My honest advice for traders losing more than they win (Unfiltered)
Summary
TLDRThe 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
📉 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.
🚀 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.
📚 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.
💰 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.
Mindmap
Keywords
💡Profitable
💡Rush
💡Edge
💡Backtesting
💡Risk-Reward
💡Pips
💡Win Rate
💡Mentor
💡Accountability
💡Trading Groups
💡Data
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
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