The ONLY Trading Psychology Concept you need to PROFIT Trading

whenever you mention that you're a day trader the first thing people say is oh you must have nerves of steal or you must be extremely lucky and this exact way of thinking is what separates the 10% of traders that are successful from the 90% who aren't okay as a 7-year day trader I've been through it all from having 25,000 to 30,000 single day profits losing $115,000 in a single hour as a beginner Trader spending thousands of hours charting trading testing reading research documents and from all of that I can very clearly tell you you don't

need nerves of steel or any luck to be successful as a Trader and if you think that you require those things you are already off to the wrong path so in this video I'm going to break down why humans get emotional when we trade all the common problems that come along with those emotions how exactly to fix those problems in the healthy practices you can Implement into your trading to be an actual traitor and not a degenerate Gambler okay so first things first let's identify the problem why the human humans get emotional when they trade

well of course when we're putting money on the line based on something that we think we often times think it's a reflection of our intuition our skill our luck which if you're a competitive human being weigh a lot to you but why is it that some people can consistently trade While others can't let's compare trading for a second to crossing a three-lane highway say for instance each time you make it across you're awarded $10,000 but the catch is you have to cross three lanes of busy highway traffic and in this instance two people are asked

to cross the highway one person is required to wear a blindfold in headphones so that they can't see or hear anything and the other person is left to their own devices to cross the highway however they like now both people are doing the exact same action but now one person has a lot more to worry about than the other so say both of them get 10 tries to cross the highway safely and successfully who do you now think is going to be relying on nerves luck and Superstition and who do you think will be relying

on planning observ ation in timing and yes the Blindfolded person may be able to make it across the street a few times but you know where it's ultimately going to lead once they try it enough times I and this same principle is exactly true in trading and yes you can randomly do it with no plan no training and make some money randomly as a degenerate gambler but the person who has a clear view a clear plan and is trained to execute that exact plan is always going to be the one to make it long term

and that is one of the keys to day trading okay but should we or should we not have emotions when we're trading so when you're uncertain about an outcome and there's something at stake of course it's completely logical for you to be stressed out and emotional and blocking out these motions trying to have nerves of Steel and pretending that they don't exist is essentially you using delusion to trying to trick yourself into being confident when you know you're doing something stupid so instead of hyperfocusing on trying to fight off those emotions or fix your mindset

if you fix the fundamental process you you can let your nerves work normally and know that it's backed by sound trading logic so here's most people's problem with trading when they're getting started often times they find a pattern online they put a small amount of money into an exchange and they immediately start trying to execute trades so even if they get lucky running across the highway blindfolded a few times ultimately it's going to lead to massive losses accounts being blown up then a major desire to learn as much information as they can so that they

never have to lose again again this is completely the wrong mindset to have in trading and expecting this style of random idea generated trading to work out long term is delusional the financial markets are an infinite ocean of opportunities where you have an infinite amount of repeatable actions that will lead to a net profit or a net loss over a certain period of Trades and the markets are largely random just reflecting mass human psychology and expecting to be able to navigate an ocean of unquantifiable variables without very precise datadriven decision-making in rigid trade management skills

is like expecting to throw a bunch of plastic letters on the ground and have it form a full sentence okay this is what I would imagine about 50% of Traders do however there's another 40% of traders that are past that level but aren't able to push themselves into the 10% where you're having consistency in the markets okay from what I've seen a little bit more than half of the Traders are in a position where they have a pattern that they're trading they understand rudimentary position sizing in the way to approach markets but they're really not

precisely quantifying their results optimizing through back testing and being very precise and disciplined with their trade management okay the difference in behaviors between a successful and a non-successful Trader is not that big but that last layer comes down to paying attention to the nitty-gritty details and these nitty-gritty details fall into the category of the rational approach to trading so here's the way that professional Traders look at trading when you're taking trades there's constants and there's variables the con constants are the exact steps that we put in place when the variables in the market give us

the exact signal to do so okay you're not emotionally deciding I think this is going to happen I have a feeling this is going to happen I want to put a random amount of money into this and see if it goes in my direction okay that is gambling and that is not trading okay if you follow the exact same process every time and you measure the outcome of doing the same exact process over 50 to 100 trades you'll no longer need to be brave have nerves of Steel because you already essentially know the outcome of

the trade maybe individual trades will be losers or winners and maybe you'll have a string of winners and a string of losers and during that string of losers you're going to get emotional think that you don't know how to do it that your system's broken that you need to go change something having back tested that system over enough data needs to give you the conviction to focus all your mental energy on the execution technicals and not about questioning your system or questioning whether your ideas are right or wrong or what's going to happen in the

market it already takes enough brain power to do that you don't need to be confusing yourself with listening to other people that are trading emotionally and doing random things in the market to get themselves in trouble okay is a very regimented formula that needs to be followed and that paired with understanding the true fundamentals of rational trading is what separates that 90% of people from the 10% so the whole picture of emotionless trading looks like this you need to be trading A system that you know works over time okay this is obviously the hardest part

at the begin of my journey I probably tested 30 to 40 different systems where I put hundreds of hours of work testing each thing that I thought would work just to find out that after testing it over 100 150 trades that the result was negative okay but even if you have the proper patterns if you're not trading with the proper precision and execution technicals you're still never going to be consistent you need to track your performance consistently and find out where your deficiencies are and where your strong suits are so that you can eliminate the

stupid mistakes and be on your road to profitability and understanding all of this is what now allows me to be able to put on $500 worth of risk per trade to be able to make $1,500 to $2,000 in that trade without even batting an eye this is how we're able to call out these trades in real time and we're doing this on a daily basis in our private tradeing Community okay just this week we alerted out two full profit trades went up 6.67 risk factors so if you're risking $100 that's $667 in profit in a

single week and for me risking $500 it's about $3500 and the team members who are actually following all these processes are doubling their accounts in 4 months turning $1,500 accounts into $10,000 accounts and making 8 to 10 risk factors in a single day but anyways guys I hope this video was insightful regarding emotions in trading if you're still here make sure you give the video a like subscribe to the channel if you like trading and investing follow us on Instagram check out our Discord we have an amazing trading community and until next time I will

see you all in the next video [Music] hey