Latest / Earn Your Leisure / The Psychology Behind Winning Trades & Stop Loss Secrets

Transcript

The Psychology Behind Winning Trades & Stop Loss Secrets · Earn Your Leisure

• 0:01
  Speaker 1: This episode is brought to you by P and C Bank.
• 0:03
  Speaker 1: A lot of people think podcasts about work are boring,
• 0:06
  Speaker 1: and sure they definitely can be, but understanding a professionals
• 0:10
  Speaker 1: routine shows us how they achieve their success little by little,
• 0:14
  Speaker 1: day after day. It's like banking with P and C Bank.
• 0:18
  Speaker 1: It might seem boring to save, plan and make calculated
• 0:21
  Speaker 1: decisions with your bank, but keeping your money boring is
• 0:24
  Speaker 1: what helps you live or more happily fulfilled life. P
• 0:27
  Speaker 1: and C Bank Brilliantly Boring since eighteen sixty five. Brilliantly
• 0:32
  Speaker 1: Boring since eighteen sixty five is a service mark of
• 0:35
  Speaker 1: the PNC Financial Service Group, Inc. P and C Bank
• 0:39
  Speaker 1: National Association Member FDIC.
• 0:43
  Speaker 2: So starting off with trading, what's a futures trading tip
• 0:47
  Speaker 2: of the week.
• 0:50
  Speaker 3: I don't know if I went over this in for
• 0:52
  Speaker 3: detail before, but to my futures traders, having too type
• 0:58
  Speaker 3: of a stop loss is almost worse than having no
• 1:02
  Speaker 3: stop loss at all. A lot of times when we're
• 1:05
  Speaker 3: looking to get into a move, we're looking to protect
• 1:07
  Speaker 3: our account, and both of you can speak at us
• 1:10
  Speaker 3: from the options perspective, but sometimes you can have a
• 1:14
  Speaker 3: stop loss that is so tight that you don't even
• 1:15
  Speaker 3: give yourself room to be able to let the move
• 1:18
  Speaker 3: fully mature.
• 1:20
  Speaker 1: So I know somebody.
• 1:21
  Speaker 3: Last Friday who probably miss out on like sixty grand
• 1:25
  Speaker 3: having a stop loss at twelve hundred bucks.
• 1:27
  Speaker 1: Like, I get it.
• 1:28
  Speaker 3: If you're trading a bunch of contracts, you want to
• 1:30
  Speaker 3: have protection, but you need to put your stop loss
• 1:33
  Speaker 3: in places where the brokerages and competition won't hit your
• 1:37
  Speaker 3: liquidity sweep zones and stop low zones and hunt there.
• 1:41
  Speaker 3: And also too, like we were talking to one of
• 1:43
  Speaker 3: our good friends before this, you have to know the
• 1:45
  Speaker 3: exit before you get in.
• 1:47
  Speaker 1: So if you're going to lose.
• 1:48
  Speaker 3: Six thousand bucks but the upside is sixty grand, why
• 1:53
  Speaker 3: cut it off.
• 1:53
  Speaker 1: At twelve fifty?
• 1:56
  Speaker 3: You go into it knowing put this in chat, go
• 1:58
  Speaker 3: into it knowing what your maximum loss will be and
• 2:01
  Speaker 3: what your maximum profit target will be. But having too
• 2:04
  Speaker 3: tight of a stop loss, damn, there is worse than
• 2:06
  Speaker 3: having those stop loss at all.
• 2:09
  Speaker 1: It's a terrible feeling, it really is. It's a terrible feeling.
• 2:13
  Speaker 3: For to go down and then go where you knew
• 2:15
  Speaker 3: what it was going to go.
• 2:16
  Speaker 1: Oh my god. Yeah, it's tough. I think that's why
• 2:21
  Speaker 1: a part of that plan we always talk about having
• 2:22
  Speaker 1: a plan is figure out what that threshold is. I
• 2:26
  Speaker 1: know some people don't have a strong threshold, so it
• 2:29
  Speaker 1: might be a twenty percent pullback, but especially when you're
• 2:33
  Speaker 1: talking about equities, that's a I mean, that's a correction, right, Yeah.
• 2:37
  Speaker 1: When you talking about futures and options, that could be
• 2:39
  Speaker 1: that's a minute, right like that that could be in
• 2:42
  Speaker 1: five minutes, and so you got to take that into account.
• 2:45
  Speaker 1: How voltile that these assets moved or these derivatives move,
• 2:50
  Speaker 1: and so twenty percent it feels like all right, depending
• 2:53
  Speaker 1: on the company, that feels like it's safe. But you know,
• 2:55
  Speaker 1: like I've said, I've depended on the company and video
• 2:58
  Speaker 1: I've done. I've taking a stop loss of because I
• 3:01
  Speaker 1: understand the company, I understand how the market moves now,
• 3:04
  Speaker 1: I understand the long term vision for it, which is
• 3:06
  Speaker 1: why we always buy time. So if you don't have
• 3:08
  Speaker 1: time in it, right and you're having these you're gonna
• 3:11
  Speaker 1: lose out. So putting that ThReD I like, and I
• 3:14
  Speaker 1: know you we've gone back and forth. When I'm doing
• 3:17
  Speaker 1: an option called thirty to forty, I feel like is
• 3:23
  Speaker 1: a safe space now depends Like I said, depend on
• 3:26
  Speaker 1: the company. That'll change my company. Probably. I've changed that
• 3:31
  Speaker 1: for Microsoft. I've changed that for but like super Micro, right,
• 3:36
  Speaker 1: once it hits a threshold, I gotta go, I gotta go.
• 3:40
  Speaker 1: I don't love right. I'm not in love with the
• 3:44
  Speaker 1: option trade right. It makes sense and I feel like
• 3:47
  Speaker 1: it can make money. But if it's not making money,
• 3:48
  Speaker 1: then there's there's another opportunity where we can put that capital.
• 3:51
  Speaker 1: So have a plan before you enter any position. We
• 3:54
  Speaker 1: can say it, but most people still don't do it right.
• 3:57
  Speaker 1: Like we talked about our close friend made money and
• 4:01
  Speaker 1: now let's trying to figure out what should I do.
• 4:03
  Speaker 1: I have to know the exit.
• 4:04
  Speaker 3: You got to have a planter yep, because you can't
• 4:07
  Speaker 3: figure out how to assemble a plane on the way down.
• 4:10
  Speaker 3: I know they love to say that in Silicon Valley,
• 4:12
  Speaker 3: like figure out how to build a plane on the
• 4:13
  Speaker 3: way down.
• 4:14
  Speaker 1: It doesn't work that way in our life.
• 4:16
  Speaker 3: You're gonna crash out every time. And also to even
• 4:18
  Speaker 3: with the asset they were trading the ees Mini, the
• 4:21
  Speaker 3: s and P five hundred, I'm like, if you knew
• 4:23
  Speaker 3: the market was falling, why have such a tight stop
• 4:26
  Speaker 3: And we've been falling.
• 4:27
  Speaker 1: But it's fear. It's fear.
• 4:29
  Speaker 3: A lot of it is not knowing your entry, not
• 4:32
  Speaker 3: knowing your exit when you're going to profit. And then
• 4:36
  Speaker 3: the other part that isn't talked about enough is you're
• 4:38
  Speaker 3: doing so many different things when you're trading, you end
• 4:41
  Speaker 3: up getting confused on how this is going to pan out.
• 4:43
  Speaker 3: That's why I say trade one way in, one way
• 4:45
  Speaker 3: out all the time, so you can have a huge
• 4:49
  Speaker 3: data set to know what the outcome is going to be.
• 4:52
  Speaker 1: There's that psychology, and we were like talking about it before,
• 4:54
  Speaker 1: but it's that psychology. The fear comes because of the
• 4:57
  Speaker 1: lack of education and preparation, which is underst Annibal. What
• 5:02
  Speaker 1: is the other side of that? When you see people win, right,
• 5:04
  Speaker 1: Like if you're like you're watching people, especially when you
• 5:07
  Speaker 1: watch people on social media, it's like, man, they've have
• 5:09
  Speaker 1: percentage gains, they've had percentage gains. Psychologically, do you think
• 5:14
  Speaker 1: that works as a detriment or is it more advantage
• 5:17
  Speaker 1: to say, oh I should be involved. I often wonder
• 5:20
  Speaker 1: like how people do that?
• 5:23
  Speaker 3: Maybe both were shot?
• 5:24
  Speaker 1: What you think?
• 5:26
  Speaker 2: Yeah, for sure, I think it psychologically definitely plays a
• 5:29
  Speaker 2: bar as far as investing is concerned, because no one
• 5:32
  Speaker 2: wants to lose money, and then no one wants to
• 5:35
  Speaker 2: have somebody make more money than them. So it's a
• 5:38
  Speaker 2: catch twenty two because you don't want to lose money,
• 5:42
  Speaker 2: but then the risk of making money, so you you
• 5:46
  Speaker 2: constantly kind of you know.
• 5:49
  Speaker 3: Run ways yeap, Yeah, keep your eyes.
• 5:52
  Speaker 1: On your own paper. I think that that's a bar
• 5:55
  Speaker 1: right there, the risk of making money, like you already
• 5:58
  Speaker 1: that the rest of making money, which is like damn,
• 6:03
  Speaker 1: that just sounded crazy just.
• 6:04
  Speaker 3: Now, but that's way I because you're seeing other people
• 6:08
  Speaker 3: post their games but not always their losses. And on
• 6:11
  Speaker 3: top of that, when you start to have too much comparison,
• 6:15
  Speaker 3: that's when the fomo and the overtrading and the over
• 6:18
  Speaker 3: leveraging really kicks in. It really kicks in. Just focus
• 6:23
  Speaker 3: on your race.
• 6:24
  Speaker 1: Earners, what's up. You ever walk into a small business
• 6:27
  Speaker 1: and everything just works like the checkout is fast, the
• 6:30
  Speaker 1: seats are digital, tipping is a breeze, and you're out
• 6:34
  Speaker 1: the door before the line even builds. Odds are they're
• 6:37
  Speaker 1: using Square? We love supporting businesses that run on Square
• 6:41
  Speaker 1: because it just feels seamless, whether it's a local coffee shop,
• 6:44
  Speaker 1: a vendor at a pop up market, or even one
• 6:47
  Speaker 1: of our merch partners. Square makes it easy for them
• 6:50
  Speaker 1: to take payments, manage inventory, and run their business with confidence,
• 6:54
  Speaker 1: all from one simple system. One of the things we
• 6:57
  Speaker 1: love most is seeing neighborhood businesses level up. Disnes's West
• 7:01
  Speaker 1: Indianspired writing our community that started with a small takeout counter.
• 7:05
  Speaker 1: Now with Square they've been able to expand into a
• 7:08
  Speaker 1: full sit down restaurant and even started catering events across
• 7:12
  Speaker 1: the city. That's the kind of growth that inspires us,
• 7:15
  Speaker 1: and it's powered by Square. Square is built for all
• 7:18
  Speaker 1: types of businesses, from the corner bagel shop that turned
• 7:21
  Speaker 1: into a local chain, to the specialty market with thousands
• 7:24
  Speaker 1: of unique items, to the stylists who's been holding you
• 7:27
  Speaker 1: down for years. If you're a business owner or even
• 7:30
  Speaker 1: just thinking about launching something soon, Square is hands down
• 7:34
  Speaker 1: one of the best tools out there to help you start,
• 7:37
  Speaker 1: run and grow. It's not just about payments, it's about
• 7:40
  Speaker 1: giving you time back so you can focus on what
• 7:43
  Speaker 1: matters most ready. To see how Square can transform your business,
• 7:47
  Speaker 1: visit Square dot com, backslash go, backslash eyl to learn
• 7:51
  Speaker 1: more that Square dot com, backslash go backslash EYL, don't wait,
• 7:57
  Speaker 1: don't hesitate. Let Square handle the back end so you
• 8:00
  Speaker 1: can keep pushing your vision forward