Latest / Earn Your Leisure / YOUR EXIT STRATEGY IS A PRAYER — Why 90% of Traders Lose

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YOUR EXIT STRATEGY IS A PRAYER — Why 90% of Traders Lose · Earn Your Leisure

• 0:00
  Speaker 1: Was tough.
• 0:01
  Speaker 2: All right, let's get into talking about trading. Let's talk
• 0:04
  Speaker 2: about trading. Let's talk about trading mistakes, the biggest trading mistakes,
• 0:08
  Speaker 2: and also how to trade successfully in a tough market.
• 0:15
  Speaker 1: I love this question.
• 0:17
  Speaker 3: A person asked me, hey, if I'm running to rough
• 0:19
  Speaker 3: patch over the last quarter, what advice would you give
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  Speaker 3: me for trading the markets now? And my thing is
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  Speaker 3: if you're having my three things that I always go to,
• 0:30
  Speaker 3: is what is the target that you're using? Are you
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  Speaker 3: trading the same assets over and over again? And are
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  Speaker 3: you recording your trades and replaying them? And I know
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  Speaker 3: people get tired of me saying that, but 90% of
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  Speaker 3: people who trade don't record their trades. So if you're
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  Speaker 3: hooping and you say, well, I think I was in
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  Speaker 3: triple threat properly, but you had nine turnovers and the
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  Speaker 3: ball was stolen from you four times, you won't be
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  Speaker 3: able to see it because the emotion is so high.
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  Speaker 3: But the big thing that I'm seeing for a lot
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  Speaker 3: of people who don't trade futures, you're jumping around trading
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  Speaker 3: different assets and you don't know the personality of them
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  Speaker 3: to be able to trade them well. Like I can
• 1:11
  Speaker 3: use the same target for NASDAQ, Dow, UB, mini red
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  Speaker 3: wheat and crude oil. They all have different temperament, different buyers,
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  Speaker 3: different sellers, and they all move at different speeds. So
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  Speaker 3: even though I'm using the same target, it's going to
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  Speaker 3: take me a lot longer to get a 16 tick
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  Speaker 3: target knocked out on ZB than it will accrue. So
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  Speaker 3: I think one of the biggest lessons, if you are
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  Speaker 3: looking to do better in trading, is you have to
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  Speaker 3: trade the same assets over and over again and know
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  Speaker 3: the temperament of them like the back of your hand
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  Speaker 3: so you can have a sustainable win. Because if not,
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  Speaker 3: if you're trading different assets all the time, it's going
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  Speaker 3: to be really hard to know what the outcome is
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  Speaker 3: going to be.
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  Speaker 4: Yeah, I agree with you on that. I'll just add
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  Speaker 4: really quickly, I think understanding what you're investing in. I
• 2:00
  Speaker 4: feel like over in abundance now I'm hearing, I don't
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  Speaker 4: know what that company does, but the chart looks good.
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  Speaker 3: Bro, and they're looking at a four-week chart.
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  Speaker 1: I'm like, how far did you go out? It looks
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  Speaker 1: good on the month.
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  Speaker 4: Well, let's peel back a little bit. Let's look at
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  Speaker 4: what it looks like in two years, five years. Let's
• 2:21
  Speaker 4: look at it from its inception, how has it performed, right?
• 2:24
  Speaker 4: you might be catching it in the down cycle. Even
• 2:27
  Speaker 4: when we looked at ServiceNow a few months ago, I'm talking.
• 2:30
  Speaker 1: About, hey, this is at the bottom here. We're below
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  Speaker 1: our 400 here.
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  Speaker 4: So if you look at it now, you're like, oh,
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  Speaker 4: it's had a great two months. Well, pull back about
• 2:39
  Speaker 4: a year and a half, two years, and see what
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  Speaker 4: it really was at and the position we're in now.
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  Speaker 4: Understanding it is important because If you dive deep into
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  Speaker 4: some of these companies, it all starts to make sense.
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  Speaker 4: The picture becomes very clear for you. There's a reason
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  Speaker 4: why I knew Celestica, because I was on a rabbit
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  Speaker 4: hole dive trying to figure out if a data center
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  Speaker 4: needs all these things, what companies need to be inside
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  Speaker 4: of there, right? There's a reason why we knew Fabrinand.
• 3:04
  Speaker 4: There's a reason why we even knew Corning, which I
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  Speaker 4: think is an incredible company. The story exists. We just
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  Speaker 4: got to go find the companies that are going to
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  Speaker 4: play a major part in it. So the understanding piece,
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  Speaker 4: not just looking at a chart and saying, yeah, these
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  Speaker 4: charts are good.
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  Speaker 1: I can read the candles. This is good. All right,
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  Speaker 1: I'm investing it.
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  Speaker 4: No, man, it might not be the season for it,
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  Speaker 4: like you said, seasonality, or you might be caught in
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  Speaker 4: the uptrend that had just reversed from an extreme downtrend.
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  Speaker 4: So understand what you're investing, please. I mean, it sounds
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  Speaker 4: like a simple thing to do, but most people are
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  Speaker 4: just saying, all right, I saw it on Instagram yesterday.
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  Speaker 4: They label it as the top five stocks of the month,
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  Speaker 4: so I'm just going to go with it.
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  Speaker 3: Rashad, what about you?
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  Speaker 2: The biggest trade-in mistake that I think people make is
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  Speaker 2: getting emotionally attached to trades. And that's the thing that
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  Speaker 2: is like when your exit strategy is a prayer or
• 4:04
  Speaker 2: you trying to You know, will your way back into
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  Speaker 2: profitability or you just are afraid to sell because you're
• 4:17
  Speaker 2: emotionally attached to it? Like the worst thing, you can't
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  Speaker 2: have any emotions in trading, investing, but definitely trading. And
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  Speaker 2: I think a lot of times, you know, when you
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  Speaker 2: do something, you think, okay, you know, you made an
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  Speaker 2: educated decision and you don't want to admit that you're wrong.
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  Speaker 2: But sometimes the market, well, all the time, the market
• 4:36
  Speaker 2: is always right.
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  Speaker 1: It's never that you're right. The market is right.
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  Speaker 2: So if you happen to be in unison with the market, then.
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  Speaker 1: Enjoy the ride. But if the market takes a downturn,
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  Speaker 1: don't try to.
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  Speaker 2: Use your intelligence to overpower the market. It's like swimming upstream.
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  Speaker 1: You're going to derail.
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  Speaker 2: It don't matter how smart you are, how intelligent you
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  Speaker 2: think you are. You're not going to beat the market.
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  Speaker 2: If the market is going against you, call it quits,
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  Speaker 2: get out, retreat, and come back and fight another day.
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  Speaker 2: But the emotional attachment to trading is something that I
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  Speaker 2: think is very dangerous and will end up costing you
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  Speaker 2: a lot of money.
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  Speaker 3: And even if you are right, it is very costly
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  Speaker 3: to be right and be in the wrong direction. I
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  Speaker 3: know MicroStrategy had a little bump in, A lot of
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  Speaker 3: the micro strategy wars, like, hey, I told you it
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  Speaker 3: was going to come back. I'm like, it's still down
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  Speaker 3: from 543. It's at 142. I want Saylor to do well,
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  Speaker 3: but he's fighting a fight against a system who does
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  Speaker 3: not like him and who is not in favor of him.
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  Speaker 3: That's a major reason why the stock is down that much.
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  Speaker 3: A 3% or 8% bump doesn't justify the fall from 543.
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  Speaker 3: So be mindful. And the other part is, This is
• 6:04
  Speaker 3: true with me and even Apple and Microsoft. Well, not
• 6:08
  Speaker 3: so much Apple and Microsoft because they do care. The
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  Speaker 3: equities don't care about you, though. I don't care how
• 6:13
  Speaker 3: much of a fanboy you are of a stock or equity.
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  Speaker 1: I don't care.
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  Speaker 3: I don't care. You got preferred shares.
• 6:21
  Speaker 1: I don't care.
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  Speaker 3: Can't borrow against them.
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  Speaker 1: Don't matter. Stock will be fine. So. Yes, sir. All right.
• 6:33
  Speaker 1: What about trading in tough markets?
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  Speaker 3: How do you survive that? A, you have to know
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  Speaker 3: what your, let's say, profit factor is. So for every
• 6:45
  Speaker 3: dollar you put in, how much you're getting out. I
• 6:47
  Speaker 3: still think you have to record every trade because a
• 6:50
  Speaker 3: lot of people are over trading and don't even know it.
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  Speaker 3: Like for me, I'll tell everybody in Red Panda only
• 6:56
  Speaker 3: trade the American Open, which is 830 Central to 930.
• 6:58
  Speaker 3: Then I get a bunch of reports from 1030 to 1230. Hey,
• 7:02
  Speaker 3: what's going wrong with my trading? I 830 to 930.
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  Speaker 3: And then the American closes the window that you can
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  Speaker 3: trade because once you go into that lunchtime hour, that's
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  Speaker 3: when a lot of the algos and the bots kick
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  Speaker 3: on and smaller funds are playing manipulation games allegedly with
• 7:17
  Speaker 3: the market that erodes your edge. So and to be
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  Speaker 3: very true, I don't want to be callous in my answer.
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  Speaker 1: I don't think this market is tough.
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  Speaker 3: So if you're not trading well in a market where
• 7:32
  Speaker 3: they're making sure that the NASDAQ goes up and the
• 7:35
  Speaker 3: S & P goes up and even the Russell goes
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  Speaker 3: up and then the VIX has been suppressed. Crude is up.
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  Speaker 3: I don't think it's been that tough. I think you
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  Speaker 3: just need to find one or two things to trade that,
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  Speaker 3: you know, like the back of.
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  Speaker 1: Your hand to make it easier for you. Like the
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  Speaker 1: last part, prime example.
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  Speaker 3: The single stock futures came out. You haven't heard me
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  Speaker 3: talk about trading them one time. I don't want to
• 8:05
  Speaker 3: trade Tesla individually. Like the most important thing to do
• 8:09
  Speaker 3: is keep your focus on the main thing. So mine
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  Speaker 3: is always will be ESCB NASDAQ debt. Like I'm not
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  Speaker 3: moving out of sight of the matrix. It doesn't mean
• 8:20
  Speaker 3: I don't watch the pricing. but I think too many
• 8:22
  Speaker 3: people hop from asset to asset and then wonder, like
• 8:26
  Speaker 3: we do market Mondays, every Monday, you don't see us
• 8:29
  Speaker 3: get on Monday. And then like, now it's Monday's cooking
• 8:31
  Speaker 3: show Monday, mozzarella with Ian and Rashad and Troy. No,
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  Speaker 3: keep the main thing, the fucking main thing. And you're
• 8:39
  Speaker 3: going to have FOMO if people catch a trade elsewhere,
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  Speaker 3: but make sure your numbers are so big and you know,
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  Speaker 3: their numbers like the back of your hand. So you
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  Speaker 3: don't get FOMO from trading the two to four assets
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  Speaker 3: that you know. Um, Like the back of your hand
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  Speaker 3: and you'll be good.
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  Speaker 1: Momo, it's time for 15 for you. Six out. Hey,
• 8:55
  Speaker 1: I told y'all, boy, it was finna drop. Shout out
• 8:58
  Speaker 1: to Baka, TV Gucci. Real six out. Hey, I need
• 9:04
  Speaker 1: that Don Toliver collab.
• 9:05
  Speaker 3: I know y'all been to da-da-da-da-da.
• 9:08
  Speaker 1: He brought him out. He brought him out in Toronto.
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  Speaker 3: End of your plea.
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  Speaker 1: Yeah.
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  Speaker 4: I'm kind of with you. I don't know if this
• 9:17
  Speaker 4: is a tough trading market per se. I always like
• 9:20
  Speaker 4: to tell people, especially for Market Monday viewers, we were
• 9:24
  Speaker 4: here in 2022 when it was, hey, market down again,
• 9:29
  Speaker 4: market down again, and still were able to navigate through it,
• 9:33
  Speaker 4: educate around it. We're at nearly all-time highs for most
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  Speaker 4: of the indexes.
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  Speaker 1: You know what I mean?
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  Speaker 4: And any times of like pullbacks or drawdowns, I always say, look,
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  Speaker 4: if it gets volatile, I'm going back to indexes and ETFs.
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  Speaker 1: Yeah. I'm going back to just safety and being in
• 9:49
  Speaker 1: the overall theme, right?
• 9:50
  Speaker 4: There might be some great buying opportunities there, but less individuals,
• 9:55
  Speaker 4: more ETS, more indexes.
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  Speaker 1: Yeah.
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  Speaker 3: It's an easy win.
• 9:59
  Speaker 1: Yeah. it's an easy win. And give yourself time as well. Yes.
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  Speaker 1: For sure. That's probably the most important thing.
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  Speaker 3: Even on intraday trading, the worst feeling of all is
• 10:11
  Speaker 3: to lose on a Friday, knowing if you would have
• 10:14
  Speaker 3: had another 20 minutes of trade would have panned out
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  Speaker 3: in your favor. So even for my intraday traders, give
• 10:20
  Speaker 3: yourself enough time and look at a high enough time
• 10:23
  Speaker 3: frame to make sure that it can work out. And
• 10:27
  Speaker 3: that's why I say if you trade the American Open
• 10:28
  Speaker 3: and the American Close, if you lose in the American Open,
• 10:31
  Speaker 3: at least you can salvage some of it. But time
• 10:33
  Speaker 3: on your side is really important.
• 10:35
  Speaker 1: We were in a.
• 10:35
  Speaker 4: Shout out to G, my brother. He did a technical
• 10:38
  Speaker 4: analysis class over there with the group chat. And we
• 10:42
  Speaker 4: were watching Micron on Friday. And if you watch Micron...
• 10:47
  Speaker 4: the last 30 minutes of the day on Friday, it traded.
• 10:52
  Speaker 4: It was at $ 1, 102. By 3.59, it was at $ 1.
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  Speaker 3: 17.
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  Speaker 4: Just that quick 15-minute move, we were like, oh, my gosh,
• 11:02
  Speaker 4: what is this going to look like? And then you
• 11:03
  Speaker 4: got to wait. Obviously, it's a holiday on Monday. Now
• 11:06
  Speaker 4: you don't see it, but the adrenaline of it is
• 11:10
  Speaker 4: like understanding cars, understanding movement averages, all the things. it becomes,
• 11:15
  Speaker 4: it almost becomes like something that's enjoyable to watch because
• 11:18
  Speaker 4: you did the homework, you did the research, now you're
• 11:20
  Speaker 4: watching the benefits of it. You've come to Market Mondays,
• 11:22
  Speaker 4: you've taken all the knowledge, you've incorporated all of it,
• 11:25
  Speaker 4: and now you're watching these things come to fruition.
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  Speaker 1: But like you said, time, time, time, all the way up.
• 11:31
  Speaker 1: That's a fact.
• 11:32
  Speaker 2: And on Wednesday, we actually have a guest on Blackout.
• 11:36
  Speaker 2: We have Ashley Baroness. So I follow her on Instagram.
• 11:40
  Speaker 2: She's super dope and very thoughtful thoughtful commentary, a lot around, um,
• 11:47
  Speaker 2: race dynamics in America. So it's going to be an
• 11:50
  Speaker 2: interesting conversation. We're going to talk about why I think
• 11:52
  Speaker 2: WhatsApp is better than Instagram. And we want to talk about,
• 11:56
  Speaker 2: we got to talk about Nas too. Maybe at the
• 11:58
  Speaker 2: end of the show, if we got some time.
• 12:00
  Speaker 1: Yeah.
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  Speaker 4: We got to talk about that. Happy birthday in advance
• 12:03
  Speaker 4: to Esco. His, uh, his birthday is, uh, is this
• 12:06
  Speaker 4: week or early next week. So shout, shout to Esco.