Master trading without trading...

Most people fail with trading, and it has absolutely nothing to do with the strategy that you are using. The reality of what most traders go through is they will discover trading, you will start to make a bit of money, you will think that you know what you're doing because you have made a bit of money at the start, and then everything comes crashing down. You think that you have no idea what you're doing, your psychology goes out the window, you're entering into every single trade that you see, you're You're trading times that you don't usually trade and times that you know that you should not be trading, and you're doing all of this whilst you know that you can't be doing any of it. Trading is such a weird game, and if you master the game, your life will be—

your life will be seriously changed from trading.

And that's why so hard and why do so many struggle with trading. And the reality of it is it goes against everything your subconscious brain and what you usually would do in a scenario like, for example, if you lose money. If you lost money, let's say you have a wallet with $100 in it. If you lost $50, the first thing that you're going to do is want to find that $50. You want to go and make it back. Whereas if you do that in trading, you're only going to get in a worse situation. So let's jump straight into this video talking about more of the psychology side of trading, because you don't need to be a master at trading to make the millions of dollars. And that is the truth. I've seen so many people, especially in my mentorship group, they are not the best traders. No offense to them, they're probably watching this video, but they're not the best traders, but they make the most amount of money because they are consistent.

And that is what we're going to be talking about in this video— how you're going to become extremely profitable without actually being the best trader in the world.

So let's jump straight into it with the 5 biggest mistakes that the average trader makes and that you are probably making. Now the first thing is fear. Now fear could mean multiple different things. You could be scared of failing, you could be scared of taking a loss. You know, there's so many different things that go into the category of fear, but I want to be talking about specifically is just the failure and the thinking that you're going to fail with trading and, and taking losses in the bigger picture. Now think— you have to think of trading like you're running a business, okay? If you're starting a business, I'm sure you've seen the statistics, I'm sure you've seen successful talk about it in the past. You're going to fail. There's not a single trader that has not failed in some sort of way, that hasn't blown accounts, that hasn't blown live accounts, that hasn't blown prop firms, that hasn't lost loads of money. Now, the reason why this happens is because, like I said at the start of the same reason I did. You see some people on social media living the high life and you think, what are they possibly doing different to me that I can't do exactly what they're doing? And you're right, you can do absolutely anything. You can be in the situation that I'm in if you just fix what I'm going to be talking about in this video. So fear is never going to necessarily go away. You're just going to have to overcome it, and a lot of that will come by experience. And by the confidence. So I always say to traders, when you become profitable, you don't unfeel certain things. If I take a loss, I'm not necessarily going to be the most happy person in the world, you know. Sometimes I take a loss, it's annoying. I, I'm, I'm not necessarily angry, but I would rather make money trading. But the difference between me and an unprofitable trader, and the difference between a profitable trader versus an unprofitable trader, is how you act upon the way that you feel. So if I'm— and that goes with fear as well— if I'm scared to enter into the market, I'm never going to enter into the market. You need to do something to overcome that feeling that isn't actually there, but you just feel it anyway. So if you're feeling the— feeling fear when you're trading, you're just going to have to overcome it by getting that experience in. Don't be scared of losing, you know, to a paper account if you need to go to a paper account. If you're trading an evaluation then drop the size. Also, fear with trading— what a lot of people do that I completely disagree with. Now it's a bit of a controversial take. Going all in with trading does not mean quitting your job, never going outside, sitting in your room 24 hours a day and just literally staring at the charts for 24 hours. That's not what going in 100% means. In my opinion, you have much more of a chance to become a successful trader if you keep your 9 to 5, you keep your regular day job, whether that's your trading before open or even— that pressure to make money quickly and having to be successful quickly with trading. Because the reality of it is you don't know how long it is going to take you to become a successful trader because it's such a difficult game. It could take somebody 6 months, it could take somebody 12 months, it could take somebody 4 months? It's such a difficult way to determine. And having that job, having that consistent income in the background whilst you're trading almost on the side, but you're putting 100% into it, makes things much easier. As well as that, it also gives you a target. Now let's say you're making $2,000, $3,000 per month trading. Now you know, your brain, okay, if I can for 6 months straight consistently hit double what I'm making from my 9 to 5. I can consistently up for— if God forbid something goes wrong, then that's when you can get to the point where you can start to quit your 9 to 5. You now have that goal that you know that you need to achieve to be able to go full-time on trading, and that's when you should look into trading. Okay, the next biggest mistake that traders make is greed, over-leveraging, revenge trading. Everybody's done it. I've done it before. You have definitely done it before. It just happens. It's the nature of the game. But first thing that I want to talk about, especially with overleveraging, you should never overleverage. Don't ever overleverage. Don't ever risk more than you can lose. We're in a great time right now where even when I start— you need to abuse prop firms. They are so cheap, so good to learn. Now one big mistake that traders make, and it's just so stupid, is buying 20 accounts? Why are you buying 10 accounts? Why are you buying 15 accounts? Why are you buying 20 accounts when you've never got a single payout? It's— you just can't do it. Stop doing it. You're trying to picture this goal in your head that you will achieve one day, but you're just trying to rush the process because you see all of these people online hitting the goals that you want to achieve. So what you should do, buy one evaluation. If you're completely brand new to trading, start with a paper account. As soon as you learn the basics, as soon as you learn what a candle is, how to actually enter into a trade, how to make sure you're using the right risk management, get off of that paper account and buy evaluation accounts. You can buy evaluation accounts for what, $20, $30 for a $50K account? Use that, get your real risk management, learn how to trade. You'll start feeling some emotions. Get over that emotions and just see what happens. Make sure you are journaling every single trade. Now you do this, it's a recipe for success. There is no reason why— one, I guarantee that you will see results doing this, and two, if you stick to it for long enough. Now the most common thing that I see traders do, and This one, I can't— there's, you know, there's no real reason why people do it, but everybody has done it. You've probably done it. You will be doing so, so well for 2 weeks, 3 weeks. It feels like such a long period of time in trading because you're sitting there for an hour and a half, 2 hours, 3 hours a day looking at the charts. You'll be doing so, so well. You'll get your accounts up. You might take a small loss. Everything seems to be going well. And then one day you will blow absolutely everything. You will take a loss, you will start to feel that greed inside that shouldn't be there. You will take one loss, you will try and make that back, you will revenge trade, you will revenge trade. You know that you can't do it, you just have to not do it, okay? Now I understand it sounds a lot more simple than it actually is, but this is what you need to practice. And you're lucky that it's happening now because you don't want this to happen when you're having the $20 account, you have $50,000 on a live account. So this is the importance of having that one evaluation account, trading it till you've passed that account, then getting a payout with that account, then you look to compound. Okay, now FOMO, fear of missing out, it's an extremely common trading mistake. Everybody has the feeling. Now it comes under what I said earlier, you're always going to feel FOMO. I still— I don't necessarily feel FOMO, but you have that you might miss a trade, you might accidentally take profits too early. You might get stopped out of a trade and then the trade hits your take profit. You're always going to feel some type of way about when that happens. But again, the difference between the profitable and the unprofitable is how you act upon that feeling. You cannot be annoyed. You cannot want to be getting straight back into the markets because you've just seen your friend make some money and you've made no money. You can't rush the process. It's extremely important Yes, you can feel FOMO, you can think that you've missed a trade, but who cares? Make sure that you've journaled what happened. Look at your journal, have 50 trades in your journal, build that confidence, build that conviction, and then FOMO— you wouldn't even think about it anymore. You will make so much money that you will laugh when you see a trade missed and it hits your take profit. You will not care because you know the next week trading you're going to make so much more money because you have a consistent strategy that you can trade. Now, lack of discipline. Everything kind of falls under discipline. Now, with the discipline, in my opinion, what you want to do is discipline within trading comes without trading. It's the small wins. If you say that you're going to wake up at 9 AM tomorrow, you have to wake up at 9 AM tomorrow. I know it might sound silly. You're going to feel more motivation than what you felt before watching this video. It's only going to last for so long. It'll probably last until you fall asleep, and then you wake up in the morning and then you'll feel exactly how you felt this morning. You'll be like, okay, I can't be bothered, it's a Monday, I've got work now, I no longer have that euphoria after watching that video. But again, you have to be disciplined, you have to do things when you don't want to do it, and that is when you will see the results. Think about it, to become a profitable trader, you must be in that 1%, you must be in that 2% of people. And to be in that 1% and that 2% of the profitable traders, then that's what you have to do. What the 98% of people are not doing. Think about that. Just think about your friends in real life. Okay, I know it's, I know it's not the nicest topic, but if you think about your friends and your friends from your local home, they have, they have small goals. You know, it's, it's not, it's just how the, how it naturally works. Okay, it's the same with my friends. They just naturally have smaller goals than what you want to achieve. And now that's that's not your fault. But again, if you want to be in that 2% of people, you have to be thinking outside of the box. You have to be doing what— literally what 98% of people are not doing. If somebody is not going to the gym, you need to go to the gym. That— you're already putting yourself above most people. If people are saying that they want to trade and quit after 2 months, you're already putting yourself ahead of most people. So it's just getting these small, small wins doing things that literally 98% of people are not doing, and staying consistent with it and doing it over a long period of time. Now, how are you going to actually fix these things? Now, you need to have the mindset shift, okay? Now, it's not going to come easy, and motivation won't fix it all. You need to stay disciplined. Now, what a losing trader thinks is Again, it's a small thing. A losing trader will look at the markets and think, okay, today I need to end green by the end of— if you took a losing trade, for example, the losing trader is going to think, okay, now I've lost this trade, I need to make a win, I need to make my profits back, I need to make this money, I need to reach $10,000 by the end of this month. Now you might be thinking, Louis, why is setting a money goal, for example, $10,000 a month in trading a bad thing? In my opinion, you don't want to be setting these many goals at the start of your trading career because it will make you act differently to how you should be acting if you want to become profitable. You don't want to be thinking, okay, I need to make $5,000 in a month. You shouldn't be making— you shouldn't be trying to make $5,000. You should be trying to make sure you enter 5 out of 5 correct trades, and then what will follow that is the money. You'll make so much money you won't believe it as long as you stick to what you say you're going to do. Instead of saying I need to make $10K this month, no, you need to enter 10 out of 10 trades completely following your rules, never breaking your rules. That's the mindset change that you need to change to become a profitable trader. Stop chasing money goals and set more achievable goals where you're— even little things like I need to make sure every single day this week I'm filling out my journal, I need to make sure every single day this week I'm not over-risking, I'm not over-leveraging, I'm not acting upon the fear of missing out. I'm not acting upon the fear, the greed, the lack of discipline. You know, you're staying consistent and you're making sure you're following a structured plan so that you will become profitable, because you will if you follow the plan. Okay, now the key psychology lessons that you need to do to make sure that you do become profitable. Accept losses. Everybody is going to lose. There's not a single trader that hasn't lost. You're going to lose, and you need to be okay with taking a loss. Now, how, how, how do you be okay with taking a loss? A lot of this comes through confidence, okay? What you need to do is make sure that you're updating your journal. You need to make sure that you're putting in the time, because traders will tell you just take a loss and move on to the next trade. But if you don't have that feeling that you're going to win the next trade then you're going to find it a lot harder to accept a loss with trading. So you need to build up that self-confidence and that self-belief, and that will come through putting in the hours with the charts, putting in the hundreds and hundreds hours and seeing the results over a longer period of time. Because yes, one, one day you're going to lose. You might even lose in a week, you might even lose in a month. But if you know that you stick to this over a 6-month period of time you're going to be up a lot of money, then you will not care about taking a loss on a trade. You will not care about taking a loss on a week. And to be honest, you will not take a loss on a month if you're following the correct strategy and the plan, especially with my strategy. Now this comes to the next point: only trade your system. Only trade your system and do not break out of that. I don't care if you're $500 away from getting a payout. Do not randomly enter into a trade because it'll put you in bad habits over a long period of time. It takes something like 90 days to build up a good habit and 2 days to break it. I completely made that last part up, but it takes around 90 days to build up a good habit and such a short amount of time to break that habit. And if you break that habit, it's going to take you another 90 days or 120 days to get that back. So once you get in the routine, you're already in the routine right now of opening up the charts Now you need to add to that routine. Boom, every single day at 9:30 AM New York time, you open up the charts. Now what you need to do, make sure that you never ever ever over-risk and make sure that you always follow your strategy. Now you built those two things up. Now every single day you go into the markets, you open your charts, you always follow your risk, and you always trade the same strategy. Now that's going to build up, build up, build up. What's going to happen? You'll suddenly start to become a better trader over time. The profits will start to come in, and that's when you will turn profitable. You, you won't actually feel like you've changed anything. Your accounts will just start going up and money will start hitting your account just from you being disciplined and staying consistent. You need to risk properly, never revenge trade, and just focus on the consistency over a long period of time. Now what you need to remember is the market does not care about you. The market does not care about you. You need to drop your ego. And the market doesn't care about your emotion as well. If you're going into the markets feeling sad, feeling upset, feeling stressed out, the market could not care less and it will eat you alive. Okay, you have to, to become a profitable trader, it starts all within your mindset, all with who you are when you turn up to that chart every single day. So if you can focus on the things I've said in this video, make sure that you're journaling, make sure that you're turning up in the right mind frame, you're following a consistent plan that is structured to over a long period of time you will become profitable. I know that this is a different type of video on this YouTube channel, and I've actually followed a bit of notes this time on this video. So let me know if you liked this sort of style of video. Let me know in the comments below if you want more of these. I'm in Australia right now, very, very nice, and an extremely nice hotel, all thanks to trading. I hope you all get to experience what I have the past few weeks, just literally traveling the world, staying in the nicest hotels, and ultimately doing what I want when I want. So yeah, thank you guys for watching this video. Make sure you leave a comment if you made it to this end of the video, and if you did, you're already, you're already in that small percentage of people. So yeah, thanks everyone for watching. I'll see you on the next video.