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The 300 Trade Rule Why You MUST Practice Before Going Live! · Earn Your Leisure

• 0:00
  Speaker 1: What's the trading tip of the week.
• 0:05
  Speaker 2: I keep getting pushed back on these contract sizes. When
• 0:09
  Speaker 2: I did episode seventy with them, I want to be
• 0:12
  Speaker 2: clear because I see what kind of movershot is, so
• 0:15
  Speaker 2: I'm be in the same move.
• 0:16
  Speaker 1: I feel you, my brother.
• 0:18
  Speaker 2: When I did the episode in twenty twenty, that was
• 0:21
  Speaker 2: my sixth year trading futures. Not everyone wants to trade
• 0:26
  Speaker 2: one to three contracts forever. At some point you're going
• 0:29
  Speaker 2: to have to size up in order to have freedom.
• 0:32
  Speaker 2: If you're new here, my rule of thumb has always
• 0:35
  Speaker 2: been three hundred practice trades and then go live. But
• 0:40
  Speaker 2: you can't put a boskie out on your wall trading
• 0:43
  Speaker 2: one to four contracts put in chat. I deserve to
• 0:47
  Speaker 2: size up to become free practice like crazy. But once
• 0:53
  Speaker 2: you get two years in, you need to be in
• 0:55
  Speaker 2: that ten to fifteen contract range in order to make
• 0:59
  Speaker 2: them moves that you're making in the market worth it.
• 1:02
  Speaker 1: Trading has considered a risk advisor.
• 1:05
  Speaker 2: You have to love this game inside and out and
• 1:08
  Speaker 2: be dedicated to it. But you know, it really sucks
• 1:10
  Speaker 2: catching a seven or eight hundred point move on a
• 1:13
  Speaker 2: NASA CAN now and you're a one contract in, you
• 1:17
  Speaker 2: may have caught one of the best moves of your life,
• 1:20
  Speaker 2: and then when you transfer the money, it doesn't.
• 1:22
  Speaker 1: Feel like you had any significant value. So you gotta
• 1:25
  Speaker 1: size I want to know, it's very important. I was
• 1:30
  Speaker 1: going to for you, but I'm not going to pose
• 1:31
  Speaker 1: you because this is too important to play. Go ahead.
• 1:33
  Speaker 1: This is sid you gotta size up. Yeah, that's crazy,
• 1:41
  Speaker 1: but not true.
• 1:44
  Speaker 3: And when I was watching your presentation, I'm always looking
• 1:48
  Speaker 3: for like this new information. So even when you talked
• 1:51
  Speaker 3: about uh, contracts being the same price in futures right,
• 1:56
  Speaker 3: which is very different in options, which you know, almost
• 2:00
  Speaker 3: made me unravel the level of discipline that I usually
• 2:03
  Speaker 3: have because I started looking for contracts that would be
• 2:07
  Speaker 3: more peaceable to a grander audience, meaning like these are
• 2:10
  Speaker 3: more affordable, and if they're more affordable, more people can
• 2:14
  Speaker 3: get multiple contracts, whereas in the past it was always hey,
• 2:17
  Speaker 3: let me go find a leap out there that is
• 2:20
  Speaker 3: a year maybe eighteen to two years out a little
• 2:23
  Speaker 3: bit more expensive, but we buy time, which means we
• 2:26
  Speaker 3: buy volatility. And so there's like this space that I
• 2:30
  Speaker 3: was I'm wrestling with because it's like, yes, you want
• 2:32
  Speaker 3: more people to have exactly what you're talking about. I
• 2:35
  Speaker 3: would say, when you have an investment or you make
• 2:38
  Speaker 3: a trade that works, two things happen. One's going to
• 2:41
  Speaker 3: be like, man, I'm so happy that that worked, and
• 2:44
  Speaker 3: I'm happy that I'm in the green. And the other
• 2:46
  Speaker 3: thing is, damn, I wish I would have put more
• 2:48
  Speaker 3: money in.
• 2:50
  Speaker 1: The two things at all time.
• 2:52
  Speaker 3: You know, when you're in the green, it's like, damn
• 2:56
  Speaker 3: one contract, man, if I would have had two, Oh,
• 2:58
  Speaker 3: I had five contracts, if I had ten, or I
• 3:01
  Speaker 3: had ten, but it pulled back a little bit and
• 3:03
  Speaker 3: I sold half of it off.
• 3:04
  Speaker 1: And those things always happen.
• 3:06
  Speaker 3: And I think it goes back to that piece we
• 3:08
  Speaker 3: talked about maybe last week, where it's like, don't skip that,
• 3:13
  Speaker 3: Like you should go through that, Like you should prepare
• 3:16
  Speaker 3: yourself for that moment. You should prepare yourself to be
• 3:18
  Speaker 3: in those positions because it will teach you about grit,
• 3:21
  Speaker 3: it'll teach you about financial intelligence mixed with emotional intelligence.
• 3:25
  Speaker 1: You have to go through it.
• 3:27
  Speaker 3: But the discipline piece of saying, you know what, this
• 3:30
  Speaker 3: is my moment. I feel comfortable now. Like you said,
• 3:33
  Speaker 3: three hundred trades for me, it was twenty twenty July.
• 3:36
  Speaker 3: I said I'm comfortable I'm going for it at some point. Again,
• 3:42
  Speaker 3: trading has considerable risks. At some point, you've got to
• 3:45
  Speaker 3: get to the point where it's like I put up
• 3:46
  Speaker 3: enough practice shots.
• 3:48
  Speaker 1: It's time for me.
• 3:49
  Speaker 3: I gotta go in the game now and start and
• 3:52
  Speaker 3: really say this is my plan and I'm going to
• 3:55
  Speaker 3: execute at a high level and then be disciplined about that.
• 4:00
  Speaker 2: Yeah, and some of you asks for one is a
• 4:01
  Speaker 2: time we will tell you, like I remember when April happened.
• 4:04
  Speaker 1: I did good in New York. Of course we did
• 4:07
  Speaker 1: the show.
• 4:07
  Speaker 2: We're telling you like, no, this keen biding opportunity, like
• 4:10
  Speaker 2: even for me that April made the rest of my year,
• 4:14
  Speaker 2: Like I could have been done just trade in April
• 4:16
  Speaker 2: like that allowed me such a large swing percentage wise
• 4:22
  Speaker 2: that I can be really careful after every trade after
• 4:25
  Speaker 2: that and only take perfect setup. So we're getting close
• 4:29
  Speaker 2: to an inflection point like that. And kudos to all
• 4:32
  Speaker 2: if anyone if feel new, But this being my tenth
• 4:37
  Speaker 2: year in this future space, when it wasn't that many
• 4:40
  Speaker 2: of us of our h in it, I'm telling you,
• 4:42
  Speaker 2: at some point you have to have moments in which
• 4:44
  Speaker 2: you graduate. You've seen it even in this partnership and
• 4:48
  Speaker 2: with their show, right, you go from show to get
• 4:51
  Speaker 2: your tickets to invest fest. At some point you have
• 4:54
  Speaker 2: to scale and get outside of your comfort zone.
• 4:56
  Speaker 1: Here.
• 4:56
  Speaker 3: Here's a question in just full transparency here, because I've
• 4:59
  Speaker 3: noticed has happened from time to time. You have these
• 5:03
  Speaker 3: great gains thousand percent, two thousand percent in a company,
• 5:06
  Speaker 3: you have your stacks, and I think maybe in twenty
• 5:11
  Speaker 3: four I noticed this, right, just having some great gains
• 5:14
  Speaker 3: and saying, hey, we've won big here, we can be
• 5:18
  Speaker 3: a little bit.
• 5:18
  Speaker 1: More risky over here.
• 5:20
  Speaker 3: And then in twenty twenty five realizing like wait, no, no, no, no,
• 5:23
  Speaker 3: you got to stay as disciplined as you were when
• 5:26
  Speaker 3: you're at the big game, even more discipline, even more precise.
• 5:30
  Speaker 3: I think that's where the stay load, keep firing thing
• 5:32
  Speaker 3: comes from. It's like, yes, stay low, being the research,
• 5:35
  Speaker 3: but like still strike with the same amount of position.
• 5:38
  Speaker 1: Don't get loose because you've got balls. Don't don't get
• 5:42
  Speaker 1: you know, some.
• 5:44
  Speaker 2: Of y'all was at All Star weekend. I heard we're
• 5:46
  Speaker 2: talking about on blackout or not.
• 5:49
  Speaker 3: Don't get unraveled, don't lose your plan, don't get undisciplined
• 5:53
  Speaker 3: because of those games, and that happens a lot too,
• 5:55
  Speaker 3: right Like people will say, oh, man, I hit the
• 5:58
  Speaker 3: five hundred percent, let me go, I'm trying to do
• 6:01
  Speaker 3: this again.
• 6:03
  Speaker 1: You've got to change your risk profile.
• 6:05
  Speaker 3: Can't do risk profile can't change, and that that that
• 6:08
  Speaker 3: is something that's very important. And on the downside as well,
• 6:10
  Speaker 3: I've seen people, Hey, you know what, I did this
• 6:13
  Speaker 3: called it didn't where I'm never doing this again, and
• 6:15
  Speaker 3: then they watched that same call for somebody else. It's
• 6:19
  Speaker 3: about the discipline, but it's also about the experience too.
• 6:22
  Speaker 1: I think we can't overlook those two things together.
• 6:25
  Speaker 2: And you probably an even best better lesson in futures.
• 6:28
  Speaker 2: Your risk profile should not change. And then if you
• 6:32
  Speaker 2: once you scale up, you should stay in that pocket
• 6:35
  Speaker 2: of contracts whatever you're trading four hundred trades. That way
• 6:39
  Speaker 2: you can have clear risk profile and you're not going up,
• 6:43
  Speaker 2: say fourteen hundred percent, but then drawn down three hundred percent.
• 6:47
  Speaker 2: Your stop losses should be the same, Your targets should
• 6:49
  Speaker 2: be the same. Even in Red Panda, they'll asks me like,
• 6:51
  Speaker 2: what's your short of target. I'm like, it's the same
• 6:53
  Speaker 2: thing from episode seventy. You can't keep changing and that's
• 6:58
  Speaker 2: why like when Rishard is held a conservative I like
• 7:01
  Speaker 2: that because you'll be in a game fifteen years from now,
• 7:03
  Speaker 2: the people who blow up all their funds, like take
• 7:06
  Speaker 2: Sam Bankman free right, he did a couple things that
• 7:09
  Speaker 2: were illegal and missed out on a whirlwind of an
• 7:12
  Speaker 2: investment in anthropic because your risk profile changed because you
• 7:16
  Speaker 2: start crunching the numbers to meet a shorter term metric.
• 7:19
  Speaker 2: If you stay conservative, only risk one to two percent
• 7:23
  Speaker 2: of trade ten percent of trade, you won't have those
• 7:26
  Speaker 2: issues and you'll eventually be able to hit a home run.
• 7:28
  Speaker 2: So keep your risk profile the same throughout your trading career,
• 7:31
  Speaker 2: and they go a hell of a lot easier.