PROFITABLE TRADING: It's Just 2nd Grade Math (No One Tells You This)
Summary
TLDRIn this video, Jeremy New shares his insights on trading, emphasizing that wealth is built through consistent application of simple strategies. He discusses his experiences trading Tesla and Apple, highlighting the importance of understanding market volatility and maintaining a strong mental edge. Jeremy reflects on the psychological aspects of trading, including how to handle losses and the significance of self-awareness. He also talks about the role of physical activity in achieving a calm mindset for trading and the need for discipline and consistency in both trading and life. The conversation encourages traders to study their patterns and adopt a contrarian mindset to succeed in the markets.
Takeaways
- π‘ Wealth is built through consistent application of simple strategies.
- π Trading strategies will work sometimes and not others; awareness is key.
- π§ A strong mental edge is crucial for successful trading.
- πββοΈ Physical activity helps maintain a calm mindset for trading.
- π Avoid trading on days that have historically been unprofitable.
- π Study your trading patterns to improve performance.
- πͺ Discipline in trading reflects discipline in life.
- π€ Embrace volatility as an opportunity, not a threat.
- π Use systematic approaches and self-talk to manage trades.
- π Think like a contrarian to find opportunities in the market.
Timeline
- 00:00:00 - 00:05:00
The speaker emphasizes that wealth is achieved through consistent application of simple strategies, akin to second-grade math. They discuss the importance of understanding market fluctuations and the inevitability of losses, advocating for a mindset that accepts losses as part of the trading journey.
- 00:05:00 - 00:10:00
Jeremy New, a returning guest, shares insights gained from years of trading, particularly focusing on Tesla. He reiterates the formula for success in trading, highlighting the potential for significant profits through consistent strategies and understanding market movements.
- 00:10:00 - 00:15:00
The conversation shifts to the mental aspects of trading, with Jeremy discussing the importance of a mental edge and the need for self-awareness in trading decisions. He emphasizes the significance of studying one's own trading patterns and learning from losses to improve future performance.
- 00:15:00 - 00:20:00
Jeremy reflects on the importance of discipline and the mental game in trading. He shares techniques for managing emotions during trading, including the practice of self-affirmation and maintaining a positive mindset, especially when faced with losses.
- 00:20:00 - 00:25:00
The discussion covers the importance of physical well-being in trading performance. Jeremy explains how a rigorous physical routine helps him maintain a calm and focused mindset while trading, allowing him to make better decisions and manage his energy effectively.
- 00:25:00 - 00:31:49
Finally, Jeremy shares his views on the traits that separate successful traders from others, emphasizing the need for a contrarian mindset and the ability to adapt to changing market conditions. He encourages aspiring traders to focus on personal growth and discipline as key factors for success.
Mind Map
Video Q&A
What is the key to wealth according to Jeremy New?
Wealth is second grade math repeated consistently.
What does Jeremy do when he experiences back-to-back losses?
He takes a break and reflects on the losses.
What is Jeremy's primary trading focus?
He primarily trades Tesla.
How does Jeremy deal with the mental aspects of trading?
He emphasizes the importance of a strong mental edge and self-awareness.
What does Jeremy say about volatility in trading?
He views volatility as an opportunity for traders.
What is Jeremy's approach to trading on Fridays?
He avoids trading on Fridays as he has found them to be unprofitable.
What is the significance of physical activity for Jeremy?
It helps him maintain a calm and relaxed mindset for trading.
What does Jeremy suggest for traders who fear losing capital?
He advises them to build their capital and gain experience.
What is one principle Jeremy believes is important for traders?
To study and think like a contrarian.
How does Jeremy manage his trades?
He uses a systematic approach with specific rules and self-talk.
View more video summaries
- 00:00:00wealth is second grade math repeated
- 00:00:02consistently. And so if you can just do
- 00:00:04one thing and just kind of understand
- 00:00:06that this is the formula for really
- 00:00:08really incredible success and just
- 00:00:10implement that formula over and over and
- 00:00:12over no matter what incredible tipping
- 00:00:14points will happen at some stage. Market
- 00:00:16goes up, market goes down, market goes
- 00:00:17sideways. You can have a strategy,
- 00:00:20doesn't matter what the strategy is, it
- 00:00:21will work sometimes and it will not work
- 00:00:23sometimes. That's always the case. And
- 00:00:26once you are fully fully aware of that,
- 00:00:28you start implementing it. And to your
- 00:00:30point, when it's not going good, like
- 00:00:33there's definitely times where I have
- 00:00:35back-to-back losses, I just dip out for
- 00:00:36a little bit, right? I'm like, "Okay,
- 00:00:38cool. I lost." And that's what's amazing
- 00:00:40is I admitted to myself, I lost today.
- 00:00:43Someone outplayed me. I played poker. I
- 00:00:46played a sport and I lost. All right,
- 00:00:48folks. Here we are in Trading Up. We've
- 00:00:49got a familiar face in the house. If
- 00:00:51you've been on the channel for a long
- 00:00:53time, we've got Jeremy New back
- 00:00:55after I don't know how many years it is.
- 00:00:58It was 2018. So, mate, welcome back to
- 00:01:00the show. I'm back 7 years later, man.
- 00:01:04Yeah, it's it's it's a crazy long time.
- 00:01:06I I actually can't believe it's been
- 00:01:07that long that I've been doing this
- 00:01:08thing and that that you had to wait to
- 00:01:11get you back on. But, um, it's good to
- 00:01:12have you on. and what we want to do. And
- 00:01:15I think for somebody who's been in the
- 00:01:16industry for so long, you must be full
- 00:01:18of insights, many more than what you had
- 00:01:217 years ago and especially going through
- 00:01:22the pandemic and all that sort of stuff.
- 00:01:24Are you still just trading Tesla or
- 00:01:26Yeah, Tesla, man. Exactly. And it is for
- 00:01:29me, I'm trying to capture like the thing
- 00:01:31I tell myself and I tell a lot of people
- 00:01:33over and over and over, wealth is second
- 00:01:35grade math repeated consistently. And so
- 00:01:37if you can just do one thing and just
- 00:01:39kind of understand that this is the
- 00:01:40formula for really really incredible
- 00:01:42success and just implement that formula
- 00:01:45over and over and over no matter what
- 00:01:47incredible tipping points will happen at
- 00:01:49some stage. So for example if you
- 00:01:52capture three points of movement on a
- 00:01:55thousand
- 00:01:56shares of any stock ever but in my case
- 00:01:59right I trade Tesla a lot. So, a
- 00:02:01thousand shares on three points of
- 00:02:03movement captured 200 days a
- 00:02:05year is
- 00:02:08$600,000, right? Like that's the math.
- 00:02:11And so, the thought process simply like,
- 00:02:12okay, well, if we can whittle it down
- 00:02:14and make it that easy, is like, is that
- 00:02:16repeatable? Is that believable? Is that
- 00:02:18doable? It's like, yeah, Tesla moves $19
- 00:02:21a day on average. So, I was like, I
- 00:02:23think I can capture $3 of that movement
- 00:02:26200 days a year net. And then the great
- 00:02:30part about that, as you know, is that
- 00:02:32then it starts just to build. Like if
- 00:02:33you do a,000 shares, you can do 2,000
- 00:02:36shares or 3,000 shares because the
- 00:02:37process doesn't really ever
- 00:02:39shift. And is there anything else that
- 00:02:41sort of makes Tesla stand out from
- 00:02:43anything else you've traded in the past?
- 00:02:45I I did trade Apple uh exclusively for
- 00:02:48two years, 2011 2012. I I exclusively
- 00:02:52traded Apple because at the time, right,
- 00:02:54Apple's a lot more volatile than it is
- 00:02:56now. Uh it was like four splits ago. So
- 00:02:59the market cap was a lot smaller. I
- 00:03:01still think it was probably one of the
- 00:03:02largest companies in the world at the
- 00:03:04time. But anyway, I think the volatility
- 00:03:08uh number one. So I like volatility. A
- 00:03:10lot of people are scared of volatility.
- 00:03:12But volatility for a trader who that's
- 00:03:14all your audience, right? Our audiences
- 00:03:15are traders, people that love the
- 00:03:17markets. Like volatility is awesome.
- 00:03:18That's how you get paid. That's what
- 00:03:20makes it exciting. That's what makes it
- 00:03:22fun. That's what makes every day
- 00:03:23different is the volatility game. M and
- 00:03:26and what about like I mean have you have
- 00:03:27you had any sort of strong beliefs that
- 00:03:29have changed across the course of you
- 00:03:31know when you were trading Apple back in
- 00:03:33the day to to now around around trading
- 00:03:35I'm starting to tap into more ethereal
- 00:03:37right the more implementation that
- 00:03:40individuals do mentally that's kind of
- 00:03:43like where I'm at at this stage of my
- 00:03:44life where I understand that the edge
- 00:03:47that I need is a mental edge because I
- 00:03:50understand the markets I know how they
- 00:03:51move they go up or down great my
- 00:03:53ultimate question is what's the absolute
- 00:03:55perfect trade that I need to place and
- 00:03:57what does that trade look like? What
- 00:03:59does the situation look like? What does
- 00:04:00the setup look like? Study that, know
- 00:04:02that, get really clear, have a very,
- 00:04:04very strong mental edge and think and
- 00:04:07grow rich. Right? That's the name of the
- 00:04:09book. The name of the book isn't work
- 00:04:11harder and make more money. It's think
- 00:04:12and grow rich. So, I'm spending a lot of
- 00:04:14time in the mental game of this, man.
- 00:04:16That's really the big big big shift.
- 00:04:18You've probably heard me talking about
- 00:04:19trading with confidence. And honestly,
- 00:04:21it's a lot easier when you're not
- 00:04:22risking your own money. That's why I
- 00:04:24wanted to mention Blue Guardian. They
- 00:04:25offer instant funding or a challenge to
- 00:04:26get you started and up to 400K in
- 00:04:28funding, weekly payouts, and a 90%
- 00:04:30profit split. And they've already paid
- 00:04:32out over 15 million to traders around
- 00:04:34the world. Plus, they're sponsoring
- 00:04:36Birmingham City FC and Chris Eubank Jr.
- 00:04:38So, you know, they're serious about
- 00:04:40backing performance. Check them out at
- 00:04:42bluegardian.com or check the link in the
- 00:04:44description. Yeah, I mean, and it seems
- 00:04:46I mean, that is the crux of it, right?
- 00:04:48And a lot of people struggle with that
- 00:04:50and they just sort of veer away from it
- 00:04:53and think I'll just get another
- 00:04:54strategy. It's the strategy that'll
- 00:04:56that'll make the money. How how did you
- 00:04:58sort of like I suppose draw a line in
- 00:05:00the sand and go no it is the mental side
- 00:05:03that I need to really concentrate on and
- 00:05:05maybe any sort of techniques that you're
- 00:05:07using here to to get you over those um
- 00:05:10days where it's just not not working.
- 00:05:13The answer Yeah, the answer was I
- 00:05:15studied it, right? Like I removed my ego
- 00:05:17for a second and I said, "What? Why am I
- 00:05:19trading?" And I think a lot of people
- 00:05:20probably should answer that question
- 00:05:22like why am I trading? And the answer is
- 00:05:23you're trading to make money. So if
- 00:05:25you're not making money, you're doing
- 00:05:27something wrong. That's the good news.
- 00:05:29It's a very very easy formula. If you're
- 00:05:31not making money, you're doing something
- 00:05:33incorrect. And the ability for me to sit
- 00:05:36back and go, "All right, well, here's
- 00:05:38the truth is it's just me." You know,
- 00:05:40I'm not like there's no team. There's no
- 00:05:42group. Like I I'm trading my money. It's
- 00:05:44my capital. like I'm in it and no one is
- 00:05:47making these decisions for me. So I had
- 00:05:50to shine all the light internally for a
- 00:05:53second and say if I want to make money
- 00:05:55trading, what am I willing to do? And I
- 00:05:58started studying me. I started studying
- 00:06:00like what I was doing and and the
- 00:06:02variables and the changes and the shifts
- 00:06:04and the updates. That's how you become
- 00:06:08extremely extremely skilled at the the
- 00:06:10awareness that it's all it's all a
- 00:06:13mental shift, man. Because the strategy
- 00:06:15is yeah the market goes up market goes
- 00:06:18down market goes sideways you can have a
- 00:06:20strategy doesn't matter what the
- 00:06:21strategy is it will work sometimes and
- 00:06:23it will not work sometimes that's always
- 00:06:26the case and once you are fully fully
- 00:06:28aware of
- 00:06:29that you start implementing it and to
- 00:06:32your point when it's not going good like
- 00:06:35there's definitely times where I have
- 00:06:37backto-back losses on Tesla or backto
- 00:06:39backtoback losses on Tesla I just dip
- 00:06:41out for a little bit right I'm like okay
- 00:06:43cool I lost And that's what's amazing is
- 00:06:45I admitted to myself, I lost today.
- 00:06:48Someone outplayed me. I played poker. I
- 00:06:50played a sport and I lost. The game was
- 00:06:53over. The fourth quarter finished and I
- 00:06:56didn't have enough points. The other
- 00:06:58team won. Cool. That happens a lot in
- 00:07:01life. And there's a big difference
- 00:07:03between losing and failing, right?
- 00:07:05Everyone's going to have losses.
- 00:07:06Everyone's going to endure the pain of
- 00:07:10losing. But when you do lose, learn from
- 00:07:12it. Study it. understand it, tweak,
- 00:07:14adjust, adapt. I just started doing that
- 00:07:16all the time. As every time I lost, I
- 00:07:19would spend longer the next day or the
- 00:07:20day after studying those losses,
- 00:07:22figuring out what they looked like, why
- 00:07:24happened, what I did, trying to tweak
- 00:07:27and adjust, and then go forward next
- 00:07:29couple of weeks, really honed in on the
- 00:07:32realization of why I lost, what caused
- 00:07:34that loss, tweaking and updating and
- 00:07:36shifting that, and then implementing it
- 00:07:38for for future trades. And and thinking
- 00:07:41back, it was quite kind of interesting
- 00:07:42interesting. So thinking back to like a
- 00:07:45a losing streak of maybe three trades,
- 00:07:46right? So three trade loss on a three
- 00:07:49trade losing streak. Would you be seeing
- 00:07:52like common elements i.e. it was the
- 00:07:55strategy failed just three times in a
- 00:07:57row and it just I executed flawlessly or
- 00:08:00was it more one of them was me, one of
- 00:08:03them was a strategy and the other one
- 00:08:05was a combination of both. Did you have
- 00:08:07any sort of like, you know, aha moments
- 00:08:09there where it's like, okay, well,
- 00:08:10actually, this is something I really
- 00:08:11need to work on and and if I can fix
- 00:08:13that, then maybe it won't be a three
- 00:08:15trade losing streak. It'll become a a
- 00:08:16one trade losing streak and I'll win the
- 00:08:18next two trades or I won't even take
- 00:08:20them. I won't even take them. That's
- 00:08:22usually what I ended up finding out.
- 00:08:24That's that's what I ended up finding
- 00:08:25out. So, for example, doing a lot of
- 00:08:27this research, I whittle down almost
- 00:08:30unequivocally my most profitable days
- 00:08:33and my most profitable times of the day
- 00:08:35and my mo my most unprofitable times of
- 00:08:37the day. So, I am a coin flipper in the
- 00:08:41first 30 minutes. Like there I have
- 00:08:44almost no discernable edge in the first
- 00:08:4530 minutes. I've always wanted to, but I
- 00:08:47almost I almost I'm like 50/50. So,
- 00:08:51there's no real edge in 50/50. Unless
- 00:08:53you win more than you lose, you're not
- 00:08:55going to have an edge. Now, I generally
- 00:08:56do win more than I lose, which is nice.
- 00:08:59But Fridays, Cam, I always lost on
- 00:09:04Fridays. Meaning, like net net, as I go
- 00:09:06through all of my trades, Fridays were
- 00:09:08nonprofitable days. So, guess what? I
- 00:09:11started doing not trading Fridays. Like,
- 00:09:14simple as that. Just stop doing it. Um,
- 00:09:17Monday mornings, very profitable.
- 00:09:20Tuesdays, decently profitable. Wednesday
- 00:09:22is my most profitable day of the week.
- 00:09:25And so I really really like, okay, cool.
- 00:09:27Most of my money I'm going to make on
- 00:09:28Wednesday and Thursday. That's why I've
- 00:09:30learned the majority of my money and the
- 00:09:34most profitable day trades I'm going to
- 00:09:35make according to all my statistics is
- 00:09:38going to be between the hours of 11 and
- 00:09:402 Eastern. So I started whittling
- 00:09:42everything down and to your point, just
- 00:09:44doing less and less and less because
- 00:09:46ultimately I was noticing the certain
- 00:09:49patterns. And that's what we have to do
- 00:09:50in trading is we have to look at the
- 00:09:51patterns of our trading because yeah,
- 00:09:54sometimes with the strategy and man, if
- 00:09:56I implement the strategy flawlessly and
- 00:09:58it just did not work, I never cared and
- 00:10:00I never beat myself up over those trades
- 00:10:02and it's all good. But 95% of the time
- 00:10:05it wasn't the case. It was me not doing
- 00:10:09prep, not putting the plan on the chart
- 00:10:13the night before and then the morning of
- 00:10:16not reading that plan and following
- 00:10:17through on the plan. It was it was
- 00:10:19always something that was me based. But
- 00:10:22the five times 5% of the time that took
- 00:10:24the trade and it was literally the
- 00:10:26strategy and the trade just did not
- 00:10:27work. Cool. I was always fine with that.
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- 00:10:53is click the trading up link in the
- 00:10:55description below. So, so the other
- 00:10:56thing like I suppose with not taking
- 00:10:58trades, you know, obviously not trading
- 00:11:00Friday or not taking trades uh that you
- 00:11:02realized were hurting your P&L,
- 00:11:06how do you deal with not deciding, okay,
- 00:11:08I'm not going to take this trade and
- 00:11:10then going on to see go going to see
- 00:11:12that goes on to win. It would have been
- 00:11:13a good winner. How did how do you how
- 00:11:15have you dealt with that mentally?
- 00:11:17That's the mindset of abundance, man.
- 00:11:19And I remind myself, I will say that
- 00:11:21word and I will almost literally repeat
- 00:11:24out loud verbally, I'm in a state of
- 00:11:27abundance. I'm so happy other people
- 00:11:29made money, right? I start going there
- 00:11:31because if the trade works, I get really
- 00:11:33excited because I know someone somewhere
- 00:11:36in the world won on that trade and they
- 00:11:38made money and they made income for
- 00:11:39their family. And that's what I want
- 00:11:41anyway because the law of abundance
- 00:11:43state that there can always be more than
- 00:11:45enough for everyone. So for me
- 00:11:47personally, if if I go to a restaurant
- 00:11:49and I'm eating at that restaurant and I
- 00:11:51get full, I'm not like, "Dang, but I
- 00:11:55could have gone over there and had
- 00:11:56burritos and then I could have gone over
- 00:11:57there and had more chicken." It's like,
- 00:12:00I I'm full. And so if we have enough for
- 00:12:04ourselves, the law of abundance states
- 00:12:06other people can have a lot more as
- 00:12:07well. So for me, that's what I do is I
- 00:12:09just shift into that mindset instantly
- 00:12:11that everyone's winning, everyone's
- 00:12:13having a great time, everyone else is
- 00:12:14making money, they're doing great, I'm
- 00:12:16doing great, everyone's great, and that
- 00:12:18allows me to not feel that FOMO. Nice.
- 00:12:20Nice. That's that's a nice way to do it
- 00:12:22and a nice little tip for anyone who
- 00:12:24struggles with that. Hey, um you are you
- 00:12:26are a high energy kind of guy and I
- 00:12:29guess that comes with like a lot of
- 00:12:31emotions and and maybe a lot of other
- 00:12:32people out there are kind of like you
- 00:12:34and they're thinking, I'm too high
- 00:12:36energy for trading. I need to be more
- 00:12:37calm. How do you deal with like keeping
- 00:12:39our emotions in check?
- 00:12:43Yeah. I think people if if you do feel
- 00:12:45that way and you do feel like you have a
- 00:12:47lot of energy, man, go go go do
- 00:12:49something. That's the other thing too is
- 00:12:51like for me to
- 00:12:52trade, I have a pretty rigorous physical
- 00:12:56routine. So, since our last session,
- 00:12:59like our last interview, man, 2018, like
- 00:13:0120 2019 was a life-changing year for me.
- 00:13:03Um there was a lot that I did a lot of
- 00:13:06training a lot of physical exercise and
- 00:13:08I fell into this really really
- 00:13:09interesting slippery slope of for me to
- 00:13:12trade better the better I traded
- 00:13:15generally generally stemmed from to your
- 00:13:18point earlier what type of output am I
- 00:13:20doing physically so that when I'm there
- 00:13:23I'm not like tense I'm very relaxed I'm
- 00:13:27essentially almost like a blend between
- 00:13:29tired and
- 00:13:31peaceful where I'm not really needing
- 00:13:34anything. I'm just kind of calm and
- 00:13:36relaxed because I went out and did a lot
- 00:13:38of physical exertion. So for me, man,
- 00:13:40that is a big part portion of it. And I
- 00:13:42think that again, traders, we should
- 00:13:44like we're trading to be free. We're
- 00:13:46trading to create enough money and
- 00:13:47enough income that we can probably go do
- 00:13:50whatever we want to go do at any time in
- 00:13:51the world and not have a job, not have a
- 00:13:53boss. I think that's probably why a lot
- 00:13:55of people love trading. So go do those
- 00:13:57things, right? Keep that in mind, right?
- 00:13:59Go out and actually do them. Go on runs,
- 00:14:01go on hikes, go bike, go swim. I live in
- 00:14:04Lagouna Beach, California now and I live
- 00:14:07seven miles from the ocean. So I'm down
- 00:14:10the ocean a lot. Um I run down there.
- 00:14:12I'll work out in the beach. Me and the
- 00:14:13family go to the beach. So it's like,
- 00:14:14yeah, spend time doing the things
- 00:14:17because if you start really really
- 00:14:19realizing and you look through all of
- 00:14:21your trades and you go, what were the
- 00:14:23absolute most profitable trades that I
- 00:14:26took? Why were they extremely
- 00:14:28profitable? What did they look like? and
- 00:14:29you start categorizing like your A+
- 00:14:32trades. I just primarily look for those.
- 00:14:36And if I primarily look for A+ trades,
- 00:14:38and that's almost what I take. Like
- 00:14:39today was a really, really good day in
- 00:14:41the markets for me because it was the
- 00:14:43exact same thing. I It's exactly what I
- 00:14:45wanted. Not on Tesla, but on a lot of
- 00:14:48other positions, you had really, really
- 00:14:50good gaps. And I love trading gaps. I'm
- 00:14:52a big gap trader. And if Tesla Tesla was
- 00:14:55an inside candle today because I had a
- 00:14:57great day yesterday. So great day
- 00:14:59yesterday, inside day candle today means
- 00:15:01no day trading Tesla because it's an
- 00:15:03inside day, meaning it's fully within
- 00:15:05the high and low of yesterday. So I'm
- 00:15:07allowed to trade other things if that's
- 00:15:08the case and other things were working
- 00:15:10out fantastic. So ultimately man, yeah,
- 00:15:13study, get analytical, get really really
- 00:15:15ingrained and and then understand if you
- 00:15:18start working on this consistent basis
- 00:15:20of doing the exact same thing all the
- 00:15:21time from an energetic standpoint, it
- 00:15:24allows people to be uh it allows people
- 00:15:26to probably realize what works for them
- 00:15:28best.
- 00:15:30So imagine this, right? So you're you're
- 00:15:31in a trade. I mean, how how long do your
- 00:15:33trades typic typically take? Um, usually
- 00:15:36most day trades are two hours uh
- 00:15:38generally and then any swing trade that
- 00:15:40I'm in. Uh, most option trades are less
- 00:15:42than 30 days. Hey folks, just jumping in
- 00:15:44here quickly. Now, if you're looking to
- 00:15:46trade dynamically, you want to learn
- 00:15:47from my own trading mentor JJ, then what
- 00:15:49you need to do is click the link in the
- 00:15:51description. Register your interest
- 00:15:52because we're going to be launching this
- 00:15:54dynamic traders club very soon and you
- 00:15:56don't want to miss out. All right, let's
- 00:15:57dive back in. Well, let's go with a
- 00:15:592-hour trade, right? So, you're in a
- 00:16:002-hour trade. What kind of self-t talk
- 00:16:02do you uh say to yourself or kind of
- 00:16:05routine do you have whilst you're in
- 00:16:07that trade and it's running uh in
- 00:16:09profit? Let's go. It's running in
- 00:16:10profit. What kind of selft talk will you
- 00:16:12have and and what's your process for I
- 00:16:15suppose managing that trade or or
- 00:16:16getting out of it?
- 00:16:19Great question. So thankfully my
- 00:16:21self-talk game for most of my life has
- 00:16:25always been pretty positive. I very very
- 00:16:27rarely beat myself up over things. Uh,
- 00:16:29I'm just kind of a nice guy to myself. I
- 00:16:32think that's important. So, my selft
- 00:16:34talk game is pretty strong. I I do great
- 00:16:37affirmations. I'm very very cautious
- 00:16:40about what I say out loud because our
- 00:16:42words create our world. So, whatever I
- 00:16:45speak is going to come into fruition.
- 00:16:46So, I'm very very kind, very kind to
- 00:16:48myself. Uh, but the second piece, man,
- 00:16:51for me is more exiting and and managing
- 00:16:54a position is all based on numbers for
- 00:16:57me. So, I currently trade with the
- 00:16:59$10,000 risk unit. And my goal is to get
- 00:17:03four profitable risk units realized for
- 00:17:06the month because that's kind of like my
- 00:17:08baseline of like if I can make $40,000 a
- 00:17:11month, I can kind of cover everything
- 00:17:13and everyone's good and everything's
- 00:17:14taken care of, right? So, if I can once
- 00:17:17I hit four realized risk units for the
- 00:17:19month, then I can start doing a lot more
- 00:17:22letting trades run, holding trades
- 00:17:25longer, not necessarily looking at the
- 00:17:28trades, but just like setting stops,
- 00:17:29targets, kind of walking away, not
- 00:17:31really in front of my computer very
- 00:17:32often. But as of right now, like today,
- 00:17:35we're early in the month. Really early
- 00:17:38in the month. So, I am going to go after
- 00:17:40those four risk units and I'm going to
- 00:17:43really be aggressive. I'm going to watch
- 00:17:44closely. say, I'm gonna move stops
- 00:17:46aggressively. I'm going to be really in
- 00:17:47it so that I can get those four locked
- 00:17:49in. And then once I got those four
- 00:17:50locked in, I can have a lot more leeway.
- 00:17:52Um, I will hold trades a lot longer. I
- 00:17:54will be in trades a lot longer, I'll go
- 00:17:56for bigger targets. But that's only
- 00:17:57after I get four hours realized for the
- 00:17:59month. And and are you kind of would you
- 00:18:02consider yourself more of a I suppose a
- 00:18:04um a master of reading price action?
- 00:18:08Yeah. Or are you more just like here's
- 00:18:10my strategy. I just execute it. It's got
- 00:18:12a few rules and you know, it's kind of
- 00:18:13simple. both. Both um I'm really really
- 00:18:16really good at price action. That's
- 00:18:17probably my number one fake my number
- 00:18:19one focus is really candlesticks uh
- 00:18:21candlesticks and understanding how
- 00:18:23people are feeling because realizing
- 00:18:25that the whole market is just human
- 00:18:27emotion and human sentiment. That's why
- 00:18:29I like stocks is because stocks are
- 00:18:31they're it's very sentiment driven. It's
- 00:18:33very like organic and it's all based on
- 00:18:36how people are feeling. So if I know how
- 00:18:38someone is feeling and I can look at
- 00:18:40that and say, "Yep, that person feels
- 00:18:41this way so I'm act this way." Oh, it's
- 00:18:44the best.
- 00:18:46So, so if I was to like put you in front
- 00:18:48of a a Forex chart, right? So, Euro US
- 00:18:51dollar. Yep. Do you think you would be
- 00:18:53able to, you know, get through a trading
- 00:18:56session and you know, let's say 3 days
- 00:18:58worth of trading sessions and come out
- 00:19:00up uh up for that for that mark for that
- 00:19:02market. Yep. No problem. Okay. So, so
- 00:19:05yeah, so you're a price action kind of
- 00:19:07guy. You you understand how the markets
- 00:19:09move and what's driving the underlying
- 00:19:11um price movement. i.e. the people that
- 00:19:13are that are buying and selling which is
- 00:19:15fantastic. So, so when you're in these
- 00:19:16trades, right, and you've got the selft
- 00:19:18talk going
- 00:19:19on, how do you because what I what I
- 00:19:22find with somebody who really
- 00:19:23understands price is you've kind of got
- 00:19:25to work out, okay, this is what people
- 00:19:27are doing, but what are the
- 00:19:28probabilities as well because you can
- 00:19:29see sometimes see the same kind of thing
- 00:19:33happening for for you know somebody for
- 00:19:36for a short or for a long. Mhm. But
- 00:19:38sometimes they because of where they are
- 00:19:40it dep you know that's where that's what
- 00:19:41actually tells you that okay well the
- 00:19:43probability is against that move going
- 00:19:46short because of where it is in the
- 00:19:48move. I mean do you how do you then sort
- 00:19:51of manage your trades and sort of stay
- 00:19:53in a trade versus closing one early?
- 00:19:57Oh I close every trade early, dude. I've
- 00:20:00learned Yeah, I've learned that. Um, I
- 00:20:03mean the the real answer is I do have a
- 00:20:06lot of if then statements. So as I'm
- 00:20:09trading and and price is forming, I say
- 00:20:11if this happens, I'll do this. If this
- 00:20:12happens, I do this. And so I usually
- 00:20:13have a lot of those two parameters. From
- 00:20:16a day trade perspective, if I move a
- 00:20:19stop almost without question, it's
- 00:20:21every, you know, it has to be at least
- 00:20:2321 minutes have passed. Um, I would say
- 00:20:2790% of the time. it was really really
- 00:20:29early in the morning and I'm taking an
- 00:20:30aggressive trade, I'll be a lot faster
- 00:20:32with my stop-loss move. But yeah, if I'm
- 00:20:34in a trade after the first 30 minutes of
- 00:20:37market open, 99% of the time I'll move
- 00:20:40my stops after 21 minutes have passed,
- 00:20:43which is seven candles on a threeminut
- 00:20:44chart. That's almost kind of Okay. Yeah.
- 00:20:47Yeah. Yeah. So, and and I've noticed
- 00:20:50that most patterns, most charts, if
- 00:20:52they're going to move, it's somewhere
- 00:20:53between two to eight candles. So in two
- 00:20:56to eight time periods of whatever time
- 00:20:57period if you're like man when's this
- 00:20:59thing going to move that's usually when
- 00:21:00it is. Uh so two to eight somewhere
- 00:21:03after that it starts to got start moving
- 00:21:04for you. So yeah man so even even so so
- 00:21:07even if you're seeing like you know
- 00:21:08strong uh pressure against your move
- 00:21:12you're still going to hold it for that
- 00:21:14seven candle yeah sorry. Yeah period and
- 00:21:16then decide to move because it could you
- 00:21:18know just be a fake out or whatever you
- 00:21:20know. Yeah. Yeah. And I get and I get
- 00:21:22stopped out too. I get stopped out all
- 00:21:23the time. I that definitely happens for
- 00:21:25sure. And my average loss is right now
- 00:21:29about.78 risk units. So again, if one
- 00:21:32risk unit is $10,000, every loss is
- 00:21:34about 7,800 give or take. Pretty close
- 00:21:37to that. It's like my average. But my
- 00:21:39average win is right around $12,000 or
- 00:21:411.2 risk units. So my take-home is that
- 00:21:45spread. And I really am still almost a
- 00:21:48professional coin flipper, but the 50/50
- 00:21:50ratio for me is if I can win more than I
- 00:21:53lose mathematically, I can flip the coin
- 00:21:55as many times as I want. And that's
- 00:21:56really kind of what I focus on is just
- 00:21:58that spread of the the losses. So, I
- 00:22:00absolutely will get lost and stop out of
- 00:22:02trades. Trades really do run and run and
- 00:22:05run. I always get out too early. Every
- 00:22:07single trade ever, I've always got out
- 00:22:08too early. But I don't really care about
- 00:22:10that, man. I just care about paying my
- 00:22:11bills and making my money. Now, what
- 00:22:14about like um indicators or or kind of
- 00:22:16market internals or or technical
- 00:22:18analysis? Do you have any that you use
- 00:22:20or find really helpful right now that
- 00:22:22you think a lot of retail traders
- 00:22:23overlook?
- 00:22:25Not overlook, no. I I really do use
- 00:22:28long-term averages pretty well. So, the
- 00:22:30100 and 200 simple moving averages. Uh I
- 00:22:33use those on all pretty much all time
- 00:22:35frames. And then I'll use the 10
- 00:22:37exponent moving average. So, I like
- 00:22:38moving averages. Those are fun. Um,
- 00:22:41they're I think they're extremely useful
- 00:22:42and they work extremely well. There's uh
- 00:22:45the moon, you know, new moon, full moon.
- 00:22:47I like moon indicators. They're awesome.
- 00:22:50Uh, but the good news is we always know
- 00:22:53what a full moon's going to be and we
- 00:22:54always know what a new moon's going to
- 00:22:55be. Like that's calculable for the rest
- 00:22:57of human history. Doesn't really change.
- 00:22:59So, we know that going forward. We know
- 00:23:01when the moon phase is. You buy on full
- 00:23:04moons and sell on new moons. So, you
- 00:23:07know, that's an indicator. But how the
- 00:23:09hell does that work? I mean, what what
- 00:23:10is the theory behind that? I mean, is it
- 00:23:13cuz it's got to be some kind of theory,
- 00:23:15right? And I know the moon does pull on
- 00:23:17the Earth's um uh gravity. So, you get
- 00:23:20the high tides and low tides and all
- 00:23:22that sort of stuff. I mean, how does And
- 00:23:24you're comprised of mostly what exactly
- 00:23:26water. So, so therefore, what does what
- 00:23:30is it doing to us to to make the market
- 00:23:32move? I don't know, dude. I don't know.
- 00:23:35I don't know how the whole astrology
- 00:23:36thing works. It's really really bizarre.
- 00:23:38But I mean in
- 00:23:4020 uh
- 00:23:422014 2015, yeah, I got hired to uh help
- 00:23:47build a hedge fund, an astrological
- 00:23:49hedge fund uh get created from ground
- 00:23:51zero. And it is wild how well a lot of
- 00:23:55those things seemingly work. Again, is
- 00:23:57it coincidence? Is it like, hey, I put a
- 00:23:59line on the screen, the line works?
- 00:24:00Maybe. But I think it's all because it's
- 00:24:03organic. I mean, if you think about pe
- 00:24:04people people use the ocean as a
- 00:24:07metaphor for the markets all the time,
- 00:24:09right? All the time they're talking
- 00:24:10about waves and waiting for the white
- 00:24:12wave and all, right? All this stuff. But
- 00:24:15the moon moves the ocean. So, it's like
- 00:24:18this really, I think, just fun organic
- 00:24:20little cool mystical thing that I think
- 00:24:22works probably better than a lot of
- 00:24:23people think it does. Yeah. Yeah. It's
- 00:24:25weird, isn't it? Um, so I know you've
- 00:24:28got a bunch of students, right? So, a
- 00:24:29lot of students. What what do you think
- 00:24:30some of the traits are that that or or
- 00:24:33even habits that separate the guys who
- 00:24:35are most successful versus the rest?
- 00:24:40Fear of losing capital is going to be a
- 00:24:42really big one. Um, and I'll say fear of
- 00:24:44losing capital. If an individual has
- 00:24:47$30,000 or less to their name, they're
- 00:24:50not going to trade very well. And that's
- 00:24:52just simply because that's all the money
- 00:24:54that they have. And if they lose all of
- 00:24:56it, they're they're going to be in a big
- 00:24:59pinch. it's going to be a really big
- 00:25:00behind. So having more money is always
- 00:25:04going to make this particular game a lot
- 00:25:07easier, but it makes life easier. So for
- 00:25:09those who are trading with less capital,
- 00:25:11it's one of those situations where it's
- 00:25:13like, listen, the most important thing
- 00:25:14to do at this stage is find ways to grow
- 00:25:17that capital. And it's okay if it's
- 00:25:19working. That's fine. Like go get a
- 00:25:20great job. Go get two of them. Work some
- 00:25:22overtime. Like it's okay to have a
- 00:25:24smaller account and just physically
- 00:25:26manually build it up. But that loss
- 00:25:29aversion is going to keep a lot of
- 00:25:32people timid because if you are scared
- 00:25:36and you are playing in the
- 00:25:38markets and a trade starts going against
- 00:25:41you and you're like, "Oh, here it comes
- 00:25:43again." You exit too early and ends up
- 00:25:45working out. Fear version is a big one.
- 00:25:47And to overcome the fear of losing and
- 00:25:49to have the absolute certainty and the
- 00:25:52awareness that this stuff works, you
- 00:25:55just got to go with the trend. Like what
- 00:25:57is it? Is it up? Is it down? You got to
- 00:25:58go with the trend. Once you know what
- 00:26:00the trend is, and once you know when the
- 00:26:01trend starts changing, you study those
- 00:26:03two things pretty aggressively so that
- 00:26:06you can really start knowing and feeling
- 00:26:07and seeing and understanding it. You can
- 00:26:09do extremely well in the markets, but
- 00:26:11you got to have the experience. You got
- 00:26:13to have the confidence. You got to know
- 00:26:14how. So, put yourself in a trading
- 00:26:16environment to prove to yourself. But
- 00:26:18yeah, man, loss aversion. That's
- 00:26:21probably the biggest one. And then I
- 00:26:23think second, a lot of people say it's
- 00:26:25discipline.
- 00:26:27meaning like a lot of traders just lack
- 00:26:28discipline. But I I would just say it's
- 00:26:32discipline in life, right? It's not just
- 00:26:34discipline in trading, it's discipline
- 00:26:36in everything. I think the vast majority
- 00:26:39of the world's problems will be solved
- 00:26:41when individuals have more consistency
- 00:26:43and discipline in life. So if someone is
- 00:26:46disciplined in not only trading but in
- 00:26:49any aspect of life, they'll be
- 00:26:50successful whatever they do.
- 00:26:53It's so true. It's so true. And look, I
- 00:26:54mean, ju just added to that, I mean, I
- 00:26:56know that's that's actually probably a
- 00:26:58really good answer for this next
- 00:26:59question, but I'm I'm sure there's
- 00:27:01another thing. There's probably heaps.
- 00:27:02Uh, if you could pass on like one
- 00:27:04principle to somebody who wants to
- 00:27:06become a professional trader, what would
- 00:27:08it be?
- 00:27:11Man, that's a good one. One
- 00:27:13principle I would say study study how to
- 00:27:16be a contrarian, right? Study study
- 00:27:19thinking differently. when everyone's
- 00:27:21thinking something, try to figure out
- 00:27:23why, where, and and see what the silver
- 00:27:25lining
- 00:27:26is and work on that because I mean, what
- 00:27:29a month and a half ago, two months ago,
- 00:27:31the markets were on fire. Everyone was
- 00:27:35happy. I was getting people from high
- 00:27:36school like, "Dude, I'm buying stocks.
- 00:27:38What do you think?" Like, people
- 00:27:39reaching out like asking me
- 00:27:41questions. And right now, crickets,
- 00:27:45right? uh crickets meaning like there's
- 00:27:47very very few people reaching out and
- 00:27:49everything I'm reading is fear and
- 00:27:51terror and scare and everyone so you can
- 00:27:54start understanding if you are a
- 00:27:57contrarian thinker and you can sit down
- 00:28:00and say if everyone's zigging how can I
- 00:28:02zag and specifically why is everyone
- 00:28:04zigging like what's the thought what's
- 00:28:06the fear that's why I moved to
- 00:28:08California was one of probably seven
- 00:28:10reasons but I was in Tennessee Nashville
- 00:28:12Nashville Tennessee and everyone was
- 00:28:14moving to Tennessee from California.
- 00:28:18And so my thought was like, why, you
- 00:28:21know, why is that? And I come over to
- 00:28:23California, I'm like, wow, this place is
- 00:28:24amazing. It's really, really cool. So
- 00:28:27learning to be that is probably going to
- 00:28:30be one of the better skills because
- 00:28:32you'll make the most money that way.
- 00:28:34I've had a few contrarians on the on the
- 00:28:36show before and they they do tend to do
- 00:28:38quite well. Now, um, we'll wrap this
- 00:28:41show up soon. So what are you what's
- 00:28:42pushing you to grow and evolve in your
- 00:28:44trading uh at the moment?
- 00:28:49Good question. I would say probably most
- 00:28:52of my evolution is going to be personal
- 00:28:54and personal at this stage. Like my
- 00:28:57trading, believe it or not, man, trading
- 00:29:00is super boring for me. Like I don't do
- 00:29:02anything cool. It's the same process.
- 00:29:04That's why I teach people. That's why I
- 00:29:06love helping people. That's why that's
- 00:29:07why I love working with individuals
- 00:29:08because it's so easy, man. It's so
- 00:29:10simple. It's not hard. And for me, I
- 00:29:14want to grow personally and
- 00:29:17professionally and spiritually and
- 00:29:18emotionally and relationally. Trading, I
- 00:29:21don't think my trading is ever really
- 00:29:22going to evolve from this stage. Um, you
- 00:29:24know, I'm sure maybe there'll be some
- 00:29:26aspects in evolve, but I don't know what
- 00:29:28those aspects will be realistically at
- 00:29:30this stage. Uh maybe tracking, cooler
- 00:29:33mechanisms for tracking, you know,
- 00:29:35cooler websites that kind of give me
- 00:29:36more data, more inputs. Maybe brain wave
- 00:29:39scans and some signals and some
- 00:29:41biochemical stuff could be really fun to
- 00:29:43and interesting to to test. But
- 00:29:45ultimately, man, the the real question
- 00:29:48for me is what what causes me to evolve
- 00:29:50from a personal front? Because I think
- 00:29:54changing is one of the coolest parts
- 00:29:56about human history is us adapting
- 00:29:59constantly, never ending change, never-
- 00:30:02ending growth, always finding ways to
- 00:30:04just become the best version of
- 00:30:05yourself. I've been propelled by that
- 00:30:07stuff my whole life, and it excites me.
- 00:30:09It motivates me. Uh that's what I love
- 00:30:11because money can't buy a finish line.
- 00:30:14So, when I want to go do something
- 00:30:16really hard and I go find some really
- 00:30:18cool races or some really cool events or
- 00:30:20some really fun things to participate
- 00:30:21in, that's exciting to me because it
- 00:30:23gives me the ability to say, "This is me
- 00:30:25versus me." And that's just one of my
- 00:30:27favorite domains to play in. Awesome.
- 00:30:30Hey, look, um Jeremy, it's been
- 00:30:32fantastic having you on. Uh I think
- 00:30:33there's a ton of value in this episode,
- 00:30:35folks. If you want to if you've listened
- 00:30:37to the whole thing, you probably want to
- 00:30:38go back and listen to it again cuz uh
- 00:30:40some of the nuggets he drops is a top
- 00:30:42draw. Now, what's the best way for
- 00:30:44people to find out more about you?
- 00:30:47Yes, absolutely. So, hop over to
- 00:30:49realifeetertrading.com, go through all
- 00:30:50of our free education. We have over 100
- 00:30:52hours of free education. It's
- 00:30:55incredible. It's a great program, great
- 00:30:56product, great website. If anybody wants
- 00:30:58to get a hold of me
- 00:30:59personally, anywhere on social media,
- 00:31:02you know, just make sure you spell my
- 00:31:03name right. Two Rs, J E R Y. My dad's
- 00:31:05name was Jerry, so it stands for Jerry
- 00:31:07and me. That was my my mom's gift. Um,
- 00:31:11but yeah, just reach out anywhere on
- 00:31:12social media. I'm all over the place.
- 00:31:14And uh, shoot me a message. I have a
- 00:31:15great social media team. I'm happy to
- 00:31:16communicate with anyone who's part of
- 00:31:19this podcast, anyone who's a part of
- 00:31:20your squad and your fan base, man,
- 00:31:22because I saw you see you growing and
- 00:31:24blowing up, which makes me so happy
- 00:31:26because again, you kept doing it. You
- 00:31:27stayed consistent. You stayed
- 00:31:29disciplined, right? That's the key to
- 00:31:31winning. That is the key. That is the
- 00:31:33key. Hey, look, um, Jeremy, thanks for
- 00:31:35coming on again, man. after seven years.
- 00:31:37It's been a It's been a long time, but
- 00:31:39well worthwhile getting you back on. Uh,
- 00:31:41and all the best for the future.
- 00:31:42Likewise, champion
- trading
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