10 Years of Brutal Trading Truths.. I Wish I Knew Sooner

Summary

In this brutally honest video, the speaker shares painful trading lessons learned through real-life mistakes and losses. The core message revolves around the harsh truths of trading: success doesn’t come from simply working harder or learning more, but from changing the process and respecting risk. The speaker emphasizes the importance of emotional control, simplifying strategies, and recognizing the inevitability of losses. Key takeaways include the need for discipline both on and off the charts, understanding market liquidity, and accepting that not every trade will be a win. Ultimately, the speaker stresses that stagnation, not failure, is the real danger in trading.

Takeaways

• 😀 Same process, same pain. If your process doesn't change, neither will your outcome. Stop repeating the same mistakes.
• 😀 Intelligence doesn't transfer to trading. Trading exposes your behavior, not your knowledge. It's about how you react under uncertainty.
• 😀 More learning can hold you back. Constantly learning without applying it to real market conditions can make you avoid execution and delay progress.
• 😀 Complexity is often fear wearing a lab coat. Excessive complexity in analysis is a way to avoid uncertainty, but simplicity is key in trading.
• 😀 You simplify by becoming selective, not by knowing less. Focus on what truly works for you and fits your temperament, rather than trying to use everything.
• 😀 Impulse destroys good analysis. Impulsive decisions lead to poor execution. Build frameworks that prevent acting on impulse to improve consistency.
• 😀 Losing is inevitable, but suffering is optional. Don't let losses impact your future decisions. Detach emotionally from past trades.
• 😀 You are not supposed to win every trade. Accepting losses as part of the game allows you to remain calm and consistent in the long run.
• 😀 If liquidity isn't engaged, you're early or guessing. Wait for the market to engage liquidity before entering trades to avoid bad setups.
• 😀 Discipline on the chart starts off the chart. Your personal life and routine impact your trading behavior. Structure and consistency outside the market lead to better execution in the market.

Q & A

What is the first major truth the speaker shares about trading?

The first major truth is that if the process doesn't change, the outcome won't change. The speaker explains how they spent a lot of time and effort in trading without seeing progress because they didn't adjust their approach. Trading requires a change in process, not just effort.

What was the key turning point in the speaker's trading journey?

The key turning point occurred in 2018 when the speaker admitted they couldn't do it alone. They realized they needed guidance from someone who had experienced trading firsthand, which helped them break the cycle of repeating the same mistakes.

How did the speaker's biggest loss impact their perspective on trading?

The speaker's biggest loss, where they went from a £5,000 profit to losing their entire account, forced them to face the reality that they weren’t losing because of lack of knowledge, but because they didn’t respect risk, market structure, and themselves.

What does the speaker mean by 'intelligence doesn't transfer' in trading?

The speaker points out that being academically intelligent or disciplined doesn't guarantee success in trading. Trading is not about knowledge alone but about how one behaves under uncertainty and how they manage emotions like impatience, ego, and fear.

How can more learning actually hold a trader back, according to the speaker?

The speaker shares that more learning can lead to over-complication and distraction from execution. They spent years gathering knowledge but failed to act consistently. The trap is thinking that learning more will lead to better results when the real shift comes from knowing what to ignore.

Why does the speaker emphasize simplicity in trading?

The speaker stresses that complexity in trading is often a form of fear disguised as competence. The more complex a trading system is, the more excuses a trader can make for not taking responsibility when a trade fails. Simplifying the approach makes it easier to take ownership of trades and improves execution.

What is the importance of selectivity in trading?

The speaker emphasizes that selectivity is key to success. Instead of trying to incorporate every concept, a trader must find what works consistently for them. By being more selective about which setups to trade, they can increase quality and avoid unnecessary trades.

How does impulsivity impact a trader's performance?

Impulsivity, especially in traders with ADHD like the speaker, leads to poor decision-making. Impulsive traders tend to enter trades too early or anticipate setups instead of waiting for confirmation. Learning to wait and avoid impulsive actions is crucial for improving execution and reducing losses.

What is the speaker’s stance on losing in trading?

The speaker states that losing is inevitable in trading, but suffering is optional. They realized that how a trader reacts to losses determines their success. If losses are emotionally carried into future trades, it leads to poor decision-making. Separating losses from personal identity is key.

What role does liquidity play in trading, according to the speaker?

Liquidity is essential for price movement. The speaker explains that markets move because of orders that need to be filled, and a trader should wait for liquidity to be engaged before entering a trade. Entering before liquidity is engaged often leads to early or speculative trades that are more likely to fail.