📱

Get Our Mobile App

Take your business learning on the go!

Download on the App StoreGet it on Google Play

How To ACTUALLY Stop Overtrading (The Truth)

Justin Werlein 26:50

Transcription

Many of you are going to click on this video. You're going to probably watch for 30 seconds and then you're going to keep doom scrolling, watching a bunch of other trading content creators, watching a bunch of random nonsense garbage. And then you sit yourself down and you ask yourself, why is my trading not working? Why do I keep overtrading? Why do I keep blowing emails? Why do I keep not doing what I say I'm going to do?

If you actually care about success, I pray that you watch this full video because I am here and I want to help you if you give me a chance to be able to help you and you take it seriously. Okay? I've been trading for 5 years now and I used to struggle with overtrading, overleveraging. I could not sit still. When I would take a loss on the day, my entire day would be ruined. And I want to give you wisdom to help you get and reach success in your trading journey. And how can we actually overcome overtrading? In this video, that's what we're going to talk about. We're going to talk about the main problems of a trader, specifically overtrading. And we're going to talk about how to actually stop. Because most people will tell you how to stop, but I'm going to tell you actually how to stop. Whether you like the answer or not, this will be the truth as to why you overtrade and why you're not yet where you want to be.

You might be someone who just started trading and you want to use trading to quit your job. Maybe you want to drop out of school. Maybe you want a side income. Maybe you want trading to be your full-time job and you're able to make a bunch of money and be able to go travel. Whatever it is, this is getting in the way of it. So, let's talk about this. Let's sit down and let's have a conversation. Okay.

How do we beat overtrading? Well, first of all, I want to talk about what you're probably going through in your trading journey. What happens is you'll probably wake up in the morning or the afternoon, depending on where you're at and you're located. You'll sit down and you'll start to trade and you get pretty excited, right? You're looking at it as you're maybe trading on an Eval, maybe you're trading on a funded account, right? And what's going in your brain most of the time is how much money do I need to pass my account? How much money do I need to pass or get a funded account or or get a payout? And so you go into the market and you start looking for opportunity and maybe you take a trade. Maybe it wins, maybe it loses. But then you continue to look and you continue to try to see if there's other opportunity. And maybe you take another trade. And then maybe you give back your profits. And then as soon as you give back your profits on that trade, you're like, well, I was just up $1,000 on the day. I don't want to end down $1,000. Like, I want to end what I was just at. So then you keep trading. And then you take a bad trade and then you're down on the day. And then you just keep on making mistake after mistake after mistake. And then what happens is is you're not only having to deal with that, but the worst part of it is is you have to deal with now the internal battle that you have with yourself because now you're shaming yourself. You fall into guilt because you know when you came into the day you said I'm going to be patient. I'm going to be disciplined and you didn't do it and now you have to fight yourself and then you fighting yourself keeps the cycle repeating and then you feel like you're can't ever operate. You feel hopeless. You feel like you're never going to be successful. Sound about right?

Now, what's going on and how do we actually overcome this? In my trading journey, there's been a couple main things that I have realized that is some of the most important pieces of wisdom that I can give you, not just as a trader, but in life. Because what you'll find is trading is not a game of trading. It's a game of you versus you. Because trading is is one of the only jobs where you're the only operator, right? There is no one else. Every decision, every piece of success, every piece of failure that you have is on you. And you have to decide if you're going to confront those things, if you're going to humble yourself, if you are going to want to improve. Because the majority of why people don't fail or people don't succeed in trading is because they don't have the balls or want to confront their problems. That's why most people aren't anywhere in life is because they don't want to confront their problems. They don't want to have to sit there and say, you know what, I made a mistake. And not do it from the point of guilt and shame. The problem is is you'll confront the problem, but you'll hit the problem with more hurt and you'll just pounce yourself, right? So where's the middle ground? How are we able to operate professionally? How are we able to look at mistakes and problems from a third person perspective where we are not tied key word we are not tied to anything in our trading because that's how I want you to picture trading. And this is how we overcome these problems. You need to picture trading in yourself as a video game. Right? When a child sits down to play Call of Duty after school, the kid's not in the game. What happens is there's a difference between being the person in the video game getting shot at in Call of Duty versus the kid who's in the controller has the controller sitting and playing the game. Right now, you're trading like you are in the war zone. You are tied to every decision. You use every decision to feel like you're pushing towards a payout or pushing towards money. So then you can't sit still. You can't actually look at things from a clear perspective because you're tied to the outcome, not just with the money, but tied to the validation of doing something right because you've obviously proven to yourself so much you can't do anything right. So now you're playing this mental game because you're trying to look for trading and you're trying to look for the next trade to validate yourself, but then you overtrade trying to validate yourself.

Now that I've got you hooked, now that you're watching the live, now that you're watching this video and you're saying, "Wow, maybe this guy knows what my problem is, let's actually fix it." Okay, so overtrading, one of the first truths of trading that you need to be able to do and you need to understand as a whole is that you're not paid by your time. Okay? Trading is not a job like you clock in and you get paid for your time. You're paid by your decision making. So when you're paid by your decision making, you need to know that 90% of trading is doing nothing. 90% of trading is in action. Is sitting there doing nothing because if you can't sit there and do nothing, you won't be successful. But it's so contradictory to everything, right, Justin? How am I just supposed to sit there when I'm not where I want to be in my life? I'm not where I want to be in my trading. How is it possible for me to just sit there? Great question. You have to confront it. As soon as you give something power over you, like the market, right? As soon as the market has power over you and you're not able to sit there and do nothing, that's you forfeiting yourself. You saying, "I can't sit here. I'm not capable of sitting here with my own thoughts and just being still. That's a that's the problem. That's problem number one is you are not capable of being still.

So, how do we actually stop trading? Number one, we have to be okay with doing nothing. Now I want you to understand the key word nothing here. Nothing is actually something. The problem is that you think in action is a lack of progression. That's the problem is you don't want to be still and you don't want to sit there and let the market do its thing because then you're thinking about all the opportunity you're missing out on and oh my gosh, I could have just caught this trade and the market just moved 100 points and oh my gosh. But in reality, you need to understand that being okay with doing nothing is extremely important. And I'm going to tell you why. Number one, you have to understand that it's something. It's not nothing. It's choosing to do something. And what you're doing is I want you to treat it like defense. Any successful sport, any successful, if you were to take golf for example, a good golfer has to master his irons, his driver, his putting, his chipping, and he's not a good golfer if he doesn't have all of those things. A good football team is not a good football team without a good defensive line. You will not be a good trader if you can't do nothing because nothing is your defense. So you have to look at it as such and you have to give it importance. You have to honestly praise nothing. You have to be grateful for doing nothing because guess what? There's probably a hundred people, thousand people that are watching this video right now that are probably traded either today or this week and they didn't do nothing. They actually sat there and took a bunch of trades and they lost a bunch of money or they blew a bunch of accounts and I could have sat there for three days and did nothing but I didn't lose anything while someone else just lost a bunch of thing, a bunch of money, right? So you have to start treating nothing as something that is valuable. But you have to rewire your brain, right? Because trading is a very paradoxical game, right? And the reason it's paradoxical is because the less you do and the easier it feels, the more you're going to make. What happens is you come into the market striving for success. You're striving to take trades because you're thinking that today is another day where I can push towards my goal. But in your brain, pushing towards your goal only means making money. So if you're not making money, you don't think you're progressing. So you're playing tricks on yourself that causes you to cause these problems. And then you have the problems and you say, "Why am I having these problems?" You're stuck in a mental game, brother, and I'm trying to pull you out. Okay. So number one, be okay with doing nothing which is something. Okay.

Number two, what else? Why do we overtrade? What I found for me, and this is something more specific that I think many of you guys might be dealing with, is you just don't have anything planned for the day. You don't have anything else to do. You don't you're seeking validation in trading, but you're not seeking other wins in your life. And because trading is nothing more than a reflection of your identity, if you're not disciplined outside of trading, you're not going to be disciplined inside of trading. If you can't control your emotion outside of trading, you're not going to control your emotion inside of trading. So number two, this is a huge piece of advice I can give you, is look for wins in life. After you're done trading, go treat other activities like you're going to go trade and look for wins in other areas of your life. Because what will happen is is when I look back at my trading, like my first two years, I would wake up and I would sit in front of the market and when I was done trading or when there was an opportunity and I knew there was obviously no opportunity, market was choppy or maybe I had already taken a win on the day, right? I knew a thousand times over, and many of you guys do too, you'll take a win, you'll be up on the day, and you'll continue to sit there and just trade and give it back and then end up even going red because number one, you don't know when to step away, right? Knowing and number two, I believe many traders to reach success have to burn the hot stove because you can listen to me say this, but in reality, you're probably going to go have to burn the hot stove. That's kind of what I found. What I found is many traders don't lack knowledge. You don't lack knowledge. You lack the ability to learn lessons from your own experience. Your own experience is clearly telling you what's wrong. You just don't want to listen to it. You just don't want to actually listen. You say you want success, but you actually don't because your actions aren't showing it. And I'm not saying this to get on you. I'm saying this to make it clear and to wake you up. Because I care for your success or else I wouldn't be making these videos. I love making these videos because trading has completely changed my life. But I see so many people in the trading space that are lost that don't have any good guidance that are just seeking more shiny things. Right? You go on other social media creators and other traders on this app and you'll see oh day in the life let me go drive my nice car and like I will never show you all my fancy. I don't care. This is what I care about because this is what's actually going to help you. Okay? So when you wake up and when you start trading, plan for what you're going to do after. Know exactly for me I'm going to go hit the gym, right? So immediately right when I'm when when the market's starting to slow down and again having a cut off too is good, right? I only trade the first hour and a half to two hours of market open, but I'll even end it before then if the market's starting to slow down or I believe the move has already happened and I'll immediately hop off my chart, get away from my desk, go work out, and I'm going to go look for a win in another area of my life. Because if you only look for wins in trading, you take a loss and the rest of your day is entirely ruined. And then you can't be still because you're just thinking about waiting to tomorrow to try to make back the money which is setting you up to continue to overtrade. So you have to be o okay with doing nothing and being able to go look for wins in your life because when you go look for other wins in your life and you start living your life, you will start developing your character, your discipline, your patience, your intention that will be reflected in the market, right? Because you are the operating system. Your trading is not the problem. The operating system is the problem. Okay? Going to say that again. Your trading is not the problem. Your operating system is the problem. So you have to look at you in an honest and humble manner and say, "Okay, you know, Justin, I'm really falling short in this area of my life. Like I I I I I keep I and and I'm very aware of it and and I need to put this and I and I need to fix this, you know, and I'm not going to shame myself. I know what this is. Like I know what this problem is. I keep overtrading and I find that when I take, you know, more than two setups or I just sit on the market or I have the charts open, I just end up taking another trade. I'm I'm I'm going to I'm going to stop because I I'm so aware of it, right? And it it's it's learning to start being aware of the things, right? Because a lot of the times what will happen is traders will make the same mistake over and over again, but they don't like consciously take it out of their memory and their brain and like soak it in and be like, "Hey brother, every time you do this, this is what's happening. Why do you keep doing it? You're not using your lessons to your advantage." And one question I get asked is, Justin, what's the easiest and most fastest way to become profitable? And I'm going to tell you right now, you ready? You start taking your experience seriously. Every day that you come into the market, the market is trying to teach you something. And if you aren't receptive to it, whether it's, hey, I entered this too early. Hey, I put on too much size here. Hey, I I overtraded. Hey, I I shouldn't be trading, you know, New York s or whatever session, right? Whatever. You need to be aware of the lessons that are trying to be told to you.

Okay, so so far, little quick recap. How do we stop overtrading? We got to be okay with doing nothing, which is something. And you got to look for other wins in your life. Because if you're only looking for wins in your trading, you're going to keep overtrading. Okay.

Number three, one thing that I just want to add to this that I want you to keep in your mind because your mind and will play tricks on you. It will play tricks on you. And if you're not aware of this, you're going to keep falling back into the same cycle. Inaction does not mean lack of progression. I might misspell some stuff, but whatever. Inaction does not mean lack of progression. Okay? Just like going back to the defensive side, you sitting there and not taking a trade does not mean that you're not progressing. It's actually the exact opposite. It's actually you strengthening a muscle that you have not worked on in a while. You haven't been able to be still. And guess what? How are you able to be still when you're on this little stupid cellular device all day scrolling and you want dopamine and you're just consuming all this garbage? You're training yourself to do the things in which you say you don't want to do. So you have to be aware of the environment that you're putting yourself in because you are the one training yourself to make the problem. Right? You're not training yourself to be a good trader. Right? You're not training yourself to be a good trader. You're training yourself to do the thing you know you don't want to do. And this is kind of how I want you to look at it. And hopefully what I'm saying to you is resonating. And hopefully what I'm saying to you is soaking deep within you because this is actually how you make a change. So another thing I want you to focus on is when you're trading or any time that you're seeking something, you have to be able to know that the present moment is the only thing that's actually going to get you to where you want to be. So a lot of the times we'll play games on oursel, right? We have to be able to discern the difference between our thoughts and what's reality. Okay? Because a lot of the times what will happen is we will make a mistake or we will start thinking about all the things in our life, right? And we'll start creating false situations and we'll start operating from fear. Okay? Operating from fear causes overtrading. If we operate from fear, it will directly correlate into overtrading. Why do we operate from fear? Because I want to quit my job and I only got six months left, you know, of of my college and I and I and I need and I need to get a payout to prove to my parents that I can do this, right? Whatever it is, I don't care. It doesn't matter. Whatever your situation is won't get fixed if you don't realize this. So, you can try to hold on and try to carry all the weight with you and you're gonna have to deal with it, right? I don't care. I I Why would I ever choose to take on the weight of the world? Why would I ever do so? It's not mine to carry. It's not yours to carry. Stop carrying all of the weight.

And that's number four. I'm going to clean this up a little bit. Number four is stop carrying all this unnecessary weight. You put so much pressure on yourself to be successful. This next day I'm going to fix it. This next day I'm going to pass this next week. Like, bro, just wake up. Drink some coffee. Have some tea, brother. Lower your shoulders. Take a breath. Not nothing's The market's not going anywhere. There's an abundance of opportunity. That's not a four. I don't know if I spelled that either, but stop carrying unnecessary weight. That's number four.

Now, to go off of this, one thing I also want you to focus on is what what could be unnecessary weight, right? What what what could possibly be unnecessary weight in your trading? All of the past mistakes that you've made, all the money you've lost, all the past blown accounts, that's all unnecessary weight that you're carrying because every day you come into the market, you're treating trading like a mental ladder, right? Where right here, you're you might be down 20,000 in your entire trading career or down 50 blown accounts and you're just trying to work your way all the way back up, right? And that's a game we play on oursel. You're carrying unnecessary weight, brother. The past is not real. The only thing that's real is right now. And you're carrying all this weight from the past and you haven't left it behind you. So, you're wondering why you're not growing because you're carrying all of the stuff from the past with you. Let it go. Let it go. It's not yours to carry. And this also has a big concept of forgiveness. You have to forgive yourself because trading is one of those games where the the slate must be cleaned and wiped every day you come into the market. Every single time that I come into the market, I have no recollection of the trade that I took previously. Not not necessarily I don't have any recollection. It's just not in my mind. I'm not thinking about it. It's day one every single time I go into the market. And you also have to realize that success is not a destination. It's not like you wake up one day and you're just automatically profitable, right? People ask me like, "Justin, what what was it what did it feel like when you finally made money? What did it feel like when you finally became profitable?" It's not one day you magically wake up and you're profitable. What it is is it's deciding right now that you're going to step into the version of yourself who already is profitable. And what you start realizing is success is not a destination. It is a decision that you step into. Because success in trading, you know what it is. I don't really need to tell you. Like many of you guys might be like, Justin, what is success? Like you know what success is. Now for the people who are brand new to trading, I'll give you a little rundown. Someone who's patient, someone who has an edge, someone who only focuses on taking their edge, does not get persuaded by other shiny objects, someone who's disciplined, someone who can be still, someone who is already at the destination. Now, if I go into trading and I have the perspective that I'm an overtrader, I'm an overleverager because you've been doing these things, you're programming yourself and putting the label on you to continue to do the thing that you're doing. But if I come to the market, even if I am overtrading, even if I am overleveraging, I'm going to actually start trading with the perspective of I'm successful. I am a good trader. And you start telling yourself these things. I am a good trader. And it's not like in the way where you're like in the mirror and you're like, I'm a good trader. I'm a good trader. But it's no, you start acting like it. What is the successful version of you act like? Close your eyes and think and start to really think like who is the person I want to be? And what is the successful trader and version of me look like? What does that person feel like? How does that person act? What kind of decisions does that person make? What kind of activities does that person do? How does that person trade? How do they feel when they're trading? And you start thinking about that, right? The person is calm. The person is collected. The person doesn't feel rushed, doesn't feel like they're missing out on anything. And you start acting and you start being that. That's when you become profitable. That's when you see success. It's not some distant future. It's someone you step into now. It's a choice that you make. And the only way to make that choice is by doing these other things, though. You have to forgive yourself. You have to stop carrying the unnecessary weight. You have to learn to be still. You have to know that inaction is not a lack of progression. All of these things are the things that keep you from being that person. Okay?

So, I'm going to keep this very short and sweet, right? Keep this very short and sweet. Now, if you're struggling in your trading and you feel like you are lost or you can't figure out the way out or whatever the specific problem is, I'm able to give you extra help. I have a mentorship where I live trade every single morning. And I'm able to work with you directly and help you in your specific strategy. And you're able to help and and learn mine, get coaching calls with me, but more importantly, I'm able to work with you one-on-one and know and learn your situation to help you get to this point. Because the problem is is you don't lack knowledge. You don't need to buy another course. You don't need to buy another stupid trading indicator. Okay? What you lack is your ability to understand yourself and your ability to become the person in which that is successful. That's my job to help with. So that's why many of you guys have bought a trading course or whatever and nothing changes you. Oh, you might learn a cool little strategy. The strategy doesn't matter if you can't execute on it. This is what keeps people from trading success. And you probably watching this like, man, he hit everything on the head. So, if you're interested in getting extra help, if you want me to help you, I have a mentorship. We have seen amazing results. I'll put some up on the screen right now. People that have come in, made $50,000 in payouts. People that have never gotten a payout before, that have been struggling for years, have come into our community, worked with me and my team, and we have turned them into a literal beast. If you want to invest in yourself, if you want to invest into your future, I highly recommend doing so because we have an amazing community, and we have seen amazing results in it. So, hopefully this video helped you. If you did, like, subscribe, comment, all that good stuff. Let me know what other videos you guys want to see from me, and I will see you guys in the next video. Peace.