Keep on bringing the alpha James….appreciate you sharing this course. Thanks for the tips in relation to candle colour and stop loss as your starting point cheers
James, of all the trading channels ive watched, your videos are what i need, not yet profitable but i will follow my system no matter what from now on ❤
Letting winners run gets harder as you add more positions to a trade. For example, if I have 50 contracts of EUR/USD and it goes up to $700 per contract, that's $35,000-which is hard to let go of. So, it's important to pick targets and make money to live and enjoy. While a $200 profit may not seem like much, if you have 25 contracts, you can see how $200 can change your life. If you can consistently earn $200 profit per deal, 10 times a year, that's $50,000! $200 x 25 = $5000 per deal.
If I understand your question correctly, the reason I didn't go in to detail about risk to reward ratio was because from a "winning" persepctive, winning and losing is binary. The amount you win by is irrelevat to system 1. A win is a win, which is the reason we take profit at $1 instead of waiting for $1,000. Waiting for a bigger reward is dangerous for system 1. You could lose your lead and advantage and the win can turn to a loss, so don't wait. Win asap. I mentioned this briefly with regards the basketball game example.
Great content again, thanks!! Isn't it sometimes also about being cautious and reduce the risk exposure when taking profits and not allow the market to mess around with your money (and psychology)? When markets go sideways for a long period of times and there is no direction, isn't in-and-out (with the risk of taking profits a bit too early) better than waiting for the breakout in either direction? We will never be excellently perfect, right?
Examine what you've asked there. I may be completely wrong in my interpretation so apologies if that's so, but... it sounds like you are in "win" or "being right" mode when you said about not allowing the market to mess around with your money. Your system should determine your actions around taking profit. If your system says get out quickly in a side ways market, fine. But if you are breaking your rules, there's a problem. That's what this course is about... the causes behind breaking rules, not what qualifies as a good system. As an aside, if the market was sideways and I was able to identify that, I wouldn't trade at all. I don't want to be busy, and I don't need to win. I want to make money in the long term, so I am happy to sit on the side and do nothing, for weeks or months if required, until conditions are more favourable for making big profits in big trends.
I half disagree with the "being right" thing. I see a lot of RUclipsrs romanticise the idea of being wrong in trading, and I think it's a bit toxic and misleading. If you are not winning more on average than you're losing over time, then your equity curve will simply break even. I want to win as many trades as possible, and I'm not saying we should use a negative R:R, but if I'm trading a 1:1 for example, I NEED to win more often, or else my equity curve will break even at best.
I agree. If you are using a 1:1 R:R then you need to win far more individual trades. But I see this as the problem. Trading is a probabilistic activity, and winning or profiting can only be established over the long term as an aggregate of your trades. To see an individual trade as needing to win or profit, is anti-probabilistic and causes system 1 to make short term decisions that are not in our best long-term interest. We can't be right or wrong about a single trade, nor does it matter. I only "win" about 40% of my trades, yet I make money in the long term. Being right is not important to trading, but it is important to system 1. That's what we as traders need to spearate. Edit: I may not have understood, or not been clear myself. What I am talking about is breaking your system rules. If your system says one thing, but you feel the urge to do something else. Assuming your system is well designed and has an edge, breaking your rules is a mistake, and that mistake may be driven by a need to be right on this individual trade. That's a short term survival strategy, not a long term trading strategy.
I have that problem that you mentioned. I get to the fight and flight regime and start putting too much on one position. Yesterday I was following the strategy and was up 1:9 and then the market rapidly reversed(which I know is normal) and the stop was hit at a low at 1:2. I got so pissed that I didn't take the 1:9 or 1:8 that after that I increased the position size and entered a few and moved the stop loss and lost 30% and after that I had no idea why I've done it. I have done that more than a few times in the past. How do I overcome it?
It's a slow process. Recognising the behaviour is the first step. Hopefully the other lessons in this course will help you begin to develop the oversight and processes to overcome the very common issue.
Psychology DOES NOT MATTER if you do not have trading Edge (understood, created, refined your system, backtested at least 1'000 sessions (manually), generated at least 10'000 trades (manually)... and finally if results are positive (50%-60% win rate no more than 1-2% drawdown/session) THEN and only THEN you have The Edge. Which is almost IMPOSSIBLE, therefore psychology in trading is just another shadow-word for Gambling
Full Playlist: ruclips.net/p/PLpxj0ZlW-DD_EJet2ydP2XczwoRkFjg6T
Thank you a lot James keep doing this video I really apreciate all the hard work
thank you James. i appreciate so much the videos you make. your channel is criminally under subscribed.
Keep on bringing the alpha James….appreciate you sharing this course. Thanks for the tips in relation to candle colour and stop loss as your starting point cheers
James, of all the trading channels ive watched, your videos are what i need, not yet profitable but i will follow my system no matter what from now on ❤
I Thank you for your contribution. Your channel is providing me with info that I missed so far in my journey. Love from India!
What a gift. Thank you James.
Another great video James. I appreciate the way you present the information, and im looking forward to the next video.
Vert good knowledge, thank a lot 👍
Letting winners run gets harder as you add more positions to a trade. For example, if I have 50 contracts of EUR/USD and it goes up to $700 per contract, that's $35,000-which is hard to let go of. So, it's important to pick targets and make money to live and enjoy. While a $200 profit may not seem like much, if you have 25 contracts, you can see how $200 can change your life. If you can consistently earn $200 profit per deal, 10 times a year, that's $50,000!
$200 x 25 = $5000 per deal.
Brilliant video and the sharp focus is superb, yet I'm curious why doesn't the first argument in the video elaborate on winrate vs. Risk to Reward? 😊
If I understand your question correctly, the reason I didn't go in to detail about risk to reward ratio was because from a "winning" persepctive, winning and losing is binary. The amount you win by is irrelevat to system 1. A win is a win, which is the reason we take profit at $1 instead of waiting for $1,000. Waiting for a bigger reward is dangerous for system 1. You could lose your lead and advantage and the win can turn to a loss, so don't wait. Win asap. I mentioned this briefly with regards the basketball game example.
Great content again, thanks!! Isn't it sometimes also about being cautious and reduce the risk exposure when taking profits and not allow the market to mess around with your money (and psychology)? When markets go sideways for a long period of times and there is no direction, isn't in-and-out (with the risk of taking profits a bit too early) better than waiting for the breakout in either direction? We will never be excellently perfect, right?
Examine what you've asked there. I may be completely wrong in my interpretation so apologies if that's so, but... it sounds like you are in "win" or "being right" mode when you said about not allowing the market to mess around with your money. Your system should determine your actions around taking profit. If your system says get out quickly in a side ways market, fine. But if you are breaking your rules, there's a problem. That's what this course is about... the causes behind breaking rules, not what qualifies as a good system.
As an aside, if the market was sideways and I was able to identify that, I wouldn't trade at all. I don't want to be busy, and I don't need to win. I want to make money in the long term, so I am happy to sit on the side and do nothing, for weeks or months if required, until conditions are more favourable for making big profits in big trends.
But Sir, the markets no longer trend often. You keep taking Breakevens to practice this rule??
I half disagree with the "being right" thing.
I see a lot of RUclipsrs romanticise the idea of being wrong in trading, and I think it's a bit toxic and misleading.
If you are not winning more on average than you're losing over time, then your equity curve will simply break even.
I want to win as many trades as possible, and I'm not saying we should use a negative R:R, but if I'm trading a 1:1 for example, I NEED to win more often, or else my equity curve will break even at best.
I agree. If you are using a 1:1 R:R then you need to win far more individual trades. But I see this as the problem. Trading is a probabilistic activity, and winning or profiting can only be established over the long term as an aggregate of your trades. To see an individual trade as needing to win or profit, is anti-probabilistic and causes system 1 to make short term decisions that are not in our best long-term interest. We can't be right or wrong about a single trade, nor does it matter. I only "win" about 40% of my trades, yet I make money in the long term. Being right is not important to trading, but it is important to system 1. That's what we as traders need to spearate.
Edit: I may not have understood, or not been clear myself. What I am talking about is breaking your system rules. If your system says one thing, but you feel the urge to do something else. Assuming your system is well designed and has an edge, breaking your rules is a mistake, and that mistake may be driven by a need to be right on this individual trade. That's a short term survival strategy, not a long term trading strategy.
I have that problem that you mentioned. I get to the fight and flight regime and start putting too much on one position. Yesterday I was following the strategy and was up 1:9 and then the market rapidly reversed(which I know is normal) and the stop was hit at a low at 1:2. I got so pissed that I didn't take the 1:9 or 1:8 that after that I increased the position size and entered a few and moved the stop loss and lost 30% and after that I had no idea why I've done it. I have done that more than a few times in the past. How do I overcome it?
It's a slow process. Recognising the behaviour is the first step. Hopefully the other lessons in this course will help you begin to develop the oversight and processes to overcome the very common issue.
Psychology DOES NOT MATTER if you do not have trading Edge (understood, created, refined your system, backtested at least 1'000 sessions (manually), generated at least 10'000 trades (manually)... and finally if results are positive (50%-60% win rate no more than 1-2% drawdown/session) THEN and only THEN you have The Edge.
Which is almost IMPOSSIBLE, therefore psychology in trading is just another shadow-word for Gambling
James, I have sent a contact email request through your website…… from Bulgaria….
I've replied