Roadmap tot Winstgevendheid in Traden | #5 Focus Program — Transcript

All right, ladies and gents, welcome to this new video. In this video, I want to talk very briefly about the majority of the population that starts trading and why they fail, why they ultimately fail with trading, what profitable traders do differently.

I can go on and on about this, but I actually want to make a short, simple, powerful video. We're going to dive right in. What does 90% do? Follow signals.

A lot of people follow signals, that is, honestly, asking for your money to be stolen. Guys, look, I'm a lazy person myself. Everyone is inherently lazy.

I'd love to sit on the couch and earn €10,000 without doing anything, you know, just copy someone else's trades. I'd put all my capital on that. Unfortunately, that's not the reality we live in.

First of all, many of the signals that are sold are not from good traders at all, but from very good entertainers. So the people who promote it are very good at entertainment, but they know absolutely nothing about trading.

And besides, it's often with affiliate deals with brokers where you can't even cash out your money. So if you deposit €500 with that broker and you might make some money, so you suddenly have €250 or even €500 profit, you often can't even cash it out. So that's the second problem.

And finally, those signals never come with risk management rules. It's a very distorted view of risk-to-reward, making it seem like they have very high win rates, but it's all bullshit.

Believe me, if this were possible, I would be the first in line to promote it, saying, "Hey guys, I've parked my money and I'm just earning passive income." Unfortunately, that's not the reality.

What other people do is they watch YouTube videos, perhaps that's what you're doing right now, they forward test, they take 10 trades in a row, maybe 7 out of 10 are profitable, and then they quickly start with real money.

They lose money. Suppose you start with €500, you lose €10, €20 for the first time. You're too attached to losing that €10, €20. You deviate from your strategy, you start gambling to earn the money back. Ultimately, you lose all your capital, you learn a new strategy, strategy hopping, you start the whole cycle again. You forward test again, start with real money, lose money again, try a new strategy.

This is very, very common, and many people are still stuck in this cycle to this day. And we're going to look at how we can prevent this. Before we look at this, I want you to do a thought exercise for yourself, and that is this time: "What percentage of the population has followed these steps?"

The majority of the population has never tried to trade, they have tried to gamble. No data, no plan, no edge. And we're going to learn the right approach for that today.

Well, this is what a number of day trading coaches on the internet tell you, and I hope this is clear to you now. If you are in this situation and you don't even execute this, then you already know why you are losing money.

If you're not willing to do this, then stop trading immediately, because you're just throwing your money away. Give your money to a good cause then. Um, first step, be the right person, have the right expectations.

Someone who thinks, "I'm going to trade because I'll be rich tomorrow" is not the right person, they shouldn't start trading. Someone who has no money in their name, who is too attached to money, is also not the right person. Someone who has no discipline is also not the right person. Someone who thinks they will earn €10,000 a month within two months is also not the right person.

In any case, you have to enter trading with the right expectations. That's where we start. Then acquire theory. That looks very much like this. Learn the right concepts.

The step that is missing here, but is present here, is backtesting. You're going to get started and see if your strategy actually works. Many people skip this step because they think, "Oh, I've looked at the theory.

I've learned from someone else that this strategy works," but they've never tried it themselves. Ultimately, it's your money that's at stake, so you have to really believe that the edge works. You have to find self-confidence in the edge.

You can't take someone else's word for it. Ultimately, your emotions will be involved, your money will be at stake, and you have to be able to trust your own knowledge. Then after backtesting, you have to review your data.

That's also one thing that many people don't even do. They have a win rate and a risk-to-reward and think, "Okay, nice, I can get started." But what can you get out of that data? Which sessions are most profitable for you? What risk-to-reward is optimal for you? What's the short-long ratio? I find that very interesting myself. It should be around 50%. If it's not, then you're deviating, then you're either seeing more long or more short positions.

Then you have to look, oh yeah, by the way, you can only look at all the data after at least 100 trades. Why at least 100 trades? Suppose I flip a coin. Well, everyone knows that if I flip a coin a million times, how many times would I get heads and how many times would I get tails? It's about half. That's a 50/50 split, so a 50% chance. If I were to do that 10 times, heads or tails, it could very well be that I get heads 7 times in a row and tails 3 times in a row.

And it seems like I have a win rate of 70% on heads or tails, I don't remember which one I just said. The more trades you take, the closer you get to the actual win rate, and only then can you extract data from it. Furthermore, you can actually see from your data which periods of the market are most profitable for you.

Are those periods where we move sideways? Are they bullish periods, are they bearish periods? There shouldn't really be a distinction between bullish and bearish in strategy, but there is often a very strong distinction between consolidating markets and trending markets. Furthermore, the days of the week that are most profitable for you and the hours of the week that are profitable, and even actually how long you should stay in position, whether you are more of a scalper or more of a day trader.

Well, after your data review, keep backtesting on the weekend if you have free time on the weekend. I still do that myself, I actually quite like backtesting. And then you start with forward testing.

You just forward test on a funded account, the cheapest funded account you can get, and you trade with such small sizes that you can't even pass your funded account, but also can't blow it up. This is purely to get to know the platform.

So you know where all the buttons are and that you won't make beginner mistakes. Know how to set your stop losses, know how to set your take profit, all the little things. Then finally, if you've gone through that phase and you know how the platform works, then you're actually going to continue with funded trading.

You're going to apply normal risk management, which I'll discuss in the next video. If you lose your funded account at some point, that's no stress, that's normal.

Then you're going to do a data review, forward test, still on a cheap funded account, and the whole process starts again.

If you do get funded, you keep trading low risk until your first payout.

Then you'll payout, reinvest in more funded accounts, with two challenges added.

Keep trading low risk, scale in capital and not scale in percentages.

Zero payouts, one payout, two payouts, three payouts, five payouts, it doesn't matter.

We're going to continue to reinvest and buy new challenges.

Well, then this is, let's say, standard what every coach on the internet would tell you.

There's one aspect missing here, and that's a, yeah, I find it a funny aspect, but it's true.

It sounds a bit corny, but you have to be the best version of yourself. The discipline you lack in the market is the same discipline you lack in your daily life.

Sloppiness in one aspect of life is sloppiness in all aspects of life. What are the qualities that profitable traders do have? They journal, they start from a financially comfortable position.

They mainly exercise to train discipline and health.

And you are emotionally stable. These are all things that happen in your daily life, outside of the charts, but they have a gigantic influence on your performance.

That's the core of this video, quite simple. I want you to reflect on this for yourself and think about whether you believe in it. Can you find the truth in it?

Are you the same person in your daily life as the person who sits behind the charts? And do you believe that you are now trying to be the best version of yourself? Are you working towards that?

That was the video, and I hope to see you all in the next one. Ciao ciao.