaker advises taking fewer trades, as successful traders often trade less, which can lead to higher overall profitability.

How does the speaker suggest traders should approach the learning process in trading?

The speaker suggests that traders should be patient, allow themselves at least a year to fail and learn, and not rush the process.

What is the speaker's recommendation for traders who want to improve their trading skills?

The speaker recommends backtesting extensively, focusing on risk-reward, avoiding bad habits, and following a systematic trading style that has been proven through data.

How does the speaker demonstrate accountability and transparency in their own trading?

The speaker posts their daily trades, including wins and losses, on Instagram, allowing followers to see their track record and hold them accountable.

Outlines

00:00

📉 Overcoming Trading Struggles

The speaker candidly shares their personal trading journey, emphasizing the importance of having a system for consistent profitability. They recount a particularly painful experience where they failed a trading challenge by a narrow margin due to premature closure of a trade, which led to a series of emotional and hasty decisions, ultimately resulting in a significant loss. This story serves as a cautionary tale about the dangers of rushing and the necessity of discipline and a tested strategy in trading.

05:01

🚀 Patience and Trust in Trading

The speaker discusses the common mistake of rushing in trading and the importance of patience. They argue that new traders should expect a learning period of at least a year, if not more, to understand and master trading. The speaker also stresses the importance of trusting one's trading edge and strategy, which can be achieved through rigorous back-testing and data analysis. They share their own experience of learning to trade through online resources and the value of having a systematic approach to trading.

10:01

📚 The Importance of Back-Testing

The speaker highlights the crucial role of back-testing in developing a robust trading strategy. They admit to initially overlooking back-testing, which they later recognized as a mistake. The speaker explains that back-testing provides the necessary data to build confidence in one's trading strategy and to understand the potential outcomes over time. They also warn against the allure of high win rates promoted by some trading groups, emphasizing that a focus on risk-reward ratios is more important for long-term profitability.

15:03

💰 Prioritizing Risk-Reward and Accountability

The speaker concludes by emphasizing the importance of focusing on risk-reward ratios rather than the number of pips or win rates. They argue that profitability comes from having a strategy that consistently yields a positive return over time. The speaker also stresses the value of accountability, as evidenced by their practice of posting daily trades on Instagram. They invite viewers to learn from their experience and offers mentorship to those interested in improving their trading skills.

Keywords

💡Profitable

In the context of the video, 'profitable' refers to the state of making a net gain in financial trading. It is central to the theme as the speaker discusses the challenges and strategies for achieving consistent profitability in trading. The speaker mentions having a system in place to ensure profitability, indicating the importance of a structured approach to trading.

💡Rush

'Rush' in the video signifies the impatience and haste that traders may exhibit, which can lead to poor decision-making. The speaker uses his own experience to illustrate how rushing can negatively impact trading performance, emphasizing the need for patience and discipline in trading to avoid emotional decisions.

💡Edge

'Edge' in trading denotes a competitive advantage or a strategy that gives a trader a higher probability of success. The video emphasizes the importance of trusting one's edge and having data to back up the strategy's effectiveness. The speaker suggests that confidence in one's trading edge is built through data and consistent application of a tested strategy.

💡Backtesting

Backtesting is the process of evaluating a trading strategy using historical data to see how it would have performed in the past. The speaker highlights the importance of backtesting to reinforce confidence in a trading strategy and to understand its potential performance before applying it in live trading.

💡Risk-Reward

Risk-Reward (RR) is a fundamental concept in trading that refers to the potential loss versus potential gain of a trade. The video stresses that focusing on a favorable risk-reward ratio is more important than the number of pips or win rate, as it determines the sustainability of profits over time.

💡Pips

In the context of Forex trading, 'pips' refer to the smallest amount of price movement in the exchange rate of a currency pair. The speaker argues that pips are not a meaningful measure of trading success, as they do not account for the risk taken, contrasting the common focus on pips in many trading communities.

💡Win Rate

Win rate is the percentage of trades that result in a profit. The video challenges the common belief that a high win rate is indicative of successful trading, asserting that a lower win rate can still lead to profitability if the risk-reward ratio is favorable.

💡Mentor

A 'mentor' in the video is someone who provides guidance, instruction, and support to help others learn and improve their trading skills. The speaker mentions the benefits of having a mentor or participating in a trading course to accelerate the learning process and achieve profitability faster.

💡Accountability

Accountability in trading means being responsible for one's actions and decisions. The speaker mentions posting trades live on Instagram as a way to hold himself accountable, demonstrating transparency and reinforcing the importance of being answerable for one's trading actions.

💡Trading Groups

Trading groups in the video refer to communities or organizations that offer trading signals or strategies. The speaker warns against the potential pitfalls of blindly following these groups, emphasizing the need for individual understanding and strategy development rather than relying solely on copied trades.

💡Data

Data in the context of the video represents the historical records and statistics of trading performance. The speaker repeatedly emphasizes the importance of data in building confidence, validating trading strategies, and ensuring informed decision-making in trading.

Highlights

The speaker emphasizes the importance of having a consistent system in place for profitability in trading.

Sharing personal experiences to connect with the audience and demonstrate overcoming similar challenges.

Daily posting of trades on Instagram as a form of transparency and proof of claims.

Highlighting the common issue of not making money due to rushing and emotional trading.

The disastrous impact of not setting proper take-profit levels and the consequences of manual trade closures.

The importance of patience and not rushing trades, especially when close to a significant goal.

The need to accept failure as part of the learning process in trading.

The significance of having a systematic trading style that remains consistent regardless of emotions.

The necessity of backtesting a trading strategy to build confidence and validate its effectiveness.

The fallacy of focusing on pips as a measure of trading success, instead of risk-reward ratios.

The critique of signal groups and the marketing tactics that prioritize win rates over actual profitability.

The importance of having a realistic expectation of trading outcomes based on risk-reward rather than win rates.

The recommendation to trade less frequently to increase the likelihood of profitability.

The value of maintaining a record of trades, both wins and losses, for accountability and learning.

The offer to teach others how to trade effectively, providing a direct way to learn from the speaker's experience.

The emphasis on discipline and following trading rules to avoid costly mistakes.

Transcripts

so you are not making money consistently

now this is going to be an uncut very

real I'm going to tell you guys exactly

what you need to hear because you just

need to hear it we need some of that

once in a while I'm going to tell you my

story exactly what I've been through

exactly just to show you that I've been

in your situation as well and exactly

how I was able to get out of it to

eventually be here today we I'm not

making money literally every single

month for most months it's going to be

profitable because I have a system in

place to make sure that is the case I

post my trades daily on my Instagram if

you need all the proof just to see to

back up exactly what I'm saying go on my

Instagram advice you will see everything

there but with that aside now let me

tell you guys exactly you know why

you're not making money or why at least

I wasn't make your money and see if you

can at least relate with that situation

so I'm just going to start with a story

one of my worst stories of the worst

time that I fumbled a bag big time now

this is probably the worst of the worst

there's many many times I've made

mistakes and stuff you might find those

stories in my other videos but this is

going to be the worst and basically

there was a time I was taking a prop

challenge you know like the usual taking

a prop from challenge I pass phase one

smooth phase two was going very very

well smooth and there was this day I

remember it like it was yesterday and

I'll probably never forget this I was in

a trade the final trade that I needed to

passed the challenge to get funded get

the account start making money getting

payout leally the final trade

I needed less than 1% or 1% and that was

it one trade left I enter this trade now

I was looking at my p&l I hit TP I heard

the signal go off I hit TP so I was

looking at my phone but obviously I

didn't have my TP set because actually I

had my TP set but because I needed less

than 1% meaning that I didn't even need

to wait the whole position I just needed

to close as soon as I've made you know

hit the threshold basically so I looked

at it and said I already hit like you

know let's say I needed to make 10% on

100K right so 110k I saw 110k there

basically saying that Co this is the

equity you can close now and obviously

I'm going to have that 110k so I closed

the trade manually on my phone once I

did that now obviously there's

commissions and stuff that I didn't

really think about and just all that

other minuses so when I Clos the trade I

realized I was literally like $10 short

literally like .1%

of passing because I closed where I

thought obviously I'm going to make but

obviously minus commissions and the rest

of the stuff I was down and I was

thinking to myself okay so now I need to

take another trade right to win

this

so I thought you know what let me not

just take any setup but realistically

all I needed is any setup to go my way

any setup to go my way so I took another

trade that followed my strategy and

everything else but I think that one

went wrong so I'm down minus one % now

so I to myself okay I was literally 1%

away from passing and now I'm down 1%

come on like but we literally just there

take another setup one of them is going

to win right so I took another setup

again so at this point I'm starting to

break my rule just because I was so

close I was literally at the Finish Line

took another setup again down 2% took

another setup again I'm down 3% on the

day and I was thinking to myself how

have I made this go wrong obviously in

the morning now you're emotional I'm

sure we can all relate you're now

emotional a little bit you just want to

pass you're thinking to yourself you

want to do this today because you

literally right there you don't want to

wait another trading day so I was just

trying to get my money back at this

point and somehow somehow you can

imagine I blew the account because I

went below

5%

unbelievable unbelievable I'm telling

you that story I'll never forget it

because I will for to myself Sul you are

an absolute joke like how oh my go how

can you make it go so wrong I'm laughing

now cuz obviously this is in a part and

it's okay now

but I couldn't believe it I thought to

myself there's no way I must be dreaming

that there's no way I'm I fumbled this

account and now I've got to buy another

account spend more money go for the

whole process again and try to pass

again bro all right look the main reason

to why I'm telling you this is just to

to to highlight one problem which is the

rush rushing is one of the reasons to

why you are not profitable to why you

form the bag because obviously the whole

idea to get into a trade in in the first

place is to make money which I

understand we all want to make money

most of the time a l of us get into

trading when money is tight you know you

have like your last like you don't

really have money like that so you want

trading people have shown you that

trading is going to print money you're

going to make 1K every day boom boom ba

follow this ver trade you're going to

print money so already you come into

with a rush but that's that's bad

already off the gate and reason why I

fumbled at trade is because I was in a

rush to just pass that trade that day

get funded that day if I just waited the

next day for another trade opportunity

like I always do would have been okay

but I wanted to pass that day because I

was just so close so the rush is one of

the issue I'm telling you as much as I

say it myself you can pass in three

months yes I I I stand by that you can

get into trading and be good in 3 months

obviously that's if you had like a crash

course you have a mentor someone

teaching you daily weekly call which is

something I also offer to some people

just a handful of people it is somewhat

possible yes but generally come into

Trad and knowing that you're going to

fail for at least a year at least one

year you're going to fail because when I

taught myself how to trade from the

beginning just like everybody else you

everyone starts from zero with no

knowledge it took me one year one year

of failing a ton of challenges

all the stress 10 hours you know shifts

trying to learn how to trade and all of

that stuff right and I was in school as

well you know doing exams the whole she

bank I was basically there busy I was

busy with other things doing other

things so I was able to still pan all of

this was I in school yeah I think I was

in school at that time I mean this was

literally about two years ago now a year

ago now about a year ago now so actually

I don't think I was in school but I was

busy doing other things content creating

all that stuff and I learned how to

trade

literally through YouTube videos and all

that stuff that's what I'm just trying

to get at so it took me about a year to

fail regardless and trust me I was

putting in a lot of hours to learn this

so I'm just trying to show you that at

least give yourself a year to fail at

least a year for some people it's going

to take two years some people it's going

to take 3 years maybe what depends on

how quickly you discipline

yourself so stop the rush I promise you

if you just take time just see as you

come you trade you stop you caring about

your life and that alone is already

going to make it significantly better

than putting a time to it once you put a

time to trade in this GG's I'm telling

you it goes wrong once you put a time to

trade in this this WS man it's just it's

just going to go south so I don't

recommend it just come and see that you

will get profitable eventually as long

as you keep doing the right things

eventually the accounts will compound

eventually you get funded eventually get

payouts you won't even realize it's

happening but it's going to happen now

that's not the only thing though

obviously that's that's not the only

thing that's stopping you it could be

for some people but the next thing is

realistically just the fact that you

don't trust your Edge your Edge me in

your strategy exactly what you use to

trade you don't trust it man if you did

there will be a certain level of

confidence that you can speak and you

would know that if I take one trade a

day I'll probably make it I'll probably

be good and what I'm getting at is that

how you learn to trust your Edge is by

having data to back it up I don't care

what else you say

Daya backs things up without that you're

just going up Vibes think about any

sport think about anything in this world

before someone like let's let's say

Steph Curry everyone should know who

that is let's just say him right before

he became the guy that he is and he's

shooting all those shots on the court he

already went you know through training

he had that data to see that court I can

shoot from this far and score I can

shoot from here and Mak and he's done

that multiple times to know that he can

do it then he goes onto the live games

to then repeat the same thing and then

in game when there's a lot more pressure

a lot more heat Everyone's Watching he

does the same thing and he realizes okay

cool I have this you know my shot rate

my hit rate is is this percentage and he

can still do it in game it's exactly the

same thing when you're trading before

you trade live you need to have data

over several months to show you that

okay cool if I I trade exactly like this

the exact same way you're going to get

this result that is why it's so key and

important that you have a systematic

trading style how I trade I have my

trading is the triple one system in the

sense that I have things in place that

is consistent that doesn't change so

that way it's not like if I wake up

today and I'm emotional all of a sudden

my trading is going to be different no

because if I follow these set of rules

I'm going to basically be profitable and

I'm going to make this amount because my

or over two years has shown

this then I would then start trading the

live markets and apply the same thing

and that same data is going to now show

this obviously there might be more

pressure on your trading live

commissions errors glitches but you

still need to do that though you need to

for test that's what we call for testing

when you're doing it live and you're

seeing this as the data as well you do

that over several months it is key and

the part that many people don't do is

back testing and why do I know this

because I was there as well when I was

learning to trade for a year first 6

months I didn't back test at all cuz I

saw as like homework I saw it as like as

boring why do I need to back test I want

to forward test is more realistic

everyone says this oh forward testing go

into the lab markets because it makes

more sense yes I hear it it's key it's

important but you have to back this as

well someone doesn't just start aaska

will and just go straight you know the

live course and start shooting because

they want to fall test they already know

what their strengths are beforehand and

my shoots are yeah so now I can shoot on

the lab mark um on the live game as well

am I someone who's just good at

defending cool my defense is just way

better so am I going to defend on the

live game yeah you kind of get the idea

right it's you need to have a back

tested result first applied it on a full

test then you have the complete data and

pro I promise you once you do this

there's a certain level of confidence

that you will have to know that I like

you can always go back check your data

and you will see boom this month went

the this way this month went this way

when I traded this month I had you know

I lost three trades in a row so when you

lose three trades in a row when you're

trading live it's normal to you you're

not going to stress about it because

you've seen it happen before but for

those who have no data or no confidence

at all when you trading live now you

lose free trades you're thinking to

yourself oh but this YouTuber that I

watch says if you're losing free trades

in a row it means you're probably the

worst Trader in the world but obviously

that's not the case because based on

your strategy you can lose free trades

in a world it's normal but obviously

with a good risk reward you would then

be profitable at the end of it if you

don't back test if you have no data

pointless I'm telling you it's going to

make your whole journey 10 times harder

don't do what I did I started back 6

months later I should have started from

the beginning the moment you have your

strategy you find something that works

and resonates with you and you like the

way the person trades you need to back

test it that's how you're going to know

if it works for you if you can replicate

it if you can repeat it and actually be

profitable over at least 6 months when

you're back testing over at at least 6

months 6 months worth you you backest

said every single day you have 6 months

worth of result before you even start to

think about anything if you can do more

you can do more I've done multiple years

you don't even want to know of back

testing that's why I do in my spare time

hours and hours and hours and hours of

back test I pretty much do it at least

every week reason why it's just to to

reinforce that confidence right just to

know that okay cool this is how the week

went this is how if I traded in 2014 is

how it goes just so I have the results

the result speaks result speaks trust me

okay now this next one makes me laugh

all the time because I get a lot of

comments from people just saying it and

I just I just don't even bother

responding because it's a waste of my

time and that is when people screaming

Pips all over the place Pips Pips Pips

I'll tell you now Pips don't mean

anything Pips don't pay the bills Pips

just it's kind of like a thing that all

these Forex Traders copy Traders groups

come up with they'll tell you oh 10 Pips

today 20 Pips today we made 100 Pips

today you know Pips doesn't make any

sense right because when you think about

it on the charts when you enter a trade

I can make my onetoone trade be as wide

as this right it could be the widest

thing in the world make my stop loss as

huge as possible and then I can make 100

Pips for one to one that doesn't do you

get my point it's still a one to one if

I risk a $100 at the end of that it's

still $100 doesn't mean anything even if

it's 1,000 Pips so so what really is

important is risk reward is RR is how

much percentage you get every single

time you trade my Pips are very small

right I can trade 10 Pips I can have a

10 Pips kind of range right in a trade

but that is still that could be a one to

two one to one or one to three it all

depends on the setup right but that's

all that matters because it means at the

end of the day I turned $100 to 300

1,000 to 3,000 and why I'm getting at

this is that a lot of you learn bad

habits from these trading groups and

you're chasing pits all over the place

pits don't mean anything just have your

strategy set in a way that makes you

money that is all that matters at the

end of the day making money every single

month Pips don't matter risk reward does

matter of course but don't also Chase

these trading groups that are teaching

you oh 90% win rate let me tell you

something you don't know the reason why

these trading groups right like signal

group should I say not not really

trading groups signal groups the ones

that you copy their trades you enter

stop loss TP tp1 tp2 tp6 those ones the

reason why they have 90% win rate and

everyone chases them and wants to be in

the group it's all marketing it works so

I have to give it to them but it's

because most of the time their tp1 is

probably like a 1 to 0.5 RR meaning that

they have like a higher stop loss and a

smaller TP so it doesn't even make sense

but they have that and once you hit tp1

they're going to consider it as a win so

in most cases they will hit tp1 because

it's just like the tp1 is like a tiny

movement tp1 tp2 tp3 and most of the

time it makes it look like they're

winning 24s but I'll tell you for free

if you are risking more than you're

taking it's going to be a very long day

for you to be profitable in fact if

you're even trading in Signal groups

it's going to be difficult I'll be real

with you you need to know how to trade

for yourself that's why I like to teach

people how to trade I send my trades as

well you can take mine but I'll tell you

now if I if I'm not there everyone in s

Academy can still take setups because

they know what to do they trade the

exact same way as I do I've taught them

exactly what I do so they can take the

exact same setups not just copy cuz

copying don't do anything for you you

need to have the understanding of what's

going on there's no tp1 tp7 because like

my strategy set to where the risk

manager makes sense and where I'm

leaving at is a way that is set where

it's going to make me money overall

don't just follow the tp1 tp2 3 4

because that's just set for them to have

a higher win rate because that's what

people like to hear but you need to see

exactly how much they're making at the

end of the month it's not about the win

rate win rate doesn't really matter

there's some people that have a 30% win

rate and they're making a ton of money

I'll tell you that for free because the

risk reward makes sense the higher your

risk reward so if you're going for one

to five of course you're going to win

less but whenn that one to five here

it's going to make up all the losses

that's simply what trading is risk

reward is all that matters nothing else

matters but your risk reward and how

much you come out with at the end of

every single month if you're months is

bad every single time it means that over

the amount of trade you took that month

something kind of went wrong so

generally I like to say you want to

profitable less say every week but some

weeks you might be Break Even some weeks

could be losing weeks that's why I say

roughly every month you want to be

profitable at least every month right

every month you want at least making

some money but generally the bigger

picture though is every year you got to

be in profit I don't if you're not in

profit by the end of one year of trading

something was wrong somewhere in my

opinion right something's going wrong so

look let me just be real of you

ultimately all of this boils down to

data if I'm being serious the biggest

factor that will take it down to is data

because I'll say every single person who

knows how to trade they have a track

record to back up their trading they

have a track record before they trade

live they have a track record of when

they're trading live that is exactly why

I have all of this data so if anybody

wants to see it they want to know I can

always also show it to you but I'll post

my trades live every single day pretty

much on my Instagram so you literally

see my track data live I post my wins

and my losses pretty much they that's my

way of keeping data but I do it live so

everybody can see it so that way people

are accountable of me as well people can

see when I win and when I lose and at

the end of the month then you see my

profit so if you really want to change

exactly how you trade you actually want

to be profitable I highly recommend St

back testing focus on your risk reward

focus on a bad habits don't be in a rush

be extremely patient with trading find

an edge that works and just stick to

your rules every day you break your

rules you should punish yourself I'm not

saying going whip yourself or anything

crazy but there has to be something on

the line that makes you care right don't

just be be breaking rules all over the

place it doesn't like there has to be

rules rules has to be set so find rules

have rules to follow and don't break

them just don't break it and I if you

don't break your rules it'll be fine I I

I check this every time every time I

break my rule fingers just wrong over a

rule the rules are set there for a

reason because I've I've backed to

enough to create these rules to make it

tangible to where when I break these

rules usually that's when I start having

losing trades losing weeks so again just

have these data back test back back test

back test back test a lot and you'll see

a significant Improvement in your

confidence in in in foro having no fear

to enter trades just trading less as

well by the way just trade less this is

one that you should know already but

take less trades if you take less trades

overall You' be more profitable all the

traders who are doing very well trust me

they take less trades simple as the less

you do the more you win so if you do

want to trade with me if you do want to

see exactly how I do it to join the many

students that trade with me already just

DM me I'll leave my Instagram in the

description of this video just DM me the

word teach and we'll talk I'll fill you

in and exactly what you need to know

I'll show you the the results of other

students that doing very very as well

and you can trade with me you can learn

exactly how I trade thank you guys for

watching and I hope this is valuable and

I'll see you in the next video peace