040-2023-08-20-Trader-Round-Up-Sunday-with-Riz-Women-in-trading-losses-and-mental health-ICT-only
Last modified by Drunk Monkey on 2023-09-26 13:07
Outline
00:01 - Women in trading losing streaks.
- Women in trading, losing streaks, mental health and management.
- The best student is a woman while teaching and training her, one of the things that was quickly apparent is when she would make a mistake, she was never judgmental of herself.
- His best student is his best student. She knows that she has models, not one model, but that one of them will speak to her every trading session.
- His best students are hard on themselves.
04:57 - How to defeat yourself even further.
- Do some laps if you don't defeat yourself even further when you make a mistake. If you fail a funded account challenge or blow an account, that's not something to be upset about every single football team.
- You're doing the same thing by equating the next trading day to the next trade.
- The first thing a woman does when she gets pregnant, and what a man does when he gets pregnant.
- The importance of taking personal responsibility for personal growth.
09:27 - How men struggle psychologically more than women.
- Men struggle psychologically more than women, because they are one-sided. Women are multi-functioning multitaskers. They can do things that men are not.
- Trading model, swinging an axe, mom is a model.
- It takes a great deal of personal responsibility to go into this industry, and you have to be personally responsible and organized.
- The easiest solution to losing trades is understanding your model.
14:13 - How many times have you seen a silver bullet form?
- How many times a silver bullet form between 10 o'clock and 11 o' clock is seen, and why it is impossible to get emotional about it.
- Three setups per day.
- If you over-leveraged and placed more emphasis on the outcome of that singular trade, you will pass the challenge when you have that small little obstacle and you want to do more than necessary to overcome it.
- The more you try to avoid taking a loss, the more likely you will have them.
18:47 - How to turn a loss into a comeback story.
- In that one hour, you are looking for one, and if you miss it or you did it wrong, don't go back in and try again.
- John wick and the ladies.
- Why would you want to push at that moment where you are now highly sensitive to the fact that you have taken a paper cut, and that's exactly what it should be, not 10% of your account, not well.
- Women want to be coddled. Men want to make preparations.
- Fostering poor habits is inviting difficulty in trading when you think like that, and what will happen over time trading like that.
- The whole purpose of even studying certain things, whether it be by me or someone else, is to follow the model.
26:34 - The importance of following a business model.
- Traders have been around since the 1900s, so it is important to be able to weather losing streaks and know that it doesn't mean that the model is broken.
- Mental health as a trader needs to be guarded. No negative thoughts, no second guessing, no doubting.
- Traders want to see if they can get a rise out of you. They own you for that moment. You want to be guarding your mental health.
- Trading one micro, not many micro, what is really risking if you risk five handles to make $525 bucks.
31:48 - Never let your loss be more than 250 bucks.
- Never let your loss be more than 250 dollars, because it is easy for you to recoup that if you're going to trade another session with half the leverage.
- Mental health is rewarded by filing a model that you've investigated and tested back tested collected data on your management of losing trades.
- Less than 5% of women traders do it like that and are ill-equipped to be successful, not being responsible with the risk.
- The female trader system.
36:46 - Women are better risk managers.
- Women are historically better risk managers than men in the trading community, and the best risk managers in the community are women.
- Having an affair makes a man a piece of shit.
- The lives of many people change when they get involved in trading, and the results are determined by the amount of organization adherence to impeccable risk management.
- Having a cookie cutter.
41:16 - Embracing losing trades and embracing failure.
- Luck will repeat and it will be exponential in delivery and results, but it will not happen because of luck.
- Mental health needs to be focused on the model.
- You invite someone that doesn't give a shit about you to give their two cents. They don't have a trade and they have no idea they're going to be doing that now.
- You're taking investment advice from a temp who doesn't even have a full-time position yet.
- Honey bees are pretty good together. They collect honey and produce honey, but there's a bee that comes in and can do a lot of damage.
- You have to guard your mental health.
Transcription
| 1 | 00:00:01 --> 00:00:09 | ICT: Can you hear me? Yes, sir. I was not trying to interrupt you, I was gonna let you finish it, I'm gonna try to do the request. So whatever you were saying |
| 2 | 00:00:09 --> 00:00:22 | if you could finish that, and then I'd like to have a couple minutes with you off the good. Absolutely. And ironically, I asked, I actually did just so I, |
| 3 | 00:00:22 --> 00:00:33 | I've enjoyed again, today listening to everybody. And since you made a change in the title, I want to kind of like touch on all three of those things. Women in |
| 4 | 00:00:33 --> 00:00:48 | trading, losing and or losing streaks, and the mental health and the management thereof. What most people don't realize is, you know, I have like a locker room |
| 5 | 00:00:48 --> 00:00:59 | of gentlemen that want to get out here and like, prove to the world that they themselves, and what they have learned is an amazing new skill set. And it is, |
| 6 | 00:01:00 --> 00:01:11 | and the quiet females, that actually better traders in my fold. They're not interested in doing any of that. Now, I'm not trying to say that the ladies in |
| 7 | 00:01:11 --> 00:01:23 | this community that are outspoken, which I'm so impressed with, I love the candor, I love the ability for them to articulate and communicate their place. |
| 8 | 00:01:23 --> 00:01:32 | Okay, they're not in a position where they're asking to be a part of this community, a part of this industry, they're just stepping in, just like a strong |
| 9 | 00:01:32 --> 00:01:49 | woman would. And my better students. My best student is a woman. While teaching and training her, one of the things that was quickly apparent is when she would |
| 10 | 00:01:49 --> 00:02:02 | make a mistake. She was never, ever talking to me in a turn where she was very judgmental of herself. She would ask me, this is, this is what I did. What |
| 11 | 00:02:02 --> 00:02:15 | should I be observing in this? And how should I think about it? And how do I go forwards, I don't repeat that. The choice of words, the terms that she used to |
| 12 | 00:02:16 --> 00:02:28 | nail down the core issue, was never judgmental. It was never self reflecting in a negative tone. She was open always, for the reinforcement from me as her |
| 13 | 00:02:28 --> 00:02:40 | educator. And she trusted the fact that what I was going to tell her was sufficient. In all of the time as an educator, even back in the 90s, when I |
| 14 | 00:02:40 --> 00:02:50 | wasn't really equipped to be teaching, I was teaching ahead of schedule. But even then, the gentlemen that I have trained, whether they're the successful |
| 15 | 00:02:50 --> 00:03:00 | ones that you've seen recently, or the ones that are quiet and haven't really found themselves yet. They had this characteristic that repeats among all of |
| 16 | 00:03:00 --> 00:03:13 | them. They take every minor setback as a major defeat, you would think that these guys have trained for the NFL Super Bowl, okay. They've worked very, very |
| 17 | 00:03:13 --> 00:03:24 | hard. And it's all on the line. Now. They got to get this trophy. This is it. This is the time this is the trading opportunity this week coming. Selling you |
| 18 | 00:03:24 --> 00:03:34 | gentlemen are thinking that's exactly what it's going to be like for you. And the ladies in my fold, my best student. She doesn't think like that. She knows |
| 19 | 00:03:34 --> 00:03:46 | that she has models, not one model, she has models. She knows that one of them will speak to her every single trading session. How did she get to that point |
| 20 | 00:03:46 --> 00:04:00 | where she can trust? Not only that it will repeat. But she doesn't fear losing. She has losing trades, very few of them. But why is she confident because she's |
| 21 | 00:04:00 --> 00:04:13 | done a lot of work before making money. She's kept herself away from judgmental criticism from everyone else while she was very influenced by the opinions of |
| 22 | 00:04:13 --> 00:04:25 | others in our community, my community, the community that was behind a paywall. She didn't want it and she still doesn't talk. She doesn't make herself known. |
| 23 | 00:04:26 --> 00:04:38 | She's never brought herself out in a position where she can be judged. Apart from my criticism about what is she did, either incorrectly or correctly. And |
| 24 | 00:04:38 --> 00:04:52 | I've been very careful to guard that responsibility that she's given me and trust the gentleman they want to be hard on themselves because they think it's |
| 25 | 00:04:52 --> 00:05:03 | like high school football and a coach needs to put it in her ass and say, Hey, you screwed it up. Do some laps. No If you don't defeat yourself even further, |
| 26 | 00:05:03 --> 00:05:13 | when you make a mistake, if you fail a funded account challenge if you blow an account, and you've been doing that very long, that's not something to be upset |
| 27 | 00:05:13 --> 00:05:23 | about. Every single football team, and it kind of sounds weird to be talking about this, because I'm not a football fan. But I'm trying to speak in terms |
| 28 | 00:05:23 --> 00:05:37 | where the gentleman in here, they can, they can draw a parallel to this, it kind of makes it more palatable. But you're doing the same thing, by equating the |
| 29 | 00:05:37 --> 00:05:50 | next trading day, the next trade, or this future coming week, as it's the be all end all. It's the be all end all that defines whether you are successful or not |
| 30 | 00:05:50 --> 00:06:00 | successful. And then when you are met with short term adversity, getting stopped out, getting chopped up on a day where you're not really fully equipped. You're |
| 31 | 00:06:00 --> 00:06:08 | not following your model. You're chasing price, you're getting impulsive about oh, well, you know, this doesn't really look like anything I've ever really |
| 32 | 00:06:08 --> 00:06:15 | trained to take a trade on. But yeah, I got a gut feeling, it's probably gonna go up here. That's gonna make it real easy to strip it down. And this is going |
| 33 | 00:06:15 --> 00:06:26 | to go for the boss or the coterie I'll just do that. Why overthink, it may make it complicated. And then you lose your ass. And then you'll want to communicate |
| 34 | 00:06:26 --> 00:06:35 | to me either by a direct message on trading view, or you'll send me an email that I'll never get to. Or you'll send something that is very judgmental, and |
| 35 | 00:06:35 --> 00:06:53 | yourself in a tweet. And the ladies don't do that. They don't do that. They're wired differently. Because they know they're more emotional, and more sensitive. |
| 36 | 00:06:54 --> 00:07:04 | And that's not a bad thing. It's not a weakness. That's a strength. Men. And not I was this way, too, when I was younger, when I lost, and when I blew an |
| 37 | 00:07:04 --> 00:07:14 | account. It just pissed me off. That's okay. I'm pissed off. I'm mad. I'm gonna go out there and war against it even harder. Instead of going back to what was I |
| 38 | 00:07:14 --> 00:07:23 | trying to trade? Am I trading something that's viable? That's going to repeat? Because if it's not there, I'm doing something that's not going to succeed at |
| 39 | 00:07:23 --> 00:07:33 | all? Is it sound logic to do what I'm doing? Think about when a woman gets pregnant. I've used this analogy before, but I know some people are in here, the |
| 40 | 00:07:33 --> 00:07:44 | first time hearing this. When your relationship with someone and you decide to either get pregnant or you happen to find yourself pregnant. And as a couple, |
| 41 | 00:07:45 --> 00:07:55 | the guy usually is like, Man, am I really ready for this? He puts it on himself. He's not giving birth, he's not carrying the baby. But all of a sudden he's |
| 42 | 00:07:55 --> 00:08:03 | thinking inwardly. Am I ready for this? I'm going to have to handle this. And what's the first thing the woman's doing? She's nesting. We gotta get the house |
| 43 | 00:08:03 --> 00:08:12 | ready. Bah, bah, bah, bah, bah, bah. Like, what the hell does happen? Who are you? Where did you come from? And everything is urgent about making sure things |
| 44 | 00:08:12 --> 00:08:27 | are ready. We have to prepare. What is she doing? What is she doing? She's following a model. The focus is on the model, not inwardly punishing themselves |
| 45 | 00:08:27 --> 00:08:40 | like the male does through fear judging him. Am I gonna be a good father? Am I really ready for this in some men, sadly, are weak, and they run away. They |
| 46 | 00:08:40 --> 00:08:52 | can't stick to the model. They can't stick to it. That's weakness. The female has got all the harder hard work the job the task of letting a human being grow |
| 47 | 00:08:52 --> 00:09:02 | inside of her getting enough rest managing the stress so that way she can do what's necessary for her body to grow this individual that will be birth nine |
| 48 | 00:09:02 --> 00:09:16 | months later. But the male thinks about things in terms of man, what am I gonna be able to do? What am I going to have to deal with? In a weak minded men, runs, |
| 49 | 00:09:17 --> 00:09:28 | they run. They can't they can't handle they can't stick to the task of following the model. The female understands the personal responsibility here. They're a |
| 50 | 00:09:28 --> 00:09:39 | team player, they're the birthing parent. The husband can only do so much the work is gonna be done predominantly by the the female because they're wired like |
| 51 | 00:09:39 --> 00:09:54 | they the trading is not it's not surprising to see how men struggle, egotistically psychologically more than a female because if you get down to the |
| 52 | 00:09:54 --> 00:09:59 | brass tacks, men are very, very one sided. |
| 53 | 00:10:01 --> 00:10:12 | Women are multi functioning multitaskers they can do things that men just aren't. But you give a man a task of slapping the shit out of somebody that has |
| 54 | 00:10:12 --> 00:10:25 | offended him or his woman or endanger them. Now he's in his element. Now he's formidable, you do not want to stand in front of that guy. He's not going to |
| 55 | 00:10:25 --> 00:10:39 | second guess anything. I have a sledgehammer in my hand. I'm about to mow you down. You are now in caveman mode. A female student, I've learned that, when I |
| 56 | 00:10:39 --> 00:10:49 | have a new student comes in, they're female. They're very organized. They're very organized. They're so highly organized. It's impressive. The guys are like, |
| 57 | 00:10:49 --> 00:10:57 | you know, just give me give me my sledgehammer. Just give me go ahead and just start breaking shit up. And the only thing that happens is, they have discovered |
| 58 | 00:10:57 --> 00:11:12 | that they're not equipped. We're organized the fall of the model. swinging an axe, it sounds simple, right? Go to pick up an axe, hit that piece of tree. But |
| 59 | 00:11:12 --> 00:11:21 | a proper procedure would be hold the axe like this, don't swing it like that. wear eye protection. Make sure there's no one around you when you swing it. So |
| 60 | 00:11:21 --> 00:11:31 | we don't hurt anybody. There's a trading model in that. Now, usually, it's the mom that sees the dad out there swinging the friggin axe, right next to their |
| 61 | 00:11:31 --> 00:11:41 | son who's got headphones on looking at his phone, he's walking in the striking distance of that axe. And she's in there thinking, this sumbitch ain't watching |
| 62 | 00:11:41 --> 00:11:51 | what he's doing. He found a model. He looked at this swinging an axe, what is she doing, she's following the model, parenting. It takes a great deal of |
| 63 | 00:11:51 --> 00:12:01 | personal responsibility to go into this industry, number one, and you have to be personally responsible and organized and also prepare for adversities, you have |
| 64 | 00:12:01 --> 00:12:09 | to prepare for it. And when when a woman gets pregnant, she understands there's gonna be a whole lot of responsibility and changes and they have to do things |
| 65 | 00:12:09 --> 00:12:23 | while they can before the baby comes. Your model is much much like that. And you have to have time getting prepared for that model. Getting your house ready for |
| 66 | 00:12:23 --> 00:12:36 | it. And when if you rush out there and try to do things that you're not equipped to do. Rushing, trying to make money with something you have not convinced |
| 67 | 00:12:36 --> 00:12:47 | yourself that this model repeats. losing streaks are going to happen to everybody. If you have two losing trades before another winning trade, you just |
| 68 | 00:12:47 --> 00:12:58 | had a losing streak. Don't call it anything other than that, because it's exactly what it was. Yes, you had another win after that. You had a loss. But |
| 69 | 00:12:58 --> 00:13:07 | you've had two consecutive losing trades, you just suffered a losing streak. There's nothing to be ashamed about. That's normal. It's extremely normal in the |
| 70 | 00:13:07 --> 00:13:17 | beginning. But some of you think that that's a knock against your ability to eventually be successful at this or that somehow that that's a weakness, we got |
| 71 | 00:13:17 --> 00:13:28 | to prove that we can have that we can't lose money, losing a little bit of money. And I just showed this on Friday. Knowing where you do not have the |
| 72 | 00:13:28 --> 00:13:42 | advantage, letting a loss do its job. limit how much exposure you have that at risk. Determine by following a model. I have multiple models, you're going to |
| 73 | 00:13:42 --> 00:13:51 | have eventually more than one model to but in the beginning, it's unrealistic for you to have multiple models that you haven't even done the work to learn how |
| 74 | 00:13:51 --> 00:14:06 | to do one well. All of you are capable of doing this. Some of you are incapable of allowing yourself to develop properly and losing trades and how you deal with |
| 75 | 00:14:06 --> 00:14:16 | losing trades or losing streaks. The easiest solution to that is understanding your model. How many times have you seen a silver bullet form? Between 10 |
| 76 | 00:14:16 --> 00:14:28 | o'clock and 11? o'clock? A lot right? How many times if you tried to trade it incorrectly and had a loss, whether it be demo paper tape reading or a Live |
| 77 | 00:14:28 --> 00:14:38 | account were funded account challenge and you lost? And then immediately I guarantee you're thinking, oh no. I see these wrong, man. He said it was never |
| 78 | 00:14:38 --> 00:14:46 | going to change. They're never gonna change the algorithm. Here it is. It's proof. I lost them straight did something wrong? You felt like I didn't. Why did |
| 79 | 00:14:46 --> 00:14:56 | you feel that way? Because you haven't been doing enough of the back tests and the trust it's there all the time. But you don't have the skill set and the |
| 80 | 00:14:56 --> 00:15:07 | experience to see the right one the right Wrong liquidity. There's days where the economic counter in the market structure implies that even though there's a |
| 81 | 00:15:07 --> 00:15:12 | high degree of probability, there's going to be a silver bullet between 10 o'clock and 11 o'clock, New York local time, two o'clock to three o'clock, New |
| 82 | 00:15:12 --> 00:15:22 | York local time, and three o'clock in the morning to four o'clock near political time. There's three setups per day, even though it's likely, the invitation is |
| 83 | 00:15:22 --> 00:15:32 | there for it to manifest itself in the price delivery does not imply or a need need for you to be in there expecting it to happen for you. That's a Gambler's |
| 84 | 00:15:32 --> 00:15:51 | mindset. Knowing that this will repeat, knowing that the model is sound, the logic is based on real fundamental delivery of price. It's going to happen. You |
| 85 | 00:15:51 --> 00:16:03 | will not you should not. And you cannot get emotional about that loss. It's impossible. It's literally impossible if you've done the work of back testing. |
| 86 | 00:16:03 --> 00:16:13 | And you've seen how many times it's done it. How many times you would have seen it and potentially failed. But yet, the next day or next trading session, it |
| 87 | 00:16:13 --> 00:16:23 | materializes. And there it is. But if you over leveraged, and you placed more emphasis on the outcome of that singular trade, because you just got $100 more |
| 88 | 00:16:23 --> 00:16:38 | you can get to that fund that account, you'll pass your challenge when you have that small, little obstacle, and you want to do more than necessary to overcome |
| 89 | 00:16:38 --> 00:16:51 | it. So that way you can get to some feet, some plateau, a funded account. And then you lose it. And you feel like I should have never done that. Let me hurry |
| 90 | 00:16:51 --> 00:17:02 | up and fix it. And you're jumping in, when there's no model there to be entering on. You're impulsively reacting to what price is doing right now after you've |
| 91 | 00:17:02 --> 00:17:11 | taken a loss, whether it being squeezed out of the marketplace, or actually getting a hard stop hit. At that moment, your brain is going to revert back to |
| 92 | 00:17:11 --> 00:17:24 | what you know. What have you been trained to observe in price? If you've done no back testing, you've collected no journals of these things occurring and growing |
| 93 | 00:17:24 --> 00:17:39 | comfortable with sometimes you might get it wrong. The model is not incorrect you are when I mess it up, I did it wrong. But when you have a loss, you should |
| 94 | 00:17:39 --> 00:17:49 | not go and start imagining the the end of the world like you have to hurry and fix this. Lord forbid you go home with a negative drawdown. Lord forbid that |
| 95 | 00:17:49 --> 00:17:59 | can't happen. I mean, we're supposed to be profitable every day. We're supposed to be profitable, every trade. That's not practical. You're learning how to do |
| 96 | 00:17:59 --> 00:18:07 | this. In the beginning, you gotta give yourself permission to hey, I'm going to make mistakes. And you want to learn how to make those mistakes safely and |
| 97 | 00:18:07 --> 00:18:18 | beginning and make lots of them. Because that's where your learning is going to come in the mistake of trying to avoid losing or losing streaks only invites |
| 98 | 00:18:18 --> 00:18:30 | more of that. It's a weird paradox. The more you try to avoid taking a loss, the more likely you're going to have them. Why? How could that possibly be like |
| 99 | 00:18:30 --> 00:18:45 | that? Because you're trying to do something psychologically, emotionally stimuli is is forcing you to act impulsively, instead of following the model. How many |
| 100 | 00:18:45 --> 00:18:59 | silver bullets can form? In that one hour? You're looking for one. So you're looking for, it's not gonna be six of them. Can be a baker's dozen. It's one. |
| 101 | 00:19:00 --> 00:19:10 | And if you missed it, or you did it wrong, don't go back in, let it go. It's gonna be real, real hard for the men to do that. But the ladies in my fault, |
| 102 | 00:19:10 --> 00:19:18 | they're like, You know what? I'll just take read the rest of it. I'll journal it. I'm not going to beat myself up about it. And it's just more experience |
| 103 | 00:19:19 --> 00:19:31 | next. No, no, they're not the guys. You just imagine John Wick, okay. They just lost they just got stopped out there trade. That's it. Where's my sledgehammer. |
| 104 | 00:19:31 --> 00:19:41 | I'm going down in the basement. I'm busting my bases. floor up and pulling out another weapon. I'm going to war. I've done it. Trust me. I've done all that |
| 105 | 00:19:41 --> 00:19:55 | stuff. And every time I did that the account got blown. You turn one small, little insignificant loss into a comeback story. That becomes a tragedy. And you |
| 106 | 00:19:55 --> 00:19:56 | do it to yourself. |
| 107 | 00:19:56 --> 00:20:08 | It's very easy to unplug. If you have the data the resources of collecting these back tested results, studying a model, sticking to the rules. You're not |
| 108 | 00:20:08 --> 00:20:15 | supposed to be going in there taking multiple entries between 10 o'clock and nine o'clock, you're not supposed to be doing that. That's not the model. If you |
| 109 | 00:20:15 --> 00:20:28 | missed it, don't chase it. Let it go, the ladies in my fold, they can do that easily. The men know it's an invitation to a street fight. They're wanting to |
| 110 | 00:20:28 --> 00:20:37 | bring a knife to a gun by a gunfight. That's exactly what they do. And I love them for their tenacity and their willful commitment as the owner and just do |
| 111 | 00:20:37 --> 00:20:51 | battle. But you have to pick and choose your battles, man. You can't go in there expecting your weapon to do what's usually formidable and capable of doing what |
| 112 | 00:20:51 --> 00:21:00 | it's necessary and a silver bullet or whatever model that you're trying to work with. If you've missed that opportunity, the probabilities of you being |
| 113 | 00:21:00 --> 00:21:12 | successful with that moment have shifted to less likely not impossible, but less likely. So why would you want to push at that moment where you're now highly |
| 114 | 00:21:12 --> 00:21:25 | sensitive to the fact that you have taken a paper cut? And that's exactly what it should be not 10% of your account? Not? Well, you know, I lost the max loss |
| 115 | 00:21:25 --> 00:21:39 | on my funded account challenge today. Why? Why? Why opening yourself up to that measure of risk, because you want to get through that funded account challenge |
| 116 | 00:21:39 --> 00:21:45 | fast. Because you think that something magical is gonna happen, you're not going to have losing trades, when you get to the funded account, you're going to be |
| 117 | 00:21:45 --> 00:21:51 | scared to death. If that's how you feel when you're in a funded account challenge portion of it, when you get to the funding level, you're gonna be |
| 118 | 00:21:51 --> 00:22:00 | scared, you won't want to take a trade. And you're gonna wait and watch price start moving outside of the entry time when you should have taken it, then |
| 119 | 00:22:00 --> 00:22:10 | you're gonna exit way too soon, too. So you're gonna chase price where it's not in a very low problem, I'm sorry, low risk, high probability entry. Silver |
| 120 | 00:22:10 --> 00:22:17 | Bullet, you're going to wait for what you think is confirmation, the price is going to move. And you're thinking okay, yes, right. It's definitely going now, |
| 121 | 00:22:17 --> 00:22:24 | it's unmoved eight handles in s&p. And I could probably eke out for more because it's about ready to go to that buy side. So yeah, I'm giving up eight, I'm gonna |
| 122 | 00:22:24 --> 00:22:33 | make four. So you know, it's not real money. Anyway, it's a funded account challenge. If that's how you're thinking, and folks, you need to be real honest |
| 123 | 00:22:33 --> 00:22:42 | with yourself. If that's what you're doing right now, you're not prepared to be trading with a funded account or live money at all. And I know that doesn't feel |
| 124 | 00:22:42 --> 00:22:53 | good to hear that. But that's exactly the medicine you need to take right here right now. If you're ignoring, if you're ignoring the fact that you're not |
| 125 | 00:22:53 --> 00:23:02 | prepared, see my female students, they bring those observations about themselves. To me with those very things point out, this is what I'm feeling. |
| 126 | 00:23:03 --> 00:23:11 | This is what I'm thinking about the time when I take a loss, this is what I'm considering. Is this right? If it's not right, telling me I should be doing. The |
| 127 | 00:23:11 --> 00:23:31 | men want to complain to me, that it's hard. What's different there? They went out to battle. And they got their ass kicked in, they want to be coddled. The |
| 128 | 00:23:31 --> 00:23:40 | women understand that they're not going to win every time. But they gotta make preparations, things still gotta get done. Even if they take a loss, they still |
| 129 | 00:23:40 --> 00:23:48 | have to keep their account. Men think well, you know, I can respond. It's only this much money to restart the account, my son did the same thing. That was the |
| 130 | 00:23:48 --> 00:24:00 | mentality that was his words. It doesn't cost that much to reset it. So I'm just gonna try to do it really fast. When that's not doing anything, but fostering |
| 131 | 00:24:00 --> 00:24:14 | poor habits. You're inviting difficulty in your trading when you think like that. And what do you think's going to happen over time, trading like that? Ill |
| 132 | 00:24:14 --> 00:24:20 | equipped you haven't done tying back testing. You haven't collected data to support the idea that the model you're trading with or trying to trade with? If |
| 133 | 00:24:20 --> 00:24:29 | you're even following? What's the sense even going through learning a model if you're not going to adhere to it? What's it What's this? What's the whole |
| 134 | 00:24:29 --> 00:24:40 | purpose of even studying certain things, whether it be by me or someone else if you're not really going to follow the model? I have lots of students mail that |
| 135 | 00:24:40 --> 00:24:48 | say I follow this and I say, Hey, show me your trades. They're real uncomfortable with that, because when they show me their trades, they're |
| 136 | 00:24:48 --> 00:25:01 | entering way outside the boundaries of where the trade should be taken. What's going on there? They're not following the model or the They're not good enough |
| 137 | 00:25:01 --> 00:25:11 | to identify because they haven't spent enough time studying old moves, and getting bored with that. Then tape reading and seeing repeat every think about |
| 138 | 00:25:11 --> 00:25:21 | why I gave you that model. Why don't give you that model. It's a high frequency trading model that repeats every single day, three sessions per day. I already |
| 139 | 00:25:21 --> 00:25:30 | know what you're looking for. You want to have experience quickly. You don't wanna be waiting on a daily chart setup. You want to learn what it is, you're |
| 140 | 00:25:30 --> 00:25:37 | supposed to know, you want to get out there, do what you have to do, and start making money. I get it, folks, I understand. But there are certain things that |
| 141 | 00:25:37 --> 00:25:46 | you cannot speed through. You can't just rush through it and think that oh, you know, I'll I'm going to be the exception. You know, I'm really good at this. You |
| 142 | 00:25:46 --> 00:26:01 | don't understand ICT, you know, I was made for this, I was built for this. When you include money in that you have now changed the whole dynamic. It's not |
| 143 | 00:26:01 --> 00:26:12 | enough to be right or wrong anymore. Now you have to be right. And if you're wrong, not lose more than it's reasonable. So if you're not going to follow |
| 144 | 00:26:12 --> 00:26:25 | model, if not going to train yourself to see what it is that should be followed and allow the data to support the idea that the model sound you're not going to |
| 145 | 00:26:25 --> 00:26:33 | have the mentality to follow it. Because you're not going to trust you haven't seen it enough. You're familiar with Oh, yeah, that's a fair bag. Yep, it's |
| 146 | 00:26:33 --> 00:26:45 | easy. They've been around since 1900s. These are people that can't follow a model. You don't want to be that. You want to be someone that says you know |
| 147 | 00:26:45 --> 00:26:52 | what, I'm treating this like a business. Okay, I don't have time, things are things are changing, I want to be ahead of all this stuff, I want to start |
| 148 | 00:26:52 --> 00:26:59 | making money consistently. And I want to be able to weather losing streaks and know that it doesn't mean that the model is broken, it doesn't mean that the |
| 149 | 00:26:59 --> 00:27:10 | algorithm has been canceled and done away with the markets have now shifted into some kind of unknown randomness. You're going to trust that you did it wrong. |
| 150 | 00:27:10 --> 00:27:17 | Okay, there's nothing to beat yourself up about, there's another opportunity coming around a couple more hours, just sit around, wait for it. Don't rush to |
| 151 | 00:27:17 --> 00:27:29 | get in and get it back. Don't fear losing because the fact that you trying to prevent a loss, you are going to do things to actually invite it. And that will |
| 152 | 00:27:29 --> 00:27:37 | be a repeating losers cycle that you will go through and won't identify it. You'll swear up and down your file in the model, you're swear up and down, that |
| 153 | 00:27:37 --> 00:27:54 | the broker did it to you. That so and so did it to me again, them guys did it to us guys. When you just didn't do it, right. That's all. And mental health is |
| 154 | 00:27:54 --> 00:28:05 | managing. I understand bipolar. And this is going to be something of a rich topic to touch on. But I think I'm equipped to do so I wrestle with a lot of |
| 155 | 00:28:05 --> 00:28:17 | that kind of stuff. And it's very hard for me to focus. I have to imagine my son being in front of me when I'm talking like this, because when I allow myself to |
| 156 | 00:28:17 --> 00:28:29 | think about how many people are actually listening messes me up. Doesn't sound like that does it. But that's the truth. Your mental health as a trader needs to |
| 157 | 00:28:29 --> 00:28:39 | be guarded, you got to keep all the bullshit out. No negative. Don't give these jokers on the internet time to give you any kind of second guessing or doubting |
| 158 | 00:28:39 --> 00:28:49 | what it is that you're doing. Or inspire you to want to go out there and bring them evidence. Fuck these people, they they're broke. They want to see if they |
| 159 | 00:28:49 --> 00:29:02 | get a rise out of you. If they can, they own you for that moment. They own you who's in control yourself at that moment? They are. So you want to be guarding |
| 160 | 00:29:02 --> 00:29:14 | your mental health. And the way you keep yourself on the right road in progress is by following the model that you've back tested. That you have seen sometimes |
| 161 | 00:29:14 --> 00:29:28 | it doesn't work well in your hands and that's okay. You had a car accident. You were hit a manhole your head curved with your tires. What happened? Something |
| 162 | 00:29:28 --> 00:29:38 | cost money right? Did you start wanting to drive a car because you did that? Know that same thing that you need to treat your trading with? You need to look |
| 163 | 00:29:38 --> 00:29:44 | at your losses. If you cannot make I make sure I say this correctly because |
| 164 | 00:29:46 --> 00:29:56 | the focus is your you're starting to learn how to do this. So you don't really have a baseline yet. You need to determine what you can realistically make. Well |
| 165 | 00:29:56 --> 00:30:04 | I've given you a target which is five handles. It's very low hanging for It's very easy to get to it immediately for someone new, it doesn't feel so easy, |
| 166 | 00:30:04 --> 00:30:16 | does it? But over time you'll get there. It's easy. And you know, grow exponentially beyond that. But if you're trading, one micro, not many micro, |
| 167 | 00:30:17 --> 00:30:32 | what are you really risking? If you risk five handles to make 525 bucks? Man, I don't got time for the 25 bucks thing ICT? Well, then I can't help you. Because |
| 168 | 00:30:32 --> 00:30:44 | what you're saying is, is you don't want to condition your your mind the follower model. Because if you can do that very, very well. What do you think's |
| 169 | 00:30:44 --> 00:31:03 | happening when you apply it to one minute, and then eventually, five minutes 1015 You're not equipped to appreciate the level of focus that's required for |
| 170 | 00:31:03 --> 00:31:15 | you to trust the model, not looking at the money. The ladies in my fold, they do it right, they go from the lowest potential risk, the leverage that you can use |
| 171 | 00:31:15 --> 00:31:23 | the least of, they work with that until it becomes so easy for them to stick to the model. They don't care about the money. Because they're following the model. |
| 172 | 00:31:24 --> 00:31:36 | They use the aspects of money management and proper risk management, that means my better traders only risk half of what they know they can make every single |
| 173 | 00:31:36 --> 00:31:52 | day easily. Let's assume for a moment that it's very easy for them to go out and get 10 handles in the s&p on one minute. That's 500 hours. Never let your loss |
| 174 | 00:31:52 --> 00:32:02 | be more than 250 bucks. Because it's easy for you to recoup that. If you're going to trade another session, you're gonna be able to do it with half the |
| 175 | 00:32:02 --> 00:32:10 | leverage. You don't think about like that, do you think about well, I took a loss. Let me just double up because it's only got to move this a little bit now. |
| 176 | 00:32:12 --> 00:32:20 | I can get it back and get even more I might get lucky in it. Right. Ron? Are you sticking to your mountain? Nope, you're trading impulsively. You're gambling, |
| 177 | 00:32:20 --> 00:32:29 | you're doing a scratch off. That's a scratch off trader mentality. I'm gonna spend a buck I might win 500 bucks. Yeah, well, you could have wasted $1 and the |
| 178 | 00:32:29 --> 00:32:32 | gas money to go there in the time you've been doing all that nonsense. |
| 179 | 00:32:38 --> 00:32:50 | Your mental health is rewarded. By filing a model that you've investigated, you tested back tested, collected data on your management of losing trades, improves |
| 180 | 00:32:50 --> 00:32:56 | over time, because you know that losing trades are going to happen and you can't avoid every single one of them, it's not going to happen, there is no way to |
| 181 | 00:32:56 --> 00:33:08 | possibly avoid every single one of them. And when you have a model, and you have a loss, you reflect on the market internals at the time that you took that loss |
| 182 | 00:33:08 --> 00:33:19 | and this, if everything is still there, and a trade still viable, okay, so when looking for leverage, or don't do anything at all. But don't plow near the same |
| 183 | 00:33:19 --> 00:33:29 | amount of leverage or chase it looking for confirmation. Because you're not following the model. You're trading your p&l and trading your p&l is a loser's |
| 184 | 00:33:29 --> 00:33:44 | game. You're trading the ebb and flow of your equity curve. Losers do that. Every person on that leaderboard that ever makes it that way on Robins got |
| 185 | 00:33:44 --> 00:33:52 | that's what they do. They trade their p&l equity curve. And that's why they go up and down the up and down and he fall off, you never see him again. It's a |
| 186 | 00:33:52 --> 00:34:02 | wonderful psychological study of watching that every year. And you're doing the same thing many times in your funded account challenges, or when you get your |
| 187 | 00:34:02 --> 00:34:11 | funded account, then you just can't wait to get a big win. And use the maximum leverage because hey, you know, I got through that funding account challenge |
| 188 | 00:34:11 --> 00:34:23 | pretty easy. Then it means time at all. overleveraged. I understand, but it's cheap. If I would have failed, I could have just paid for it a reset. You have |
| 189 | 00:34:23 --> 00:34:39 | to treat that account. Like it was your money. All of it, not just the reset all of it. Are you doing that? I would humbly submit that probably less than 5% of |
| 190 | 00:34:39 --> 00:34:54 | you do it like that. And that's what you're doing. That makes you ill equipped to be successful. You're not being responsible with the risk. You're not being |
| 191 | 00:34:54 --> 00:35:06 | responsible with the money management aspects. The female trader system mifold she didn't like that. males don't, Sledgehammer swing, busted up, take it home, |
| 192 | 00:35:06 --> 00:35:19 | big payout, a man language. The ladies in my fold, I want to be scientific about this. I want to measure the risks, I want to stay within a risk parameter that I |
| 193 | 00:35:19 --> 00:35:30 | know I'm comfortable with. And if I take a loss, it's okay, I have a model I'm going to trust tomorrow or the next session, nothing changes. The men would do |
| 194 | 00:35:30 --> 00:35:46 | well to learn from successful women traders. But little Duke Energy prevents that woman at that moment is making more money than you are and more consistent |
| 195 | 00:35:46 --> 00:36:06 | and trading. Why wouldn't you? You'd be a fool not to. Society says that no, women are beneath men. Now. They're there under the arm, in the companionship of |
| 196 | 00:36:06 --> 00:36:20 | a male. Together, they're strong, real strong. That's what they're designed to be that way, a partnership. You lean on each other strengths, the woman usually |
| 197 | 00:36:20 --> 00:36:32 | relies on the capability of the male to defend the home and the family. That's their strength. Usually, the female is good at keeping the home in keeping |
| 198 | 00:36:32 --> 00:36:47 | things organized. So that way, the male doesn't have to worry about that. Men are generally really good risk takers, if not a strength. That means they can |
| 199 | 00:36:47 --> 00:37:07 | over leverage and feel no fear about it. Look at extramarital affairs, as a testimony feel it. And the women there historically better risk managers. As a |
| 200 | 00:37:07 --> 00:37:19 | community, I would love for you all. And I see it today. But the ones that are in the offing outside saying the women this and the women that guys are always |
| 201 | 00:37:19 --> 00:37:33 | better than men, women in trading. Now they're not. And I have data to support that. A lot of students, I can tell you, the best ones are the females. And I'm |
| 202 | 00:37:33 --> 00:37:50 | proud to say that because I have science behind me when I was going into this teaching, then you the I expected the females to stand apart. And you can say, |
| 203 | 00:37:50 --> 00:37:58 | Well, look, you know, the people that win competitions are usually men, and that saying that they're not willing to take exorbitant risks. And they may get |
| 204 | 00:37:58 --> 00:38:09 | lucky, it may pan out for them. That's not equivalent to skill. What did you just say? You heard the fuck I just said, you heard it. That's equivalent to |
| 205 | 00:38:09 --> 00:38:18 | that guy going out on the weekend. And having an affair and getting away with it. Does that make him a good husband makes him a piece of shit, they got away |
| 206 | 00:38:18 --> 00:38:30 | with it. But you keep stealing, eventually it's going to come home to roost. And mama ain't going to be real happy about that. You're going to come home with |
| 207 | 00:38:30 --> 00:38:47 | something and leave without it. And stuff wasn't going to help that. So I've listened to all of you today. And again, it's just it's really nice to hear the |
| 208 | 00:38:47 --> 00:39:02 | back and forth interactions, everybody and how you deal with certain things and how you've come up. And maybe I don't have a voice in the conversation that was |
| 209 | 00:39:02 --> 00:39:13 | had today maybe I don't have an opinion. It really holds much weight here in some of your eyes and think that were you to talk like this. I've seen the lives |
| 210 | 00:39:13 --> 00:39:28 | of many people change for the good and the bad when he got involved in trading. And the results are going to be determined by the amount of organization |
| 211 | 00:39:30 --> 00:39:45 | adherence to impeccable risk management. See, the males they want to be that sniper. They want to be extremely precise because that is equivalent to having |
| 212 | 00:39:49 --> 00:40:05 | some sighs in a man's mind they think like that. If I can get in with the least amount of drawdown My entry and get the highest exit strategy implemented from |
| 213 | 00:40:05 --> 00:40:17 | getting the maximum amount of the move, then I'm Alfa women and thinking about that woman saying, Hey, I'm going to trust my mom to pay me. And I'm gonna do |
| 214 | 00:40:18 --> 00:40:30 | all the heavy lifting through money management, I got to do is have a cookie cutter. And if I finally sound money management, that same little trade, IRS, |
| 215 | 00:40:30 --> 00:40:46 | we're pulling in five handles risking five handles, one for one, I can turn that into whatever I want it to be. Think about it. My grandma had one cookie cutter, |
| 216 | 00:40:47 --> 00:41:00 | a snowman. As long as he had dough, there's no limit to how many cookies as long as that dough was remained when she ran the dough, that's it, get no running. |
| 217 | 00:41:02 --> 00:41:15 | Your model is that cookie cutter, you have to keep this dough in the account, you do that? Multiply, you'll have more than just one cut, or that snowman for a |
| 218 | 00:41:15 --> 00:41:27 | cookie. They'll repeat. And it'll be exponential in its delivery in the results, but it will not happen because of luck, on a consistent basis is not going to |
| 219 | 00:41:27 --> 00:41:37 | come to you by way of shortcutting the growing pains that you're trying to avoid. It's about you embracing it and saying yeah, I'm willing to submit to |
| 220 | 00:41:37 --> 00:41:44 | this because I know it's worthwhile. And if I have a losing trade, if I have a series of losing trades, I'm not going to lose sight of what it is I'm trying to |
| 221 | 00:41:44 --> 00:41:54 | do. That means there's opportunity for me to improve upon, what did I do wrong there. And I'm not gonna beat myself up for that. I'm going to go into the data |
| 222 | 00:41:54 --> 00:42:07 | and say, Okay, this is what I should have done. And now I'm going to learn from that, not beat yourself up about it. And over time, in closing, you will have |
| 223 | 00:42:07 --> 00:42:21 | learned the trust the model that you can use and implement at your disposal, you can go in any any given day trading, and not have any fear of the results. But |
| 224 | 00:42:21 --> 00:42:31 | expecting what you have proven to yourself already. That it works that it does pay out if you follow the model, but if you do anything outside the model, the |
| 225 | 00:42:31 --> 00:42:38 | results are garbage. That's the mindset you should have your mental health needs to be focused on. |
| 226 | 00:42:39 --> 00:42:47 | Am I training the model? Am I following the rules? Am I keeping risk at bay, because in the beginning, that's what it's all about. It's not about making a |
| 227 | 00:42:47 --> 00:43:01 | lot of money. It's about being able to be profitable, and lose very little. And being comfortable like that. And over time, your losses become more infrequent. |
| 228 | 00:43:02 --> 00:43:13 | More more upside in terms of profitability is available to you because you've done everything that's correct. And you got to your mental health, by not |
| 229 | 00:43:13 --> 00:43:23 | allowing anybody to talk you out of what it is you're doing. Because life in itself will will. The stars will align. And you'll have a day we had a losing |
| 230 | 00:43:23 --> 00:43:30 | trade. And at the time, it wasn't that much of a loss. But then you're going to invite the opportunity for someone that doesn't give a shit about you to give |
| 231 | 00:43:30 --> 00:43:39 | you their two cents, their opinion about what you did. And they don't have a trade, they can't make money. They have no idea. They're gonna tell you sure you |
| 232 | 00:43:39 --> 00:43:48 | want to be doing that. Now, what did you just do you invited something that you're going to him and haul over thinking and worrying about? Am I really |
| 233 | 00:43:48 --> 00:43:54 | equipped for this? What did I really do today? It's really sucks. This person knows this about me. I wish I never would have said it. What are you doing? |
| 234 | 00:43:54 --> 00:44:05 | You're spending mental capital? Is that good for your mental health or No? No. Profitable traders don't give a fuck what other people think about what they're |
| 235 | 00:44:05 --> 00:44:14 | doing. They don't care. They're not inviting other people into a conversation about their finances. They're not inviting them to tell them how to trade or |
| 236 | 00:44:14 --> 00:44:23 | model better, or what they should be doing differently. That's someone that doesn't know what the fuck they're doing. Would you feel confident going into |
| 237 | 00:44:23 --> 00:44:33 | the see your surgeon and owning the surgery day? And they turn over and say, Hey, listen. Do you think I should do it this way to a person that's not dressed |
| 238 | 00:44:33 --> 00:44:44 | like a doctor? That wouldn't inspire confidence with no one. But that's what you're doing. You're the surgeon in this and you're taking the investment advice |
| 239 | 00:44:44 --> 00:44:54 | from Carl, the temp he doesn't even have a full time position yet at your job. He's just working in a cubicle doing bullshit work, and you're letting him tell |
| 240 | 00:44:54 --> 00:45:03 | you what you should be doing or having the influence that he gives on your outcome. Have a trade. That's the equivalent. That's exactly what it is. It's |
| 241 | 00:45:03 --> 00:45:16 | silly, I know. But that's exactly what you're doing. And I love the fact that this community guards everyone's mindset and keeps everybody on the on the right |
| 242 | 00:45:16 --> 00:45:26 | path. That's exactly how you use social media, you have to have a mind. Like, you have to have a hive mentality. And people want to call it a cult, fuck them, |
| 243 | 00:45:26 --> 00:45:35 | they're broke. They're going to be in the same position or worse, two years from now you want it, you're gonna be somewhere better. Because what you're doing is |
| 244 | 00:45:35 --> 00:45:46 | you're keeping yourself around other people that are positive. You're not hanging around toxic people. It's draining. You're upbeat about it. You feel |
| 245 | 00:45:46 --> 00:45:54 | good. And you're doing it on a fucking day that you can't even trade. I guess you can move on. But right now you're all hanging out on the weekend, when |
| 246 | 00:45:54 --> 00:46:04 | everybody else is out there trying to get drunk. Eating fucking potato chips, pork rinds, getting fat, not exercising and doing everything else about life |
| 247 | 00:46:04 --> 00:46:16 | that isn't correct for living a very successful healthy lifestyle. What are you doing? You're hanging around people that want to be winners. You're hanging |
| 248 | 00:46:16 --> 00:46:25 | around people that are aspiring to do the same thing you're doing. That's the right way to do it. Because if you hang around shit, you're gonna start smelling |
| 249 | 00:46:25 --> 00:46:42 | like it. Who's Who in your friends circle are negative. Who in your family do you avoid at all functions that's what this community keeps out. And that's |
| 250 | 00:46:42 --> 00:47:05 | fucking awesome. It's not weakness. But strength. When bullshit comes in bullshit gets booted there's a honey bee. They're pretty, pretty good together, |
| 251 | 00:47:05 --> 00:47:15 | they work real well, we collect honey and produce honey rather, gathering all the nectar and such but there's a wasp that comes in and can really do a lot of |
| 252 | 00:47:15 --> 00:47:26 | damage to them. Cut them all up real quick. But these honey bees, when they get an intruder like that, and it comes into the hive, they all mounts around it. |
| 253 | 00:47:26 --> 00:47:38 | And they call it a murder ball. And while they can't physically pierce that larger be and do any kind of damage with it. The fact that they group around it, |
| 254 | 00:47:39 --> 00:47:49 | they swarm it and they shake themselves violently in a raise the temperature of any basically microwave and cook it. That's what this community does. When an |
| 255 | 00:47:49 --> 00:48:01 | asshole comes in here, they produce a murder ball around it. And they can't stay. They die. You have to guard your mental health. You can't let assholes in. |
| 256 | 00:48:02 --> 00:48:15 | You can't let shit come in. You put shit in your good shit out. You're trying to learn how to do the most difficult thing in the world against the most smartest |
| 257 | 00:48:15 --> 00:48:25 | individuals and shrewdest corrupted motherfuckers have ever walked in the planet, and you're doing it in their backyard. You think you're gonna have some |
| 258 | 00:48:25 --> 00:48:32 | adversities? Yeah, of course, you're gonna have adversities. But there's advantages that you have to learn to wait for and take them when they're there |
| 259 | 00:48:33 --> 00:48:51 | and avoid it when the probabilities are low. Pick your shots gave me so anyway, I've taken enough of your time. I've enjoyed everyone's input today and I look |
| 260 | 00:48:51 --> 00:48:52 | forward to the next one you guys do |