Mark Douglas Discussed Trading Psychology, Risk and much more

[Music] good morning Traders thank you for joining us on this WTV special on putting your Mind Over the market I'm Jared Levy Chief option strategist here on wise trade TV and using psychology in today's market is not an easy thing to master it takes a lot of discipline and skill to become a consistent and successful Trader here to talk to you about what you need to do in order to Put your mind over the market is Mark Douglas Mark has been a successful Trader since the 80s and has written two books on trading psychology both

trading in the zone and the discipl trader you've heard me talk about them many times here on WTV and he is here today to help you become successful Traders Mark good morning how's it going good morning Jared glad to be here and I hope I can be of assistance to uh some of your Traders who are viewing right now Mark you know last time we were together was it wise Fest and uh had a lot of fun I'm really excited you're here with me today thanks so well let's get started first of all you know

one of the things one of the main things one of the main issues that I see all the time is that people don't use their method to its full potential in other words there's a negative correlation between where the what the trader ends up with and what he Could have had if he just followed his methodology uh in your DVD program you refer to this as the profit Gap this is a problem you refer to it as a profit Gap and I think it's one of the least understood concepts of trading can you address this

a little bit this profit Gap yeah that's actually a really good place to start because because I think that more than anything what your viewers want or what your customers want are consistent results they want to be Able to produce an income that you know that they can rely on from their trading and I'm sure that that you know many of your viewers have already realized that that's getting a steady income is not such an easy task yeah and everyone seems to get trapped thinking that because trading is easy or because it's easy to find

yourself in a winning trade which many people do right you know that they think it's also easy to become a consistent winner right and and and you Know it took a long time before it actually dawned on me that winning and being a consistent winner are two complete different animals two different things and in some ways there isn't even a relationship so between the two it almost seems like there's no relationship between the two that's what you're saying right yeah that's a real hard mental barrier to breakr mainly because you know we it's so easy

to find yourself in a winning trade and that and That it because winning actually requires no skill at all in other words unless you unless you consider that you know the being able to click a mouse button or you know tap a pad is a skill and and we don't have to have a reason or good reason or actually any reason to put your cursor on the buy or sell button and then immediately find ourselves in a winning trade and it could be a monster of a winning trade and what did it take what what

what kind Of uh you know what kind of skills would it take to actually experience this absolutely not yeah so so it' be natural to take the leap from well if it's this easy to win it can't be that much harder to make a steady income like you said it's that easy to click the mouse if me to sit there and make 5 or $10,000 then it must be pretty darn easy for me to sit there and make a living out of this you know and that's what I thought for a long time but that

is not the case no no And that's exactly how I started out too and I know I unlike not unlike a lot of other people who who are willing to let's say give up a real high-paying career to be a Trader because they thought it couldn't be that hard so so what makes consistency so challenging what's the what's the big hurdle there well we're going to obviously we're going to get into that but but at the most General level I'm going to say that it requires learning the type of skills That people just simply aren't

used to learning mental skills mental skills yeah exactly in other words it requires mental skills most people assume that because their technical method gives them a signal get to get into a trade that if the method produces a high percentage of winners it will equate to a consistent income not taking into consideration that the proper execution of those signals requires mental skills give us an example of this well take for An example you know a high school basketball player who you know he he he'll he'll go in the gym and practice throwing his free throws

maybe for even two or three hours a day it wouldn't be unusual for him to be able to hit 50 in a row would it I mean is that is that that that's not the realm of reality right okay so the problem is that could he even hit two in a row if the circumstances were he was in the final game of the NCAA uh Championship his Team is down one point there's only a few seconds left on the clock and he was just fouled changed everything yeah under those circumstances without the appropriate mental skills

heting hitting either one of of those free throws is very unlikely and regardless of how well someone could do it in practice most people would choke so so really the skills you're referring to what you're talking about Mark is actually staying focused on the process staying Positively focused on the process itself in this case of throwing the ball in our case obviously of trading or following your method and not being worried about blowing it about the consequences of what could happen if this trade goes wrong exactly right just like what I'm going through right now

trying to stay focused yeah TR stay focused in the process of this presentation and not blowing it what you doing fantastic anyway you Know with training we may have a technical method telling us what to do and giving us the potential to generate consistent results but like the basketball player without developing the appropriate mental skills it's it's unlikely we'll be able to do what our method our trading plan is indicating indicating without making a number of potential execution errors in other words to stay positively focused on the process the trading by doing exactly What we

need to do when we need to do it without hesitation reservation or fear okay that's interesting see you see no matter how good a technical method is of generating winning trades turning those winners into a consistent income requires the ability to do or not do some things that the method itself can't help us with for example our method can't force us to predefine the risk of getting into a trade or if we do predefine the risk our method can't Force us to take the loss that ends up turning into a bigger loss and and you

know that's happened to everybody okay our method can't prevent us from moving a stop closer to our entry point where we get stopped out and the market trades back in our favor our method can't prevent us from hesitating and getting in too late or our method can't can't stop us from jumping the gun and getting in too soon where the signal to actually get in never really develops and our Method can't stop us from getting out of a winning trade too soon and leave money on the table nor can it prevent us from letting a

winning trade turn into a losing trade without having taking any profit I know that all of our Traders have experienced these issues I I know they have and I think really what you're saying is that the methodology and and this methodology folks what we're talking about when we say the word methodology is the wise trade software Is the is that's our method and it can give us winning trades we've seen I know all of you have had winning trades but it cannot give us consistent results if we're susceptible to making the kind of mental errors

that you're talking about here okay exactly right yeah that's exactly what I'm saying and all FAL errors I just listed are the result of thinking a result of thinking believing or assuming that our technical method is telling us what's going to happen next On a trade bytrade basis and not understanding that technical methods aren't designed to do that technical methods and patterns are designed to put the odds of success in our favor over a series of Trades it may not seem like it on the surface but there are some profound psychological implications here what this

means is the outcome of the signals generated by any technical method on a trade bytrade basis are unique and random in other words there's No way to know in advance what the outcome to any particular signal will be or what the sequence of wins or losses will be over a series of Trades it's a mouthful and I and I and I understand what you're saying I I think you know um we we need to first of all know that many of our viewers out there are experiencing the same sort of thing okay uh and and

they're probably going to have some trouble grasping this concept that by accepting the randomness of These outcomes they can produce consistent results that's that's an odd concept yeah that's but that's exactly what I'm saying Jared I know it's somewhat of a paradox to think that events that have a random outcome can produce a consistent result but think about it this is the principle that's been used by casinos for hundreds of years right technical methods and patterns will give the individual Trader the same kind of Advantage the casino has over the individual player if if the

trader can think about it from the proper perspective on the other hand if a Trader who hasn't who who who let's say who has uh generated his signal from a technical method hasn't learned to integrate this principle this Randomness principle into his trading regimen he'll undoubtedly find that trading can be one of the most frustrating if not exasperating Endeavors he's ever chosen To undertake you know and I know there are a lot of viewers out there who may be experiencing frustration in fact I know there are definitely viewers who are experiencing frustration but I'm not

sure if they're making the connection that the reason because you know they don't believe in this Randomness principle where you can generate consistent returns by looking at the outcomes of their trades as random and unique they have to be able to view that As random and unique you know that that's I think the big issue no I know and that's that's why we're here explaining it right now you see the frustration comes from expecting from our expectations it's from expecting something from our techn technical method it just can't do technical methods Define and identify patterns

and Collective human behavior now the patterns definitely exist they repeat themselves over and over again the Problem is the outcomes don't always correspond with the patterns on a trade bytrade basis so what I'm saying is that yes we have patterns yes and they and they repeat themselves over and over and our minds just naturally think well I have a pattern that's consistent I should have an outcome that's consistent with the pattern and and that's not what I'm saying at all what I'm saying is that there doesn't have to be a relationship between the outcome and

the Pattern right so and if the last trade was a winner this trade even if the charts are the same even if we've got the same exact signal the same looking chart there's no guarantee that this trade is going to be the exact same as the past one exactly in other words this trade the trade I'm in right now could turn out to be a winner and and does that mean that that the next trade is going to be a winner absolutely not this trade I'm in right now now could end up Being a loser

and does that mean that that the next trade is going to be a loser no absolutely not yeah this is interesting I mean I'm trying to for for us up here you know the goal the main goal is obviously to take these Concepts and reduce them down to the most simple of terms so you know let's again back up here for a second there Traders out there using wise trade every single day they're getting the same exact patterns okay but With you're saying is even though the specific criteria is being used to identify the pattern

okay for each signal same criteria same same same formula same everything right pattern can look exactly the same everything right the outcomes to each signal have no relationship to one another that's right that's exactly what I'm saying that there's a random distribution between wins and losses over any sequence of Trades that that you might Look at and so you know uh and and and and again this is this is a very difficult concept to grasp but it's it's really the traders who have uh who have grasped it let's say and and learn how to think

in what I call probabilities they're the ones that that don't experience the same kind of you know the same kind of emotional trauma that the typical Trader does because they're expecting something that just just may not happen so for an example if if this Trade's a winner based on uh this particular trade I'm in right now based on the exact same criteria that you know or let's say I'm in a trade right now or I'm getting into a trade right now and the exact same same criteria exists in the market that did the last time

I'm going to naturally expect it to be a winner if it was a winner the last time or I probably will naturally expect it to be a loser if it was a loser maybe the last time or or we had two or three Losers in a row this could be a source of frustration for Trader oh absolutely in other words if yeah and that's and that's exactly what happen it is a source of frustration because if I'm expecting it to be a winner and it turns out to be a loser I'm going to be frustrated

not only going to be frustrated I may I'm going to be disappointed and I may even feel betrayed depending on how much you know how much kind of energy that I put into The idea that this that the trade is going to be right well how do we get over that I mean how does a Trader take you know okay so I've got all L things right I've got my charts lined up I've done everything I was supposed to do how does the trader at least begin to accept these sorts of things or or you

know how do they begin to remedy these issues well we kind of have to get into the nuts of bolts the nuts and bolts of this of of just exactly how the markets work Because I think that one of one of the big problems one of the reasons why people have such a difficult time with this is because their initial exposure to the markets themselves is through Electronics in other words there there's through Electronics there's a a real disconnect between what you're actually participating in and what's causing you know you to want to participate it

in the first place in other words you know Markets started as exchanges and there Were and and so when you trade you traded at an exchange so you know that all prices are people generated events correct they are and see this is what people have to take into consideration everything happens because of what people believe there is when when you look at the nature of trading and break it down to its simplest components what you have is everyone trying to do the same thing there is no possible way that any of us can make money

as Traders Unless we can buy low and sell high or sell high and Buy Low correct is there is there any other way Jared no no every Market in every market so basically everyone's trying to do the same thing are they not yes everyone is doing the same things now the reason why we have price movement is because everyone has a different idea about what what is high and what is low okay so now I I exposed get exposed to a technical method now what does this technical method do and This is and this is

the relationship that people need to grasp if they grasp this relationship then they can grasp this idea that that you know that you can take the same set of criteria and end up with random results and it's this it's like what people realized years ago is that you can app you can take data points in other words data points meaning what you're doing is you're you're translating the human be you know the human behavior the human belief in If if I'm going to buy something visual was that no it doesn't have to be visual but

it's like it could be yeah it started out being visual started out being chart patterns based on bar charts but but what you do is is that is that if I'm if I'm going to um uh if I'm going to buy it's because at right now let's say the last price is 10 and I and I put in an order to to buy something at 10 okay it's because I believe that the Market's going to go to 11 or it's going to go to 12 certainly if I thought or I believed it was going to

go to nine I would wait would I not correct so the reason why I'm buying at 10 is because that's what I believe in other words in other words you know it all price movement is based on people's belief about what's going to happen in the future now now you said to me in a conversation we had yesterday um obviously we as individual Traders are not large enough in our accounts to move The market exactly and so this is this is yeah this is the next connection that people have to make is that is that

since all price movement is based on people's conviction or belief about the future How do prices actually move for an example when when you put in an order or I put in an order I don't I don't trade at a level where I can actually move prices but what the typical screen-based Trader doesn't understand is that there Are Traders there are many there are thousands of Traders out there who do move prices and that it is their intention to move prices or you can have a large group of Traders coming into the market and then

cause prices to move but what actually has to happen for prices to move is this is that if the last price of something is 10 for for the market to actually move to 11 all the offers have to be taken out meaning that or mve to 12 all the offers at 11 have To be taken out so in other words people who are trying to sell at 11 they have to get their orders filled before it can get to 12 well for someone for someone to actually bid it to 11 or bid it to 12

they are doing the exact opposite and this is really critical they are doing the exact opposite in that moment of what it takes to be successful they're not buying low they're buying High they're buying High relative to the last price and and or buying higher relative The last so how does understanding this concept how does understanding what moves the markets help our traders to take it to the next level how does I mean is this the first step for them getting control and understanding how the markets work and getting yeah they definitely have to understand

they have to understand how prices move because when they understand how prices move then they'll understand how their technical method relates to this Movement because what technical methods do whether it's a visual pattern or or you know uh moving averages or any wise trade or whatever you're using math mathematical formulas okay you're taking data points in other words you're taking what people believe about the future transforming them or transposing them into a data point as a price a price over time okay or with volume there's there's any number yeah just there's any that's what it

ends up being as a fresh Cross but I'm talking about the actual mathematical formula that makes the fresh cross okay so there are any number of variables that go into this equation now what people have found is that and this is here what people have found is that using these data points into certain types of mathematical equations you can find patterns in Collective human behavior and what these patterns mean is this is that is that is that when the when this set of criteria okay Is present in the market that there's simply a higher probability

than not in other words there a higher probability or what I'm going to call an edge a higher probability of one thing happening over another that people that other people are actually going to come into the market and bid it higher from here or offer it lower from here there's just in other words when the pattern is present this Collective pattern is present it will repeat itself but the Problem is is that is that it repeats itself on a random basis because because even though the actual mathematical criteria is exactly correct or exactly the same

you can't that doesn't mathematical models can't predict human beings that's right mathematical models can't predict who the actual individuals who are going to come into the market and actually do it in other words it takes someone to do it when you put on a trade if you're not going to make your Trade a winner by bidding the mark Market if you bought something by bidding the market you know using all of my money using all all your money to you if you bought something at 10 you could you could actually wipe out all the offers

and and bid it to 11 or bid it to 12 or bid it to 13 now the price is at 13 all the trades that you put on at 10 are winners right yeah but I still bought it at 11 and 12 yeah but well you're averaging up but the point is all The trades that you put on were winners you actually made yourself a winner that's correct but what I'm saying is that when you don't trade at that level we are actually obliged to other traders to come in to buy something at a worse

price than that we than what we thought was low to make us winners so what you're saying is most of us out there are dependent upon someone else exactly to move the market for us we're trying to identify that pattern obviously using The wi trade software to find those common entries but again it's a random event putting the edge you said in our favor Jared when you put on a trade okay when you put on a trade do you know who now now what we've done we've reduced the market down to these terms okay that

it takes someone else to make us a winner right correct okay when you you put on a trade you think about who that might be who might come into the market to actually make you a winner no of Course not yeah no and and if it turns out to be a winning trade do you know who that who those Traders were or who that Trader was that actually made you a winner no is there any way to know no there might be but it'd be pretty hard to find out right I mean you could you

go yeah well you go to the you can go to the the clearing firm you know the firm that clears the you know bottom line bottom line yeah exactly so what I'm saying is that is that when when you're When you're when the pattern presents itself like okay have an edge here when the pattern presents itself we don't have any idea about of who is actually going to come into the market to do this for us and so there's no point in analyzing there's no point in judging there there's no point in in you know

trying to figure out whether it's going to work or not it would be like for an example if I said to you Jared I'm going to give you a coin and this coin is Weighted in a way where it's going to come uphead 70% of the time now just because it just because I know I know mathematically and statistically that this pattern of coming uphead 70% of the time exists do is there still any way for me to know the actual sequence the heads Heads the tals of course not it's an infinite well no I'm

saying do do I know the sequence in other words I'm going to flip the coin a 100 times and statistically it's Going to come up heads 70% of the times I still don't know which which flips are yeah which flips are going to come up heads they say which flips it's not the times which ones in other words which you know we flip the coin once it comes up heads flip coin twice it comes up heads the next one's tails the next one's tails the next one's tails in other words we could have streaks of

heads or tails okay we could have we could have streaks in there the point That I'm making is that there's no way to know the actual sequence but at the end of the day we know we have 7% so what that does that that that that obligates us if we want to be able to trade our methodology in in in an effective fashion to be able to utilize this methodology in a way where we can extract the maximum amount of profit that it that it makes available to US based on the pattern that it identifies

we we have to we have to do it in Certain ways in other words we we have to our mind has to be free to be able to execute these trades without making trading errors and the trading errors come from believing believing that that the because the pattern is present that it's going to give me a winning trade on this one this trade is going to be a winner you can't think that way no you can't think that way that's the way the typical Trader thinks the typical Trader thinks I'm not going to put this

trade On unless I think it's going to be a winner or why would I do it and then ex skewes our expectations see it messes our expectations let's back up a couple seconds here there's some great stuff here Mark and I hope our Traders are getting all this you're you're basically saying this makes a whole lot of sense to me and I hope it's getting through to you guys we have a tool that gives us an edge whatever it is what even if that edge is 2% or 3% I Don't know if we can no

there one more than there more than that maybe more than what do you more it's a lot more than that it's it's far more than 50% well I was saying greater than 50 I was using so maybe 55 or 56% of the time let's just say and the thing is it doesn't even have to be 50% actually make consistent money that's what people can realize too that depending on on what the what the ratio is between what you have to risk to find out if a trade Is going to work and how much profit it

generates when it does you don't even need a 50% win loss ratio right I as a matter of fact I back in the 80s there are you know uh one of the most famous Traders from the 80s uh Richard Dennis on a percentage basis 95% of his trades were losers 95% but the 5% that were winners were monsters and he was able to take he was able to put on trades at a at a 95% loss ratio and make in at the most at one Point and I think around 1987 or 1988 he had $400

million is that using his Edge or his money management or a combination combination of all of it okay com and see one of the things he did too and this is some something I I ought to really qualify with he would use orders to actually probe the market see there's one of the things you I want to I don't want to leave what we're doing right now but I'm going to just kind of divert just for a moment and so that people Understand that that that one of the first things to be a successful Trader

that you have to learn other the fact of of finding a good edge meaning something that puts a pattern a collective pattern that that your that your Edge identifies that puts the odds in your favor that there's a higher probability of one thing happening over another once this pattern is present in the market is that you have to learn how to think in probabilities in other words you have to Get your expectations you know aligned with the way the act the market actually exists and and when you do in other words when you when you

learn these kind of mental skills and you're able to execute your trades without without fear and without hesitation without analyzing or even without thinking for that matter because you don't need to think I'll give you an example a professional Trader what what a professional Trader thinks about when when there's an edge Present is uh does he think about whether the edge is going to work absolutely not he there's because because he knows he has learned there's no point there's no point in in in analyzing or judging or or you know uh uh or or building

a case for or against whether that trade is going to work because he understands a human component okay but what he does think about is he thinks about the risk how much do I have to risk how far am I going to let the Market go against this position to tell me that other Traders are either going to come into the market and make me a winner or not and he also has a plan for how he's going to take profits right but the typical Trader what's the typical Trader do they they don't have a

plan or they think about the trade too much they think about is this going to be a winner is going be for the exact opposite of the professional so what the professional does is basically and then And then once they make up their mind that it's a winning trade they don't they don't predefine their risk do they right and they also don't have a plan to take profits because they think when they it's going to go on and I want to talk about that we running up on the break here but I want to talk

about that on the other side but what you're saying is the bottom line is the professional sees the entry he sees the pattern whatever it is The Edge enters in not Thinking if I'm going to win or I'm going to lose but has a money management strategy in place knows exactly how much he wants to win or is willing to win and how much he's willing to lose or risk right does he does he put a cap on the upside does he put a cap on his wind side well it's not it's not a matter

of a cap it's a matter of of of how his assessment of how much potential there is in other words it see the problem is on a winning trade we're we're we're We're obligated in a sense to to make these never-ending decisions as to you know what the risk to reward ratio is in other words as the Market's going in my favor what's the risk of finding out that it's going to go further and that's why you know that's why so many professional Traders or people who teach trading Advocate scaling out of positions mark this

is all great stuff we're going to have to wind it up we got to go to a break guys it's already time As I said for a break we'll be back with much more with Mark Douglas here in 3 minutes we'll see you soon here on WTV okay trading skills who are the professionals we already talked about that and why would it be beneficial to think like a professional Trader we already talked about that what's the answer H anybody can make money okay we kind of already established the fact that anybody can make money as

a Trader Consistent yeah we're talking about consistency what we want to do is we want to close that profit Gap we wanna we want to make sure that our bottom line results reflect the potential of our methodologies okay and that's what the professional has learned how to do the professional has learned how to close that profit Gap they have learned the appropriate skills to do that they're people just like you and me okay they're No different they really aren't they've evolved into a different way of thinking about trading that's the reason why they can do

it and you can do it too with understanding and awareness that is really primarily what this Workshop is about anyway because because when you think about if you've read stories of people who who have have aspired to greatness in the as a traiter You'll Always Find with almost all of Them that there's this underlying thread this underlying theme that that virtually all of them have lost one or more of what they considered a fortune before they started becoming consistently successful why do you think that underlying thread or theme exists in their lives what's that why

do you think that commonality exists because at some point they lose so often And then come back from losing that one they gain the confidence that they can do it and as a result the fear dissipates and as soon as the fear is gone they're trading from a Carefree state of mind and when you trade from that Carefree state of mind everything about your trading changes remember that the primary skill that we're talking about here is simply trading without fear this is a trading skill it is the primary skill that you Will have to acquire

to create consistency to trade without fear you're watching wise trade [Music] TV [Music] [Music] welcome back to the WTV special on putting your mind over the market I'm Jared Levy Mark Douglas has been talking about psychology in today's market markk let's continue with our conversation we Left off with we were talking uh when we left about the flip of a coin and you said that you had a coin that was actually weighted on one side you gave an example how a coin was weighted on one side and over a series of flips that coin had

a 70% chance of in this case landing on heads right whereas in our software we give you the edge and maybe with our software you have a better chance of being right or having a winning trade if you get in on a certain Pattern right you also talked about how um it's the word right that's that's really critical here okay right it's the word right in other words in other words what what what people need to understand is that is that is how does believing in a random result affect your expectations because see what what

we don't want is we don't want to get into trading with the possibility of being disappointed or the possibility of being dissatisfied or or being even Betrayed because a lot of Traders feel that way they really feel betrayed and the problem is is that when that potential exists it it has the effect of of affecting the way that we see Market information in detrimental ways because in other words we all of us have these mental pain avoidance mechanisms that affect our perception of information so for an example if the Market's if I'm in a losing

trade and uh you know and and I and I you know I got into this trade Thinking I was going to be right okay in other words I did all my evaluation I did all my analysis I did my work I built a case right you know it's like as the markets as the Market's you know moving against me I'm I'm going to have the tendency to focus on information that tells me that I'm right and ignore the information that tells me that the market is actually trending against me okay in other words I can

I can identify a trend but I won't be able to identify That Trend if I'm putting an inordinate amount of significance on the information that's telling me that I'm right as opposed to ignoring the information that's telling me that I'm wrong and see and overall if we want to be consistent the principle that we need to to keep in mind is that to be consistent we have to cut our losses and let our profits run we have to make more on our winning trades and what we lose on our losing trades and the problem is

Is that if I'm susceptible to being disappointed or betrayed meaning I get into a trade you know expecting it to do what I think it's going to do that that I'm going to have this tendency to to uh distort Market information that causes me to hang on to my losers and in a winning trade what will happen is that instead of letting a winner run you know markets don't go straight up in other words if I'm in a in a in a in a in a uh long trade right you know I would like The

market to go straight straight up but they don't they go up and they come back and they C and and it's the retracements we focus on instead of the fact that the Market's still trending in our favor so what's you're saying right now basically is I found a stock for instance that I love the stock just had a great news story the charts are the same as the other stocks that I've traded but just for some particular reason I feel great about this stock Don't know what it is but maybe they had some great news

out and I feel that stock starts to go against me you know what based on the news that's out there based on the special feeling I have about this stock I continue to hold my loser I continue to hold my loser until this thing draws down against me and I'm in a and I'm in a major losing position and I keep losing because I feel in my mind that I had some sort of special this stock was special is that what You're you're referring to well yeah I could it could be anything I know Traders

do that out I know I it could be any any any variable kind of information that that people latch on to the thing that they have to understand is regardless of the reason that they got into a trade it doesn't regardless of the reason if other Traders don't buy into that reason or if other Traders don't have a have another reason to want to buy at a price that's worse than Yours you bought the stock at 10 someone's got to want to buy it at 11 someone's going to want to buy it at 12 and

buy it at 13 and not only be able to buy it at 11 12 and 13 and 14 they're going to have to take out all the offers all the traders who think it's high in other words at 11 12 and 13 and so if if these people aren't coming into the market to do that well then whatever reason you thought you had might not be so good right and so that's why it's so Critical to predefine your risk before you even get into a trade and that's why professional Traders don't think about it any

other way because they know it takes other people that that you know our my reason might be great but if someone else isn't buying into it what difference does it make it doesn't matter because it's not a winning trade and so you know and so if we have the susceptibility to to be disappointed it what it does it it it affects our Perception of Market information in a way that doesn't allow us to cut our how we make ourselves not susceptible I mean how how can you changing yes by Chang in your perspective on this

by really understanding for an example Jared you ever played a slot machine yes okay I don't like it you you might okay but I played it whatever reason you don't like it it doesn't matter okay that's good that you didn't like it because it might make the example even better okay okay You play a slot machine when uh when you put your money in the machine let's say it was a quarter machine okay you put your in the money in the machine you press the button and the pattern indicating that there's a payoff doesn't show

up how do you feel no well do you feel betrayed you people betrayed by the machine no no not at all and why do you not feel betrayed by the machine it's just a random it's just oh it's a random outcome okay so so in Other words you went into it with the belief that you know that you're participating in an event with a random outcome right and as a result your expectations about the outcome were in were in perfect alignment with the event itself my expectation believe it or not was to lose I I

know it sounds crazy but I you know when when I put the quarter in I thought you know what I'm probably going to lose this quarter yeah exactly okay because that's because you know the Odds aren't exactly in your favor and and and and what trading systems can do is actually put the odds in your favor in a way where where we own the machine believe it or not I mean this is this is the whole role reverses if you learn to think about it correctly in other words if you understand that you know so

so for an example well let me backtrack a little bit and say that say that that most Traders you know if if you compare trading to a slot machine the difference Would be that with a slot machine we can't play until we've accepted the risk in other words we actually have to put our take our money out of our pocket and put it in the machine or otherwise we can't play so that so that implies that we've accepted the risk because the degree to which we have not accepted the risk we wouldn't be able to

put our money in that is our loss the quarter is our loss that's the risk no that's not our loss that's just the risk that's Just how much we're willing to invest to find out if it's going to work okay okay and then what we do is we wait for a pattern to show up and if the pattern's a you know a jackpot great if it's not then we might be willing to put another quar in the machine to find out if it is the difference with trading and this is where where people's people's mental

idea what this is all about gets gets messed up the difference with trading is that the pattern shows up in the market First the pattern shows up first okay then what we have to do is put up our money meaning meaning how much am I willing to risk to find out if it's going to work but most Traders because they evaluate because they judge and because they analyze they think that and build a case for the pattern being right they actually talk themselves out of believing that the risk even exists they might give lip service

to the idea of putting into putting a stop in the Market like like some of those errors that I said in the beginning how many people put stops in the market and take them out and then you know and then let what would have been a small losing trade go into a big losing trade that's lip service you see that's that well okay told over and over again I got to put stops in the market so I'm going to do it but they haven't really accepted the risk see every day every day yeah they haven't

really truly accepted the Risk because they don't want to be wrong and what they have to understand is that this is not a right or wrong game this has nothing to do trading a technical methodology or a technical pattern does not have anything to do with being right or wrong it's just a it's just an odds game that's all it is in other words you get an edge an edge that says I've got the odds in my favor over a series of Trades but you've got to be able to take every single trade because you

don't Know the sequence to wins and losses you got to be able to to identify what your risk is and that's simply how much am I willing to spend to find out if other Traders are going to come into this market and bid it higher than my price or offer it lower than my price if I sold that's all it means and then of course you have to have a money management plan for how to take consistent profits right which and there another problem I want it oh yeah but See the thing is is like

when you change your perspective when you change how you think think about this okay it's like it's like I know there's a random outcome to these patterns and so I know it's not right or wrong and so what potential do I have to get disappointed no more potential than what you had to get disappointed by putting a quarter in a slot machine and it didn't come up with a jackpot right and see that's this is the critical thing here Jared you got To be able to change the way you think this is what's the title

this program Mind Over markets okay you got to be able to change the way you think and how does a Trader I mean what are the steps I mean you know tell is there is there a a obviously by by reading your books by getting themselves immersed in your thinking is certainly a way to do that is there anything from this point forward a Trader can begin to do or thoughts that Traders can you know try to add to the repertoire to to begin to think like a professional Trader have that Carefree state of mind

and start to change the way that they view the markets in their risk is there is there an exercise they yeah there's yeah absolutely I mean there's there's there's an exercise in trading in a Zone own exercises in in how to think like a professional Trader and and basically all it really takes Jared is is simply a sincere willingness To do it honest to God it's just you know it's just like anything else in our lives when when we realize that there's that there's a particular goal that we have and you know and and there's

a strong desire to achieve that goal then we're going to take whatever steps we need to achieve it what whether those steps are trading in the zone or or or how to think like a professional Trader or some other methodology that people are more comfortable with or or whatever Point is is that is that if someone really you know really sets their mind any of us when we really set our mind at getting something we we'll get there we we will get there but but the difference is like we started out in the beginning of

the program the difference with this is that is that what we have to set our mind at is how to change our mind okay and and and that's why there's that's why there's so many people who who are so close to getting it but never Really never really get beyond that threshold why because people don't want to change the way they think it's that simple people don't like changing how can people get to the Carefree state of mind that you talk about by changing the way that they think they've got they've got to eliminate the

potential to think that the Market's going to disappoint them they've got to eliminate the potential to think that the Market's going to Disappoint them and the way they eliminate that PO the potential is by understanding that trading is not about being right or wrong it's a probability game right if you're trading technically now I don't want to confuse people but I got to say something else is that is that Traders do half by the way keep going got that long honest to God goad no is is that there are there are stages of development in

other words and I think I started to talk about this in the last segment is that there are stages of development that that we start out learning these fundamental skills like learning how to think in probability so that the market doesn't have this potential to cause us to feel emotional pain right we did everything we could could we had our Edge it didn't work out on and that's all that it is when you put on a trade and it doesn't work all it really all it really means All it really means is this is that

is that some other Traders didn't come into the market that had the same belief that you had or the same conviction that you had about this market doing whatever it is you thought it was going to do that's all it is it's nothing more than that and you have to learn to walk away you have to learn to walk away I mean let's put it this way how how good do you think the average person is at at predicting other people's behavior Someone else's Behavior not people aren't that good at predicting other people's behavior or

even their own behavior for that matter okay they find themselves doing things that what what am I doing this for you know and and so how good are they going to be at predicting Collective human behavior now these the methodologies that that that we have access to these mathematical formulas do that for us right if you but you have to understand that that there's No possible way that these mathematical formulas can predict can predict the outcome of of of these patterns on a trade bytrade basis only on a series of trades in other words what

they're really saying is that I have the odds so so when I get a signal when I get a signal from my methodology at the very fundamental most fundamental level what this is telling me right is that fresh cross is that fresh cross I have there's a higher Pro there's a there's a high or Let's say I there's there's a uh the odds are in my favor the odds are in my favor that somebody that somebody is going to come into the market this is what the pattern means the odds are in my favor that

somebody is going to come into the market and bid it higher from here if I bought or offer it lower from here if I sold that's that's all it's saying now they either going to come or they're not and so as a result I don't look at this as being a right or wrong I Look at this as how how much distance am I going to give the market to move away from my entry point to tell me that that they're either going to come or they're not and any further is not worth the money

of finding out it's not worth the cost of finding out do you talk that's all it means do you talk about stop losses um you talk about stop losses and management in in your DV yeah absolutely but not in but not like uh specific not not not not the kind of specifics that You know like like if you're using if you're in a half an hour time frame you know how much how much that's the Trader's decision but it it it the trader dependent upon their trade style is going to adjust their stops according to

their account size according to the risk Toler Etc what you do I think is give people an understanding in a basis of of where they should be placing their risk or how much not from a dollar perspective but maybe from a from yeah In other words you know in so that so that they can yes from a mental perspective is that they can adjust their trading style in a way that that conforms to where they're at in terms of their their their ability to to to take the risk would would one exercise be for a

Trader to begin testing out their loss in other words take a $10000 loss see how you feel if you were able to take a $100 loss walk away and not fret too much about it not let it stress out your The rest of your trading day and not think about it maybe then you could say okay I'm willing to trade in more volatile stock and move to something like A200 or $300 loss Etc is that an exercise you think would be beneficial Absol yeah absolutely I mean another that's what I suggest to people you know

all the time especially you know I was doing coaching it's like and and and when I was when I was doing coaching on an active basis I mean I was coaching Some some pretty pretty substantial money managers and you know they'd get into a a situation where they're on a you know a pretty good losing stre and often it required that they actually go back to a risk level that you know they hadn't meaning that if they were trading you know 10,000 or 100,000 shares or willing to take you know a half a million dollars

or a million dollar hit on a trade you know to get back to where they they felt more in sync with the Market that they may had to go they may have had to go back to only trading a thousand shares and see and when you're working in a in a in a corporate situation like that you know with other Traders that's often a hard thing to do but that's exactly what they needed to do I I suggest to people that that I mean look at it this way um paper trading okay paper a lot

of a lot of people who teach trading say that you know there's no point in in someone Paper trading because there's there's often times a huge difference between the results they'll experience paper trading and and what they'll experience when their real money on the line yeah because there's no real money on the line in other words in other words I'm sure they're probably a substantial number of viewers out there who can make consistent money consistent money following their methodology paper trading and then they then they start Doing real trading and everything changes okay well and

so a lot of teachers have said well there's no point in paper trading because you know there's there's no correlation between the results well that's not really true because what what paper trading what paper trading can do for people is very very beneficial one it it's a graphic demonstration graphic demonstration of the Gap that exists in terms of mental skills that they need to acquire in Other words in other words it it's it's a good way to get familiarized familiarize yourself with your trading platform it's a good way to really get confident with your methodology

but more so it is a graphic representation of the mental skills that you don't have that you don't have that's an interesting concept yeah so in other words how does people how does someone convince themselves that they need those mental skills look at your paper trading look At your paper trading in relationship to real trading now if if if there's and and a lot of this even if people have learned to think in probabilities which is what we've been talking about PR pretty much this whole time even if people learn to think in probabilities it

doesn't mean that they can really still accept the loss right because because because the way our minds think in other words in other words if if I'm if I have to take a loss on this trade It could have the tendency to tap me into all the accumulative kind of negative pain of every time I've had to take a loss in my life and it just doesn't mean in trading it could mean you know pets or what you know people and that sort of thing or jobs and so it because our minds have this Tendencies

to associate it can make it difficult to accept the loss so a lot of times what people would have to do and and they also would find difficult to do because A lot of times people get into trading because they want to impress their friends or their family like I'm a Trader but that what they might have to do is that is that when they graduate from paper trading they might just you know the the amount of risk tolerance I have might only be just 10 shares and risking a buck on those 10 shares and

they think well what's the point of that well the point of that is that you know when you can trade those 10 shares Flawlessly based on whatever your methodology says and do it without any fear or you were able to make those trades in the I mean you made those trades in the pap then you can go to then you go to 20 shares and see how that feels then you go to 30 and gradually work your way up and people aren't willing to gradually work their way up this is a concept that we've never

even talked about I I've never actually heard it put this way Mark I Have to be honest with you where you look at your paper trading account as kind almost your goal if you will almost like this is where I could be if I was trading from a state from a Carefree State of Mind absolutely it's perfect this is where I could be if I had that Carefree state of mind if I had the mental skills that allowed me to do exactly what I need to do without reservation without hesitation without fear that's the way

that we can and That's you know and and that's basically what we're getting at how do we use the methodology that we have and the capability and the potential of that methodology to its maximum you need the mental skills to do it um you you made reference before uh both uh at WISE Fest and earlier we talked about some events of pain pain in your life and a lot of our is right now feeling some pain with what's been happening in the markets the past couple of weeks Mark is there um Does a person have

to experience this a total draw down in their account a total loss in their account where their account's almost wiped out or is totally wiped out for them to make that change in their mind I mean does that does that have to happen does it does it have to be traumatic like that for them to realize oh I've got to change something or or and and I'm I'm I'm saying this and obviously it can be done without that but have you found that Predominantly out out there you know in the people you've taught over the

years have people had to experience a high level of trauma before they can actually make the change or can someone just in normal course of every day with a little bit of dedication actually and I I'm not trying to be rhetorical here I really want a serious answer because there's people out there right now that I'm sure are thinking the same thing do I have to lose my whole account does this have to Happen for me to make it you AR in pain right now are you Jared yeah I'm good I've been out the market

I'm just yeah you mean like the gutter principal yeah is that what you're referring tol the gutter principal The Gutter The Gutter principal how much in the gutter do you have to be before you're willing to say um uh I'll do anything mhm as a matter of fact you get this kind of brings something up is that when I was when I was actively Coaching um uh my my coaching Cil basically fell into two broad categories uh one was with traders who were already successful who were already consistent and what they wanted were um uh

you know they they wanted uh fine-tuning okay they wanted creative ways of fine-tuning fine-tuning themselves so that they could actually increase their you know increase the amount of money that they make over over a year whatever and then you had the Other group was was was they're literally in the emotional gutter okay they're so exasperated they're so frustrated because of the potential that they it's so obvious what the potential is and yet there seems to be these these invisible barriers that keep them from getting into that getting into that potential that that they're they come

to me saying I'll do anything and and that's you know now everyone has different tolerances of pain before they Get to the get to the point where they say I'll do anything and mean it and be sincere mean that's the whole thing they got to mean it Mark we uh we're wrapping up the show we have a couple more minutes now there there was a couple points and you wanted to make before we end up this show and guys just so you know next show we're going to open up to phone calls and emails so

if you want to start lining up your emails and your phone calls do that Now Mark a couple more minutes to go um in in this Arena I mean is there anything any message you can give to our train traders that or any final thoughts maybe some a mantra something no just basically just just to kind of you know sum up what we've been talking about that that if you know if consistent results are your objective you know then then you're going to have to learn how to think like a professional Trader because that's That's

what they do they make consistent results that's why the that's why they're Pros that's why people give them their money to manage that's why they have jobs that where where they actually trade for a living because if they didn't make consistent results they wouldn't keep their jobs and so to do that you have to you have to you have to learn to change the way you think about trading in a way where it doesn't doesn't cause you to have this potential To think that you're going to be disappointed or betrayed or put you into a

state of emotional pain it's like it's like getting to that Carefree state of mind and once you get to that once you shift your perspective everything changes it's not about being right or wrong and you when you really understand that and and then you go through the process of learning how to accept the risk of losing then everything about your everything about your trading will Change so when the patterns present themselves you trade them you trade you don't think about it there nothing to think about it's like don't think there's nothing to think about and

you trade within your means except the risk and how you're going to take profits but I'm saying the pattern itself when the pattern presents itself there's absolutely nothing to think about because there's no way you can know yes there's no way you can know what the Outcome's going to be Mark we do another hour like I said so we we've got plenty more time to go um one last thing I wanted to ask you real quick uh we used this word Edge a couple of times right a lot of our Traders are not familiar with

this word Edge I've used it on the floor Edge to us was basically having a spread in there in other words if we had an option that was worth a buck the ability to buy it for 90 cents or sell it for A110 how do you define Edge uh as a closing thought oh just just just simply just an edge is just a higher probability of one thing happening over another that's all just just a higher probability of one thing happening over another but keep in mind that within the context of what we've been talking

about it's a higher probability happening over another over a series of Trades a series okay so in other words you know like for example what I do is I Teach people to think to trade in Sample sizes right so that that instead of saying themselves I'm going to take the next trade I'm going to take the next 20 trades right I'm going to keep myself in the game I'm going keep myself in the game and see what happens over the next 20 trades and then if I get the kind of results that I like I'll

take another 20 if I don't I'll tweak my methodology so that I get better results Mark it's been great we'll see you back in a couple Minutes guys it is time for a break we want you to get your questions in for Mark you can give us a call at 1866 WTV wise that's- 1866 9889 493 or you can send us an email to Trader wiseradvisor [Music] you know this is kind of a maybe a long drawn out introduction to the fact that what we're talking about here is that you guys have a a really

wonderful trading methodology where there is an enormous amount of potential for you to Be able to make a consistent income from being able to take full advantage of the potential that this trading methodology offers you but I would say that there's probably it wouldn't be unfair for me to say it wouldn't be unfair for me to say that there's probably what I'm going to call the profit Gap the gap between the potential and your bottom line Results this is the potential this is your bottomline results most people think that when they realize that this Gap

exists that somehow learning more about the markets is what's going to fill it and what you're here today to learn is that that is categorically not the case you have to learn more about yourself and how you interact with your trading platform and the market to be able to fill this Gap there are Psychological skills involved [Music] you're watching wise trade TV of course I watch wise trade TV I love wise trade TV it's like a partner it's like somebody who is who's there with you they care about what you're doing on your trading it's

my friend it's my support if you have a question and you're not sure about something you can call in you can email and your Question is answered it's exciting to be part of it a live part of it you learn something every day if they're serious about wanting to trade they need to watch the program I mean it's just all there is to it it's a no-brainer I wouldn't want to be without it we are doing this for you wise trade TV hello I'm Alan neckman president of the commodity Explorer software program and I'm George

Thompson president of wi trade we're offering commodity Explorer At a special subscription model for only $99 a month it's great trading software with some super training available video on demand at WISE trade television Allan wise Traders trade with red lights and green lights supply and demand it makes sense to open your financial Futures to Commodities it's that simple if you understand the charts of wise trade commodity Explorer should be an easy transition you're able to trade the stock market indexes interest rates Metals energies there's some major benefits in these Futures markets today we trade electronically

there's add trading hours to execute your plan you're able to diversify and trade any Market that's moving there are no limitations upward downward markets there's enormous volume growth and tremendous liquidity so Commodities are a growing Market that you want to be able to participate in today and the best part of commod Explorer it's only $99 a month visit commodity explorer.com for the $99 a month subscription learn to trade commod with Allen in 30 days or your money [Music] back for 12 hours each trading day wise trade TV is your ticket to finding great trading opportunities

in all of the markets now every Monday through Thursday the last hour of wise trade TV is devoted to personal investor training welcome to wise trade University we'll cover all types of topics from General market knowledge to the hottest trading strategies wise trade University brings the classroom and our top Market experts right to you tune in Monday through Thursday from 6:00 to 7:00 eastern class is now in [Music] [Music] session [Music] [Music] Good morning welcome back to the WTV special mindover Market I'm your host Susan defor now you've seen some clips from Mark Douglas's DVD

series trading psychology well we're running a special right now you can get the DVD series for the special low price of $895 that's $400 off the regular price and if you're one of the first 50 people to order it you'll receive an autographed copy of Mark's book trading in the zone you can call call 8883048987 WTV wise that's 1866 9988 9493 or you can email us to Trader wisr tv.com guys Mark that was a great show I loved all the information you gave everyone thank you Susan thank you very much thank you so much for

being here I I know at WISE Fest everybody was thrilled uh to actually get to meet you and see you in person so it's a it's a special pleasure to have you a h special on WTV Thank you different for me I've never been on live TV before so this is a well you're doing a great job thanks well you know guys we have lots of callers and emails to no surprise so why don't we get right to the phone um we have a call from Brandon in Massachusetts good morning Brandon hello guys Brandon hi

and Lady good morning what's your question for Mark um it's it's not really uh too much of a question it's man I'm a I'm a complete cleen slate I Learned how to trade through wise trade I didn't know anything before and uh I just thought you guys want a perspective of of not knowing anything and your analogies that you used were great it it really made me understand what's going on and what I I just want you to comment on what I've taken from it that's okay yeah we love to hear it these these are

the things that I've gotten wh why is trading not guaranteed is because prices are Determined on predictions of what other people will do and Technology can record what other people have done in the past but cannot predict what people people will do in the future right to a point yeah no they can predict what people will do in the future but just not on a not just not on a on a trade bytrade basis in other words you're going to get it's it's like I'm going to go back to the coin if if you what

what wise trade or technical Methodologies do is give you a weighted coin where if I've got a coin that says that 70% of the time that you flip this coin it's going to come up heads then that's what your technology that's what your your techn your your technical methodology does it gives you that that whatever percentage Edge it just means that on each individual trade which is what the tendency that most people have to do is they try to figure out if this trade is going to work not if the next Not what what's my

percentage of wins to losses over the next 20 trades or the next 10 trades or the next 100 trades what a good point Edge Edge that's a good point okay Brandon well thank you for calling on that we have another caller it's Miss Amber and California good morning Amber hey Amber Susan Jared Mark hello how's it going hear from you oh yes hey you know what thank you Susan um mark thank you so much for being here Thank you your book trading in the zone I read it cover to cover I love it um I

think it's neural Linguistics for um trading and for Traders and um I loved what you said about scaling out of positions that made so much sense to me there there are little bits and pieces in that book you know that that a lot of people don't it's not just you know blanket psychology I mean there's so many little little um intricacies in that book that'll help you with your Individual trading if you if you if you pick them out talk about scaling out where did you come up with uh I mean obviously no no no

no where I where I where it occurred to me to scale out was was back uh when I first started trading um well not exactly when I first started trading but uh while I was working working at maril Lynch at the Chicago Board of Trade as as a retail broker by the way and and I and I used to keep meticulous records and I would analyze My trades and I found that um and I found that that rarely that I get into a trade where it just sto me out immediately in other words where the

market never gave me anything in other words I get into a trade let's say I bought at 10 and next thing you know price is at nine it never it never went to 11 okay so that was maybe one out of 10 times that that would happen and then and then I saw that that you know that there were certain percentage of my Trades where it went if I bought at 10 it it would go to 12 or go to 13 and then go back through my entry point and stopped me out at at you

know let's say 600 or 7 so it actually gave me something but I didn't take it because I was looking for something more and so what I did is I analyze my trades in this way and put them into categories in terms of the percentage times that that it would go in my favor in relationship to when it didn't and and found that I Could I could best um I could give myself consistent results if I if I started scaling out in other words I would take a part of my position off at a very

small amount you know let's say you know just just to make it easy I trade a lot of silver and gold back then but but just to make it easy where I would take um a first third of my position off at uh let's say three or four cents in silver and what that would do is is that would not only make me a Winner from a psychological perspective if you really want to look at this you know psychologically what you want to do is you want to create a belief you actually want to create

this belief inside of you that I am a consistent winner and what'll happen is that when that when that belief gets integrated into your mental you know as part of into into your your your mental environment as part of your identity is as long as Of course the steps that go into making I am a consistent winner are are are consistent with that belief in other words it becomes a part of your identity and just you just function out of that belief in a way that you don't even have to think about it anymore that's

that increases your confidence that's right it not increases it's just who you are so in other words if I want to if I want to actually believe that I'm a consistent winner then then I have to Then I have to do something that creates that so by taking off at least a third of my position with with a small amount what that would do is that would that would reduce my risk so if the market did go back and stop me out it wasn't stopping me out in my whole position and uh and uh uh

you know but if it didn't then of course I had a I had a spot where the next third came off and then a then then a predetermined spot where the next third came off and now the problem With with doing with with scaling out that a lot of people have is that if they get into a monster trade they're they yeah the Lost potential of you know like if I had the whole thing on I just made so much money but again it's like it's it's what's your objective if your objective is to to

get those monster trades then it's going to be inconsistent with producing consistent results so you have to be clear about what it is that you're trying to Accomplish you know I really like that Mark because uh there are a couple things you said that I really like and one is setting yourself up for success and it's sort of like what you do uh with your children when they're smaller you want to reinforce the positive things that they're doing correctly because then they know you know what I can do this and so by taking those smaller

those profits as they're coming you do have that mental state absolutely It's really critical it's really important I think it's one of the most once people get some of the some some of the fundamental skills out of the way it is one of it is probably the most important thing they can do for themselves is is what I call take money as a market makes it available have a plan for taking the money as the market makes it available cuz we don't know how far it's going to go on our I do something called Kibbles

and bits where I just said you know what I could just try and grab five and 10 cents I know that with my trading from what I've done in the past and based on tool that I'm using it's very easy for me to grab 10 20 cents out of each of my options now if the option cost $2 or $3 you know that could be 30% or 10% of my of my trade depending upon the cost of the option so little bits and pieces just trying to eek out um small wins and then again it

stills conf idence makes me Feel good in my tra absolutely well we have another caller on the line it is Lee in Ohio good morning Lee hey how y'all doing today hey Le it's good to hear from you all right um I just you know I talked to you when I was down at WISE Fest and a lot of things that you were that you were talking about you know I was telling people and teaching people but once I talk to you in the way that you really sum some things up it just really just

Brought it even to light even more for me now one thing it has did it made me trade so much from a Carefree state that if I see if I see a fresh cross on a day and a good month and a good week I get in it and I mess around and be 20 different tra but could it BR too much of a Carefree State of Mind you say what I was asking Mark if there could be too much of a Carefree State of Mind well I mean I look at it and it really

took me I mean the only thing that I don't play is earnings and it took me to and I me and you were just talking about it yesterday Jared it took me to the mindset that I don't care what the market is doing if I see the charts is right I'm getting in period I don't even think about nothing else and it's so funny when the market went down I lost some money and a couple of my friends called me and they was like you should sell everything you should sell Everything look at your account

and I'm laughing I'm laughing at them why you laughing I was like I'm going win some I'm going lose some I ain't worried about it I make it back you know and and that was my mindset and it it's just funny that when you get that mindset you you don't just think you don't even think about nothing else yeah Lee it's important for you still to have a plan Oh no I got a plan I got a plan Now I do have a plan and it Le it Le defense if there's one thing Lee has

it's a plan but it's funny when you said the free state of mind I mean it's that's more now what you do talk about is something called euphoric training eor that's euphoria that that's different well there could be some here with there could be an element of that with with you want me to cover that or is it's a great idea well you know um all of us um let's put it this way we Talked about expectations in the first segment it's like you know when an expectation is simply you know a mental representation of

what some future moment in the environment is either going to look like sound like feel like taste like or or smell like okay in other words if the environment if I believe that the environment is going to be a certain way the outside environment is a certain way based on my mental representation if it shows up that way If it shows up exactly that way how do I feel well universally how this is this is a characteristic that runs through all cultures this is a universal human characteristic how do I feel thanks any go I

you're going to feel good right you're feel satisfied yeah it could yeah it could there could be a range of really positive emotions okay that and and this is this is universal and at by the same token the degree to which the environment does not conform to our Expectations how do we feel a whole a whole range you know like I brought up before disappointment dissatisfied betrayed whatever okay usually it's extremes like omnipotence and like total failure well well well well the thing is is that is that all of us have this potential to to

flip into a euphoric state of mind and euphoric State of Mind is one where for whatever reason whatever expectations we had let's say the environment showed up in a Way that far exceeded what we thought and it just like we're we're we're we're as high as a kite and what happens that these these chemicals get in you know chemicals get released in our in our mind and our body and and the problem with I mean euphoric euphor genuinely euphoric State of Mind can be like heaven literally like heaven on Earth and and the problem as

traitors when we're in a euphoric State of Mind Is that in a state of mind of Heaven on Earth it is impossible for us to conceive that anything could go wrong anything imposs when the stops come off impossible exactly increases and so yeah and and and I've worked with so many Traders and I can say that that I work with traders who who have let's say their threshold for Euphoria was one winning trade okay and there are others who you know maybe a string of four or five winning trades or or two or three winners

and a big monster or whatever But the point is is that is that there's a there's a state at which we can operate at normal confidence in which in which we can we can do all the things stay in the process of trading meaning that you know we're objectively we're objectively executing our edges we're predefining our risk we're cutting our losses we have a plan for you know taking profits on a consistent basis and then when you flip into the state of euphoria all that changes because Absolutely nothing can go wrong and as Traders that's

one of the most dangerous places to be because because even though you may perceive that nothing can go wrong the market may not agree with you and that's when we have this tendency to to violate money management principles where if we're a thousand share Trader we'll put 10,000 shares on you know we'll mortgage the house or whatever because the trade just absolutely there's no possible way it could be a Loser and in these situations what happens is that when we've got 10 times the amount of exposure than that we're used to then all it takes

is just a just a tiny tiny little bit that the market can come against our position just a tiny bit right and it can it can it can we can go from the state of euphoria to a state of Terror instantaneously because of what you just said you were a thousand share Trader who now committed 10,000 shares to this trade because you Were in this euphoric State when the thing flipped down your loss is now way outside of what you call the norm well it doesn't have to be a big loss it doesn't even have

to be it could just be the fact that nothing could go wrong and so therefore you know it's it does it just it just shatters it shatters the state of euphoria so that we go from Heaven virtually to mental hell instant ously and it puts us in a state of mind freeze where we just can't even get out Of the trade and we're just sort of just sort of watching The Market take our money away and not able to do anything B until something snaps inside of us and we get out so that mid Zone

you kind of want to stay in that yeah you want to stay in normal confidence and what I was picking up about Lee was that he he may not be violating money management principles but when he realized that he could trade from a Carefree state of mind he was kind of doing many trades You see just he didn't have a he might not have been planning all these trades out and just going from you know instead of doing if he was a thousand lot Trader or a thousand share Trader instead of doing 10, shares if

he was just trading one or two markets he's trading 20 okay you know so we have a uh an email from Ed the Philly pip colle collector he said did most of the knowledge that you're sharing today come to you from your Mentor or mentors or from practical Experience how long of a period of time did it take you to trade without fear from the time you started trading with real money thank you again for the benefit of of your knowledge and expertise um the first part of the question is who did you learn from

and and how long did you trade with your learned from I I started do I started writing the discipline Traer in 1982 there there wasn't really there back in 1982 there weren't even that many Trading books available this was a personal re so this was your from your own experience this all from my own experiences yeah as a matter of fact that it had to do with with you know losing everything that I owned as a Trader and and at the same time uh uh having at the same time being in a situation where I

was at meil Lynch you know where where I was observing uh you know not only other brokers in the office but but the behavior of my Customers their customers having uh having relationships with Floor Traders noticing these these these common themes of of of errors that we're all making and then when I when I ended up losing everything that I own that I didn't I I was in a state of mind where I didn't have anything else to lose other than maybe my job because you know me Lynch would have known the situation I'm sure

they would have fired me but uh but they didn't and so I was able to not trade Anymore because they didn't have any more I didn't have any money but at least I I still had access to the markets I still had access to being a Trader and and when people really genuinely tap out they don't get to trade anymore because they don't have the financial resources to do it so I was in I was in kind of a unique situation where where one I and this I can't I can't well I could probably explain

it but I'm not going to do it Here in that I just knew thats that trading was psychological right from the very start I just it was just it just made sense to me that this had it wasn't technical as much as psychological so is it because of your observation of not only what was happening to you but everybody around you and then you had bottomed out yes so you you got rid of the fear there yes I had Journal yes I had extensive Journal work that I that I did And so so in in

1982 you know when I came to these realizations about myself and about trading and when I didn't have anything more to lose everything about my trading changed cuz it because it was like the fear dissipated and it's like I started making consistent money for my customers because I was I I was doing the same things but I was doing it from a different perspective and and not making the errors so the second part of his question referred to the time it Took you to get over your fear and you think it was more you say

it was more like almost instant yeah it was an instantaneous not maybe an instantaneous realization but it was because of these experiences right and so what I started doing is is developing the material that ended up in the discipline Trader what what didn't anticipate because I I never I never grew up aspiring to be a writer or thought that I would be uh is that I mean having very much of a traitor Mentality back then I would say you know okay this is going to take me six or eight months to do this it ended

up taking me almost eight years and and it was it was tapping basically where this Insight comes from as I tapped into the creative process what I what I mean is I specifically stayed away from any other material that had anything to do with even psychology or trading there wasn't really anything on trading psychology anyway except for one book book Jake Bernstein's investors quotient that came out in 1980 but otherwise I specifically stayed away from it because I realized if you ask yourself questions from a from a sincere space of of being open to any

answer that comes you'd get any answer that comes and so I was really developing this material as as as I was going along very good well we have uh another caller on the line good morning Keith how are you good morning I'm great what question do you have for Mark the question I have for Mark is this you're speaking of um you know learning to get into that Carefree state of mind and starting small you said you know example 10 shares uh to gain that consistency wherein would you then increase it I mean you know

70% 80% then increase what would you be your guideline or would you go by a psychological guideline that's my question interesting One thanks again I go by a psychological guideline in other words when you can trade 10 shares perfectly in other words when you can set up a trading plan and execute that plan when I when I mean perfectly I literally mean not just execute the plan perfectly but execute it without any conflicting or competing thoughts about what you need to do and when you need to do it in other words it wouldn't even occur

to you to make a trading error and Then what you do is you move up to the next level and see and see how well you do is p&l an equation here profit and loss is that an equation and well not necessarily I mean you know you can do an exercise like that and not and not even take profit and loss into consideration that in other words there are many times I've set up for people you know uh trading exercises that really didn't take into consideration how much profit they might have it was Following the

plan we know we're going to lose jar live with that loss and just keep moving forward exactly in other words how well can you follow the plan and then if you can follow the plan without any conflicting or competing thoughts to do other than what you set out to do then you up your size and if you're and if you're real comfortable right off the bat you can up your size even more but if you find you're not comfortable and You're and you and you and you find yourself you know making trading errors or even

thinking about making trading errors then stay at that level until that doesn't happen anymore that's great advice thank you for that uh we have another caller Frank is the first time calling in thank you for doing that Frank what can we do for you Frank are you there these are good questions by the way that people are giving us they really are okay well I Don't think we have Frank on the line so let me go to one of our emails this um is a it says s you cannot know that a trade will be

a winner when you enter it for the same reason can I assume that a profit Target is the same psychology assuming that the next tick after I exit a trade after reaching my pre-assigned target profit will be a down tick is the same false assumption as when I enter the trade thinking that the next tick will be an uptick that I must wait for The market to tell me that the trade is over so it's kind of the reverse yeah it's there's no way to know how how far a market is going to go in

your favor there just you just have to pick these predetermined spots and or if you don't pick predetermined spots then then use some sort of an indicator like another fresh Cross or or a trailing stop to to get you out of your to get you out of your trades very good okay our next email is from Hal and Pennsylvania and He says hi Jared uh Mark and Susan on behalf of all the wise Traders I want to thank you for this great opportunity to listen to Mark the question I have for Mark is over the

years have you found that a day Trader can be as successful as a swing Trader or long-term Trader provided stops are in place and a good trading plan is in place it doesn't it really how you how you uh categorize the way people trade is is virtually it isn't even relevant In other words there it depends on how you think about your trading and and what you're what you're most comfortable with so I I would think I would think that your trading style has to fit your personality and and your time alignment that's right yeah

so a day trader who's got got their mind right is going to be just as successful as a swing Trader who's got their mind right and and a swing Trader who doesn't won't be any more successful than a day trader who Doesn't so well Jared you touched on something that uh earlier when I was watching uh the program I thought we would ask Mark if somebody is new to trading and they watch wi trade TV and they see that we have all different trade Styles and we even have all different markets uh a common question

we get is how do I determine you know what trade style is suitable for me and how do you think that from a psychological standpoint not necessarily You know maybe they can spend all day at the computer and they have time to do that but for who they are how do you help determine what type of traiter is more suitable for their personality H that's a good question and it's kind kind a tough one to answer to um you'd probably have to meet the person yeah I me for me I mean it's it's it's all

it's like even when you do personal consultations it's like what what I you certainly what I realize is That is that you can't put you can't put people into into categories or you know pigeon hole them into into certain boxes that everyone's mental ecology is unique and you have to respond to that kind of uniqueness so how a person goes about determining you know what trading style is uh is most appropriate for them would would pretty much be based on what they're attracted to in other words you know even for me for an example for

many years I mean I learned I learned to Trade as a swing Trader because we didn't have access back in the late 70s and early 80s we didn't have access to Market information we there weren't all these platforms and and you know and computer I mean because personal computer hadn't even been invented yet so what you know what we had to do is we had to call our broker for the high low and close and keep our own bar charts so so the day trade was absolutely was was absolutely impossible right a day trade Away

from the market not being on the floor however and so because that's the way I know how to trade you know years later it's like you know I'm kind of losing interest in trading and I'm and and the reason why is because I don't have the Toleration to sit in front of the screen all day long to wait for two or three trades right my my my my nature is that you know I want to be active if I'm going to sit in front of the screen I want to trade so basically I had to

Come to the realization for myself that you know what even though yes I know how to swing trade successfully I got to learn how to day trade successfully or otherwise I won't do it at all so you know so in a way if you think about somebody that likes to go skydiving and you know drive fast cars and they're really always wanting kind of that high adrenaline position trading to them would probably very boring that's right absolutely so kind of take a look at Yourself like that that's right okay well let's get our next caller

it's Doug in California thanks for calling in Doug what question do you have for Mark well uh first Mark thanks for being there and um I had a comment and then a question which is that I I read your books I saw you at wi Fest and I've seen the DVD all the DVDs and uh they were wonderful and lifechanging and and and great uh so I just want to thank you very much about that thank you um I I seem that need one More thing which is I needed to get smacked Mark does that

for a small feed Doug I see okay right that's all I can afford not anymore I worked in Hightech and I understand Google and apple and I you know I knew the iPhone was going to be a big deal and I knew that Google wouldn't be making a Hardware phone and all that basically I was really arrogant and it took those things cratering for to really hit home that my my knowledge was Nothing it was worthless and it's just exact what you've been saying and I had the theoretical knowledge but now I got it for

real so I'm making some big changes and that's you're just you're just a life Mark anyway my question is you don't have any like uh lotion for for thinning skulls when somebody has a really thick skull you know just just kidding thinning skulls thi skull oh oh for thinning a Skull okay I'm sorry do I is there a lotion is that what you're saying how do you help a thick skull but you know so is is there is there any way other than the hard way to toh get through these lessons that I guess most

Traders seem to need to get through nothing has to be hard it's just truly I've learned that nothing has to be hard it's just it's just a matter of of of how strong your desire is in other words if you can if and and this is one Of the reasons why I'm even here in the first place that if if it's if if I can say something that makes this connection between where you're at right now and where you'd like to be U you know more tangible then the let's say the enthusiasm that you might

generate to get there will be enough to cause you to focus on whatever it is that you need to do to get there in other words to take you know to to break to take your goal or your objective break it down or or Create a process for yourself break the process down to its smallest incremental steps and then just take one step at a time so it doesn't have to be hard but you just have to really want to do it and that wanting has to be genuine you can't give lift lip service to

that desire it has to be genuine and and really and and this is and this is really good I mean this is this is really the secret that when I say it's genuine what that means is that whatever You need will come into your life I guarantee you that what if if your desire is genuine whatever you need will come into your life and that's because we have the power within us that's right to bring it out that's right okay right um we have another caller it's rich and California hi Rich morning all morning Mark

how you all doing hey Rich good hey Mark I want to thank you Bo you've really made a big difference in the way I trade too and one of the things I Found was that it forced me to create a worksheet uh that I follow so I could follow 20 trades at a time and I really I'm following your system to the te some of the things that I found that it's done for me is it's it's made me see my mistakes because they're on paper it's also helped me stay very consistent and uh what

I'm finding from the consistency is once I get through a certain amount of Trades and I go back and I and now that I have a record of each trade I Look at can see what consistently was going wrong what was consistently going right I then make adjustments for my next 20 trades the other thing I'm finding now that I'm really becoming very profitable is that I could actually get into what some other people would consider more risky trades but because I'm staying consistent with my stops and my strategy it's not a risky trade to

me because I know those stops are going to take me out and it takes the emotion out Of it right perfect I want to thank you for everything yeah you're welcome rich I thank you for calling and sharing that with us it's like it's like one of the things that that you're realizing is that when you take a consistent approach which most people don't have they actually have a random approach and don't know it but when you take a consistent approach you you're learning what works and what doesn't and you Become confident in your ability

to be able to assess that whereas with people they're taking a random approach they don't know ever learn what works and what doesn't because they're using an unlimited number of variables to generate a trade in other words when they get into a trade when they get a signal and they start building a case one way or the other either take the trade or not take the trade all the all the let's say the rationale that they're Using to build that case or or to take it or not take it is are are are these unlimited

variables that they're adding into the equation which prevents them from ever learning what works or what doesn't and correcting the proper thing I mean you can't you can't tweak a variable if you don't know what variable you change absolutely right ABK I think it's wonderful uh that rich called in we have a stack of emails and uh a huge number of them are not questioned for You they are thanking you because they have read your book they've watched your DVD and they are on their way to you know making better trade so that's wonderful wow

thanks uh we have an email here from Roger in Toronto and he says I like to thank wise trade TV the wise trade TV team and Mark for this wonderful enlightening session timing is perfect now I'm in the state of disappointment because of big losses my question is how a strong and carefree Mind which is a consistent State of Mind can analyze the randomness to create the consistency what do I have to give up to change my way of thinking here's that question again well analyze I have to read that qu can I see that

question yeah it's my question right there Jared you he's referring to accepting Randomness to create consistency how strong how strong and carefree mind which is consistent in I can analyze the randomness here first of all uh as I Kind of break that question down you're not analyzing the randomness for one thing uh you're not analyzing at all what you're doing is you're you're buying or developing a methodology that just finds patterns and Collective human behavior so the idea that you have to analyze anything is is probably where the problem is you're not analyzing Randomness all

you're doing is accepting you're accepting the fact that the outcome to the pattern is random And that's probably the best I could do without talking to Faith in your tool is what he's saying the market is a random event the tool gives you edge accepting that you don't have you know just like Doug's example you may be a software engineer who worked for Apple for many years and you may feel that apple in this particular situation because of the way that I feel about it because of my experience therefore apple is bound to work out

you have to realize it's Totally random and each individual event that takes place is random and that specific event in that moment in time is not any special the one before absolutely absolutely to give you here can I elaborate on that just AE you were down on the floor okay and and and and when I was in Chicago doing consulting work I had a lot of uh you know a lot of floor Trader clients and Friends he love those guys didn't yeah oh absolutely he had a good Time quite a world it's changed a lot

now but anyway it like so so I would be why would be trading from a monitor and and and I traded support and resistance and all support is is that it it's it's a previous swing high or swing you know support of swing low and it's resistance of Swing High where where when you look at when you when when you look at what happened it's like when the market stops at a particular price it means there wasn't anybody there wasn't anybody in The world at that point that was willing to bid it one tick higher

or offer it a on a low one tick lower now when it when it reaches that point again you have to ask yourself is is there going to be is there enough momentum here is there enough conviction in the market for someone to actually bid it past that price and you know and that's the that's the kind of assessment that let's say that you make when you when you're trading From a subjective point of view not a not a what I call a mechanical point of view when you're learning how to how to think in

probabilities but but just to make the example is that is that when Market when the market would come up to resistance or down to support basically all you're looking for is pretty much the same people that supported the price the last time or the chances are they're going to come back in the market because they made money the last time they they Bought they absorbed all the all the sell orders with enough conviction to to Rally the market and so they made money chances are they're going to do it again you trade it and chances

are doing and trade it until it doesn't work anymore but the point is is that because I the reason why I understood that is because I actually knew the traders who did it you see just like on the floor you can see them and hear them not only did I see it on the charts but I talked to Them later on that day they were the ones that did it and there were times for an example when when I'm thinking okay I wonder if son so is going to do this and that and and the

trade didn't work support failed because guess what they were at lunch right there that's simple okay they were at lunch very good okay we have an email from Christopher in California he says I look at a lot of Trades and don't get in then I get frustrated because the price That I could have gotten in at would have created a winner for me this happens all the time yet I still hesitate to get in any recommendations well I I don't one I don't know if that that person should be paper trading at least I mean

they can't tell me that they can't get in paper trading I mean that would be very unusual I'm not saying it's not impossible but you know but at least paper trading they they should be Practicing getting in and then when they're real comfortable with their ability to do this you know just if it trade they trade one share it's the fear of TR that's a trading error and you used the term trading error before that's a trading error not getting in that's right absolutely it's not yeah that's a trading get your signal you don't get

in a trading error so so Trade It paper trade it until you can do it really comfortably and then and then if It you know and then go to one share well you know that's something that we talk about uh at Global Tech we have clients that get the software and but they forever paper trade right and it's like come on just go in do a trade you know buy 10 shares do anything just make a real trade and immediately get out of it just so you have the experience of making a real trade right

get your mind over it it's going to be okay okay well we have another caller on the line it's Mark in New York hello Mark hi how you doing today hey Mark great thanks for calling in what do you have for uh Mark here I I have a couple of questions and comments for Mark first of all I love both your books um trading in the zone and uh the disciplined Trader they they've helped me tremendously um and what I've done is I I've consistently looking for about 15 Pips trading the Forex okay and um

I've calculated that with two lots or two Mini Lots or whatever I'm trading um over a period of two months that I could double my account if if I do that consistently uh four days a week okay so and and I've been playing with with small amounts of money and staying on track with that so um that that mental game has really helped me to to not just always be looking at the computer 24 hours a day seeing what's out there it's it's looking for one particular trade at a specific time of day right um

uh I Have a question for you in relation to your background I I have extensive training in NLP and hypnosis and other related fields and you seem to talk a lot in the same language have you studied NLP or hypnosis at all no not really uh when I first started developing this material back in and like I said 1982 I think NLP was just beginning and uh I don't know ex exactly when it started but um but uh I I did look into NLP at the time but at that Time it wasn't really very evolved

like it is like I'm sure it is now in that uh NLP back in the early 80s was used mostly um as a kind of mental manipulative technique for salespeople and it and and yeah really and it and it really didn't appeal to me and and and when I made up my mind that it didn't appeal to me I just I just didn't go back to it ever again so and as far as hypnosis is concerned I mean i' I've used uh I've used self- hypnosis for Myself in terms of you know making my own

uh self- hypnosis tapes and and you know putting certain um uh affirmations affirmations on the tape and and listening to it over and over again but I don't have a like an educational background in in hypnosis if that's what you're asking he he was swinging this clock in front of was right okay well really good guys we have an interesting email uh this is from Susan in Houston and she says Hi Everybody you are all so great my question to Mark is that I have been trading about seven years I traded early on and learned

of a lot of what you're saying by trial and era I have spent several years learning about the market thinking I could be perfect and get through this with no pain if I did I have taught my daughter how to trade and she's making thousands I sit here and I have this wall and I don't trade I want to desperately I can see all the trades And know what to do I guess I need courage somewhere I went wrong for me what would you say to me thanks in advance somewhere you went wrong for me

me um she taught her daughter how to trade successfully she knows what she's doing but she just can't have the courage to do an event that stopped her from no I would say it's her her her she she's probably so much of a perfectionist that it would make it extremely difficult to people who have a Tendency to be extremely you know oriented towards Perfection would find it very difficult to trade because you have to you really have to think in probabilities and and a probabilistic mindset is almost the exact opposite of a perfectionist mindset and

so what she's going to be looking is is that even though she sees the signals and she sees what her daughter does and and and her daughter's being successful at it the fact she taught her daughter yeah And she taught her daughter the fact is when you get right down to it she wants every single trade to work and so maybe maybe accept the fear no just accept the fact that that you know it's all right if it doesn't work that you know that's it's all right if it doesn't conform to your expectation and that's

where she has to change okay Susan I hope that helps uh we have Wayne on the line in Maryland good morning Wayne hi how you doing um a really good session I was Just listening to it the last hour and a half and um I just wanted to add something which I agree with Mark a th% on trade and psychology um the consistency factor that you're doing something consistent and if it goes against you you have to know that it's normal like the normal cycles and patterns of a stock and if you're getting into a

good stock that goes against you you shouldn't really panic because went down like for Instance what's happening with Apple nowadays it's going through its normal pattern because it went up so much and to add to that what could help some people's ears is by doing other measures buying a protective put or uh active trading other stocks to bring in money while they're watching that I I think let me actually I want to ask a question on the heels of your question Wayne if normal patterns and Cycles okay well first of all you know what is

normal but A normal you know average trading range of a stock what Wayne's saying is different I think basically what you the point that you make is you have to be willing to stop yourself have a have a stop loss in place I don't want our traders to think okay this is a normal movement for a stock therefore I'll just let it go down outside of my stop loss outside of what I thought because that's normal for the stock itself in other words if a stock is um has a certain Volatility factor and you can't

tolerate that volatility Factor you probably shouldn't be trading that stockh right does that make sense yeah absolutely anything that anything that causes you to to anything that causes you to let's say experience Market information being potentially painful will take you out of an objective state of mind now as long as he's in an objective state of mind and he's making an objective assessments as of what the possibilities are and He's still looking at it from a perspective of you know what there's there's a catastrophic loss in other words there there's a level at which no

matter what I think I'm I'm not going to tolerate being in this trade if if Apple trades Beyond this level then then he's fine he's making what I call subjective decisions in other words you can you can trade mechanically you can trade subjectively and subjectively would be an analogy would be people who um uh who Um play uh Texas Holden for an example when you when you start playing poker what you're doing is you're playing your hand and you're not really because you're learning you're not really paying attention to what possibly other people are doing

but actually you'll eventually evolve to the point where You'll Play Your Hand in combination with what you learn about the way other poker players at the table are behaving in other words they're they're tells and then you'll Get to the point where you can actually not even have to look at your cards you're just going to play the players you can evolve as a Trader to actually trade in a way where you can trade subjectively by asking yourself several if then questions and determine pretty much what people are thinking in a way where you can

make these objective assessments about what the potential is for the for for a particular stock or commodity or whatever to do what it's Going to do but at the same time you're always have in mind you know what does the market have to do to tell me that that whatever I think isn't working so you've got your basic objective criteria and once you become more advanced you can use a subjective mind that's right to influence right but I would not suggest people get into subjective trading until they've got this mechanical part down path right absolutely

they've got otherwise they're Just going to get really screwed up y absolutely okay well we have another caller on the line it's Kevin in Florida and this is your first time calling thanks for calling in Kevin hi Susan how are you I'm watching wise trade it's first time call us so I'm a little bit nervous oh welcome um I'd like to say hi to Jared and Mr Douglas um the question I have is that you know I've been uh um trading since uh November of last year paper trading and then I went live trade Um

in October um I was listening to um uh Mark and I'm been reading his book uh discipline Trader um the the question I have for me he was think he said that um don't think on your trades um the problem I've been having is that you seem like you have so much information wise trade and then I'm watching uh CNN on my uh TV I have a laptop which I'm I'm watching my um uh um uh Trading Company trading my stocks right and it just seems like it's overwhelming and he Come out with just a

simple thing don't think when you trade but you're getting all bombarded from Kramer on CNN and you just don't know where to go um is there any way where you can just like settle your mind down to where you can just go to um one area and um take information I don't know if you no I understand exactly what you're saying you're right it's overwhelming and it's completely unnecessary why TR to trade TV no no no what I'm saying is is is that is that pick whatever Edge you're going to trade and and and do

not expose yourself to all the extraneous information surrounding it it isn't necessary The Edge is either going to work or it's not and if it's a good Edge it's going to work a higher percentage of time that it's not and all the other information that you think that you need is not necessary and when I say don't think I'm Not saying don't think about the risk don't don't think in other words I'm saying yes think about what what how much it's going to cost to find out that trade's going to work think about a profit

you know a way to take profits but as far as the relationship about what you need to think about when that edge appears is that there's nothing to think about there's nothing to consider there's nothing to evaluate there's nothing to analyze some of the most Successful I got to chim in here some of the most successful traders that I found were very very simple and straightforward to the point they had one tool they act on it appear at the end all the guys that aren't making money I I I can tell you that I remember

spe specifically there was this one guy I'm not going to mention any names i' walk into his office he had Bloomberg bar charts all these 15 million screens going on he's analyzing picking I see Him all and the guy's driving around a 1982 Honda this is 1998 he's got a 1982 Honda and he you know he and and what you drive doesn't mean anything about you know what kind of money you're making but the guy just couldn't make a buck right and he would commit all of his money towards these these types of tools that

cost thousands of dollars a month and just couldn't make a decision because it was just an overload for him well and I know that um a lot of people That are new to wise trade and watching wise trade TV I mean we talk you know a little bit about you know be aware if the stock you're about to trade has some news story on it that could affect if its earnings or you know some big drug announcement but for the most part keep it simple yeah can I interrupt you just for a second because what

you're bringing up is really important what you do is you take that news story and Factor it into how much you're going to Risk right Factor it into to where you set your stop exactly very good okay we have another caller it's Molly in California good morning morning Molly good morning Jared Mark what question do you have for us okay well first I want to tell you thank you to wise streight TV for bringing mark on the show because it's like really helped me a lot um my question has to do with what he was

first talking about um are you there no okay sorry Start looking at the TV I'm so sorry um okay he was talking about what a pro sees he he said a pro seizes entry if you could just go back over just what else the pro does after he sees his entry what does he do I I got the part where you said he has a money plan but what else does he do he acts immediately yeah there there no really it's pretty simple when a when when when a professional Trader when his Edge appears he

doesn't think about whether The edge is going to work or not but what he does think about is how much is it going to cost him to find out if the trade's going to work in other words he assesses the risk puts the appropriate stops in the market and develops a plan for how he's going to take his profits if the market if the trade goes in his favor does that does that help sure you're saying he actually goes in puts his stops in place not all Pros put their stops in place by the way

that There are people you know for example I often don't put stops in the market I just wait for the market to come to my price and I just get out I don't I don't I don't I just don't have to put it because I know I'm not going to violate that principle that's a personality that's just a yeah well that's me in other words I know there's no possible way I'm going to violate the issue so sometimes I'll put a stop in the market sometimes I won't often times I don't it Doesn't matter if

I'm if I'm sitting at the screen I won't bother doing it you're a disciplined traiter well yeah absolutely so you can do that you really are like the disciplined tra yeah I mean literally literally yeah okay well we have a good email from Bruce and it says uh wonderful show I find myself making a few trades successfully and then I have have a larger losing trade sometimes it is caused by a sudden Market move on the Opening which I am hoping that that market will come down to my entry or even worse where I had

my original stop loss this has been very disappointing over the years my wife and friends think I'm the most intelligent investor and yet I've never had a profitable year trading and I've been trading and trying to learn how to be profitable for over 30 years please help and yes I'll do anything yes they'll do you know what you're going to have to I'm going to Have to read that I'm have to I'm not sure if I followed all of it so one of one of the uh tools or one of the techniques that I recommend

um if you've if you've had a series of a series of wins and taking losses is to take your wins you've had in your paper trading account let's just say you're very consistent at making a dollar and don't let your losers exceed what you've the maximum that you've been winning go ahead Mark okay first of all to to Address this email I find myself making a few trade successfully and then I have a a larger losing trade sometimes it's caused by sudden Market move on the opening which I'm hoping that the market will come down

okay now first of all there's something we we we didn't have time to address and we really don't even have a lot of time to do it now but I'm I'm going to bring it up and that's and that's consistency just isn't a function of learning how to think in Probabilities in other words it isn't learning you know to to train your mind to to understand and believe that there's a random outcome to these consistent patterns there's there's also other other factors involved and that's and that's what I call self-sabotaging beliefs where you know not

everyone not say not every we don't grow up with this unlimited capacity of self self- valuation in other words how much money am I really worth or or or or the and And and what can end up happening is that there could be a self- valuation issue so in other words if we if we end up making money as a trading we might not feel we deserve the money for some reason and then make a trading error which in this case he's saying on the opening with which I then hope the market okay he shouldn't

be hoping anything he should be he should have his he should have his risk already predefined and in the market and the Market either conforms to the pattern or not but the thing is is that it isn't just a matter of self- valuation there are a lot of things we learn uh when we grow up that are that are completely inconsistent with or in conflict with making money as a Trader and if we're not and if we're not um aware that that these other mental components can come into play in other words like for an

example there are traders that um I've worked with who Have really strong religious beliefs that even though they might not consciously remember when when they're in their Middle Ages let's in their middle age that they were taught that you know uh uh anything that even remotely uh looks like gambling is is is bad and evil okay and here they're attracted to trading and then they learned when they were kids that you know that that's making certain or making money where you're not providing A service for somebody okay in other words you know where you're not

providing providing some sort of service a commodity exactly where trading is basically you know you're going in the market and just making money based on your assessment to determine whether the market is going to go up or down that that money isn't made legitimately therefore not deserved and so we are susceptible to making a trading error that gives it back and so subconsciously Yeah subconsciously right so what end up so what we also have to do is we have to learn how to to be consistent learn how to identify when these kind of the these

kind of self-sabotaging beliefs are acting on our Consciousness causing us to compel us to make a trading error and if we're not trading in a consistent manner in the first place it's almost going to be impossible to recognize this you see you see the connection here it'd be Impossible to recognize that it isn't my methodology that's causing me a problem anymore it's the fact that I'm making these errors because I have these self-sabotaging beliefs absolutely well you know Mark uh we just have a few more minutes and I have to read this one email if

you'll allow me this is from pip pip Pare uh Carrie in Canada and she says good morning I just had had to send a note to say thank you very much to Mr Douglas I Just finished trading in the zone last night and I'm totally overwhelmed I have learned so much I am having difficulty putting into words how much I have gained from investing the time to truly study his book I was challenged in many many areas of my life as Mr Douglas shared his unique Insight it shined a light on several areas I was

struggling with fear this book has started a process that I sense will change my life I am now excited about trying new things Letting go of discouragements and switching negative energy to positive energy thoughts about the past experiences that were choking my ability to move forward I know it will take me time to apply this to my trading but I'm actually excited not petrified I want to encourage anyone who is considering purchasing the book or the training set the amount of information the life lessons and the passion with which it is presented has the potential

to bring on Transformation Mr Douglas thank you for offering a training that has brought about Revelation in my life God bless you thanks for doing this program today we are so fortunate to you and WTV for providing this valuable training pip pip hoay thank you very much for that email I would like to have a copy of that you may have this one wow thank you that's very nice so you know it is really powerful and you know Mark and and Jared you guys are have been trading in in the Deepest of of the trading

pits and you know how hard it can be to get your mindset right thanks Susan thanks thank you much well guys you know um again I know uh Mark has taught a lot of people the importance of putting uh their mind over the market and you know guys that's all the time we have for today but remember you can get Mark's DVD training series how to think like a professional Trader for the special low price of $895 that is $400 off the regular price So call in order call call 18834 8881 extension 1 or go

to wisem minds.com and remember the first 50 people to order will get an autograph copy of Mark's book trading in the zone for Mark Douglas and Jared Levy I'm Susan duor we wish you all the very best in your trading for 12 hours each trading day WIS trade TV is your ticket to finding great Trading opport unities in all of The markets now every Monday through Thursday the last hour of wise trade TV is devoted to personal investor training welcome to wise trade University we'll cover all types of topics from General market knowledge to the

hottest trading strategies wise trade University brings the classroom and our top Market experts right to you tune in Monday through Thursday from 6:00 to 7:00 eastern class is now in session what is a swing trade people That you swing and you trade sounds to me like somebody swinging on a swing set trading stuff together something you swing on that's a tray hanging from a tree limb that you could set two kids on and swing them as swing trade is something you do on Wall Street trading swings like this kind of wall Street or something swing

trade well it's like uh when we're plumbing and we put a joint in the air and we uh swing it around Like our boss don't want to stay I imagine you jump from being a carpenter to being a plumber you know to uh some other trade a swinging is it when you trade Partners in uh swing [Music] dancing [Music] swing trading has nothing to do with swing dancing or trading partners it actually has to do with Trading your stock issues for less time than your us [Music] too and indeed you're only going to hang on

to that thing for three or 4 days that's [Music] it of course I watch wise trade TV I love wise trade TV it's like a partner it's it's like somebody who is who's there with you that care about what you're doing on your trading it's my Friend it's my support if you have a question and you're not sure about something you can call in you can email and your question is answered it's exciting to be part of it a live part of it you learn something every day if they're serious about wanting to trade they

need to watch the program