Transcription
I'm going to show you the 10 cheat codes that I've used to go from a failing trader for over 2 and 1/2 years, not just thinking about giving up on trading, but my life in general, to eventually making over 600k profit this year with a 76% win rate and a 1.85 risk reward on average. And what I've learned is that succeeding in trading is actually quite simple. But unfortunately, that does not mean it's easy. And so that's why we need some cheat codes. So let's get into it.
Cheat code number one is to become a one-trick pony. Trading is just like any other game, so treat it like one. If you're trying to climb in a video game such as League of Legends, Overwatch, the quickest way to improve is just to one trick a champ or one trick a roll. In Overwatch, it could be playing tank. In League of Legends, it could be maning in jungle. And in training, it's exactly the same. Trying to climb in League whilst constantly switching roles and champs. You're just going to make it harder than it needs to be. You want to master on roll one champ because success doesn't come from how much you know, but the depth of understanding. It's like what Bruce Lee said. You're not scared of one dude who's practiced 10,000 kicks one time. you're scared of the dude who's practiced one kick 10,000 times.
So, in trading, I only trade reversals and I'm lowkey goatated at them because trading is a different type of work. You don't get paid based off the quantity of your decisions, the quantity of your work. You get paid based off the quality of them. It doesn't matter if you take a 100 shitty unprofitable trades, you're still going to lose. But if you take 10 profitable, high quality trades, well, you're going to make money. And there's a concept in trading called the zone of losing. And 95% of traders are stuck in this zone. They're focused on five to 10 different things. SMC this, ICT, this, [ __ ] unicorn zoops or supply and demand, support and resistance. They're poured in 10 different directions. If you just put all that energy, all that focus into one thing, you would be able to break out out of that zone of losing. It requires so much effort, so much focus to get good at one thing that it limits how many things you can do. Put all your energy together into one approach. I only trade reversals in rangebound conditions and trading has never been easier. Because if you want to be consistently profitable, well, then you need to take consistent trades. And you will only be profitable when you make all your trades look the same. You probably currently have the wrong mindset that you're trying to catch moves in the market. If the market moves 50 points and you don't catch a trade, you're going to feel bad. You're trying to chase. And I used to trade like that for over two years, trying to catch trades in the market, trying to catch these little moves instead of just picking one repeatable profitable setup that I've defined by data and then only trading that. And so that's cheat code number one to become a one-trick pony. Just like in League of Legends when I wanted to climb, I one tricked Rengar jungle. If you want to master something, you have to pick one thing. The best traders I know are the ones that put the most constraints on themselves. Because if you're trying to do everything, you just end up achieving nothing.
And so now moving on to chica number two, which is to track everything. All your problems in trading can be solved just through having data. And you've probably heard this time and time again to journal your trades, and you don't want to do it. You don't really find the value out of it. No one's really told you how to do it properly, and it's tedious. It's boring, and it's hard work. But do you really expect to become profitable in trading without some hard work? Do you think you're better than anyone else? Do you think you're different and you deserve to be profitable without putting in any of the hard work? You're smarter than everyone else. Probably yes. I used to think the same thing, but then it got [ __ ] by the markets for two and a half years. If there was ever a holy grail in trading, it would be journaling your trades and tracking and collecting data, but not in the way that most people do it. Most people journal their trades to prove that they're right, to prove that they're profitable. But I do in a different way. I journal my trades to lose, to prove what is unprofitable, so I can then reverse engineer that and do the opposite. Every single trade I take is just to collect data. It doesn't matter if I win. It doesn't matter if I lose. It's always going to be a net gain. I gain a new data set to tell me what works and tell me what doesn't. So, I can do more of what works and less of what doesn't. Because what gets measured gets managed and what gets managed gets improved. The first thing you want to do if you want to lose weight is to hop on a scale and see where you're starting from. It's hard to [ __ ] improve in something if you don't know where you're beginning. It's like with a map. how you supposed to move in a certain direction or you know get to the destination if you don't know where you're starting from and it's the one way I know to actually have an edge to build confidence and to have consistent trading trading is all about answering small little questions like when do I trade what entry model should I use should I go for reversals or continuations a profitable strategy is just a culmination of answering all these little questions but you can only answer them if you have the right data this is actually how you find what works not not from some [ __ ] shitty YouTube video even some of my videos they're not going to make you profitable you actually have to put in the work and use data to validate and get experience with them.
So, here's how I use my journal. Every single time I take a trade, I track every single reason for taking that trade. It could be low time frame direction, middle, high time frame direction, what is the condition, rangebound, trending, what's the entry model? Is it a type three shift? And then I just culminate all this data and identify does it help or hurt my trading? Does it help or hurt my profitability? And then I just do more of that. If it's negative, then I just do less of that or I do the inverse. And that's how you actually improve and eventually profit from trading. Because how are you supposed to, you know, take profitable trades if you're not able to define and break down the variables that make up a profitable trade? How are you supposed to think in probabilities, which everyone tells you to do? If you don't actually know the [ __ ] probabilities of your trading approach if you don't know your win rate and your risk reward, you don't know what contributes to that, you're never going to be profitable. You need a data backed view of what a good trade actually looks like. For an example, DXY correlation increases my win rate by 17%. A type three entry model increases my win rate by 16%. I know the data, so it's easy to be consistently profitable. And it also puts you into a data collection mindset. You automatically focus on learning over making money in trading, which we'll cover a bit later, is the most important thing as well. And it would also be unreasonable for you to not be profitable if you journalled 500 trades. It's almost impossible. If you journaled 500 trades and unprofitable in that time, amazing. If you just did the opposite, you know, you reverse engineered that. See, you saw what confluences, what reasons led you to losing more often on average and you did the opposite of that, you would be profitable. That would be a profitable strategy. The biggest mistake that I see traders make is they go on a 10 trade losing streak and then they stop journaling their trades or they just don't journal those trades. It is painful. It sucks. But that is one of the, you know, most underrated opportunities in trading. You have all this data telling you something doesn't work. Why wouldn't you reverse engineer that and do the opposite to have an extremely profitable strategy? I did this. You can only change something if you're aware of it. And the journaling provides that awareness. It's like going to the gym and not tracking your workouts. How are you supposed to progressively overload and get stronger if you don't know what weight you're pressing each week? So, you can actually increase that. All of your psychological problems will pretty much just be fixed by having good data. You don't lack discipline. You lack clarity over what works. For me, it's very easy to not take a bad trade because I've clearly defined that. Taking a bad trade for me is like, you know, avoiding putting my hand on a hot. It's pretty [ __ ] clear it's going to hurt my hand, so I'm not going to do it. Most of you have blindfolds on. You're not sure what a good trade is, what a bad trade is. You don't have any data. You haven't put in any work and you're just guessing. And so, no [ __ ] you're going to get burnt. You have to define what bad means. Not after you trade the trade and say, "Oh, that was a bad that was a bad trade." Looking back at that with hindsight. No, you have to predetermine. And I'll show you exactly how I define my profit trade later on. The more data you collect, the more you review it, the more detail you go into this, the more clarity you'll have over what works and what doesn't. the more you'll be able to break it down and clearly see exactly what a good decision is and what a bad decision. And you can only make good decisions when you have good data. For example, let's say you're in a competition and you're being scored, you know, how well you can pick green M&M's from a big bag of M&M's. Pretty weird competition. Don't ask me why, but but this does relate to trading. How much discipline is required to pick out all the green M&M's? Well, a little bit. And you know, I like M&M's. They do taste good, but not that much because it's pretty [ __ ] clear what the color green is, unless you're color blind, which sucks. unlucky, but it's pretty clear how to win and how to pick out the green colors. In trading, we want to do that the same thing. We want to make it as clear as possible. What is a good decision? How do we pick it out in the market? And so that means predefining, having a visual playbook exactly what it looks like, when it plays out, how it plays out, how long it takes, and the probabilities around it. Because if you haven't predetermined exactly what a profit trade looks like, well, you're trying to pick out those green M&M's with a [ __ ] blindfold on or you just color, which sucks again. And trading whilst guessing is just a less fun version of gambling. Why wouldn't you just go to the casino?
So, for me, my three-step process, this is what I define as a profitable trade. And I just go, you know, as deep as possible on this, is just to identify a middle time frame range, wait for price to overextend into a high or low of that range. and then take an entry on a type three shift around 30 minutes into the hour. Stop loss below the higher or low or beyond the higher low and take profit targeting 50% of that previous move that was overextending into the higher low of that range and then with some added correlation um to help with timing and direction. And so that's a pretty simple three-step process. It's just like a range reversal. Uh and then these are all the variations that a range reversal can play out in. So we have a normal range here. We have a trending range here and a bit of a fractal shift. um you know different type of range here and I can play you know the tops uh and the bottoms of all these ranges because I've just practiced this so many times and so every single one of my trades should look like a variation of this and I'm just trying to do this one thing every single day. I don't trade continuations. I just trade reversals, lower time frame reversals in middle time frame structure and it's so simple, so easy, so repeatable and that's how I get consistent profits through having to to make it easy to take consistent trades. And I've visualized this. I've tried to break it down in as much detail and isolate the variables that lead towards that profitable trade. And this is backed by data. I found that for me reversals around 30 minutes into the hourly candle give me the highest win rate possible. And so that's why I know exactly how to time my entries. Going back to what we previously talked about, I know DXY correlation improves my win rate by 17%. A type three shift increases my win rate by 16%. Taking a trade when it's overextended into the higher low increases my win rate again. taking a reversal in a range as well. This is my run, right? Again, I'm stacking all these things, making it as simple as possible. I've gone into so much depth on one simple repeatable setup that I know the nuances in every single variation that they can play out in. And I've been extremely clear on my definitions. You need to define exactly what you mean when you're saying a range, when you're saying direction, when you're saying, you know, when should you be taking time? When you say you enter too early and you get stopped out, why did you enter too early? How could you have done anything different? You need to be clear on your definitions.
And so, cheat code number two is to track everything. So you can actually define what is a profitable trade because if you want to be consistently profitable trader, well then you need to consistently take those profitable trades. If you're not using data, you're just guessing you're gambling. Better off going to a casino. It's more fun that way. And you can drink.
And then moving on to cheat code number three. There's actually a setting to change difficulty in trading. It's like any other game. And most people are stuck in, you know, max difficulty. It's a lot more fun when you play on easy. And so there are two different ways that you can play on easy mode. First off is how you choose your strategy. And this is one of the biggest mistake traders make and it's counterintuitive. Most people focus on trying to create the most optimal and perfect strategy and I used to think the same thing and that's why I failed. They have 10 different confluencers that they've learned from five different YouTubers with 10 different steps and they [ __ ] fail. I used to do the same thing. And they know if they could just execute, oh, if I could just execute my strategy, I would be profitable. But they never do. You never get towards that point where you just execute it. And you'll gaslight yourself in just saying, "Oh, I just need to be more disciplined." But you don't lack discipline. You lack clarity. You lack a simple repeatable edge. It's too complicated. Trying to do everything, you're going to achieve nothing. And each day, you know, you go to execute on your trading session and you always fall short. You always look at, oh, I could have caught this trade. I could have caught that trade because you're trading everything. Yeah, you could have caught that. You know, confirmation bias, hindsight. Your brain is constantly gaslighting you and being an [ __ ] You shouldn't trust your brain.
So, if you know your strategy works in the most optimal, perfect conditions, but you can't actually execute it, it doesn't matter. It doesn't matter how good or perfect the strategy is. You need to simplify it, make it easy, make it repeatable. An okay or average strategy will perform so much better when when it's executed well verse a perfect strategy that's only executed like, you know, half half the time or 30% of the time. Being consistently good is so much better than being a occasionally great or occasionally perfect. It's like in health. The best diet, the best gym program doesn't matter if you don't, you know, stick to it. My goal in trading isn't to have the most optimal or perfect strategy. is to make it as easy, simple, and clear as possible. I will make more money. I'll improve quicker through improving my execution, making it easier to execute than then to then by making the strategy better. And I got so much more profitable when I made it clear, simple, and easy to repeat. I just did one thing. I did it really well again and again and again. And then just for another league example is that it's easy to climb in League. You know, playing Annie versus Azir. If you want to climb quicker, maybe play Garen or some [ __ ] easy champ. Do the easy thing. trading is already relatively hard. So why are you going to make it harder on yourself?
And so now that we've covered strategy, we're going to move on to conditions. And so, you know, first off, you just want to trade when conditions are easy. And so, first, we want to define what easy is or depends on the type of strategy you're trading. If you're trading more continuations, more directional sort of setups, well, then trending conditions going to work best for you. Uh, I trade reversals. So, obviously, rangebound mean reversion conditions are going to, you know, prove the best. And so, I only want to trade when it feels easy to find a setup. If it feels too hard, if it feels like I'm, you know, forcing something, you should not be trading. There's something called market bio feedback. How you react to market conditions. If you're frustrated, if you look at, you know, how gold's moving and you get annoyed, that's a good signal to not be trading. The emotions you feel in reaction to, you know, the information that the market is giving you is another information source that you can use. Emotions aren't a bad thing if you use them, you know, as another information source. You know, if you just took all the trades that you know felt easy, effortless, you would be profitable because it's unrealistic to expect that, you know, every single day is going to have a good setup. It's going to be clear, it's going to be simple because the less you trade, the more money you will make. Going back to quality over quantity of decisions, which then moves us on to cheat code number four, which is adapting to the meta.
Now, kind of first off, you need to know which conditions you do well in, and you can only know that going back through to data. You need data to know exactly what conditions work best and what don't. And the thing is, the meta is always changing. The market is always changing. New patch notes come out. And you have to be able to adapt to that. In trading, if gold is at all time highs, it's trending. I should not be looking for reversals. I should be going to play Clash Royale or League or go outside and touch some grass. My reversal strategy gets nerfed by that meta. It's like try to play an assassin in League in a tank meta. It's not going to work. The one thing that is consistent about the market conditions is that they're always changing. And so you have to always be adaptable to that. Don't be overly rigid. Have structure, but have flexibility within that plan. This is why I talked about the different variations of my range reversal setups. Think as every single day, every single every single day you go into the market, there's going to be a different condition. It's going to be changing. And that's why it's fun. It's a new challenge every single day. But you have to be able to adapt. If the conditions are massively trending, massively directional goals at all time highs or just, you know, massively high volume pushing in a certain direction. It's like picking Rengar into Poppy, I'm just going to get absolutely counted and [ __ ] Or it's like you're playing rugby and you're versing a team of, you know, massive [ __ ] islanders and you're trying to run it down the middle. You're just going to get dumped on your ass. It's better swinging out wide and running around those fat [ __ ]
So, it's extremely important to know your strengths, know your weaknesses so you can adapt to market conditions. You know when the matter doesn't favor you, so you should back off. you know when it does favor you. So it should go hard.
And so then we go on to cheat code number five which is the most important tool you have in trading is your focus. What you give your attention to. And this is probably the hardest skills for most traders to learn. This is where most people make mistakes, [ __ ] up and lose. The best things in life, money, happiness, women are best pursued indirectly. For an example, if you're going to chase around some woman, she's going to run away from you. She's going to pepper spray you. She's going to call the police. But if you become a gigachad, you know, 67 alpha male, you have six figures in the bank, you have six entries down below, it's probably going to be a bit easier to attract that. So in trading, we want to be that gigachad. We don't want to chase winning moves. We want to be the type of trader who just attracts that. We only want to focus on things we can control. A lot of people tell you this, but how do you actually [ __ ] do that? Cuz it's kind of hard. So I So I'll go through exactly how I've done that. Whenever you're thinking about trading, you have to be extremely mindful. You have to be paranoid about your thoughts almost. you will subconsciously you'll be drawn to thinking about the outcome. And every time you think about a positive outcome such as trying to make money or being up on the count, you visualize yourself winning a trade before even going to into the trading session. You're setting yourself up for failure and you're guaranteeing trading to be harder than it needs to be. And so trading is always harder when you focus on the outcome because instead of focusing on one thing, which is taking a good trade, focusing on the process, you're now focused on two things. You're trying to get the outcome whilst also focusing on the process. You're splitting your focus. you're only using 50% of your brain power and trust me you probably don't have that much brain power left from scrolling Instagram for [ __ ] 5 hours or at least I don't. So the most important thing for you to do to get back your brain power to actually be able to execute trades properly is to put all 100% of your focus on the process. You've probably experienced this. You've been profitful for, you know, a couple weeks, a couple months trading on a demo account, but as soon as the money is real, you just act [ __ ] or trading just seems harder. It feels harder to find a setup or you just make mistakes. It just feels like market conditions have changed. It's because you've now split your focus. You're working with 50% brain power. You're kind of down syndrome at the moment. You probably don't have that much IQ points to work with. So, why are you only using 50% of them? But focusing on fantasizing about how much money you make or trying to win a trade. You're subconsciously putting your focus onto the positive, which feels, you know, you should be thinking about the positive. I'm going to make so much money. I'm I'm optimistic. But it's actually, you know, setting yourself up for that failure. It's not a good thing to do. And you might think, okay, I just need to focus on the process. But no, that also doesn't work. You need to counteract your positive thinking with negative thinking. Just like how you visualize yourself making money, you know, I'm going into the day, I'm up 5% on my funded account. Oh, if I just hit a banger 1 to three hour trade, I'm finally going to be able to get payouts. I worked so hard for this. And you set that fantasy. And so when you, you know, evidently lose that trade or you force a bad setup, you're not just losing that 1% profit. You're now losing that fantasy that you visualize that you've kind of almost set that expectation to meet. And so instead of feeling one times the pain through losing 100 bucks on an account, you now lost that fantasy. So you're doubling up on that pain which is making it more likely for you to revenge trade and tilt. And so to counteract this, we want to do negative visualization. You want to visualize yourself. You want to visualize yourself following the process to the tea, doing everything right in as much detail but still losing. And then practice being okay with that. You visualize that. And so this is subconsciously lowering your expectations. And the easiest way to have high resilience is to have low expectations. F1 drivers visualize racing around the track before they even do it. They have they have their car engines playing through their ears visually visualizing themselves going around the track because trading is like any other performance-based sport or game. Visualize prior to doing it and you'll get the results you want. You'll be able to eliminate around half your mistakes just by switching your focus or having more control over your focus. And when you switch from this to this, you're going to be h havinging the difficulty, making it so much easier. Because when you're trying to trade whilst focusing on the outcome, it's kind of like I'm an Olympic archer. I'm trying to hit the target. I'm trying to hit the bull's eye so I can, you know, get the gold medal. But when I'm going to try to, you know, hit the target, have my eye on the [ __ ] gold medal. I'm not actually looking at the target. I'm looking at the gold medal. Obviously, you're going to miss or like in golf when you're trying to, you know, get to the green and you don't even have your eyes on the balls. You're looking at the green. Keep your eye on the ball, [ __ ] The more you focus on the outcome, you're more likely to force things. The best League players just focusing on CSing and taking advantage when the other person [ __ ] up. People that end up trying trying to force kills in League will end up getting killed. Just focus on what you can control. And then this is more of a macro rule. All of your focus in any aspect of any skill that you're trying to, you know, get anything from, such as dating, money, happiness, it should always be going into the learning of that skill, not in the the outcome, the winning or the external accomplishments of that. The most important things in life, the happiness you want, the s the stability or the freedom you're after will always come from internal. Your skills, your mindset, your abilities. Money can be lost. Your trading accounts can be blown, but no one's going to take away your trading skill. Unless you get, you know, smacked in the head with a rock, but probably have big issues then. If you just keep getting better 1% every single day, it will be inevitable. You can guarantee over the next 5 years, you will be profitable. But the thing is, it takes [ __ ] longer. But the quickest way to learn something is to take the long road. Is to avoid all shortcuts.
And this ties well into cheat code number six. Because managing your focus, you know, being concentrated is a bit painful. It's uncomfortable. Unfortunately, life is pain. It [ __ ] sucks, but you can't avoid it. And so, you get to choose either the pain of regret or patience. And the thing is, all of your motivations in life and in trading, it's all derived from discomfort from pain. The easiest way to improve and to get better is to put the pain behind you and to make it so it points you in the right direction. Until the pain of breaking your plan is higher than the pain of losing, you're not going to change. Until the pain of being fat is is more painful than going to the gym, you're not going to lose weight. Most traders are unprofitable simply because they try to avoid pain. You probably know if you just did the work you're avoiding such as jouring your trades, doing the things that would make it unreasonable for you not to be profitable, you would already have the success you want. The magic you are looking for in life, the success you are looking for in life is on the other side of that work you are avoiding and you know it. But then how do we actually change? Well, managing pain in life is a skill. It can be learned and improved at. There's a really great book called the dopamine nation. I would suggest you read that. But there's a concept talked in this book about the about the pleasure and pain balance. The more pleasure you feel now, the more pain you'll feel later on. And so if I scroll, you know, Tik Tok or Goon first thing in the morning, I know later on in the day I'm going to feel like [ __ ] But if I do something, you know, painful in the morning, if I have a, you know, if I have a cold shower, I do some exercise. I'm going to feel better later in the day. And the thing is the more you pursue pleasure, the more you avoid pain, you know, the more highly pleasurable things you do such as, you know, gooning or Tik Tok doom scrolling, uh, the more you, you know, build up a tolerance to that pleasure. You need more to get the same sort of feeling out of that action. And that kind of sucks. And the [ __ ] up thing is the amount of pleasure you're feeling decreases, but the amount of pain you feel after is still increasing. So you're stuck in this negative loop of not getting any pleasure whilst feeling lots of pain. But you can actually do the opposite and flip that. The more you try to seek out pain through doing something uncomfortable such as meditation, cold showers, exercising, doing things you really don't want to do, the more of a tolerance you build towards that pain, and the more pleasure you will feel. So you'll start to feel less pain and more pleasure in general through seeking that pain. So how you act in trading is very connected to how you act in other parts of your life. Going to the gym, doing things you don't want to do, talking to a stranger such as, you know, something like that that's painful, uncomfortable. These are all things that can improve your trading because if you want to master trading, you kind of have to master yourself first because one of the biggest cheat codes in trading is having good pain management, being able to seek out pain and just sit with it. You're not trying to avoid it. You look at as a good thing and you can learn to associate pain like the pain in the gym after a heavy leg session where I max out squats and I, you know, [ __ ] destroy my legs. The next day I try to, you know, go take a [ __ ] on the toilet and I can't get back up or I can't walk down the stairs because my legs, you know, there's just so much pain there. I can't feel my legs. It hurts, but it kind of feels good. Not in some kinky masochistic way, but you associate that pain from the gym, that muscle soreness with growth. Every time I lose a trade, it feels painful. I try to associate that pain with growth. What can I learn from this? How can I be better? You know, nothing is ever bad. It's only bad if you don't learn and improve from it. And so, you know, having a couple of losses, having a bad week, that is painful. But I associate that pain with growth. I know because of that, I will be better and stronger next week. If you want to have a really sick ass katana, you need to put it in the fire a bunch, smack it a bunch of times with a hammer. You know, it needs to go through some rough and tumble. And your temperament needs to be tempered type [ __ ]
And so, that kind of leads us on to then cheat code number seven. The easiest way to be smart is to not be stupid. The easiest way to win is to invert, to just not lose. So instead of coming up with a, you know, strategy, a plan to succeed, it's actually probably easier to define all the ways that you could [ __ ] up, fail, and lose and just avoid that. One of the biggest mistakes I made early on in my trading career was that I was too focused on trading. I should have spent more time improving my thinking, my reasoning, and my decision-making skills. Your ability to make decisions, to think, to reason matters way more. It will not just improve your trading, but other aspects of your life. And my goat Charlie Munger, RP, rest in peace. He kind of made the inversion principle mainstream. And so how do we actually use this inversion principle in trading? If you want to succeed, we just need to avoid failing. The easy thing is in trading that there are only two ways to fail. You either lose too big and this can just be easily fixed through simple risk management such as, you know, 1% per trade or using a stop loss you two three trades per day because, you know, that's pretty hard to then lose too big and blow your account. Then the other way to avoid failing is just to avoid losing too often. If you avoid losing too big and too often, well, then you're going to make money. And so, how do you avoid losing too often? Well, first, all this goes back to tracking. You need a clearly defined edge. You want to make more money than you lose on average. You want to win more often than you lose. Some combination of the two that that leads you to make more money over time. So, instead of asking what actions lead to success, ask what actions lead to failure and just avoid all those things. It's a lot easier for me to live a happy life through avoiding all the things that make me miserable. And so, it's a lot easier to just not be stupid than to be smart. It's a lot easier to avoid bad trades than to take good ones. And you kind of know if you just avoided all the bad trades you were taking, you would probably be profitable if you could just stop doing those things. But you do need clarity over how you define what bad means, what good means, which you'll find in your data.
And so then this moves us onto cheat code number eight, which is learning how to learn. Most people fail to learn to be profitable in trading because they haven't learned how to learn. They know how to memorize, but they don't know how to learn. Because learning only occurs when there is a change in your behavior. But most people are repeating the same things every single day, but expecting a different outcome. Most people's behavior never changes. And this is the thing that kept me stuck for over two and a half years. I didn't know how to learn. I thought watching more YouTube videos would make me profitable. Ask yourself, if I wanted to become the best bike rider, the best golfer, or three-point hooper, what would I do? Well, I would do a lot of that skill. I'd practice it a lot. I would reflect. How can I improve? How can I what can I change to be better? I'd fail. I would [ __ ] up. I'd fall off my bike. I would miss I'd miss shots in basketball. I would hit it into the woods. And I'd reflect on that. I'd learn through that through that experience. You need to stop [ __ ] watching YouTube videos like this one. This is the last one you should watch and just and just execute 200 trades. Journal every single one of those trades. Look at what you know look at the similarities that lead to wins, the similarities that lead to losses. Do more of what works. Reverse engineer what doesn't work. You know what leads to losses. Then you have a profitable strategy. You will be profitable. You need to go through experience. The learning is in the doing. You won't learn to ride a bike through watching 100 videos on how to ride a bike. I won't I won't learn to swing like Tiger Woods through watching him swing a thousand times. I'll learn through swinging a thousand times. You need reps, not research. It doesn't matter how much you know. It matters what you do. I get questions all the time in my community. Should I trade it this time or that time? Does this one work on that pair? Constantly consuming information, asking questions. The easiest way to find out if something works is just to [ __ ] try it. And to collect data and see if it does. If it doesn't work, fine, great. You've learned. You've gained something. Overloading yourself on all this theory, the only thing it does is lead you to being overwhelmed and confused. I failed for over 2 years because I was stuck in theory mode. You climb in League of Legends not by watching a bunch of Tyler one streams, but by playing the game. Develop your intuition through doing and not watching. Has to be active, not passive. You set a goal. You try to act towards the goal. And then you have inevitable problems arise. You diagnose why is this happening? And then you design a way to fix those solutions such as I'm losing a lot 20 minutes into the hour. Okay, I'm trading continuations all at this time and they're all losing. Okay, I'll only trade reversals at the time. I design a solution to the problem I have and I get better for that. And it's a constant loop of fixing these problems. You have a problem arise, you step over it. Problem arise, step over it. Every single mistake, [ __ ] issue, obstacle you have, it's an opportunity. These aren't bugs. These are features in the game. If you're trying to improve in trading, to learn to be a profitable trader, it's something new that you're doing. You're going to suck at it. You're going to fail. It's part of the process. Stop trying to avoid this. Most people can become profitable, but the, you know, but they're wasting their time waiting for an easier option that doesn't exist. You fail, you learn, you iterate, and you improve. But if nothing changes in your behavior, you haven't learned anything. So, you need to be tracking your inputs through the journal. It's like in Dark Souls. You're going to die a lot. You're going to fail. You're going to have a lot of losing trades. But every single time you die, you're going to learn. Not every pro in League of Legends has a 100% game win rate. You're going to lose games. Sometimes it's out of your control. It's just probabilities. But sometimes you could have learned how to improve yourself and focus on what you can improve. And if you wanted to learn as quickly as possible, this is actually probably one of the most underrated things you could possibly do to learn any skill. This is the one thing that has massively changed my trading and made me more profitable than ever before. It's the cheat code, the holy grail to becoming profitable quickly, and it's to teach other people. If you want to learn something, you should teach it to someone else. There's a quote I like. If you want to know something, you watch or read about it. If you want to understand something, you write about it. If you want to master something, you teach about it. Because every time I explain a concept for someone else, one of my students, I explain it even clearer to myself. One, some of my biggest realizations around my trading strategy, my approach have come from one-on-one calls I've had with people and they've asked me really [ __ ] good questions like, why did I do that? And I actually, you know, I struggled to come up with a reason why I did that. Half of the time in trading, we don't actually know why we're making these decisions. There's a massive gold mine of digging up why we do certain things. You know, why did I take that trade? getting clarity over, you know, what my intuition actually is. And intuition is a feeling. It's a reaction to uh information. It happens for a reason. And so teaching someone else, trying to convey why you trade, why you make certain decisions to someone who has less of an understanding in that topic is one of the most underrated things you can be doing. So please make a YouTube video, write a book. No one has to [ __ ] read it. But the act of trying to convey information in a simpler manner will benefit you more than anything else you can do. more than watching this video, reading a book, watching someone [ __ ] live trade. Group discussion is pretty good. Practicing practicing taking trades, journaling is pretty good. These are the the biggest things you can do to speed up your learning curve and to become profitable quicker.
And then moving on to cheat code number nine, which is system-based thinking. If you want consistent results, if you want consistent profits, well, you need to have a system because trading is like any other business. And the best businesses run on systems. They have standards of procedures, SOPs. Because if you want a repeatable outcome, you need a repeatable process that you've documented, that you have clarity over. This is by far the easiest way to get the outcome you want. If you want more reading on this, read Atomic Habits, Thinking in Systems, and Systemmology. These are really good books because the easiest way to get an outcome you want is to define it into a consistent action to take. If your goal is to get a 100K funded, they want to, you know, be a 100K funded trader. They want to make money consistently from trading. They want to be a consistently profitable trader. or when I have this big funded account, when I'm 100K funded, when I have a million dollars, then I'll be, you know, I I'll act seriously. I'll be profitable. Then I'll be a consistent profit trader. Then I'll act with discipline. But they never get to that point. They never take it seriously. They never do what they know they need to do. They never act like a profitable trader. But if you flip it on its head, who must I be? What must I do to make it almost unreasonable to not have what I want? How can I be the person that already has the things I want? If I want to have a 100k funded account, if I want to pass that, make money consistently from that account, well, I probably need to pass that terms, pass 8% or 5% while sticking to that risk management. Well, it's a lot easier if I am a consistently profitful trader. I'm consistently making more money than I lose. Well, how do I then be a consistently profitable trader? Well, I need to then consistently take profit trades. Well, I can only do something consistently if I've defined what it actually means. I can only be consistently good at something if I define what good means. So, you need to define a profitable trade. And this can only be done again through data. And then you can only execute it if it's simple and repeatable. You're going to be doing it a lot. If there's 10 steps you need to complete, there's 10 points of failure. Make it as simple and easy to repeat as possible. You're not trying to have the best strategy. You're trying to have the most easy and repeatable strategy. And going back to the inversion mental model, I found so much success in trying to find my worst setups through data. Not trying to find my best setups, but my worst, trying to lose as often as possible, not trying to win. So then I could reverse engineer and do the opposite because I find it easier to find bad trades than to find good ones. The first two and a half years of my trading, I was mainly focused on continuations. And I found that through my data, I had the lowest win rate around the later half of the hour. You know, past the first 10 to 15 minutes, my win rate decreased quite a lot. And and so this might seem like a problem, an obstacle to overcome, but it was an amazing opportunity to do the opposite. Instead of taking continuations, I can take reversals. And look reversals 20 to 30 minutes into the hour. You know, a massive boost in my win range. So, you know, I should just focus on trading reversals at this time. Then through failing, through losing, it led to my biggest opportunity in my trading, which is to specifically be able to time my reversal entries. I couldn't have gotten this without failing and losing and finding all my bad setups. And so, hopefully this, you know, it kind of hammers the point through. You need to have data. You need to know exactly what defines a profitable trade so you can consistently take that because if you want to have something, you need to be the person that already has that thing. Set your goal, whether it be making a certain amount or 100k funded and then forget about it. Think about what traits you need, you know, what type of person you need to be to have that thing and what processes, what daily actions do you need to take every single day to get there. Make it unreasonable to not get what you want. Be the person who already has what you want.
And then for the final cheat code, cheat code number 10 is that trading is an infinite game. There is no winning. No one wins in business. No one wins in trading. The goal of business is to stay in business. There's no finish line. So the goal of trading is to keep on trading. And so just by understanding this, you avoid lots of mistakes such as overrisking, going for, you know, a big swing on your account and blowing up, thinking short-term minded. There's it's not a sprint. It's a marathon. You're just trying to survive. And this will lead you to that long-term thinking, focusing on consistent compounding and improvement over time. There will never be a time in trading where you can just coast, do nothing, enjoy it, sit back and relax. It will always be a bit stressful. You will have good periods, you will have bad periods. I still have bad periods. And I learn, I get better from them. I have, you know, periods of pain, but that pain is then associated with that growth. And so, the market's always changing. You know, that's the one thing that never changes is that it's always changing. And there are people who have been profitable for 20 years and then unprofitable, you know, after that. The one thing you need to get better at is just adapting, playing the infinite game, and enjoying it because it's never going to get boring. I love trading because it never gets boring. It's a new challenge every single day. Constantly challenges me to be a better person. And that's why I'll never quit playing. So, hopefully you've enjoyed this video. You found some value out of that. and take action because nothing changes.