The TWISTED Game of Day Trading (and How To Win at It)

let this circle represent 1,000 retail Forex Traders this is what 100,000 Traders would look like this is what 15 million Traders would look like this is the estimated amount of retail Forex traders in the world today and 40% of them enter the market in the last 3 years only and with an average of $5,000 in lifetime deposits and considering that approximately 90% of Traders lose 90% of their money in the first 90 days this would mean that retail Forex Traders lost approximately a staggering $24 billion in the last 3 years only and this number could

be substantially higher that money of cor hasn't disappeared Into The Ether all this time there was a cfd broker taking the other side of those trades AKA taking that money but this is just Forex traders in any cfd Brokers this doesn't include the Forex prop firm industry the retail stock Brokers industry the retail option Brokers industry the cryptocurrency industry other retail trading services like education Bots signals indicators and all the trading scams industry this could easily make the retail trading industry as a whole a $100 billion industry and this is just a very small fraction

of the money that every day flows in financial markets through investment Banks hedge funds Pension funds soving funds big companies University endowments etps hfts cpos AMC's all through the same two big exchanges and through dark pools and then there is you a beginner retail Trader trying to get out of the Matrix The Matrix Matrix Matrix Matrix and get rich fast with Forex from your childhood bedroom hoping that one day you'll finally be able to show it off to your old school friends thanks to the technical analysis course of some 20-year-old pseudo trading Guru sure truth

is you're most likely just a little fish who got itself into the wrong Waters hello well hi most wannabe Traders don't even realize that when you choose trading as a business you're in the world of Finance it's a world where you'll find yourself from the very beginning in a position of extreme disadvantage you're betting against people with PhD in finance and statistical analysis and macroeconomics and it people who are smarter than you has much more money than you more experience than you better technology than you better information than you and have been dominating the world

of Finance for centuries and specifically designed this industry to profit from your ignorance impatience and greed good afternoon Corona financial markets are one of the most important and determining economical and geopolitical battlefields in the world it's a constant war between individuals with unconceivable amounts of money and you think that a 500 a day Forex easy strategy of a young YouTuber will help you come on you have to start being smarter than that shut the up let's face it most likely you've been trying trading for some time now maybe a couple months maybe some years now

but still you're most likely on the losing side of this war and trust me when I tell you it's not just a lack of the proper mindset which is really important but it's also a lack of reliable information if words like matching algorithms or auction Theory or yield curve don't sound familiar to you or if you still believe that one secret algorithm is the root cause of every single market movement in every single Market in every single time frame and that Banks hunt for your stop- loss these are all symptoms that you lack basic market

knowledge and being properly informed in finance is just the bare minimum requirement if you don't have the right information you can't defend yourself and if you can't defend yourself you will be harvested all right there's no mercy in financial markets if they can take your money they will so first step is knowledge and in this channel my goal is to provide you with loads of condensed high quality free Advanced trading knowledge and share with you the experience and insights of me and other highly experienced legit trading Prof professionals so you might want to subscribe in

this video my goal is to open your mind and uncover some disturbing truth about the retail trading industry that keep you a victim of this big casino and what for me are the three most important step that you need to take in order to cut through the noise cut through the and be able to make it in trading but before we start if you seriously want to stop trying to learn trading from fake social media gurus and learn from the world champions of trading instead you might be interested in today's sponsor world world class Edge

as in world class Edge you can literally learn trading from the best traders in the world if I click on Patrick for example Patrick nil has done more than 1,000% with an average of 150% per year and these are all the times he joined it's like nine times and you can learn trading directly from him and his team of Traders including his mentor Tom we're talking about people with five years of track record and amazing performances in all markets click the link in the description to join a free 1hour live masterclass where they we show

you the basics of their approach and present their mentorship programs now back to the video we live in the age of digital money gurus The Wolf of Wall Street movie was born at the very explosion of a new wave of Young Money gurus and fuel the hype for a whole new generation of people trying to win at life and become Millionaires and while self-realization is a very Noble sentiment an unconceivable amount of people started being fed and started believing this concept that somehow there is some secret methods to make a lot of money in an

easy way quickly and without risks and all of them had to find out the hard way that there is no such thing but why does this idea tackle so much into people's minds it's crucial to understand this basic principle to understand why the failure rate in trading is so high as 90 95% why would someone lose their entire life on a clear scam why is there still today an epitome of Ludo maniac losing theirself in front of slot machines why some Traders keep losing and losing for 1 2 3 5 10 years and never stop

the reason of course lies in the way our brain is wired evolutionarily speaking humans fall very easily and deeply respond in their core in the so-called hedonistic bias maximize our pleasure and minimize the pain getting the best result with the lowest effort we want to get in shape but fast and without effort we want to make a lot of money but not risking anything and in fast and easy way and that's what every single online advertisement about business model is leveraging against you if you study any marketing course that's what they will teach you in

the first lesson you have to make people believe that a big transformation of your shitty life not only is possible but it's probable while requiring the lowest effort the lowest time and the lowest risk this is how you hook them on an emotional level so that then you can use flawlessly rational or pseudor rational arguments to lubricate and facilitate that choice the trading and the finance industry as a whole does exactly the same thing it attracts dumb money by emotionally manipulating uninformed and impulsive people which is most people by leveraging on the henis bias and

this happens on every level it happens when a guru tried to sell you their technical analysis course or their signal service when they show you their Lambos when the broker reminds you that there's a news event or when it offers you a high leverage it happens in so many different and subtle ways that sometimes it's even hard to realize the big Casino of the trading industry and the gurus and the Brokers are all doing their best to make you believe that dream so inside the head in the back of the brain of every Trader there

is a little Ludo Maniac who when finally presented the opportunity of making money with trading he loves that you know it's kind of doable it's kind of quick and a radical change of your life is a couple clicks away and at that moment at that exact moment when we chose trading as a business something started that I like to call the greed dilemma and the greed dilemma is this you started trading because you thought it was possible to make a lot of money cuz on paper it is it feels somehow like a glitch in the

system if you got in trading is because you want a nice lifestyle because you want to make millions of dollars then you get into trading and you more or less quickly find out that if you focus on the end goal you lose you have to focus on the process instead you can't just follow your greed in every trade to be successful as a Trader you need to become a cold executioner of this evil mathematical plan of milking this big breast of financial markets so greed was the thing that got you here in the first place

and it's the very thing that is keeping you from success because trading more than any other business out there requires you to emotionally detach from the same result that gave you the motivation to begin with this is the greed dilemma trading at the end of the day it's the most money related thing in the world trading is a war between money what drives Financial Market is greed there is no reason to trade other than greed you're not creating a new something you're not bringing new solutions to the world and sell it to a market to

make a profit you're just a greedy bastard trying to egoistically change your life and that's okay every successful Trader is like this so to reach success you have to play smart with greed instead cuz if you let it control your emotions while you're trading it will be your worst enemy if you keep the right amount of it it can be your best ally positive grade that little ego or egoism that ultimately drives capitalism as a whole is okay it's needed in trading as long as it stays that small fire in you that keeps you from

quitting that fuels your discipline to stay in the right path but as a beginner in order to keep it that way you need to calm the down all right and start rationalizing and playing some smart moves the most important of which is finding an actual Edge in the standard European Roulette there's exactly the same number of red and black slots so you might think the chances of winning are 50/50 but it actually is around 47% cuz there's a catch and that is the green slot the green slot is the edge of the casino that is

what takes your chances below Randomness and in trading the market can go up or can go down so if you trade completely randomly there is technically 50% chances of winning and 50 of losing but the Brokers always keep at least commissions and maybe also a little bit of spread markup that's why in the longterm term if you were to trade completely randomly you would erode all your money out of commission that's why Traders try to increase their chances by finding a statistical Edge an edge is whatever takes you above that 50/50 but how does one

find it and how can you be sure that that edge is valid and will stay valid in the future problem is in the world of Finance there's so many instruments so many tools so many markets so many strategies so many ways to make money to choose from so many that you probably don't even know they exist and just like this because of laziness beginners will choose the first most common most accessible and perceivably easy answer that the internet will provide which usually is Forex cfds everyone today can trade these there's basically Zero Entry barrier you

can open an account with as low as $10 and when a product is free and it's easy to access it means you are the product what beginner Trader don't realize is that the industry Lars them to trade lowgrade unregulated untransparent product like cfds or cryptos while professionals rarely trade cfds only but mostly prefer trading Futures and options and they trade bonds and stocks through macroeconomics order flow and volume data and option data all things that of course are not as sexy and perceivably easy as drawing a couple lines in shape on a chart and cryptos

that will make a th% in two days that's why the average Trader rely on these that's why the big Slaughter happens there beginner Trader don't know that behind a candle which has four pieces of information there is a world of information like order flow that you can use to have a better and more objective understanding of the markets beginner Traders don't understand that new trends are not set by a price breaking a previous high but by market expectations and sentiment on the next economic cycle they mostly have no idea that using options you can manage

risk in a completely different way without the need of a stop loss or without having to guess the direction of the price but using strategies simply based on volatility and the big Finance Bros want to keep it that way they love to keep us fighting about which concepts are better meanwhile they are using tools that actually give them a better Edge so even though it's true that every strategy can work that a simple price action strategy can work or a basic support and resistance strategy with some trend line could potentially work but at the same

times yes you can hit the target with a slingshot as well as with a bow a ballistic bow or a sniper rifle with thermal vision with each one of these tools you have to be the one who aims and shoots properly but if you master the rifle you can probably have a better hit rate and precision that with a slingshot so if choosing the right Financial instrument and the right tools is the first step in finding an edge another step is definitely which asset you should trade usually people start with Forex but with no particular

reason they are led to Forex by the industry as a first asset class but it's not necessarily always the best option big currency pair like euro dollar can spend a lot of time in ranges and they tend to trade the same ranges that are strongly defended by central banks and government while Equity indices like S&P have a more mean-reverting and bullish nature so in periods of high liquidity there are amazing trending markets to follow and in all of this macroeconomics sentiment and fundamentals allow you to place yourself where the volatility and the big trends will

happen and the next important step is choosing the right trading style the right time frame because the industry is constantly pushing traders to do as many trades as possible with the biggest size possible so you move a lot of lots and contracts and pay them loads of commissions and this way it's more easy to trigger a gambling kind of attitude so the more you are scalping the better for the industry and to be clear I have absolutely nothing against scalping I use some scalping strategies myself and my friend and partner Fabio is one of the

greatest scalper I've ever known and he is for the second or third time in the leaderboards of the robins World Cup day trading championships so yes you can have an edge as a scalper but it's definitely not a trading style I would suggest to everybody especially beginners because it requires a very strong psychology and an amazing level of focus and Stress Management plus with most strategies especially algorithmical ones there is a steep inverse correlation between trading speech and Edge Decay because the lower the time frame the higher the competition for short-term edges the higher the

so-called book efficiency because trading in derivatives is a zero sum gain so every Edge is a market inefficiency just think about it if someone keeps winning it means that someone else is losing and eventually they are going to quit or change their trading style so you're going to start having less and less counterparty to your trades so less setups then maybe more people are going to find out about the same Edge that you're using and through time this is going to erode your Edge more and more so scalpers will more often need to readapt and

optimize their strategy based on new market conditions to incur in stop-loss streaks so as a scalper is better to opt for a strategy that has a high win rate the higher the time frame instead the less you will be subject je and victim to Edge DEC and Market noise for most mechanical strategies macr Trend as example even though they can significantly differ from one another are pretty reliable and and don't feel the same level of market efficiency so choosing the right time frame is a very crucial Choice as to where to find an edge huh

and in all of this back testing plays a very important role your Edge should be based on data your risk management should be based on data and so on and so forth but even if Traders desperately try to find an edge still around 70% of Traders lose all of their money and 99% of people who ever traded will never achieve through trading their dream of Financial Freedom and interestingly this means that not only Traders are below Randomness but they have a Negative Edge so by simply taking the trades that they take on the other side

you would be profitable so why does our mind constantly it up maximum result lowest effort chasing pleasure escaping pain the hedonistic principle is defining the very nature of the human mind a beginner Trader opens a trade in search of pleasure and exit a trade too early for escaping pain and fear of pain is the main driving factor of unsuccessful trading being in a winning position that start to consolidate or retrace being in a losing position these are situation where every Trader even the most experienced and seasoned ones will feel some level of cognitive dissonance cognitive

dissonance discussed by legendary Tom hogard in his book best loser win is when you have two conflicting beliefs in your mind he knows your strategy says hold but you want to close you know your strategy says don't open here but you don't want to miss the next move or you want to recover from a previous loss and trading is not about getting every Market move it's not about being always right it's becoming the cold executive of a specific plan a plan that you have written down that you back tested and forward tested which aim is

to take whatever the market can give you with a high probability so so the focus should stay in the process not on the result that's why people luring you with results are not making you a favor because they're literally facilitating your cognitive dissonance you shouldn't focus on the result and the best way to treat your mind as a beginner is to treat it like a puppy I recently got a dog his name is NOA and uh he's is an Australian shepherd and when you first get a puppy you usually keep it in a little cage

or in a confined space so it doesn't go out pooping and peeing and biting stuff and destroying your whole house and a beginner Trader should do the same thing thing with its mind when you open a position don't let your immature and unexperienced and instinctive and impulsive mind it up close it in a cage stay away from the chart set the trade and forget about it if you constantly stay in front of a position there is a way higher chance you are going to it up no matter how great your Edge how great your strategy

how great your back testing data or your demo trading the only way you are going to become a successful Trader is constantly putting yourself through the pain of the cognitive dissonance of a real money Live account open trading position and unfortunately no course can help you with that the only way you can be successful is trading is going through the pain yourself or with a mentor and doing it constantly long enough to not let it affect your trading decision anymore no course can teach you no demo account can prepare you and no signal service can

save you you have to be the one in control of your mind and your money other than self-domestication you should always but especially at the beginning keep tracking your trades to monitor your Edge keep a personal Journal as a therapy for bad trading days not only a technical Journal but a personal one journaling has been proven by clinical studies to be one of the best tools that psychologists prescribe to patients to actively treats different form of mental disorders then keep yourself a little booklet of all your worst trating days and mistakes and have a look

at it before every single session trading is a lone Journey against the market and against yourself from here on you're on your own so good luck ciao [Music]