what's up guys today we're back with another boot camp video this is day six the second to last day today's class is super super important we're going over trading psychology trading emotions why most Traders fail how to journal your trades and how to have proper consistency with your trading so it's going to be a really really really important video for you all and I just need you guys all to sit back and listen understand what we're saying take it in and really think about it like think about what we're about to tell you guys because these mistakes these psychological mistakes these emotional mistakes are huge reasons on why Traders don't make it that's the truth so I'm going to start off with how to manage your emotions in trading what you need to be careful of with your emotions the biggest emotional mistakes people make and then I'll be going into journaling and then Ellie is going to do some consistency and um discipline so guys managing your emotions is super super important and a lot of people tell you like you need to have zero motions in trading but the truth is that's impossible you're not a robot you want to try and get as close as you possibly can to becoming a robot but you're always going to have a little bit of emotion involved you're a human being and there it's part of us but what you need to avoid is it's okay to have emotions but what you need to avoid is emotional traps like fomo Revenge trading thinking not being consistent with what you do saying oh this happened last time so now I'm going to do the opposite like no no no no no no this is where most people mess up thinking every time I sell it goes up every time I don't stop out it goes right down every time I buy it goes down every time I hold I get screwed this that this that this that that's all BS that is all Bs what you need to do to avoid that emotional trap is need to stick to your plan and stick to your system in the long run I promise you if you do the same thing over and over and over again you're going to make it so think about it like this and most people know this it's like in blackjack right in blackjack if you have a 16 against a 10 and then you hit one time and you bust and the next hand you get the same exact hand and you stand it and you would have won you would be pissed right but in your head you're thinking I hit it last time I'm going to stand it this time blah blah blah that's BS you need to stick to what you're doing so if you're selling every single time a stock hits a psychological level or it hits your Target and it keeps going more up that's okay you need to stay consistent with what you're doing because in the long run statistics show that if you stay consistent with what you're doing you stay consistent with your game plan with your system you just do the same things over and over and over and over and over again you have a much better percentage you have a much better chance of becoming a profitable Trader so with that that being said there's other things you need to avoid with your emotions there is the fact that when most people are down this is how you have your biggest days is because you're trying to make back a loss this is called Revenge trading this is how you blow your account in order to avoid Revenge trading you need to set a number in your head so for example it's called a Max loss so when you get down a certain amount of it in the day no matter what you sell and this has to be an amount you're okay with losing this amount in a certain single day you're okay with it so for me like I won't lose more than like $1,000 or $1,500 in a day my Max loss is $1,500 I will not lose more than $1,500 in a day and I will not take another trade if I take more than two red trades in a row I stop trading I stop trading and I take at least a 20 to 30 minute break in between my trades if I take a red trade so there's these rules you need to have in place so that you can avoid Revenge trading and you could avoid these fomo actions and one thing that messes up a lot of people also is you're in a losing trade you want to average down into your trade but think about it would you rather buy more of a trade that's losing or buy more of a trade that's winning your emotions are telling you it's cheaper it's cheaper it's cheaper it's cheaper but the chart is telling you it looks like but most people listen to their emotions and they buy when a stock is going down they average down which is horrible if anything you're going to want to average up you you if your Stock's looking great and you're in a position you should buy more right this is where your emotions get you you end up adding back in when if you're better off instead of averaging down if it it gets a huge average down it's not a part of your plan you're literally bettering off looking for a better trade that looks better cuz there are so many opportunities in the market and if the opportunity you picked isn't working out that's okay the best Trader is not the best at winning the best Trader is the one who's best at losing so if you want to become the best possible Trader if you want to be profitable if you want to have those four or five even six figured days you don't need to be the best at winning you need to be the best at losing you need to be able to accept your losses you need to be able to feel the same type of way when you lose to when you win there's three types of winning trades in the stock market there's winning trades there's big wins there's small bit wins and there's small losses those are all winnings trades as well as as well as break even trades are also winning trades so four one second guys so guys recap on emotions you really want to avoid the emotional traps you want to avoid Revenge trading you want to to avoid the what if the should have what have cut ofs all of that you need to stay consistent with what you do you need to try and act as much as a robot as you possibly can think about it like this you're just sitting at this desk you're waiting for something to happen when something happens you press buttons and think of it like this you have commands in your head that if this happens you click sell if this happens you click buy there's no in between there's no I think it's going to I don't think it's going to bounce back there's none of that it's if this then this and if this then this you need to have built-in commands in your head and need to trade strictly solely off those commands and when you take those emotions when you take the psychological aspect out of trading you're going to go so much farther and one thing I want you guys to think about is like when I started trading I made the mistake of I'd see everybody on Twitter talking about a play and I'd be like oh this has to work everyone's talking about it but let's go deeper into that so if everybody's talking about a trade what's the percent of people that are profitable Traders some people say 97% of people aren't profitable some people they say 99% let's say 97% of people aren't profitable so would you want if 97% of Traders are unprofitable would you want to be on the same side as everybody else would you want to be in the same trade as everybody else no I'll answer that for you you you don't want to be in the same side as everybody else why would you why would you when you see everybody on the same trade on the same side there's two things you could do number one run and number two run so now that we went over emotions trading like acting like a robot stuff like that want to go over journaling and how it works so before I share my screen journaling just a brief overview on the point of journaling journaling allows you to adapt your strategy it allows you to make your strategy better and better over time and the market moves in Cycles the market is always changing and adjusting and journaling allows you to adjust your strategy with the market so you may say PB what do you mean by that so the whole point of journaling is think about it like this when you have a pencil you a pencil after you use it for a long time what do you have to do it gets B you have to sharpen it same thing with your trading strategy you need to continue sharpening your trading strategy you never want your trading strategy to get too dull so by sharpening your trading strategy by journaling your trades this allows you to make sure you're always in your A game your pencil is always writing the best your trades your performance is always the best so let's go over exactly how I Journal so journaling 101 team there's first off this is what you want to do when you're journaling you want to recoup your trades you want to go back you can go back whoever once you want I think the more you journal the better I think you should journal every single week every single month you should do a bunch of different journaling so you could do weekly you could do monthly you can even do daily okay but what you want to do is you want to gather all your trades so gather all your trades say we're doing for the week gather all your trades I let's do see month gather all your trades for the month and we need to mark down a few requirements okay you want to look at the day you want to look at the time of day that you entered it you want to look at the stock you want to look at the setup you want to look at the expiration of the contract you want to look at this the want so you want to look at the day the time of day the stock the setup the expiration and you also want to look at things like okay how far out was my strike did anything happen in my life this day your mood you want to look at things like that you want to look at also when you're journaling did I make any mistakes with this trade so after you have all these down so you went you marked down the day you took the trade day you took the trade the time of the day it was the stock it was on the setup it was on the expiration how far out your strike was did anything happen blah blah blah did I make any mistakes in this trade once you mark these things down you want to look at it and you want to say okay so say you took let's let's do let's do a test Journal so take you say you took let's it go spy say you took five trades on okay say you took five trades on spy you took a trade you took three of them at 930 then you took two of them um at 10:30 say these are all losers off the open and these you had one winner and you had one loser what are you going to tell yourself you're going to say okay first off I probably shouldn't trade spy second off I should not take trades at 930 trading the open isn't for me I had a 0% win rate at 9:30 and I had a 50% win rate at 10:30 I'm only going to take trades at 10:30 now let's go deeper into it so say you traded spy Spy we know you're one for five say you traded Apple meta and Tesla say you want three for five on Apple say on meta you also want three for five and say you want two for five on Tesla right but let's say on spy your average winner was 200 your average loser 100 now Apple you were three for five right and say the same thing same thing average winner 200 average loser 200 average winner 200 average loser 100 so wa off the bat we're not trading SPY anymore we're going to take the Apple same meta was the same thing you had a one to two risk reward but now say Tesla your average winner was only $50 and your average loser was $200 even if this number right here is three for five and your average winner $50 your average losers $200 we are not trading Tesla anymore so now after journaling we figured out that we're only going to trade apple and meta because with Tesla our losers are too big with spy we have a bad win rate both apple and meta we have a proper risk to reward and we have a good win rate so for it let's go deeper into it now say with spy now let's say you took so let's go through like this zero BTE trades versus weekly trades so you're reviewing the month you're reviewing the strike you took say you took 20 Zer DTE trades let's say you want 7 for 20 say here you want 12 for 20 but with zero DTE your average winner your Worth to reward was 1 to one with weekly you had a 1 to 2.5 meaning $10 losses to $10 wins but this one's $10 losses to $25 wins this is telling me right now I'm not trading zero DTE anymore and it's this I'm bringing this up because I had this happen to me last year in 2024 where my zero DTE trades were losing more than my weekly expiration trade so what did I do I basically maybe traded the indexes three or four times last year I barely traded the indexes last year I barely traded any zero DTE and VI CU was because I was understanding sure I was winning but my losses were a lot bigger than my wins so I cuted it out and I stick to only weeklys on individual names that can find relative strength and weakness so guys the end of the point of journaling is we're getting all this data and we're figuring out what works and what doesn't work we're cutting out what doesn't work we're sticking to what works so we're basically just going all in on what works it's great you're cutting out what's literally holding you back in your trading that is why journaling is so important and I hope this this helps you understand you know journaling you're just going through your data of your trade and you're seeing what your losses have in common what your wins have in common you're cutting out what your losses have in common and you're doing what your WIS have in common with that being said Ellie it's all you all right thank you and guys if you're not journaling at this rate you you got to journal because you're not going to know what you're doing wrong if you don't journal A lot of people when they get into the journaling space you know they just kind of oh I did this and this like no no no what really happened so you probably heard before sometime in your trading career or if you're brand new you haven't heard before but all about emotions when it comes to trading unfortunately I wish I could have Elon Cod a a neural length to go into my brain so I could take the emotions out but you know we're not there yet maybe in the future tough joke but okay so building emotional discipline how do we do this all right how do we do that it's all about our trading process and I'm actually going to show you my exact process so you can walk through it and again feel free to copy it I find that a lot of Traders when they actually have a set process of how they're going to look at charts set things up set their alerts etc etc they have a higher win rate because they come to the market for prepared okay so what is my process so every single Sunday minimum for two hours I look for setups and what does that mean basically while if it's football season I'm watching the football game go Birds right just going through charts what looks good what looks bad what looks tradable you don't want to be sitting in the chart that making squiggly lines across the screen you want to find those big clean breakouts that have bases or big breakdowns that are now retesting key levels so you want to get like a collection of those and you don't have to do this on Sundays uh most Traders will tell you that their weekday starts on Sunday however you can also do this at nighttime but the plan for this is you just want to know what the the dailies are doing because not every day a DA is going to give you a signal to hop in and make money so what I do is I set price alerts and what I mean by set price alerts to say that there's a stock we use this example up here is you know retesting 100 which is like a key psychological level I'm going to set a price alert there you can do it on trading view it's free of hey we're touching 100 again just so I'm constantly having an eye on the market and what's kind of going on because what happens is there's so much craziness in the markets that you really miss those we call them the fat pitch layups like the easy jump shots to win the game and start building your account so that's my process outside of the market let's talk about when the market actually opens so I'm going to switch to Colors here just so it looks prettier so every single day you want wake up one hour before the Market opens why you can't just wake up at if you're on the East Coast right 9:29 and expect to start trading because you want to see what's moving you want to take time to digest you want to take time to also wake up trading is by nature extremely stressful so you want to make sure you're nice relaxed calm and prepared as soon as the Market opens so that's why I recommend Traders wake up 1 hour before the Market opens now if you have a job or anything like that you know maybe listen to like a morning show or something like that that's talking about so stocks right you always want to keep having your mind around stocks just so you're aware of what's Happening headlines things like that the easiest way to do this is to scan a watch list uh so we've shared many times recommend you watch a video on pb's YouTube called how to find stocks to trade we literally teach you how to build a watch list and it makes it really easy it'll maybe take you 30 minutes to watch the whole video and then build your own watch list and every morning you're going to wake up and you're just going to go through the watch list and just focus on a few names what I find is is Traders right they'll have like hundred names on their watch list they're watching everything that's not right because you want to make sure that you're looking for that fat pitch okay there could be 10,000 setups but there's that one that'll take your small account or medium account to a large account and those type of setups you really want to focus on and again if you follow the advice up here of setting alerts uh you can also make your alerts go pre-market if you want so you'll know if a Stock's above a daily breakout you really wake up with notification on your phone you don't have a do any guessing that's a little bit more advanced uh for beginner boot camp but it's something you can do if you're definitely more experienced now the most important part creating a trade plan what is a trade plan if what do do if a then we're going to do B okay if C then we're going to do D it's really that simple that's what trading plan is it's just covering your basis okay there's three ways this trade can go you want to make sure you've thought of all three ways that way you're prepared whatever comes to you and all you have to do is just follow your plan if you have a plan okay say I give you a treasure map and they said hey all you had to do is go to this beach and dig where the big X is and you're going to find treasure just walk down the beach and dig in the whole you're not going to have emotions or anything like that involved this removes all of your emotions okay now how do you actually build one you probably hear it all the time but what does it look like has anyone actually provided you with a trade plan well here I'm going to do it right now exactly what I do every single morning so we talked about in step one okay is stand scanning for stocks so we can see that we have the Nvidia daily chart okay and it's forming a bit of a flag or a channel however you want to read this so we know if it breaks down here it's going to go bearish and if it breaks up here it is going to go up so we're going to buy calls here and we're going to buy puts down here so we know this setup is coming we know this setup we scanned and we have it charted you can even set alert if you want okay so now what do we notice the next day okay Nvidia actually breaks out how do we know that because if we look at a pre-market we can see this is that this little diagonal line down here that is this diagonal line right here okay okay so we know it's above it's above the daily breakout Nidia is up premarket what is our trade plan so there's two ways that this trade plan could work out but we need to take in the big picture and everything that's happening Step One is what is the trend okay so ignore all the indicators on my screen what is a trend if I draw an arrow like this is NVIDIA going up or is it going down clearly it's not going down so let's just erase that oops there you go so we can tell what is is the trend the first question you want to ask yourself every single day is what is the trend so the trend is up okay and if the trend is up that means we are going to buy calls so that's step one step two is where is it relative to your levels remember this is the pre-market so we can see okay right before the Market opens this is also a f minute chart by the way we can see that the video is opening at the highs okay it's opening at the highs so that means it has a lot of interest in this stock okay there's a lot of volume there's lot of momentum the trend is up it's above the prior day high okay so what is our trade plan our trade plan is if it breaks the pre-market High okay which is this candle up here we are going to buy calls okay and if we miss the pre-market High we're going to look for an area of consolidation or something like that in order to again follow our entry and exit strategy when we talk about EMA tabs that is what we're going to do so that's our trade plan now if Nvidia doesn't break the pre-market High we're not going to trade it okay if it doesn't break the pre-market High we're not going to trade it so there you go there's a trade plan and now what actually happens Nvidia breaks the pre-market high and goes up so we buy calls here and these calls went well over 100% because it was a Friday it's really that simple so that's your trade plan if you came in here saying oh well you know Nvidia tests this level that I don't have or if Nidia breaks the adma I'm going to short it it's no no no no no no above the pre-market high above the previous day high it is a long you're going to buy calls trend is up everything's up you just buy calls and make money all day so that is how you make a plan just look at it okay from watching this boot camp put together okay did it break the pre-market level if it did check mark okay is it Trend up check mark two good reasons to enter a trade always and both of our reasons tell us to buy calls and there you go broke the pre market High the trend is up this is an 80 ma or 90 MAA whichever you prefer and you made a 100% so what if your trade plan said oh if it breaks the pre-market High which is all the way down here okay but you missed it you had work you had to take the kids to school well what do you do if you recall if you go back in the recording we said we're going to look for a tight area of consolidation in order to enter off of now we missed it because we had to drive the kids to school that's fine when a stock is moving very violently and very fast okay and has a lot of interest and it's breaking out of a daily blah blah blah you get the idea we can always find another area of tight cons consolidation so is there tight consolidation any of these candles here on the left no it's going straight up okay so we can't justify an entry there right because we buy up here we have to assume that risk-based mindset it's going to come all the way back down and make us lose money but we can see s on the video just kind of resting in here now if I just draw something like this all right and another part like this see just kind of resting this is a bull flag so Nidia is flagging out and that is what we always look for when it comes to another entry again we had this already planned out we don't have to guess on where we're going to enter we're going to enter breaks out the flag off the 80 MAA or the 90 MAA there's your entry right there and you're going to sell always at high of day and that is it so you missed the Big Move off the open have no fear you still made 50% up here that is it notice we had both areas covered and now if you were able to hit the pre-market High you could even take some of that money you made off that first trade and put it into this flag and stretch your gains hopefully from this example you see the importance of a trade plan if we were just like oh n's going to put in an ugly candle because it's too high you would have shorted it here and had a really bad day so something I always thought was was funny is I had a mentor tell me once is show me a Trader and I will ask them okay their process what is their process to trade and that's exactly we just demonstrated here me and PB both follow the same exact way when we scan in the morning it's very easy it's very consistent and that leads me into that next point is maintaining consistency so I find that you know Traders will jump strategy to strategy like a new like the new fat right it's like oh they like this this way and they like this way and then they like this way and then as soon as they lose with one strategy boom they go to another one they say oh that strategy sucks where that strategy SS where that strategy is not for me but they never even gave it a chance so trading is a game of probability okay I take losing trades every every single week okay every single week but I also win every single week so you just have to win more than you lose that is it and you probably heard this like a thousand times already but you have to have big Winners and small losers and we covered that in the exit class as well and exactly how you can make sure those losers are small and make sure those winners cough cough hint hint runners okay will make sure that you win more than you can lose so as I mentioned is I take trades that don't work PB takes trades that don't work but we lose like 5 10% of them like it means nothing it means nothing so what do you do the trade doesn't work out what do you do you just have to dig into the why okay the why it didn't work why did it reject that level why did it not hold why was it the long entry why did I get stopped out only for it to go to the Moon why is the Discovery in how you maintain consistency the why okay diving into the why is what's going to make you be like hey I'm not actually crazy here like there was something that stopped me out here and as you develop a journal and as you go through things that PB just said you're going to discover what that why is and you will prevent it for the future which then if you prevent why this went wrong your wins will be more okay then your losses one my favorite quote is is 90% of Traders don't make it because they run out of money okay it's not because they don't know how to they didn't have a working strategy no they run out of money every single time they take an account it goes down to minus I don't know $1,000 that's all the money the trader has to their name and the trader never comes back to the market they run out of money and they give up all you have to do in trading as I can't stress enough is keep your seat at the table okay no big blowups no breaking rules things like that every day you want to make sure you have Capital to show up and I almost guarantee you that you will be consistent following the system day after day after day so that is all I have have for this and I hope that you have a wonderful evening so guys now that you know all that I really urge you guys to go create a trading journal Journal your trade use journaling software whatever you want to do but please take what we're telling you in this video and take it seriously if you enjoyed then make sure you go join the free Discord below it's 100% free this boot camp has been insane and tomorrow day seven is going to be super super important as we're going to be wrapping everything together it's been really really hard it's been really really good for all of you guys and I hope you guys have enjoyed I really do subscribe like comment peace [Music]