ICT - If I Knew Then - Part 1 of 4 - Where Would I Focus.srt

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ICT: MacBooks This is going to be a four

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part series. And right away, let me get

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your expectations in alignment. This

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first installment or Part one is

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basically one of those commuter episodes

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going back and forth to work. You can

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listen to it that way because there's

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not really anything in this one there's

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going to be graphic intensive, no words,

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no charts, nothing like that. No market

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makers secret concepts being revealed on

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some charts. It's basically a

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hypothetical conversation with my

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younger self. I get questions a lot by

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email. If I could go back in time. You

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know what I like to do differently and I

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kind of like twisted that whole idea to

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come up with the perspective. And if I

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could go back and tell myself what I

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know now, and this is basically a

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hypothetical conversation with my

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younger self.

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If I could go back to the start of it

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all, knowing what I know now, said,

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Everyone, how many times have you looked

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at a circumstance in your life not just

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in trading, but in anything, every facet

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of your life you wish you could go back

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knowing what you know now, I used to

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hear my grandparents say things like

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that. And I was like, What? I couldn't

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relate with it and or to it, but being

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47 about the term 48 years old. There is

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a laundry list of things. I wish I could

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go back and change not just in my

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trading journey, but in all facets of my

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life. So I shared a bunch of those

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personal things. Today on my Twitter

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feed, if you haven't been over there you

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can take a look at that and see my my

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open discussion about many of the

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frailties in my personal life coming up

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as a younger man into where I am today.

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I want to talk a little bit about some

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of the things that I wish I could go

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back in time and tell my younger self.

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Now, the way you can use this for

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yourself is take what I'm saying with a

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great deal of appreciation because I

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weathered a lot of storms, financially

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and personally, to get to what I know

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now. And you may be a very young person

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and or an older person just now getting

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involved in the markets. You're going to

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have the same growing pains that

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everyone else has, and some of these

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things are going to be things you

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probably read in books heard other

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people talk about, but I'm going to give

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you my personal spin on some of them and

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how it applied to me. So it's kind of

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like a little bit of a little history

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book of what I was plagued with in my

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first six years. The first six years of

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my trading development, the first six

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years of my trading, development is

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plagued with everything you could have

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possibly done wrong. And I want to kind

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of like use this discussion to kind of

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like go through some of the major

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hurdles that I had. And again, since I

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have children, adult children now they

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can hopefully listen to this and mine.

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The, I guess the experience portion of

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it, because a lot of the things that

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I've put on my YouTube channel and I've

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taught over the years

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it's

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heavily technical There's a lot of

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things that are going on in the chart.

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And I am always accused of being long

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winded. And again, if you're not into

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you really understanding what is most

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likely going to plague you, if you just

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want to go through it yourself and have

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all that experience. Have at it, don't

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even listen to this video. And there's

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no harm and you're not listening to this

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part, you could really just so Kevin's

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going to wait to part two, but it's

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meant to be a resource for you to glean

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experience from without having to go

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through the suffering portion of it. So

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if I were to go back in time, and I

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could sit at a table and talk to my

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younger self, what would I tell him or

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me? Where to focus? What should I as a

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younger person, focus on in my

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development as a trader. First thing,

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don't seek the approval from others.

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Right away. That's the number one One

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characteristic of a successful trader.

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Now, you might not agree with the things

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I'm going to say in this episode, I'm

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just speaking from my own personal walk,

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and the things that I had to endure.

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When I first started, the first people

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that I look to get approval with, with

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my family. And I love my family, both my

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immediate and extended family, but none

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of them shared in my excitement. They

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gave me all the reasons why it was a

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poor decision. It was a bad idea to get

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involved in it, I'm going to just lose

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money, and just accept working for the

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rest of your life and simply not in the

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cards for me, I just didn't want to do

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that. So you don't want to seek approval

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from your family because they're not

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going to understand what you're trying

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to do. They're going to give you all of

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the heartfelt reasons why they're going

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to try to protect you from yourself,

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when they don't really understand what

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it is that you're trying to do or learn

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Don't seek the approval of your friends.

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Number one, your friends are only going

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to be interested once you start making

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money. When they start seeing the

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changes in your life, then and only then

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will your friends be on board with it.

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Your friends, much like your family,

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really, don't feel comfortable with you

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being successful because if you tell

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them what you're going to do, and you

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get to the point where you succeed at

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it, you act like a mirror for them. And

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they will always look to you as a

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reminder of what they failed to pursue

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in our own life. So again, don't try to

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seek the approval of others, Family

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First, and friends because it doesn't

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work out. Third, don't go to work until

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your co workers that you're going to be

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quitting your jobs and I made all those

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errors, okay, and many, many times I've

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shared the low income I our heavy

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workload job that I was doing as a young

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man when I was beginning this journey.

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And I just don't think that it's a good

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practice for anyone to go to work and

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tell their co workers number one,

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they're going to be giving you again,

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all the worst feedback you're ever gonna

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hear. Yeah, right, you'll be here with

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me the rest of your life. You're going

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to retire from here, all those things,

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okay. So when you get this feedback from

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your co workers, you're going to hate

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going to work even more, because you

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might have liked going to work it to

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some degree and hanging out with the

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people you work with. Talking about

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sports, talking about movies, talking

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about the opposite sex. All these things

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that you had a common, I guess agreement

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on or an interest in, will start having

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a great divide, because you're going to

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look at them as a source of

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annoyance and they're just gonna look at

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you as You're pipe dreaming, and you're

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not going to get to where you're going,

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and it's going to be fun for them to

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watch, you fail. And you don't want to

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have someone constantly, you know,

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poking you every day. It looks like

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you're still here. I guess I'll see you

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to work tomorrow. No types of things is

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what I had to endure. So don't tell your

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co workers which you're going to be

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doing. Don't tell your boss, what you're

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gonna be doing. You're going to

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basically fire your boss and fire your

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co workers when the time is right, but

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you don't want to broadcast it. Because

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all it's going to do is provide them a

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timeline when they think you should be

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doing it in teach you the entire time.

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So your family's gonna constantly give

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you heartfelt advice of why you

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shouldn't do it. Your friends are going

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to say, I'm not really interested. But

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if you get successful, I might be

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interested in then. So what why tell

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them and coworkers are going to give you

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every negative thing because they hate

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their life. They're at the same place

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you're at your job. To escape, so why

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would you want them to pump you up?

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That's what we do as humans, we want to

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have our peers say, Yeah, that's a good

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idea. But how many times in your life

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Have you ever had that experience? I can

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tell you, unless it was my fifth grade

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teacher, Mr. lorber. Or it was my uncle

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that talked to me about commodities when

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I was 16 years old. And taught me about

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narrow sideways channels and 123 tops

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and bottoms and head and shoulders, and

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all those bull flags and things. At 16

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years old, I was looking at it and it

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was going in one ear and out the other.

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Okay, so when you tell all your family,

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your friends and your co workers, that's

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what's happening, and they're not going

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to say, you know what, that's brilliant.

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I wish I would have thought of that.

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That's the reality. That's the reaction

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you're expecting, right? It never works

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out that way. But yet we all do it as

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humans. We want to Have that that's a

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good idea, response and it never comes.

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So what does it do? It causes deflation.

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You don't want to be around these

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people, because now you're like, I wish

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I would have ever said anything. But

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once you put it out there, it's done.

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And lastly, strangers. As a young man,

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when I was doing my job would finish

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off, you know, filling up the candy

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machines and the soda machines and

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coffee machines and such. And I used to

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do a vending route, and did a long day,

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13 hours or so. And during my route, I

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felt this unreasonable desire to tell

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other people that I don't even know.

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Yeah, I'm looking at a market and hope

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it goes up and then blah, blah, blah.

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What? What do you talk to me about that

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for? So when you tell strangers or if

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you meet someone in the pub, okay, are

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you at a club or? Well, right now it's

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hard to go to those places right now

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because Of all the things that's been

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impacted by the illnesses being spread

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around the social circles. When you run

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into people, they'll ask you, Hey, you

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know, so what do you do yourself? That's

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not the invitation to say, Well, I'm

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looking to start trading commodities.

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They're gonna like, What? I'm trading

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the foreign exchange market right away,

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they're gonna be like, what is that? And

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that's what you want them to ask you.

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And then when you start talking about,

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they're like, Oh, yeah, that's like the

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stock market. You're not interested, or

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they're interested, and you want to know

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how much money you made, and you can't

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tell them that you've made any money.

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You're just now starting. So really,

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you're a startup and they're not really

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interested in the conversation anymore.

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00:11:43,530 --> 00:11:45,000
So you're not going to get that feedback

265
00:11:45,000 --> 00:11:46,470
again, what you're looking for, so don't

266
00:11:46,470 --> 00:11:48,780
seek the approval from others. You have

267
00:11:48,780 --> 00:11:51,360
to pursue this on your own steam your

268
00:11:51,360 --> 00:11:54,360
own energy. And if you had any

269
00:11:54,600 --> 00:11:57,810
dependency on an outside source, be at

270
00:11:57,810 --> 00:11:59,670
any one of these four groups, family,

271
00:11:59,670 --> 00:12:02,880
friends. coworkers are strangers to give

272
00:12:02,880 --> 00:12:07,530
you that, nudge, that little bit of a

273
00:12:09,300 --> 00:12:10,710
pat on the back, that you're doing the

274
00:12:10,710 --> 00:12:13,260
right thing for yourself, you're going

275
00:12:13,260 --> 00:12:15,780
to struggle, because in trading, you got

276
00:12:15,780 --> 00:12:17,220
to be there to make the decisions

277
00:12:17,220 --> 00:12:19,380
whether anyone agrees with you or not.

278
00:12:20,040 --> 00:12:22,260
And when you make money, you reap the

279
00:12:22,260 --> 00:12:24,330
rewards of that. But when you lose it,

280
00:12:25,140 --> 00:12:27,600
and you will, you have to be able to

281
00:12:27,600 --> 00:12:30,720
endure that and not feel the compulsion

282
00:12:30,720 --> 00:12:32,970
to go to someone and say, hey, look, you

283
00:12:32,970 --> 00:12:34,320
know, I just lost a lot of money. It's

284
00:12:34,320 --> 00:12:36,450
the same thing. Don't turn to anyone

285
00:12:36,450 --> 00:12:38,610
else and say, I made a mistake today

286
00:12:38,610 --> 00:12:40,740
help me feel better. You have to endure

287
00:12:40,740 --> 00:12:43,080
that. And if you're going to start your

288
00:12:43,080 --> 00:12:45,540
journey with this mindset of seeking

289
00:12:45,540 --> 00:12:47,730
approval, or support outside of

290
00:12:47,730 --> 00:12:50,700
yourself, this is gonna be a very hard

291
00:12:50,700 --> 00:12:52,500
journey for you. So you have to prepare

292
00:12:52,500 --> 00:12:55,110
yourself to seek your own approval

293
00:12:55,440 --> 00:12:56,970
by your own study and your own

294
00:12:56,970 --> 00:12:59,400
development. reward yourself when you do

295
00:12:59,400 --> 00:13:01,470
it. Right. And when Do it wrong, give

296
00:13:01,470 --> 00:13:03,330
yourself permission to be wrong and

297
00:13:03,330 --> 00:13:10,410
allow yourself to grow. Next, learn risk

298
00:13:10,440 --> 00:13:13,230
management well, and make that your

299
00:13:13,230 --> 00:13:15,960
initial, very first thing that you want

300
00:13:15,960 --> 00:13:18,540
to master. So you're controlling your

301
00:13:18,540 --> 00:13:20,580
impulses to stop telling everybody your

302
00:13:20,580 --> 00:13:22,560
business, okay? It's your business, it's

303
00:13:22,560 --> 00:13:24,720
not their business, stop giving your

304
00:13:24,720 --> 00:13:27,600
business to someone else. Next in line,

305
00:13:27,690 --> 00:13:29,910
it's the risk. You have to understand

306
00:13:29,910 --> 00:13:31,830
what you're getting involved in. If

307
00:13:31,830 --> 00:13:33,210
you're gonna be trading with live funds,

308
00:13:33,480 --> 00:13:35,940
you are losing money. That's a 100%

309
00:13:35,940 --> 00:13:38,670
guarantee. You are losing money. There

310
00:13:38,670 --> 00:13:42,060
is never ever going to be a trader that

311
00:13:42,060 --> 00:13:45,570
starts and never has a loss. My very

312
00:13:45,570 --> 00:13:47,880
first trade was a loss. I lost 50% of my

313
00:13:47,880 --> 00:13:52,380
account overnight. And orange juice

314
00:13:52,470 --> 00:13:55,560
option. I had no idea what I was doing.

315
00:13:55,860 --> 00:13:58,950
I was baptized, thrown into water and

316
00:13:58,950 --> 00:14:01,440
drowned. gate was just that short and

317
00:14:01,440 --> 00:14:03,960
sweet. And I closed the account asked

318
00:14:03,960 --> 00:14:06,390
for the remainder of my account. And

319
00:14:06,570 --> 00:14:08,700
that was the end of my Fox investments.

320
00:14:10,590 --> 00:14:12,390
Career that was the brokerage firm I

321
00:14:12,390 --> 00:14:16,260
used at the time. And I had to go and

322
00:14:16,260 --> 00:14:18,870
discover how to actually look at charts

323
00:14:18,870 --> 00:14:20,340
and learn a little bit more about the

324
00:14:20,340 --> 00:14:22,140
risks. So I didn't understand risks.

325
00:14:22,170 --> 00:14:24,720
When I got into trading. I thought that

326
00:14:25,440 --> 00:14:27,030
it should work right away because I saw

327
00:14:27,030 --> 00:14:29,130
the book. The book said it does this. So

328
00:14:29,130 --> 00:14:30,750
therefore, when I looked at the chart,

329
00:14:31,260 --> 00:14:32,460
aren't you should have performed the

330
00:14:32,460 --> 00:14:34,260
same way. Because that's what this guy

331
00:14:34,260 --> 00:14:35,790
said in the book. You know, this guy

332
00:14:35,790 --> 00:14:41,310
told me in at least three pages that the

333
00:14:41,340 --> 00:14:43,050
market when it does this wiggle and

334
00:14:43,050 --> 00:14:45,690
waggle, then I should expect it to move

335
00:14:46,410 --> 00:14:49,800
this particular way. And where does he

336
00:14:49,800 --> 00:14:53,490
get off? telling me this? And then it

337
00:14:53,490 --> 00:14:56,610
not being true. You see where the

338
00:14:56,610 --> 00:14:59,250
disconnection is? That was how I looked

339
00:14:59,250 --> 00:15:01,170
at it. Because I didn't want to take the

340
00:15:01,170 --> 00:15:05,820
responsibility of the risks. And I

341
00:15:05,820 --> 00:15:07,770
figured, well, I'm an option. What's the

342
00:15:07,770 --> 00:15:11,040
worst that could happen? All of my money

343
00:15:11,040 --> 00:15:12,780
could have been gone. That's the worst.

344
00:15:13,230 --> 00:15:16,230
And in one day overnight while I was

345
00:15:16,230 --> 00:15:17,850
sleeping, woke up expecting to see I'm

346
00:15:17,850 --> 00:15:18,780
going to be in I'm gonna be in the

347
00:15:18,780 --> 00:15:22,320
profits. Yeah, I wasn't expecting that

348
00:15:22,470 --> 00:15:26,100
down. 50% Welcome to trading Michael.

349
00:15:26,490 --> 00:15:29,130
And it was a shock. And I just

350
00:15:29,130 --> 00:15:31,470
completely collapsed, said give me my

351
00:15:31,470 --> 00:15:33,750
money. I'm worn out. And that money

352
00:15:33,750 --> 00:15:35,610
couldn't get back to me fast enough. And

353
00:15:35,610 --> 00:15:38,340
back then they sent it in a cheque and

354
00:15:38,340 --> 00:15:39,900
he had to wait for the cheque to come in

355
00:15:39,900 --> 00:15:43,110
the mail. It was just, it was awful. So

356
00:15:43,290 --> 00:15:44,880
the first thing you want to be focusing

357
00:15:44,880 --> 00:15:47,700
on is managing risk and understanding

358
00:15:47,700 --> 00:15:50,610
the underlying risks that's available to

359
00:15:50,610 --> 00:15:55,410
you if you trade. You want to appreciate

360
00:15:55,620 --> 00:15:58,890
the percent over the dollar gain or loss

361
00:15:59,490 --> 00:16:02,250
when I first started, I was interested

362
00:16:02,250 --> 00:16:04,590
in making a specific dollar amount. I

363
00:16:04,590 --> 00:16:06,390
didn't understand compound interest, I

364
00:16:06,390 --> 00:16:09,450
didn't understand the Kelly criterion,

365
00:16:10,200 --> 00:16:12,930
optimal F, none of the advanced money

366
00:16:12,930 --> 00:16:14,850
management theories that I adhere to

367
00:16:14,850 --> 00:16:18,900
now. And I just looked for dollars, you

368
00:16:18,900 --> 00:16:21,300
know, if I can make 500 bucks on this

369
00:16:21,300 --> 00:16:23,790
move, that's what I want to make. And my

370
00:16:23,790 --> 00:16:26,250
stop loss was what was the maximum I

371
00:16:26,250 --> 00:16:28,980
could take? And that's exactly what I

372
00:16:28,980 --> 00:16:30,960
was doing. Because I was afraid I was

373
00:16:30,960 --> 00:16:33,180
gonna get stopped out. So I had this

374
00:16:33,360 --> 00:16:35,940
unrealistic stop loss that was just

375
00:16:35,970 --> 00:16:39,510
unbelievably wide. Or I didn't have one.

376
00:16:39,960 --> 00:16:41,940
I was using a mental stop, which will

377
00:16:41,940 --> 00:16:43,260
drive you mental if you're driving in a

378
00:16:43,260 --> 00:16:45,360
truck 13 hours a day getting out.

379
00:16:45,960 --> 00:16:50,310
Loading cans, soda, and junk food and

380
00:16:50,310 --> 00:16:51,600
candy machines and going around and

381
00:16:51,600 --> 00:16:53,640
fixing machines that aren't right. And

382
00:16:53,640 --> 00:16:54,930
you're constantly wondering what the

383
00:16:54,930 --> 00:16:56,100
markets doing and you don't have a

384
00:16:56,100 --> 00:16:56,670
stoploss

385
00:16:58,140 --> 00:17:00,150
Yeah, it's already bad enough that You

386
00:17:00,150 --> 00:17:01,530
got to time the market and pick the

387
00:17:01,530 --> 00:17:03,480
right direction. But now you got to add

388
00:17:03,480 --> 00:17:06,300
to it that you're doing it blind, with

389
00:17:06,300 --> 00:17:09,030
no stop loss and anything can happen.

390
00:17:09,570 --> 00:17:11,160
And that's what I was doing. I mean,

391
00:17:11,160 --> 00:17:13,500
literally, I was like a cowboy out there

392
00:17:13,530 --> 00:17:17,790
riding bulls with no experience

393
00:17:17,790 --> 00:17:20,310
whatsoever. And if I was thrown off, it

394
00:17:20,310 --> 00:17:21,780
was always going to be the worst case,

395
00:17:22,230 --> 00:17:24,030
it was really going to be bad. Every

396
00:17:24,030 --> 00:17:25,260
single time I took a loss, it was going

397
00:17:25,260 --> 00:17:27,510
to be bad. Either I got crushed, and I

398
00:17:27,510 --> 00:17:28,560
got out because I couldn't handle the

399
00:17:28,560 --> 00:17:31,050
pain anymore. Or if I had to stop, it

400
00:17:31,050 --> 00:17:32,760
was running against me, taking me out

401
00:17:32,760 --> 00:17:34,800
and it was going to be the maximum risk

402
00:17:34,950 --> 00:17:38,550
that I could absorb in that trade. So

403
00:17:38,550 --> 00:17:40,860
you want to appreciate the percentage of

404
00:17:40,890 --> 00:17:43,530
what you are taking on as risk also with

405
00:17:43,530 --> 00:17:46,140
your gains. So don't be impressed with a

406
00:17:46,140 --> 00:17:49,200
specific dollar amount. Or don't look at

407
00:17:49,200 --> 00:17:51,030
a specific dollar amount as well. It

408
00:17:51,030 --> 00:17:52,590
doesn't hurt that bad because it's only

409
00:17:52,770 --> 00:17:56,580
300 bucks. But if your account is 3000

410
00:17:56,580 --> 00:18:00,750
that's 10%. That's correct. trouble. You

411
00:18:00,750 --> 00:18:01,920
don't want to do that because you can't

412
00:18:01,920 --> 00:18:03,210
do too many of those and not see your

413
00:18:03,210 --> 00:18:06,300
account be lower to a level where it's a

414
00:18:06,300 --> 00:18:08,280
little bit difficult to come back from

415
00:18:08,280 --> 00:18:10,890
that as a new trader. So appreciate the

416
00:18:10,890 --> 00:18:13,950
percentage over dollar gain or loss.

417
00:18:16,650 --> 00:18:19,680
Learn to limit trade frequency. I felt

418
00:18:19,680 --> 00:18:22,260
that since the markets were opening up

419
00:18:22,290 --> 00:18:25,620
tomorrow, I had to be in there. So I was

420
00:18:25,620 --> 00:18:29,220
over trading. And if I got a profit, and

421
00:18:29,220 --> 00:18:32,190
I was able to get out in intraday I

422
00:18:32,190 --> 00:18:35,100
would like Well, that was fun. I want to

423
00:18:35,100 --> 00:18:37,200
go on there and do it again. When there

424
00:18:37,200 --> 00:18:38,730
was 20 minutes left in the trading

425
00:18:38,730 --> 00:18:40,290
session, because I was trading

426
00:18:40,290 --> 00:18:43,470
commodities. They had pit hours where

427
00:18:43,500 --> 00:18:44,970
they would open at this time and close

428
00:18:44,970 --> 00:18:47,400
it this time. And I figured well, it's

429
00:18:47,400 --> 00:18:49,890
still open. Anything could happen. And

430
00:18:49,890 --> 00:18:51,660
if I'm right, I mean I can make some

431
00:18:51,660 --> 00:18:54,060
more money before it closes. I had no

432
00:18:54,060 --> 00:18:56,610
idea what I was doing folks, zero idea.

433
00:18:57,030 --> 00:18:59,100
I was looking at these if these charts

434
00:18:59,100 --> 00:19:04,740
and They were speaking to me. And it was

435
00:19:05,220 --> 00:19:07,350
all the wrong things. He was telling me

436
00:19:08,070 --> 00:19:10,590
gamble. And that's what I was doing. I

437
00:19:10,590 --> 00:19:12,360
had money in the account, there was our

438
00:19:12,360 --> 00:19:14,160
still left in the trading or 20 minutes

439
00:19:14,160 --> 00:19:15,330
in this case as an example,

440
00:19:15,330 --> 00:19:17,700
hypothetically, and I was going in here,

441
00:19:18,150 --> 00:19:19,740
and if I could get more money before the

442
00:19:19,740 --> 00:19:21,480
close, so I was doing and that's what

443
00:19:21,480 --> 00:19:23,910
hurt me. Because I didn't understand the

444
00:19:23,910 --> 00:19:26,640
risk. When you're getting close to the

445
00:19:26,640 --> 00:19:28,800
end of the session, the end of the

446
00:19:28,800 --> 00:19:31,380
trading day or the end of the week, you

447
00:19:31,380 --> 00:19:33,810
have to know that there's a large degree

448
00:19:33,840 --> 00:19:37,680
of risk in the fact that you're probably

449
00:19:37,680 --> 00:19:40,680
not going to see any really major move

450
00:19:40,680 --> 00:19:41,670
at that point because it's already

451
00:19:41,670 --> 00:19:44,100
behind you. And you want to limit the

452
00:19:44,100 --> 00:19:45,810
number of trades you take, because the

453
00:19:45,810 --> 00:19:47,610
more frequency you have in your trades,

454
00:19:48,150 --> 00:19:49,620
the more likely you're going to lose.

455
00:19:49,950 --> 00:19:52,140
And if you have a lot of trades, you're

456
00:19:52,140 --> 00:19:53,970
going to have a lot more losses and

457
00:19:53,970 --> 00:19:57,750
losses mount up and you don't want that

458
00:19:57,750 --> 00:19:59,670
to occur, especially as a developing

459
00:19:59,730 --> 00:20:00,870
trader. You really don't want that to

460
00:20:01,320 --> 00:20:04,470
occur at any time really. But you have

461
00:20:04,470 --> 00:20:06,630
to learn to limit your trade frequency.

462
00:20:09,030 --> 00:20:11,790
Avoid short term trading, turning it

463
00:20:11,790 --> 00:20:15,420
into long term trading. When I first

464
00:20:15,420 --> 00:20:18,840
started, I had no idea what style of

465
00:20:18,840 --> 00:20:20,850
trading that I was going to really focus

466
00:20:20,850 --> 00:20:24,660
on on I was being told I wanted to be a

467
00:20:24,660 --> 00:20:26,520
position trader, you get on the daily

468
00:20:26,520 --> 00:20:28,410
chart, catch a 123, hold it for three,

469
00:20:28,410 --> 00:20:31,530
four or five, six months. And I couldn't

470
00:20:31,530 --> 00:20:34,470
do it. I just couldn't do it. And when I

471
00:20:34,470 --> 00:20:35,970
started trading with short term

472
00:20:36,300 --> 00:20:39,270
strategies and such, when I was in

473
00:20:39,270 --> 00:20:41,100
winners that started to move a lot for

474
00:20:41,100 --> 00:20:45,330
me. If you trade of any length of time,

475
00:20:45,600 --> 00:20:46,860
eventually you're going to get lucky

476
00:20:46,860 --> 00:20:48,720
with something. And when it starts

477
00:20:48,720 --> 00:20:51,240
moving in your favor really explosively.

478
00:20:52,230 --> 00:20:54,570
Something happens inside of our brain.

479
00:20:54,690 --> 00:20:56,850
It's like okay, this was only going to

480
00:20:56,850 --> 00:20:59,280
be a trade for a couple hours, and maybe

481
00:20:59,280 --> 00:21:03,630
make You know, five or six handles in

482
00:21:03,630 --> 00:21:08,370
the SMP or 100 pips in the Forex, okay,

483
00:21:08,400 --> 00:21:11,640
or a $2 and 50 cent move in the stock

484
00:21:11,820 --> 00:21:13,860
that you're trading. But now because

485
00:21:13,860 --> 00:21:16,260
it's exploded, you're like, well, this

486
00:21:16,260 --> 00:21:20,670
is now a six month trade. And you end up

487
00:21:20,670 --> 00:21:23,730
holding on to a winner turn loser. And

488
00:21:23,730 --> 00:21:26,640
you changed your strategy from it was

489
00:21:26,640 --> 00:21:28,560
gonna be a short term trade to now a

490
00:21:28,560 --> 00:21:30,900
long term trade in that short term gain

491
00:21:30,900 --> 00:21:35,310
turns into a now an immediate loss. It's

492
00:21:35,310 --> 00:21:38,490
debilitating. stick to what you were

493
00:21:38,490 --> 00:21:40,320
trying to do. When it gets to your

494
00:21:40,320 --> 00:21:44,370
objectives. scale out and get your

495
00:21:44,370 --> 00:21:46,650
target and move to the sidelines. Don't

496
00:21:46,830 --> 00:21:49,440
change strategies while you're in a

497
00:21:49,440 --> 00:21:51,720
trade that never ever, ever is a good

498
00:21:51,720 --> 00:21:52,020
thing.

499
00:21:54,270 --> 00:21:56,640
And be content with enough. If you had a

500
00:21:56,640 --> 00:21:59,730
profitable week and it's Thursday, close

501
00:21:59,730 --> 00:22:01,320
up shop Who says you have to trade on

502
00:22:01,320 --> 00:22:04,230
Friday? What happens if you have a good

503
00:22:04,650 --> 00:22:07,020
Monday and Tuesday, and it's way beyond

504
00:22:07,020 --> 00:22:10,950
your normal return you return? Why would

505
00:22:10,950 --> 00:22:13,470
you want to press your luck? The chances

506
00:22:13,470 --> 00:22:14,430
are, you're going to give some of that

507
00:22:14,430 --> 00:22:17,340
back, if not all of it. And when I was

508
00:22:17,340 --> 00:22:19,560
younger, I did that a lot in my first

509
00:22:19,560 --> 00:22:22,710
six years. But I didn't care. It didn't

510
00:22:22,710 --> 00:22:24,390
bother me, and didn't have any

511
00:22:24,390 --> 00:22:27,000
appreciation for the risk. Because I

512
00:22:27,000 --> 00:22:30,090
figured, well, I'm going to be right

513
00:22:30,090 --> 00:22:32,340
eventually, in every trade, I was

514
00:22:32,340 --> 00:22:34,290
swinging for the fences. And I wanted to

515
00:22:34,290 --> 00:22:36,450
make lots and lots of money. But the

516
00:22:36,450 --> 00:22:38,160
problem with that is, because I was

517
00:22:38,160 --> 00:22:39,570
taking on so much risk. When I had a

518
00:22:39,570 --> 00:22:41,250
little bit of profit, I would close

519
00:22:41,250 --> 00:22:42,420
because I just couldn't handle it

520
00:22:42,420 --> 00:22:44,730
anymore. It was wearing me down like,

521
00:22:45,240 --> 00:22:46,950
I'm expecting to make $1,000 in this

522
00:22:46,950 --> 00:22:50,580
trade. Alright, I'm up to 50 I'm just I

523
00:22:50,580 --> 00:22:53,520
just gotta get out, I'm fatigued. That's

524
00:22:53,520 --> 00:22:54,690
what the market will do to you. If you

525
00:22:54,690 --> 00:22:58,470
have no appreciation for the risk. Don't

526
00:22:59,490 --> 00:23:03,270
undermine You're trading by not tackling

527
00:23:03,360 --> 00:23:06,030
the first lesson in risk management, you

528
00:23:06,030 --> 00:23:08,400
have to understand it, and how you

529
00:23:08,910 --> 00:23:11,820
personally engage with the marketplace

530
00:23:12,000 --> 00:23:18,180
and how you are, I guess, adversely

531
00:23:19,110 --> 00:23:21,480
affected, I guess that's the train of

532
00:23:21,480 --> 00:23:23,040
thought. I'm trying to communicate here

533
00:23:23,040 --> 00:23:25,860
because unless you feel the pain of

534
00:23:25,860 --> 00:23:27,750
being in a market that's not moving in

535
00:23:27,750 --> 00:23:30,180
your favor, or screaming against you,

536
00:23:31,110 --> 00:23:32,850
you're not going to fully appreciate

537
00:23:33,840 --> 00:23:36,900
what I'm saying here. And as a younger

538
00:23:36,900 --> 00:23:41,370
man, I saw lots of equity swings that

539
00:23:41,370 --> 00:23:43,350
would make anyone else nauseous. And I

540
00:23:43,350 --> 00:23:45,390
just, I didn't care. I had no

541
00:23:45,390 --> 00:23:47,160
appreciation. I had no respect for the

542
00:23:47,160 --> 00:23:50,130
marketplace because I figured I'm going

543
00:23:50,130 --> 00:23:52,980
to get it right eventually. And I went

544
00:23:52,980 --> 00:23:55,620
through many accounts, not one or two,

545
00:23:55,650 --> 00:23:59,010
many like 14 individual trading

546
00:23:59,010 --> 00:24:02,220
accounts. I would save up money, save up

547
00:24:02,220 --> 00:24:04,170
money. My first account was with a

548
00:24:04,170 --> 00:24:06,960
credit card. And then the second account

549
00:24:06,960 --> 00:24:09,720
was with another credit card 20 $600 on

550
00:24:09,720 --> 00:24:12,570
a nation's bank, credit card visa. And

551
00:24:12,570 --> 00:24:14,610
you pay a lot of a lot of percentage in

552
00:24:14,610 --> 00:24:16,710
terms of interest when you borrow cash.

553
00:24:17,490 --> 00:24:19,950
And I just was doing everything wrong,

554
00:24:20,130 --> 00:24:23,430
everything wrong, but I was not going to

555
00:24:23,430 --> 00:24:28,590
be deterred. Moving on, you want to

556
00:24:28,590 --> 00:24:31,140
prevent life imbalances, and this is one

557
00:24:31,140 --> 00:24:32,820
of the things that I failed miserably

558
00:24:32,820 --> 00:24:37,290
at. Have a pretty large family of five

559
00:24:37,290 --> 00:24:39,420
children. One that was brought into my

560
00:24:39,420 --> 00:24:40,950
marriage, I brought one into my

561
00:24:40,950 --> 00:24:42,930
marriage, and I had three children with

562
00:24:42,930 --> 00:24:47,310
three sons with my present wife. I

563
00:24:47,700 --> 00:24:49,350
didn't spend a lot of time with my kids.

564
00:24:49,560 --> 00:24:51,210
When I was younger, I was consumed with

565
00:24:51,210 --> 00:24:52,680
the marketplace. I was consumed with

566
00:24:52,680 --> 00:24:54,600
making money. I was consumed with

567
00:24:54,660 --> 00:24:57,600
building businesses, consumed with real

568
00:24:57,600 --> 00:25:02,370
estate, buying franchises. Just always

569
00:25:02,370 --> 00:25:04,350
Money, money, money, money, money, and

570
00:25:04,380 --> 00:25:07,230
most of my children's sporting events, I

571
00:25:07,230 --> 00:25:15,930
missed them. And it was very hard to see

572
00:25:15,930 --> 00:25:17,730
how much time I missed when I look back.

573
00:25:17,880 --> 00:25:20,340
And now look at my children as adults.

574
00:25:20,730 --> 00:25:24,360
Not all of them I have a 15 year old and

575
00:25:24,360 --> 00:25:27,240
a shouldn't be 13 year old. It's still

576
00:25:27,240 --> 00:25:29,820
living with me, but my older children, I

577
00:25:29,820 --> 00:25:32,880
don't have a lot of memories. Because I

578
00:25:32,880 --> 00:25:36,540
allowed the market to steal that. And I

579
00:25:36,540 --> 00:25:38,850
chased it more, the faster it ran away

580
00:25:38,850 --> 00:25:40,950
from me, the more I would pursue it,

581
00:25:41,280 --> 00:25:43,830
because I was telling myself that I'm

582
00:25:43,830 --> 00:25:46,530
doing all of this for them. And that

583
00:25:46,530 --> 00:25:51,360
wasn't true. I was doing it for me. me

584
00:25:52,170 --> 00:25:55,140
because I hated my job. I hated where I

585
00:25:55,140 --> 00:25:58,830
was in life and I wanted more and I

586
00:25:58,950 --> 00:26:02,130
wasn't sad. Despite where I was, and

587
00:26:02,130 --> 00:26:05,790
every adversity brought on a new sense

588
00:26:05,820 --> 00:26:09,360
of urgency that I gotta get this changed

589
00:26:09,360 --> 00:26:13,500
right now. And days would pass in turn

590
00:26:13,500 --> 00:26:17,970
two weeks, two months, two years. And I

591
00:26:17,970 --> 00:26:21,570
missed so much time with my wife. I

592
00:26:21,570 --> 00:26:23,280
missed so much time with my children.

593
00:26:24,000 --> 00:26:26,010
And the greatest lesson I can tell you

594
00:26:26,010 --> 00:26:27,390
right now, if you're new, especially if

595
00:26:27,390 --> 00:26:29,490
you're a young man or a woman, and

596
00:26:29,490 --> 00:26:31,020
you're getting ready to get into this,

597
00:26:32,250 --> 00:26:36,120
these markets are vampires. They will

598
00:26:36,120 --> 00:26:39,600
suck every drop in the marrow in your

599
00:26:39,600 --> 00:26:43,290
bones if you give it to them. It does

600
00:26:43,290 --> 00:26:45,300
not matter how much money you think you

601
00:26:45,300 --> 00:26:47,520
can make or eventually make, because I'm

602
00:26:47,520 --> 00:26:48,870
gonna tell you something. I've made a

603
00:26:48,870 --> 00:26:53,310
lot of money. Millions of real dollars,

604
00:26:53,550 --> 00:26:54,570
millions.

605
00:26:55,980 --> 00:26:58,470
And I would give it all back. If I could

606
00:26:58,470 --> 00:27:00,810
go back in time and be To spend the time

607
00:27:00,810 --> 00:27:02,940
with my kids and my wife that I missed.

608
00:27:08,849 --> 00:27:12,419
I created a prison cell for myself with

609
00:27:12,419 --> 00:27:14,999
these markets that I willfully put

610
00:27:14,999 --> 00:27:17,999
myself into every single day. And it

611
00:27:17,999 --> 00:27:20,639
wasn't enough to be in the daytime,

612
00:27:21,239 --> 00:27:23,189
worrying that all day long at work Was I

613
00:27:23,189 --> 00:27:26,519
being a good employee No. Many times I

614
00:27:26,519 --> 00:27:29,369
half assed my job, because I had to get

615
00:27:29,369 --> 00:27:31,559
back to the truck where my quote trek

616
00:27:31,559 --> 00:27:33,149
was, which was my little quote machine,

617
00:27:33,959 --> 00:27:35,879
telling me what the soybean market was

618
00:27:35,879 --> 00:27:39,269
doing, or what live cattle was doing, or

619
00:27:39,299 --> 00:27:41,969
what the bond market was doing. I was

620
00:27:41,969 --> 00:27:43,739
more concerned about that. And most of

621
00:27:43,739 --> 00:27:46,559
the time I was losing money. So I wasn't

622
00:27:46,559 --> 00:27:49,919
a good employee at the time. And when I

623
00:27:49,919 --> 00:27:53,279
got home in the evening time, what was I

624
00:27:53,279 --> 00:27:59,009
concerned about? family know I was

625
00:27:59,009 --> 00:28:03,179
concerned about The market. I was

626
00:28:03,179 --> 00:28:07,379
wanting to know, what can I do to make

627
00:28:07,379 --> 00:28:10,739
more money. And my family will be there

628
00:28:10,739 --> 00:28:16,919
when I'm done. And that's a lie. It's a

629
00:28:16,919 --> 00:28:20,609
lie. You're going to give up your life

630
00:28:21,419 --> 00:28:24,599
if you don't pay attention to it. So how

631
00:28:24,599 --> 00:28:26,879
do you avoid it? You have to manage your

632
00:28:26,879 --> 00:28:30,059
family time and schedule it. This is the

633
00:28:30,059 --> 00:28:32,489
time for your family. No markets, no

634
00:28:32,489 --> 00:28:36,029
charts, no TV time looking at reports

635
00:28:36,029 --> 00:28:37,409
and news events that would drive the

636
00:28:37,409 --> 00:28:40,289
marketplace. No newspapers, no articles

637
00:28:40,289 --> 00:28:43,349
and magazines, no internet, no Twitter,

638
00:28:43,649 --> 00:28:46,439
none of that stuff. You manage your

639
00:28:46,469 --> 00:28:49,049
family time and you schedule it. And

640
00:28:49,049 --> 00:28:52,319
then once you have gave your family your

641
00:28:52,319 --> 00:28:57,539
time, an ample amount of it. Then you

642
00:28:57,539 --> 00:28:59,009
have to return back to the marketplace.

643
00:29:01,019 --> 00:29:05,099
Do you want to keep a study and trade

644
00:29:05,099 --> 00:29:09,689
schedule? That means, what time of day?

645
00:29:09,719 --> 00:29:11,069
Are you gonna be looking at the market

646
00:29:11,399 --> 00:29:14,219
trade. And there are specific times of

647
00:29:14,219 --> 00:29:17,339
the day, days of the week, months of the

648
00:29:17,339 --> 00:29:19,079
year that you want to be focusing on

649
00:29:19,079 --> 00:29:20,489
trading. And there are other times when

650
00:29:20,489 --> 00:29:21,809
you don't want to be doing that. And you

651
00:29:21,809 --> 00:29:23,849
want to be focusing on what they are.

652
00:29:24,569 --> 00:29:26,969
And when are you going to study how much

653
00:29:26,969 --> 00:29:28,439
time each day are you going to unlock

654
00:29:28,499 --> 00:29:31,469
for studying? Because if you don't have

655
00:29:31,469 --> 00:29:33,449
that, you're just going to go in there

656
00:29:33,449 --> 00:29:35,699
and say, well, it's basically like

657
00:29:35,699 --> 00:29:38,039
Netflix. I'm going to sit down, binge

658
00:29:38,039 --> 00:29:40,319
watch and see what happens. Well, if you

659
00:29:40,319 --> 00:29:41,999
look at a chart long enough, it's going

660
00:29:41,999 --> 00:29:43,919
to start telling you, you know, if you

661
00:29:43,919 --> 00:29:45,779
put some money into me, I might give you

662
00:29:45,779 --> 00:29:49,829
some more back and you're going to

663
00:29:49,829 --> 00:29:53,729
gamble. How long will a gambler sit in

664
00:29:53,729 --> 00:29:55,529
front of a slot machine with a pocketful

665
00:29:55,529 --> 00:29:57,809
of quarters before they put all the

666
00:29:57,809 --> 00:30:00,809
quarters in there. As fast as they get

667
00:30:00,809 --> 00:30:03,239
the next one. And that's what these

668
00:30:03,239 --> 00:30:06,179
charts are their slot machines. And

669
00:30:06,179 --> 00:30:07,949
you're great you're being groomed as a

670
00:30:07,949 --> 00:30:09,779
gambler and all the books and things

671
00:30:09,779 --> 00:30:11,729
that you learn from other people. And

672
00:30:11,729 --> 00:30:13,889
it's just an enticement to constantly do

673
00:30:13,889 --> 00:30:17,549
that feed that beast. So you have to

674
00:30:17,549 --> 00:30:19,829
keep a study and trade schedule, and

675
00:30:19,829 --> 00:30:24,479
only operate on that basis. off days are

676
00:30:24,479 --> 00:30:28,229
off days. On the weekends, I spent more

677
00:30:28,229 --> 00:30:30,359
time worrying about the marketplace when

678
00:30:30,359 --> 00:30:31,499
I should have been spending it with my

679
00:30:31,499 --> 00:30:34,589
family. So you have to absolutely hold

680
00:30:34,589 --> 00:30:37,679
yourself hard and fast to when you don't

681
00:30:37,679 --> 00:30:40,049
have any market activity and it's not

682
00:30:40,049 --> 00:30:42,659
trading or it's a holiday, it may impact

683
00:30:42,929 --> 00:30:45,959
with lower volume. That's an off day and

684
00:30:45,959 --> 00:30:47,489
you don't look at the charts you don't

685
00:30:47,489 --> 00:30:50,579
concern yourself with looking at what

686
00:30:50,579 --> 00:30:52,319
could have happened. None of that stuff.

687
00:30:52,859 --> 00:30:54,929
You pour it into your family and that

688
00:30:54,929 --> 00:30:56,609
will prevent you from having a life

689
00:30:56,609 --> 00:30:59,879
imbalance and finally want to be patient

690
00:30:59,879 --> 00:31:05,939
with Development. I was overzealous and

691
00:31:05,939 --> 00:31:08,759
unrealistic about what I wanted to do

692
00:31:08,759 --> 00:31:10,529
once I started making money. That's what

693
00:31:10,739 --> 00:31:12,929
caught fire in me. And I was like, I

694
00:31:12,929 --> 00:31:15,179
want more, I want more, I want more. And

695
00:31:15,179 --> 00:31:17,129
when I saw I could take a very small

696
00:31:17,129 --> 00:31:22,829
Count 1200 1500 dollars to $15,000 in

697
00:31:22,829 --> 00:31:26,099
less than six weeks, I was like, This is

698
00:31:26,159 --> 00:31:27,899
exactly what I want to do. Like I want

699
00:31:27,899 --> 00:31:29,579
to do this, I want to do anything else.

700
00:31:30,509 --> 00:31:34,259
And you don't have to rush, especially

701
00:31:34,259 --> 00:31:38,159
if you're younger than 30. Like if

702
00:31:38,159 --> 00:31:41,159
you're in your 20s you have so much time

703
00:31:42,209 --> 00:31:43,739
to get yourself where you want to be.

704
00:31:44,459 --> 00:31:47,789
But you want to take the time to develop

705
00:31:47,789 --> 00:31:49,919
yourself and learn a lot about yourself

706
00:31:49,919 --> 00:31:51,899
because if you're not aware of what

707
00:31:51,899 --> 00:31:53,459
you're going to likely do to yourself to

708
00:31:53,459 --> 00:31:57,269
throw yourself off the rails. It doesn't

709
00:31:57,269 --> 00:31:59,729
matter what you're going to learn or

710
00:31:59,729 --> 00:32:00,899
what you're Gonna do or how much money

711
00:32:00,899 --> 00:32:01,289
you start

712
00:32:01,290 --> 00:32:03,090
with, or how much time you put into it,

713
00:32:03,810 --> 00:32:06,270
it just means that you're going to rush

714
00:32:06,270 --> 00:32:09,060
to destruction. So you have to give

715
00:32:09,060 --> 00:32:11,670
yourself a realistic timeline. When I

716
00:32:11,670 --> 00:32:13,680
first started, my plan was I wanted to

717
00:32:13,680 --> 00:32:15,750
retire at 40. I want to make $1,000 a

718
00:32:15,750 --> 00:32:18,150
month and retire at 40. That was my

719
00:32:18,150 --> 00:32:21,600
plan. And I quickly learned that that

720
00:32:21,600 --> 00:32:25,170
was a really low objective. What was

721
00:32:25,170 --> 00:32:28,890
possible was a lot more than that. But I

722
00:32:28,890 --> 00:32:31,080
wasn't prepared to see that type of

723
00:32:31,080 --> 00:32:33,330
equity increase. When I started making a

724
00:32:33,330 --> 00:32:39,090
lot of money. It's like a drug it makes

725
00:32:39,090 --> 00:32:40,800
you want to do more and more and you

726
00:32:40,950 --> 00:32:43,320
throw that in with he didn't care about

727
00:32:43,320 --> 00:32:46,590
risk because I didn't it hurt me and I

728
00:32:46,590 --> 00:32:49,140
would see these huge gains and then huge

729
00:32:49,140 --> 00:32:52,170
draw downs. So while I'd have really big

730
00:32:52,170 --> 00:32:54,330
run up, and I'd have a roller coaster

731
00:32:54,330 --> 00:32:58,020
drop, and it would just put me back in

732
00:32:58,020 --> 00:33:00,690
that I gotta go back in Spend more time

733
00:33:00,690 --> 00:33:03,120
on the charts and who was suffering my

734
00:33:03,120 --> 00:33:05,310
family. My children didn't get to see

735
00:33:05,310 --> 00:33:07,050
their family or their father that much.

736
00:33:07,470 --> 00:33:10,380
My wife didn't get to see me as much as

737
00:33:10,380 --> 00:33:13,530
her husband. And I missed out on a lot.

738
00:33:14,520 --> 00:33:19,080
And seeing a couple photographs is not

739
00:33:19,080 --> 00:33:20,760
the same as being there to cheer your

740
00:33:20,760 --> 00:33:22,680
kid on. When he's up here and he hits

741
00:33:22,680 --> 00:33:27,420
his first home run. I missed that. When

742
00:33:27,420 --> 00:33:30,150
his basketball team wins, and he made

743
00:33:30,150 --> 00:33:33,510
that shot, great for the last bell. I

744
00:33:33,510 --> 00:33:38,760
missed that. But hey, I made money on

745
00:33:38,790 --> 00:33:42,720
lean hogs. It doesn't measure up.

746
00:33:48,510 --> 00:33:50,790
Stop buying retail logic and tools. You

747
00:33:50,790 --> 00:33:53,130
just don't want to be filling your head

748
00:33:53,130 --> 00:33:56,970
up with all of this poor thinking, okay,

749
00:33:56,970 --> 00:33:58,200
because that's exactly what it is.

750
00:33:58,770 --> 00:34:01,110
Everything you learn in retailed books

751
00:34:01,110 --> 00:34:03,240
and courses is diametrically opposed to

752
00:34:03,240 --> 00:34:06,660
how the actual markets work. So stop

753
00:34:06,660 --> 00:34:08,730
wasting money on books. And I've

754
00:34:08,730 --> 00:34:11,550
purchased either by electronic format or

755
00:34:12,000 --> 00:34:16,110
actual hardcopy books. I have over 2000

756
00:34:16,110 --> 00:34:18,570
of them, and I won't buy another book

757
00:34:18,570 --> 00:34:20,280
ever again. And I wish I would have

758
00:34:20,280 --> 00:34:22,950
stopped. The second year that I started

759
00:34:22,950 --> 00:34:24,390
buying them I had in my mind, I was

760
00:34:24,390 --> 00:34:27,120
gonna buy as many books as I could,

761
00:34:27,120 --> 00:34:28,410
because somebody out there, it's gonna

762
00:34:28,410 --> 00:34:30,120
have the secret. And I'm gonna tell you

763
00:34:30,120 --> 00:34:32,190
after reading over 2000 books, none of

764
00:34:32,190 --> 00:34:34,170
them did. And there are some real

765
00:34:34,170 --> 00:34:36,030
classics in there. And the ones that I

766
00:34:36,030 --> 00:34:38,760
do, like I've mentioned before, and I

767
00:34:38,760 --> 00:34:40,530
know some of you are new and you want to

768
00:34:40,530 --> 00:34:43,950
know what they are. For money

769
00:34:43,950 --> 00:34:45,660
management, I like everything from Ralph

770
00:34:45,660 --> 00:34:49,110
Vince and Ryan Jones. They do a lot of

771
00:34:49,230 --> 00:34:51,900
optimal F and Kelly criterion. It's a

772
00:34:51,900 --> 00:34:53,100
little bit advanced. I'm not saying that

773
00:34:53,100 --> 00:34:54,390
everyone that first starts trading

774
00:34:54,390 --> 00:34:57,510
should mess with that because it's meant

775
00:34:57,510 --> 00:34:59,910
to run your account up pretty quick and

776
00:35:00,000 --> 00:35:01,140
You're not gonna be prepared for that.

777
00:35:01,290 --> 00:35:03,600
And I wasn't either. That's why I

778
00:35:03,600 --> 00:35:06,120
couldn't make it work right away. So I

779
00:35:06,120 --> 00:35:08,010
did learn a lot about myself and then

780
00:35:08,610 --> 00:35:12,090
tune it for me. How many million dollar

781
00:35:12,090 --> 00:35:14,100
strain commodities last year? It's a

782
00:35:14,100 --> 00:35:16,290
1970s book from Larry Williams. That

783
00:35:16,290 --> 00:35:19,170
book still is relevant today. Not every

784
00:35:19,170 --> 00:35:22,170
little thing in there is but majority of

785
00:35:22,170 --> 00:35:25,140
that book is. That was the real first

786
00:35:25,140 --> 00:35:28,230
inspiration for me to see how smart

787
00:35:28,230 --> 00:35:30,150
money operates in the marketplace. And

788
00:35:30,150 --> 00:35:31,830
then that was my pursuit press my life.

789
00:35:31,860 --> 00:35:35,010
I was going to crack these markets. So

790
00:35:35,670 --> 00:35:38,460
that trading for a living buyouts and

791
00:35:38,460 --> 00:35:41,610
their elder market wizards wanting to

792
00:35:42,000 --> 00:35:47,010
just inspiration and street smarts by

793
00:35:47,070 --> 00:35:50,220
Linda raschke and Larry conners. That's

794
00:35:51,000 --> 00:35:53,790
it. Now if you want to know what to do

795
00:35:53,790 --> 00:35:57,300
the opposite of john Murphy's technical

796
00:35:57,300 --> 00:35:59,100
analysis of financial markets book,

797
00:35:59,100 --> 00:36:02,370
that's the retail Traders Bible. I

798
00:36:02,370 --> 00:36:03,960
always recommend that one simply because

799
00:36:03,960 --> 00:36:06,030
you want to learn how to do the opposite

800
00:36:06,030 --> 00:36:07,380
of everything is being taught that book.

801
00:36:07,920 --> 00:36:09,570
And if you do that, you're going to

802
00:36:09,570 --> 00:36:11,340
quickly see how charts are really,

803
00:36:11,340 --> 00:36:14,820
really fun to watch then, because it's

804
00:36:15,630 --> 00:36:19,560
such a high degree of percentage of

805
00:36:19,560 --> 00:36:22,440
failure failing, that it's more likely

806
00:36:22,440 --> 00:36:24,180
if you just fade those moves, you'll

807
00:36:24,180 --> 00:36:26,370
probably see the chart, work in your

808
00:36:26,370 --> 00:36:31,980
favor. Avoid looking for hot hand gurus.

809
00:36:32,220 --> 00:36:34,620
I did this a lot on America Online. I

810
00:36:34,620 --> 00:36:37,620
chased everybody. If they had a service,

811
00:36:38,100 --> 00:36:39,720
I was trying it out, at least for a

812
00:36:39,780 --> 00:36:41,010
while back then they would do it by the

813
00:36:41,010 --> 00:36:43,920
week. Now everything's by month, and

814
00:36:44,700 --> 00:36:47,040
everything was at the time, a

815
00:36:47,040 --> 00:36:49,800
newsletter, or a phone number that you

816
00:36:49,800 --> 00:36:52,380
had to call and pay a couple dollars a

817
00:36:52,380 --> 00:36:54,030
minute or whatever. And he would tell

818
00:36:54,030 --> 00:36:56,370
you what they were trading, and I never

819
00:36:56,370 --> 00:36:59,100
made money with that stuff. Even Larry

820
00:36:59,100 --> 00:37:00,540
Williams, not to beat disrespectful

821
00:37:00,540 --> 00:37:03,750
towards him. But I, at one time was

822
00:37:04,230 --> 00:37:07,140
paying for his hotline. And you would

823
00:37:07,140 --> 00:37:08,820
just call him up and he would have a

824
00:37:08,820 --> 00:37:12,330
recording. And it was basically what he

825
00:37:12,330 --> 00:37:14,190
was going to do with the bond market and

826
00:37:14,280 --> 00:37:16,620
what the SMP market and I did those

827
00:37:16,620 --> 00:37:19,800
trades, and I lost money. Again, I'm not

828
00:37:19,800 --> 00:37:20,880
saying that he's not a profitable

829
00:37:20,880 --> 00:37:22,830
trader. I'm not saying he's not a good

830
00:37:22,830 --> 00:37:24,540
trader. I'm not saying he's not a good

831
00:37:24,540 --> 00:37:26,760
teacher. I'm just saying, my personal

832
00:37:26,760 --> 00:37:29,100
experience doing that. I lost money on

833
00:37:29,100 --> 00:37:32,280
every single trade. So avoid looking for

834
00:37:32,280 --> 00:37:33,600
hockey and gurus This is the reason why

835
00:37:33,600 --> 00:37:35,580
I don't hold people's hands. I don't say

836
00:37:35,610 --> 00:37:37,530
is that we're going to do buy here, sell

837
00:37:37,530 --> 00:37:40,230
here, stop. Don't do that. Because all

838
00:37:40,230 --> 00:37:42,240
that does is create codependence and you

839
00:37:42,240 --> 00:37:43,500
don't want to be a codependent trader,

840
00:37:43,500 --> 00:37:44,670
you want to be an independent thinking

841
00:37:44,670 --> 00:37:45,090
trader.

842
00:37:47,550 --> 00:37:50,010
become your own signal generator. The

843
00:37:50,010 --> 00:37:52,950
big thing is always as a new trader, you

844
00:37:52,950 --> 00:37:54,870
want to find someone that's good. You

845
00:37:54,870 --> 00:37:56,250
don't want to find a mentor. You want to

846
00:37:56,250 --> 00:37:57,570
find someone that's going to tell you

847
00:37:57,570 --> 00:37:59,160
what they're doing and making money so

848
00:37:59,160 --> 00:38:02,460
you can copy them. And I fell victim to

849
00:38:02,460 --> 00:38:07,200
that, too. I didn't want to trust my own

850
00:38:07,350 --> 00:38:10,620
analysis, I got lazy and thinking, well,

851
00:38:10,710 --> 00:38:11,700
I really just want to make a lot of

852
00:38:11,700 --> 00:38:13,410
money. So if I can find someone really

853
00:38:13,410 --> 00:38:15,810
good, I'll just copy them. And

854
00:38:16,380 --> 00:38:17,610
everything they do, I'm going to take

855
00:38:17,610 --> 00:38:19,470
the trades, since they're successful.

856
00:38:19,920 --> 00:38:21,210
Even if I take a couple of losses here

857
00:38:21,210 --> 00:38:22,890
and there, I'm just going to stick with

858
00:38:22,890 --> 00:38:24,870
it. So what am I really saying there?

859
00:38:25,470 --> 00:38:28,290
I'm saying that I'm going to use them as

860
00:38:28,290 --> 00:38:32,130
my system. And I'm accepting losses. I

861
00:38:32,130 --> 00:38:33,840
know they're probably going to come, but

862
00:38:33,870 --> 00:38:35,340
I'm holding out that they're going to

863
00:38:35,340 --> 00:38:36,930
have more wins and losses. Now, doesn't

864
00:38:36,930 --> 00:38:39,720
that make sense? If you apply it to your

865
00:38:39,720 --> 00:38:42,750
own strategy, but when you as a new

866
00:38:42,750 --> 00:38:44,940
trader start, you don't want to accept

867
00:38:45,000 --> 00:38:48,690
losses. That's not acceptable. But when

868
00:38:48,690 --> 00:38:51,690
you justify your spending, when you're

869
00:38:51,690 --> 00:38:54,660
by other people's signals, it's somehow

870
00:38:54,690 --> 00:38:57,090
brought into the reasoning part of the

871
00:38:57,090 --> 00:38:58,980
decision making, that it's something

872
00:38:58,980 --> 00:39:01,650
that's acceptable. losing trades, it's

873
00:39:01,650 --> 00:39:03,000
acceptable until you take that first

874
00:39:03,000 --> 00:39:04,560
loss, and then you're not subscribing

875
00:39:04,560 --> 00:39:07,140
anymore. You go back to looking for

876
00:39:07,140 --> 00:39:11,910
another hot hand guru. Be willing to

877
00:39:11,910 --> 00:39:15,900
lose and lose a lot early on. It's part

878
00:39:15,900 --> 00:39:18,120
of it. You don't know what you're doing

879
00:39:18,120 --> 00:39:21,600
and no book, no course even me. If I sat

880
00:39:21,600 --> 00:39:25,080
with you every single day, for a month,

881
00:39:26,430 --> 00:39:29,670
you would still take losses, you would

882
00:39:29,670 --> 00:39:33,870
lose. it's unavoidable. But early on

883
00:39:33,870 --> 00:39:35,940
when you are developing, you're going to

884
00:39:35,940 --> 00:39:37,770
be wrong a lot. And this is reason why I

885
00:39:37,770 --> 00:39:39,480
tell people do not trade with my funds

886
00:39:39,540 --> 00:39:41,100
until you know exactly what you're

887
00:39:41,100 --> 00:39:43,800
doing. And you understand yourself. And

888
00:39:43,800 --> 00:39:45,360
that may be longer than six months, it

889
00:39:45,360 --> 00:39:47,520
may be longer than a year. For some of

890
00:39:47,520 --> 00:39:50,370
you it might be 234 years, like a

891
00:39:50,370 --> 00:39:52,680
college degree. And some of you aren't

892
00:39:52,680 --> 00:39:55,140
prepared for that. And there's no shame

893
00:39:55,140 --> 00:39:56,250
in you saying you know what, this ain't

894
00:39:56,250 --> 00:39:57,960
for me. That's good. That means you're

895
00:39:57,960 --> 00:39:59,400
not going to lose money. That means

896
00:39:59,400 --> 00:40:00,690
you're not going to have In bounces your

897
00:40:00,690 --> 00:40:02,670
life, it means that you're not going to

898
00:40:02,670 --> 00:40:05,490
hurt yourself, both financially and

899
00:40:05,490 --> 00:40:08,970
psychologically. Because I did that. I

900
00:40:08,970 --> 00:40:11,460
caused physical problems with an eating

901
00:40:11,460 --> 00:40:14,460
disorder. I developed agoraphobia, which

902
00:40:14,460 --> 00:40:16,200
was a fear of being around other people.

903
00:40:16,800 --> 00:40:18,990
Because I didn't want them to find out

904
00:40:18,990 --> 00:40:25,410
how bad I was losing. And I wish I could

905
00:40:25,410 --> 00:40:29,880
go back in time and tell myself losing

906
00:40:29,880 --> 00:40:33,390
is normal. it's acceptable. It's part of

907
00:40:33,390 --> 00:40:34,770
the business transactions in this

908
00:40:34,770 --> 00:40:36,840
industry. You're going to have losses,

909
00:40:37,230 --> 00:40:40,050
control them. Over time, you're gonna

910
00:40:40,050 --> 00:40:43,260
make more money than you lose. I didn't

911
00:40:43,260 --> 00:40:44,850
think that way. When I first started, I

912
00:40:44,850 --> 00:40:46,770
was trying to avoid losing all together.

913
00:40:47,250 --> 00:40:49,170
And then every single loss was a

914
00:40:49,170 --> 00:40:53,070
paramount event like it was huge. It was

915
00:40:53,070 --> 00:40:56,490
elevated to some grandiose, painful,

916
00:40:56,640 --> 00:40:58,410
just terrible thing that I had been

917
00:40:58,440 --> 00:41:02,130
enduring When it's just, I did it wrong.

918
00:41:03,180 --> 00:41:05,910
Simple. You made a mistake, Michael, and

919
00:41:05,910 --> 00:41:08,850
you're gonna make lots of them. 27 years

920
00:41:08,850 --> 00:41:11,070
from now, you're gonna have so many

921
00:41:11,070 --> 00:41:12,180
losing trades, you're gonna look back

922
00:41:12,180 --> 00:41:14,640
and say, You know what? It didn't kill

923
00:41:14,640 --> 00:41:18,210
me. So be willing to lose a lot early on

924
00:41:18,330 --> 00:41:20,100
in your development. That's why you want

925
00:41:20,100 --> 00:41:21,360
to do it on paper. That's why you want

926
00:41:21,360 --> 00:41:23,100
to do it on demo, because you need to

927
00:41:23,100 --> 00:41:26,370
see what it feels like to be wrong a lot

928
00:41:26,610 --> 00:41:27,990
and not have the money taken from you.

929
00:41:28,410 --> 00:41:30,180
And then correct those problems before

930
00:41:30,180 --> 00:41:36,330
you put real money at work. Stay away

931
00:41:36,330 --> 00:41:41,460
from social media drains. Well, in this

932
00:41:41,490 --> 00:41:43,890
age, we have a lot of social media. But

933
00:41:43,890 --> 00:41:46,290
back when I first started November

934
00:41:46,290 --> 00:41:50,040
5 1992, social media was just starting

935
00:41:50,040 --> 00:41:53,070
up with message boards, or bulletin

936
00:41:53,070 --> 00:41:54,360
boards they call them so it's kinda like

937
00:41:54,360 --> 00:41:58,080
Twitter. Yeah, not so much Instagram,

938
00:41:58,080 --> 00:42:00,750
but I see like Twitter. He just People

939
00:42:00,750 --> 00:42:04,800
would just communicate with open emails

940
00:42:04,830 --> 00:42:06,600
basically is the format was whatever you

941
00:42:06,600 --> 00:42:08,700
would look at and see that would be sent

942
00:42:08,700 --> 00:42:10,800
by way of an email. It would just be a

943
00:42:10,800 --> 00:42:13,020
open source where people could see what

944
00:42:13,020 --> 00:42:15,090
everybody was doing a message board

945
00:42:15,090 --> 00:42:18,840
basically. And I would get my feelings

946
00:42:18,840 --> 00:42:20,670
hurt back then. Because someone would

947
00:42:20,670 --> 00:42:21,900
say, that's a stupid idea what you're

948
00:42:21,900 --> 00:42:24,060
doing. And then when I was doing it,

949
00:42:24,060 --> 00:42:25,890
right, everybody was like, Man, you are

950
00:42:25,890 --> 00:42:28,440
a rock star. I'm taking that trade. And

951
00:42:28,440 --> 00:42:29,850
I was like, Yeah, no, I'm making money

952
00:42:29,850 --> 00:42:31,740
now because he or she thinks it's a good

953
00:42:31,740 --> 00:42:36,120
trade. And it's stupid. It was dumb. I

954
00:42:36,120 --> 00:42:38,100
let other people back then influence my

955
00:42:38,100 --> 00:42:41,910
decisions or change the level of

956
00:42:43,830 --> 00:42:46,410
expectation I had on the trade because

957
00:42:46,440 --> 00:42:48,120
if they said, Man, it's a good idea. I

958
00:42:48,120 --> 00:42:52,380
think it's going to go to 1150 when I

959
00:42:52,380 --> 00:42:55,230
was looking at like, 1080 I'm thinking

960
00:42:55,230 --> 00:42:56,580
myself, yeah, they're probably right.

961
00:42:56,970 --> 00:42:58,260
And now I change my trade to what

962
00:42:58,260 --> 00:43:00,420
they're saying because many I don't want

963
00:43:00,420 --> 00:43:02,130
them to be right. And we miss out on

964
00:43:02,130 --> 00:43:04,410
that extra profit. You see what that

965
00:43:04,410 --> 00:43:08,460
trap just did. It took my trade away

966
00:43:08,460 --> 00:43:10,110
from me. And now I took their trade.

967
00:43:10,710 --> 00:43:14,190
who's in control there? It wasn't me. I

968
00:43:14,190 --> 00:43:18,090
let go on the wheel. don't join trading

969
00:43:18,090 --> 00:43:21,870
clubs. Okay? That means circles where

970
00:43:21,870 --> 00:43:25,350
everyone has the hive mentality. Because

971
00:43:25,350 --> 00:43:27,030
you need to discover who you are as a

972
00:43:27,030 --> 00:43:32,820
trader, and it's very, I guess, wasteful

973
00:43:32,850 --> 00:43:35,130
for your time. And it stunts your

974
00:43:35,130 --> 00:43:38,580
growth. If you start going into a group

975
00:43:38,880 --> 00:43:40,680
that has Well, this is the only way of

976
00:43:40,680 --> 00:43:42,420
trading and this is all we do around

977
00:43:42,420 --> 00:43:44,250
here. Because what you're trying to do

978
00:43:44,250 --> 00:43:48,450
is be part of that, click, okay. You're

979
00:43:48,450 --> 00:43:50,370
trying to take on the hive mentality,

980
00:43:50,820 --> 00:43:53,880
and it may not be suited for you. But if

981
00:43:53,880 --> 00:43:55,710
you waste more time and unfortunately

982
00:43:55,710 --> 00:43:59,430
money you don't want to discover that

983
00:43:59,430 --> 00:44:00,900
you've been wasted Your time and money.

984
00:44:01,170 --> 00:44:04,260
Okay? So you want to be solo trading is

985
00:44:04,260 --> 00:44:06,930
a solo sport. It's not a team sport, no

986
00:44:06,930 --> 00:44:09,930
matter how good your guru or mentor is.

987
00:44:10,350 --> 00:44:14,070
If you're doing everything they say, you

988
00:44:14,070 --> 00:44:16,710
aren't in control, you're growing

989
00:44:16,710 --> 00:44:21,330
codependent. don't subscribe to alerts,

990
00:44:21,720 --> 00:44:25,380
it gets back to signals. You want to be

991
00:44:25,830 --> 00:44:28,260
the source or generation of the trade

992
00:44:28,260 --> 00:44:30,090
ideas. That way when you're wrong,

993
00:44:30,570 --> 00:44:31,740
you're forced to assume the

994
00:44:31,740 --> 00:44:33,360
responsibility. You can't say, Well, I

995
00:44:33,360 --> 00:44:34,440
just listened to that person. They were

996
00:44:34,440 --> 00:44:37,230
wrong. They suck. Well, what are you

997
00:44:37,230 --> 00:44:38,730
gonna do about it? Well, I'm gonna find

998
00:44:38,730 --> 00:44:41,160
somebody else. That's not responsible.

999
00:44:41,700 --> 00:44:44,910
That's gambling. You're going to another

1000
00:44:44,910 --> 00:44:48,510
slot machine at another casino. That's

1001
00:44:48,540 --> 00:44:53,040
all that is. Versus I want to learn how

1002
00:44:53,040 --> 00:44:57,360
to play cards. and manage my risk. Not

1003
00:44:57,360 --> 00:44:59,640
bet too big. And just be steady Eddie at

1004
00:44:59,640 --> 00:45:03,210
the table. You want to be the generating

1005
00:45:03,240 --> 00:45:05,430
source of the signals? don't subscribe

1006
00:45:05,430 --> 00:45:06,780
to someone else because you have no idea

1007
00:45:06,780 --> 00:45:08,490
what got them into the trade. You don't

1008
00:45:08,490 --> 00:45:11,940
know what influences are being imposed

1009
00:45:11,940 --> 00:45:14,610
on them. Maybe they had a bad day. Maybe

1010
00:45:14,610 --> 00:45:17,370
they had just recently had a spat with

1011
00:45:17,370 --> 00:45:19,620
their spouse. And they feel like they

1012
00:45:19,620 --> 00:45:22,620
have to feel good, empowered, man. I'm

1013
00:45:22,620 --> 00:45:23,460
gonna go out there and just tell

1014
00:45:23,460 --> 00:45:27,840
everybody to buy SMP tomorrow at the

1015
00:45:27,840 --> 00:45:30,720
open. And if I'm right, I'll feel good.

1016
00:45:31,170 --> 00:45:32,460
I'll feel better about this whole thing.

1017
00:45:33,300 --> 00:45:39,090
Because they're human too. Do you want

1018
00:45:39,090 --> 00:45:40,620
to be subscribing to someone that's like

1019
00:45:40,620 --> 00:45:43,290
that. You don't know if that's what's

1020
00:45:43,290 --> 00:45:44,490
going on. They're not going to come out

1021
00:45:44,490 --> 00:45:46,890
and say, yeah, it's trade worked out.

1022
00:45:46,890 --> 00:45:48,060
But let me tell you what really was

1023
00:45:48,060 --> 00:45:51,180
going on. My wife told me I was a bum. I

1024
00:45:51,180 --> 00:45:52,740
spent too much time on these charts and

1025
00:45:52,740 --> 00:45:54,030
I didn't spend any time with the kids.

1026
00:45:54,420 --> 00:45:57,360
And I walk the dog in six months. But I

1027
00:45:57,360 --> 00:45:59,730
knew if I got this right, I'd feel

1028
00:45:59,730 --> 00:46:03,210
strong. about myself. That never

1029
00:46:03,210 --> 00:46:05,040
happens, folks, that never happens.

1030
00:46:05,190 --> 00:46:06,690
Never subscribed to other people's

1031
00:46:06,690 --> 00:46:10,230
alerts. Don't count other people's

1032
00:46:10,230 --> 00:46:12,420
money. That's what's popular right now

1033
00:46:12,420 --> 00:46:13,680
everyone wants to know how much money

1034
00:46:13,680 --> 00:46:16,590
someone else has Instagram. What cars do

1035
00:46:16,590 --> 00:46:18,630
they drive? What houses do they live in?

1036
00:46:18,660 --> 00:46:20,040
Where are they having their vacation?

1037
00:46:20,040 --> 00:46:21,780
What do they wear? What kind of shoes

1038
00:46:21,780 --> 00:46:24,390
they have on? Do they wear socks? What

1039
00:46:24,390 --> 00:46:26,400
kind of underwear they have? What

1040
00:46:26,430 --> 00:46:30,300
jewelry do they have? Come on. All that

1041
00:46:30,300 --> 00:46:34,440
stuff is a waste. It's a waste, to waste

1042
00:46:34,440 --> 00:46:37,650
your time. It's a waste of money. And

1043
00:46:37,650 --> 00:46:38,850
you don't need all those things. If

1044
00:46:38,850 --> 00:46:40,830
you're trading to do that, you're never

1045
00:46:40,830 --> 00:46:42,720
gonna get there. And I'm gonna repeat

1046
00:46:42,720 --> 00:46:45,960
that. If you are trading to live like

1047
00:46:45,960 --> 00:46:48,810
that. You're never going to get there.

1048
00:46:49,560 --> 00:46:51,900
Because you're looking at money. And

1049
00:46:51,900 --> 00:46:53,640
you're not looking at the process that's

1050
00:46:53,640 --> 00:46:56,070
involved, that would eventually lead to

1051
00:46:56,070 --> 00:46:58,710
profitability. So you're chasing that

1052
00:46:58,710 --> 00:47:01,290
carrot little piece of candy that's

1053
00:47:01,290 --> 00:47:03,750
dangled in front of a child, you may be

1054
00:47:03,750 --> 00:47:05,700
a stranger. But if you dangle that candy

1055
00:47:05,700 --> 00:47:07,080
in front of a child, what's the child

1056
00:47:07,080 --> 00:47:10,350
gonna do? Reach out for that candy? And

1057
00:47:10,350 --> 00:47:12,480
that's what all these people do. They

1058
00:47:12,480 --> 00:47:16,440
dangle all this lavish toys and

1059
00:47:16,440 --> 00:47:17,670
lifestyle, materialism.

1060
00:47:18,960 --> 00:47:21,450
All of that is fluff. I've never done

1061
00:47:21,450 --> 00:47:23,160
those types of things. And it's

1062
00:47:23,160 --> 00:47:25,290
important to understand that the reason

1063
00:47:25,290 --> 00:47:26,640
why I don't do it, it's not because of

1064
00:47:26,640 --> 00:47:29,220
lack of it. Because I have all those

1065
00:47:29,220 --> 00:47:31,770
things. But it doesn't do anything to

1066
00:47:31,770 --> 00:47:34,080
make you a better trader doesn't make

1067
00:47:34,080 --> 00:47:37,050
you a better student. And it will not in

1068
00:47:37,050 --> 00:47:39,900
any capacity, motivate you and then that

1069
00:47:39,900 --> 00:47:41,760
translates into a greater skill set

1070
00:47:42,030 --> 00:47:44,850
that's derived because you saw that it

1071
00:47:44,850 --> 00:47:46,770
doesn't work like that. But how many

1072
00:47:46,770 --> 00:47:49,470
people fall victim to that? Everyone,

1073
00:47:50,310 --> 00:47:53,700
everyone, the first course I bought from

1074
00:47:53,700 --> 00:47:55,710
Ken Roberts, that's all he talked about.

1075
00:47:56,070 --> 00:47:59,070
You want to go on vacations. You want to

1076
00:47:59,070 --> 00:48:01,260
have enough money to quit. Your job, you

1077
00:48:01,260 --> 00:48:03,660
want to buy a yacht, you want to live in

1078
00:48:03,660 --> 00:48:06,900
a mansion. That's what was sold to me.

1079
00:48:07,440 --> 00:48:09,720
And I bought that course. And in month

1080
00:48:09,810 --> 00:48:11,340
one trade the very first trait I lost

1081
00:48:11,340 --> 00:48:15,540
50% of what I put in. Well, I can tell

1082
00:48:15,540 --> 00:48:19,500
you that was never said in the book that

1083
00:48:19,500 --> 00:48:21,180
didn't get talked about at all. It just

1084
00:48:21,180 --> 00:48:22,290
said, well, you can take some losses,

1085
00:48:22,290 --> 00:48:23,370
but you don't want your losses to be too

1086
00:48:23,370 --> 00:48:23,700
big.

1087
00:48:25,380 --> 00:48:25,950
Okay.

1088
00:48:27,420 --> 00:48:29,910
But what happens if it is because

1089
00:48:29,940 --> 00:48:32,100
options are a little bit different

1090
00:48:32,100 --> 00:48:35,670
animal. And I found out the hard way.

1091
00:48:37,500 --> 00:48:38,970
Don't be enticed by other people's

1092
00:48:38,970 --> 00:48:40,590
money. Don't count other people's money.

1093
00:48:40,620 --> 00:48:43,920
Don't ask them what they make, because

1094
00:48:44,190 --> 00:48:47,310
you can't spend their money. That's why

1095
00:48:47,310 --> 00:48:48,870
I don't talk about what I'm making.

1096
00:48:49,350 --> 00:48:50,490
That's why I don't talk about what I

1097
00:48:50,490 --> 00:48:52,770
have. That's why I don't show you what I

1098
00:48:52,770 --> 00:48:55,890
own. Because you can't drive my cars.

1099
00:48:56,220 --> 00:48:57,420
You're not going to spend a night in my

1100
00:48:57,420 --> 00:48:58,890
house. You're not going to eat dinner.

1101
00:48:58,890 --> 00:49:01,890
All my dishes. You're not going to be on

1102
00:49:01,890 --> 00:49:04,770
my vacations. So what difference does it

1103
00:49:04,770 --> 00:49:07,620
make? It's not going to make me feel

1104
00:49:07,650 --> 00:49:09,450
better about myself for doing it. In

1105
00:49:09,450 --> 00:49:11,490
fact, I'll feel like a slimeball like I

1106
00:49:11,490 --> 00:49:13,170
did when I was younger, because I did

1107
00:49:13,170 --> 00:49:15,090
that stuff to get people interested in

1108
00:49:15,090 --> 00:49:20,220
me. And it's not necessary. Don't feel

1109
00:49:20,220 --> 00:49:22,140
insignificant by contrast, when you see

1110
00:49:22,140 --> 00:49:24,540
other people succeeding or supposedly

1111
00:49:24,540 --> 00:49:27,030
succeeding, don't measure yourself

1112
00:49:27,030 --> 00:49:30,120
against that. Because if you do, what

1113
00:49:30,120 --> 00:49:33,030
you're saying is I'm only successful if

1114
00:49:33,030 --> 00:49:37,530
I get to where they're at. I did that.

1115
00:49:38,310 --> 00:49:40,110
And when I stopped and said, You know

1116
00:49:40,110 --> 00:49:43,770
what? I'm going to look at a goal.

1117
00:49:44,010 --> 00:49:46,650
That's above everyone I've seen out

1118
00:49:46,650 --> 00:49:50,700
there. I didn't, I didn't believe anyone

1119
00:49:50,700 --> 00:49:51,960
else was more successful than Larry

1120
00:49:51,960 --> 00:49:54,990
Williams. And he took $10,000 of $1.2

1121
00:49:54,990 --> 00:49:58,830
million in one year, actually was over

1122
00:49:58,830 --> 00:50:00,990
$2 million that same year. 1987 but that

1123
00:50:00,990 --> 00:50:02,700
crash hurt him and had to trade it back

1124
00:50:02,700 --> 00:50:05,190
and got it to 1.2 before the close of

1125
00:50:05,190 --> 00:50:07,290
the Robbins World Cup that particularly

1126
00:50:07,290 --> 00:50:08,880
here, and you can see he still has the

1127
00:50:08,880 --> 00:50:12,240
highest percentage gain in that contest.

1128
00:50:13,560 --> 00:50:15,600
So I said I'm gonna make more than that.

1129
00:50:17,130 --> 00:50:19,980
Because that was that was my measuring

1130
00:50:19,980 --> 00:50:22,350
stick. And I wanted to do better than

1131
00:50:22,350 --> 00:50:25,380
that. And I always live my life. With

1132
00:50:25,410 --> 00:50:27,930
that in mind, I didn't want to say, What

1133
00:50:27,930 --> 00:50:31,050
am I good is at the time, Jake Bernstein

1134
00:50:33,000 --> 00:50:35,130
which he got himself in a lot of

1135
00:50:35,130 --> 00:50:38,790
trouble. And it's questionable of how

1136
00:50:38,790 --> 00:50:40,350
much money he actually made as a trader.

1137
00:50:41,460 --> 00:50:46,020
point is I fell victim to that in the

1138
00:50:46,020 --> 00:50:47,280
beginning and you don't want to do that.

1139
00:50:47,280 --> 00:50:49,650
Don't measure yourself against someone

1140
00:50:49,650 --> 00:50:50,970
else. don't measure yourself against me.

1141
00:50:50,970 --> 00:50:52,290
Don't measure yourself against somebody

1142
00:50:52,290 --> 00:50:54,000
else you see on social media, Instagram,

1143
00:50:54,000 --> 00:50:56,340
all that. These people 99% of time are

1144
00:50:56,340 --> 00:50:58,980
fake. They are driving cars, they don't

1145
00:50:58,980 --> 00:51:02,550
own They are in homes that they don't

1146
00:51:03,150 --> 00:51:06,240
sleep in. And the clothes that they

1147
00:51:06,240 --> 00:51:09,660
have. Many times, they're taking them

1148
00:51:09,660 --> 00:51:13,260
back the next day. You know, what's the

1149
00:51:13,260 --> 00:51:15,480
deal and watches are all basically fake.

1150
00:51:15,600 --> 00:51:17,310
All that stuff is lower to make you

1151
00:51:17,310 --> 00:51:18,660
think they're successful. If they're

1152
00:51:18,660 --> 00:51:20,790
successful, they'll prove it by showing

1153
00:51:20,790 --> 00:51:22,650
you. They know what's going to happen in

1154
00:51:22,650 --> 00:51:25,140
the marketplace. But strangely enough,

1155
00:51:26,250 --> 00:51:29,190
that's the thing they don't ever do. And

1156
00:51:29,190 --> 00:51:31,770
that's what I focus on. I've made a

1157
00:51:31,770 --> 00:51:35,430
reputation on telling you what I believe

1158
00:51:35,460 --> 00:51:37,770
is the best in terms of market analysis

1159
00:51:37,770 --> 00:51:42,270
concepts. In 1996, I penned what

1160
00:51:42,270 --> 00:51:44,520
everybody else is out there now touting

1161
00:51:44,520 --> 00:51:47,100
as market maker concepts in one capacity

1162
00:51:47,100 --> 00:51:49,380
or another. It's a watered down version

1163
00:51:49,380 --> 00:51:51,630
of what I put in lecture notes in 1996.

1164
00:51:52,170 --> 00:51:55,350
What I started using in 1995, improves

1165
00:51:55,350 --> 00:51:58,920
with real money. I started teaching one

1166
00:51:58,920 --> 00:52:01,530
on one sessions. And they have made

1167
00:52:01,530 --> 00:52:04,470
their way through the internet over

1168
00:52:04,470 --> 00:52:06,990
time. And now we see even more of it.

1169
00:52:06,990 --> 00:52:09,600
People have books about it. They've made

1170
00:52:09,600 --> 00:52:12,450
courses about it and even included some

1171
00:52:12,450 --> 00:52:13,860
of the things that actually occurred in

1172
00:52:13,860 --> 00:52:15,630
my personal life as some of their

1173
00:52:15,630 --> 00:52:18,270
narratives. And it's all a lie. They

1174
00:52:18,270 --> 00:52:19,920
didn't have those experiences, but I

1175
00:52:19,920 --> 00:52:22,350
did. And I'm the only one that can prove

1176
00:52:22,350 --> 00:52:26,670
that makes this stuff work. Don't feel

1177
00:52:26,670 --> 00:52:28,500
insignificant by contrast, because

1178
00:52:28,530 --> 00:52:30,000
majority of the people you see out

1179
00:52:30,000 --> 00:52:31,740
there, they're fakes. They're frauds,

1180
00:52:31,740 --> 00:52:33,360
and they aren't what they claim to be.

1181
00:52:38,910 --> 00:52:40,500
match your style to your personality.

1182
00:52:41,400 --> 00:52:42,570
This is something I picked up from Larry

1183
00:52:42,570 --> 00:52:44,430
Williams, who made a lot of sense and I

1184
00:52:44,430 --> 00:52:46,200
avoided doing it for a long time. I wish

1185
00:52:46,200 --> 00:52:48,960
I would have done it sooner. But if

1186
00:52:48,960 --> 00:52:51,300
you're a scalper Okay, you're going to

1187
00:52:51,300 --> 00:52:52,470
do very well if you make quick

1188
00:52:52,470 --> 00:52:54,930
decisions. And that's as simple as that.

1189
00:52:55,170 --> 00:52:56,910
If you hem and haw about trying to make

1190
00:52:56,910 --> 00:52:58,140
a decision and you're going to be a

1191
00:52:59,340 --> 00:53:01,590
scalper again. Traitor, it's going to be

1192
00:53:01,590 --> 00:53:04,890
a problem. And if you short term trade

1193
00:53:06,720 --> 00:53:07,890
typically you're the type of person that

1194
00:53:07,890 --> 00:53:10,500
can take a trade and sleep while you're

1195
00:53:10,500 --> 00:53:13,320
in it. That that is a real good general

1196
00:53:13,320 --> 00:53:14,880
rule of thumb. If you can sleep while

1197
00:53:14,880 --> 00:53:16,110
you're in a trade, then you're probably

1198
00:53:16,110 --> 00:53:18,990
a good short term trader. Don't force

1199
00:53:18,990 --> 00:53:23,430
yourself into any mold. There's gurus,

1200
00:53:23,430 --> 00:53:24,750
there's mentors, there's people out

1201
00:53:24,750 --> 00:53:26,610
there to educate. And unfortunately,

1202
00:53:26,610 --> 00:53:28,080
they try to take everyone and press them

1203
00:53:28,080 --> 00:53:30,030
into this mold, this cookie cutter

1204
00:53:30,030 --> 00:53:32,190
approach and it doesn't work. Avoid

1205
00:53:32,190 --> 00:53:37,320
doing that. Don't try to copy someone,

1206
00:53:38,220 --> 00:53:41,910
their style, their image, their forte,

1207
00:53:42,720 --> 00:53:46,470
their approach their vocabulary. You see

1208
00:53:46,470 --> 00:53:49,110
where I'm going with this don't just so

1209
00:53:49,110 --> 00:53:50,640
many people out there on YouTube now

1210
00:53:50,640 --> 00:53:53,670
sound a lot like ICT. Don't try to copy

1211
00:53:53,670 --> 00:53:55,770
someone, be original. Make your own

1212
00:53:55,770 --> 00:54:01,800
unique model. Don't change trading

1213
00:54:01,800 --> 00:54:07,020
approaches. stick to one approach, one

1214
00:54:07,050 --> 00:54:11,130
method, master it, and then see how you

1215
00:54:11,130 --> 00:54:13,140
work with it. That means you're gonna

1216
00:54:13,140 --> 00:54:14,670
have to spend some time with it. Most

1217
00:54:14,670 --> 00:54:18,690
people don't want to do that. Avoid

1218
00:54:18,690 --> 00:54:21,660
system hopping, okay? And the trap is if

1219
00:54:21,660 --> 00:54:23,640
you take a trade and it loses, okay,

1220
00:54:23,670 --> 00:54:25,260
that's reasonable. But if you take

1221
00:54:25,260 --> 00:54:26,460
another train, you lose. That's it. I'm

1222
00:54:26,460 --> 00:54:28,350
throwing this away. as stupid as this

1223
00:54:28,350 --> 00:54:30,180
method doesn't work. I did that a lot.

1224
00:54:30,570 --> 00:54:32,580
And I went through all kinds of trading

1225
00:54:32,580 --> 00:54:34,110
systems. And that's the reason why I

1226
00:54:34,110 --> 00:54:35,760
went through all kinds of trading

1227
00:54:35,760 --> 00:54:37,710
accounts, because I wasn't consistent

1228
00:54:37,710 --> 00:54:39,840
with anything, except for system

1229
00:54:39,840 --> 00:54:42,090
hopping. That was my only consistency,

1230
00:54:42,120 --> 00:54:44,070
the baseline and my consistency was all

1231
00:54:44,220 --> 00:54:47,160
around me not being consistent with one

1232
00:54:47,190 --> 00:54:50,160
trading approach. Many traders failed at

1233
00:54:52,380 --> 00:54:54,600
every model loses. You're gonna have to

1234
00:54:54,600 --> 00:54:56,190
accept that I mentioned it earlier with

1235
00:54:56,190 --> 00:54:57,930
risk. You can't avoid it. It's part of

1236
00:54:57,930 --> 00:55:00,240
the business. Treat it like a new Normal

1237
00:55:00,240 --> 00:55:01,860
transaction when you go to work, if you

1238
00:55:01,860 --> 00:55:03,330
get sick, you miss a day's work. That's

1239
00:55:03,330 --> 00:55:05,880
a loss. Did you lose your job? No. Did

1240
00:55:05,880 --> 00:55:07,770
you lose your house? No. Did you have a

1241
00:55:07,770 --> 00:55:09,300
little less money that week? Yeah,

1242
00:55:09,840 --> 00:55:11,640
that's life. Well, that's how trading

1243
00:55:11,640 --> 00:55:13,350
works. losses are inevitable, you're

1244
00:55:13,350 --> 00:55:17,400
going to have them. Find your unique

1245
00:55:17,400 --> 00:55:20,460
model and grow from it. Don't tweak it

1246
00:55:20,460 --> 00:55:22,590
too much. Once it's profitable, stick

1247
00:55:22,590 --> 00:55:25,200
with it. And then what you'll find is by

1248
00:55:25,230 --> 00:55:27,000
using a more advanced money management

1249
00:55:27,000 --> 00:55:29,220
approach, if you have a method that

1250
00:55:29,220 --> 00:55:31,200
gives you a delivered result that's

1251
00:55:31,200 --> 00:55:33,150
measurable, and it's consistent enough

1252
00:55:33,180 --> 00:55:34,650
that it does it more times than it

1253
00:55:34,650 --> 00:55:37,410
doesn't. If you add impeccable risk

1254
00:55:37,410 --> 00:55:38,850
management and money management to that,

1255
00:55:39,180 --> 00:55:42,660
you will become wealthy. In this story.

1256
00:55:42,660 --> 00:55:44,100
There's no ifs, ands or buts. That's the

1257
00:55:44,100 --> 00:55:45,990
way it is. But you cannot get to that

1258
00:55:45,990 --> 00:55:47,280
point until you go through all these

1259
00:55:47,280 --> 00:55:49,380
other steps that are very, very boring,

1260
00:55:49,410 --> 00:55:50,910
admittedly, but they're all part of the

1261
00:55:50,910 --> 00:55:56,160
process. settle on one trade set up

1262
00:55:56,160 --> 00:56:01,530
initially. Determine your asset class.

1263
00:56:02,310 --> 00:56:04,710
Pick one market asset class as Commodity

1264
00:56:04,740 --> 00:56:07,410
Index future. It's a forex pair. It's a

1265
00:56:07,410 --> 00:56:10,890
cryptocurrency. It's a stock, whatever

1266
00:56:10,890 --> 00:56:13,980
it is, stick to that one asset class.

1267
00:56:14,160 --> 00:56:16,020
And inside that one asset class, pick

1268
00:56:16,020 --> 00:56:19,260
one market. Outline when you want to

1269
00:56:19,260 --> 00:56:21,210
buy, that means what's the criteria that

1270
00:56:21,210 --> 00:56:22,680
you feel comfortable with when it's a

1271
00:56:22,680 --> 00:56:24,990
buy, and then outline that and make it

1272
00:56:24,990 --> 00:56:26,490
as detailed as possible, put it on

1273
00:56:26,490 --> 00:56:29,520
paper. And the same thing with when you

1274
00:56:29,520 --> 00:56:31,440
want to go short. What's the

1275
00:56:31,440 --> 00:56:33,360
characteristics and circumstances that

1276
00:56:33,360 --> 00:56:36,180
would drive you to believing it's a

1277
00:56:36,180 --> 00:56:40,650
short and with that you want to build

1278
00:56:40,650 --> 00:56:43,890
many study journal cases. Notice I said,

1279
00:56:44,250 --> 00:56:46,110
not live trades with real money. You

1280
00:56:46,110 --> 00:56:48,240
want to have a study journal that has a

1281
00:56:48,240 --> 00:56:50,490
plethora of examples of where this

1282
00:56:50,490 --> 00:56:52,050
worked in the past and when it didn't,

1283
00:56:52,590 --> 00:56:55,950
and study them and it great links set

1284
00:56:55,950 --> 00:56:57,360
way you get familiar with what it looks

1285
00:56:57,360 --> 00:56:59,580
like by recognition and then when you

1286
00:56:59,580 --> 00:57:01,740
see like price action, you'll recognize

1287
00:57:01,740 --> 00:57:08,160
it as forms. Now, with all those things,

1288
00:57:08,490 --> 00:57:10,830
you have something to start with. And

1289
00:57:10,830 --> 00:57:14,250
now you can plan your beginning. In part

1290
00:57:14,250 --> 00:57:16,920
two, I promise I won't be so long winded

1291
00:57:17,070 --> 00:57:18,990
and boring. We're actually gonna give

1292
00:57:18,990 --> 00:57:21,930
some insights on how you can go into the

1293
00:57:21,930 --> 00:57:24,480
marketplace and study a very particular

1294
00:57:24,480 --> 00:57:26,640
thing. And what that is, is the optimal

1295
00:57:26,640 --> 00:57:28,230
trade entry. And I'll talk to you then

1296
00:57:28,320 --> 00:57:29,760
wish good luck and good trading.