A Live Look at Why Day Trading is Hard (my trade results)
Hey it's clay at claytrader.com. And in this video i want to show you a live look at why day trading, is so hard, using, some of my personal, trade results. In this way it's not me just talking in theory and talking about well i think, this is how it's supposed, to work, no this is from my personal, experience. And you're going to see, exactly. All what plays out which leads to these various areas of the market, and areas of really the human mind. That make it so difficult, so hard, to find, success, as a trader and i want to just show you that if you've ever had these feelings if you've ever had these voices, show up you're totally normal, it's to be expected. But the goal here is just to be aware of these voices, so that you know when you can tell them you know what go away i get what you're saying i see why you're saying it but you're actually just lying to me right now, and i realize i sound like a crazy person but you know that's kind of the mental game that we as day traders and really just, traders in general whether you're swing trading or even just investing. That's what we deal with we deal with a very, mentally, heavy, mentally, challenging, game, if you've never traded with real money, then you probably don't quite understand just how mental of a challenge it is but just you'll have to trust me here, or if you don't trust me totally fine go put some of your real money into the market and, you'll meet a whole lot of voices, in your mind, but what i want to set up here is a little bit of context, first and then i'm going to walk you through like i said some real life trade results from me personally, that will illustrate, the point that i'm talking about so the context, here and what is going on is that at this point as you're about to see. So here i am and i was already green on the day, how much was i green well i was up, 146. Dollars, so i was off to a nice start to the morning, but at this point, it really becomes a matter of and this is what you need to be doing, you need to be asking yourself okay well what is my goal from this point forward what am i trying to accomplish. Where do i want to be, and when you answer this question, you can start to, form trade plans around that, so for me my my goal was you know what i just want to be green, right, i just want to at this point in time i've off to a good day, and i think it might have been a friday, so i wanted to go into the weekend, regardless, but my goal was i just want to be green, i want to have a profitable, day, and that was my goal. So at this point because, i was already in the green because i had already made money, you can guarantee, yourself. A winning day you can guarantee, yourself a profitable day now i get it guarantee, in the market, doesn't sound like it should go in together, in some cases it can't but in this case it totally, can, so how can you guarantee. Yourself, a green day, well you can guarantee, yourself, a green day, with this. Position. You need to be focused on position, or you know to be a little bit more specific, position, size. Meaning well. If you know your position, size then you can really kind of work backwards. And figure out, how much, risk you should be taking, so again, in order to illustrate this let's go to my desktop, and i'll show you the first section, of this trade, i feel like the best. Opportunity, out there right now is still on ba just because. So 178. 179. Yeah risk right, around. Risky trade though but i think this thing can pull back some so risking right around 100. Now did you did you hear me say it out loud, risking, right around, 100. So let's go quickly through the math here and you'll see exactly how by focusing. On, knowing the fact that i want to be green, i know that i can, stay green so right here like i said i was up 146. Dollars. And not to insult anybody's. Intelligence but i do this just to show you the math here is not difficult, you don't need to have a degree in mathematics. Or physics to be able to do the math or that's associated, with you know putting together, and managing a trade plan but if i was up a hundred dollars and i'm risking. A hundred dollars. Meaning if i am wrong and i lose a hundred dollars. What would my total still be on the day well i would still be. So if i'm wrong, i would still be what i would be up 46. On the day, and again what was my goal what did i say my goal was well to be green, so it's as simple as that, by understanding, what my goal was. And then by understanding, position size and by understanding.
The Amount that i i can risk well then that's going to tell me what sort of position size i should actually be focused on so let's now go and see how this played out and at. 178.17. So we'll see if this thing. Can pick up some more downside, pressure. But i am you know admittedly, going against the trend here so i need to be more aggressive with my profit taking. Well not. 75.. I'd love to see it get down below 75. At minimum. Take some profit. Take my opening profits there at 75, but now maybe. It's gonna want to bounce. So let's see yeah risking right around let's just call it with slippage 100. So even if i'm wrong i'll still be up right around 50, on the. Day. So at this point it really becomes a matter of is this pullback going to get a little bit deeper here. Again i'm not even looking for a reversal, just is this pullback going to get deeper or is this the pullback, here and that's it and this thing's gonna just continue on with the trend which is very real possibility. Hence me just doing the hundred shares because you gotta admit and you gotta acknowledge the fact that, yeah technically speaking against the trend here. But i like the risk uh to return. But again looking for at least. 177.75. Before i even think about taking off any sort of profits. So it's getting down there but let's see if it can get a little bit below. 177.75. What is that low. Yeah, 177.70. If it can break through there. Then i think this thing has got a chance to, maybe even get down to 177.50. Can it get down through 177.70. It's. Trying. Trying to be patient with it and give it an opportunity. There it goes. All right still though, so right now have 50 shares. Left. If this thing can get down through 177.50. We'll look to pull off another. 25. Shares. There we go. Nice okay. Well. 25 shares left so not going to take, or it's not going to be a massively. Big winning trade, but again go back to the entire premise behind the trade. In fact i want to be able to speak about this just without having to do a mental stop so. 178.01. So if this thing goes up over 178, i'll get out, but at this point we'll also just let it work for me but the the the point here was. Yeah i get it in hindsight, it's it's easy to say and i have the voice that shows up clay why don't you do 500, shares this would be a this would be a great trade. And that's absolutely true but, as the point i was talking about before i knew what happened i'm commenting yeah i'm going against the trend, yeah this is you know could just be a minor pullback before it resumes, so at that point. I mean i it felt good to just have 100 shares because i knew that if it did, continue, on up it was going to be right around like i said an 8500. Loss, and now i was going to survive. And that's what it's all about that's, how you survive you've got to account for risk via position, sizing. And you can't listen to the voices that show up like i said right now the voice being, oh why don't you do 500, shares clay this thing's now down at you know 177.25. You totally nailed the top on it. And yeah but at the time i didn't know i was nailing the top right, and that's why. Hindsight, trading. I'm gonna get this. Adjusted here to 51, now. Now that it's gone plenty of my favorite so at this point it is a a, fully big winning trade here this thing either wants to bounce, oh and it bounced took me out there or wants to roll back over, so there we go again, not a huge trade, at all, but it all starts back to the learning lesson of, yeah but i knew that going in because i knew i wasn't risking a whole lot either, now you heard my thoughts there, and, the main takeaway the kind of core principle here is think about that, i, nailed the top, nailed it, and then, i walk away, basically saying, well but you know. But but what well but i only, right i only, made. Such-and-such, amount of money. No yeah it was a proper trade. However, man i nailed the top, wow good chart vision way to read the technical. Candles and the level twos. But, i only made. That amount of money. So do you see how the human mind how those little words.
Can Can creep up, and, it can start to unravel. A little bit, but then i found another trade so let's go and check out how that one played out um which makes me question 179. Now. 179. Oh yeah that's a 50, risk i'll take that. So if this thing looks like it wants to break down through 179. I am going to risk right around, 50ish, dollars. Now did you hear me say it again out loud, risking, right around, 50. Why am i saying that well basically, why i'm saying that is, i'm asking. What if, i am wrong. And i get it, in this day and age oh let's focus on the positives. Let's be a glasses, half full type of person which is so true in many areas of life but in trading. You want to err on the side of caution you want to be, pretty much negative. And say you know what. What happens if you're wrong if you're wrong. Then what's that going to cost you whereas we're way too many traders, especially when you're new and just getting started and beginner day traders, they're always like hey how much am i going to make. And i get it that's a logical thought to have. Focused on how much money you can make but they always forget or they don't really factor in, but what if you're wrong, and in this case like i said i was focused on what if i'm wrong, and that's why i said you know what if i am wrong it's going to be costing me, right around how much did i say well the 50. So meaning. If i'm wrong and if it cost me the 50. What is that going to lead to well that's going to lead to and again, not to insult anybody's math. Knowledge here but this just illustrates, that, it's not difficult. But i would still be, green, on the day. 149. And remember that is my goal that was still my core goals i just want to be green on the day and i am guaranteeing, that by focusing, on risk management, by focusing, on, those numbers which then bleed down to position, size, because when you understand your numbers of of what you can risk, if you're wrong. Then you it'll tell you what sort of position size you can use so let's see how this all played out. And at. 179.09. I almost hope i get stopped on this so i can sit here and say see isn't that good that i just used. 100, shares. Well this thing's either gonna roll back over, nicely. Here. Or it's going to continue on up but that's i mean that's a fantastic, candle you can't ask for a better setup than what i have right here, it's just not a matter of is this setup going to work out. But whether or not i make her lose money i have myself in a, great spot because this is truly a a, fantastic, setup here.
Not Just a question of can the setup produce, more of a pullback, to the downside. And if it does i should be able to get the 170. 850. If not even more than that. 178.75. Though wow a whole lot of strength right. There. Either way though like i said this is a great setup, i mean i'm, very. Very happy to have myself in. It. Just really can 178. 75, be broken, or is this going to be the new base here because this thing is just so unbelievably, strong. There's the break. Let's see if we can get down there's the breakthrough, 178. I'm being greedy there. There we go all right, i said 178.50. So still have 50 shares left. Uh, 178.. Yeah. I feel like i'm being kind of greedy with that. Well let's see what happens. 178.25. Would probably be. Better. But i don't know i feel like i'm getting greedy. I am all right there we go got it got to stay disciplined so i took out another 25.. So here we are, at um. Let's see, 178. I want to be able to freely talk. So put my stop in up above 75. So even now my last 25. Is is a winning amount so at this point it's not a question of if i make money it's just how much money am i going to make and as traders this is the spot we want to be in not if i make money but how much. Talk about a stress-free, spot to be in because i have no idea how far down, this move actually wants to. Go. If it can break down through 178. I'll adjust my stop loss down. Again but as right now got to just keep it up where it's at at uh 178. So not looking so good right now, but we'll see we'll see if it can. Move back downwards. But i assure you at this point there is absolutely zero stress, zero stress because like i said it is a winning trade even if i get stopped out of these final shares, that's still a, winning trade. By about, 25, cents. And things are not looking so good right now. But we'll see if this is a little miniature dead cat bounce. Oh. Uh oh. And. It's close. Getting close again. And, all out there. So again another let's see what i made on that about uh. 58 dollars right because i was at 199. Now i'm up 257. So there's a 58. Trade. So once again, i nailed the top, i my chart vision. My thesis. Everything, played out perfectly. And i nailed the top it was all it was, fantastic. But it's not really that fantastic, because then you have this mind game that shows up and the human mind, maybe not in this exact, sequence. But very, close, and maybe this is just for me but i mean i've been around since 2013, i've worked with lots of traders. And i know that i'm not alone, so maybe this doesn't pertain to you but if you do notice something very similar to this show up just please realize what's going on and please realize this mind game so that you can be self-aware, of it and then learn to ignore. But as you saw, nailed the top once again, fantastic. That is, great. However, the voice gonna show up and well but. But. But well but what well, only. Okay but only, what though only, if. Okay. Well okay but only if what. Oh, what happens if you would use position, size that was what well bigger. What happens if you had used, more position, size. Whether that be more shares maybe you're in futures or options trading so more contracts. Whatever that you know forex you know all if your lot sizes have been bigger. What if, oh you nailed the top great job. But. Only, if you had used bigger share size. Than what well you would have made more money. And then what does that ultimately. Can it you know potentially, lead you to do, it can which is crazy, but again this is why trading is so hard, it can cause you to say oh i messed up. But wait wait a second, no you i didn't mess up you didn't mess up, you, literally went through the proper steps of a trade plan, you thought about what your goals are and by thinking about what your goals are for that day it helped you to understand some numbers and by understanding those numbers. It helped you to manage risk how did it help you manage risk, well by position, size. And, all of this was based around the idea of well if you are wrong, which is proper right if you're wrong, what's it actually going to cost you. But the human mind. Conveniently. Just throws that all aside and can take you through this little cycle here, that you see on the screen, of this mind game, where, quite literally, you put everything exactly, right you, quite frankly. Went step by step by step, you completed the process you did the process, the right way, but all of a sudden you're walking away potentially, saying oh i messed up. Think about how savage, that is, that is why trading. Is so hard, you can do everything, right, but somehow. Walk away thinking that you messed it up. So, that is the challenge.
But, The goal here, and hopefully what i've illustrated with this video. Is. If you've gone through the proper steps now if you haven't gone through the proper steps that's in a whole nother discussion, but in this video i'm assuming. You. Go through the proper steps, you manage risk you're focused on risk you're focusing on kind of the negativity, of things if you're wrong. And then, things go in your favor. That you still remember well, that's great but it could have gone wrong so if that's what you're doing, just realize that if this voice of this mind game tries to show up just ignore it, ignore it you didn't do anything wrong at all you didn't mess anything up you did it the way that you're supposed to do it so be aware of it it's out there exist. It happens to me all the time but i would say probably the difference, uh with me compared to other traders that are beginners, or just getting started, is that i actually, recognize, i realize, what's going on so it's much easier to ignore, but these this is one of those things where you're never it's never gonna go away i mean this is just human emotions. It's always easy to play the hindsight, what if game oh but only if game. However just realize, the game that's, being attempted to be played on you and then it becomes much easier to maneuver, around that game, but i don't in the comment section have you ever been here let me know down below have you ever experienced this mind game, where you literally go through a trade, you do all the steps, properly. But then somehow you walk away, thinking you messed up, it doesn't make any sense it's a bizarre, but again, that is a live look at why trading, is so hard so if you enjoyed this video couple things before i go first off hit that like button that's a very quick, time efficient way to communicate that to me also comments questions suggestions. Leave those down below like i said we'd love to hear if you can relate to this at all and then finally, check out the channel as a whole there's a lot if you enjoyed the live trading uh, chunks of this video there's an entire playlist on the channel of all a whole bunch of live trade videos so you can check those out but hope you decide that you like what you see enough to hit that subscribe button as i'd love to have you. You know as a subscriber to the channel but yeah, get out there be very aware of this mind game, and please don't walk away from a trade where you operated.
Flawlessly. To then thinking that you screwed something up, doesn't make sense but it's a very real possibility, so just be aware of it, first off thanks so much for watching the entire video real quick before you go, i want to invite you to a live webinar, web class, training, workshop, online event, whatever you want to call it but it will be me, live, revealing, to you what i discovered, that has allowed me to transform, myself, from being an employee. To being my own boss, including. How i had only one losing day out of 73, days in total, i'm going to cover three keys that have helped me, unlock, profitable, consistency, within the markets. The first key is super weird, but in a productive, type of way, the second, key is super awesome because it quite literally, is wired into our dna, as humans. Making it very easy to use, but in a cruel way, this becomes a pitfall for many traders, i'll explain it all though, including how to avoid the pitfall, that it creates for some, and yeah the third key when you hear it sounds way too good way too good to be true but it's not and i'll show you, how it all works then at the end i open it up for a question and answer session that is again. Totally live, even if you can't make the live session, please still sign up as it will be recorded. And you can go back and watch the replay, that i will send you, click the image on the screen or click the link down in the description, box, so you can get the date and time and claim your spot, which i should note is limited due to the fact that this truly is a live event. If you have any questions. Let me know if not, i'll be seeing you soon.
2020-09-14 21:48
