Excellent observations. My first 5 years I had winning periods as long as 4 months but always by the end of the year I lost money, every year :( BUT I refused to accept I couldn't be a success at this game, if someone else can do it then so can I. I read through my trading journals and realised how my emotions and my attitude to risk were causing me to fail. 5 long and expensive years for the penny to drop! . So when Nick says it takes years to really understand the markets and to experience different market conditions I can absolutely underline how important that is. My answer was to take fewer trades, cutting trade size to the point I didn't sweat when I pressed the buy/sell button and having a clear defined point at which I have to say 'oh, I was wrong' and I'm losing money. Taking a loss really hurts but it's necessary in order to preserve your trading capital and live to fight another day. Get poor quickly, get rich slowly. Good luck all.
Having a journal with all your positions all day long, Symbol, B Price, Order Type, Stop loss, Selling Price, Profit. Then in the end of the day Max Profit, Max Loss, Number of trades overall, * Writting down notes on mistakes / insights, ex ,, Here my stop loss was too tight ! ", In the end of trading week overall summary etc. That brought my trading to next and third and fourth level. Total trades in 5 months so far 1000 +, already profitable on paper with $30 000, going live soon on stocks. Wish you all the best and thanks for great video !
I make thousands easily on demo. With real money, I consistently lose money. Emotion is the biggest obstacle to becoming profitable and there are no emotions in demo.
Emotions definitely play a huge role, personally I can tell you from the previous businesses I was involved in the main thing I have learnt (which I'm carrying onto trading) is that you have to neutralize BOTH wins and losses. If you get overly excited over a winning streak then guess what - you'll be devastated once you're in loss and every trade just seems to go against you. If you truly show no emotions about either outcome (which you can practise by not getting excited over wins anymore, in my case that automatically made me care way less about losses as well) you will have a huge advantage. I will say though that I'm not trading on the level of nick yet, but the businesses I've learnt these lessons in all have become a lot more successful once I had adapted that very mindset to them. Hope that helped you in some way :)
you must have a special constitution to be DEVASTATED (use your word) after losing 1% of your account . but if you are trading not 1% but much more, then isnt emotions fault isnt it @@Ekgchannel123
Agree but it all comes down to fully accepting and embracing the lose risk to have the reward and gains. In demo you really not are risking something. That's why it's very easy. Read trading in the zone. Perhaps one of the best books for traders like us.
I stand corrected but from my observations demo's are good for strategy testing or tweaking. At some point you need to feel the real pain of a loss. Losses helped me manage my risk very well. Now I don't go in without a proper exit plan whether (p/l). I got to a point where if I don't see a trade I'm happy to wait... Remember I have a soul sucking job and money pressures. Even with that in mind I can still be patient in my trading.
Such great advice. I am currently trading in a sim and today had a big loss, broke the rules and got burned. Im still in just rather disappointed with my actions. Going back to my rules and focusing on what state the market is in. Gonna claw my way back slowly but consistently again. Wont trade with real money until I have 3 months Im happy with.
Hmm, there is one positive reason to trade live, to get the feeling of acually losing real money therefore getting rid of emotions faster. Im thinking about creating a small account and only trading small positions just to get the feel in losing real money. Would you say that this could work?
Yeah you sound a lot like me man! I started trading with a broker that offered any position size with a very small amount of money like a couple hundred bucks - just enough so that if I lost it all it would sting, but not so much that I would flip out and not focus properly. I definitely believe it helped me develop emotional discipline and good practices / consistency with risk management early on. I really just couldn't take demo seriously enough because there was no pain (or over-excitement) involved. One great tip: try turning off your position P&L on the charts so you don't know how much size you're trading while you manage your positions. That way you treat it more seriously and focus more on the process over the outcome and % gains over the long-term instead of $ gains for the day or whatever. Do your best to remove the feeling that you're not 'making enough' or that you can risk whatever you want because it's only a small account and remind yourself that it's tuition capital, cuz that will interfere with your trading if you get cocky (speaking from experience!). Also turning off $P&L it makes it easier to transition to a larger account size emotionally/stress-wise because it's essentially no different to trading your smaller account except for when you check the balance at the end of a trade / day / week etc. Other than that, just focus on not blowing the small account and getting consistent, then once you start making money you can up it a little more and see how you go from there :) it worked for me and I'm now trading consistently full-time for a number of months! Just keep in mind that spreads and commissions are much worse on a small account. TLDR - Treat the small account like a large account, don't take big gamble trades etc. - focus on not blowing it up too quickly and getting consistent with risk management in particular. Otherwise you can develop bad habits and get reckless and/or end up wasting a lot of money re-funding small accounts, that is the flip side! Good luck man :) hard work will get you there! PS. Journal the shit out of your progress and record every lesson or mistake and every single trade you take! Trust me, it will help speed up the path to consistency immensely and train you to think of it like a business from the get-go instead of a hobby or a casino.
Zenarchist Yeah, Im putting in 1 grand When i turn 18 and I’ll trade a max of 0.05 contracts just to get the feel of losing real money. And yeah great tips! Im getting a journal today so i can write about every bad trade i make.
Nick u got people unliking your videos and this proves to me that no matter how good you are u will always have haters... BTW I love your videos following you on other social media and trading for 9 years now but not seen anyone as fair as you are... Thanks man
So true Nick, i have been trading for 5 years and for the past year i started to become consistent and profitable, but the problem is like you said I lost most of my trading capital on my early years instead of going demo, now that i finally "made it" but i leave with very little money to play with, great advice not to trade live when you are not ready!
Hahahaha I love how u called me out! I'm 23 and enthusiastic. Then again, i have two years under my belt and have made those mistakes and learned from em
Hey Nicholas, i'm a big fan of your videos and I have been trading for a while now, but something that often causes me problems is the timing of when to enter a trade (most of the time I trade on intraday basis, so I do a few trades a day). Often my predictions and my analysis is right, but my timing turns my trade into a loss as I trade with leverage and need to place relatively tight stop losses. If you could make a video about this topic and give some practical examples or explain how you choose the exact timing to enter a trade that would be very lovely (as it should be very similar on higher time frames as well, fib, significant levels, trend lines etc. but how does it work with the exact timing? Much love and much appreciated, Mike :-)
Michael Thomas I watched some of his live trading examples which helped me out quite a bit. Don’t be turned off by the duration of the videos because he’s also tagged the videos with the important time stamps so you don’t miss anything.
For consistency , stick with your edge , if there is no trade in your strategy don’t trade , wait for your strategy come .. it’s not easy ... psychology work big roll ...
Hello Nicholas , I want to ask a Question. What is the difference between a Trader working at a Prop Trading Firm vs a Normal retail Trader. Do they trade same as Retail Traders. Can you Answer or make a Video on this Topic. On how Prop Traders Trade vs Retail Trader Trade. The difference in Leverage they use, Risk Management there strategies or Indicators they use or not like Retail Traders which rely heavily on Technical Indicators . Have a Great Day
Hey, when your talking risk management, I have one question: When risking 2% max on a trade, do you mean 1) Not being in the trade with a larger amout of the account than 2% OR 2) Placing a stoploss so you dont lose more than 2%?
So your position size and your stoploss = 2% of your account. In a $1,000 account you could risk 2% per trade by using a standard lot ($10 per pip) and have a 2 pip stop loss which incurs a $20 loss. Or by trading a mini lot ($1 per pip) you can have a 20 pip stop loss to incur a maximum $20 loss. I hope this helps
I understand what your saying about staving on a demo account to improve as trader, But for me , when i traded FX via a CFD account, the brokers-slipage & being dumped 20pips away from my entry Point became more apparent only ONCE i was trading live. (These trades i was refering to were through Interest rate moves not NFPs)
Darth Forex Vader if u‘r still Trading fx would suggest you to try a demo at active trades, the spreads for the majors are quite good(from5- max10pips)
trading a yr on Demo is really challenging. It's hard to motivate yourself to do the research before you enter the trade, knowing you aren't making any money. But trading should be easy. If it is difficult, you haven't got any system and rules. Trading Demo helps to master rules. Eventually you become a rules follower and stop carring about money, only performence.
🔹 Get FREE access to the Duomo Trader Development Program: duomotrading.com/FreeDuomoTraining 🔹 Add us on Instagram: instagram.com/duomoinitiative/ 🔹 Our second channel for financial news and analysis: ruclips.net/user/MarketMoversFinancialNewsandAnalysis
Retail account vs Proprietary trading account vs CAP / Hedge Fund Trading. What are the Differences between the. Everybody tells what to trade. But where to trade is also an Important question. I would be very happy if you can make a Video concerning this topic or answer by commenting . Thank You
He is right. Take it SLOWWWww.Step up $ a little at a time. ALL skills require time and effort. No matter how good you are time with effort will make you better no matter what you are learning to do.. Sports doctors lawyer even thief’s even get better the longer they do it. Until they get caught. Take it slow..
lol Nick, jump on Twitter... anyone who trades cryptos has become a trade expert. BUY THE DIP! Yet no one can explain fully why BTC recent 70% pullback even happened.
Excellent observations. My first 5 years I had winning periods as long as 4 months but always by the end of the year I lost money, every year :( BUT I refused to accept I couldn't be a success at this game, if someone else can do it then so can I. I read through my trading journals and realised how my emotions and my attitude to risk were causing me to fail. 5 long and expensive years for the penny to drop! . So when Nick says it takes years to really understand the markets and to experience different market conditions I can absolutely underline how important that is. My answer was to take fewer trades, cutting trade size to the point I didn't sweat when I pressed the buy/sell button and having a clear defined point at which I have to say 'oh, I was wrong' and I'm losing money. Taking a loss really hurts but it's necessary in order to preserve your trading capital and live to fight another day. Get poor quickly, get rich slowly. Good luck all.
Thank You.👏Just what I wanted to here to keep going.
I wonder why this channel doesn't have millions of subscribers danm you say
the truth and you are the best man...pls continue i love it and it helps
Thanks Felix!
~ Nicholas
@@Duomoinitiative you are
welcome boss
Having a journal with all your positions all day long, Symbol, B Price, Order Type, Stop loss, Selling Price, Profit. Then in the end of the day Max Profit, Max Loss, Number of trades overall, * Writting down notes on mistakes / insights, ex ,, Here my stop loss was too tight ! ", In the end of trading week overall summary etc. That brought my trading to next and third and fourth level. Total trades in 5 months so far 1000 +, already profitable on paper with $30 000, going live soon on stocks. Wish you all the best and thanks for great video !
I make thousands easily on demo. With real money, I consistently lose money. Emotion is the biggest obstacle to becoming profitable and there are no emotions in demo.
Emotions definitely play a huge role, personally I can tell you from the previous businesses I was involved in the main thing I have learnt (which I'm carrying onto trading) is that you have to neutralize BOTH wins and losses. If you get overly excited over a winning streak then guess what - you'll be devastated once you're in loss and every trade just seems to go against you. If you truly show no emotions about either outcome (which you can practise by not getting excited over wins anymore, in my case that automatically made me care way less about losses as well) you will have a huge advantage. I will say though that I'm not trading on the level of nick yet, but the businesses I've learnt these lessons in all have become a lot more successful once I had adapted that very mindset to them. Hope that helped you in some way :)
you must have a special constitution to be DEVASTATED (use your word) after losing 1% of your account . but if you are trading not 1% but much more, then isnt emotions fault isnt it @@Ekgchannel123
Agree but it all comes down to fully accepting and embracing the lose risk to have the reward and gains. In demo you really not are risking something. That's why it's very easy. Read trading in the zone. Perhaps one of the best books for traders like us.
How's your progress today?
I stand corrected but from my observations demo's are good for strategy testing or tweaking. At some point you need to feel the real pain of a loss. Losses helped me manage my risk very well. Now I don't go in without a proper exit plan whether (p/l). I got to a point where if I don't see a trade I'm happy to wait... Remember I have a soul sucking job and money pressures. Even with that in mind I can still be patient in my trading.
Such great advice.
I am currently trading in a sim and today had a big loss, broke the rules and got burned. Im still in just rather disappointed with my actions. Going back to my rules and focusing on what state the market is in. Gonna claw my way back slowly but consistently again. Wont trade with real money until I have 3 months Im happy with.
Hmm, there is one positive reason to trade live, to get the feeling of acually losing real money therefore getting rid of emotions faster. Im thinking about creating a small account and only trading small positions just to get the feel in losing real money. Would you say that this could work?
Andrew Collin It will bring in pain, it will hurt, it will crush your soul. But in the end, you will become stronger emotionally.
Yeah you sound a lot like me man! I started trading with a broker that offered any position size with a very small amount of money like a couple hundred bucks - just enough so that if I lost it all it would sting, but not so much that I would flip out and not focus properly. I definitely believe it helped me develop emotional discipline and good practices / consistency with risk management early on. I really just couldn't take demo seriously enough because there was no pain (or over-excitement) involved.
One great tip: try turning off your position P&L on the charts so you don't know how much size you're trading while you manage your positions. That way you treat it more seriously and focus more on the process over the outcome and % gains over the long-term instead of $ gains for the day or whatever.
Do your best to remove the feeling that you're not 'making enough' or that you can risk whatever you want because it's only a small account and remind yourself that it's tuition capital, cuz that will interfere with your trading if you get cocky (speaking from experience!). Also turning off $P&L it makes it easier to transition to a larger account size emotionally/stress-wise because it's essentially no different to trading your smaller account except for when you check the balance at the end of a trade / day / week etc.
Other than that, just focus on not blowing the small account and getting consistent, then once you start making money you can up it a little more and see how you go from there :) it worked for me and I'm now trading consistently full-time for a number of months! Just keep in mind that spreads and commissions are much worse on a small account.
TLDR - Treat the small account like a large account, don't take big gamble trades etc. - focus on not blowing it up too quickly and getting consistent with risk management in particular. Otherwise you can develop bad habits and get reckless and/or end up wasting a lot of money re-funding small accounts, that is the flip side!
Good luck man :) hard work will get you there!
PS. Journal the shit out of your progress and record every lesson or mistake and every single trade you take! Trust me, it will help speed up the path to consistency immensely and train you to think of it like a business from the get-go instead of a hobby or a casino.
Andrew Collin yeah, paper money don't count.
Zenarchist Yeah, Im putting in 1 grand When i turn 18 and I’ll trade a max of 0.05 contracts just to get the feel of losing real money. And yeah great tips! Im getting a journal today so i can write about every bad trade i make.
Zenarchist you hit the nail on the head 👍🏻
Nick u got people unliking your videos and this proves to me that no matter how good you are u will always have haters... BTW I love your videos following you on other social media and trading for 9 years now but not seen anyone as fair as you are... Thanks man
love your ranting. I like to trade & have your videos running in the background.
Better than calming music
So true Nick, i have been trading for 5 years and for the past year i started to become consistent and profitable, but the problem is like you said I lost most of my trading capital on my early years instead of going demo, now that i finally "made it" but i leave with very little money to play with, great advice not to trade live when you are not ready!
Hahahaha I love how u called me out! I'm 23 and enthusiastic. Then again, i have two years under my belt and have made those mistakes and learned from em
This. Week. Was. Awesome!!! 93% hit rate and 93% gain on portfolio. Vol really really helped my day trading. So many opportunities!
MFiskeaux but did you follow your plan?
Townsend Moore Yes. Waited for my risk/reward to set up, sized in, and then exited at targets.
Hey Nicholas, i'm a big fan of your videos and I have been trading for a while now, but something that often causes me problems is the timing of when to enter a trade (most of the time I trade on intraday basis, so I do a few trades a day). Often my predictions and my analysis is right, but my timing turns my trade into a loss as I trade with leverage and need to place relatively tight stop losses. If you could make a video about this topic and give some practical examples or explain how you choose the exact timing to enter a trade that would be very lovely (as it should be very similar on higher time frames as well, fib, significant levels, trend lines etc. but how does it work with the exact timing?
Much love and much appreciated, Mike :-)
Michael Thomas I watched some of his live trading examples which helped me out quite a bit. Don’t be turned off by the duration of the videos because he’s also tagged the videos with the important time stamps so you don’t miss anything.
For consistency , stick with your edge , if there is no trade in your strategy don’t trade , wait for your strategy come .. it’s not easy ... psychology work big roll ...
How can anyone thumbs down good advice, Muppets. Thanks Nicholas
Good stuff Nick. We can all use a reality check from time to time.
Hello Nicholas ,
I want to ask a Question. What is the difference between a Trader working at a Prop Trading Firm vs a Normal retail Trader.
Do they trade same as Retail Traders. Can you Answer or make a Video on this Topic. On how Prop Traders Trade vs Retail Trader Trade. The difference in Leverage they use, Risk Management there strategies or Indicators they use or not like Retail Traders which rely heavily on Technical Indicators .
Have a Great Day
Hey, when your talking risk management, I have one question: When risking 2% max on a trade, do you mean 1) Not being in the trade with a larger amout of the account than 2% OR 2) Placing a stoploss so you dont lose more than 2%?
So your position size and your stoploss = 2% of your account. In a $1,000 account you could risk 2% per trade by using a standard lot ($10 per pip) and have a 2 pip stop loss which incurs a $20 loss. Or by trading a mini lot ($1 per pip) you can have a 20 pip stop loss to incur a maximum $20 loss. I hope this helps
thank you very much for sharing your knowledge, I have learn a lot watching your videos!
Thank You!!! I enjoy these informal videos of yours. Feels like you are speaking from the heart. Will keep checking out other videos. Thanks.
Great as usual good to have you nick keep it up !!
best RUclips channel ever !
That's kind of you, thank you!
- Nicholas
I understand what your saying about staving on a demo account to improve as trader, But for me , when i traded FX via a CFD account, the brokers-slipage & being dumped 20pips away from my entry Point became more apparent only ONCE i was trading live. (These trades i was refering to were through Interest rate moves not NFPs)
Darth Forex Vader if u‘r still Trading fx would suggest you to try a demo at active trades, the spreads for the majors are quite good(from5- max10pips)
trading a yr on Demo is really challenging. It's hard to motivate yourself to do the research before you enter the trade, knowing you aren't making any money. But trading should be easy. If it is difficult, you haven't got any system and rules. Trading Demo helps to master rules. Eventually you become a rules follower and stop carring about money, only performence.
🔹 Get FREE access to the Duomo Trader Development Program: duomotrading.com/FreeDuomoTraining
🔹 Add us on Instagram: instagram.com/duomoinitiative/
🔹 Our second channel for financial news and analysis: ruclips.net/user/MarketMoversFinancialNewsandAnalysis
Thank u for your input
Retail account vs Proprietary trading account vs CAP / Hedge Fund Trading. What are the Differences between the. Everybody tells what to trade. But where to trade is also an Important question.
I would be very happy if you can make a Video concerning this topic or answer by commenting .
Thank You
Cheers Nick!
Did you ever heard about someone who is full time trader but is using automated trading ...what is the best aproach to automated trading.
You are awesome :)
Great videos 😃
He is right. Take it SLOWWWww.Step up $ a little at a time. ALL skills require time and effort. No matter how good you are time with effort will make you better no matter what you are learning to do.. Sports doctors lawyer even thief’s even get better the longer they do it. Until they get caught. Take it slow..
damn it i love this channel
This video is literally talking to me in every specific detail! LMAO
true
gooooòoood . 👍
lol Nick, jump on Twitter... anyone who trades cryptos has become a trade expert. BUY THE DIP! Yet no one can explain fully why BTC recent 70% pullback even happened.