Transcript for:
Key Takeaways from Trading Journey Lecture

“This journey of trading has been the most  frustrating thing I’ve ever done in my life!”  Said Joe, a long-term subscriber on this channel,  whose frustration I could feel leaping out on   the screen I was reading his message on! “Nothing else has been this exasperating!”  “I’ve taken courses, spent hundreds of  hours watching trading videos on YouTube,   and followed people I only later  learned were complete trading frauds!”  “I've tried hundreds of strategies and  indicators looking for the Holy Grail,   only to realize it doesn't exist. I've tried scalping, day trading,   swing trading, all with little or no success! I'm not looking to become a millionaire overnight.  I just want to succeed at trading  so I don't need a full-time job to   pay the bills, so I can have freedom of time. It might sound dramatic, but at 55 years old,   it feels like I'm running out of  time to make my dream a reality!  I'm very good at my day job, but I’ve realized   that what makes me successful at work  doesn't translate to trading success.  I consider myself a pragmatic person, but  I just can't figure this trading thing out!  Any help or guidance would  be greatly appreciated.” Frustration, hope, frustration again,  bigger hope, bigger frustration again   is a common cycle of the typical trading journey. We've all heard the stories of overnight trading   success somewhere, but the reality  of trading is far less glamorous.  Many traders like Joe experience  immense frustration on this journey.  They’ve poured hundreds of hours into learning,  chasing strategies, and following trading gurus.  Another channel subscriber (we’ll  call him Mark), wrote to me about   how he also wrestled with the question of  whether trading was a viable path for him!  Mark’s spent years experimenting with different  styles, from forex to synthetic indices,   but consistent profits remained elusive. In his own words, he wrote:  “For the first year, I learned about forex  from YouTube and Babypips. In my second year,   I transitioned to synthetic indices because I  preferred a market not affected by news and also   because it required a small starting capital. I used demo accounts the whole time,   but haven't been able to make consistent profit. In my 3rd year, I returned to forex when I   heard of prop firms. Then, I learned a  trend strategy from Adam Khoo's videos.  However, at the end of my 3rd year, I  decided to re-watch the learning videos.  This rewatch helped me realize my mistake  in applying the trend strategy. I had been   trading the strategy wrongly the  whole year - I didn't learn well   enough before trying it on demo accounts. This led to me failing 2 prop accounts due   to exceeding the maximum overall loss. Interestingly, I did have the discipline   to stick to the bad strategy  even during the losing periods.  After realizing my mistake, I backtested the  entire year of 2023 and made some modifications   to the strategy. This backtest resulted  in a 43% win rate and a 55% total return.  It has been 2 months since the backtest.  In the first month; December, I made 0.6%.  In January, I made 0.3%. February is almost over,   and I'm currently down about 4%! All on demo accounts!  Now, I'm considering trying a prop  account again, but I'm unsure.  Do I need more experience on demo? Do I need to further develop the strategy,   or perhaps work on my trading psychology? From these traders’ stories,   a familiar theme emerges. And I'm sure it’s one that   resonates with many of us. During the early days of my   trading journey, I also questioned  if this path was truly right for me.  But there's a silver lining! No matter the obstacle, the human spirit   endures. We all have the capacity to persevere. As proof of this statement, we can see that Mark   identified a flaw in his approach and backtested  a modified strategy with promising results.  While Joe is actively seeking  ways to improve his skillset.  Their stories might not sound like it right  now, but this is the spirit of a true trader!  The path to trading success is rarely linear. And their stories are a reminder that   setbacks and doubt are normal. In this video, I'll share 5 crucial   trading psychology mindsets you NEED to  focus on to fastrack your trading journey   from a losing trader, to a winning trader. These 5 crucial mindsets are surprising   trading psychological tricks that reveals why  losses are actually a stepping stone to success! 1. Losers are the Actual Winners. David stormed out, slamming the brokerage door.  Sarah, a seasoned trader, saw  a familiar scene; her own past.  Back then, losses felt like a vicious  dog bite, leaving her defeated.  But Sarah, unlike David, didn't quit. She treated losses as lessons.  She studied, analyzed, and learned from mentors. It was humbling, but with each loss,   she chipped away at her ignorance. Now, Sarah approached David;  "Losses hurt," she said gently,  "but they can teach you the most."  David scoffed, "Easy for you to say." Sarah smiled, "Losses are part of the   game. The difference is how you handle them. You  wouldn't expect to become a chef without burning   and messing up a few meals, right?" David considered this.  Maybe losses weren't the  end, but a chance to learn! "Learn from your mistakes," Sarah concluded.  "Adjust your approach, come back stronger!   That's how you turn losses into wins." Losing isn't the opposite of winning in trading;   it's part of the process. So, embrace the losses.   Learn from them, and adapt! That's the path to true trading victory.  The next losing trade might be the start  of your greatest learning experience. 2. We All Got into Trading for the Wrong Reasons. Let's be honest, most people in the world   of trading loves to showcase  fancy cars and dream vacations.  It's no wonder we get caught up in the idea  of overnight success and financial freedom.  But here's the secret; trading can be much more  fulfilling when you have the right reasons.  Forget the "get rich quick" schemes.  They're just empty promises.  The real rewards of trading lie  in the challenge and the journey.  Here's why:

  1. It's a Mental Workout!  Trading keeps your mind sharp as you learn,  analyze, and strategize. It's a constant   learning process that pushes you to grow.
  2. It helps you take Control of Your Finances!  Trading empowers you to make your own investment  decisions and shape your financial future.  3. The Thrill of the Climb The path to success may not be overnight,   but steady progress and continuous  learning can be incredibly rewarding.  4. It forces you to Find Your deeper "Why" Before you can be successful in trading, the   markets exposes who you truly are, and forces you  to confront your inner demons. So, it’s advisable   that before you jump in again, take a moment  to reflect on what truly draws you to trading!  Do you do it as a way to get rich quick? Are you  truly fascinated by the complexity of the markets?   Are you truly fascinated by the idea of developing  a valuable skill that will feed you for life?  Once you identify your "why," you can  create a realistic plan and build the   discipline needed for long-term success. Remember, consistent effort, a healthy dose   of reality, and the right motivations are the  keys to unlocking your true trading potential.  So, ditch the Lamborghini dreams, focus  on the journey of learning and growth,   and who knows, financial freedom might  just follow as a happy consequence! 3. It is more than Just Trading Financial Assets. Trading goes far beyond simply buying   and selling financial assets. It's a multifaceted journey that hones   valuable skills and cultivates a unique mindset. Trading forces you to develop into someone that’s   more disciplined, more logical, more in  control than you were before you started!  You'll learn to analyze information  objectively, make calculated decisions,   and stay composed during market fluctuations. These skills translate beautifully to other   aspects of life, from business ventures  to personal finance management.  It's a journey of self discovery. Trading forces you to confront   your strengths and weaknesses. You'll learn how you react to losses,   how you handle risk, and how patient you can be. This self-awareness is invaluable in any pursuit,   helping you identify areas for improvement  and build a more resilient mindset.  And it is a continuous learning process. The markets are constantly evolving,   and successful traders are lifelong learners.  You'll be exposed to new strategies,   economic data, and market trends. This constant thirst for knowledge will   benefit you not only in trading but also in any  field that requires staying ahead of the curve. 4. Consistency is not spoken about enough. Consistency in trading is a fundamental   principle that often gets overshadowed by the  allure of quick wins and dramatic results.  Each successful trade is like laying  a brick. You might have a fantastic   day and lay down ten bricks at once  when you go on a profitable streak.  But if the next day you get discouraged  and skip laying any bricks, or worse,   tear down a few you already laid when you  lose trades based on emotional decisions,   your progress will be slow and erratic. Consistent traders are like bricklayers who show   up every day and methodically lay their bricks. They might not have explosive growth every day,   but over time, their wall steadily rises. They understand that there will be good days   and bad days, but their focus remains on following  their strategy and managing risk consistently.  Let’s use an example: Trader A makes 10% profit one day,   then loses 5% the next, followed by a 2%  gain, only to lose 6% again. This trader   lacks consistency and might be making decisions  based on emotions or short-term opportunities.  Trader B: Makes a consistent 3% profit every  month. Over a year, this translates to a 36% gain.   This trader prioritizes consistency and likely  has a well-defined strategy he follows diligently.  The lesson here is consistent small wins  add up to significant gains in the long run!  Consistency is the key to building a  sustainable and successful trading career. 5. It is more about you!  The allure of trading often lies in external  factors—the potential for financial freedom,   the thrill of the market dance, or  the dream of a luxurious lifestyle.  But the truth is; trading is more  about you than anything else.  It's a deep dive into your own psychology,  a constant test of your discipline,   and a relentless pursuit of self-improvement. Can you stay calm during a losing streak?  Do you get greedy when the price surges? Trading exposes your emotional triggers and   forces you to develop strategies to manage them. This emotional intelligence spills over into   all areas of your life, leading to better  decision-making and improved relationships.  Trading success hinges on following your  strategy, even when it's tempting to deviate.  The market can be seductive, offering seemingly  foolproof opportunities that break your rules.  Trading teaches you the power of delayed  gratification and the importance of sticking   to your plan—A skill that benefits you  in goal setting and resisting impulsive   decisions in everyday life. Then there is self-awareness.  Losses are inevitable, and how you react  to them defines your future as a trader.  Do you analyze your mistakes and adapt? Or  do you fall victim to self-doubt and blame?  Trading forces you to confront your weaknesses  and become brutally honest about your strengths.  This self-awareness allows you to identify  areas for improvement, both in trading and   in your overall approach to life. Trading isn't just about mastering   charts and technical indicators. It's about mastering yourself.  It's about harnessing your emotions,  strengthening your discipline, and cultivating   an unwavering commitment to learning. In the process, you not only become a   better trader, but a more resilient,  adaptable, and self-aware individual.  So, are you ready to face yourself in the  trading arena, to lose so you can win? Of course you don’t master the art of trading  in one video, that’s why I will suggest you   watch this video that questions who you  truly are – a trader or something else.  Watch to find out! Don't forget to like, comment,   subscribe and share if you find the video helpful. Thanks for watching.