Traders there is a psychology to scaling your trading accounts and I'm going to show you exactly the mindset you need to have and the understanding and mental model you need to have to go from $1,000 trading accounts to 10,000 to 100,000 to a million and Beyond I'm going to give you some mental models and some diagrams and some understandings in this video which are going to be incredibly beneficial on your scaling Journey now you've all seen me draw this diagram before and this diagram helps demonstrate and I'm drawing it away in the corner for a
very particular reason because we're going to develop on these principles but this idea helps you differentiate between process-based thinking and outcome based thinking outcome based thinking is down below and outcome based thinking is emotional and Traders who are caught in outcome based thinking are seeking after the pleasure of winning and they're seeking after the benefit of winning that they perceive they're going to get in their mind land and they're caught in outcome based ideas and they take trades because they think this trade is going to be a win and then guess what based on a
sequence of Trades a sample space of Trades a large sample space of Trades 100 trades some of those trades are going to be profitable some are not let's say out of 100 trades 60 of those trades are going to be winners and 40 of those Traders are going to be a loss or 30 of those trades are going to be a loss and 10 of them are going to be break even so if a Trader is seeking after the positive out on each individual trade then on some of those trades on a on a percentage
of those trades they're going to be disappointed because they're going to be seeking after the pleasure of winning they're going to associate a lot of benefit and positive to winning and by law of contrast when that trade's inevitably a loss they're going to feel pain and disappointment and challenge because of the law of contrast this is all outcome based thinking now there's a way to transcend outcome based thinking and go to a higher level of thinking which we call or what I call process-based thinking on this channel and process-based thinking is a state of mind
where irrespective of the outcome you've made the right decision because you've stuck to your trading plan process-based thinking isn't emotional it's rational so this is rational thinking from the prefrontal cortex and the more executive parts of your brain whereas outcome based thinking is emotional from the amydala and you can say because you're activating your amydala you're a bit of an animal when you're in outcome based thinking whereas when you're in process-based thinking you're a human you're logical okay now the way you transcend from outcome based thinking and process based thinking is by having a clear
trading plan mechanical trading plan and using the bulletproof your mindset tool to identify all your expectations and ground those before you take the trade that's that's the way you transcend and then then also working on your subconscious charges that's a little bit more advanced but it's another way to transcend from outcome based to process based so bulletproof your mindset tool and sixf figure trading plan both of those in the description free tools that you can use and you can you can Implement into your training to help you make that transition from outcome based to process
based now that's one individual trade now like I mentioned there's a sequence of Trades and I was thinking how can I draw diagrams better to communicate these principles better and I'm going to share a few that you've never seen before so let's imagine now that we've got a sequence of Trades and this trades a win this trades a win this trades a loss this trades a loss this trades a loss trades a win now you can draw the polarities again now if on this individual trade you're seeking after the win you got expectations of the
win and that trade is a win then you're going to be really happy you're going to be elated you're going to go into the state of Pride and in that state of Pride you're more likely to not stick to your trading plan to minimize risk in the market to take crappy setups and on the next trade you're going into that trade thinking it's a win but lo and behold because of your sample space this trade is actually a loss now this is assuming throughout this whole process you're maintaining a rational mind most Traders don't most
Traders take a win they go up way up into the state of Pride and they start taking shitty trades that aren't part of their plan so I'm assuming as a Trader you have perfect execution with this analogy with this example but most Traders don't so this is actually quite a generous um a generous diagram and the next one you're coming into that trade expecting a win because of your outcome based expectations but again it's a loss so you feel the pain of that because in your mind you've anchored all this pleasure to the outcome to
trade the market didn't give you that it's very disappointing as a result same thing again pain of losing and the next trade you're seeking after a win and you get a win on that one so you puff yourself up into a state of Pride you feel invincible and now you're talking down to the market okay so so this is an example when we draw it out over a larger sample space there are more trades now as a Trader you can transcend this whole dynamic of let's put this yellow line in here of whether the trad's
a win or a loss and going on this emotional journey of winning and then losing and then winning and then feeling the vicisitudes the ups and downs of being a Trader that's caught in outcome based thinking guess what this is called that's called the boom and bus cycle a Trader who does well and do does very very poorly now the way you transcend the boom and bus Cycles in each individual trade using the bulletproof your mindset tool using your mechanical trading plan addressing the subconscious charges of infatuations and resentments like I teach in the 12
week program so on each individual trade you trans transcend from outcome to process-based thinking process-based process based process based process based process based and as a result you aren't experiencing these ups and downs you have more of a steady Journey where you're less emotional as a Trader and you're just more processed based sticking to your trading plan and in that state you achieve consistent profitability so that's how I want you to think about it on each individual trade relative to a sample space okay now let's go a little bit deeper let's take this little individual
trade this idea of winning and losing and let's elaborate on it in terms of uh funding now like I mentioned in the previous video there were different levels there were different spheres of awareness or uh levels that you perceive yourself resonating on and as I draw this out I'm going to try explain this but the easiest way to see where you resonate and or to understand this topic is I used the example in the previous video in terms of a social hierarchy everybody has an understanding of where they fit in the social hierarchy you may
feel that you don't match up to certain individuals who you perceive are much better looking than you or much richer than you or when you're in the dating uh game you may perceive an individual who's way out of your league that's the language you use so we all have an understanding of where we fit on the social hierarchy and that's dependent on the Observer and and how much selfworth that individual has but then there are also individuals that you perceive yourself higher than and and you wouldn't hang around with those individuals but we all intuitively
have a sense of where we fit in the social hierarchy we all have an intuitive sense of how much value we you know provide and have and give to other individuals and there are literally spheres of mind or spheres of awareness that you can resonate on and this is no different with money this is no different with funding you can resonate on a level where you think that you're only worthy of trading $11,000 or a $110,000 account or a $100,000 account or a 1,000k account or another words a million dollar account so there are different
levels of awareness there are different stages that you can resonate at now what does that actually mean and how as a Trader can we go from one level to the next well just like this positive and negative on these Dynamics on on these ones above it's no different with these ones here so when you're at that level of trading $100,000 sorry $1,000 account this is in your mind the blue is now your ceiling so what you're doing is you're managing $1,000 account you're looking up at the $10,000 account and let's say for example you're risking
1% per trade if you're risking 10 uh 1% on a $1,000 account what's that that's $10 if you're risking 1% on $10,000 account you're risking uh $100 right so if you're at the $11,000 account Mark and you're looking at that next level your ceiling in your mind is $10,000 what what that's saying is that you're infatuated with the gain of a $100 trade and you're fearing the loss of a $100 trade so your resonant at this level here looking up at the polarity of trying to seek after and infatuated with that $100 trade and resentful
to the loss of that $100 and that's how you know you're stuck at that level when you're infatuated with the gain of that 100 and you're fearing the loss that 100 if you weren't infatuated with the gain of that 100 and you weren't fearing the loss of that 100 you would resonate at a higher level above that okay so the way you know you're ready to trade 10K is when you're willing to accept the loss of that $100 per trade truly and you can resonate on that level and you wouldn't be phased if you lost
that $100 truly on a deep level you wouldn't be phased if you gained the $100 so then you know you can transcend to that next level and also what actually helps you do that is having a clear mechanical trading plan using the bulletproofing mindset tool free tools in the description and also addressing the subconscious mind which is what I talk about in the 12we program and then when you're now resonating at this level because now you've leared the lessons and you're resonant on being able to lose $100 per trade then now you're trading a $10,000
account and then you're looking up the next ceiling the next ceiling here is the $100,000 account and when you're looking up at the 100,000 guess what life isn't easier life isn't better trading isn't easier or better you have a new set of challenges because the new challenge is now the $1,000 challenge so you can only be ready to trade $100,000 of capital if you're willing to take a $1,000 loss because part of the sample space is you actually experiencing $1,000 loss if you're risky 1% so the way you know you're ready to trade $100,000 in
capital is when you know you're willing to lose $11,000 at a single point in time and not be phased by that and also gain $1,000 and not be phased by that so you have to learn to transcend the polarities of gain and loss and you have to be willing to accept the ,000 loss because if you're not you're not willing to be $1,000 $100,000 trade up think about that many Traders have this fantasy in their mind that if I trade 100,000 I'm only going to make gains but the reality is you're going to make gains
and losses so you're not truly ready to be a $100,000 Trader unless you're truly willing to accept the ,000 loss okay and then when you go through the learning exper learning experiences of that you mature as a Trader you use the bulletproof your mindset tool you work on your psychology you level yourself up you level up your income and your self-worth and your self-confidence and now you're trading $100,000 life isn't better life isn't easier you have the new set of challenges and the new set of challenge now is the million doll challenge which is actually
the $10,000 challenge because you're risking 1% so the new challenge you have is the 10K risk so the way you know you're ready to be a million-dollar Trader is when you're willing to take $10,000 losses and be unphased and take $10,000 wins and be unfaced so this is the psychology of scaling and it's very important to recognize that if you want to be a million doll Trader you have to be willing to take $10,000 losses you can and and and really the way you do that the way you mature as a Trader to be willing
to take those losses and to truly on a deep level understand that and accept that loss is to work on your psychology to work on your mindset to work on your resilience and I have talked a lot about resilience resilience comes from not having expectations in the outcome so party working on your res on your mindset is using the bulletproof your mindset tool having a mechanical trading plan addressing the infatuations and resentments logged in your subconscious mind which what actually happens when you lose that 10,000 or you perceive to lose that 10,000 is it then
triggers your subconscious mind and all these unaddressed associations of oh I'm not good enough or it brings up a deeper loss so it brings up deeper issues which you've left unaddressed so a true seven figure Trader is one who's worked on this subconscious mind is worked on their psychology and as a result is willing to accept those losses because they're unfazed by the outcome they've truly embodied process-based thinking okay so the way you mature as a Trader and trade more and more and you scale up is by going from outcome based thinking to process based
Thinking by implementing these simple tools and by working on your psychology and maturing as an individual okay I wanted to put this video out there because I just want to communicate new ways to understand my teachings and what I share because I know it will help if you if you truly grasp this and you truly grasp the uh the the teachings of going from outcome based to process based and you understand really that you have control over that by simple things that you do and you understand your psychology on a deeper level you understand your
expectations and anchoring and you understand these simple principles and you understand the subconscious mind you have awareness of what's actually getting triggered in the subconscious mind you know how to address that I'm if you have that understanding which is what I teach on this YouTube which is what I teach in my free tools which is what I teach in the 12we program then I know it will help you scale up and be a successful Trader anyway let's leave it there if you found this useful please like comment and subscribe um and share these videos with
your trading communities and trading friends and I look forward to seeing you all in the next video
