Most traders fail because they ignore risk management. The speaker argues that minimizing losses, not chasing bigger wins, is what separates profitable traders from the rest. He credits disciplined risk control for his lifestyle in Dubai and first-class travel.
The reason you're not a profitable trader is literally because of this one simple thing that you're not doing, and that is to focus on risk management. Once I started focusing on my risk management, that's realistically what's allowed me to become a profitable trader, to be able to do these crazy things that you guys see me do, like live in Dubai for 3 or 4 months, go stay in the nicest hotels, the nicest resorts, always fly first class. That's what's allowed me to get to this point, and that's truly came because I started focusing on my risk management and not giving the markets back their money. A lot of people, if you've been trading for over, realistically, 2 or 3 months, you've probably made a decent amount of money trading if you don't subtract your losses. I always say if you can minimize the amount of losses you have, you don't even need to technically make more money because the less money that you give back, the more money you keep in your pockets. So if you as a trader can properly focus on risk management and focus on not giving your money back to the markets and keeping more of the wins that you actually do make, you can instantly become a profitable trader.
