If you're not making money trading, watch this
By Carmine Rosato
Summary
Topics Covered
- Endure Losses to Build Foundations
- No Missed Opportunities Without Plan
- Master Not Trading Over Trading
- Be Imperfectly Perfect via Repeatability
- Losses Are Tuition for Future Wins
Full Transcript
If your trading has you questioning whether you should continue, if you're struggling, if you're unprofitable, if you're losing money, if you feel like quitting, then this video is for you.
Trading is a big you versus you game.
It's an internal battle with the thoughts that go on in our head. So, for
us to start seeing any success, we have to conquer the inner dialogue that is constantly talking in our own minds. And
in this video, I'm going to give you all a few different quotes that I came up with. I'm going to break down each
with. I'm going to break down each quote. That way, if you implement the
quote. That way, if you implement the advice I'm going to provide, I'm very confident you're going to see a major difference in your trading. The first
quote is you have to go through it to get through it. Losses, draw down, losing streaks, frustration, disappointment, taking bad trades, feeling like you want to quit. This is
all part of the process. You have to go through it to get through it. You're not
a bad trader if you're struggling right now. Every trader when they first
now. Every trader when they first started out has gone through a problem that made them feel like quitting. The
best traders have to go through it in order to get through it. This period of frustration disappointment anxiety draw down, losses, feeling like you want
to quit is more concerning if you don't go through that and you skip that stage because these stages will provide the greatest foundation and the greatest lessons that are just going to amplify
your trading results. It doesn't mean you're a bad trader. We all have this phase. But the best traders go through
phase. But the best traders go through it and when they get through it, they see a complete difference in their trading. And this is so crucial for
trading. And this is so crucial for anybody that is not seeing any light through the tunnel right now. It's
coming. Focus on the process and know you have to go through this in order to get through it. The next quote is that there are no missed opportunities if we
did not have a plan to trade it. Trading
is not chasing every move. Trading is
not trading the market moving up or down for the sake of it being open. The
market moving in a direction is not a valid reason to put a trade on. What
happens is, and this is human nature, the market's open, numbers are flashing, colors green, red are on our screens, and we instantly think we need to act because we're seeing a lot of movement
in terms of the colors on our charts or the numbers of our P&L going up and down. When we stop chasing and we let
down. When we stop chasing and we let the market come to us, this is when we're going to see the market a lot clearer. Chasing every move in the
clearer. Chasing every move in the market is just going to create stress.
It's going to create opportunities that we should not be taking. And I look at the market as my job is to not catch every single move. If it's open, my job
is not to trade it. My job is to look for my opportunities. And when I see an opportunity, that's when I act. So if
the market moves without me and I did not have a plan to trade it, that means I didn't see an opportunity. And when we compare ourselves to others, we see other people making money, we look in
other chat rooms, we see it on social media, then we get this comparison and we start questioning how come he saw that opportunity but I didn't.
Everybody's going to define opportunities different. If we have an
opportunities different. If we have an opportunity, we trade it. But I never look at me missing a move if I did not have a plan for it. Stop chasing and let
the market come to you. Focus on your own process and your own system. And
this is going to bring me into my next point, which knowing when not to trade, I think, is more important than knowing when to trade. Because if we know when not to trade, our setups that we should
be taking are going to stand out.
They're going to be an outlier. They're
going to be more visible. They're going
to be more obvious in front of our faces. So, knowing when not to trade, in
faces. So, knowing when not to trade, in my opinion, if you can clean up your trading, and I say I tell members in the investor trade community this all the time, is everybody in there has all the
tools, they have all the knowledge, they have all the lessons to be successful.
They have all the playbooks, they have my rules set, they have every type of information needed to have success. But
knowing when not to trade is what will make the difference. You can have all the knowledge in the markets. You could
have all the knowledge about the best systems, the best playbooks, but if you're taking these irrelevant setups off of forced trades by you chasing the market, knowing when not to trade is way
more important than knowing when to trade. Trying to find the holy grail or
trade. Trying to find the holy grail or a new trading strategy is not going to fix any execution issues. Execution
comes from consistently repeating the same trades over and over again, week by week, month by month. And that's when trading gets very boring. It's me
sitting in front of my computers, right?
The market may be moving. Even the day I'm recording this video, the market absolutely tanked. And I did not
absolutely tanked. And I did not participate on that market moving down because I didn't see any setups and I didn't have any playbooks and I didn't find opportunity there. But instead, I waited. It was very boring seeing the
waited. It was very boring seeing the market move down and seeing other traders make money. But again, never compare. Never look at other traders.
compare. Never look at other traders.
Focus on your own process. And I waited and waited and waited and I took a very late afternoon long setup and catching the mer the market to the reversal to the upside as that was part of my
system. My system didn't call for the
system. My system didn't call for the market selling off but my system called for the market bouncing. And yes, I may have missed a downside move that was easy money classified by a lot of
traders. But when my setup appeared, I
traders. But when my setup appeared, I took it without hesitating because I didn't chase and I knew this was my opportunity based off my edge that's going to give me my positive expectancy
over the long run. This discipline is crucial. You need to instill this
crucial. You need to instill this consciously that you do not need to trade every single move. You need to take the trades that are based off your system. Anything else that is not part
system. Anything else that is not part of your system is a trade that you should not be taking. Knowing when not to trade is more important than knowing when to trade. Now, as a trader, we
don't need to be perfect. Our job as traders is to be imperfectly perfect.
We're not going to catch every single move from the bottom to the high. We're
not going to get the best price possible and sell at the highest price possible.
We're going to adjust our plan on the fly, and that that might not be the right decision. Or maybe we're going to
right decision. Or maybe we're going to sell early to play a little bit more of a defensive mode, and then the market does exactly what we want it to do. What
we have control over is following our plan and managing our risk. And being a perfect trader means just that. Follow
our plan and manage our risk while repeating our system. When we try to be a perfect trader, meaning we try to catch every move, we try to catch from the low to the high. We recognize a
mistake and that eats at us and it kills us and it affects our future trades.
Everything in the market comes down to repeatability. Repeatability brings
repeatability. Repeatability brings consistency. Consistency is going to
consistency. Consistency is going to build profitability. So everything comes
build profitability. So everything comes down to repeating things. What are
things that we can repeat? We can repeat following our plan and managing our risk. And if we do this, we are
risk. And if we do this, we are classified as a perfect trader. And that
is what we should strive for in being perfect. Being perfect is not defined by
perfect. Being perfect is not defined by catching every market's move when it's moving up or down and trading every single day. Now, despite us being
single day. Now, despite us being perfect by following our plan and managing our risk, we're still going to have losses along the way. Losses are
just completely inevitable. Nobody could
avoid them. In fact, I lose more than I win. Yet, I still come out green. Now, I
win. Yet, I still come out green. Now, I
look at the market as a loss isn't a failure if we learn something from that.
Losses will be the greatest wins. It may
not be a monetary win losing money, but it'll be a greatest win because losses provide feedback. If it wasn't for my
provide feedback. If it wasn't for my losses, I wouldn't know what not to do.
If it wasn't for me blowing up accounts when I first started, if it wasn't for me losing when market conditions change, I wouldn't know how to adjust and adapt
properly. Losses, you can consider
properly. Losses, you can consider tuition, but losses also provide feedback that will provide wins in the future if we can use them as an
information piece to adjust and adapt properly. Maybe I'm not adjusting proper
properly. Maybe I'm not adjusting proper to market conditions. Maybe my stop losses are too tight. Well, I take a setup, I lose on it, and that loss just now made me realize that I need to have
wider stop losses. I'm just spitting out a random example here. Losses provide
feedback. The issue here is that after a loss, traders shut down. They take a loss, they take two losses, and they go completely emotional. They shut down
completely emotional. They shut down their computer, they slam their desk.
How many of you have ever gone through this? You slam your desk, you slam your
this? You slam your desk, you slam your door when you walk out of the office.
That frustration builds and it never enables us to learn from our losses. The
greatest traders can look at their losses and say, "All right, this is where I messed up. This is where I need to improve on." Losses provide data.
Losses provide information. The best
traders become very good losers. The
best winners have to become really good losers. And if you can take a loss,
losers. And if you can take a loss, learn from it, right? I losses stink.
Nobody likes taking them. But if I followed my system and I followed my plan and I managed my risk properly, as as easy it is for me to say it sucks losing, but you enjoy losing a little
better when you follow your plan and you manage your risk properly because you know it's inevitable. You know every trade you're going to take is not always going to be a win. So when you have the system and you follow it and you take a loss from it, it helps make losing
become a little easier, I guess you could say. versus if I act emotionally
could say. versus if I act emotionally when I enter without a plan and I lose on it, that's the most frustrating loss.
So losses are part of the game. They
don't define you. But how you build from your losses, it's going to make a complete difference in your trading. A
loss only becomes a failure if you don't learn from it. A loss could be a win if you take an important lesson out of it.
Trading can change your life if you stick with it and you never give up when things get tough. It's an emotional battle. There's still some days to this
battle. There's still some days to this day where I get very emotional. I get
very frustrated in my own decisions. And
the best traders will never give up.
Just know that the possibilities are endless. The opportunities are infinite.
endless. The opportunities are infinite.
There's so many opportunities that can come from the market. It changed my life and I'm very confident it could change your life. Never compare yourself. Focus
your life. Never compare yourself. Focus
on your own process and your own journey and never compare. It is a skill that we will never master. We will only just get better at. I get better week after week,
better at. I get better week after week, month after month, year after year. I
never consider myself making it or I never consider myself, you know, to to master this profession. It's a constant journey of self-improvement. It's a
constant journey of oneupping ourselves and it's a constant journey of adapting, tweaking, and adjusting. Just know that the possibilities are endless. And when
you want to give up, that means you are very close to your breakthrough. Never
give up. Never throw in the towel. Just
use it to wipe your sweat off. When
things get tough, when you get frustrated, when you get angry and you start sweating and you start fearing or questioning your ability to make this as a trader, take the towel, never throw it
in. Just use it to wipe the sweat off
in. Just use it to wipe the sweat off and focus on the process. The
possibilities are endless. Again, it
changed my life. I'm very confident everybody watching this has the ability.
you have the knowledge and you have all the resources to be successful and take money out of the markets on a consistent basis. If you liked this video, kind of
basis. If you liked this video, kind of just like a raw talk of me just spitting out whatever comes to my mind, let me know in the comments. Drop a like on this video if you learned anything and check out the links in the description
of this video. But other than that, I'm ending it. Peace out.
ending it. Peace out.
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