if you find you lack discipline and keep taking poor trades out of boredom or frustration have you ever tried acting like a professional when I'm taking a position I ask myself how surprised will I be if this stops me out if the answer is anything less than very surprised I don't take the trade I read those two quotes before every trading session for months because they form the foundation for everything about your trading strategy and all psychological challenges it makes you follow your rules stay disciplined and focused and execute your Ed however remember that psychology
mostly only matters once you have an approach that gives non-random results and it's only what can stop the Edge from being properly executed similarly in order for most advice to even apply you need to have that edge or at least a very clearly defined approach just staring at a chart or doing random trades will accomplish very little you can learn more about edging and more for free at Iman trading. org now that we got that necessary prerequisite out of the way here are my personal favorite pieces of advice our brains did not evolve for us
to be happy they evolved to avoid danger and pain AKA bear we designed to avoid the bad it's partially why bad things hurt more than good things feel good Tom Howard's pain chart is excellent for this many of the irrational things we do in trading might just stem from the desire to avoid pain like deviating from our strategy by not taking losses or profits when we're supposed to changing the position sizing and much more which of course brings us back to acting like a professional staying focused and understanding the true weight of what's required to
make trading work that includes finding the solutions to your particular struggles creating reminders for them and doing the work that's required to ensure you don't repeat the same mistakes over and over again nobody's here to hold your hand and there's no chance of succeeding if you can't get into some type of mindset that keeps you from being stupid this quote should encapsulate every other reminder all problems that you're dealing with and everything else it's sort of just the British version of saying lock in and when it comes to the actual trading part there's nothing better
than this because of how strongly it orients you with your trades conviction high probability setups whatever you want to call it I love this quote however do you notice any problems with it well it doesn't apply to approaches with frequent small losses that are offset by larger wins if you've got a 20% win rate then you're expecting most traits to fail because that's what you've designed if you weren't thinking about that already then there's your first lesson in making sure you're skeptical and analytical about every everything you see and hear no matter who it comes
from lots of advice is based on an underlying assumption and so it only applies with that assumption in mind and only if that criteria is met if you're part of who this quote applies to based on how you trade then it's excellent for us anyways since we evolve to be bad at trading we should limit the opportunity for our humanness to cause problems one real actionable way to help with this is by automating everything you can specifically when it comes to trade executions there is no ADV advantage to using a mental or manual profit Target
and stop loss versus just having the computer do it automatically for you many trading platforms now have chart trading with custom brackets so the stop loss and profit targets are automatic as seen here from one of my older live streams using ninja Trader this happened to be the final day of passing a trade day evaluation more info on my Approach and prop firms on my website remember the point of this is to eliminate the human aspect of trading as much as you can which reduces the chance of big mistakes don't give yourself the opportunity to
do something stupid that's why max daily losses that automatically lock you out of your account until the next trading day are so great now Jim Simons consistently achieved the greatest public Returns the world of Finance has ever seen I think I don't know so how exactly did he do this what he didn't reveal his exact strategy and kept the models to himself so his fund could make billions from it why would he choose to make billions of dollars when instead he could have made a couple hundred thousand by selling a mentorship or course H because
if you find some type of inefficiency edge imbalance pattern whatever keep it to yourself if you can't make money trading then sell a course or mentorship take a look at these three minute Candles there are eight total which means this is 24 minutes of price action represented on a 3-minute chart this is what that same action looks like on an 8 minute chart instead of 8 3 minute candles we have three 8 Minute candles riveting stuff here stop falling asleep sleep and after switching to a 24-minute chart all of that action gets reduced to just
one candle and what about this what's going on here what is going on well the only difference between the three representations of the exact same data is how much information we see there is no inferior or Superior time frame there's just picking the size of your filter do you want to see what happened inside of the candles or not that's it which I've said many times and will continue to do because when people say things like that time frame is too small what they're really saying is you're seeing too much information and wow suddenly that
sounds like a pretty stupid thing to say doesn't it bang lesson number two maybe about using your brain when you hear someone making a definitive statement about what you should or shouldn't do a lot of opinions going on in the advice world of day trading a lot of opinions are stupid but also I'm just being a jerk most of us got into trading my learning from fake gurus on YouTube which means it's not really a beginner's fault for propagating the dumb information taught to them by people who aren't even experienced enough to understand the problems
in the advice that they share they didn't know that so question everything you hear and break down whether it makes sense or not very quickly it's worth mentioning that the indicator called average true range or ATR with the period set to one instead of its default of 14 can be extremely helpful as a way to quantify volatility and any changes to it by showing you the the exact total range of each candle doesn't take too long to become familiar with the typical sizes of candles based on what time it is which can prevent you from
making mistakes due to changes in that volatility since we are completely unable to guess the time frame of a chart which is proven by this video if you want to take the test yourself ATR is great for immediately telling you whether a trade based on price action will require any changes in size to the profit Target or stoploss however as seen by this yellow moving average all indicat just reinforce what's already there nothing actually changed the indicators have no Edge on their own and yet reminders and reinforcers are helpful so use whatever you want as
long as you understand the limitations and don't get scammed by paying for an algorithm or indicator because remember from Jim Simons that you keep it to yourself if it works by itself we'll talk time most traders who succeed aren't earning enough to replace a full-time job but some are of course making a lot of money money I've seen it myself however it's fine to have realistic expectations and honestly a big chunk of profitable Traders aren't even outperforming the overall Market but they're making consistent money through a process they enjoy well maybe they hate it but
honestly I don't know how you could reach profitability without enjoying the process because of how brutal trading is either way most people are better off swapping out the lambo aspirations just for the idea of making a little bit of side money from a process that you actually enjoy emphasis on enjoy ironically or not and perhaps just coincidentally I only started getting payouts from funded accounts and making a very small amount of money after switching my thinking to that full breakdowns of firms and reviews on my website but don't use them if you don't want to
George Washington said that comparison is the thief of Joy so only compare yourself to people you're better than like British PE people no he didn't but the first part of that quote is good because there will always be people sharing massive payouts and Returns on social media a lot of them are fake some of them are real but still you don't know what truly went into accomplishing that and Twitter /x is by far the worst platform for newer Traders and either way trading is a solo Journey it is you verse you focus on yourself king
or queen Mark Douglas said that you'll never know the reason why price action did anything because it's moved by thousands of different participants all with varying degrees of influence so sure use your approach as a framework to describe assess and analyze price action but don't say with authority of the exact reason why price actually did something unless the people responsible for moving it tell us we'll never know the real reasons for anything happening and no there's no master algorithm that controls everything I'd make a comparison to believing that the Earth is flat but I wouldn't
want to upset that Community again actually yes I do the few comments per month about how I'm stupid for believing that the Earth isn't flat are entertaining keep them coming mark dougl time but I'll be reading his quotes instead of showing the clips of him saying them so that his wife can't copyright strike the video since apparently apparently I'm not worthy of adding commentary to what Mark said and again remember that most psychological trading advice only applies once you have an edge which I've been saying since 2022 Mark was very clear about not putting too
much emphasis on individual trades because everything is just a distribution of probabilities and should be treated accordingly if you expect something to happen to 60 out of 100 you don't know exactly when those 60 will happen and it's stupid to get upset when it doesn't work since losses are expected move away from Individual results take a step back and look at the overall performance there are actually a couple of my videos about him still up on the channel but let's keep that between us so you know who doesn't take them down I'm not 100% sure
here but I think it was Tom Howard who said it can help to switch your expectation from a trade winning to it failing of course individual trades shouldn't be focused on too much but that little trick is great for reducing the emotional toll of the results wouldn't you rather be pleasantly surprised by wins and emotionless at losses rather than emotionless at wins and disappointed by losses anyways Mark also emphasized having a process verse results mindset not confusing hope with intuition and that executing your Edge without fear or hesitation is a learned skill that takes considerable
effort to achieve and in response to those popular phrases like the trend is your friend and cut your losses quick and let your Winner's run he said who in the hell knew what that meant and how to do it which I love because those phrases are in the category of bad advice that's vague enough so that people can blame you for misinterpreting it if you fail yet they'll credit the advice if you do well because of it it's just wishy-washy nonsense that means nothing especially cutting your losses quickly and letting your winners run because it
only applies to very specific trading systems as discussed in the words of rydom video the size of losses versus winners only means something once the win rate is factored in it's no more more valid than letting your losses run and cutting your winners quick because the results of that are only dependent on the win rate enough of that though most importantly since it builds the foundation for everything that you'll end up learning and doing be skeptical analytical and separate the person from the message or idea some frauders can give great advice and some good Traders
can give terrible advice just use your brain and think about it objectively do not get attached to gurus and don't do All or Nothing think this video was just a simple collection of some of my personal favorites but I'm in trading. org has actual guides and other topics you need to understand for that advice to help as for me my nice long break from Trading finished a few weeks ago and I'm currently up a few thousand on two funded accounts so there will be some withdrawals soon yay more exposing videos coming soon and thank you
to the patrons who support my work and get to see everything early nothing there on how to trade
