ICT - If I Knew Then - Part 4 of 4 - How I Would Begin Live Funds.srt

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ICT: Okay, this is part four of the if I

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could go back and tell myself what I

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know now series this is a hypothetical

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conversation with my younger self.

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Alright, so you're looking at all your

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books and such Michael and you're

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preparing your way to get to financial

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freedom. And while you're practicing,

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and the question is going to be is when

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do you leave demo trading or at the time

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when we first started, it was paper

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trading. So when am I ready for live

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funds? It begins with proof of concept.

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proof of concept, you have to show a

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minimum of six months consistency

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managed to keep risk below 3% maximum

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and emotionally whether strings of

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losses

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so went to live demo First and foremost,

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you have to have proof of concept. And

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you're gonna be doing a lot of things,

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you mean buying a lot of books. And I

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wish I could tell you to save all that

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money. Because you're going to have over

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2000 books and less than a dozen of them

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were really worth the time reading. A

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lot of it's going to be regurgitated

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things. So you want to focus on the

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following things. If you do this,

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Michael, you're going to be able to fast

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track your way to get through a lot of

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the hardships that you're that you will

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unknowingly enter yourself into and

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chase and pursue things that are going

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to lead to more loss and confusion. The

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first thing we're going to be focusing

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on is seasonal tendencies. You want to

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ignore the things that Jake Bernstein

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talks about. The more research group

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that puts out seasonal tendencies, this

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person has the best seasonal tendencies

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mrci.com is the website, you're going to

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find that if you stick to that

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gentleman's seasonal tendencies, they're

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going to serve you exceptionally well.

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Quarterly shifts, you're looking for

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moves that move every three to four

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months. Now, the markets always have

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some specific gyration. But focusing

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primarily on the major moves that should

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transpire over the next three to four

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months. If you focus there, you're going

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to find a lot of these mega trades.

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Monthly bias. Try to formulate all of

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the things that you're doing every

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single day to get in sync with the

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monthly bias. What is the monthly by

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select way to do is it likely to trade

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higher is it likely to trade lower

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focusing within that Particular bias

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within a specific quarterly shift within

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a specific seasonal tendency is going to

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give you the highest odds probability of

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success than anything you're going to

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read in any of the books that you buy.

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So, if I could grab you and shake you by

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the lapels, Michael, this is exactly

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what I would stress to you, because

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everything that you're doing prior to

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identifying This is creating the

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problem. All the frustrations, you're

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feeling all the I want to know where

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it's going next. This is the three

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things that helps figure that out for

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you. But it's gonna be years before you

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discern that. But if I could convince

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you right now, this is what I would tell

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you to do. Focus on these top three

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things. Once you have that determined,

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then you can focus on a weekly profile.

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Now if it's bullish, then you're

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expected to have a weekly profile.

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That's bullish at the time of recording,

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your world renowned for knowing and

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teaching how the weekly bias and weekly

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range is typically formed with the

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higher low form generally by Tuesday's

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long and open if not by Wednesday. So if

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you can focus on that seasonal tendency

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that's bullish or bearish, and you're

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looking for that quarterly shift that's

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in align with that seasonal tendency.

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And you have factored into what the

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monthly bias should be in concert with

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those two previous ideas. Your weekly

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profile should be in alignment as well.

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So you're not trying to go against the

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underlying momentum, you're trying to

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get in sync with the institutional order

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flow. Once you identify the seasonal

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tendency, and you're focusing on a

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quarterly shift or a price swing that

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should transpire over the next three to

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four months. And your monthly bias is

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determined to be bullish or bearish

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relative to those seasonal tendencies

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and next quarterly shift and you're

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working with any weekly profile, it's

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bullish or bearish relative to the idea

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of that, what monthly bias and quarterly

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shift and seasonal tendency, the daily

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template. That means what type of day

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are we going to have? Did we just come

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off of a big range day, or a series of

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big range days because we're probably

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going to contract and go into small

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ranges. But if we do go into a small

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range, it's going to be a short term

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event that should lead to a large

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expansion in the direction of the

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monthly bias in expectation is a

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quarterly shift that you're looking for

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and within alignment of the seasonal

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tendency. The Daily template is

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basically your power three concept where

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it's the open, high, low and close

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formation of the daily bar. You're

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looking for accumulation, manipulation

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and distribution.

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You want us spend a lot of time studying

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time of day. Long and open has specific

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characteristics that generally make the

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higher low of the day. Not all the time.

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But most of the time. New York is a

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continuation of whatever has transpired

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in London. Unless you've reached a

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higher timeframe level or key level that

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may introduce a new york session market

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reversal profile. London closes

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typically the opposite end of the daily

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range, or will be opposing the higher

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low formed in London open. Focusing on a

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time of day, within all these specific

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studies are going to put you in the

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highest order of probability doesn't

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mean you're going to not take losses you

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will. But sticking to this in this

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protocol is going to lead to the longest

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stretch of consistency and continuity in

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your trading and you're ever going to

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find doing anything else.

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Minimum six months consistency. Now, I

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understand you're excited. And you see

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there's a lot of things ahead of you,

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Michael. And you've made that plan of

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retiring at 40. And newsflash, you get

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there. But try not to rush profits.

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There's going to be a transition. You

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don't know when it's going to occur. But

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it is when you start trading the bond

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market. The bond market starts serving

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you very well. And then you discover

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that you can do far more per week than

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you could with just one lot by using

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more money management. And the

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enticement is going to be get there

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quicker, get there quicker, and you

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discover the power of compound interest,

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but Don't, at that time, understand the

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depths that it can take you down with.

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It's very powerful, but it's a double

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edged sword. So if I could change your

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mind about something speaking to you

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now, you should do your best to try not

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to be profitable or rush profits. And

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what I mean by that, taking more trades

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than necessary. In other words, your

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trade frequency, Michael, when you first

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start is going to be horrendous. There's

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going to be days where you actually have

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taken 30 entries. And none of them are

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profitable. Because you're going back

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and forth, back and forth, thinking

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you're going to get the right direction,

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right? And it's not going to work out

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for you. This is the reason why you have

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to work with the previous information or

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you work from a macro perspective down.

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If you do that. You will also be more

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controlled over your decision. Making

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and you won't be in a rush to make

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profits. rushing to profit is the

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surest, fastest way to lose money. It

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doesn't feel like it, especially when

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you're buying all these books because

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all these books are sugarcoating

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everything. They're over simplifying

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everything and giving you a false sense

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of security because of these indicators.

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And the indicators are not the secret.

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Those indicators are just the red

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herring and the gimmick that that books

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using to sell. Keep them on the return

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as the focus. Now you're going to be

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trading starting with commodities, and

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you're focusing on the dollar amount,

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how much can I make today? How much

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money can I make this week? And as soon

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as you take that first loss for the

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month, this is when you go into a

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tailspin because you're in a hurry to

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get that back. You don't like taking

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losses and I want you to understand

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something 27 years from now You're going

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to be able to look back and count up an

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enormous amount of money that if you

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collectively add it all up, all of your

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losses are enormous. And there is

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nothing wrong with that, because every

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trader loses. But you got to keep the

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focus on the monthly return. It doesn't

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make a difference if you have three

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losing trading days out of the week, or

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you had no winning positive days for the

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week, but you come out ahead on a

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monthly if your monthly return is

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consistently higher than 1%. You're

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doing exceptionally well. It doesn't

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feel like it. It doesn't sound like it.

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You think that everyone that super elite

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is doing 500% per month because that's

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the impression that these books that

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you're buying and wasting money on

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Michael are giving you. They don't do

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that. They aren't making those types of

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returns. And you want to be able to

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focus primarily on what you've done over

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the course of Four weeks or so. And that

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result in that return is your goal.

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You're not trying to get an everyday

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percentage, you're not trying to get an

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every week percentage. You're looking at

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how you close each month, and this month

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positive because if it's positive,

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that's better than a loss. If you

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continuously do that you're going in the

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right direction. But trying not to rush

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profits and try not to look beyond the

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scope of what your monthly return is.

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Invite the possibility of being wrong. I

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understand obsessive compulsive

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disorder. We struggle with it and we

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still struggle with it in our 40s but I

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want you to understand something

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Michael,

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you are not going to be right 100% of

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the time and early on the first couple

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years. You're spending time trying to

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perfect and eliminate the possibility of

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you being wrong. And it's a farce don't

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do that you're going to waste time doing

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That there is no perfect person, there

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is no perfect trader. And you still,

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with almost three decades of experience,

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I'm speaking to you now, you are still

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not perfect, your exits aren't perfect,

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your entries aren't perfect all the

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time. Perfection is still going to evade

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you, but you do not need perfection when

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you're wrong. Many times that's going to

271
00:12:22,800 --> 00:12:25,170
lead to a more profitable trade or

272
00:12:25,740 --> 00:12:26,880
identifying that you're wrong and

273
00:12:26,880 --> 00:12:28,260
getting out and staying on the sidelines

274
00:12:28,260 --> 00:12:31,800
preserves your capital. by preserving

275
00:12:31,800 --> 00:12:34,230
your capital, you don't go into spending

276
00:12:34,950 --> 00:12:37,140
your mental capital in the mental

277
00:12:37,140 --> 00:12:38,910
capital is how much money you're really

278
00:12:38,910 --> 00:12:41,880
willing to lose. You may have $20,000 in

279
00:12:41,880 --> 00:12:43,590
that trading account, but you're really

280
00:12:43,590 --> 00:12:46,110
not comfortable if you lost 5000 of it.

281
00:12:46,440 --> 00:12:47,760
So what are you really trading with

282
00:12:48,570 --> 00:12:52,140
$5,000 but the $20,000 is just lipstick.

283
00:12:52,410 --> 00:12:55,170
The extra 15,000 is padding you hope you

284
00:12:55,170 --> 00:12:57,660
never go into and as soon as you do,

285
00:12:58,320 --> 00:13:00,000
everything gets abandoned the trailer

286
00:13:00,000 --> 00:13:02,700
Plan, methodology. All of that goes up

287
00:13:02,700 --> 00:13:04,590
door risk management, trade management,

288
00:13:04,950 --> 00:13:07,350
all of it tossed out because now you're

289
00:13:07,350 --> 00:13:10,170
emotional, and you can't act that way.

290
00:13:11,760 --> 00:13:13,530
Invite the possibility of being wrong,

291
00:13:13,590 --> 00:13:16,710
identify the characteristics that leads

292
00:13:16,710 --> 00:13:20,040
to your trade idea being wrong, identify

293
00:13:20,040 --> 00:13:22,110
it before you even put the trade on. So

294
00:13:22,110 --> 00:13:25,350
in other words, what negates the idea

295
00:13:25,740 --> 00:13:29,160
what makes it most likely to fail. If

296
00:13:29,160 --> 00:13:31,350
those trades show signatures of that

297
00:13:31,380 --> 00:13:34,470
occurring, do not hesitate to simply

298
00:13:34,470 --> 00:13:36,660
close the trade, preserve capital. If

299
00:13:36,660 --> 00:13:40,050
you do that, you will be on a fast track

300
00:13:40,050 --> 00:13:44,070
to preserving your mental capacity, your

301
00:13:44,490 --> 00:13:47,010
willingness to stay studying, even

302
00:13:47,010 --> 00:13:49,380
though you're not taking trades. If you

303
00:13:49,380 --> 00:13:50,880
don't do this, you're going to find

304
00:13:50,880 --> 00:13:53,760
yourself going into the longest tailspin

305
00:13:53,760 --> 00:13:57,300
in terms of pursuing something that is

306
00:13:57,300 --> 00:13:59,760
eluding you because you're causing it.

307
00:14:00,540 --> 00:14:02,910
You're trying to be perfect. And it

308
00:14:02,910 --> 00:14:04,920
won't exist, it won't, it won't happen,

309
00:14:04,920 --> 00:14:07,260
you're not going to be there that will

310
00:14:07,260 --> 00:14:12,270
always evade. Avoid chasing parabolic

311
00:14:12,270 --> 00:14:18,180
equity searches. I can recall many of

312
00:14:18,180 --> 00:14:21,630
the things that we did. And there's some

313
00:14:21,630 --> 00:14:24,870
of those instances where it worked out

314
00:14:24,870 --> 00:14:28,230
in our favor. But most of the time, it

315
00:14:28,230 --> 00:14:32,370
didn't. So, avoiding parabolic equity

316
00:14:32,370 --> 00:14:34,680
surges is one of the things that it's

317
00:14:34,680 --> 00:14:35,730
going to be very hard for you because

318
00:14:35,730 --> 00:14:37,830
the first one you get with Chicago Board

319
00:14:37,830 --> 00:14:41,370
trade wheat, that sets the stage for you

320
00:14:41,370 --> 00:14:43,350
thinking that you can do this every

321
00:14:43,350 --> 00:14:45,360
week. And it doesn't work that way.

322
00:14:45,810 --> 00:14:48,930
Avoid trying to allow your account to

323
00:14:48,960 --> 00:14:51,930
grow exponentially with these parabolic

324
00:14:51,930 --> 00:14:54,060
equity surges where you're getting

325
00:14:54,870 --> 00:14:59,190
hundred plus returns quickly. Try not to

326
00:14:59,190 --> 00:15:02,670
do that. Number one, you have to have

327
00:15:02,670 --> 00:15:04,710
the right market conditions. You have to

328
00:15:04,710 --> 00:15:07,050
have everything on point your entry,

329
00:15:07,050 --> 00:15:08,880
your stop your trade management, your

330
00:15:08,880 --> 00:15:12,180
exits, there are so many things that

331
00:15:12,180 --> 00:15:14,370
have to line up for you to deliver with

332
00:15:14,400 --> 00:15:17,700
Olympic level equity surges on a

333
00:15:17,700 --> 00:15:21,870
consistent basis. It's not realistic

334
00:15:22,230 --> 00:15:26,430
going into this. Now. It's going to

335
00:15:26,430 --> 00:15:27,810
eventually get to the point where you

336
00:15:27,810 --> 00:15:29,850
can see these things and predict them.

337
00:15:30,060 --> 00:15:32,400
But it won't be in the first few years.

338
00:15:33,450 --> 00:15:34,860
You're going to make the mistake in

339
00:15:34,860 --> 00:15:35,940
believing that you're better than you

340
00:15:35,940 --> 00:15:40,020
really are far before you really get on

341
00:15:40,020 --> 00:15:41,220
what it is you should be doing as a

342
00:15:41,220 --> 00:15:45,810
trader. Reduce leverage when taking

343
00:15:45,810 --> 00:15:48,960
losses. Now this is something that I can

344
00:15:48,960 --> 00:15:51,810
remember we did very poorly, when we

345
00:15:51,810 --> 00:15:55,860
would take losses. You would increase

346
00:15:56,490 --> 00:15:58,260
the amount of contracts trying to

347
00:15:58,260 --> 00:16:00,420
recapture and get more equity. Back in

348
00:16:00,420 --> 00:16:02,640
the account, because we didn't like the

349
00:16:02,640 --> 00:16:04,110
way it felt when money was taken out,

350
00:16:04,200 --> 00:16:05,730
not only did we not like the fact that

351
00:16:05,730 --> 00:16:08,580
we were wrong, but we didn't like the

352
00:16:08,580 --> 00:16:10,140
fact that we were wrong and we were

353
00:16:10,440 --> 00:16:15,720
robbed of equity. And we personify that

354
00:16:16,680 --> 00:16:18,960
and made it someone or something that

355
00:16:18,960 --> 00:16:21,930
we're going to get revenge on. And that

356
00:16:22,020 --> 00:16:24,090
I can look back and say that that was

357
00:16:24,180 --> 00:16:27,900
90% of the biggest losses and the

358
00:16:27,900 --> 00:16:30,870
biggest and longest streaks of losing

359
00:16:30,870 --> 00:16:33,540
trades were linked to that very thing.

360
00:16:36,090 --> 00:16:38,850
If we would have just simply reduced the

361
00:16:38,850 --> 00:16:41,070
leverage. For instance, if we were

362
00:16:41,070 --> 00:16:43,890
trading 10 contracts of the standard

363
00:16:43,890 --> 00:16:45,180
Poor's futures contract,

364
00:16:45,810 --> 00:16:49,110
and we took a loss of 2%. The next trade

365
00:16:49,170 --> 00:16:53,730
should be five lots. And if we take a

366
00:16:53,730 --> 00:16:56,970
loss there, next trade should be to lots

367
00:16:57,930 --> 00:17:00,000
and keep reducing until you make 50%

368
00:17:00,000 --> 00:17:02,910
Have a previous loss back, then you can

369
00:17:02,910 --> 00:17:05,220
go back up one scale in the money

370
00:17:05,220 --> 00:17:06,870
management and risk trade management.

371
00:17:08,130 --> 00:17:10,020
But if you don't do this, you're going

372
00:17:10,020 --> 00:17:13,560
to have a wild roller coaster equity

373
00:17:13,560 --> 00:17:15,840
swings and many accounts being dusted.

374
00:17:16,980 --> 00:17:19,080
If you don't do this, you're not going

375
00:17:19,080 --> 00:17:21,060
to build in plateaus and your equity,

376
00:17:22,200 --> 00:17:23,340
there's going to be a series of winning

377
00:17:23,340 --> 00:17:25,050
trades. And then what's going to

378
00:17:25,050 --> 00:17:26,490
eventually come that you don't like to

379
00:17:26,580 --> 00:17:28,680
admit, it's going to be a losing trade

380
00:17:28,680 --> 00:17:31,680
or two or three. And if you keep risking

381
00:17:31,680 --> 00:17:34,080
the same amount, your equity drawdown is

382
00:17:34,080 --> 00:17:36,240
going to be notable and horrendous if

383
00:17:36,240 --> 00:17:39,300
you don't control yourself. So you want

384
00:17:39,300 --> 00:17:41,040
to reduce the leverage after taking

385
00:17:41,040 --> 00:17:43,860
losses because then the inevitable is

386
00:17:43,860 --> 00:17:44,730
going to happen. You're gonna have a

387
00:17:44,730 --> 00:17:46,560
series of losses. But if you keep

388
00:17:46,560 --> 00:17:51,150
risking 2% 2% 2% 2% it's going to have

389
00:17:51,330 --> 00:17:54,450
greater impact on the drawdown that you

390
00:17:54,450 --> 00:17:57,060
suffer. And it's much more work on your

391
00:17:57,060 --> 00:18:03,960
part to recapture that. Be patient will

392
00:18:03,960 --> 00:18:08,460
draw down recovery. Losing still sucks.

393
00:18:08,880 --> 00:18:10,710
When you get stopped out, it's not fun.

394
00:18:10,920 --> 00:18:12,450
But it's a business transaction,

395
00:18:12,660 --> 00:18:16,350
eventually, around late 20s, you're

396
00:18:16,350 --> 00:18:18,510
going to see it as just that. It still

397
00:18:18,510 --> 00:18:20,040
won't feel good. And you'll hate that

398
00:18:20,040 --> 00:18:22,470
you have them. But you'll come to grips

399
00:18:22,470 --> 00:18:24,780
with a little bit. But be patient

400
00:18:24,780 --> 00:18:26,040
withdrawal data recovery. In other

401
00:18:26,040 --> 00:18:28,050
words, don't rush to get it back. If you

402
00:18:28,050 --> 00:18:30,390
have a day trade or two, that shares a

403
00:18:30,390 --> 00:18:33,330
net loss for the day, stop the next

404
00:18:33,330 --> 00:18:35,400
trading day. It's very easy to start

405
00:18:35,430 --> 00:18:37,620
building that back up and don't try to

406
00:18:37,620 --> 00:18:40,800
get it back in one trade. You have made

407
00:18:40,800 --> 00:18:43,170
so many errors I can tell you right now,

408
00:18:43,530 --> 00:18:46,020
at least three dozen of them and they

409
00:18:46,020 --> 00:18:50,730
were all in soybeans. Those trades ended

410
00:18:50,730 --> 00:18:53,370
up being parlayed into huge losses and

411
00:18:53,370 --> 00:18:55,530
to lost accounts. You killed two

412
00:18:55,530 --> 00:18:59,670
accounts. You don't see it yet. Oh, but

413
00:18:59,670 --> 00:19:02,640
it's coming. You will have blown to

414
00:19:02,820 --> 00:19:05,700
futures accounts trading the soybean

415
00:19:05,700 --> 00:19:08,760
market, because you're trying to get

416
00:19:08,760 --> 00:19:11,790
back your losses, and you get caught in

417
00:19:11,790 --> 00:19:14,580
a couple limit moves. And you can't get

418
00:19:14,580 --> 00:19:17,010
out of those. And you end up suffering

419
00:19:17,010 --> 00:19:18,870
and blowing out the account. Because you

420
00:19:18,870 --> 00:19:22,320
are not being patient. You're not going

421
00:19:22,320 --> 00:19:28,170
to be patient. And you suffer the draw

422
00:19:28,170 --> 00:19:32,940
down. And the recovery of it is not only

423
00:19:32,940 --> 00:19:35,070
timeline basis. In other words, there's

424
00:19:35,070 --> 00:19:37,710
no deadline that you have to meet to get

425
00:19:37,710 --> 00:19:41,580
that money back. Immediate is what you

426
00:19:41,580 --> 00:19:43,800
feel like it has to be, but that's the

427
00:19:43,800 --> 00:19:46,860
trap. That's the trap. You have to avoid

428
00:19:46,860 --> 00:19:49,590
that. Michael, if you don't listen to

429
00:19:49,590 --> 00:19:52,140
me, you're going to find yourself

430
00:19:52,470 --> 00:19:57,330
chasing loss after loss after loss and

431
00:19:57,330 --> 00:19:58,710
you're not going to be thinking clearly

432
00:19:58,920 --> 00:20:01,260
you're going to get even more insanely

433
00:20:01,260 --> 00:20:03,390
re in raged, okay. It's what it's going

434
00:20:03,390 --> 00:20:06,510
to become. Because you think that the

435
00:20:06,510 --> 00:20:07,800
brokers on the other side clicking

436
00:20:07,800 --> 00:20:11,340
buttons just to get you and I can tell

437
00:20:11,340 --> 00:20:14,010
you honestly, looking back, you were

438
00:20:14,010 --> 00:20:16,410
just doing it wrong and doing it wrong a

439
00:20:16,410 --> 00:20:21,420
lot and very frequently pursuing

440
00:20:21,420 --> 00:20:25,320
something that is very easily accepted.

441
00:20:25,710 --> 00:20:28,440
Take the loss, go home for the day and

442
00:20:28,440 --> 00:20:31,890
see what happens tomorrow. If you don't

443
00:20:31,890 --> 00:20:36,180
do that, you're going to dust multiple

444
00:20:36,180 --> 00:20:36,720
accounts

445
00:20:44,370 --> 00:20:46,440
managed to keep risk below 3% maximum.

446
00:20:49,530 --> 00:20:52,890
Avoid large risk for large wins. Now,

447
00:20:53,790 --> 00:20:56,760
when you first start trading, you're

448
00:20:56,760 --> 00:20:58,290
going to read a couple things in

449
00:20:58,710 --> 00:21:01,860
commodity magazine. And it's going to

450
00:21:01,860 --> 00:21:03,840
inspire you to trade with a little bit

451
00:21:03,840 --> 00:21:07,050
larger risk. And you're going to pull

452
00:21:07,050 --> 00:21:08,970
out your calculator, and you're gonna be

453
00:21:08,970 --> 00:21:10,920
sitting at lunch while at work. And

454
00:21:10,920 --> 00:21:12,630
you're gonna think if I take my account,

455
00:21:12,840 --> 00:21:18,300
and I risk 810 12% per trade, I can do

456
00:21:18,300 --> 00:21:21,090
this or that in the time of the end of

457
00:21:21,090 --> 00:21:23,280
the month. If I do that 12 months in a

458
00:21:23,280 --> 00:21:26,790
row, I'll be able to buy this or that.

459
00:21:28,380 --> 00:21:34,710
Don't do that. Avoid large risk. You're

460
00:21:34,710 --> 00:21:36,390
not going to be consistent in the

461
00:21:36,390 --> 00:21:38,580
beginning. You think you are because the

462
00:21:38,580 --> 00:21:41,280
books that you bought are telling you

463
00:21:41,490 --> 00:21:43,230
that it's just simply just do this, do

464
00:21:43,230 --> 00:21:44,730
that and when the indicator says this,

465
00:21:44,730 --> 00:21:45,870
that's when you buy them an indicator

466
00:21:45,870 --> 00:21:48,450
says this, you sell and you're going to

467
00:21:48,450 --> 00:21:49,890
find out very quickly that this doesn't

468
00:21:49,890 --> 00:21:52,710
work that way. It's it's not that easy.

469
00:21:55,170 --> 00:22:00,000
Expect to make velocity your edge after

470
00:22:00,000 --> 00:22:03,690
spending almost 28 years doing this, I

471
00:22:03,690 --> 00:22:06,600
can tell you everyone still thinks that

472
00:22:06,780 --> 00:22:10,920
having a large are multiple. Okay or

473
00:22:10,920 --> 00:22:13,620
risk reward model is the secret. And

474
00:22:13,620 --> 00:22:15,660
that's not the secret. The secret is

475
00:22:15,840 --> 00:22:19,110
velocity doing something over and over

476
00:22:19,110 --> 00:22:21,660
and over again, that has a unexpected

477
00:22:21,660 --> 00:22:24,420
result that is high in probability and

478
00:22:24,420 --> 00:22:27,840
flipping the equity. That's velocity.

479
00:22:29,520 --> 00:22:33,780
You will in your mid 30s, discover how

480
00:22:34,020 --> 00:22:37,230
you can take the same account balance.

481
00:22:38,070 --> 00:22:40,290
And while other traders and other

482
00:22:40,290 --> 00:22:42,570
methodology may be focusing on trying to

483
00:22:42,570 --> 00:22:46,770
get 10 to one or more, you can do

484
00:22:46,770 --> 00:22:50,430
exceptionally well doing one to one two

485
00:22:50,430 --> 00:22:54,330
to one because you can use the lower

486
00:22:54,330 --> 00:22:56,940
timeframes that you don't appreciate

487
00:22:56,940 --> 00:23:00,000
right now. But they are the same market

488
00:23:00,840 --> 00:23:05,850
with dozens of setups per day, but

489
00:23:05,850 --> 00:23:07,260
you're not in a position when you first

490
00:23:07,260 --> 00:23:09,330
start, did start doing those types of

491
00:23:09,330 --> 00:23:12,450
trades. It's going to be a little bit

492
00:23:12,450 --> 00:23:14,970
time before you understand that but

493
00:23:15,360 --> 00:23:18,240
velocity and turning over the equity

494
00:23:18,270 --> 00:23:21,780
without risking a lot. That beats every

495
00:23:21,780 --> 00:23:24,150
race, it beats every trading contest. It

496
00:23:24,150 --> 00:23:28,020
beats every thing, period, because

497
00:23:28,020 --> 00:23:32,220
you're using the rate of turnover in the

498
00:23:32,220 --> 00:23:34,680
equity, because you're taking more

499
00:23:34,680 --> 00:23:37,410
frequency. And you're looking at a

500
00:23:37,410 --> 00:23:40,200
result that is measurable. It's a

501
00:23:40,200 --> 00:23:42,750
repeating reoccurring pattern that forms

502
00:23:42,810 --> 00:23:44,280
every single day multiple times

503
00:23:44,280 --> 00:23:47,940
intraday. So it's not that you want to

504
00:23:47,940 --> 00:23:50,280
take a larger risk to make bigger money,

505
00:23:50,310 --> 00:23:54,030
you want to take surgical strikes, and

506
00:23:54,030 --> 00:23:57,090
parlay the account up using velocity and

507
00:23:57,090 --> 00:24:00,570
it's just a higher frequency trade. The

508
00:24:00,570 --> 00:24:03,660
same reoccurring pattern, want to lower

509
00:24:03,660 --> 00:24:06,810
timeframe. And while other traders are

510
00:24:06,810 --> 00:24:09,330
waiting for their 10 to 121 30 to one,

511
00:24:10,740 --> 00:24:13,530
that money can only make whatever the

512
00:24:13,530 --> 00:24:15,840
maximum, our multiple is going to be for

513
00:24:15,840 --> 00:24:18,450
it. But within those long or higher

514
00:24:18,450 --> 00:24:20,760
timeframe price swings, you're going to

515
00:24:20,760 --> 00:24:23,490
be in there, moving back and forth, both

516
00:24:23,490 --> 00:24:25,410
directions, most of the money being

517
00:24:25,920 --> 00:24:27,030
allocated to the side of the

518
00:24:27,030 --> 00:24:29,910
marketplace, it's going to move in, and

519
00:24:30,150 --> 00:24:32,880
still trading counter trend intraday

520
00:24:33,060 --> 00:24:35,310
with less than the risk that you're

521
00:24:35,310 --> 00:24:36,840
using when you're trading in sync with

522
00:24:36,840 --> 00:24:40,440
the market. And you will destroy the 10

523
00:24:40,440 --> 00:24:43,290
to 121 31 are multiple type trading

524
00:24:43,290 --> 00:24:46,530
models. It's simple math, but you're

525
00:24:46,530 --> 00:24:48,150
going to be distracted Michael, by all

526
00:24:48,150 --> 00:24:50,220
these books and all these things.

527
00:24:50,700 --> 00:24:52,680
They're going to draw your attention

528
00:24:52,680 --> 00:24:55,290
away from the simplest of things. Is it

529
00:24:55,290 --> 00:24:56,910
going on at all? Is it going to go down?

530
00:24:57,300 --> 00:24:59,100
How far is going to go up? How far is it

531
00:24:59,100 --> 00:25:01,320
going to go down? At what point is it

532
00:25:01,410 --> 00:25:02,850
incorrect and I want to be out of the

533
00:25:02,850 --> 00:25:07,110
trade. Now, that same criteria just

534
00:25:07,110 --> 00:25:08,640
applied to a one minute or five minute

535
00:25:08,640 --> 00:25:12,120
chart, you can take that same equity and

536
00:25:12,120 --> 00:25:14,640
flip it over and over and over and over

537
00:25:14,640 --> 00:25:19,230
again. within the span of, say a weekly

538
00:25:19,230 --> 00:25:21,390
range, it takes five candles to form.

539
00:25:22,710 --> 00:25:26,370
You may have 30 to 40 trades for the

540
00:25:26,370 --> 00:25:28,050
course of the week, and they're all one

541
00:25:28,050 --> 00:25:31,140
minute setups. But if each one of those

542
00:25:31,140 --> 00:25:37,800
pay out 2% minimum nothing's going to

543
00:25:37,800 --> 00:25:41,670
keep up with that. Consider the

544
00:25:41,670 --> 00:25:43,230
negatives of forcing setups.

545
00:25:45,570 --> 00:25:47,130
Your impatience Michael in the

546
00:25:47,130 --> 00:25:48,690
beginning, because the first trade you

547
00:25:48,690 --> 00:25:51,060
put on, you lose 50% of your activity

548
00:25:51,600 --> 00:25:53,580
and your trading options and you didn't

549
00:25:53,910 --> 00:25:56,340
fully understand what you're doing. And

550
00:25:56,940 --> 00:25:59,700
option trading is not just simply being

551
00:25:59,700 --> 00:26:01,200
right On the marketplace, you have to

552
00:26:01,200 --> 00:26:04,140
beat the time decay as well. You'll

553
00:26:04,140 --> 00:26:05,820
learn about that later on with some

554
00:26:05,820 --> 00:26:08,310
pain. But consider the negatives of

555
00:26:08,310 --> 00:26:10,350
forcing the setups because you're going

556
00:26:10,350 --> 00:26:12,360
to try to force it, you're going to have

557
00:26:12,360 --> 00:26:13,860
a level that you want to be buying it,

558
00:26:13,890 --> 00:26:16,560
but you are impatient. And you're going

559
00:26:16,560 --> 00:26:20,340
to try to buy it ahead of time. And that

560
00:26:20,370 --> 00:26:25,020
is a problem. Because you aren't very

561
00:26:25,140 --> 00:26:27,690
versed in proper stock placement. In the

562
00:26:27,690 --> 00:26:30,780
beginning, Michael, you're going to have

563
00:26:30,780 --> 00:26:32,760
your stock too tight because you don't

564
00:26:32,760 --> 00:26:35,160
want to risk a lot of money. But you are

565
00:26:35,160 --> 00:26:38,280
risking 5% on the trade, and that's too

566
00:26:38,280 --> 00:26:41,010
much. You're risking way too much. But

567
00:26:41,010 --> 00:26:43,290
you're forcing the entry sooner than it

568
00:26:43,290 --> 00:26:46,890
should be taken. And it is done at a

569
00:26:46,890 --> 00:26:48,930
time where you're using the maximum

570
00:26:48,930 --> 00:26:51,510
amount of leverage which strangles the

571
00:26:51,510 --> 00:26:52,710
trade because you have to have a very

572
00:26:52,710 --> 00:26:56,220
short, tight stop in a trade that you

573
00:26:56,250 --> 00:26:58,980
entered too soon. Before the level you

574
00:26:58,980 --> 00:27:02,010
want to buy in So, when you're doing

575
00:27:02,010 --> 00:27:05,730
that, you're convincing yourself that

576
00:27:05,730 --> 00:27:08,430
you're going to be right. And ignoring

577
00:27:08,970 --> 00:27:10,860
all of the things that you're doing

578
00:27:10,860 --> 00:27:15,240
wrong that is inviting failure. You have

579
00:27:15,240 --> 00:27:17,730
to consider the negatives of it. What is

580
00:27:17,760 --> 00:27:19,530
the impact of that? Number one, you're

581
00:27:19,590 --> 00:27:22,320
teaching yourself that not following the

582
00:27:22,320 --> 00:27:26,940
rules is okay. That trading ahead of the

583
00:27:26,940 --> 00:27:30,810
level before it's made a touch or a

584
00:27:30,810 --> 00:27:34,140
retest to it. That that's normal. That's

585
00:27:34,140 --> 00:27:35,430
something you should be doing when it

586
00:27:35,430 --> 00:27:37,650
doesn't fit within the model. If you've

587
00:27:37,830 --> 00:27:39,900
identified a level and you want to buy

588
00:27:39,900 --> 00:27:41,490
at that level, why are you buying before

589
00:27:41,490 --> 00:27:44,790
the levels hit? Because you're forcing

590
00:27:44,790 --> 00:27:46,710
the trade. you're impatient. You want to

591
00:27:46,710 --> 00:27:47,970
get in because you're afraid that you're

592
00:27:47,970 --> 00:27:49,800
going to miss the move. It might not hit

593
00:27:49,800 --> 00:27:52,200
your level. Well, guess what? So what?

594
00:27:53,220 --> 00:27:56,160
There's going to be 10s of thousands of

595
00:27:56,160 --> 00:28:00,450
trades in your career, and your Not

596
00:28:00,480 --> 00:28:06,090
going to miss the big moneymaker.

597
00:28:06,690 --> 00:28:10,170
Because of not getting in early. Getting

598
00:28:10,170 --> 00:28:12,720
in early is always always I can tell you

599
00:28:12,720 --> 00:28:15,570
now looking back has always been an

600
00:28:15,570 --> 00:28:19,350
error. Always. It never works out in our

601
00:28:19,350 --> 00:28:24,600
favor. So don't do it. Taking partials

602
00:28:24,600 --> 00:28:26,940
is the best thing you will ever do. And

603
00:28:26,940 --> 00:28:30,420
I'll say it again. Taking partials is

604
00:28:30,420 --> 00:28:33,570
the best thing that you're ever going to

605
00:28:33,570 --> 00:28:37,860
do, Michael, the biggest hurdle in your

606
00:28:37,980 --> 00:28:42,090
development is being comfortable with

607
00:28:42,090 --> 00:28:45,060
holding the trade. You're going to

608
00:28:45,060 --> 00:28:47,070
struggle with that. It's going to cause

609
00:28:47,070 --> 00:28:48,870
anxiety. You're going to have heart

610
00:28:48,870 --> 00:28:50,310
palpitations, you're going to have

611
00:28:50,490 --> 00:28:51,750
shortness of breath, you're going to

612
00:28:51,780 --> 00:28:52,860
feel like you're going to faint a couple

613
00:28:52,860 --> 00:28:54,300
times you're going to vomit a couple

614
00:28:54,300 --> 00:28:56,310
times, because some of the trades that

615
00:28:56,310 --> 00:28:59,700
you're in in the s&p are huge and this

616
00:28:59,700 --> 00:29:03,630
discussion little tick is making you go

617
00:29:03,630 --> 00:29:06,780
nuts. wait around for it, it happens.

618
00:29:08,640 --> 00:29:12,330
But taking partials off, while the trade

619
00:29:12,330 --> 00:29:16,860
is developing, number one, it feels good

620
00:29:16,890 --> 00:29:19,590
to take something off. It feels good.

621
00:29:20,190 --> 00:29:21,750
And it feels like you're doing something

622
00:29:21,750 --> 00:29:23,100
because even when you're in a trade

623
00:29:23,100 --> 00:29:24,960
that's winning, you're going to find

624
00:29:24,960 --> 00:29:29,010
that it is like holding on to a

625
00:29:29,010 --> 00:29:31,050
motorcycle at 200 plus miles an hour.

626
00:29:32,130 --> 00:29:35,610
It's it's a incredible rush. But you'll

627
00:29:35,610 --> 00:29:38,370
also want to ride the end sometimes

628
00:29:38,400 --> 00:29:40,680
quickly. And when you get in a trade,

629
00:29:41,040 --> 00:29:43,470
and it's moving in your favor, you want

630
00:29:43,470 --> 00:29:45,030
to get there quick, you want to get

631
00:29:45,030 --> 00:29:46,470
there and get you out of the trade and

632
00:29:46,470 --> 00:29:47,730
profit because you don't like the

633
00:29:47,730 --> 00:29:49,470
discomfort of not knowing if it's gonna

634
00:29:49,470 --> 00:29:52,590
hit your target. So the way you're going

635
00:29:52,590 --> 00:29:55,650
to best deal with that and have the

636
00:29:55,650 --> 00:29:57,960
ability to hold on to the trade longer

637
00:29:57,960 --> 00:30:00,300
into fruition or to get stopped out. Cuz

638
00:30:00,300 --> 00:30:04,560
that's part of the plan too. You have to

639
00:30:04,560 --> 00:30:06,630
take something off. So if the trade

640
00:30:06,630 --> 00:30:08,730
moves 10 points in your favor, take 10

641
00:30:08,730 --> 00:30:11,820
points off with something. Even if it's

642
00:30:11,820 --> 00:30:14,220
one contract or one lot, take something

643
00:30:14,220 --> 00:30:16,830
off. It feels good. It's that cookie

644
00:30:16,830 --> 00:30:19,620
that reward. When it moves a little bit

645
00:30:19,620 --> 00:30:22,980
more, take something off again. And

646
00:30:22,980 --> 00:30:25,350
you're going to find by doing that, it

647
00:30:25,350 --> 00:30:28,710
helps alleviate the pain and uncertainty

648
00:30:28,710 --> 00:30:30,480
of holding on to that trade until it

649
00:30:30,480 --> 00:30:34,920
gets to your profit objective. Taking

650
00:30:34,920 --> 00:30:37,170
partials reduces risk while paying.

651
00:30:39,750 --> 00:30:41,100
You're going to worry in the beginning

652
00:30:41,130 --> 00:30:42,660
about getting stopped out all the time.

653
00:30:43,080 --> 00:30:44,250
And you're going to do a lot of

654
00:30:44,250 --> 00:30:46,140
acrobatics. With your your stop loss,

655
00:30:46,140 --> 00:30:47,160
you're going to move it back when you

656
00:30:47,160 --> 00:30:48,930
think it's dropping against you. or

657
00:30:48,930 --> 00:30:50,700
raise it up when it's rising back up

658
00:30:50,700 --> 00:30:52,770
towards your stop. And you're going to

659
00:30:52,770 --> 00:30:54,780
drive yourself crazy doing that you have

660
00:30:54,780 --> 00:30:56,190
to commit to whatever your stop is going

661
00:30:56,190 --> 00:30:57,810
to be based on sound money management

662
00:30:57,810 --> 00:31:01,080
and risk and Once the trade starts

663
00:31:01,080 --> 00:31:03,150
moving in your favor, take partials off.

664
00:31:03,390 --> 00:31:05,550
By doing that, not only does it fund you

665
00:31:05,550 --> 00:31:09,060
as the trader, but it also reduces the

666
00:31:09,060 --> 00:31:10,830
risk. Because every time you take

667
00:31:10,830 --> 00:31:12,570
something off, you're reducing the

668
00:31:12,570 --> 00:31:14,490
exposure to your account and your and

669
00:31:14,490 --> 00:31:17,250
your mental capital will withstand. So

670
00:31:17,250 --> 00:31:19,860
you have to constantly manage not only

671
00:31:19,860 --> 00:31:21,480
the trade, but you have to manage the

672
00:31:21,480 --> 00:31:24,570
trader. And it's expectation, your

673
00:31:24,570 --> 00:31:27,150
expectation is you put the trade on

674
00:31:27,150 --> 00:31:29,340
because you want to be profitable. So

675
00:31:29,340 --> 00:31:32,220
what's the best thing that you can do as

676
00:31:32,220 --> 00:31:33,810
a trader, when the trades in profit,

677
00:31:34,530 --> 00:31:37,710
take something off, don't be fearful and

678
00:31:37,710 --> 00:31:40,230
don't allow greed to say I have to hold

679
00:31:40,230 --> 00:31:42,060
on for everything. It's all or nothing,

680
00:31:42,270 --> 00:31:43,260
because I'm going to tell you, Michael,

681
00:31:43,260 --> 00:31:44,670
when you do that, the first couple

682
00:31:44,670 --> 00:31:46,140
years, you're going to be in some

683
00:31:46,140 --> 00:31:48,930
trades. For instance, coffee, you're

684
00:31:48,930 --> 00:31:50,010
going to be holding on to a coffee

685
00:31:50,010 --> 00:31:52,800
trade. That's going to move a lot. It's

686
00:31:52,800 --> 00:31:58,080
going to move a lot and $35,000 turns

687
00:31:58,080 --> 00:32:01,500
into an $8,000 loss. Because you wanted

688
00:32:01,500 --> 00:32:05,790
to get your full target. You have to

689
00:32:05,790 --> 00:32:08,520
listen. You have to listen to this. If

690
00:32:08,520 --> 00:32:10,020
you don't do these things, Michael,

691
00:32:10,020 --> 00:32:12,480
you're going to regret it. Taking

692
00:32:12,480 --> 00:32:13,890
partials is the best thing you're ever

693
00:32:13,890 --> 00:32:16,950
going to do. And taking partials reduces

694
00:32:16,950 --> 00:32:21,510
risk while paying you. Ignore

695
00:32:21,510 --> 00:32:25,560
unprofitable traders advice on risk. If

696
00:32:25,560 --> 00:32:29,220
someone that you read if someone that

697
00:32:29,220 --> 00:32:32,610
you listen to says anything against

698
00:32:32,610 --> 00:32:35,970
what's being said to you right here, I

699
00:32:35,970 --> 00:32:37,530
would put a million dollars on them not

700
00:32:37,530 --> 00:32:41,100
being a profitable trader. Chances are

701
00:32:41,130 --> 00:32:42,720
they have no idea what it is to be

702
00:32:42,720 --> 00:32:44,610
consistent. They probably had hit and

703
00:32:44,610 --> 00:32:49,860
miss type results, but consistent. Long

704
00:32:49,860 --> 00:32:52,980
term trading results come by way of

705
00:32:53,310 --> 00:32:56,160
funding the positions and funding the

706
00:32:56,160 --> 00:32:59,040
trader or as we say it today, pay the

707
00:32:59,040 --> 00:33:02,340
trader If you don't do those things,

708
00:33:02,370 --> 00:33:04,110
there's nothing guaranteed like that

709
00:33:04,110 --> 00:33:05,490
your trades gonna hit your target.

710
00:33:06,390 --> 00:33:08,520
There's absolutely nothing guaranteeing

711
00:33:08,520 --> 00:33:11,580
that and the volatility in today's

712
00:33:11,580 --> 00:33:14,820
world, which, at the time of this

713
00:33:14,820 --> 00:33:16,950
recording, we've seen some pretty

714
00:33:17,070 --> 00:33:22,350
dramatic volatility and your trades

715
00:33:22,410 --> 00:33:24,780
every time you put them on, there's no

716
00:33:24,780 --> 00:33:26,550
guarantee that you're going to hit your

717
00:33:26,550 --> 00:33:29,400
objective. So you have to get to the

718
00:33:29,400 --> 00:33:31,740
point where you trust yourself and you

719
00:33:31,740 --> 00:33:33,450
don't rely on other people's advice

720
00:33:33,480 --> 00:33:35,880
about risk because their advice about

721
00:33:35,880 --> 00:33:39,870
your risk is free to them. There's no

722
00:33:39,870 --> 00:33:41,970
exposure, and the advice they're giving

723
00:33:41,970 --> 00:33:45,450
you probably isn't sound. So stick to

724
00:33:45,450 --> 00:33:48,480
what I'm telling you here. commit to it,

725
00:33:48,780 --> 00:33:52,080
and own it. Your losses are your losses,

726
00:33:52,350 --> 00:33:54,660
your wins are your wins. No one else can

727
00:33:54,660 --> 00:33:56,340
take credit for it, and you shouldn't

728
00:33:56,340 --> 00:33:57,120
try to share credit

729
00:34:05,700 --> 00:34:08,310
Whether a series of consecutive losses,

730
00:34:11,100 --> 00:34:13,470
taking losses is normal Michael, it

731
00:34:13,470 --> 00:34:16,620
doesn't feel good. It sucks. But

732
00:34:16,860 --> 00:34:19,530
unfortunately, there's simply no way

733
00:34:19,530 --> 00:34:21,870
around it. Every trader loses money.

734
00:34:22,380 --> 00:34:23,970
Every trader suffers drawdown.

735
00:34:24,480 --> 00:34:27,930
professional traders manage how much and

736
00:34:28,350 --> 00:34:30,150
they understand they don't know how long

737
00:34:30,150 --> 00:34:31,710
it's going to take before it turns to

738
00:34:31,920 --> 00:34:33,600
equity around in other words, the

739
00:34:33,600 --> 00:34:40,650
recovery you will lose fortunes. Expect

740
00:34:40,650 --> 00:34:44,010
the pain. The faster you can accept this

741
00:34:44,010 --> 00:34:45,720
Michael and warm up to the idea that

742
00:34:45,720 --> 00:34:49,200
imperfection is normal. It's absolutely

743
00:34:49,290 --> 00:34:51,600
normal. And there's going to be booked

744
00:34:51,600 --> 00:34:53,220
as you're going to buy. It's going to

745
00:34:53,220 --> 00:34:55,230
sound like it's the best book in the

746
00:34:55,230 --> 00:34:57,240
world. You're going to buy courses and

747
00:34:57,240 --> 00:34:58,260
it's going to sound like you're going to

748
00:34:58,260 --> 00:35:01,500
get riches on told, this isn't a

749
00:35:01,500 --> 00:35:04,500
volunteer account, all of that stuff is

750
00:35:04,500 --> 00:35:07,440
nonsense. You're going to lose money,

751
00:35:07,770 --> 00:35:09,420
and you're going to have losing streaks.

752
00:35:09,840 --> 00:35:12,480
And the amount of money if we could

753
00:35:12,510 --> 00:35:14,700
total all up and look back, it's

754
00:35:14,700 --> 00:35:18,690
enormous. But it didn't kill you. It

755
00:35:18,690 --> 00:35:20,940
didn't take you out of the game. It did

756
00:35:20,940 --> 00:35:23,580
not defeat you. It beat you up a couple

757
00:35:23,580 --> 00:35:26,070
times pretty bad and your ego is bruised

758
00:35:26,070 --> 00:35:30,180
for well. Truth be told, I still feel a

759
00:35:30,180 --> 00:35:33,120
little pain from it. But you're going to

760
00:35:33,120 --> 00:35:35,940
have to accept the fact that losing

761
00:35:35,940 --> 00:35:39,390
streaks do occur. Now, it's been a long

762
00:35:39,390 --> 00:35:42,720
time since I had 10 losses in a row. But

763
00:35:42,720 --> 00:35:44,850
you're going to have those and there's

764
00:35:44,850 --> 00:35:46,470
nothing wrong with it because it helps

765
00:35:46,470 --> 00:35:50,220
you number one respect risk. Because no

766
00:35:50,220 --> 00:35:53,790
one is exempt from being wrong. I still

767
00:35:53,790 --> 00:35:55,950
get it wrong. And you're going to get it

768
00:35:55,950 --> 00:35:58,200
wrong a lot in the beginning. Prepare

769
00:35:58,200 --> 00:36:02,340
for that. Multiple losses does not prove

770
00:36:02,550 --> 00:36:06,060
it is broken. Your trading method is not

771
00:36:06,090 --> 00:36:09,660
decided in terms of effectiveness. If

772
00:36:09,780 --> 00:36:11,520
you have a series of losing trades, a

773
00:36:11,520 --> 00:36:12,990
series of losing trades is something

774
00:36:12,990 --> 00:36:15,270
that every trading methodology will

775
00:36:15,360 --> 00:36:18,150
eventually will eventually plague every

776
00:36:18,180 --> 00:36:21,030
methodology. There's there is not one

777
00:36:21,030 --> 00:36:23,880
single trader that has not endured this.

778
00:36:24,090 --> 00:36:26,100
It's a normal thing. But when you

779
00:36:26,280 --> 00:36:28,560
experience it, and you have to endure

780
00:36:28,560 --> 00:36:30,390
it, it feels like it's only you right,

781
00:36:30,390 --> 00:36:33,810
Michael, but it's not just you. Truth

782
00:36:33,810 --> 00:36:36,480
is, everyone has it. But the problem is,

783
00:36:37,020 --> 00:36:39,000
the people online and the people you

784
00:36:39,000 --> 00:36:40,440
read about in their books aren't not

785
00:36:40,440 --> 00:36:42,240
really honest with you. They're going to

786
00:36:42,240 --> 00:36:44,670
tell you nothing about their losses.

787
00:36:44,670 --> 00:36:45,990
They're not going to say anything about

788
00:36:45,990 --> 00:36:47,310
losing money. They're only going to

789
00:36:47,310 --> 00:36:49,650
focus on the sweet sugary coated

790
00:36:49,770 --> 00:36:51,750
chapters of their books that says this

791
00:36:51,750 --> 00:36:53,670
is what I got rich with, and you can

792
00:36:53,670 --> 00:36:58,770
too. Stick to the method and risk

793
00:36:58,800 --> 00:37:02,130
reduction. When you have your first

794
00:37:02,130 --> 00:37:03,360
string of losses, Michael, you're going

795
00:37:03,360 --> 00:37:05,190
to want to skip around and try something

796
00:37:05,190 --> 00:37:06,360
new. And that's the reason why you

797
00:37:06,360 --> 00:37:08,340
bought all those books because you were

798
00:37:08,340 --> 00:37:11,190
looking for the Holy Grail. And the

799
00:37:11,190 --> 00:37:13,200
problem with that is every time you went

800
00:37:13,200 --> 00:37:15,420
to a new system, it starts off with

801
00:37:16,050 --> 00:37:18,630
modest wins, and you fall in love it,

802
00:37:18,630 --> 00:37:20,280
you think you figured it out, and then

803
00:37:20,280 --> 00:37:22,470
it goes into a tailspin. And you do

804
00:37:22,470 --> 00:37:24,330
things the same way that I've outlined

805
00:37:24,360 --> 00:37:26,550
in our discussion here. And you lose

806
00:37:26,550 --> 00:37:28,320
track of what you're doing, and lose

807
00:37:28,320 --> 00:37:30,750
control of yourself. And you enter into

808
00:37:30,750 --> 00:37:35,880
a series of losing trades. Your first

809
00:37:36,000 --> 00:37:39,030
impulse is to abandon that method and go

810
00:37:39,030 --> 00:37:40,920
to something else. And the problem with

811
00:37:40,920 --> 00:37:43,590
that is is you do this dozens of times.

812
00:37:44,490 --> 00:37:45,960
Now, if I could grab you by the lapels

813
00:37:45,960 --> 00:37:48,210
and shake you again, it's simply this

814
00:37:48,450 --> 00:37:52,470
stop bouncing around. Focus with one

815
00:37:52,500 --> 00:37:54,330
thing in mind. Work with a higher

816
00:37:54,330 --> 00:37:56,340
timeframe bias work off of one key

817
00:37:56,340 --> 00:37:59,100
level, work off with one market and stay

818
00:37:59,100 --> 00:38:01,110
on one side of the market. until proven,

819
00:38:01,170 --> 00:38:02,640
obviously that you're on the wrong side.

820
00:38:03,450 --> 00:38:06,030
If you manage your risk, don't force the

821
00:38:06,030 --> 00:38:10,350
trades and your patient, that alone can

822
00:38:10,350 --> 00:38:12,930
be profitable. But you have to stick

823
00:38:12,930 --> 00:38:15,900
with the method. And if you don't reduce

824
00:38:15,900 --> 00:38:19,200
the risk when you take losses, you won't

825
00:38:19,650 --> 00:38:21,180
have the ability to stay with the

826
00:38:21,180 --> 00:38:24,660
method. The method eventually it takes

827
00:38:24,660 --> 00:38:26,100
six years for you to figure it out. By

828
00:38:26,100 --> 00:38:29,670
the way, six years, you figure out

829
00:38:29,670 --> 00:38:33,090
exactly who you are as a trader. And it

830
00:38:33,120 --> 00:38:35,100
feels like a lifetime. It feels like

831
00:38:35,100 --> 00:38:36,420
you're never going to get it Michael, I

832
00:38:36,420 --> 00:38:39,060
know I know how it feels. And I wish I

833
00:38:39,060 --> 00:38:40,500
could go back and just tell you to your

834
00:38:40,500 --> 00:38:40,950
face.

835
00:38:42,300 --> 00:38:46,740
Suck it up. Just take it because

836
00:38:47,010 --> 00:38:49,650
everything changes in your sixth year.

837
00:38:50,430 --> 00:38:53,820
Everything changes. It becomes easier.

838
00:38:54,210 --> 00:38:57,120
It becomes far less stressful to put the

839
00:38:57,120 --> 00:38:58,470
trade on you know exactly what you're

840
00:38:58,470 --> 00:38:59,730
looking for. You know where your stop

841
00:38:59,730 --> 00:39:01,050
should be. If you hadn't managed to

842
00:39:01,050 --> 00:39:03,000
stop, you're not over leveraging your

843
00:39:03,000 --> 00:39:06,420
account. You're not forcing trades. You

844
00:39:06,420 --> 00:39:08,580
grow into yourself and the sixth year.

845
00:39:09,720 --> 00:39:12,000
But prior that sixth year, you're like a

846
00:39:12,000 --> 00:39:16,380
wild cowboy. And you just gunslinger and

847
00:39:16,380 --> 00:39:18,840
you're not fearful of anything. You take

848
00:39:18,840 --> 00:39:20,460
on wrist, it's much larger than you

849
00:39:20,460 --> 00:39:21,930
should you trade more times than you

850
00:39:21,930 --> 00:39:23,640
should. And when you have severe

851
00:39:23,640 --> 00:39:26,190
drawdown, it doesn't bother you. And

852
00:39:26,190 --> 00:39:29,490
that's a problem. You weren't afraid to

853
00:39:29,490 --> 00:39:33,060
do anything. And you weren't afraid to

854
00:39:33,060 --> 00:39:34,950
get into the marketplace with huge

855
00:39:34,950 --> 00:39:38,190
leverage, where one trade could wipe out

856
00:39:38,190 --> 00:39:42,090
the account. That's nonsense. And you

857
00:39:42,090 --> 00:39:45,060
don't need to do that to do well. But

858
00:39:45,060 --> 00:39:46,770
you have to stick to a method that's

859
00:39:47,010 --> 00:39:50,490
very consistent. That will have losses

860
00:39:50,880 --> 00:39:55,590
and you manage your risk. You will be

861
00:39:55,590 --> 00:39:57,660
correct more than you're incorrect. It

862
00:39:57,660 --> 00:39:59,490
doesn't feel like it now Michael, but

863
00:39:59,490 --> 00:40:01,530
you will be And the only way that

864
00:40:01,530 --> 00:40:03,510
happens is sticking to the method.

865
00:40:04,800 --> 00:40:07,380
sticking to the method, working from the

866
00:40:07,380 --> 00:40:11,070
macro down to the micro, and being

867
00:40:11,070 --> 00:40:14,040
willing to admit that you're wrong, and

868
00:40:14,040 --> 00:40:15,420
either taking the loss and going home

869
00:40:15,420 --> 00:40:19,080
for the day, or changing direction. And

870
00:40:19,080 --> 00:40:21,120
in the beginning, it's best if you just

871
00:40:21,120 --> 00:40:22,380
take my advice right now, Michael, and

872
00:40:22,380 --> 00:40:24,060
just get out of the marketplace and try

873
00:40:24,060 --> 00:40:26,550
not to do the reversal. Because we lose

874
00:40:26,550 --> 00:40:30,900
a lot of money doing that too. Don't

875
00:40:30,900 --> 00:40:32,280
look for others to measure against.

876
00:40:33,360 --> 00:40:34,560
You're gonna look at other people, other

877
00:40:34,560 --> 00:40:37,050
traders, other authors. And you're going

878
00:40:37,050 --> 00:40:39,600
to try to say that you want to be like

879
00:40:39,600 --> 00:40:46,500
them, and everyone else should not be a

880
00:40:46,500 --> 00:40:50,250
measuring stick to you. Because to have

881
00:40:50,250 --> 00:40:53,640
that stunt your growth, you're saying

882
00:40:53,640 --> 00:40:56,760
that, that person's accomplishments and

883
00:40:56,790 --> 00:41:03,510
accolades. You want them Why focus on

884
00:41:03,510 --> 00:41:04,560
the ones that you're going to do

885
00:41:04,560 --> 00:41:07,830
yourself? The ones that you are going to

886
00:41:07,830 --> 00:41:11,400
achieve those successes and those

887
00:41:11,400 --> 00:41:13,230
failures, because they're stories that

888
00:41:13,260 --> 00:41:15,690
are going to be significant and

889
00:41:15,690 --> 00:41:18,030
meaningful to you. And should anyone sit

890
00:41:18,030 --> 00:41:20,700
down with you that has any interest in

891
00:41:20,700 --> 00:41:23,940
the marketplace. They're gonna be very

892
00:41:23,940 --> 00:41:25,290
interested to hear what you have to say.

893
00:41:26,310 --> 00:41:28,920
You have so many adventures ahead of

894
00:41:28,920 --> 00:41:32,640
you, Michael. But so much of the pain

895
00:41:33,030 --> 00:41:38,610
that we endure, was 120% avoidable. So

896
00:41:40,260 --> 00:41:42,750
hopefully, you've taken my advice here

897
00:41:44,370 --> 00:41:46,320
and are going to work towards trying to

898
00:41:46,320 --> 00:41:47,520
eliminate some of the pain that we

899
00:41:47,520 --> 00:41:50,070
endure. I can tell you as an older man,

900
00:41:50,130 --> 00:41:51,810
I'd greatly appreciate it if you would.

901
00:41:53,670 --> 00:41:55,950
And those of you they were listening. I

902
00:41:55,950 --> 00:41:58,320
hope this was also very beneficial and

903
00:41:58,320 --> 00:41:59,580
profitable for your learning and

904
00:41:59,580 --> 00:42:01,800
development. Until next time, I wish you

905
00:42:01,800 --> 00:42:02,700
good luck and good trading.