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Last modified by Drunk Monkey on 2021-05-25 08:40
From version 1.1
edited by Drunk Monkey
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To version 2.1
edited by Drunk Monkey
on 2021-05-25 08:40
Change comment: There is no comment for this version

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3 -ICT: Okay, this is part four of the if I
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2 +|1 |00:00:00,060 ~-~-> 00:00:08,820 |ICT: Okay, this is part four of the, if I could go back and tell myself what I know now series, this is a hypothetical conversation with my younger self.
3 +|2 |00:00:13,679 ~-~-> 00:00:24,539 |Right? So you're looking at all your books and such, Michael, when you're preparing your way to get to financial freedom. And while you're practicing, and
4 +|3 |00:00:24,569 ~-~-> 00:00:36,419 |the question is going to be is when do you leave demo trading, or at the time, when we first started, it was paper trading. So when am I ready for live funds,
5 +|4 |00:00:36,929 ~-~-> 00:00:51,599 |it begins with proof of concept. proof of concept, you have to show minimum of six months consistency, managed to keep risk below 3%, maximum. And emotionally,
6 +|5 |00:00:51,599 ~-~-> 00:00:53,069 |whether strings of losses.
7 +|6 |00:00:58,799 ~-~-> 00:01:10,049 |So when to leave demo. First and foremost, you have to have proof of concept, you're gonna be doing a lot of things, you mean buying a lot of books. And I
8 +|7 |00:01:10,049 ~-~-> 00:01:20,699 |wish I could tell you to save all that money. Because you're going to have over 2000 books, and less than a dozen of them were really worth the time reading. A
9 +|8 |00:01:20,699 ~-~-> 00:01:29,189 |lot of it's gonna be regurgitated things. So you want to focus on the following things. If you do this, Michael, you're going to be able to fast track your way
10 +|9 |00:01:29,759 ~-~-> 00:01:37,709 |to get through a lot of the hardships that you're that you will unknowingly enter yourself into and chase and pursue things that are going to lead to more
11 +|10 |00:01:37,709 ~-~-> 00:01:53,549 |loss and confusion. The first thing you will be focusing on is seasonal tendencies. You want to ignore the things that Jake Bernstein talks about. The
12 +|11 |00:01:55,019 ~-~-> 00:02:09,539 |more research group that puts out seasonal tendencies, this person has the best seasonal tendencies mrci.com is the website, you're going to find that if you
13 +|12 |00:02:09,539 ~-~-> 00:02:22,049 |stick to that gentleman's seasonal tendencies, they're going to serve you exceptionally well. Quarterly shifts, you'll be looking for moves that move
14 +|13 |00:02:22,049 ~-~-> 00:02:33,659 |every three to four months. Now, the markets always have some specific gyration. But focusing primarily on the major moves, that should transpire over the next
15 +|14 |00:02:33,899 ~-~-> 00:02:48,539 |three to four months. If you focus there, you're going to find a lot of these mega trades. Monthly bias, try to formulate all of the things that you're doing
16 +|15 |00:02:48,929 ~-~-> 00:02:59,429 |every single day to get in sync with the monthly bias. What is the monthly bias likely to do is it likely to trade higher? Is it likely to trade lower, focusing
17 +|16 |00:02:59,429 ~-~-> 00:03:09,869 |within that particular bias within a specific quarterly shift with any specific seasonal tendency is going to give you the highest odds probability of success
18 +|17 |00:03:10,439 ~-~-> 00:03:19,739 |than anything you're going to read in any books that you buy. So if I can grab you and shake you by the lapels, Michael, this is exactly what I would stress to
19 +|18 |00:03:19,739 ~-~-> 00:03:33,179 |you. Because everything that you're doing prior to identifying This is creating the problem, all the frustrations, you're feeling all the I want to know where
20 +|19 |00:03:33,179 ~-~-> 00:03:43,679 |it's going next. This is the three things that helps figure that out for you. But it's gonna be years before you discern that. But if I could convince you
21 +|20 |00:03:43,679 ~-~-> 00:03:55,709 |right now, this is what I would tell you to do focus on these top three things. Once you have that determined, then you can focus on a weekly profile. Now, if
22 +|21 |00:03:55,709 ~-~-> 00:04:07,829 |it's bullish, then you're expected to have a weekly profile that's bullish. At the time of recording, you're world renowned for knowing and teaching how the
23 +|22 |00:04:07,829 ~-~-> 00:04:23,759 |weekly bias and weekly range is typically formed with the higher low form generally by Tuesday's long and open if not by Wednesday. So if you can focus on
24 +|23 |00:04:23,759 ~-~-> 00:04:32,099 |that seasonal tendency that's bullish or bearish, and you're looking for that quarterly shift that's in line with that seasonal tendency. And you have
25 +|24 |00:04:32,219 ~-~-> 00:04:44,939 |factored into what the monthly bias should be in concert with those two previous ideas. Your weekly profile should be in alignment as well. So you're not trying
26 +|25 |00:04:44,939 ~-~-> 00:04:54,839 |to go against the underlying momentum, you're trying to get in sync with the institution order flow. Once you identify the seasonal tendency, and you're
27 +|26 |00:04:54,839 ~-~-> 00:05:03,629 |focusing on a quarterly shift or a price swing that should transpire over the next three to four months. And your monthly bias is determined to be bullish or
28 +|27 |00:05:03,629 ~-~-> 00:05:12,179 |bearish relative to those seasonal tendencies and next quarterly shift. And you're working with any weekly profile, it's bullish or bearish relative to the
29 +|28 |00:05:12,179 ~-~-> 00:05:21,029 |idea of that, what monthly bias and quarterly shift and seasonal tendency, the daily template, that means what type of day are we going to have? Did we just
30 +|29 |00:05:21,029 ~-~-> 00:05:29,759 |come off of a big range day, or series of big range days, because we're going to contract and go into small ranges. But if we do go into a smaller range, it's
31 +|30 |00:05:29,759 ~-~-> 00:05:37,769 |going to be a short term event, that should lead to a large expansion in the direction of the monthly bias in the expectation of the quarterly shift that
32 +|31 |00:05:37,769 ~-~-> 00:05:47,069 |you're looking for. And within alignment of the seasonal tendency, the daily template is basically your power three concept, where it's the open, high, low
33 +|32 |00:05:47,069 ~-~-> 00:05:55,469 |and close formation of the daily bar, you're looking for accumulation, manipulation, and distribution.
34 +|33 |00:05:59,430 ~-~-> 00:06:09,960 |You want to spend a lot of time studying time of day. One an open has specific characteristics that generally make the higher low of the day, not all the time.
35 +|34 |00:06:09,990 ~-~-> 00:06:20,190 |But most of the time. New York is a continuation of whatever has transpired in London, unless you've reached a higher time frame level or key level that may
36 +|35 |00:06:20,220 ~-~-> 00:06:32,310 |introduce a new york session market reversal profile on encloses typically, the opposite end of the daily range, or will be opposing the higher low formed in
37 +|36 |00:06:32,490 ~-~-> 00:06:46,440 |London open. Focusing on a time of day, within all these specific studies are going to put you in the highest order of probability doesn't mean you're going
38 +|37 |00:06:46,440 ~-~-> 00:06:57,270 |to not take losses you will. But sticking to this in this protocol, is going to lead to the longest stretch of consistency and continuity in your trading. And
39 +|38 |00:06:57,270 ~-~-> 00:06:59,130 |you're ever going to find doing anything else.
40 +|39 |00:07:06,870 ~-~-> 00:07:19,560 |Minimum six months consistency. Now, I understand you're excited. And you see there's a lot of things ahead of you, Michael. And you've made that plan of
41 +|40 |00:07:19,560 ~-~-> 00:07:32,010 |retiring at 40. And newsflash, you get there. But try not to rush profits, there's going to be a transition, you don't know when it's going to occur. But
42 +|41 |00:07:32,010 ~-~-> 00:07:41,700 |it is when you start trading the bond market, the bond market starts serving you very well. And then you discover that you can do far more per week than you
43 +|42 |00:07:41,700 ~-~-> 00:07:58,740 |could with just one lot by using more money management. And the enticement is going to be get there quicker, get there quicker, and you discover the power of
44 +|43 |00:07:58,740 ~-~-> 00:08:13,530 |compound interest. But you don't, at that time, understand the depth that it can take you down with. It's very powerful, but it's a double edged sword. So if I
45 +|44 |00:08:13,530 ~-~-> 00:08:25,200 |could change your mind about something speaking to you now, you should do your best to try not to be profitable or rush profits. And what do I mean by that?
46 +|45 |00:08:25,590 ~-~-> 00:08:33,810 |taking more trades than necessary and onwards your trade frequency, Michael, when you first start is going to be horrendous. There's going to be days where
47 +|46 |00:08:33,810 ~-~-> 00:08:44,520 |you actually have taken 30 entries. And none of them are profitable. Because you're going back and forth, back and forth, thinking you're going to get the
48 +|47 |00:08:44,520 ~-~-> 00:08:53,430 |right direction, right? And it's not going to work out for you. This is the reason why you have to work with the previous information where you work from a
49 +|48 |00:08:53,430 ~-~-> 00:09:04,410 |macro perspective down. If you do that, you will also be more controlled over your decision making. And you won't be in a rush to make profits. rushing to
50 +|49 |00:09:04,410 ~-~-> 00:09:12,720 |profit is the surest, fastest way to lose money. It doesn't feel like it, especially when you're buying all these books because all these books are
51 +|50 |00:09:12,720 ~-~-> 00:09:21,390 |sugarcoating everything. They're over simplifying everything in giving you a false sense of security because of these indicators. And the indicators are not
52 +|51 |00:09:21,390 ~-~-> 00:09:32,790 |the secret. Those indicators are just the red herring and the gimmick that that books using to sell. Keep them on the return as the focus. Now you're going to
53 +|52 |00:09:32,790 ~-~-> 00:09:44,070 |be trading starting with commodities. And you're focusing on the dollar amount. How much can I make today? How much money can I make this week? And as soon as
54 +|53 |00:09:44,070 ~-~-> 00:09:54,900 |you take that first loss for the month, this is when you go into a tailspin because you're in a hurry to get that back. You don't like taking losses, and I
55 +|54 |00:09:54,900 ~-~-> 00:10:05,940 |want you to understand something 27 years from now You're going to be able to look back and count up an enormous amount of money that if you collectively add
56 +|55 |00:10:05,940 ~-~-> 00:10:17,790 |it all up, all of your losses are enormous. And there is nothing wrong with that, because every trader loses. But you got to keep the focus on the monthly
57 +|56 |00:10:17,790 ~-~-> 00:10:28,860 |return, it doesn't make a difference if you have three losing trading days out of the week, or you had no winning positive days for the week, but you come out
58 +|57 |00:10:28,860 ~-~-> 00:10:40,230 |ahead on the monthly, if your monthly return is consistently higher than 1%, you're doing exceptionally well. It doesn't feel like it, it doesn't sound like
59 +|58 |00:10:40,230 ~-~-> 00:10:49,470 |it, you think that everyone, that super elite is doing 500% per month, because that's the impression that these books that you're buying and wasting money on
60 +|59 |00:10:49,470 ~-~-> 00:10:59,310 |Michael are giving you, they don't do that. They aren't making those types of returns. And you want to be able to focus primarily on what you've done over the
61 +|60 |00:10:59,310 ~-~-> 00:11:09,360 |course of four weeks or so. And that result in that return is your goal. You're not trying to get an everyday percentage, you're not trying to get an every week
62 +|61 |00:11:09,360 ~-~-> 00:11:19,350 |percentage, you're looking at how you close each month. And this month positive because if it's positive, that's better than a loss. If you continuously do that
63 +|62 |00:11:19,350 ~-~-> 00:11:29,940 |you're going in the right direction. But trying not to rush profits. And try not to look beyond the scope of what your monthly return is. Invite the possibility
64 +|63 |00:11:29,940 ~-~-> 00:11:41,970 |of being wrong. I understand obsessive compulsive disorder, we struggle with it and we still struggle with it in our 40s. But I want you to understand
65 +|64 |00:11:41,970 ~-~-> 00:11:42,660 |something, Michael,
66 +|65 |00:11:44,130 ~-~-> 00:11:55,320 |you are not going to be right 100% of the time. And early on the first couple years, you're spending time trying to perfect and eliminate the possibility of
67 +|66 |00:11:55,320 ~-~-> 00:12:05,580 |you being wrong. And it's a farce don't do that you're going to waste time doing that. There is no perfect person, there's no perfect trader. And you still with
68 +|67 |00:12:05,580 ~-~-> 00:12:14,190 |almost three decades of experience I'm speaking to you now, you are still not perfect, your exits aren't perfect, your entries aren't perfect all the time,
69 +|68 |00:12:14,790 ~-~-> 00:12:25,140 |perfection is still going to evade you. But you do not need perfection. When you're wrong. Many times that's going to lead to a more profitable trade or
70 +|69 |00:12:25,740 ~-~-> 00:12:34,260 |identifying that you're wrong and getting out and staying on the sidelines preserves your capital. by preserving your capital, you don't go into spending
71 +|70 |00:12:34,950 ~-~-> 00:12:43,320 |your mental capital. And the mental capital is how much money you're really willing to lose. You may have $20,000 in that trading accounts. But you're
72 +|71 |00:12:43,320 ~-~-> 00:12:54,840 |really not comfortable if you lost 5000 of it. So what are you really trading with $5,000, but to $20,000 is just lipstick, the extra 15,000 is padding you
73 +|72 |00:12:54,840 ~-~-> 00:13:04,140 |hope you never go into. And as soon as you do, everything gets abandoned, the trade plan, methodology, all of that goes out the door risk management, trade
74 +|73 |00:13:04,140 ~-~-> 00:13:15,960 |management, all of it tossed out because now you're emotional. And you can't act that way. Invite the possibility of being wrong, identify the characteristics
75 +|74 |00:13:15,960 ~-~-> 00:13:27,930 |that leads to your trade idea being wrong, identify it before you even put the trade on. So in other words, what negates the idea what makes it most likely to
76 +|75 |00:13:27,930 ~-~-> 00:13:39,690 |fail. If those trades show signatures of that occurring, do not hesitate to simply close the trade, preserve capital. If you do that, you will be on a fast
77 +|76 |00:13:39,690 ~-~-> 00:13:50,880 |track to preserving your mental capacity, your willingness to stay studying even though you're not taking trades. If you don't do this, you're going to find
78 +|77 |00:13:50,880 ~-~-> 00:14:03,210 |yourself going into the longest tailspin in terms of pursuing something that is eluding you because you're causing it. You're trying to be perfect, and it won't
79 +|78 |00:14:03,240 ~-~-> 00:14:18,270 |exist, it won't happen, it won't happen, you're not going to be there that will always evade. Avoid chasing parabolic equity searches. I can recall many of the
80 +|79 |00:14:18,270 ~-~-> 00:14:32,970 |things that we did. And there's some of those instances where it worked out in our favor. But most of the time it didn't. So avoiding parabolic equity surges
81 +|80 |00:14:33,180 ~-~-> 00:14:41,370 |is one of the things that it's going to be very hard for you because the first one you get with Chicago Board of Trade wheat that sets the stage for you
82 +|81 |00:14:41,370 ~-~-> 00:14:52,290 |thinking that you can do this every week. And it doesn't work that way. Avoid trying to allow your account to grow exponentially. With these parabolic equity
83 +|82 |00:14:52,290 ~-~-> 00:15:04,710 |surges where you're getting 100 plus returns quickly. Try not to do that. because number one, you have to have the right market conditions, you have to
84 +|83 |00:15:04,710 ~-~-> 00:15:14,370 |have everything on point your entry, your stop your trade management, your exits, there are so many things that have to line up for you to deliver with
85 +|84 |00:15:14,400 ~-~-> 00:15:28,530 |Olympic level equity surges on a consistent basis. It's not realistic going into this. Now, it's going to eventually get to the point where you can see these
86 +|85 |00:15:28,530 ~-~-> 00:15:37,920 |things and predict them. But it won't be in the first few years, you're going to make the mistake in believing that you're better than you really are far before
87 +|86 |00:15:38,430 ~-~-> 00:15:50,550 |you really get on what it is you should be doing as a trader, reduce leverage when taking losses. Now, this is something that I can remember we did very
88 +|87 |00:15:50,550 ~-~-> 00:16:02,310 |poorly, when we would take losses, you would increase the amount of contracts trying to recapture and get more equity back in the account. Because we didn't
89 +|88 |00:16:02,310 ~-~-> 00:16:10,140 |like the way it felt when money was taken out. Not only did we not like the fact that we were wrong. But we didn't like the fact that we were wrong. And we were
90 +|89 |00:16:10,440 ~-~-> 00:16:24,090 |robbed of equity. And we personified that and needed someone or something that we're going to get revenge on. And that I can look back and say that that was
91 +|90 |00:16:24,180 ~-~-> 00:16:33,540 |90% of the biggest losses in the biggest and longest streaks of losing trades were linked to that very thing.
92 +|91 |00:16:36,090 ~-~-> 00:16:46,290 |If we would have just simply reduced the leverage. For instance, if we were trading 10 contracts of the Standard and Poor's futures contract, and we took a
93 +|92 |00:16:46,290 ~-~-> 00:17:00,510 |loss of 2%. The next trade should be five lots. And if we take a loss there, next trade should be to lots and keep reducing until you make 50% of the
94 +|93 |00:17:00,510 ~-~-> 00:17:12,120 |previous loss back, then you can go back up one scale in the money management and risk trade management. But if you don't do this, you're going to have a wild
95 +|94 |00:17:12,150 ~-~-> 00:17:22,650 |roller coaster equity swings and many accounts being dusted. If you don't do this, you're not going to build in plateaus and your equity, there's going to be
96 +|95 |00:17:22,650 ~-~-> 00:17:31,110 |a series of winning trades. And then what's going to eventually come that you don't like to admit, it's going to be a losing trade or two or three. And if you
97 +|96 |00:17:31,110 ~-~-> 00:17:40,350 |keep risking the same amount, your equity drawdown is going to be notable and horrendous if you don't control yourself. So you want to reduce the leverage
98 +|97 |00:17:40,380 ~-~-> 00:17:50,730 |after taking losses. Because then the inevitable is going to happen, you're gonna have a series of losses. But if you keep risking 2% 2% 2% 2%, it's going
99 +|98 |00:17:50,730 ~-~-> 00:18:07,830 |to have greater impact on the drawdown that you suffer. And it's much more work on your part to recapture that. Be patient will draw down recovery. Losing still
100 +|99 |00:18:07,830 ~-~-> 00:18:18,750 |sucks. When you get stopped out. It's not fun. But it's a business transaction, eventually, around late 20s, you're going to see it as just that, it still won't
101 +|100 |00:18:18,750 ~-~-> 00:18:26,790 |feel good. And you'll hate that you have them. But you'll come to grips with a little bit. But be patient with drawdown recovery. In other words, don't rush to
102 +|101 |00:18:26,790 ~-~-> 00:18:36,840 |get it back. If you have a day trade or two, that shows a net loss for the day, stop the next trading day, it's very easy to start building that back up and
103 +|102 |00:18:36,840 ~-~-> 00:18:47,790 |don't try to get it back in one trade. You have made so many errors, I can tell you right now, at least three dozen of them. And they were all in soybeans.
104 +|103 |00:18:48,540 ~-~-> 00:19:01,170 |Those trades ended up being parlayed into huge losses and to lost accounts. You killed two accounts. You don't see it yet. Oh, but it's coming, you will have
105 +|104 |00:19:01,200 ~-~-> 00:19:14,460 |blown two futures accounts trading the soybean market because you're trying to get back your losses. And you get caught in a couple limit moves. And you can't
106 +|105 |00:19:14,460 ~-~-> 00:19:27,780 |get out of those. And you end up suffering and blowing up the account. Because you are not being patient. You're not going to be patient and you suffer the
107 +|106 |00:19:27,780 ~-~-> 00:19:41,310 |drawdown. And the recovery of it is not only timeline basis. In other words, there's no deadline that you have to meet to get that money back. Immediate is
108 +|107 |00:19:41,310 ~-~-> 00:19:52,170 |what you feel like it has to be. But that's the trap. That's the trap. You have to avoid that. Michael, if you don't listen to me, you're going to find yourself
109 +|108 |00:19:52,470 ~-~-> 00:20:03,390 |chasing loss after loss after loss and you're not going to be thinking clearly you're going to get even more insanely rate enraged, okay, it's what it's going
110 +|109 |00:20:03,390 ~-~-> 00:20:14,010 |to become. Because you think that the brokers on the other side clicking buttons, just to get you. And I can tell you honestly, looking back, you were
111 +|110 |00:20:14,010 ~-~-> 00:20:28,440 |just doing it wrong and doing it wrong a lot. And very frequently pursuing something that is very easily accepted, take the loss, go home for the day, and
112 +|111 |00:20:28,440 ~-~-> 00:20:36,690 |see what happens tomorrow. If you don't do that, you're going to dust multiple accounts,
113 +|112 |00:20:44,370 ~-~-> 00:20:59,100 |managed to keep risk below 3% maximum. Avoid large risk for large wins. Now, when you first start trading, you're gonna read a couple things in commodity
114 +|113 |00:20:59,100 ~-~-> 00:21:09,600 |magazine. And it's gonna inspire you to trade with a little bit larger risk. And you're gonna pull out your calculator, and you're gonna be sitting at lunch
115 +|114 |00:21:09,600 ~-~-> 00:21:22,350 |while at work. And you're gonna think if I take my account, and I risk 810 12% per trade, I can do this or that, in the time of the end of the month, if I do
116 +|115 |00:21:22,350 ~-~-> 00:21:37,890 |that 12 months in a row, I'll be able to buy this or that. Don't do that. Avoid large risk, you're not going to be consistent in the beginning, you think you
117 +|116 |00:21:37,890 ~-~-> 00:21:45,450 |are because the books that you bought, are telling you that it's just simply just do this, do that. And when the indicator says this, that's when you buy him
118 +|117 |00:21:45,450 ~-~-> 00:21:57,810 |an indicator says this, you sell. And you're gonna find out very quickly that it doesn't work that way, it's not that easy. Expect to make velocity your edge.
119 +|118 |00:21:59,700 ~-~-> 00:22:13,650 |After spending almost 20 years doing this, I can tell you, everyone still thinks that having a large r multiple, okay, or risk reward model is the secret. And
120 +|119 |00:22:13,650 ~-~-> 00:22:25,080 |that's not the secret, the secret is velocity, doing something over and over and over again, that has an expected result that is high in probability and flipping
121 +|120 |00:22:25,080 ~-~-> 00:22:41,670 |the equity, that's velocity, you will in your mid 30s, discover how you can take the same account balance. And while other traders and other methodology may be
122 +|121 |00:22:41,670 ~-~-> 00:22:56,400 |focusing on trying to get 10 to one or more, you can do exceptionally well doing one to one two to one. Because you can use the lower timeframes that you don't
123 +|122 |00:22:56,400 ~-~-> 00:23:09,060 |appreciate right now. But they are the same market with dozens of setups per day. But you're not in a position when you first start, did start doing those
124 +|123 |00:23:09,060 ~-~-> 00:23:21,330 |types of trades. It's going to be a little bit of time before you understand that but velocity and turning over the equity without risking a lot. That beats
125 +|124 |00:23:21,450 ~-~-> 00:23:34,230 |every race, it beats every trading contest, it beats every thing, period, because you're using the rate of turnover in the equity, because you're taking
126 +|125 |00:23:34,260 ~-~-> 00:23:44,280 |more frequency. And you're looking at a result that is measurable. It's a repeating reoccurring pattern that forms every single day multiple times
127 +|126 |00:23:44,280 ~-~-> 00:23:56,430 |intraday. So it's not that you want to take a larger risk to make bigger money, you want to take surgical strikes, and parlay the account up using velocity.
128 +|127 |00:23:56,970 ~-~-> 00:24:09,330 |It's just the higher frequency trade of the same reoccurring pattern on a lower timeframe. And while other traders are waiting for their 10 to 121 30, to one,
129 +|128 |00:24:10,740 ~-~-> 00:24:20,910 |that money can only make whatever the maximum are multiple is going to be for it. But within those long or higher timeframe price swings, you're going to be
130 +|129 |00:24:20,910 ~-~-> 00:24:30,540 |in there, moving back and forth both directions, most of the money being allocated to the side of the marketplace, it's going to move in and still
131 +|130 |00:24:30,540 ~-~-> 00:24:41,880 |trading counter trend intraday with less than the risk that you're using when you're trading in sync with the market. And you will destroy the 10 to 121 31
132 +|131 |00:24:42,120 ~-~-> 00:24:51,330 |are multiple type trading models. It's simple math, but you're going to be distracted Michael, by all these books and all these things. They're going to
133 +|132 |00:24:51,780 ~-~-> 00:24:59,670 |draw your attention away from the simplest of things. Is it going to go up? Is it going to go down? How far is going to go up? How far is it going to go down?
134 +|133 |00:25:00,000 ~-~-> 00:25:10,860 |At what point is it incorrect, and I want to be out of the trade. Now, that same criteria just applied to a one minute or five minute chart, you can take that
135 +|134 |00:25:10,860 ~-~-> 00:25:24,870 |same equity and flip it over and over and over and over again. within the span of, say, a weekly range, it takes five candles to form. You may have 30 to 40
136 +|135 |00:25:24,870 ~-~-> 00:25:38,550 |trades for the course of the week, and they're all one minute setups. But if each one of those pay out 2% minimum, nothing's gonna keep up with that.
137 +|136 |00:25:41,160 ~-~-> 00:25:43,230 |Consider the negatives of forcing setups.
138 +|137 |00:25:45,570 ~-~-> 00:25:54,270 |Your impatience Michael in the beginning, because the first trade you put on, you lose 50% of your equity, and your trading options, and you didn't fully
139 +|138 |00:25:54,270 ~-~-> 00:26:04,500 |understand what you're doing. And option trading is not just simply being right on the marketplace, you have to beat the time decay as well. You'll learn about
140 +|139 |00:26:04,500 ~-~-> 00:26:13,080 |that later on with some pain. But consider the negatives of forcing the setups because you're going to try to force it, you're going to have a level that you
141 +|140 |00:26:13,080 ~-~-> 00:26:26,760 |want to be buying it but you are impatient, and you're going to try to buy it ahead of time. And that is a problem. Because you aren't very versed in proper
142 +|141 |00:26:26,760 ~-~-> 00:26:37,350 |stock placement in the beginning, Michael, you're going to have your stock too tight, because you don't want to risk a lot of money. But you are risking 5% on
143 +|142 |00:26:37,350 ~-~-> 00:26:47,880 |the trade. And that's too much, you're risking way too much. But you're forcing the entry, sooner then should be taken. And it is done at a time where you're
144 +|143 |00:26:47,880 ~-~-> 00:26:58,530 |using the maximum amount of leverage which strangles the trade because you had to have a very short, tight stop in a trade that you entered too soon, before
145 +|144 |00:26:58,530 ~-~-> 00:27:10,500 |the level you want to buy in. So when you're doing that, you're convincing yourself that you're going to be right, in ignoring all of the things that
146 +|145 |00:27:10,500 ~-~-> 00:27:21,930 |you're doing wrong, that is inviting failure. You have to consider the negatives of it. What is the impact of that? Number one, you're teaching yourself that not
147 +|146 |00:27:21,930 ~-~-> 00:27:34,770 |following the rules is okay. That trading ahead of the level before it's made a touch or a retest to it? That that's normal. That's something you should be
148 +|147 |00:27:34,770 ~-~-> 00:27:44,010 |doing when it doesn't fit within the model. If you've identified a level and you want to buy at that level, why are you buying before the levels hit? Because
149 +|148 |00:27:44,040 ~-~-> 00:27:50,580 |you're forcing the trade, you're impatient you want to get in because you're afraid that you're going to miss the move, it might not hit your level? Well,
150 +|149 |00:27:50,580 ~-~-> 00:28:09,120 |guess what? So what there's going to be 10s of 1000s of trades in your career, and you're not going to miss the big moneymaker. Because of not getting in
151 +|150 |00:28:09,150 ~-~-> 00:28:20,310 |early. Getting in early is always always I can tell you now looking back has always been an error. Always, it never works out in our favor. So don't do it.
152 +|151 |00:28:23,880 ~-~-> 00:28:35,820 |Taking partials is the best thing you will ever do. And I will say it again. Taking partials is the best thing that you're ever going to do, Michael, the
153 +|152 |00:28:35,820 ~-~-> 00:28:48,390 |biggest hurdle in your development is being comfortable with holding to trade. You're going to struggle with that. It's going to cause anxiety, you're going to
154 +|153 |00:28:48,390 ~-~-> 00:28:54,270 |have heart palpitations, you're going to have shortness of breath, you're going to feel like you're going to faint a couple times you're going to vomit a couple
155 +|154 |00:28:54,270 ~-~-> 00:29:06,270 |of times, because some of the trades that you're in in the s&p are huge. And this the smallest little tick is making you go nuts. wait around for it, it
156 +|155 |00:29:06,270 ~-~-> 00:29:21,360 |happens. But taking partials off, while the trade is developing. Number one, it feels good to take something off. It feels good. And it feels like you're doing
157 +|156 |00:29:21,360 ~-~-> 00:29:32,970 |something because even when you're in a trade, it's winning, you're going to find that it is like holding on to a motorcycle at 200 plus miles an hour. It's
158 +|157 |00:29:32,970 ~-~-> 00:29:44,010 |an incredible rush. But you also want to ride the end sometimes quickly. And when you get in a trade and it's moving in your favor. You want to get there
159 +|158 |00:29:44,070 ~-~-> 00:29:50,250 |quick. You wanted to get there and get you out of the trade and profit because you don't like the discomfort of not knowing if it's going to hit your target.
160 +|159 |00:29:51,150 ~-~-> 00:30:00,960 |So the way you're going to best deal with that and have the ability to hold on to the trade longer into fruition or to get stopped out Because that's part of
161 +|160 |00:30:00,960 ~-~-> 00:30:12,750 |the plan, too. You have to take something off. So if the trade moves 10 points in your favor, take 10 points off with something, even if it's one contract or
162 +|161 |00:30:12,750 ~-~-> 00:30:23,700 |one lot, take something off, it feels good. It's that cookie that reward. When it moves a little bit more, take something off again. And you're gonna find by
163 +|162 |00:30:23,700 ~-~-> 00:30:36,330 |doing that, it helps alleviate the pain and uncertainty of holding on to that trade until it gets to your profit objective. Taking partials reduces risk,
164 +|163 |00:30:36,390 ~-~-> 00:30:37,170 |while pain,
165 +|164 |00:30:39,750 ~-~-> 00:30:46,230 |you're going to worry in the beginning about getting stopped out all the time. And you're going to do a lot of acrobatics. With your your stop loss, you're
166 +|165 |00:30:46,230 ~-~-> 00:30:53,310 |going to move it back when you think it's dropping against you, or raise it up when it's rising back up towards your stop. And you're going to drive yourself
167 +|166 |00:30:53,310 ~-~-> 00:31:01,560 |crazy doing that you have to commit to whatever your stop is going to be based on sound money management and risk. And once the trade starts moving in your
168 +|167 |00:31:01,560 ~-~-> 00:31:11,910 |favor, take partials off. By doing that not only does it fund you as the trader, but it also reduces the risk. Because every time you take something off, you're
169 +|168 |00:31:11,910 ~-~-> 00:31:20,880 |reducing the exposure that your account in your in your mental capital will withstand. So you have to constantly manage not only the trade, but you have to
170 +|169 |00:31:20,880 ~-~-> 00:31:31,980 |manage the trader. And it's expectation, your expectation is you put the trade on because you want to be profitable. So what's the best thing that you can do
171 +|170 |00:31:32,010 ~-~-> 00:31:41,640 |as a trader, when the trades in profit, take something off, don't be fearful and don't allow greed to say, Oh, I have to hold on for everything. It's all or
172 +|171 |00:31:41,640 ~-~-> 00:31:48,930 |nothing. Because I'm going to tell you, Michael, when you do that, the first couple years, you're going to be in some trades. For instance, coffee, you're
173 +|172 |00:31:48,930 ~-~-> 00:32:01,740 |going to be holding on to a coffee trade, that's going to move a lot. It's going to move a lot. And $35,000 turns into an $8,000 loss, because you wanted to get
174 +|173 |00:32:01,740 ~-~-> 00:32:13,530 |your full target. You have to listen, you have to listen to this. If you don't do these things, Michael, you're going to regret it. Taking partials is the best
175 +|174 |00:32:13,530 ~-~-> 00:32:29,130 |thing you're ever going to do. And taking partials reduces risk while paying you ignore unprofitable traders advice on risk. If someone that you read, if someone
176 +|175 |00:32:29,130 ~-~-> 00:32:41,100 |that you listen to says anything against what's being said to you right here, I would put a million dollars on them not being a profitable trader. Chances are
177 +|176 |00:32:41,130 ~-~-> 00:32:54,120 |they have no idea what it is to be consistent, they probably had hit and miss type results. But consistent. Long term trading results come by way of funding
178 +|177 |00:32:54,300 ~-~-> 00:33:04,590 |the positions and funding the trader, or as we say it today, pay the trader. If you don't do those things, there's nothing guaranteed Michael that your trade is
179 +|178 |00:33:04,590 ~-~-> 00:33:16,320 |going to hit your target. There's absolutely nothing guaranteeing that and the volatility in today's world, which at the time of this recording, we've seen
180 +|179 |00:33:16,320 ~-~-> 00:33:29,190 |some pretty dramatic volatility and your trades, every time you put on one, there's no guarantee that you're going to hit your objective. So you have to get
181 +|180 |00:33:29,190 ~-~-> 00:33:39,750 |to the point where you trust yourself and you don't rely on other people's advice about risk because their advice about your risk is free to them. There's
182 +|181 |00:33:39,750 ~-~-> 00:33:52,080 |no exposure, and the advice they're giving you probably isn't sound. So stick to what I'm telling you here, commit to it and own it. Your losses are your losses,
183 +|182 |00:33:52,350 ~-~-> 00:33:57,150 |your wins are your wins. No one else can take credit for it. And you shouldn't try to share credit.
184 +|183 |00:34:05,700 ~-~-> 00:34:20,010 |Whether a series of consecutive losses. Taking losses is normal Michael, it doesn't feel good. It sucks. But unfortunately, there's simply no way around it.
185 +|184 |00:34:20,580 ~-~-> 00:34:30,750 |Every trader loses money. Every trader suffers drawdown professional traders manage how much and they understand they don't know how long it's gonna take
186 +|185 |00:34:30,750 ~-~-> 00:34:45,060 |before it turns to equity around in other words, the recovery you will lose fortunes. Expect the pain. The faster you can accept this Michael and warm up to
187 +|186 |00:34:45,060 ~-~-> 00:34:54,870 |the idea that imperfection is normal. It's absolutely normal. And there's going to be books that you're going to buy. It's going to sound like it's the best
188 +|187 |00:34:54,870 ~-~-> 00:35:03,240 |book in the world. You're going to buy courses and it's going to sound like you're going to get riches on told, this isn't a follow on to your account, all
189 +|188 |00:35:03,240 ~-~-> 00:35:14,220 |of that stuff is nonsense, you're going to lose money, and you're going to have losing streaks. And the amount of money if we could total all up and look back,
190 +|189 |00:35:14,460 ~-~-> 00:35:25,710 |it's enormous. But it didn't kill you. It didn't take you out of the game, it did not defeat you, it beats you up a couple times pretty bad, and your ego is
191 +|190 |00:35:25,710 ~-~-> 00:35:39,090 |bruised for? Well. Truth be told, I still feel a little pain from it. But you're going to have to accept the fact that losing streaks do occur. Now, it's been a
192 +|191 |00:35:39,090 ~-~-> 00:35:48,720 |long time since I had 10 losses in a row. But you're going to have those. And there's nothing wrong with it, because it helps you number one respect risk.
193 +|192 |00:35:49,290 ~-~-> 00:36:01,260 |Because no one is exempt from being wrong, I still get it wrong. And you're going to get it wrong a lot in the beginning, prepare for that. Multiple losses
194 +|193 |00:36:01,320 ~-~-> 00:36:12,450 |does not prove it is broken. Your trading method is not decided in terms of effectiveness. If you have a series of losing trades, a series of losing trades
195 +|194 |00:36:12,450 ~-~-> 00:36:22,440 |is something that every trading methodology will eventually will eventually plague every methodology. There's there is not one single trader that has not
196 +|195 |00:36:22,950 ~-~-> 00:36:32,820 |endured this, it's a normal thing. But when you experience it, and you have to endure it, it feels like it's only you right, Michael, but it's not just you.
197 +|196 |00:36:33,480 ~-~-> 00:36:42,180 |Truth is, everyone has it. But the problem is, the people online and the people you read about in their books aren't not really honest with you, they're going
198 +|197 |00:36:42,180 ~-~-> 00:36:50,340 |to tell you nothing about their losses, they're not going to say anything about losing money, they're only going to focus on the sweet sugary coated chapters of
199 +|198 |00:36:50,340 ~-~-> 00:37:03,090 |their books, that says this is what I got rich with, and you can to stick to the method and risk reduction. When you have your first string of losses, Michael,
200 +|199 |00:37:03,090 ~-~-> 00:37:11,130 |you're going to want to skip around and try something new. And that's the reason why you bought all those books because you were looking for the Holy Grail. And
201 +|200 |00:37:11,130 ~-~-> 00:37:20,160 |the problem with that is every time you went to a new system, it starts off with modest wins, and you fall in love with it, you think you figured it out, and
202 +|201 |00:37:20,160 ~-~-> 00:37:28,350 |then it goes into a tailspin. And you do things the same way that I've outlined in our discussion here. And you'll lose track of what you're doing, and lose
203 +|202 |00:37:28,350 ~-~-> 00:37:40,920 |control of yourself. And you enter into a series of losing trades. Your first impulse is to abandon that method and go to something else. And the problem with
204 +|203 |00:37:40,920 ~-~-> 00:37:52,770 |that is is you do this dozens of times. Now if I could grab you by the lapels and shake you again, it's simply this stop bouncing around, focus with one thing
205 +|204 |00:37:52,770 ~-~-> 00:38:01,740 |in mind, work with a higher timeframe bias, work off of one key level, work off of one market and stay on one side of the marketplace until proven obviously,
206 +|205 |00:38:01,740 ~-~-> 00:38:13,110 |that you're on the wrong side. If you manage your risk, don't force the trades and your patient, that alone can be profitable. But you have to stick with the
207 +|206 |00:38:13,110 ~-~-> 00:38:25,200 |method. And if you don't reduce the risk, when you take losses, you won't have the ability to stay with the method. The method, eventually it takes six years
208 +|207 |00:38:25,200 ~-~-> 00:38:35,640 |for you to figure it out. By the way, six years, you figure out exactly who you are as a trader. And it feels like a lifetime. It feels like you're never going
209 +|208 |00:38:35,640 ~-~-> 00:38:48,510 |to get it Michael, I know I know how it feels. And I wish I could go back and just tell you to your face. Suck it up. Just take it because everything changes
210 +|209 |00:38:48,540 ~-~-> 00:38:59,220 |in your sixth year, everything changes, it becomes easier, it becomes far less stressful to put the trade on you know exactly what you're looking for, you know
211 +|210 |00:38:59,220 ~-~-> 00:39:01,500 |where your stop should be, you had to manage to stop,
212 +|211 |00:39:01,680 ~-~-> 00:39:11,970 |you're not over leveraging your account. You're not forcing trades. You grow into yourself and the sixth year. But prior to that sixth year, you're like a
213 +|212 |00:39:11,970 ~-~-> 00:39:22,290 |wild cowboy in his gun slang, and you're not fearful of anything. You take on risks that's much larger than you should you trade more times than you should.
214 +|213 |00:39:22,500 ~-~-> 00:39:33,570 |And when you have severe drawdown, it doesn't bother you. And that's a problem. You weren't afraid to do anything. And you weren't afraid to get into the
215 +|214 |00:39:33,570 ~-~-> 00:39:45,750 |marketplace with huge leverage where one trade could wipe out the account. That's nonsense. And you don't need to do that to do well. But you have to stick
216 +|215 |00:39:45,750 ~-~-> 00:39:58,320 |to a method that's very consistent. That will have losses and you manage your risk. You will be correct more than you're incorrect. It doesn't feel like it
217 +|216 |00:39:58,320 ~-~-> 00:40:10,560 |now Michael, but you will be And the only way that happens is sticking to the method. sticking to the method, working from the macro down to the micro, and
218 +|217 |00:40:10,560 ~-~-> 00:40:20,940 |being willing to admit that you're wrong, and either taking the loss and going home for the day, or changing direction. And in the beginning, it's best if you
219 +|218 |00:40:20,940 ~-~-> 00:40:30,900 |just take my advice right now, Michael, and just get out of the marketplace and try not to do the reversal. Because we lose a lot of mind doing that too. Don't
220 +|219 |00:40:30,900 ~-~-> 00:40:39,570 |look for others to measure against. You're going to look at other people, other traders, other authors. And you're gonna try to say that you want to be like
221 +|220 |00:40:39,570 ~-~-> 00:40:56,760 |them. And everyone else should not be a measuring stick to you. Because to have that stunts, your growth, you're saying that, that person's accomplishments and
222 +|221 |00:40:56,790 ~-~-> 00:41:11,400 |accolades. You want them? Why? Focus on the ones that you're going to do yourself, the ones that you are going to achieve those successes and those
223 +|222 |00:41:11,400 ~-~-> 00:41:20,700 |failures, because they're stories that are going to be significant and meaningful to you. And should anyone sit down with you that has any interest in
224 +|223 |00:41:20,700 ~-~-> 00:41:32,640 |the marketplace. They're going to be very interested to hear what you have to say. You have so many adventures ahead of you, Michael. But so much of the pain
225 +|224 |00:41:33,030 ~-~-> 00:41:47,520 |that we endure, was 120% avoidable. So hopefully, you've taken my advice here. And we're going to work towards trying to eliminate some of the pain that we
226 +|225 |00:41:47,520 ~-~-> 00:41:58,320 |endure. I can tell you as an older man, I'd greatly appreciate it if you would. And those of you that were listening. I hope this was also very beneficial and
227 +|226 |00:41:58,320 ~-~-> 00:42:02,700 |profitable for your learning and development. Until next time, I wish you good luck and good trading.
4 4  
5 -2
6 -00:00:02,940 ~-~-> 00:00:04,500
7 -could go back and tell myself what I
8 -
9 -3
10 -00:00:04,500 ~-~-> 00:00:07,380
11 -know now series this is a hypothetical
12 -
13 -4
14 -00:00:07,380 ~-~-> 00:00:08,820
15 -conversation with my younger self.
16 -
17 -5
18 -00:00:13,680 ~-~-> 00:00:15,720
19 -Alright, so you're looking at all your
20 -
21 -6
22 -00:00:15,720 ~-~-> 00:00:17,550
23 -books and such Michael and you're
24 -
25 -7
26 -00:00:18,390 ~-~-> 00:00:21,030
27 -preparing your way to get to financial
28 -
29 -8
30 -00:00:21,030 ~-~-> 00:00:23,700
31 -freedom. And while you're practicing,
32 -
33 -9
34 -00:00:24,330 ~-~-> 00:00:25,740
35 -and the question is going to be is when
36 -
37 -10
38 -00:00:25,740 ~-~-> 00:00:28,920
39 -do you leave demo trading or at the time
40 -
41 -11
42 -00:00:29,640 ~-~-> 00:00:31,740
43 -when we first started, it was paper
44 -
45 -12
46 -00:00:31,740 ~-~-> 00:00:35,910
47 -trading. So when am I ready for live
48 -
49 -13
50 -00:00:35,910 ~-~-> 00:00:38,790
51 -funds? It begins with proof of concept.
52 -
53 -14
54 -00:00:39,630 ~-~-> 00:00:41,880
55 -proof of concept, you have to show a
56 -
57 -15
58 -00:00:41,910 ~-~-> 00:00:44,100
59 -minimum of six months consistency
60 -
61 -16
62 -00:00:46,200 ~-~-> 00:00:48,570
63 -managed to keep risk below 3% maximum
64 -
65 -17
66 -00:00:50,940 ~-~-> 00:00:52,530
67 -and emotionally whether strings of
68 -
69 -18
70 -00:00:52,530 ~-~-> 00:00:53,070
71 -losses
72 -
73 -19
74 -00:00:58,770 ~-~-> 00:01:02,640
75 -so went to live demo First and foremost,
76 -
77 -20
78 -00:01:03,090 ~-~-> 00:01:06,030
79 -you have to have proof of concept. And
80 -
81 -21
82 -00:01:06,030 ~-~-> 00:01:07,500
83 -you're gonna be doing a lot of things,
84 -
85 -22
86 -00:01:07,710 ~-~-> 00:01:10,050
87 -you mean buying a lot of books. And I
88 -
89 -23
90 -00:01:10,050 ~-~-> 00:01:11,970
91 -wish I could tell you to save all that
92 -
93 -24
94 -00:01:11,970 ~-~-> 00:01:14,610
95 -money. Because you're going to have over
96 -
97 -25
98 -00:01:14,610 ~-~-> 00:01:18,420
99 -2000 books and less than a dozen of them
100 -
101 -26
102 -00:01:18,480 ~-~-> 00:01:20,700
103 -were really worth the time reading. A
104 -
105 -27
106 -00:01:20,700 ~-~-> 00:01:21,900
107 -lot of it's going to be regurgitated
108 -
109 -28
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111 -things. So you want to focus on the
112 -
113 -29
114 -00:01:25,290 ~-~-> 00:01:26,880
115 -following things. If you do this,
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117 -30
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119 -Michael, you're going to be able to fast
120 -
121 -31
122 -00:01:28,410 ~-~-> 00:01:30,690
123 -track your way to get through a lot of
124 -
125 -32
126 -00:01:30,690 ~-~-> 00:01:32,130
127 -the hardships that you're that you will
128 -
129 -33
130 -00:01:32,130 ~-~-> 00:01:34,920
131 -unknowingly enter yourself into and
132 -
133 -34
134 -00:01:34,920 ~-~-> 00:01:36,870
135 -chase and pursue things that are going
136 -
137 -35
138 -00:01:36,870 ~-~-> 00:01:42,780
139 -to lead to more loss and confusion. The
140 -
141 -36
142 -00:01:42,780 ~-~-> 00:01:43,890
143 -first thing we're going to be focusing
144 -
145 -37
146 -00:01:43,890 ~-~-> 00:01:48,570
147 -on is seasonal tendencies. You want to
148 -
149 -38
150 -00:01:48,570 ~-~-> 00:01:51,420
151 -ignore the things that Jake Bernstein
152 -
153 -39
154 -00:01:51,420 ~-~-> 00:01:56,490
155 -talks about. The more research group
156 -
157 -40
158 -00:01:57,030 ~-~-> 00:02:00,000
159 -that puts out seasonal tendencies, this
160 -
161 -41
162 -00:02:00,000 ~-~-> 00:02:03,540
163 -person has the best seasonal tendencies
164 -
165 -42
166 -00:02:04,050 ~-~-> 00:02:07,860
167 -mrci.com is the website, you're going to
168 -
169 -43
170 -00:02:07,860 ~-~-> 00:02:10,470
171 -find that if you stick to that
172 -
173 -44
174 -00:02:10,470 ~-~-> 00:02:12,630
175 -gentleman's seasonal tendencies, they're
176 -
177 -45
178 -00:02:12,630 ~-~-> 00:02:14,250
179 -going to serve you exceptionally well.
180 -
181 -46
182 -00:02:17,730 ~-~-> 00:02:20,310
183 -Quarterly shifts, you're looking for
184 -
185 -47
186 -00:02:20,310 ~-~-> 00:02:22,920
187 -moves that move every three to four
188 -
189 -48
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191 -months. Now, the markets always have
192 -
193 -49
194 -00:02:25,290 ~-~-> 00:02:28,620
195 -some specific gyration. But focusing
196 -
197 -50
198 -00:02:28,620 ~-~-> 00:02:32,130
199 -primarily on the major moves that should
200 -
201 -51
202 -00:02:32,130 ~-~-> 00:02:34,410
203 -transpire over the next three to four
204 -
205 -52
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207 -months. If you focus there, you're going
208 -
209 -53
210 -00:02:37,020 ~-~-> 00:02:39,270
211 -to find a lot of these mega trades.
212 -
213 -54
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215 -Monthly bias. Try to formulate all of
216 -
217 -55
218 -00:02:47,370 ~-~-> 00:02:49,230
219 -the things that you're doing every
220 -
221 -56
222 -00:02:49,230 ~-~-> 00:02:52,590
223 -single day to get in sync with the
224 -
225 -57
226 -00:02:52,590 ~-~-> 00:02:54,990
227 -monthly bias. What is the monthly by
228 -
229 -58
230 -00:02:54,990 ~-~-> 00:02:56,700
231 -select way to do is it likely to trade
232 -
233 -59
234 -00:02:56,700 ~-~-> 00:02:58,470
235 -higher is it likely to trade lower
236 -
237 -60
238 -00:02:58,860 ~-~-> 00:03:01,320
239 -focusing within that Particular bias
240 -
241 -61
242 -00:03:01,560 ~-~-> 00:03:03,900
243 -within a specific quarterly shift within
244 -
245 -62
246 -00:03:03,900 ~-~-> 00:03:06,360
247 -a specific seasonal tendency is going to
248 -
249 -63
250 -00:03:06,360 ~-~-> 00:03:09,090
251 -give you the highest odds probability of
252 -
253 -64
254 -00:03:09,090 ~-~-> 00:03:11,640
255 -success than anything you're going to
256 -
257 -65
258 -00:03:11,640 ~-~-> 00:03:13,140
259 -read in any of the books that you buy.
260 -
261 -66
262 -00:03:13,920 ~-~-> 00:03:16,710
263 -So, if I could grab you and shake you by
264 -
265 -67
266 -00:03:16,710 ~-~-> 00:03:18,750
267 -the lapels, Michael, this is exactly
268 -
269 -68
270 -00:03:18,750 ~-~-> 00:03:20,340
271 -what I would stress to you, because
272 -
273 -69
274 -00:03:20,670 ~-~-> 00:03:24,660
275 -everything that you're doing prior to
276 -
277 -70
278 -00:03:24,660 ~-~-> 00:03:28,200
279 -identifying This is creating the
280 -
281 -71
282 -00:03:28,200 ~-~-> 00:03:30,750
283 -problem. All the frustrations, you're
284 -
285 -72
286 -00:03:30,750 ~-~-> 00:03:33,180
287 -feeling all the I want to know where
288 -
289 -73
290 -00:03:33,180 ~-~-> 00:03:35,400
291 -it's going next. This is the three
292 -
293 -74
294 -00:03:35,400 ~-~-> 00:03:37,560
295 -things that helps figure that out for
296 -
297 -75
298 -00:03:37,560 ~-~-> 00:03:39,780
299 -you. But it's gonna be years before you
300 -
301 -76
302 -00:03:39,780 ~-~-> 00:03:43,560
303 -discern that. But if I could convince
304 -
305 -77
306 -00:03:43,560 ~-~-> 00:03:44,970
307 -you right now, this is what I would tell
308 -
309 -78
310 -00:03:44,970 ~-~-> 00:03:47,070
311 -you to do. Focus on these top three
312 -
313 -79
314 -00:03:47,070 ~-~-> 00:03:51,570
315 -things. Once you have that determined,
316 -
317 -80
318 -00:03:52,170 ~-~-> 00:03:54,780
319 -then you can focus on a weekly profile.
320 -
321 -81
322 -00:03:55,200 ~-~-> 00:03:57,900
323 -Now if it's bullish, then you're
324 -
325 -82
326 -00:03:57,900 ~-~-> 00:04:00,000
327 -expected to have a weekly profile.
328 -
329 -83
330 -00:04:00,000 ~-~-> 00:04:03,510
331 -That's bullish at the time of recording,
332 -
333 -84
334 -00:04:04,110 ~-~-> 00:04:06,930
335 -your world renowned for knowing and
336 -
337 -85
338 -00:04:06,930 ~-~-> 00:04:09,090
339 -teaching how the weekly bias and weekly
340 -
341 -86
342 -00:04:09,090 ~-~-> 00:04:12,090
343 -range is typically formed with the
344 -
345 -87
346 -00:04:12,090 ~-~-> 00:04:15,840
347 -higher low form generally by Tuesday's
348 -
349 -88
350 -00:04:16,050 ~-~-> 00:04:21,690
351 -long and open if not by Wednesday. So if
352 -
353 -89
354 -00:04:21,690 ~-~-> 00:04:24,720
355 -you can focus on that seasonal tendency
356 -
357 -90
358 -00:04:24,720 ~-~-> 00:04:26,730
359 -that's bullish or bearish, and you're
360 -
361 -91
362 -00:04:26,730 ~-~-> 00:04:28,380
363 -looking for that quarterly shift that's
364 -
365 -92
366 -00:04:28,380 ~-~-> 00:04:30,210
367 -in align with that seasonal tendency.
368 -
369 -93
370 -00:04:31,230 ~-~-> 00:04:33,600
371 -And you have factored into what the
372 -
373 -94
374 -00:04:33,600 ~-~-> 00:04:36,000
375 -monthly bias should be in concert with
376 -
377 -95
378 -00:04:36,000 ~-~-> 00:04:39,840
379 -those two previous ideas. Your weekly
380 -
381 -96
382 -00:04:39,840 ~-~-> 00:04:43,680
383 -profile should be in alignment as well.
384 -
385 -97
386 -00:04:44,040 ~-~-> 00:04:46,590
387 -So you're not trying to go against the
388 -
389 -98
390 -00:04:46,590 ~-~-> 00:04:48,960
391 -underlying momentum, you're trying to
392 -
393 -99
394 -00:04:48,960 ~-~-> 00:04:50,550
395 -get in sync with the institutional order
396 -
397 -100
398 -00:04:50,550 ~-~-> 00:04:53,400
399 -flow. Once you identify the seasonal
400 -
401 -101
402 -00:04:53,400 ~-~-> 00:04:55,620
403 -tendency, and you're focusing on a
404 -
405 -102
406 -00:04:55,620 ~-~-> 00:04:57,930
407 -quarterly shift or a price swing that
408 -
409 -103
410 -00:04:57,990 ~-~-> 00:04:59,460
411 -should transpire over the next three to
412 -
413 -104
414 -00:04:59,460 ~-~-> 00:05:01,770
415 -four months. And your monthly bias is
416 -
417 -105
418 -00:05:01,770 ~-~-> 00:05:03,870
419 -determined to be bullish or bearish
420 -
421 -106
422 -00:05:03,870 ~-~-> 00:05:05,910
423 -relative to those seasonal tendencies
424 -
425 -107
426 -00:05:05,910 ~-~-> 00:05:08,280
427 -and next quarterly shift and you're
428 -
429 -108
430 -00:05:08,310 ~-~-> 00:05:10,620
431 -working with any weekly profile, it's
432 -
433 -109
434 -00:05:10,650 ~-~-> 00:05:12,690
435 -bullish or bearish relative to the idea
436 -
437 -110
438 -00:05:12,870 ~-~-> 00:05:14,850
439 -of that, what monthly bias and quarterly
440 -
441 -111
442 -00:05:14,850 ~-~-> 00:05:17,400
443 -shift and seasonal tendency, the daily
444 -
445 -112
446 -00:05:17,400 ~-~-> 00:05:19,680
447 -template. That means what type of day
448 -
449 -113
450 -00:05:19,680 ~-~-> 00:05:21,210
451 -are we going to have? Did we just come
452 -
453 -114
454 -00:05:21,210 ~-~-> 00:05:24,600
455 -off of a big range day, or a series of
456 -
457 -115
458 -00:05:24,600 ~-~-> 00:05:25,920
459 -big range days because we're probably
460 -
461 -116
462 -00:05:25,920 ~-~-> 00:05:27,630
463 -going to contract and go into small
464 -
465 -117
466 -00:05:27,630 ~-~-> 00:05:29,430
467 -ranges. But if we do go into a small
468 -
469 -118
470 -00:05:29,430 ~-~-> 00:05:30,840
471 -range, it's going to be a short term
472 -
473 -119
474 -00:05:31,710 ~-~-> 00:05:33,480
475 -event that should lead to a large
476 -
477 -120
478 -00:05:33,480 ~-~-> 00:05:34,740
479 -expansion in the direction of the
480 -
481 -121
482 -00:05:34,740 ~-~-> 00:05:37,050
483 -monthly bias in expectation is a
484 -
485 -122
486 -00:05:37,050 ~-~-> 00:05:38,520
487 -quarterly shift that you're looking for
488 -
489 -123
490 -00:05:38,550 ~-~-> 00:05:40,560
491 -and within alignment of the seasonal
492 -
493 -124
494 -00:05:40,560 ~-~-> 00:05:42,270
495 -tendency. The Daily template is
496 -
497 -125
498 -00:05:42,270 ~-~-> 00:05:44,490
499 -basically your power three concept where
500 -
501 -126
502 -00:05:44,490 ~-~-> 00:05:47,760
503 -it's the open, high, low and close
504 -
505 -127
506 -00:05:47,790 ~-~-> 00:05:50,730
507 -formation of the daily bar. You're
508 -
509 -128
510 -00:05:50,730 ~-~-> 00:05:53,970
511 -looking for accumulation, manipulation
512 -
513 -129
514 -00:05:54,570 ~-~-> 00:05:55,440
515 -and distribution.
516 -
517 -130
518 -00:05:59,460 ~-~-> 00:06:02,400
519 -You want us spend a lot of time studying
520 -
521 -131
522 -00:06:02,400 ~-~-> 00:06:06,540
523 -time of day. Long and open has specific
524 -
525 -132
526 -00:06:06,540 ~-~-> 00:06:08,100
527 -characteristics that generally make the
528 -
529 -133
530 -00:06:08,100 ~-~-> 00:06:09,960
531 -higher low of the day. Not all the time.
532 -
533 -134
534 -00:06:09,990 ~-~-> 00:06:12,810
535 -But most of the time. New York is a
536 -
537 -135
538 -00:06:12,810 ~-~-> 00:06:14,970
539 -continuation of whatever has transpired
540 -
541 -136
542 -00:06:14,970 ~-~-> 00:06:17,160
543 -in London. Unless you've reached a
544 -
545 -137
546 -00:06:17,160 ~-~-> 00:06:19,650
547 -higher timeframe level or key level that
548 -
549 -138
550 -00:06:19,650 ~-~-> 00:06:22,320
551 -may introduce a new york session market
552 -
553 -139
554 -00:06:22,320 ~-~-> 00:06:24,810
555 -reversal profile. London closes
556 -
557 -140
558 -00:06:24,810 ~-~-> 00:06:27,780
559 -typically the opposite end of the daily
560 -
561 -141
562 -00:06:27,780 ~-~-> 00:06:31,140
563 -range, or will be opposing the higher
564 -
565 -142
566 -00:06:31,140 ~-~-> 00:06:35,040
567 -low formed in London open. Focusing on a
568 -
569 -143
570 -00:06:35,040 ~-~-> 00:06:39,060
571 -time of day, within all these specific
572 -
573 -144
574 -00:06:39,090 ~-~-> 00:06:42,030
575 -studies are going to put you in the
576 -
577 -145
578 -00:06:42,030 ~-~-> 00:06:46,080
579 -highest order of probability doesn't
580 -
581 -146
582 -00:06:46,080 ~-~-> 00:06:47,820
583 -mean you're going to not take losses you
584 -
585 -147
586 -00:06:47,820 ~-~-> 00:06:50,790
587 -will. But sticking to this in this
588 -
589 -148
590 -00:06:50,790 ~-~-> 00:06:53,670
591 -protocol is going to lead to the longest
592 -
593 -149
594 -00:06:53,670 ~-~-> 00:06:55,830
595 -stretch of consistency and continuity in
596 -
597 -150
598 -00:06:55,830 ~-~-> 00:06:57,840
599 -your trading and you're ever going to
600 -
601 -151
602 -00:06:57,840 ~-~-> 00:06:59,130
603 -find doing anything else.
604 -
605 -152
606 -00:07:06,870 ~-~-> 00:07:12,990
607 -Minimum six months consistency. Now, I
608 -
609 -153
610 -00:07:12,990 ~-~-> 00:07:15,630
611 -understand you're excited. And you see
612 -
613 -154
614 -00:07:15,630 ~-~-> 00:07:16,740
615 -there's a lot of things ahead of you,
616 -
617 -155
618 -00:07:16,740 ~-~-> 00:07:19,560
619 -Michael. And you've made that plan of
620 -
621 -156
622 -00:07:19,560 ~-~-> 00:07:23,070
623 -retiring at 40. And newsflash, you get
624 -
625 -157
626 -00:07:23,070 ~-~-> 00:07:27,210
627 -there. But try not to rush profits.
628 -
629 -158
630 -00:07:27,600 ~-~-> 00:07:29,850
631 -There's going to be a transition. You
632 -
633 -159
634 -00:07:29,850 ~-~-> 00:07:32,010
635 -don't know when it's going to occur. But
636 -
637 -160
638 -00:07:32,010 ~-~-> 00:07:34,290
639 -it is when you start trading the bond
640 -
641 -161
642 -00:07:34,290 ~-~-> 00:07:36,810
643 -market. The bond market starts serving
644 -
645 -162
646 -00:07:36,810 ~-~-> 00:07:39,150
647 -you very well. And then you discover
648 -
649 -163
650 -00:07:39,330 ~-~-> 00:07:41,580
651 -that you can do far more per week than
652 -
653 -164
654 -00:07:41,580 ~-~-> 00:07:43,920
655 -you could with just one lot by using
656 -
657 -165
658 -00:07:44,190 ~-~-> 00:07:48,330
659 -more money management. And the
660 -
661 -166
662 -00:07:48,330 ~-~-> 00:07:52,230
663 -enticement is going to be get there
664 -
665 -167
666 -00:07:52,230 ~-~-> 00:07:54,780
667 -quicker, get there quicker, and you
668 -
669 -168
670 -00:07:54,780 ~-~-> 00:07:59,640
671 -discover the power of compound interest,
672 -
673 -169
674 -00:07:59,640 ~-~-> 00:08:03,330
675 -but Don't, at that time, understand the
676 -
677 -170
678 -00:08:05,010 ~-~-> 00:08:07,560
679 -depths that it can take you down with.
680 -
681 -171
682 -00:08:07,680 ~-~-> 00:08:09,960
683 -It's very powerful, but it's a double
684 -
685 -172
686 -00:08:09,960 ~-~-> 00:08:14,490
687 -edged sword. So if I could change your
688 -
689 -173
690 -00:08:14,490 ~-~-> 00:08:16,230
691 -mind about something speaking to you
692 -
693 -174
694 -00:08:16,230 ~-~-> 00:08:21,450
695 -now, you should do your best to try not
696 -
697 -175
698 -00:08:21,450 ~-~-> 00:08:24,390
699 -to be profitable or rush profits. And
700 -
701 -176
702 -00:08:24,390 ~-~-> 00:08:26,760
703 -what I mean by that, taking more trades
704 -
705 -177
706 -00:08:26,760 ~-~-> 00:08:29,010
707 -than necessary. In other words, your
708 -
709 -178
710 -00:08:29,010 ~-~-> 00:08:30,510
711 -trade frequency, Michael, when you first
712 -
713 -179
714 -00:08:30,510 ~-~-> 00:08:33,090
715 -start is going to be horrendous. There's
716 -
717 -180
718 -00:08:33,090 ~-~-> 00:08:34,620
719 -going to be days where you actually have
720 -
721 -181
722 -00:08:34,620 ~-~-> 00:08:39,540
723 -taken 30 entries. And none of them are
724 -
725 -182
726 -00:08:39,540 ~-~-> 00:08:41,670
727 -profitable. Because you're going back
728 -
729 -183
730 -00:08:41,670 ~-~-> 00:08:43,920
731 -and forth, back and forth, thinking
732 -
733 -184
734 -00:08:43,920 ~-~-> 00:08:45,870
735 -you're going to get the right direction,
736 -
737 -185
738 -00:08:45,870 ~-~-> 00:08:48,270
739 -right? And it's not going to work out
740 -
741 -186
742 -00:08:48,270 ~-~-> 00:08:50,580
743 -for you. This is the reason why you have
744 -
745 -187
746 -00:08:50,580 ~-~-> 00:08:52,920
747 -to work with the previous information or
748 -
749 -188
750 -00:08:52,920 ~-~-> 00:08:54,810
751 -you work from a macro perspective down.
752 -
753 -189
754 -00:08:55,200 ~-~-> 00:08:57,870
755 -If you do that. You will also be more
756 -
757 -190
758 -00:08:57,870 ~-~-> 00:09:00,600
759 -controlled over your decision. Making
760 -
761 -191
762 -00:09:01,350 ~-~-> 00:09:02,760
763 -and you won't be in a rush to make
764 -
765 -192
766 -00:09:02,760 ~-~-> 00:09:05,220
767 -profits. rushing to profit is the
768 -
769 -193
770 -00:09:05,220 ~-~-> 00:09:08,520
771 -surest, fastest way to lose money. It
772 -
773 -194
774 -00:09:08,520 ~-~-> 00:09:10,320
775 -doesn't feel like it, especially when
776 -
777 -195
778 -00:09:10,320 ~-~-> 00:09:11,490
779 -you're buying all these books because
780 -
781 -196
782 -00:09:11,490 ~-~-> 00:09:13,470
783 -all these books are sugarcoating
784 -
785 -197
786 -00:09:13,500 ~-~-> 00:09:15,690
787 -everything. They're over simplifying
788 -
789 -198
790 -00:09:15,720 ~-~-> 00:09:17,580
791 -everything and giving you a false sense
792 -
793 -199
794 -00:09:17,580 ~-~-> 00:09:19,410
795 -of security because of these indicators.
796 -
797 -200
798 -00:09:19,920 ~-~-> 00:09:21,990
799 -And the indicators are not the secret.
800 -
801 -201
802 -00:09:22,470 ~-~-> 00:09:24,180
803 -Those indicators are just the red
804 -
805 -202
806 -00:09:24,180 ~-~-> 00:09:26,070
807 -herring and the gimmick that that books
808 -
809 -203
810 -00:09:26,100 ~-~-> 00:09:30,780
811 -using to sell. Keep them on the return
812 -
813 -204
814 -00:09:30,810 ~-~-> 00:09:32,880
815 -as the focus. Now you're going to be
816 -
817 -205
818 -00:09:32,880 ~-~-> 00:09:36,870
819 -trading starting with commodities, and
820 -
821 -206
822 -00:09:36,900 ~-~-> 00:09:38,670
823 -you're focusing on the dollar amount,
824 -
825 -207
826 -00:09:38,670 ~-~-> 00:09:40,470
827 -how much can I make today? How much
828 -
829 -208
830 -00:09:40,470 ~-~-> 00:09:43,950
831 -money can I make this week? And as soon
832 -
833 -209
834 -00:09:43,950 ~-~-> 00:09:46,230
835 -as you take that first loss for the
836 -
837 -210
838 -00:09:46,230 ~-~-> 00:09:49,230
839 -month, this is when you go into a
840 -
841 -211
842 -00:09:49,230 ~-~-> 00:09:51,750
843 -tailspin because you're in a hurry to
844 -
845 -212
846 -00:09:51,750 ~-~-> 00:09:53,520
847 -get that back. You don't like taking
848 -
849 -213
850 -00:09:53,520 ~-~-> 00:09:55,710
851 -losses and I want you to understand
852 -
853 -214
854 -00:09:55,710 ~-~-> 00:10:00,750
855 -something 27 years from now You're going
856 -
857 -215
858 -00:10:00,750 ~-~-> 00:10:02,790
859 -to be able to look back and count up an
860 -
861 -216
862 -00:10:02,790 ~-~-> 00:10:05,220
863 -enormous amount of money that if you
864 -
865 -217
866 -00:10:05,220 ~-~-> 00:10:07,590
867 -collectively add it all up, all of your
868 -
869 -218
870 -00:10:07,590 ~-~-> 00:10:11,070
871 -losses are enormous. And there is
872 -
873 -219
874 -00:10:11,070 ~-~-> 00:10:13,950
875 -nothing wrong with that, because every
876 -
877 -220
878 -00:10:13,950 ~-~-> 00:10:16,740
879 -trader loses. But you got to keep the
880 -
881 -221
882 -00:10:16,740 ~-~-> 00:10:18,990
883 -focus on the monthly return. It doesn't
884 -
885 -222
886 -00:10:18,990 ~-~-> 00:10:20,820
887 -make a difference if you have three
888 -
889 -223
890 -00:10:20,820 ~-~-> 00:10:24,150
891 -losing trading days out of the week, or
892 -
893 -224
894 -00:10:24,270 ~-~-> 00:10:27,360
895 -you had no winning positive days for the
896 -
897 -225
898 -00:10:27,360 ~-~-> 00:10:29,310
899 -week, but you come out ahead on a
900 -
901 -226
902 -00:10:29,310 ~-~-> 00:10:31,770
903 -monthly if your monthly return is
904 -
905 -227
906 -00:10:31,770 ~-~-> 00:10:35,640
907 -consistently higher than 1%. You're
908 -
909 -228
910 -00:10:35,640 ~-~-> 00:10:37,890
911 -doing exceptionally well. It doesn't
912 -
913 -229
914 -00:10:37,890 ~-~-> 00:10:40,410
915 -feel like it. It doesn't sound like it.
916 -
917 -230
918 -00:10:40,500 ~-~-> 00:10:43,080
919 -You think that everyone that super elite
920 -
921 -231
922 -00:10:43,230 ~-~-> 00:10:46,350
923 -is doing 500% per month because that's
924 -
925 -232
926 -00:10:46,350 ~-~-> 00:10:48,090
927 -the impression that these books that
928 -
929 -233
930 -00:10:48,090 ~-~-> 00:10:49,470
931 -you're buying and wasting money on
932 -
933 -234
934 -00:10:49,470 ~-~-> 00:10:52,140
935 -Michael are giving you. They don't do
936 -
937 -235
938 -00:10:52,140 ~-~-> 00:10:54,210
939 -that. They aren't making those types of
940 -
941 -236
942 -00:10:54,210 ~-~-> 00:10:56,280
943 -returns. And you want to be able to
944 -
945 -237
946 -00:10:56,280 ~-~-> 00:10:59,250
947 -focus primarily on what you've done over
948 -
949 -238
950 -00:10:59,250 ~-~-> 00:11:02,040
951 -the course of Four weeks or so. And that
952 -
953 -239
954 -00:11:02,040 ~-~-> 00:11:05,340
955 -result in that return is your goal.
956 -
957 -240
958 -00:11:05,700 ~-~-> 00:11:07,290
959 -You're not trying to get an everyday
960 -
961 -241
962 -00:11:07,290 ~-~-> 00:11:08,820
963 -percentage, you're not trying to get an
964 -
965 -242
966 -00:11:08,820 ~-~-> 00:11:10,890
967 -every week percentage. You're looking at
968 -
969 -243
970 -00:11:10,890 ~-~-> 00:11:14,190
971 -how you close each month, and this month
972 -
973 -244
974 -00:11:14,220 ~-~-> 00:11:15,930
975 -positive because if it's positive,
976 -
977 -245
978 -00:11:16,860 ~-~-> 00:11:18,300
979 -that's better than a loss. If you
980 -
981 -246
982 -00:11:18,300 ~-~-> 00:11:19,800
983 -continuously do that you're going in the
984 -
985 -247
986 -00:11:19,800 ~-~-> 00:11:22,080
987 -right direction. But trying not to rush
988 -
989 -248
990 -00:11:22,080 ~-~-> 00:11:24,270
991 -profits and try not to look beyond the
992 -
993 -249
994 -00:11:24,270 ~-~-> 00:11:26,190
995 -scope of what your monthly return is.
996 -
997 -250
998 -00:11:28,860 ~-~-> 00:11:33,330
999 -Invite the possibility of being wrong. I
1000 -
1001 -251
1002 -00:11:33,330 ~-~-> 00:11:35,910
1003 -understand obsessive compulsive
1004 -
1005 -252
1006 -00:11:35,910 ~-~-> 00:11:37,920
1007 -disorder. We struggle with it and we
1008 -
1009 -253
1010 -00:11:37,920 ~-~-> 00:11:41,220
1011 -still struggle with it in our 40s but I
1012 -
1013 -254
1014 -00:11:41,220 ~-~-> 00:11:42,270
1015 -want you to understand something
1016 -
1017 -255
1018 -00:11:42,270 ~-~-> 00:11:42,660
1019 -Michael,
1020 -
1021 -256
1022 -00:11:44,130 ~-~-> 00:11:46,230
1023 -you are not going to be right 100% of
1024 -
1025 -257
1026 -00:11:46,230 ~-~-> 00:11:48,690
1027 -the time and early on the first couple
1028 -
1029 -258
1030 -00:11:48,690 ~-~-> 00:11:51,510
1031 -years. You're spending time trying to
1032 -
1033 -259
1034 -00:11:51,660 ~-~-> 00:11:55,320
1035 -perfect and eliminate the possibility of
1036 -
1037 -260
1038 -00:11:55,320 ~-~-> 00:11:58,320
1039 -you being wrong. And it's a farce don't
1040 -
1041 -261
1042 -00:11:58,320 ~-~-> 00:12:00,000
1043 -do that you're going to waste time doing
1044 -
1045 -262
1046 -00:12:00,000 ~-~-> 00:12:02,340
1047 -That there is no perfect person, there
1048 -
1049 -263
1050 -00:12:02,340 ~-~-> 00:12:05,070
1051 -is no perfect trader. And you still,
1052 -
1053 -264
1054 -00:12:05,340 ~-~-> 00:12:07,080
1055 -with almost three decades of experience,
1056 -
1057 -265
1058 -00:12:07,080 ~-~-> 00:12:09,630
1059 -I'm speaking to you now, you are still
1060 -
1061 -266
1062 -00:12:09,630 ~-~-> 00:12:12,150
1063 -not perfect, your exits aren't perfect,
1064 -
1065 -267
1066 -00:12:12,180 ~-~-> 00:12:13,710
1067 -your entries aren't perfect all the
1068 -
1069 -268
1070 -00:12:13,710 ~-~-> 00:12:16,710
1071 -time. Perfection is still going to evade
1072 -
1073 -269
1074 -00:12:16,710 ~-~-> 00:12:19,740
1075 -you, but you do not need perfection when
1076 -
1077 -270
1078 -00:12:19,740 ~-~-> 00:12:22,800
1079 -you're wrong. Many times that's going to
1080 -
1081 -271
1082 -00:12:22,800 ~-~-> 00:12:25,170
1083 -lead to a more profitable trade or
1084 -
1085 -272
1086 -00:12:25,740 ~-~-> 00:12:26,880
1087 -identifying that you're wrong and
1088 -
1089 -273
1090 -00:12:26,880 ~-~-> 00:12:28,260
1091 -getting out and staying on the sidelines
1092 -
1093 -274
1094 -00:12:28,260 ~-~-> 00:12:31,800
1095 -preserves your capital. by preserving
1096 -
1097 -275
1098 -00:12:31,800 ~-~-> 00:12:34,230
1099 -your capital, you don't go into spending
1100 -
1101 -276
1102 -00:12:34,950 ~-~-> 00:12:37,140
1103 -your mental capital in the mental
1104 -
1105 -277
1106 -00:12:37,140 ~-~-> 00:12:38,910
1107 -capital is how much money you're really
1108 -
1109 -278
1110 -00:12:38,910 ~-~-> 00:12:41,880
1111 -willing to lose. You may have $20,000 in
1112 -
1113 -279
1114 -00:12:41,880 ~-~-> 00:12:43,590
1115 -that trading account, but you're really
1116 -
1117 -280
1118 -00:12:43,590 ~-~-> 00:12:46,110
1119 -not comfortable if you lost 5000 of it.
1120 -
1121 -281
1122 -00:12:46,440 ~-~-> 00:12:47,760
1123 -So what are you really trading with
1124 -
1125 -282
1126 -00:12:48,570 ~-~-> 00:12:52,140
1127 -$5,000 but the $20,000 is just lipstick.
1128 -
1129 -283
1130 -00:12:52,410 ~-~-> 00:12:55,170
1131 -The extra 15,000 is padding you hope you
1132 -
1133 -284
1134 -00:12:55,170 ~-~-> 00:12:57,660
1135 -never go into and as soon as you do,
1136 -
1137 -285
1138 -00:12:58,320 ~-~-> 00:13:00,000
1139 -everything gets abandoned the trailer
1140 -
1141 -286
1142 -00:13:00,000 ~-~-> 00:13:02,700
1143 -Plan, methodology. All of that goes up
1144 -
1145 -287
1146 -00:13:02,700 ~-~-> 00:13:04,590
1147 -door risk management, trade management,
1148 -
1149 -288
1150 -00:13:04,950 ~-~-> 00:13:07,350
1151 -all of it tossed out because now you're
1152 -
1153 -289
1154 -00:13:07,350 ~-~-> 00:13:10,170
1155 -emotional, and you can't act that way.
1156 -
1157 -290
1158 -00:13:11,760 ~-~-> 00:13:13,530
1159 -Invite the possibility of being wrong,
1160 -
1161 -291
1162 -00:13:13,590 ~-~-> 00:13:16,710
1163 -identify the characteristics that leads
1164 -
1165 -292
1166 -00:13:16,710 ~-~-> 00:13:20,040
1167 -to your trade idea being wrong, identify
1168 -
1169 -293
1170 -00:13:20,040 ~-~-> 00:13:22,110
1171 -it before you even put the trade on. So
1172 -
1173 -294
1174 -00:13:22,110 ~-~-> 00:13:25,350
1175 -in other words, what negates the idea
1176 -
1177 -295
1178 -00:13:25,740 ~-~-> 00:13:29,160
1179 -what makes it most likely to fail. If
1180 -
1181 -296
1182 -00:13:29,160 ~-~-> 00:13:31,350
1183 -those trades show signatures of that
1184 -
1185 -297
1186 -00:13:31,380 ~-~-> 00:13:34,470
1187 -occurring, do not hesitate to simply
1188 -
1189 -298
1190 -00:13:34,470 ~-~-> 00:13:36,660
1191 -close the trade, preserve capital. If
1192 -
1193 -299
1194 -00:13:36,660 ~-~-> 00:13:40,050
1195 -you do that, you will be on a fast track
1196 -
1197 -300
1198 -00:13:40,050 ~-~-> 00:13:44,070
1199 -to preserving your mental capacity, your
1200 -
1201 -301
1202 -00:13:44,490 ~-~-> 00:13:47,010
1203 -willingness to stay studying, even
1204 -
1205 -302
1206 -00:13:47,010 ~-~-> 00:13:49,380
1207 -though you're not taking trades. If you
1208 -
1209 -303
1210 -00:13:49,380 ~-~-> 00:13:50,880
1211 -don't do this, you're going to find
1212 -
1213 -304
1214 -00:13:50,880 ~-~-> 00:13:53,760
1215 -yourself going into the longest tailspin
1216 -
1217 -305
1218 -00:13:53,760 ~-~-> 00:13:57,300
1219 -in terms of pursuing something that is
1220 -
1221 -306
1222 -00:13:57,300 ~-~-> 00:13:59,760
1223 -eluding you because you're causing it.
1224 -
1225 -307
1226 -00:14:00,540 ~-~-> 00:14:02,910
1227 -You're trying to be perfect. And it
1228 -
1229 -308
1230 -00:14:02,910 ~-~-> 00:14:04,920
1231 -won't exist, it won't, it won't happen,
1232 -
1233 -309
1234 -00:14:04,920 ~-~-> 00:14:07,260
1235 -you're not going to be there that will
1236 -
1237 -310
1238 -00:14:07,260 ~-~-> 00:14:12,270
1239 -always evade. Avoid chasing parabolic
1240 -
1241 -311
1242 -00:14:12,270 ~-~-> 00:14:18,180
1243 -equity searches. I can recall many of
1244 -
1245 -312
1246 -00:14:18,180 ~-~-> 00:14:21,630
1247 -the things that we did. And there's some
1248 -
1249 -313
1250 -00:14:21,630 ~-~-> 00:14:24,870
1251 -of those instances where it worked out
1252 -
1253 -314
1254 -00:14:24,870 ~-~-> 00:14:28,230
1255 -in our favor. But most of the time, it
1256 -
1257 -315
1258 -00:14:28,230 ~-~-> 00:14:32,370
1259 -didn't. So, avoiding parabolic equity
1260 -
1261 -316
1262 -00:14:32,370 ~-~-> 00:14:34,680
1263 -surges is one of the things that it's
1264 -
1265 -317
1266 -00:14:34,680 ~-~-> 00:14:35,730
1267 -going to be very hard for you because
1268 -
1269 -318
1270 -00:14:35,730 ~-~-> 00:14:37,830
1271 -the first one you get with Chicago Board
1272 -
1273 -319
1274 -00:14:37,830 ~-~-> 00:14:41,370
1275 -trade wheat, that sets the stage for you
1276 -
1277 -320
1278 -00:14:41,370 ~-~-> 00:14:43,350
1279 -thinking that you can do this every
1280 -
1281 -321
1282 -00:14:43,350 ~-~-> 00:14:45,360
1283 -week. And it doesn't work that way.
1284 -
1285 -322
1286 -00:14:45,810 ~-~-> 00:14:48,930
1287 -Avoid trying to allow your account to
1288 -
1289 -323
1290 -00:14:48,960 ~-~-> 00:14:51,930
1291 -grow exponentially with these parabolic
1292 -
1293 -324
1294 -00:14:51,930 ~-~-> 00:14:54,060
1295 -equity surges where you're getting
1296 -
1297 -325
1298 -00:14:54,870 ~-~-> 00:14:59,190
1299 -hundred plus returns quickly. Try not to
1300 -
1301 -326
1302 -00:14:59,190 ~-~-> 00:15:02,670
1303 -do that. Number one, you have to have
1304 -
1305 -327
1306 -00:15:02,670 ~-~-> 00:15:04,710
1307 -the right market conditions. You have to
1308 -
1309 -328
1310 -00:15:04,710 ~-~-> 00:15:07,050
1311 -have everything on point your entry,
1312 -
1313 -329
1314 -00:15:07,050 ~-~-> 00:15:08,880
1315 -your stop your trade management, your
1316 -
1317 -330
1318 -00:15:08,880 ~-~-> 00:15:12,180
1319 -exits, there are so many things that
1320 -
1321 -331
1322 -00:15:12,180 ~-~-> 00:15:14,370
1323 -have to line up for you to deliver with
1324 -
1325 -332
1326 -00:15:14,400 ~-~-> 00:15:17,700
1327 -Olympic level equity surges on a
1328 -
1329 -333
1330 -00:15:17,700 ~-~-> 00:15:21,870
1331 -consistent basis. It's not realistic
1332 -
1333 -334
1334 -00:15:22,230 ~-~-> 00:15:26,430
1335 -going into this. Now. It's going to
1336 -
1337 -335
1338 -00:15:26,430 ~-~-> 00:15:27,810
1339 -eventually get to the point where you
1340 -
1341 -336
1342 -00:15:27,810 ~-~-> 00:15:29,850
1343 -can see these things and predict them.
1344 -
1345 -337
1346 -00:15:30,060 ~-~-> 00:15:32,400
1347 -But it won't be in the first few years.
1348 -
1349 -338
1350 -00:15:33,450 ~-~-> 00:15:34,860
1351 -You're going to make the mistake in
1352 -
1353 -339
1354 -00:15:34,860 ~-~-> 00:15:35,940
1355 -believing that you're better than you
1356 -
1357 -340
1358 -00:15:35,940 ~-~-> 00:15:40,020
1359 -really are far before you really get on
1360 -
1361 -341
1362 -00:15:40,020 ~-~-> 00:15:41,220
1363 -what it is you should be doing as a
1364 -
1365 -342
1366 -00:15:41,220 ~-~-> 00:15:45,810
1367 -trader. Reduce leverage when taking
1368 -
1369 -343
1370 -00:15:45,810 ~-~-> 00:15:48,960
1371 -losses. Now this is something that I can
1372 -
1373 -344
1374 -00:15:48,960 ~-~-> 00:15:51,810
1375 -remember we did very poorly, when we
1376 -
1377 -345
1378 -00:15:51,810 ~-~-> 00:15:55,860
1379 -would take losses. You would increase
1380 -
1381 -346
1382 -00:15:56,490 ~-~-> 00:15:58,260
1383 -the amount of contracts trying to
1384 -
1385 -347
1386 -00:15:58,260 ~-~-> 00:16:00,420
1387 -recapture and get more equity. Back in
1388 -
1389 -348
1390 -00:16:00,420 ~-~-> 00:16:02,640
1391 -the account, because we didn't like the
1392 -
1393 -349
1394 -00:16:02,640 ~-~-> 00:16:04,110
1395 -way it felt when money was taken out,
1396 -
1397 -350
1398 -00:16:04,200 ~-~-> 00:16:05,730
1399 -not only did we not like the fact that
1400 -
1401 -351
1402 -00:16:05,730 ~-~-> 00:16:08,580
1403 -we were wrong, but we didn't like the
1404 -
1405 -352
1406 -00:16:08,580 ~-~-> 00:16:10,140
1407 -fact that we were wrong and we were
1408 -
1409 -353
1410 -00:16:10,440 ~-~-> 00:16:15,720
1411 -robbed of equity. And we personify that
1412 -
1413 -354
1414 -00:16:16,680 ~-~-> 00:16:18,960
1415 -and made it someone or something that
1416 -
1417 -355
1418 -00:16:18,960 ~-~-> 00:16:21,930
1419 -we're going to get revenge on. And that
1420 -
1421 -356
1422 -00:16:22,020 ~-~-> 00:16:24,090
1423 -I can look back and say that that was
1424 -
1425 -357
1426 -00:16:24,180 ~-~-> 00:16:27,900
1427 -90% of the biggest losses and the
1428 -
1429 -358
1430 -00:16:27,900 ~-~-> 00:16:30,870
1431 -biggest and longest streaks of losing
1432 -
1433 -359
1434 -00:16:30,870 ~-~-> 00:16:33,540
1435 -trades were linked to that very thing.
1436 -
1437 -360
1438 -00:16:36,090 ~-~-> 00:16:38,850
1439 -If we would have just simply reduced the
1440 -
1441 -361
1442 -00:16:38,850 ~-~-> 00:16:41,070
1443 -leverage. For instance, if we were
1444 -
1445 -362
1446 -00:16:41,070 ~-~-> 00:16:43,890
1447 -trading 10 contracts of the standard
1448 -
1449 -363
1450 -00:16:43,890 ~-~-> 00:16:45,180
1451 -Poor's futures contract,
1452 -
1453 -364
1454 -00:16:45,810 ~-~-> 00:16:49,110
1455 -and we took a loss of 2%. The next trade
1456 -
1457 -365
1458 -00:16:49,170 ~-~-> 00:16:53,730
1459 -should be five lots. And if we take a
1460 -
1461 -366
1462 -00:16:53,730 ~-~-> 00:16:56,970
1463 -loss there, next trade should be to lots
1464 -
1465 -367
1466 -00:16:57,930 ~-~-> 00:17:00,000
1467 -and keep reducing until you make 50%
1468 -
1469 -368
1470 -00:17:00,000 ~-~-> 00:17:02,910
1471 -Have a previous loss back, then you can
1472 -
1473 -369
1474 -00:17:02,910 ~-~-> 00:17:05,220
1475 -go back up one scale in the money
1476 -
1477 -370
1478 -00:17:05,220 ~-~-> 00:17:06,870
1479 -management and risk trade management.
1480 -
1481 -371
1482 -00:17:08,130 ~-~-> 00:17:10,020
1483 -But if you don't do this, you're going
1484 -
1485 -372
1486 -00:17:10,020 ~-~-> 00:17:13,560
1487 -to have a wild roller coaster equity
1488 -
1489 -373
1490 -00:17:13,560 ~-~-> 00:17:15,840
1491 -swings and many accounts being dusted.
1492 -
1493 -374
1494 -00:17:16,980 ~-~-> 00:17:19,080
1495 -If you don't do this, you're not going
1496 -
1497 -375
1498 -00:17:19,080 ~-~-> 00:17:21,060
1499 -to build in plateaus and your equity,
1500 -
1501 -376
1502 -00:17:22,200 ~-~-> 00:17:23,340
1503 -there's going to be a series of winning
1504 -
1505 -377
1506 -00:17:23,340 ~-~-> 00:17:25,050
1507 -trades. And then what's going to
1508 -
1509 -378
1510 -00:17:25,050 ~-~-> 00:17:26,490
1511 -eventually come that you don't like to
1512 -
1513 -379
1514 -00:17:26,580 ~-~-> 00:17:28,680
1515 -admit, it's going to be a losing trade
1516 -
1517 -380
1518 -00:17:28,680 ~-~-> 00:17:31,680
1519 -or two or three. And if you keep risking
1520 -
1521 -381
1522 -00:17:31,680 ~-~-> 00:17:34,080
1523 -the same amount, your equity drawdown is
1524 -
1525 -382
1526 -00:17:34,080 ~-~-> 00:17:36,240
1527 -going to be notable and horrendous if
1528 -
1529 -383
1530 -00:17:36,240 ~-~-> 00:17:39,300
1531 -you don't control yourself. So you want
1532 -
1533 -384
1534 -00:17:39,300 ~-~-> 00:17:41,040
1535 -to reduce the leverage after taking
1536 -
1537 -385
1538 -00:17:41,040 ~-~-> 00:17:43,860
1539 -losses because then the inevitable is
1540 -
1541 -386
1542 -00:17:43,860 ~-~-> 00:17:44,730
1543 -going to happen. You're gonna have a
1544 -
1545 -387
1546 -00:17:44,730 ~-~-> 00:17:46,560
1547 -series of losses. But if you keep
1548 -
1549 -388
1550 -00:17:46,560 ~-~-> 00:17:51,150
1551 -risking 2% 2% 2% 2% it's going to have
1552 -
1553 -389
1554 -00:17:51,330 ~-~-> 00:17:54,450
1555 -greater impact on the drawdown that you
1556 -
1557 -390
1558 -00:17:54,450 ~-~-> 00:17:57,060
1559 -suffer. And it's much more work on your
1560 -
1561 -391
1562 -00:17:57,060 ~-~-> 00:18:03,960
1563 -part to recapture that. Be patient will
1564 -
1565 -392
1566 -00:18:03,960 ~-~-> 00:18:08,460
1567 -draw down recovery. Losing still sucks.
1568 -
1569 -393
1570 -00:18:08,880 ~-~-> 00:18:10,710
1571 -When you get stopped out, it's not fun.
1572 -
1573 -394
1574 -00:18:10,920 ~-~-> 00:18:12,450
1575 -But it's a business transaction,
1576 -
1577 -395
1578 -00:18:12,660 ~-~-> 00:18:16,350
1579 -eventually, around late 20s, you're
1580 -
1581 -396
1582 -00:18:16,350 ~-~-> 00:18:18,510
1583 -going to see it as just that. It still
1584 -
1585 -397
1586 -00:18:18,510 ~-~-> 00:18:20,040
1587 -won't feel good. And you'll hate that
1588 -
1589 -398
1590 -00:18:20,040 ~-~-> 00:18:22,470
1591 -you have them. But you'll come to grips
1592 -
1593 -399
1594 -00:18:22,470 ~-~-> 00:18:24,780
1595 -with a little bit. But be patient
1596 -
1597 -400
1598 -00:18:24,780 ~-~-> 00:18:26,040
1599 -withdrawal data recovery. In other
1600 -
1601 -401
1602 -00:18:26,040 ~-~-> 00:18:28,050
1603 -words, don't rush to get it back. If you
1604 -
1605 -402
1606 -00:18:28,050 ~-~-> 00:18:30,390
1607 -have a day trade or two, that shares a
1608 -
1609 -403
1610 -00:18:30,390 ~-~-> 00:18:33,330
1611 -net loss for the day, stop the next
1612 -
1613 -404
1614 -00:18:33,330 ~-~-> 00:18:35,400
1615 -trading day. It's very easy to start
1616 -
1617 -405
1618 -00:18:35,430 ~-~-> 00:18:37,620
1619 -building that back up and don't try to
1620 -
1621 -406
1622 -00:18:37,620 ~-~-> 00:18:40,800
1623 -get it back in one trade. You have made
1624 -
1625 -407
1626 -00:18:40,800 ~-~-> 00:18:43,170
1627 -so many errors I can tell you right now,
1628 -
1629 -408
1630 -00:18:43,530 ~-~-> 00:18:46,020
1631 -at least three dozen of them and they
1632 -
1633 -409
1634 -00:18:46,020 ~-~-> 00:18:50,730
1635 -were all in soybeans. Those trades ended
1636 -
1637 -410
1638 -00:18:50,730 ~-~-> 00:18:53,370
1639 -up being parlayed into huge losses and
1640 -
1641 -411
1642 -00:18:53,370 ~-~-> 00:18:55,530
1643 -to lost accounts. You killed two
1644 -
1645 -412
1646 -00:18:55,530 ~-~-> 00:18:59,670
1647 -accounts. You don't see it yet. Oh, but
1648 -
1649 -413
1650 -00:18:59,670 ~-~-> 00:19:02,640
1651 -it's coming. You will have blown to
1652 -
1653 -414
1654 -00:19:02,820 ~-~-> 00:19:05,700
1655 -futures accounts trading the soybean
1656 -
1657 -415
1658 -00:19:05,700 ~-~-> 00:19:08,760
1659 -market, because you're trying to get
1660 -
1661 -416
1662 -00:19:08,760 ~-~-> 00:19:11,790
1663 -back your losses, and you get caught in
1664 -
1665 -417
1666 -00:19:11,790 ~-~-> 00:19:14,580
1667 -a couple limit moves. And you can't get
1668 -
1669 -418
1670 -00:19:14,580 ~-~-> 00:19:17,010
1671 -out of those. And you end up suffering
1672 -
1673 -419
1674 -00:19:17,010 ~-~-> 00:19:18,870
1675 -and blowing out the account. Because you
1676 -
1677 -420
1678 -00:19:18,870 ~-~-> 00:19:22,320
1679 -are not being patient. You're not going
1680 -
1681 -421
1682 -00:19:22,320 ~-~-> 00:19:28,170
1683 -to be patient. And you suffer the draw
1684 -
1685 -422
1686 -00:19:28,170 ~-~-> 00:19:32,940
1687 -down. And the recovery of it is not only
1688 -
1689 -423
1690 -00:19:32,940 ~-~-> 00:19:35,070
1691 -timeline basis. In other words, there's
1692 -
1693 -424
1694 -00:19:35,070 ~-~-> 00:19:37,710
1695 -no deadline that you have to meet to get
1696 -
1697 -425
1698 -00:19:37,710 ~-~-> 00:19:41,580
1699 -that money back. Immediate is what you
1700 -
1701 -426
1702 -00:19:41,580 ~-~-> 00:19:43,800
1703 -feel like it has to be, but that's the
1704 -
1705 -427
1706 -00:19:43,800 ~-~-> 00:19:46,860
1707 -trap. That's the trap. You have to avoid
1708 -
1709 -428
1710 -00:19:46,860 ~-~-> 00:19:49,590
1711 -that. Michael, if you don't listen to
1712 -
1713 -429
1714 -00:19:49,590 ~-~-> 00:19:52,140
1715 -me, you're going to find yourself
1716 -
1717 -430
1718 -00:19:52,470 ~-~-> 00:19:57,330
1719 -chasing loss after loss after loss and
1720 -
1721 -431
1722 -00:19:57,330 ~-~-> 00:19:58,710
1723 -you're not going to be thinking clearly
1724 -
1725 -432
1726 -00:19:58,920 ~-~-> 00:20:01,260
1727 -you're going to get even more insanely
1728 -
1729 -433
1730 -00:20:01,260 ~-~-> 00:20:03,390
1731 -re in raged, okay. It's what it's going
1732 -
1733 -434
1734 -00:20:03,390 ~-~-> 00:20:06,510
1735 -to become. Because you think that the
1736 -
1737 -435
1738 -00:20:06,510 ~-~-> 00:20:07,800
1739 -brokers on the other side clicking
1740 -
1741 -436
1742 -00:20:07,800 ~-~-> 00:20:11,340
1743 -buttons just to get you and I can tell
1744 -
1745 -437
1746 -00:20:11,340 ~-~-> 00:20:14,010
1747 -you honestly, looking back, you were
1748 -
1749 -438
1750 -00:20:14,010 ~-~-> 00:20:16,410
1751 -just doing it wrong and doing it wrong a
1752 -
1753 -439
1754 -00:20:16,410 ~-~-> 00:20:21,420
1755 -lot and very frequently pursuing
1756 -
1757 -440
1758 -00:20:21,420 ~-~-> 00:20:25,320
1759 -something that is very easily accepted.
1760 -
1761 -441
1762 -00:20:25,710 ~-~-> 00:20:28,440
1763 -Take the loss, go home for the day and
1764 -
1765 -442
1766 -00:20:28,440 ~-~-> 00:20:31,890
1767 -see what happens tomorrow. If you don't
1768 -
1769 -443
1770 -00:20:31,890 ~-~-> 00:20:36,180
1771 -do that, you're going to dust multiple
1772 -
1773 -444
1774 -00:20:36,180 ~-~-> 00:20:36,720
1775 -accounts
1776 -
1777 -445
1778 -00:20:44,370 ~-~-> 00:20:46,440
1779 -managed to keep risk below 3% maximum.
1780 -
1781 -446
1782 -00:20:49,530 ~-~-> 00:20:52,890
1783 -Avoid large risk for large wins. Now,
1784 -
1785 -447
1786 -00:20:53,790 ~-~-> 00:20:56,760
1787 -when you first start trading, you're
1788 -
1789 -448
1790 -00:20:56,760 ~-~-> 00:20:58,290
1791 -going to read a couple things in
1792 -
1793 -449
1794 -00:20:58,710 ~-~-> 00:21:01,860
1795 -commodity magazine. And it's going to
1796 -
1797 -450
1798 -00:21:01,860 ~-~-> 00:21:03,840
1799 -inspire you to trade with a little bit
1800 -
1801 -451
1802 -00:21:03,840 ~-~-> 00:21:07,050
1803 -larger risk. And you're going to pull
1804 -
1805 -452
1806 -00:21:07,050 ~-~-> 00:21:08,970
1807 -out your calculator, and you're gonna be
1808 -
1809 -453
1810 -00:21:08,970 ~-~-> 00:21:10,920
1811 -sitting at lunch while at work. And
1812 -
1813 -454
1814 -00:21:10,920 ~-~-> 00:21:12,630
1815 -you're gonna think if I take my account,
1816 -
1817 -455
1818 -00:21:12,840 ~-~-> 00:21:18,300
1819 -and I risk 810 12% per trade, I can do
1820 -
1821 -456
1822 -00:21:18,300 ~-~-> 00:21:21,090
1823 -this or that in the time of the end of
1824 -
1825 -457
1826 -00:21:21,090 ~-~-> 00:21:23,280
1827 -the month. If I do that 12 months in a
1828 -
1829 -458
1830 -00:21:23,280 ~-~-> 00:21:26,790
1831 -row, I'll be able to buy this or that.
1832 -
1833 -459
1834 -00:21:28,380 ~-~-> 00:21:34,710
1835 -Don't do that. Avoid large risk. You're
1836 -
1837 -460
1838 -00:21:34,710 ~-~-> 00:21:36,390
1839 -not going to be consistent in the
1840 -
1841 -461
1842 -00:21:36,390 ~-~-> 00:21:38,580
1843 -beginning. You think you are because the
1844 -
1845 -462
1846 -00:21:38,580 ~-~-> 00:21:41,280
1847 -books that you bought are telling you
1848 -
1849 -463
1850 -00:21:41,490 ~-~-> 00:21:43,230
1851 -that it's just simply just do this, do
1852 -
1853 -464
1854 -00:21:43,230 ~-~-> 00:21:44,730
1855 -that and when the indicator says this,
1856 -
1857 -465
1858 -00:21:44,730 ~-~-> 00:21:45,870
1859 -that's when you buy them an indicator
1860 -
1861 -466
1862 -00:21:45,870 ~-~-> 00:21:48,450
1863 -says this, you sell and you're going to
1864 -
1865 -467
1866 -00:21:48,450 ~-~-> 00:21:49,890
1867 -find out very quickly that this doesn't
1868 -
1869 -468
1870 -00:21:49,890 ~-~-> 00:21:52,710
1871 -work that way. It's it's not that easy.
1872 -
1873 -469
1874 -00:21:55,170 ~-~-> 00:22:00,000
1875 -Expect to make velocity your edge after
1876 -
1877 -470
1878 -00:22:00,000 ~-~-> 00:22:03,690
1879 -spending almost 28 years doing this, I
1880 -
1881 -471
1882 -00:22:03,690 ~-~-> 00:22:06,600
1883 -can tell you everyone still thinks that
1884 -
1885 -472
1886 -00:22:06,780 ~-~-> 00:22:10,920
1887 -having a large are multiple. Okay or
1888 -
1889 -473
1890 -00:22:10,920 ~-~-> 00:22:13,620
1891 -risk reward model is the secret. And
1892 -
1893 -474
1894 -00:22:13,620 ~-~-> 00:22:15,660
1895 -that's not the secret. The secret is
1896 -
1897 -475
1898 -00:22:15,840 ~-~-> 00:22:19,110
1899 -velocity doing something over and over
1900 -
1901 -476
1902 -00:22:19,110 ~-~-> 00:22:21,660
1903 -and over again, that has a unexpected
1904 -
1905 -477
1906 -00:22:21,660 ~-~-> 00:22:24,420
1907 -result that is high in probability and
1908 -
1909 -478
1910 -00:22:24,420 ~-~-> 00:22:27,840
1911 -flipping the equity. That's velocity.
1912 -
1913 -479
1914 -00:22:29,520 ~-~-> 00:22:33,780
1915 -You will in your mid 30s, discover how
1916 -
1917 -480
1918 -00:22:34,020 ~-~-> 00:22:37,230
1919 -you can take the same account balance.
1920 -
1921 -481
1922 -00:22:38,070 ~-~-> 00:22:40,290
1923 -And while other traders and other
1924 -
1925 -482
1926 -00:22:40,290 ~-~-> 00:22:42,570
1927 -methodology may be focusing on trying to
1928 -
1929 -483
1930 -00:22:42,570 ~-~-> 00:22:46,770
1931 -get 10 to one or more, you can do
1932 -
1933 -484
1934 -00:22:46,770 ~-~-> 00:22:50,430
1935 -exceptionally well doing one to one two
1936 -
1937 -485
1938 -00:22:50,430 ~-~-> 00:22:54,330
1939 -to one because you can use the lower
1940 -
1941 -486
1942 -00:22:54,330 ~-~-> 00:22:56,940
1943 -timeframes that you don't appreciate
1944 -
1945 -487
1946 -00:22:56,940 ~-~-> 00:23:00,000
1947 -right now. But they are the same market
1948 -
1949 -488
1950 -00:23:00,840 ~-~-> 00:23:05,850
1951 -with dozens of setups per day, but
1952 -
1953 -489
1954 -00:23:05,850 ~-~-> 00:23:07,260
1955 -you're not in a position when you first
1956 -
1957 -490
1958 -00:23:07,260 ~-~-> 00:23:09,330
1959 -start, did start doing those types of
1960 -
1961 -491
1962 -00:23:09,330 ~-~-> 00:23:12,450
1963 -trades. It's going to be a little bit
1964 -
1965 -492
1966 -00:23:12,450 ~-~-> 00:23:14,970
1967 -time before you understand that but
1968 -
1969 -493
1970 -00:23:15,360 ~-~-> 00:23:18,240
1971 -velocity and turning over the equity
1972 -
1973 -494
1974 -00:23:18,270 ~-~-> 00:23:21,780
1975 -without risking a lot. That beats every
1976 -
1977 -495
1978 -00:23:21,780 ~-~-> 00:23:24,150
1979 -race, it beats every trading contest. It
1980 -
1981 -496
1982 -00:23:24,150 ~-~-> 00:23:28,020
1983 -beats every thing, period, because
1984 -
1985 -497
1986 -00:23:28,020 ~-~-> 00:23:32,220
1987 -you're using the rate of turnover in the
1988 -
1989 -498
1990 -00:23:32,220 ~-~-> 00:23:34,680
1991 -equity, because you're taking more
1992 -
1993 -499
1994 -00:23:34,680 ~-~-> 00:23:37,410
1995 -frequency. And you're looking at a
1996 -
1997 -500
1998 -00:23:37,410 ~-~-> 00:23:40,200
1999 -result that is measurable. It's a
2000 -
2001 -501
2002 -00:23:40,200 ~-~-> 00:23:42,750
2003 -repeating reoccurring pattern that forms
2004 -
2005 -502
2006 -00:23:42,810 ~-~-> 00:23:44,280
2007 -every single day multiple times
2008 -
2009 -503
2010 -00:23:44,280 ~-~-> 00:23:47,940
2011 -intraday. So it's not that you want to
2012 -
2013 -504
2014 -00:23:47,940 ~-~-> 00:23:50,280
2015 -take a larger risk to make bigger money,
2016 -
2017 -505
2018 -00:23:50,310 ~-~-> 00:23:54,030
2019 -you want to take surgical strikes, and
2020 -
2021 -506
2022 -00:23:54,030 ~-~-> 00:23:57,090
2023 -parlay the account up using velocity and
2024 -
2025 -507
2026 -00:23:57,090 ~-~-> 00:24:00,570
2027 -it's just a higher frequency trade. The
2028 -
2029 -508
2030 -00:24:00,570 ~-~-> 00:24:03,660
2031 -same reoccurring pattern, want to lower
2032 -
2033 -509
2034 -00:24:03,660 ~-~-> 00:24:06,810
2035 -timeframe. And while other traders are
2036 -
2037 -510
2038 -00:24:06,810 ~-~-> 00:24:09,330
2039 -waiting for their 10 to 121 30 to one,
2040 -
2041 -511
2042 -00:24:10,740 ~-~-> 00:24:13,530
2043 -that money can only make whatever the
2044 -
2045 -512
2046 -00:24:13,530 ~-~-> 00:24:15,840
2047 -maximum, our multiple is going to be for
2048 -
2049 -513
2050 -00:24:15,840 ~-~-> 00:24:18,450
2051 -it. But within those long or higher
2052 -
2053 -514
2054 -00:24:18,450 ~-~-> 00:24:20,760
2055 -timeframe price swings, you're going to
2056 -
2057 -515
2058 -00:24:20,760 ~-~-> 00:24:23,490
2059 -be in there, moving back and forth, both
2060 -
2061 -516
2062 -00:24:23,490 ~-~-> 00:24:25,410
2063 -directions, most of the money being
2064 -
2065 -517
2066 -00:24:25,920 ~-~-> 00:24:27,030
2067 -allocated to the side of the
2068 -
2069 -518
2070 -00:24:27,030 ~-~-> 00:24:29,910
2071 -marketplace, it's going to move in, and
2072 -
2073 -519
2074 -00:24:30,150 ~-~-> 00:24:32,880
2075 -still trading counter trend intraday
2076 -
2077 -520
2078 -00:24:33,060 ~-~-> 00:24:35,310
2079 -with less than the risk that you're
2080 -
2081 -521
2082 -00:24:35,310 ~-~-> 00:24:36,840
2083 -using when you're trading in sync with
2084 -
2085 -522
2086 -00:24:36,840 ~-~-> 00:24:40,440
2087 -the market. And you will destroy the 10
2088 -
2089 -523
2090 -00:24:40,440 ~-~-> 00:24:43,290
2091 -to 121 31 are multiple type trading
2092 -
2093 -524
2094 -00:24:43,290 ~-~-> 00:24:46,530
2095 -models. It's simple math, but you're
2096 -
2097 -525
2098 -00:24:46,530 ~-~-> 00:24:48,150
2099 -going to be distracted Michael, by all
2100 -
2101 -526
2102 -00:24:48,150 ~-~-> 00:24:50,220
2103 -these books and all these things.
2104 -
2105 -527
2106 -00:24:50,700 ~-~-> 00:24:52,680
2107 -They're going to draw your attention
2108 -
2109 -528
2110 -00:24:52,680 ~-~-> 00:24:55,290
2111 -away from the simplest of things. Is it
2112 -
2113 -529
2114 -00:24:55,290 ~-~-> 00:24:56,910
2115 -going on at all? Is it going to go down?
2116 -
2117 -530
2118 -00:24:57,300 ~-~-> 00:24:59,100
2119 -How far is going to go up? How far is it
2120 -
2121 -531
2122 -00:24:59,100 ~-~-> 00:25:01,320
2123 -going to go down? At what point is it
2124 -
2125 -532
2126 -00:25:01,410 ~-~-> 00:25:02,850
2127 -incorrect and I want to be out of the
2128 -
2129 -533
2130 -00:25:02,850 ~-~-> 00:25:07,110
2131 -trade. Now, that same criteria just
2132 -
2133 -534
2134 -00:25:07,110 ~-~-> 00:25:08,640
2135 -applied to a one minute or five minute
2136 -
2137 -535
2138 -00:25:08,640 ~-~-> 00:25:12,120
2139 -chart, you can take that same equity and
2140 -
2141 -536
2142 -00:25:12,120 ~-~-> 00:25:14,640
2143 -flip it over and over and over and over
2144 -
2145 -537
2146 -00:25:14,640 ~-~-> 00:25:19,230
2147 -again. within the span of, say a weekly
2148 -
2149 -538
2150 -00:25:19,230 ~-~-> 00:25:21,390
2151 -range, it takes five candles to form.
2152 -
2153 -539
2154 -00:25:22,710 ~-~-> 00:25:26,370
2155 -You may have 30 to 40 trades for the
2156 -
2157 -540
2158 -00:25:26,370 ~-~-> 00:25:28,050
2159 -course of the week, and they're all one
2160 -
2161 -541
2162 -00:25:28,050 ~-~-> 00:25:31,140
2163 -minute setups. But if each one of those
2164 -
2165 -542
2166 -00:25:31,140 ~-~-> 00:25:37,800
2167 -pay out 2% minimum nothing's going to
2168 -
2169 -543
2170 -00:25:37,800 ~-~-> 00:25:41,670
2171 -keep up with that. Consider the
2172 -
2173 -544
2174 -00:25:41,670 ~-~-> 00:25:43,230
2175 -negatives of forcing setups.
2176 -
2177 -545
2178 -00:25:45,570 ~-~-> 00:25:47,130
2179 -Your impatience Michael in the
2180 -
2181 -546
2182 -00:25:47,130 ~-~-> 00:25:48,690
2183 -beginning, because the first trade you
2184 -
2185 -547
2186 -00:25:48,690 ~-~-> 00:25:51,060
2187 -put on, you lose 50% of your activity
2188 -
2189 -548
2190 -00:25:51,600 ~-~-> 00:25:53,580
2191 -and your trading options and you didn't
2192 -
2193 -549
2194 -00:25:53,910 ~-~-> 00:25:56,340
2195 -fully understand what you're doing. And
2196 -
2197 -550
2198 -00:25:56,940 ~-~-> 00:25:59,700
2199 -option trading is not just simply being
2200 -
2201 -551
2202 -00:25:59,700 ~-~-> 00:26:01,200
2203 -right On the marketplace, you have to
2204 -
2205 -552
2206 -00:26:01,200 ~-~-> 00:26:04,140
2207 -beat the time decay as well. You'll
2208 -
2209 -553
2210 -00:26:04,140 ~-~-> 00:26:05,820
2211 -learn about that later on with some
2212 -
2213 -554
2214 -00:26:05,820 ~-~-> 00:26:08,310
2215 -pain. But consider the negatives of
2216 -
2217 -555
2218 -00:26:08,310 ~-~-> 00:26:10,350
2219 -forcing the setups because you're going
2220 -
2221 -556
2222 -00:26:10,350 ~-~-> 00:26:12,360
2223 -to try to force it, you're going to have
2224 -
2225 -557
2226 -00:26:12,360 ~-~-> 00:26:13,860
2227 -a level that you want to be buying it,
2228 -
2229 -558
2230 -00:26:13,890 ~-~-> 00:26:16,560
2231 -but you are impatient. And you're going
2232 -
2233 -559
2234 -00:26:16,560 ~-~-> 00:26:20,340
2235 -to try to buy it ahead of time. And that
2236 -
2237 -560
2238 -00:26:20,370 ~-~-> 00:26:25,020
2239 -is a problem. Because you aren't very
2240 -
2241 -561
2242 -00:26:25,140 ~-~-> 00:26:27,690
2243 -versed in proper stock placement. In the
2244 -
2245 -562
2246 -00:26:27,690 ~-~-> 00:26:30,780
2247 -beginning, Michael, you're going to have
2248 -
2249 -563
2250 -00:26:30,780 ~-~-> 00:26:32,760
2251 -your stock too tight because you don't
2252 -
2253 -564
2254 -00:26:32,760 ~-~-> 00:26:35,160
2255 -want to risk a lot of money. But you are
2256 -
2257 -565
2258 -00:26:35,160 ~-~-> 00:26:38,280
2259 -risking 5% on the trade, and that's too
2260 -
2261 -566
2262 -00:26:38,280 ~-~-> 00:26:41,010
2263 -much. You're risking way too much. But
2264 -
2265 -567
2266 -00:26:41,010 ~-~-> 00:26:43,290
2267 -you're forcing the entry sooner than it
2268 -
2269 -568
2270 -00:26:43,290 ~-~-> 00:26:46,890
2271 -should be taken. And it is done at a
2272 -
2273 -569
2274 -00:26:46,890 ~-~-> 00:26:48,930
2275 -time where you're using the maximum
2276 -
2277 -570
2278 -00:26:48,930 ~-~-> 00:26:51,510
2279 -amount of leverage which strangles the
2280 -
2281 -571
2282 -00:26:51,510 ~-~-> 00:26:52,710
2283 -trade because you have to have a very
2284 -
2285 -572
2286 -00:26:52,710 ~-~-> 00:26:56,220
2287 -short, tight stop in a trade that you
2288 -
2289 -573
2290 -00:26:56,250 ~-~-> 00:26:58,980
2291 -entered too soon. Before the level you
2292 -
2293 -574
2294 -00:26:58,980 ~-~-> 00:27:02,010
2295 -want to buy in So, when you're doing
2296 -
2297 -575
2298 -00:27:02,010 ~-~-> 00:27:05,730
2299 -that, you're convincing yourself that
2300 -
2301 -576
2302 -00:27:05,730 ~-~-> 00:27:08,430
2303 -you're going to be right. And ignoring
2304 -
2305 -577
2306 -00:27:08,970 ~-~-> 00:27:10,860
2307 -all of the things that you're doing
2308 -
2309 -578
2310 -00:27:10,860 ~-~-> 00:27:15,240
2311 -wrong that is inviting failure. You have
2312 -
2313 -579
2314 -00:27:15,240 ~-~-> 00:27:17,730
2315 -to consider the negatives of it. What is
2316 -
2317 -580
2318 -00:27:17,760 ~-~-> 00:27:19,530
2319 -the impact of that? Number one, you're
2320 -
2321 -581
2322 -00:27:19,590 ~-~-> 00:27:22,320
2323 -teaching yourself that not following the
2324 -
2325 -582
2326 -00:27:22,320 ~-~-> 00:27:26,940
2327 -rules is okay. That trading ahead of the
2328 -
2329 -583
2330 -00:27:26,940 ~-~-> 00:27:30,810
2331 -level before it's made a touch or a
2332 -
2333 -584
2334 -00:27:30,810 ~-~-> 00:27:34,140
2335 -retest to it. That that's normal. That's
2336 -
2337 -585
2338 -00:27:34,140 ~-~-> 00:27:35,430
2339 -something you should be doing when it
2340 -
2341 -586
2342 -00:27:35,430 ~-~-> 00:27:37,650
2343 -doesn't fit within the model. If you've
2344 -
2345 -587
2346 -00:27:37,830 ~-~-> 00:27:39,900
2347 -identified a level and you want to buy
2348 -
2349 -588
2350 -00:27:39,900 ~-~-> 00:27:41,490
2351 -at that level, why are you buying before
2352 -
2353 -589
2354 -00:27:41,490 ~-~-> 00:27:44,790
2355 -the levels hit? Because you're forcing
2356 -
2357 -590
2358 -00:27:44,790 ~-~-> 00:27:46,710
2359 -the trade. you're impatient. You want to
2360 -
2361 -591
2362 -00:27:46,710 ~-~-> 00:27:47,970
2363 -get in because you're afraid that you're
2364 -
2365 -592
2366 -00:27:47,970 ~-~-> 00:27:49,800
2367 -going to miss the move. It might not hit
2368 -
2369 -593
2370 -00:27:49,800 ~-~-> 00:27:52,200
2371 -your level. Well, guess what? So what?
2372 -
2373 -594
2374 -00:27:53,220 ~-~-> 00:27:56,160
2375 -There's going to be 10s of thousands of
2376 -
2377 -595
2378 -00:27:56,160 ~-~-> 00:28:00,450
2379 -trades in your career, and your Not
2380 -
2381 -596
2382 -00:28:00,480 ~-~-> 00:28:06,090
2383 -going to miss the big moneymaker.
2384 -
2385 -597
2386 -00:28:06,690 ~-~-> 00:28:10,170
2387 -Because of not getting in early. Getting
2388 -
2389 -598
2390 -00:28:10,170 ~-~-> 00:28:12,720
2391 -in early is always always I can tell you
2392 -
2393 -599
2394 -00:28:12,720 ~-~-> 00:28:15,570
2395 -now looking back has always been an
2396 -
2397 -600
2398 -00:28:15,570 ~-~-> 00:28:19,350
2399 -error. Always. It never works out in our
2400 -
2401 -601
2402 -00:28:19,350 ~-~-> 00:28:24,600
2403 -favor. So don't do it. Taking partials
2404 -
2405 -602
2406 -00:28:24,600 ~-~-> 00:28:26,940
2407 -is the best thing you will ever do. And
2408 -
2409 -603
2410 -00:28:26,940 ~-~-> 00:28:30,420
2411 -I'll say it again. Taking partials is
2412 -
2413 -604
2414 -00:28:30,420 ~-~-> 00:28:33,570
2415 -the best thing that you're ever going to
2416 -
2417 -605
2418 -00:28:33,570 ~-~-> 00:28:37,860
2419 -do, Michael, the biggest hurdle in your
2420 -
2421 -606
2422 -00:28:37,980 ~-~-> 00:28:42,090
2423 -development is being comfortable with
2424 -
2425 -607
2426 -00:28:42,090 ~-~-> 00:28:45,060
2427 -holding the trade. You're going to
2428 -
2429 -608
2430 -00:28:45,060 ~-~-> 00:28:47,070
2431 -struggle with that. It's going to cause
2432 -
2433 -609
2434 -00:28:47,070 ~-~-> 00:28:48,870
2435 -anxiety. You're going to have heart
2436 -
2437 -610
2438 -00:28:48,870 ~-~-> 00:28:50,310
2439 -palpitations, you're going to have
2440 -
2441 -611
2442 -00:28:50,490 ~-~-> 00:28:51,750
2443 -shortness of breath, you're going to
2444 -
2445 -612
2446 -00:28:51,780 ~-~-> 00:28:52,860
2447 -feel like you're going to faint a couple
2448 -
2449 -613
2450 -00:28:52,860 ~-~-> 00:28:54,300
2451 -times you're going to vomit a couple
2452 -
2453 -614
2454 -00:28:54,300 ~-~-> 00:28:56,310
2455 -times, because some of the trades that
2456 -
2457 -615
2458 -00:28:56,310 ~-~-> 00:28:59,700
2459 -you're in in the s&p are huge and this
2460 -
2461 -616
2462 -00:28:59,700 ~-~-> 00:29:03,630
2463 -discussion little tick is making you go
2464 -
2465 -617
2466 -00:29:03,630 ~-~-> 00:29:06,780
2467 -nuts. wait around for it, it happens.
2468 -
2469 -618
2470 -00:29:08,640 ~-~-> 00:29:12,330
2471 -But taking partials off, while the trade
2472 -
2473 -619
2474 -00:29:12,330 ~-~-> 00:29:16,860
2475 -is developing, number one, it feels good
2476 -
2477 -620
2478 -00:29:16,890 ~-~-> 00:29:19,590
2479 -to take something off. It feels good.
2480 -
2481 -621
2482 -00:29:20,190 ~-~-> 00:29:21,750
2483 -And it feels like you're doing something
2484 -
2485 -622
2486 -00:29:21,750 ~-~-> 00:29:23,100
2487 -because even when you're in a trade
2488 -
2489 -623
2490 -00:29:23,100 ~-~-> 00:29:24,960
2491 -that's winning, you're going to find
2492 -
2493 -624
2494 -00:29:24,960 ~-~-> 00:29:29,010
2495 -that it is like holding on to a
2496 -
2497 -625
2498 -00:29:29,010 ~-~-> 00:29:31,050
2499 -motorcycle at 200 plus miles an hour.
2500 -
2501 -626
2502 -00:29:32,130 ~-~-> 00:29:35,610
2503 -It's it's a incredible rush. But you'll
2504 -
2505 -627
2506 -00:29:35,610 ~-~-> 00:29:38,370
2507 -also want to ride the end sometimes
2508 -
2509 -628
2510 -00:29:38,400 ~-~-> 00:29:40,680
2511 -quickly. And when you get in a trade,
2512 -
2513 -629
2514 -00:29:41,040 ~-~-> 00:29:43,470
2515 -and it's moving in your favor, you want
2516 -
2517 -630
2518 -00:29:43,470 ~-~-> 00:29:45,030
2519 -to get there quick, you want to get
2520 -
2521 -631
2522 -00:29:45,030 ~-~-> 00:29:46,470
2523 -there and get you out of the trade and
2524 -
2525 -632
2526 -00:29:46,470 ~-~-> 00:29:47,730
2527 -profit because you don't like the
2528 -
2529 -633
2530 -00:29:47,730 ~-~-> 00:29:49,470
2531 -discomfort of not knowing if it's gonna
2532 -
2533 -634
2534 -00:29:49,470 ~-~-> 00:29:52,590
2535 -hit your target. So the way you're going
2536 -
2537 -635
2538 -00:29:52,590 ~-~-> 00:29:55,650
2539 -to best deal with that and have the
2540 -
2541 -636
2542 -00:29:55,650 ~-~-> 00:29:57,960
2543 -ability to hold on to the trade longer
2544 -
2545 -637
2546 -00:29:57,960 ~-~-> 00:30:00,300
2547 -into fruition or to get stopped out. Cuz
2548 -
2549 -638
2550 -00:30:00,300 ~-~-> 00:30:04,560
2551 -that's part of the plan too. You have to
2552 -
2553 -639
2554 -00:30:04,560 ~-~-> 00:30:06,630
2555 -take something off. So if the trade
2556 -
2557 -640
2558 -00:30:06,630 ~-~-> 00:30:08,730
2559 -moves 10 points in your favor, take 10
2560 -
2561 -641
2562 -00:30:08,730 ~-~-> 00:30:11,820
2563 -points off with something. Even if it's
2564 -
2565 -642
2566 -00:30:11,820 ~-~-> 00:30:14,220
2567 -one contract or one lot, take something
2568 -
2569 -643
2570 -00:30:14,220 ~-~-> 00:30:16,830
2571 -off. It feels good. It's that cookie
2572 -
2573 -644
2574 -00:30:16,830 ~-~-> 00:30:19,620
2575 -that reward. When it moves a little bit
2576 -
2577 -645
2578 -00:30:19,620 ~-~-> 00:30:22,980
2579 -more, take something off again. And
2580 -
2581 -646
2582 -00:30:22,980 ~-~-> 00:30:25,350
2583 -you're going to find by doing that, it
2584 -
2585 -647
2586 -00:30:25,350 ~-~-> 00:30:28,710
2587 -helps alleviate the pain and uncertainty
2588 -
2589 -648
2590 -00:30:28,710 ~-~-> 00:30:30,480
2591 -of holding on to that trade until it
2592 -
2593 -649
2594 -00:30:30,480 ~-~-> 00:30:34,920
2595 -gets to your profit objective. Taking
2596 -
2597 -650
2598 -00:30:34,920 ~-~-> 00:30:37,170
2599 -partials reduces risk while paying.
2600 -
2601 -651
2602 -00:30:39,750 ~-~-> 00:30:41,100
2603 -You're going to worry in the beginning
2604 -
2605 -652
2606 -00:30:41,130 ~-~-> 00:30:42,660
2607 -about getting stopped out all the time.
2608 -
2609 -653
2610 -00:30:43,080 ~-~-> 00:30:44,250
2611 -And you're going to do a lot of
2612 -
2613 -654
2614 -00:30:44,250 ~-~-> 00:30:46,140
2615 -acrobatics. With your your stop loss,
2616 -
2617 -655
2618 -00:30:46,140 ~-~-> 00:30:47,160
2619 -you're going to move it back when you
2620 -
2621 -656
2622 -00:30:47,160 ~-~-> 00:30:48,930
2623 -think it's dropping against you. or
2624 -
2625 -657
2626 -00:30:48,930 ~-~-> 00:30:50,700
2627 -raise it up when it's rising back up
2628 -
2629 -658
2630 -00:30:50,700 ~-~-> 00:30:52,770
2631 -towards your stop. And you're going to
2632 -
2633 -659
2634 -00:30:52,770 ~-~-> 00:30:54,780
2635 -drive yourself crazy doing that you have
2636 -
2637 -660
2638 -00:30:54,780 ~-~-> 00:30:56,190
2639 -to commit to whatever your stop is going
2640 -
2641 -661
2642 -00:30:56,190 ~-~-> 00:30:57,810
2643 -to be based on sound money management
2644 -
2645 -662
2646 -00:30:57,810 ~-~-> 00:31:01,080
2647 -and risk and Once the trade starts
2648 -
2649 -663
2650 -00:31:01,080 ~-~-> 00:31:03,150
2651 -moving in your favor, take partials off.
2652 -
2653 -664
2654 -00:31:03,390 ~-~-> 00:31:05,550
2655 -By doing that, not only does it fund you
2656 -
2657 -665
2658 -00:31:05,550 ~-~-> 00:31:09,060
2659 -as the trader, but it also reduces the
2660 -
2661 -666
2662 -00:31:09,060 ~-~-> 00:31:10,830
2663 -risk. Because every time you take
2664 -
2665 -667
2666 -00:31:10,830 ~-~-> 00:31:12,570
2667 -something off, you're reducing the
2668 -
2669 -668
2670 -00:31:12,570 ~-~-> 00:31:14,490
2671 -exposure to your account and your and
2672 -
2673 -669
2674 -00:31:14,490 ~-~-> 00:31:17,250
2675 -your mental capital will withstand. So
2676 -
2677 -670
2678 -00:31:17,250 ~-~-> 00:31:19,860
2679 -you have to constantly manage not only
2680 -
2681 -671
2682 -00:31:19,860 ~-~-> 00:31:21,480
2683 -the trade, but you have to manage the
2684 -
2685 -672
2686 -00:31:21,480 ~-~-> 00:31:24,570
2687 -trader. And it's expectation, your
2688 -
2689 -673
2690 -00:31:24,570 ~-~-> 00:31:27,150
2691 -expectation is you put the trade on
2692 -
2693 -674
2694 -00:31:27,150 ~-~-> 00:31:29,340
2695 -because you want to be profitable. So
2696 -
2697 -675
2698 -00:31:29,340 ~-~-> 00:31:32,220
2699 -what's the best thing that you can do as
2700 -
2701 -676
2702 -00:31:32,220 ~-~-> 00:31:33,810
2703 -a trader, when the trades in profit,
2704 -
2705 -677
2706 -00:31:34,530 ~-~-> 00:31:37,710
2707 -take something off, don't be fearful and
2708 -
2709 -678
2710 -00:31:37,710 ~-~-> 00:31:40,230
2711 -don't allow greed to say I have to hold
2712 -
2713 -679
2714 -00:31:40,230 ~-~-> 00:31:42,060
2715 -on for everything. It's all or nothing,
2716 -
2717 -680
2718 -00:31:42,270 ~-~-> 00:31:43,260
2719 -because I'm going to tell you, Michael,
2720 -
2721 -681
2722 -00:31:43,260 ~-~-> 00:31:44,670
2723 -when you do that, the first couple
2724 -
2725 -682
2726 -00:31:44,670 ~-~-> 00:31:46,140
2727 -years, you're going to be in some
2728 -
2729 -683
2730 -00:31:46,140 ~-~-> 00:31:48,930
2731 -trades. For instance, coffee, you're
2732 -
2733 -684
2734 -00:31:48,930 ~-~-> 00:31:50,010
2735 -going to be holding on to a coffee
2736 -
2737 -685
2738 -00:31:50,010 ~-~-> 00:31:52,800
2739 -trade. That's going to move a lot. It's
2740 -
2741 -686
2742 -00:31:52,800 ~-~-> 00:31:58,080
2743 -going to move a lot and $35,000 turns
2744 -
2745 -687
2746 -00:31:58,080 ~-~-> 00:32:01,500
2747 -into an $8,000 loss. Because you wanted
2748 -
2749 -688
2750 -00:32:01,500 ~-~-> 00:32:05,790
2751 -to get your full target. You have to
2752 -
2753 -689
2754 -00:32:05,790 ~-~-> 00:32:08,520
2755 -listen. You have to listen to this. If
2756 -
2757 -690
2758 -00:32:08,520 ~-~-> 00:32:10,020
2759 -you don't do these things, Michael,
2760 -
2761 -691
2762 -00:32:10,020 ~-~-> 00:32:12,480
2763 -you're going to regret it. Taking
2764 -
2765 -692
2766 -00:32:12,480 ~-~-> 00:32:13,890
2767 -partials is the best thing you're ever
2768 -
2769 -693
2770 -00:32:13,890 ~-~-> 00:32:16,950
2771 -going to do. And taking partials reduces
2772 -
2773 -694
2774 -00:32:16,950 ~-~-> 00:32:21,510
2775 -risk while paying you. Ignore
2776 -
2777 -695
2778 -00:32:21,510 ~-~-> 00:32:25,560
2779 -unprofitable traders advice on risk. If
2780 -
2781 -696
2782 -00:32:25,560 ~-~-> 00:32:29,220
2783 -someone that you read if someone that
2784 -
2785 -697
2786 -00:32:29,220 ~-~-> 00:32:32,610
2787 -you listen to says anything against
2788 -
2789 -698
2790 -00:32:32,610 ~-~-> 00:32:35,970
2791 -what's being said to you right here, I
2792 -
2793 -699
2794 -00:32:35,970 ~-~-> 00:32:37,530
2795 -would put a million dollars on them not
2796 -
2797 -700
2798 -00:32:37,530 ~-~-> 00:32:41,100
2799 -being a profitable trader. Chances are
2800 -
2801 -701
2802 -00:32:41,130 ~-~-> 00:32:42,720
2803 -they have no idea what it is to be
2804 -
2805 -702
2806 -00:32:42,720 ~-~-> 00:32:44,610
2807 -consistent. They probably had hit and
2808 -
2809 -703
2810 -00:32:44,610 ~-~-> 00:32:49,860
2811 -miss type results, but consistent. Long
2812 -
2813 -704
2814 -00:32:49,860 ~-~-> 00:32:52,980
2815 -term trading results come by way of
2816 -
2817 -705
2818 -00:32:53,310 ~-~-> 00:32:56,160
2819 -funding the positions and funding the
2820 -
2821 -706
2822 -00:32:56,160 ~-~-> 00:32:59,040
2823 -trader or as we say it today, pay the
2824 -
2825 -707
2826 -00:32:59,040 ~-~-> 00:33:02,340
2827 -trader If you don't do those things,
2828 -
2829 -708
2830 -00:33:02,370 ~-~-> 00:33:04,110
2831 -there's nothing guaranteed like that
2832 -
2833 -709
2834 -00:33:04,110 ~-~-> 00:33:05,490
2835 -your trades gonna hit your target.
2836 -
2837 -710
2838 -00:33:06,390 ~-~-> 00:33:08,520
2839 -There's absolutely nothing guaranteeing
2840 -
2841 -711
2842 -00:33:08,520 ~-~-> 00:33:11,580
2843 -that and the volatility in today's
2844 -
2845 -712
2846 -00:33:11,580 ~-~-> 00:33:14,820
2847 -world, which, at the time of this
2848 -
2849 -713
2850 -00:33:14,820 ~-~-> 00:33:16,950
2851 -recording, we've seen some pretty
2852 -
2853 -714
2854 -00:33:17,070 ~-~-> 00:33:22,350
2855 -dramatic volatility and your trades
2856 -
2857 -715
2858 -00:33:22,410 ~-~-> 00:33:24,780
2859 -every time you put them on, there's no
2860 -
2861 -716
2862 -00:33:24,780 ~-~-> 00:33:26,550
2863 -guarantee that you're going to hit your
2864 -
2865 -717
2866 -00:33:26,550 ~-~-> 00:33:29,400
2867 -objective. So you have to get to the
2868 -
2869 -718
2870 -00:33:29,400 ~-~-> 00:33:31,740
2871 -point where you trust yourself and you
2872 -
2873 -719
2874 -00:33:31,740 ~-~-> 00:33:33,450
2875 -don't rely on other people's advice
2876 -
2877 -720
2878 -00:33:33,480 ~-~-> 00:33:35,880
2879 -about risk because their advice about
2880 -
2881 -721
2882 -00:33:35,880 ~-~-> 00:33:39,870
2883 -your risk is free to them. There's no
2884 -
2885 -722
2886 -00:33:39,870 ~-~-> 00:33:41,970
2887 -exposure, and the advice they're giving
2888 -
2889 -723
2890 -00:33:41,970 ~-~-> 00:33:45,450
2891 -you probably isn't sound. So stick to
2892 -
2893 -724
2894 -00:33:45,450 ~-~-> 00:33:48,480
2895 -what I'm telling you here. commit to it,
2896 -
2897 -725
2898 -00:33:48,780 ~-~-> 00:33:52,080
2899 -and own it. Your losses are your losses,
2900 -
2901 -726
2902 -00:33:52,350 ~-~-> 00:33:54,660
2903 -your wins are your wins. No one else can
2904 -
2905 -727
2906 -00:33:54,660 ~-~-> 00:33:56,340
2907 -take credit for it, and you shouldn't
2908 -
2909 -728
2910 -00:33:56,340 ~-~-> 00:33:57,120
2911 -try to share credit
2912 -
2913 -729
2914 -00:34:05,700 ~-~-> 00:34:08,310
2915 -Whether a series of consecutive losses,
2916 -
2917 -730
2918 -00:34:11,100 ~-~-> 00:34:13,470
2919 -taking losses is normal Michael, it
2920 -
2921 -731
2922 -00:34:13,470 ~-~-> 00:34:16,620
2923 -doesn't feel good. It sucks. But
2924 -
2925 -732
2926 -00:34:16,860 ~-~-> 00:34:19,530
2927 -unfortunately, there's simply no way
2928 -
2929 -733
2930 -00:34:19,530 ~-~-> 00:34:21,870
2931 -around it. Every trader loses money.
2932 -
2933 -734
2934 -00:34:22,380 ~-~-> 00:34:23,970
2935 -Every trader suffers drawdown.
2936 -
2937 -735
2938 -00:34:24,480 ~-~-> 00:34:27,930
2939 -professional traders manage how much and
2940 -
2941 -736
2942 -00:34:28,350 ~-~-> 00:34:30,150
2943 -they understand they don't know how long
2944 -
2945 -737
2946 -00:34:30,150 ~-~-> 00:34:31,710
2947 -it's going to take before it turns to
2948 -
2949 -738
2950 -00:34:31,920 ~-~-> 00:34:33,600
2951 -equity around in other words, the
2952 -
2953 -739
2954 -00:34:33,600 ~-~-> 00:34:40,650
2955 -recovery you will lose fortunes. Expect
2956 -
2957 -740
2958 -00:34:40,650 ~-~-> 00:34:44,010
2959 -the pain. The faster you can accept this
2960 -
2961 -741
2962 -00:34:44,010 ~-~-> 00:34:45,720
2963 -Michael and warm up to the idea that
2964 -
2965 -742
2966 -00:34:45,720 ~-~-> 00:34:49,200
2967 -imperfection is normal. It's absolutely
2968 -
2969 -743
2970 -00:34:49,290 ~-~-> 00:34:51,600
2971 -normal. And there's going to be booked
2972 -
2973 -744
2974 -00:34:51,600 ~-~-> 00:34:53,220
2975 -as you're going to buy. It's going to
2976 -
2977 -745
2978 -00:34:53,220 ~-~-> 00:34:55,230
2979 -sound like it's the best book in the
2980 -
2981 -746
2982 -00:34:55,230 ~-~-> 00:34:57,240
2983 -world. You're going to buy courses and
2984 -
2985 -747
2986 -00:34:57,240 ~-~-> 00:34:58,260
2987 -it's going to sound like you're going to
2988 -
2989 -748
2990 -00:34:58,260 ~-~-> 00:35:01,500
2991 -get riches on told, this isn't a
2992 -
2993 -749
2994 -00:35:01,500 ~-~-> 00:35:04,500
2995 -volunteer account, all of that stuff is
2996 -
2997 -750
2998 -00:35:04,500 ~-~-> 00:35:07,440
2999 -nonsense. You're going to lose money,
3000 -
3001 -751
3002 -00:35:07,770 ~-~-> 00:35:09,420
3003 -and you're going to have losing streaks.
3004 -
3005 -752
3006 -00:35:09,840 ~-~-> 00:35:12,480
3007 -And the amount of money if we could
3008 -
3009 -753
3010 -00:35:12,510 ~-~-> 00:35:14,700
3011 -total all up and look back, it's
3012 -
3013 -754
3014 -00:35:14,700 ~-~-> 00:35:18,690
3015 -enormous. But it didn't kill you. It
3016 -
3017 -755
3018 -00:35:18,690 ~-~-> 00:35:20,940
3019 -didn't take you out of the game. It did
3020 -
3021 -756
3022 -00:35:20,940 ~-~-> 00:35:23,580
3023 -not defeat you. It beat you up a couple
3024 -
3025 -757
3026 -00:35:23,580 ~-~-> 00:35:26,070
3027 -times pretty bad and your ego is bruised
3028 -
3029 -758
3030 -00:35:26,070 ~-~-> 00:35:30,180
3031 -for well. Truth be told, I still feel a
3032 -
3033 -759
3034 -00:35:30,180 ~-~-> 00:35:33,120
3035 -little pain from it. But you're going to
3036 -
3037 -760
3038 -00:35:33,120 ~-~-> 00:35:35,940
3039 -have to accept the fact that losing
3040 -
3041 -761
3042 -00:35:35,940 ~-~-> 00:35:39,390
3043 -streaks do occur. Now, it's been a long
3044 -
3045 -762
3046 -00:35:39,390 ~-~-> 00:35:42,720
3047 -time since I had 10 losses in a row. But
3048 -
3049 -763
3050 -00:35:42,720 ~-~-> 00:35:44,850
3051 -you're going to have those and there's
3052 -
3053 -764
3054 -00:35:44,850 ~-~-> 00:35:46,470
3055 -nothing wrong with it because it helps
3056 -
3057 -765
3058 -00:35:46,470 ~-~-> 00:35:50,220
3059 -you number one respect risk. Because no
3060 -
3061 -766
3062 -00:35:50,220 ~-~-> 00:35:53,790
3063 -one is exempt from being wrong. I still
3064 -
3065 -767
3066 -00:35:53,790 ~-~-> 00:35:55,950
3067 -get it wrong. And you're going to get it
3068 -
3069 -768
3070 -00:35:55,950 ~-~-> 00:35:58,200
3071 -wrong a lot in the beginning. Prepare
3072 -
3073 -769
3074 -00:35:58,200 ~-~-> 00:36:02,340
3075 -for that. Multiple losses does not prove
3076 -
3077 -770
3078 -00:36:02,550 ~-~-> 00:36:06,060
3079 -it is broken. Your trading method is not
3080 -
3081 -771
3082 -00:36:06,090 ~-~-> 00:36:09,660
3083 -decided in terms of effectiveness. If
3084 -
3085 -772
3086 -00:36:09,780 ~-~-> 00:36:11,520
3087 -you have a series of losing trades, a
3088 -
3089 -773
3090 -00:36:11,520 ~-~-> 00:36:12,990
3091 -series of losing trades is something
3092 -
3093 -774
3094 -00:36:12,990 ~-~-> 00:36:15,270
3095 -that every trading methodology will
3096 -
3097 -775
3098 -00:36:15,360 ~-~-> 00:36:18,150
3099 -eventually will eventually plague every
3100 -
3101 -776
3102 -00:36:18,180 ~-~-> 00:36:21,030
3103 -methodology. There's there is not one
3104 -
3105 -777
3106 -00:36:21,030 ~-~-> 00:36:23,880
3107 -single trader that has not endured this.
3108 -
3109 -778
3110 -00:36:24,090 ~-~-> 00:36:26,100
3111 -It's a normal thing. But when you
3112 -
3113 -779
3114 -00:36:26,280 ~-~-> 00:36:28,560
3115 -experience it, and you have to endure
3116 -
3117 -780
3118 -00:36:28,560 ~-~-> 00:36:30,390
3119 -it, it feels like it's only you right,
3120 -
3121 -781
3122 -00:36:30,390 ~-~-> 00:36:33,810
3123 -Michael, but it's not just you. Truth
3124 -
3125 -782
3126 -00:36:33,810 ~-~-> 00:36:36,480
3127 -is, everyone has it. But the problem is,
3128 -
3129 -783
3130 -00:36:37,020 ~-~-> 00:36:39,000
3131 -the people online and the people you
3132 -
3133 -784
3134 -00:36:39,000 ~-~-> 00:36:40,440
3135 -read about in their books aren't not
3136 -
3137 -785
3138 -00:36:40,440 ~-~-> 00:36:42,240
3139 -really honest with you. They're going to
3140 -
3141 -786
3142 -00:36:42,240 ~-~-> 00:36:44,670
3143 -tell you nothing about their losses.
3144 -
3145 -787
3146 -00:36:44,670 ~-~-> 00:36:45,990
3147 -They're not going to say anything about
3148 -
3149 -788
3150 -00:36:45,990 ~-~-> 00:36:47,310
3151 -losing money. They're only going to
3152 -
3153 -789
3154 -00:36:47,310 ~-~-> 00:36:49,650
3155 -focus on the sweet sugary coated
3156 -
3157 -790
3158 -00:36:49,770 ~-~-> 00:36:51,750
3159 -chapters of their books that says this
3160 -
3161 -791
3162 -00:36:51,750 ~-~-> 00:36:53,670
3163 -is what I got rich with, and you can
3164 -
3165 -792
3166 -00:36:53,670 ~-~-> 00:36:58,770
3167 -too. Stick to the method and risk
3168 -
3169 -793
3170 -00:36:58,800 ~-~-> 00:37:02,130
3171 -reduction. When you have your first
3172 -
3173 -794
3174 -00:37:02,130 ~-~-> 00:37:03,360
3175 -string of losses, Michael, you're going
3176 -
3177 -795
3178 -00:37:03,360 ~-~-> 00:37:05,190
3179 -to want to skip around and try something
3180 -
3181 -796
3182 -00:37:05,190 ~-~-> 00:37:06,360
3183 -new. And that's the reason why you
3184 -
3185 -797
3186 -00:37:06,360 ~-~-> 00:37:08,340
3187 -bought all those books because you were
3188 -
3189 -798
3190 -00:37:08,340 ~-~-> 00:37:11,190
3191 -looking for the Holy Grail. And the
3192 -
3193 -799
3194 -00:37:11,190 ~-~-> 00:37:13,200
3195 -problem with that is every time you went
3196 -
3197 -800
3198 -00:37:13,200 ~-~-> 00:37:15,420
3199 -to a new system, it starts off with
3200 -
3201 -801
3202 -00:37:16,050 ~-~-> 00:37:18,630
3203 -modest wins, and you fall in love it,
3204 -
3205 -802
3206 -00:37:18,630 ~-~-> 00:37:20,280
3207 -you think you figured it out, and then
3208 -
3209 -803
3210 -00:37:20,280 ~-~-> 00:37:22,470
3211 -it goes into a tailspin. And you do
3212 -
3213 -804
3214 -00:37:22,470 ~-~-> 00:37:24,330
3215 -things the same way that I've outlined
3216 -
3217 -805
3218 -00:37:24,360 ~-~-> 00:37:26,550
3219 -in our discussion here. And you lose
3220 -
3221 -806
3222 -00:37:26,550 ~-~-> 00:37:28,320
3223 -track of what you're doing, and lose
3224 -
3225 -807
3226 -00:37:28,320 ~-~-> 00:37:30,750
3227 -control of yourself. And you enter into
3228 -
3229 -808
3230 -00:37:30,750 ~-~-> 00:37:35,880
3231 -a series of losing trades. Your first
3232 -
3233 -809
3234 -00:37:36,000 ~-~-> 00:37:39,030
3235 -impulse is to abandon that method and go
3236 -
3237 -810
3238 -00:37:39,030 ~-~-> 00:37:40,920
3239 -to something else. And the problem with
3240 -
3241 -811
3242 -00:37:40,920 ~-~-> 00:37:43,590
3243 -that is is you do this dozens of times.
3244 -
3245 -812
3246 -00:37:44,490 ~-~-> 00:37:45,960
3247 -Now, if I could grab you by the lapels
3248 -
3249 -813
3250 -00:37:45,960 ~-~-> 00:37:48,210
3251 -and shake you again, it's simply this
3252 -
3253 -814
3254 -00:37:48,450 ~-~-> 00:37:52,470
3255 -stop bouncing around. Focus with one
3256 -
3257 -815
3258 -00:37:52,500 ~-~-> 00:37:54,330
3259 -thing in mind. Work with a higher
3260 -
3261 -816
3262 -00:37:54,330 ~-~-> 00:37:56,340
3263 -timeframe bias work off of one key
3264 -
3265 -817
3266 -00:37:56,340 ~-~-> 00:37:59,100
3267 -level, work off with one market and stay
3268 -
3269 -818
3270 -00:37:59,100 ~-~-> 00:38:01,110
3271 -on one side of the market. until proven,
3272 -
3273 -819
3274 -00:38:01,170 ~-~-> 00:38:02,640
3275 -obviously that you're on the wrong side.
3276 -
3277 -820
3278 -00:38:03,450 ~-~-> 00:38:06,030
3279 -If you manage your risk, don't force the
3280 -
3281 -821
3282 -00:38:06,030 ~-~-> 00:38:10,350
3283 -trades and your patient, that alone can
3284 -
3285 -822
3286 -00:38:10,350 ~-~-> 00:38:12,930
3287 -be profitable. But you have to stick
3288 -
3289 -823
3290 -00:38:12,930 ~-~-> 00:38:15,900
3291 -with the method. And if you don't reduce
3292 -
3293 -824
3294 -00:38:15,900 ~-~-> 00:38:19,200
3295 -the risk when you take losses, you won't
3296 -
3297 -825
3298 -00:38:19,650 ~-~-> 00:38:21,180
3299 -have the ability to stay with the
3300 -
3301 -826
3302 -00:38:21,180 ~-~-> 00:38:24,660
3303 -method. The method eventually it takes
3304 -
3305 -827
3306 -00:38:24,660 ~-~-> 00:38:26,100
3307 -six years for you to figure it out. By
3308 -
3309 -828
3310 -00:38:26,100 ~-~-> 00:38:29,670
3311 -the way, six years, you figure out
3312 -
3313 -829
3314 -00:38:29,670 ~-~-> 00:38:33,090
3315 -exactly who you are as a trader. And it
3316 -
3317 -830
3318 -00:38:33,120 ~-~-> 00:38:35,100
3319 -feels like a lifetime. It feels like
3320 -
3321 -831
3322 -00:38:35,100 ~-~-> 00:38:36,420
3323 -you're never going to get it Michael, I
3324 -
3325 -832
3326 -00:38:36,420 ~-~-> 00:38:39,060
3327 -know I know how it feels. And I wish I
3328 -
3329 -833
3330 -00:38:39,060 ~-~-> 00:38:40,500
3331 -could go back and just tell you to your
3332 -
3333 -834
3334 -00:38:40,500 ~-~-> 00:38:40,950
3335 -face.
3336 -
3337 -835
3338 -00:38:42,300 ~-~-> 00:38:46,740
3339 -Suck it up. Just take it because
3340 -
3341 -836
3342 -00:38:47,010 ~-~-> 00:38:49,650
3343 -everything changes in your sixth year.
3344 -
3345 -837
3346 -00:38:50,430 ~-~-> 00:38:53,820
3347 -Everything changes. It becomes easier.
3348 -
3349 -838
3350 -00:38:54,210 ~-~-> 00:38:57,120
3351 -It becomes far less stressful to put the
3352 -
3353 -839
3354 -00:38:57,120 ~-~-> 00:38:58,470
3355 -trade on you know exactly what you're
3356 -
3357 -840
3358 -00:38:58,470 ~-~-> 00:38:59,730
3359 -looking for. You know where your stop
3360 -
3361 -841
3362 -00:38:59,730 ~-~-> 00:39:01,050
3363 -should be. If you hadn't managed to
3364 -
3365 -842
3366 -00:39:01,050 ~-~-> 00:39:03,000
3367 -stop, you're not over leveraging your
3368 -
3369 -843
3370 -00:39:03,000 ~-~-> 00:39:06,420
3371 -account. You're not forcing trades. You
3372 -
3373 -844
3374 -00:39:06,420 ~-~-> 00:39:08,580
3375 -grow into yourself and the sixth year.
3376 -
3377 -845
3378 -00:39:09,720 ~-~-> 00:39:12,000
3379 -But prior that sixth year, you're like a
3380 -
3381 -846
3382 -00:39:12,000 ~-~-> 00:39:16,380
3383 -wild cowboy. And you just gunslinger and
3384 -
3385 -847
3386 -00:39:16,380 ~-~-> 00:39:18,840
3387 -you're not fearful of anything. You take
3388 -
3389 -848
3390 -00:39:18,840 ~-~-> 00:39:20,460
3391 -on wrist, it's much larger than you
3392 -
3393 -849
3394 -00:39:20,460 ~-~-> 00:39:21,930
3395 -should you trade more times than you
3396 -
3397 -850
3398 -00:39:21,930 ~-~-> 00:39:23,640
3399 -should. And when you have severe
3400 -
3401 -851
3402 -00:39:23,640 ~-~-> 00:39:26,190
3403 -drawdown, it doesn't bother you. And
3404 -
3405 -852
3406 -00:39:26,190 ~-~-> 00:39:29,490
3407 -that's a problem. You weren't afraid to
3408 -
3409 -853
3410 -00:39:29,490 ~-~-> 00:39:33,060
3411 -do anything. And you weren't afraid to
3412 -
3413 -854
3414 -00:39:33,060 ~-~-> 00:39:34,950
3415 -get into the marketplace with huge
3416 -
3417 -855
3418 -00:39:34,950 ~-~-> 00:39:38,190
3419 -leverage, where one trade could wipe out
3420 -
3421 -856
3422 -00:39:38,190 ~-~-> 00:39:42,090
3423 -the account. That's nonsense. And you
3424 -
3425 -857
3426 -00:39:42,090 ~-~-> 00:39:45,060
3427 -don't need to do that to do well. But
3428 -
3429 -858
3430 -00:39:45,060 ~-~-> 00:39:46,770
3431 -you have to stick to a method that's
3432 -
3433 -859
3434 -00:39:47,010 ~-~-> 00:39:50,490
3435 -very consistent. That will have losses
3436 -
3437 -860
3438 -00:39:50,880 ~-~-> 00:39:55,590
3439 -and you manage your risk. You will be
3440 -
3441 -861
3442 -00:39:55,590 ~-~-> 00:39:57,660
3443 -correct more than you're incorrect. It
3444 -
3445 -862
3446 -00:39:57,660 ~-~-> 00:39:59,490
3447 -doesn't feel like it now Michael, but
3448 -
3449 -863
3450 -00:39:59,490 ~-~-> 00:40:01,530
3451 -you will be And the only way that
3452 -
3453 -864
3454 -00:40:01,530 ~-~-> 00:40:03,510
3455 -happens is sticking to the method.
3456 -
3457 -865
3458 -00:40:04,800 ~-~-> 00:40:07,380
3459 -sticking to the method, working from the
3460 -
3461 -866
3462 -00:40:07,380 ~-~-> 00:40:11,070
3463 -macro down to the micro, and being
3464 -
3465 -867
3466 -00:40:11,070 ~-~-> 00:40:14,040
3467 -willing to admit that you're wrong, and
3468 -
3469 -868
3470 -00:40:14,040 ~-~-> 00:40:15,420
3471 -either taking the loss and going home
3472 -
3473 -869
3474 -00:40:15,420 ~-~-> 00:40:19,080
3475 -for the day, or changing direction. And
3476 -
3477 -870
3478 -00:40:19,080 ~-~-> 00:40:21,120
3479 -in the beginning, it's best if you just
3480 -
3481 -871
3482 -00:40:21,120 ~-~-> 00:40:22,380
3483 -take my advice right now, Michael, and
3484 -
3485 -872
3486 -00:40:22,380 ~-~-> 00:40:24,060
3487 -just get out of the marketplace and try
3488 -
3489 -873
3490 -00:40:24,060 ~-~-> 00:40:26,550
3491 -not to do the reversal. Because we lose
3492 -
3493 -874
3494 -00:40:26,550 ~-~-> 00:40:30,900
3495 -a lot of money doing that too. Don't
3496 -
3497 -875
3498 -00:40:30,900 ~-~-> 00:40:32,280
3499 -look for others to measure against.
3500 -
3501 -876
3502 -00:40:33,360 ~-~-> 00:40:34,560
3503 -You're gonna look at other people, other
3504 -
3505 -877
3506 -00:40:34,560 ~-~-> 00:40:37,050
3507 -traders, other authors. And you're going
3508 -
3509 -878
3510 -00:40:37,050 ~-~-> 00:40:39,600
3511 -to try to say that you want to be like
3512 -
3513 -879
3514 -00:40:39,600 ~-~-> 00:40:46,500
3515 -them, and everyone else should not be a
3516 -
3517 -880
3518 -00:40:46,500 ~-~-> 00:40:50,250
3519 -measuring stick to you. Because to have
3520 -
3521 -881
3522 -00:40:50,250 ~-~-> 00:40:53,640
3523 -that stunt your growth, you're saying
3524 -
3525 -882
3526 -00:40:53,640 ~-~-> 00:40:56,760
3527 -that, that person's accomplishments and
3528 -
3529 -883
3530 -00:40:56,790 ~-~-> 00:41:03,510
3531 -accolades. You want them Why focus on
3532 -
3533 -884
3534 -00:41:03,510 ~-~-> 00:41:04,560
3535 -the ones that you're going to do
3536 -
3537 -885
3538 -00:41:04,560 ~-~-> 00:41:07,830
3539 -yourself? The ones that you are going to
3540 -
3541 -886
3542 -00:41:07,830 ~-~-> 00:41:11,400
3543 -achieve those successes and those
3544 -
3545 -887
3546 -00:41:11,400 ~-~-> 00:41:13,230
3547 -failures, because they're stories that
3548 -
3549 -888
3550 -00:41:13,260 ~-~-> 00:41:15,690
3551 -are going to be significant and
3552 -
3553 -889
3554 -00:41:15,690 ~-~-> 00:41:18,030
3555 -meaningful to you. And should anyone sit
3556 -
3557 -890
3558 -00:41:18,030 ~-~-> 00:41:20,700
3559 -down with you that has any interest in
3560 -
3561 -891
3562 -00:41:20,700 ~-~-> 00:41:23,940
3563 -the marketplace. They're gonna be very
3564 -
3565 -892
3566 -00:41:23,940 ~-~-> 00:41:25,290
3567 -interested to hear what you have to say.
3568 -
3569 -893
3570 -00:41:26,310 ~-~-> 00:41:28,920
3571 -You have so many adventures ahead of
3572 -
3573 -894
3574 -00:41:28,920 ~-~-> 00:41:32,640
3575 -you, Michael. But so much of the pain
3576 -
3577 -895
3578 -00:41:33,030 ~-~-> 00:41:38,610
3579 -that we endure, was 120% avoidable. So
3580 -
3581 -896
3582 -00:41:40,260 ~-~-> 00:41:42,750
3583 -hopefully, you've taken my advice here
3584 -
3585 -897
3586 -00:41:44,370 ~-~-> 00:41:46,320
3587 -and are going to work towards trying to
3588 -
3589 -898
3590 -00:41:46,320 ~-~-> 00:41:47,520
3591 -eliminate some of the pain that we
3592 -
3593 -899
3594 -00:41:47,520 ~-~-> 00:41:50,070
3595 -endure. I can tell you as an older man,
3596 -
3597 -900
3598 -00:41:50,130 ~-~-> 00:41:51,810
3599 -I'd greatly appreciate it if you would.
3600 -
3601 -901
3602 -00:41:53,670 ~-~-> 00:41:55,950
3603 -And those of you they were listening. I
3604 -
3605 -902
3606 -00:41:55,950 ~-~-> 00:41:58,320
3607 -hope this was also very beneficial and
3608 -
3609 -903
3610 -00:41:58,320 ~-~-> 00:41:59,580
3611 -profitable for your learning and
3612 -
3613 -904
3614 -00:41:59,580 ~-~-> 00:42:01,800
3615 -development. Until next time, I wish you
3616 -
3617 -905
3618 -00:42:01,800 ~-~-> 00:42:02,700
3619 -good luck and good trading.