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From Gambler To Elite Trader

Uncategorized Nov 29, 2019

There is a big desire to want to be right about “calling” the future outcome of a market 

 

Would you rather make more money, consistently

 

Or 

 

Be right about calling the market top/bottom and not be in the trade?

 



Trading is a damn hard job

 

Only about 10% of all traders make money (Student)

 

Only about 2% make a living as a trader (Pro’s)

 

Only about 1% make incredible returns (Elite)

 

To be clear, about 90% of traders LOSE money trading (Gamblers)



I work with every one of these groups from the struggling trader who is looking to start this new trading business/lifestyle

 

To people who make over a million dollars in a single day



I have identified a number of characteristics of each trader type and I will break each one down



GAMBLERS - 

 

New traders who are full of confidence that they are able to predict the future and rightly so, they are usually very successful already in another area of their life. 

 

They are addicted to news and are always looking for a narrative to why “the market” did something

 

They throw money at every idea that they have with random amounts

 

They have no plan for when to stop out of their position if they are wrong and will hold on to their losing positions much longer than they should

 

They have no plan for when to take profits if the trade works out and will let a winner turn in to a long term loser

 

They are constantly betting on the most extreme outcomes with their trades anticipating Armageddon or parabolic ramp ups

 

They don’t understand how to size their positions correctly

 

They do not keep accurate records of their trades

 

They stack indicator upon indicator on their charts

 

They don’t use checklists or systems to ensure they are following a plan

 

They might have a trading plan but it isn’t properly built, missing things like manual backtests which give you fairly accurate statistics such as: 

-number of trades per year/month/week/day

-avg win

-avg loss

-expectancy

-std-deviation of expectancy

-win rate

-avg drawdown

-max drawdown

-mfe

-mae

 

They are unsure of what their expected monthly returns will be over the next quarter and even the next 5-10 years

 

They don’t have a Profit and Loss statement for their trading business

 

They are at the most confident and dangerous with their own money at this stage in their trading journey believing that they have this trading thing figured out

 

Gamblers lose the most amount of money compared to all other trader types on a % of net worth basis

 

Gamblers are manic depressive, with huge optimism before every trade and quickly feel the pit of despair in their gut as they watch another trade go against them 

 

Gamblers can continue at this for years before finally throwing in the towel and giving up

 

Or 

 

Eventually they develop a systematic approach to making money in the markets and move to the next phase which I call STUDENT




STUDENT

 

Students are traders who have moved away from being tied to the news all day/night. 

 

They no longer focus on the news/narrative or presidential tweets to make money in the market

 

They now spend far less time trading

 

They take very small positions when they do trade, and may even just paper trading without real money

 

They keep records. They may not know what they need to be recording but they are learning to be more meticulous=

 

They still chase for news events as to why a market/asset moved but they also are aware and begin to separate trading from news

 

They seek out a mentor

 

They find a trading system to study and learn how to focus on what’s important and divorcing from all that is irrelevant

 

The pit of despair that is constantly in their gut as Gamblers, is far less frequent as is the extreme optimism before every trade

 

They narrow down their trading setups to one at a time and focus on that one setup

 

They cancel dozens of newsletter, chat rooms, signal services and special news feed services and find one single service that works with their system saving thousands of dollars

 

They may only break even that year or make $1 profit (which is frustrating)

 

They see the opportunity that having a system to trade can provide and seek out ways to tighten up their results by trading more assets or learning how to compliment the system adapting it to be their own system

 

This can take years for a Gambler trader to move to a Student trader that can see the light at the end of the tunnel

 

It may take years for the Student trader to become a Professional trader

 

PROFESSIONAL

 

The professional trader runs trading as a business

 

The professional trader has a detailed trading plan, workbooks, p&l statements, pro-formas driven by backtests and live tests

 

They have heuristics they monitor constantly to ensure they are implementing their plan efficiently

 

They are focused on their own personal performance and are fanatical about daily routines, health and wellness, mental state, and adapt their world to ensure they are operating themselves and their trading business as best as they possibly can

 

They take accurate position sizes

 

They implement their system at peak efficiency

 

They are constantly reviewing the previous trading day/week/year

 

They are constantly testing new systems to implement as they market evolves

 

They do not blame the algo’s, the Fed, a Tweet or some other reason

 

They take responsibility and continue to adapt as the markets change (or don’t) over the years

 

They mentor student traders because they learn more themselves when they mentor

 

They don’t spend money on frivolous items

 

Simpler is better

 

They make consistent returns week after week, month after month, year after year

 

Very few traders make it to being a professional trader who earn a very consistent income and grow their accounts methodically

 

Even fewer get to the Elite level

 

ELITE

 

Elite Traders have all the characteristics of a professional trader but have such a high level of focus and commitment to implementing and managing their system that the rest of their life is on the sidelines

 

Elite traders are fanatical about high performance for themselves and have been at the professional trader level long enough that the edge they have in the markets has played out over years





If you can identify yourself on that list then you know what to focus on to move to the next higher level on that list of traders

 

Turn off the news

Focus

Study and Implement a system

Find a mentor

Focus on your habits and how to structure a high performance lifestyle

Build and implement a thoroughly researched and backtested trading plan

 

You can do all of this on your own, all of the information in the world is available if you just know how to find it, separate the good from bad, and take the time to iterate over and over on each new idea

 

Or 

 

We have reopened the Quantitative Earnings System to just 50 Traders for Black Friday

 

I limit the number that we offer because as you can see by my tweets, I’m very interested in great people making amazing lives for themselves through trading. 

 

I don’t want to sell this to the whole world, only those who really want to succeed and make a future in this business

 

The system only runs for about 2-3 weeks per earning season and only trades the best setups where the positive price outcome regardless of the companies earnings report/news. 

 

This past earnings season we made 13% in two weeks on 17 trades. If you do that 4 times per year, that’s some big results in 8 weeks of work

 

Here’s the link to the Black Friday Deal

 

http://bit.ly/2q2aB4v

 

I truly hope my work serves you

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