Home Trading Strategies How To Become A Professional Trader (It’s Not What You Think)

How To Become A Professional Trader (It’s Not What You Think)

How To Become A Professional Trader (It’s Not What You Think)

hey hey what’s up what’s up my friend so in today’s episode I want to talk about how to become a professional trader and it’s not what you think why do I say that because when you hear the term professional trader I know youth you’re probably thinking oh it’s all about trading for the big boys straightening for the institutions or I being a market maker managing a seven-figure trading account that’s what professional training is all about know I’m here to tell you that debt is a nonsense that is [ __ ] professional trading has nothing to do with who you work for or how much money you’re trading why do I say that let me give you a real life story example in the 90s right there is this hedge fund called long-term capital management and this hedge fund shows a lot of promise right it actually had some of the smartest people in finance right working in the hedge fund developing strategies for the hedge funds these people right are actually Nobel Prize winners right they win an award right for being so smart out there and they are hired into the hedge funds right to trade the hedge funds money and the first few years of the hedge fund right now his fund was literally printing money you’re catching the money is just rolling in and furious into the trading right something happened okay I don’t want to go don’t make this a long story but eventually right they are trade soured and the incurred losses in the billions of dollars four point six billion dollars if I’m not wrong and the Federal Reserve had to build them out if not the right the financial system might collapse and this is what actually happened in the 90s 1997 right if I’m if I were to remember correctly long-term capital management so this is why I said that you know trading professional trading has nothing to do with how much money you’re managing yes nothing to do with how smart you are it has nothing to do with the trading strategies that you’re using it has nothing to do with who you work for it is a bank hedge funds institutions whatsoever so what is professional trading all about if you ask me it’s about these three things number one it’s about managing your risk you’re not a traitor alright first and foremost you are a risk manager you manage risk for a living that’s your core duty as a trader if you think about this right every time you put on a trade if absolutely no anyway there’s gonna be a winner or loser the only thing that is certain is that you know where to get out of your trait if you’re wrong that’s why I say that you are managing risk for a living you can’t make any promises in terms of the upside you have no idea how much money you can make but one thing that you can be certain is that how much you are willing to lose potentially lose that is something that you can decide and that’s why you are a professional risk manager that’s one number two professional traders you focus on the process not on the results so I know this sounds very cliche and you might you know have a vague idea of what this means so let me break it down to you exactly what I mean by this say for example that you know right now you are trying to build muscles and to read a bodybuilding competition you have two options option number one you can sit down on a comfortable so far like this a chair and visualize and visualize I know you winning the competition right collecting the trophy on stage collecting the big Chang you know looking like Arnold Schwarzenegger and stuff like that or number two you can have a process a process to follow they increase your odds of winning the competition and what do I mean by the process so the process can be break down into something like there’s 6 a.

m. you wake up every day 6:30 right you eat your light breakfast 7:30 is your first workout of the day you go from you woke up from 7:30 to 9:30 a night at each your post workout 10 a.m. you take a shot name for the day and 11 a.

m. you have your lunch maybe 1:00 p.m. is your second workout of the day 3:00 p.m. is your post-workout meal 5:00 p.m. you go for a like cardio session 6:00 p.m. you go for your dinner 8:00 p.m. you do some like stretching have another protein shake and 10:00 p.

m. you’re in pain so you do this day in day out day in there for weeks and months and when it comes to competition time who duty this is likely to eat the one with the process to follow religiously or the one that just visualize on the sofa or you know of the big Swede order you know I mean it’s a no brainer right the one with the process is the one that has a higher chance of winning you have a process you have a routine to follow and it’s the same as training you can visualize all the profits you want in the world but if you don’t have a process you know you know develop a training plan you don’t trade the markets you don’t review your trades then guess what it’s unlikely you’ll make money in the long run okay so number two right professional traders they focus on the process not on the results I know you know most you all of us me good I want the results but the way to achieve the results is not by focusing on in right but to have a process to get you towards the result that is important and the third thing is professional traders they protect their mental capital what is mental capital so here’s the different you might have been treating a calm you might blow up your trading to come but he so what you might have some savings you can steal top-up your trading to come but once your mental capital is depleted then it’s pretty done difficult to get back into training so mental capital is pretty much the energy here in your head right it gets you going gets you persevere through the losing streak to get you through the drawdown to place the mixed rate consistently over time that is mental capital and all of us are at each day we have finite mental capital if you don’t believe me right when you go for a job interview before an interview you are fully pumped up and enjoy right after the interview you’re like man what this is [ __ ] boy this is really [ __ ] what’s going on mental capital right we all have finite finite mental capital each day and you need to protect your mental capital as a trainer you cannot let your losses get to you personally because if you do right you lose and you lose and you lose right you blow up multiple trillion cut individually you’ll get tired of trading you’ll give up on trading and you just you know I bet that this entire endeavor all together and I get it trading is not for everybody but if you want to be a professional trader you must protect your mental capital and how do you protect it right again by doing the two things I shared with you earlier manage your risk always always manage your risks have a stoploss alright pretty to me how much you want to potentially lose before you even put on a tree okay sometimes you know even if you stop loss you can use hygiene techniques options or rebalance your portfolio whatever but you must be prepared to lose be prepared to manage your risk and then number two we spoke about earlier you must focus on the process not just the results focus on the process and that will deliver the results okay and that’s and that’s it right that’s what professional trading is all about number one managing your risk number two focus on a process and number three protect your mental capital so with that said I have come to us to the end of today’s episode if you enjoyed it give me a thumbs up subscribe to my youtube channel the links are below and I will talk Yuson you


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