The Only Day Trading Skill that [ACTUALLY] Matters...

the only skill that actually matters hey it's clay at claytrader.com and that is exactly what i'm going to be talking about here whether it comes to stock market options market cryptocurrency market does not matter this is a skill that matters by far the most and it's not the most popular it's not necessarily the skill that people want to be hearing about because i get it people want to get motivated people want to get inspired and i realize that and there's nothing wrong with that however if you want to boil things down to the practical side of things meaning yeah okay i get it hip hip hooray all that sort of stuff is important it's much funner to talk about but what actually matters from the practical point of view that's what i'm going to be talking about here because it really is when all things are considered the only skill that truly actually matters and i'm not going to ask you to trust me or believe me but i would encourage you find somebody that you do trust find somebody that you're like you know i consider fill in the blank to be a professional trader i consider fill-in-the-blank to be somebody that i believe knows what they're doing that i believe will give me good advice and ask them what is the skill that matters most and at the end of this when i when you see how all this plays out go and ask them that and be like hey do you agree with the premise that this weirdo that i saw on youtube is talking about and i have a sneaky suspicion that they're like yeah that that is actually what matters the most all things considered if you can't do this skill then everything else is eventually going to fall apart or at best you're just going to be having your your wheels spin around in the mud and not actually make any sort of progress so to set this up i want you to know i'm not going to be talking about in theory here right so this is not like some sort of textbook where it's just going to be well this is how it's supposed to work this is how i i think it works no i want to show you how this all plays out and what this skill actually is so on the screen here you can see a a stock that i found and then i decided to make a trade on it and i was going to go and not not gonna go i did go short meaning as a quick recap for those of you that are maybe new to the markets short meaning i wanted to see this thing drop down and if the price did drop down that would have been a good situation because that means that hey you know what i'm making money so yes as bizarre as it sounds beginners you can make money when stock prices or any value goes down that is known as shorting being a short so that is what's going on that's what i'm going to attempt to do here is i want to see this price go down and if it goes down i make money so let's get to the actual trade and you can see how that exactly plays out 156 okay in there at 156 let's see if we can get some movement to the downside here this can break down through yeah 155 25 that'd be great a little bit of a bounce here well that's not good let's see if it wants to come back down got to remember it is it is a pretty jumpy one so you got to give these things wiggle room so the question becomes do i want to actually add some more at 155.75 i do actually so i will add to the position at 155.75

so adding to a winner but it's first got to become a winner it would just be a slight winner because it'd be just a little bit below but like i said if this thing wants to come back down yeah well i got myself into a choppy one here well i'm gonna have to stop out of this one soon give it a little bit of wiggle room i don't want to get shook it out here but this comes down to 156.25 i am going to add i don't know maybe this is legitimate bounce i want to give it a little bit more wiggle room here all right all out there a thousand dollar loss bummer that one was looking so good too glad i got it where i did though and i look at it go so yeah it happens was not pleasant was not fun but you know what let's play the what if game in the sense of you know what what happens if i had not admitted that i was wrong and said clay as much as you like that setup as much as you thought the setup would work out it's not working out clay and you know what it's not working out to the point you you gotta you are you are officially wrong get out and i did it and that's the skill the skill is can you admit that you're wrong do you know when you should admit that you're wrong meaning just because your p l might flash red does that mean that all of a sudden you're wrong here's a hint no absolutely not there is going to be times where your p l is red and that doesn't mean that you should take the loss now at what point does the red become the level where you need to take the loss well hey there you go that's the skill you need to be able to determine when that is but you also have to be able to just acknowledge the fact that you are wrong which is for us as humans very very difficult to do very difficult to say you know what i'm wrong and the twist here with the markets is when you're wrong here it's not like oh you're playing some board game and it's trivia oh i got the question wrong no no and this it actually cost you real money and that just compounds on to ah it's just that much more difficult to do but it is the skill that by far matters the most can you admit that you were wrong and if so that's great but you still gotta be able to know when you're actually wrong but at the core like i said boiling everything down you got to be able to admit that you're wrong or in trading jargon you got to be able to cut the loss you got to be able to manage risk why is this the most important skill i get it i've been sitting here talking about how it's so important how it's important well let's look at like i said the flip side of if i had not done this if i had not managed risk if i let my ego get in the way if i had gotten stubborn if i had you know fill in the blank of behaving in a way that was not advantageous towards the strategy itself so remember i had 500 shares so meaning just keep the math easy for every dollar the price would have gone up against me because remember i was short for every dollar the price goes against me that would have been another 500 so i got out right here i waved the white flag at the 158 mark give or take a little bit a little bit more than that because i lost a little bit over a thousand so right there was where i i waved the white flag and said yeah i gotta just get out now every dollar beyond that is 500 more dollars okay and so with every time that happens let's just get a red line here to represent the loss of 500 so again every red line that i throw in there is an additional 500 so let's see what happens next had again had i held oh all right well there there's another dollar it went up beyond 158 so there's another 500 let's see what happens here okay yeah a little rid of rust i'm able to oh clay see a clay look at it it's coming back down you should have just not under that stop loss oh see well okay well i mean it's done right now it's gone back to that original thing oh my and then look at that up it goes to another dollar right there hits 160. so there's another potential 500 loss well i guess that's another dollar move there's another red line so not to insult your intelligence but five hundred dollars more of a loss a thousand dollars more of a loss fifteen hundred dollars more of a loss and then wouldn't you know look at that goes up to 162 and then what don't you know there goes up and hits 160 3. so as a quick recap let's just actually do this just so we have how many red lines one two three four five so five red lines and each one represents five hundred dollars more that equals twenty five hundred dollars but you would have to add that on to the thousand dollars that i already took so plus one thousand you're looking at a potential thirty five hundred dollar loss now i realize well clay that assumes that you would have sold it the exact top and that's a fair point so let's just call it another 2500 or let's just call it in total 2500 so maybe i got stopped out somewhere you know right around i was like i finally waved the white flag up around 161 162 but let's just say that it was a 2500 loss again that's 1500 more than what it had to actually be so what you're looking at here is how that day actually played out now i have the entire live trade video on on my channel so if you want to go and see how the entire day played out and see these the rest of these results you can go and watch that if you want it's like a 35 minute video um so i mean i'm honored if you want to go and watch that that's great and i thank you in advance but if you don't as the recap here that was the final day which equated and finally came down to minus 461 on the day so by the time everything was said and done hey you know what i had cut that thousand dollar fifty hole into four uh minus 461. now with commissions it

would have been a little bit more than that on 475 but you know we're talking at the margins there there let's just talk about things from as is to keep it easy but think about that though what happens if i taking that 50 if i had not been disciplined right if i not honored that loss is that number still that no what would i have to do i got to add on plus 1500 more right because that was the a very realistic now again to be fair that number could have been even higher but we're not we're not we won't assume that i got out at the at the worst possible time but fifteen hundred dollars as you saw more than reasonable so what does that do well that literally makes this entire equation right here now you have still that i've been going into the next day 1900 more than that but just to keep the math easy i would have still been looking at a nineteen hundred dollar hole instead i was going into the day with the 460 dollar hole now this is a rhetorical question but i mean which hole would you like to face 460 dollars being down or 1900 being down like i said no need to even really answer that but that's what the skill allowed me to do the skill of managing risk the skill of being able to admit clay you're wrong just get out cut the loss kept the hole at 460. so which brings the question okay well yeah that was one day how did the next day go well here we go now if you want to see how this day played out again you can go and watch the live trades this was all documented out so you can see that big losing day and then the crazy part is was the next day um you know the day after this one it was just one trade one trade netted me 525 i don't know with commissions let's call it 515 i don't know but pointer being 515 bucks one trade took i think uh 20 minutes or so for me to you know find the trade the trade itself i think lasted a few minutes but point being that the very nest that next day 1500 or 525 and i mean not to insult your mathematical intelligence but hey that day is gone not only was that day gone i was back into the green but what if what if i that number was again the the nineteen hundred dollars if that number was still you know sitting there at minus nineteen hundred you see the problem here i am still in the hole and not only that i'm still in the hole by basically 1400 that's crazy to think that by making that decision to cut the loss not only was i actually back in the green the very next day but i prevented myself from making a good trade where i made over 500 but still being down 1400 that is crazy and that is the type of stuff that can snowball out of control because think about it from a mental standpoint oh took a huge loss you know it should have been smaller the next day you make a good trade but then you can throw out the word but but i'm still down that much more well what then well time to go make another great trade and you go and try to make another great trade and even if it works out think about it even if it had worked out i made let's just say it another 500. oh i'm still down like 400 bucks let's go make another great trade and it could work out but eventually it's not and all of a sudden boom you take another loss because you're frustrated you start making stuff up and i've been there multiple times throughout the my time of trading and it's a nasty nasty situation but it all could have been prevented had i done that one skill of just yeah you know i should have just cut the loss where i did and in this situation like i said i'm very glad to be coming here and showing this where i did do it right i've done plenty of videos in the past where i i didn't do things the right way and it's come to absolutely crush me but in this situation i did do it right so i don't say any of this patted myself on the back because i mean i but i i am doing it in the sense of i realize it's fun to always talk about the winners i realize it's fun to see big results but what matters the most is you've gotta be able to manage risk and to bring it all the way back to the beginning of the video this is what i don't want you to trust me on just believe that everything i just talked about just don't don't trust me but go find somebody you do trust find somebody that you would consider a professional trader or somebody that's really good trading and like hey would you agree that the one skill that actually matters the most is your ability to control risk your mil your ability to manage risk like your ability to cut losses would you agree that at the core that's what actually matters and i'm very very confident that if that person like i said is a professional like oh yeah you got to be able to manage risk because you people can get lucky yeah you can randomly win stuff like that but nobody's always gonna be right nobody's always gonna luck out and get winners and you know all it takes is one or two bad trades one or two trades where risk is not managed and then trading accounts can be wiped away all the gains can be wiped away i mean have you ever been there before where you're winning win winning then all of a sudden it's like one or two trades you're like hey wait where'd all my gains go again i don't say that in a conus anyway because i've been there many times but it happens so if there is one skill that matters it is you gotta be able to manage your risk to control your risk and hopefully this little uh you know real life example helps you out so none of this is in theory this happened to me like i said you can see it all play out if you go and watch the live trade videos but i wanted to give you a kind of condensed version of how things played out but just as painful as it is as annoying as it is take the loss because you never know when something like this could happen no and to be fair some situations it'll work out like oh i'm glad i broke my rules because i ultimately made money but all it takes is one or two trades like you saw here where that price can keep going and going and going against you and what would have been a very manageable loss to get get get out of get back and get back to the green now becomes a situation where you're looking at a huge red situation where it didn't need to be that way maybe it needed to be that way temporarily but temporarily being the key word because hey all of a sudden for me temporary red now i'm back to green and everything's fine and that was only two days i mean i was already green still on the week but i just got that much greener on the week because i was able to totally wipe away that loss what would have been a much different situation had it spun out of control so just remember that don't let things spin out of control focus on the skill that matters most learn how to manage risk now before i go a couple quick requests questions on my part do you enjoy videos like this where i make lessons out of some of these live trade results uh if so a very easy way to communicate that to me hit the like button leave a comment down below even if it's just a thumbs up emoji but hitting the like button and then leaving a basic basic comment simple as the emoji really goes a long way communicating to me that these videos are worth it and you enjoy them so do those two things and i have no problem doing more videos like this in the future so if this helps and also check out the channel as a whole would love to have you as a subscriber but before i ask you to hit the subscribe button all i'll say is just check out the channel and if you like what you see then hopefully at that point you'll hit that subscribe button but yeah thank you for hanging out and get out there learn how to manage and control that risk 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

2021-04-24 21:35

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