Boot Camp Day 11: How to take a Loss

Summary

Highlights

• TJR emphasizes the importance of discipline in accepting trading losses. 🎯
• The market is unpredictable; accept that losses are part of the game. 🎢
• Learn from each loss to improve your future trading strategies. 🔍

Key Takeaways

• Embrace losses as learning experiences to grow as a trader and person. 📈
• Discipline is crucial; don't let emotions dictate your trading decisions. 💪
• Not all trades will be winners; accept this and focus on long-term growth. 🌱

Overview

Chapters

• 00:00 - 01:00: Introduction and Importance of Taking Losses The chapter introduces the topic of taking losses, emphasizing its importance in trading. The narrator apologizes for their sore throat, indicating their dedication to continuing the boot camp despite personal discomfort. The focus is on discipline and preparing for actual trades.
• 01:00 - 02:30: Understanding Losses as Part of Trading This chapter focuses on the crucial aspect of trading: understanding and accepting losses. The video emphasizes the importance of taking losses in stride as a part of disciplined trading. While it's a video without charts, the presenter aims to convey the message directly and face-to-face, explaining that the future discipline videos will be more personal.
• 02:30 - 04:00: Encouraging Losses for Learning The chapter discusses the critical skill of accepting losses, particularly in the context of trading. It emphasizes the importance of discipline when dealing with losses, as exemplified by the narrator's personal experience of losing $9,000 in a trade. The chapter asks rhetorical questions about avoiding revenge trading or over-leveraging after a loss, suggesting reflective learning.
• 04:00 - 05:30: Emotional Management and Risk of Overtrading In this chapter titled 'Emotional Management and Risk of Overtrading,' the focus is on the importance of following personal trading rules and managing emotions to prevent overtrading. The speaker emphasizes sticking to predetermined risk levels and not deviating from them, thus maintaining strategic discipline. The conversation briefly touches on accepting losses as an inherent part of trading, suggesting that understanding and accepting losses is crucial in emotional management.
• 05:30 - 07:30: Learning from Losses and Avoiding Emotional Reactions The chapter discusses the importance of embracing losses and adopting a mindset that is open to learning from them. It suggests that recognizing losses as a normal human experience can lead to personal growth. By maintaining a positive attitude toward setbacks and viewing them as learning opportunities, individuals can fundamentally improve their approach and mindset, ultimately 'changing the game' for themselves.
• 07:30 - 10:30: The Importance of a Demo Account The chapter emphasizes the significance of understanding that trading is largely about managing percentages and probabilities. It clarifies that no trader has a 100% win rate; losses are part of the trading experience. Accepting this reality early in one's trading journey will facilitate growth and help in developing resilience. The chapter advocates for the use of a demo account to practice and refine skills without the pressure of losing real money. This approach allows beginners to learn from their mistakes and improve their strategies effectively.
• 10:30 - 12:30: Transitioning to a Live Account The chapter titled 'Transitioning to a Live Account' discusses the emotional stability required for successful trading. It warns against letting emotions take control, as this behavior indicates a lack of readiness for trading. It suggests that if someone is getting overly emotional about losses, it might mean they have over-risked or are trading too frequently. The chapter emphasizes the importance of maintaining a level-headed approach in the markets for making rational decisions.
• 12:30 - 17:30: Long-Term Perspective on Trading The chapter 'Long-Term Perspective on Trading' emphasizes the learning process in trading, particularly for beginners. It reassures new traders about the value of failure as an essential part of gaining knowledge and skills. Failure is framed not as a setback but as a crucial step in the learning journey, especially during the initial phases of trading. As newcomers generally practice using demo accounts, they are encouraged to embrace losing trades in this phase to learn and grow, ultimately developing a skill set that is more informed and refined through these experiences.
• 17:30 - 18:00: Final Thoughts on Embracing Losses and Continuous Learning In this chapter titled 'Final Thoughts on Embracing Losses and Continuous Learning', the speaker discusses the importance of viewing losses as learning opportunities, especially in the context of trading. They emphasize that while losing money is not ideal, particularly when dealing with large sums, at the learning stage, losses can provide valuable insights. The speaker appreciates the ability to analyze and understand market movements post-loss, fostering a mindset of continuous learning and improvement.

Boot Camp Day 11: How to take a Loss Transcription

• 00:00 - 00:30 yo what's good guys welcome to boot camp day I think 11. um let's get started okay today's another discipline video and since we're slowly starting to merge into like how to take trades I figured we teach the most important lesson also I'm sorry like if my voice is like very messed up right now I know um I got a super sore throat um so yeah gotta lube it up with this
• 00:30 - 01:00 water during this video anyways um yeah so what was I saying yeah this is going to be the most important video and it's understanding how to take a loss Okay so once again per usual on these on these discipline videos we don't do anything on charts we I'm just talking face to face and my face cam came but it doesn't work for my computer it will work for my PC so I'm sorry we will when it gets to the discipline videos it will eventually be just a full screen in my face but
• 01:00 - 01:30 right now if I make it full screen it's terrible quality so um yeah today is going to be on how to take a loss this is very very important um it teaches you a bunch of things teaches you literally discipline you have to be very disciplined in order to just like dude I took a loss today I lost nine thousand dollars today trading gu took this trade [ __ ] lost it um so right and did I Revenge trade did I try and trade again did I over leverage
• 01:30 - 02:00 no I I stuck to my rules I stuck to how much I wanted to risk and then you know rest from there nice and easy right so um with that being said let's get right into it jits okay so what is the most important thing to understand about taking a loss if you can realize that when you lose that is a part of the game that you are
• 02:00 - 02:30 going to lose that you should encourage it because it literally you know means you're [ __ ] human if you can have that mindset if you can be be almost happy when you see a loss because you know you're going to learn something from it if you can do that dude it will change the game for you I'll buy a million okay um so
• 02:30 - 03:00 understand that dude this game is all up percentages you're not going to be 100 from the field you're not it's impossible no profitable Trader ever has a 100 win rate that trades consistently no none of them do they always lose at least once okay it's just part of the game the market is built to beat you and the sooner you understand that the easier it will be for you to grow because when you start taking losses and
• 03:00 - 03:30 you get upset about it and you throw a fit that's literally the opposite of what you should be doing that's letting your emotions take over that's showing that you're you know emotionally unstable about the money that's in your trading account that probably means that you shouldn't be trading in the first place that probably means you over risked that probably means it was one of your like your fifth trade that day right come on guys let's be level-headed okay level headed in these markets so the first thing you need to understand
• 03:30 - 04:00 after this boot camp once you learn how to execute once you learn how to take a trade if you lose your first trade be happy okay the the person that fails a hundred times will have way more knowledge and way more skill than the person who never fails so that makes sense you learn from failing you learn from your mistakes so encourage it you're in your learning phase you're going to be trading on demo anyways you're not even going to be trading with real money encourage losing
• 04:00 - 04:30 obviously when you get to the point where you're trading with lots of money yeah you probably wouldn't want to lose you probably wouldn't encourage it but but at this level right here for me it's like hold up okay come here for me right now for me like I love when I take a loss because I can learn from it I get to study the market after my loss say okay well why did it move the way that it moved okay why did it why did it go
• 04:30 - 05:00 against me and right I'm not I'm not going to look back and think why did I take this trade I want to understand why didn't it go in my direction okay it's not oh I shouldn't have taken it for this this or this right because it's all probability who knows I could take the same exact setup tomorrow on a very similar pair some like all the same confluences and still win that's the crazy part about this stuff guys it this Market is so hard to master
• 05:00 - 05:30 because it's it's got like mixed personalities one day you can you know like no setup no setup is going oh every setup is like one of one right different marking conditions every single day different prices different things that it's going to react off of constantly constantly learning constantly reacting right it's an algorithm okay so with that knowledge right you should
• 05:30 - 06:00 encourage a loss learn from it okay and understand that you will you will never be a hundred percent from the field in this right and you miss 100 of the shots you don't take but also don't [ __ ] take too many shots right don't take too many trades okay but you get what I'm saying right you you're going to win some and you're going to lose some and at the beginning you're going to lose a lot but that's what teaches you that that's what helps you helps you learn the only way that I
• 06:00 - 06:30 was able to learn risk management was when I flipped 10K into 112k and then lost it all the next day that was the Catalyst to cause me to learn risk management because I lost so much money in one day okay encourage losing failure makes you grow makes you better okay and and if you have learned anything from this whole boot camp that's all we're trying to do we're trying to make you better people too okay this isn't just about trading
• 06:30 - 07:00 all right this is literally to like [ __ ] pull yourself up by the boots bro like come on let's be respectable young men all right yes that I like I can you know mess around mess around every now and then I can have my fun but let's come on let's focus up all right guys we're trying to improve and like even in life bro like if you guys can understand how to take a loss bro like okay we're we're in Puerto Rico my
• 07:00 - 07:30 friends were my friends were here this past week I was out you know having a good time in downtown okay I attempted to talk to like 30 different girls probably right talking to every single one right off if and if I lost it's like perfect on to the next and I was like who cares right she's gonna forget who I am she won't remember me because she said no right she said no so she's not gonna remember me but the girls that say yes
• 07:30 - 08:00 they remember me it's a win-win she says no perfect you were gonna waste your time trying to get her anyways so she just did she just helped you out understand that losing can benefit you in so many ways bro sorry boogies bugging out so now let's get into just how to take a loss so now that you have that mindset should be pretty [ __ ] easy to take the loss right I mean there's not much you got to do after that if you can encourage and
• 08:00 - 08:30 accept a loss and you can say damn that's damn it kind of sucks that I lost money but hey what can I learn from this how can I how can I you know make this an actual learning opportunity for me you know how can I use this to my advantage encourage it it's going to help you learn okay so what what do we do after that when we take a loss and we say okay good how can I learn from this perfect right learn from it okay figure out what you did wrong okay I don't but do not
• 08:30 - 09:00 get upset about it the minute you start getting upset the minute you start getting frustrated about losing means you are doing something wrong you have to tell yourself in that moment I am doing something wrong you literally are you're doing something wrong right there by by literally by by throwing a fit by throwing a temper tantrum you are doing something wrong back when I used to do the live trading videos you'd see me say stopped
• 09:00 - 09:30 out sometimes I'll you know throw a [ __ ] party for when take profits get hit but like that's just like that's like I'm just putting on a show for the YouTube video but um I mean like now when I'm trading with the Discord we had to take profit and I'm like cool tp1 hit on to the next you know like it's it's emotionless in this and the second you start oh my God what the [ __ ] bro cause I've been there I was a rage monster at this sorry um anyways I was a rage monster at this [ __ ] like I would lose and I would get
• 09:30 - 10:00 so mad I would literally scream into a pillow because I was so upset because I wanted to learn this so bad but I was doing it the wrong way I was doing it by trying to get rich quick okay and the sooner you understand that these early phases you're going to lose money and you can spend time losing money on demo and you don't need to Jump Right In you don't need to get rich quick because because that [ __ ] will come in due time that [ __ ] will come in due time okay
• 10:00 - 10:30 okay so all that [ __ ] will happen all that [ __ ] will come in due time okay it just takes time all right you gotta you gotta understand okay why wouldn't I want to lose money on a demo paper trading account and then once you learn the skill right it's like who like if you can trade profitably on demo there's yes it's a step up with Live account with a live account because then you start thinking about the money that's when it's like dude when you lose you're actually losing money but if you can go from being profitable on demo
• 10:30 - 11:00 it'll be like a one month turnaround literally just understand the skill I encourage you guys to be on demo practicing okay taking losses encouraging them figuring out how you can do better why you lost and it's not oh why can't I do this it's how can I learn from this not why can't I by saying can't can't is should not be in in your vocabulary bro it should not
• 11:00 - 11:30 okay it's only I will I am okay it's not I can't I will learn this okay understand that by trading on demo and losing on there instead of losing your own money you will save yourself a lot of money and save yourself a lot of just emotional trauma that these markets cause some people and myself included okay and from there once you understand the skill and you understand what you're supposed to do
• 11:30 - 12:00 boom now you can go on to a live account you'll probably lose for like a week or so because you're feeling emotional but you're gonna slap yourself in the face and you're just say okay I actually know what the [ __ ] I'm doing let me just go look back at that demo account right I'm profitable I know what I'm doing I'm [ __ ] profitable so now let me trade with my Live account I know what I'm doing and I'm not going to do anything different right follow that trading plan we'll talk about how to build a trading plan in this vid in this boot camp okay it's literally step by step by step be
• 12:00 - 12:30 robotic with this [ __ ] okay you are the algo you're the EA you're the trading bot treat yourself like that okay so right there's there's really not much else for you to do like understanding how to take a loss I don't know like that's that's pretty much it you just literally have to understand okay I can learn from this good let's encourage it okay when I do
• 12:30 - 13:00 when I do lose I'm willing to learn okay and when I lose I don't Revenge trade I don't over trade I don't react when I lose I don't react there should be no reaction besides happiness there should only be a positive reaction from from losing right how do you think if if anybody else lost like who else lost
• 13:00 - 13:30 10K who else is able to lose 10K and still be smiling talking about how how how they had a good day last night in this whole week right most people would be sick most people would be sick I lost that [ __ ] this morning I lost this [ __ ] like literally an hour ago bro and I'm still living my best life and I'm having a great time because I know hey this money's going to come right back I know I have the skill to make all that money back and I know I
• 13:30 - 14:00 can trade tomorrow right there's always another day there's always another setup these markets aren't going underwear anywhere underwear wow um these markets aren't going anywhere okay and when you and when you learn that the markets aren't going anywhere and there's going to be another trade tomorrow you start to realize why you want to take days off for news and that's a whole other thing that we'll get into right you'll start to understand why you're going to want to
• 14:00 - 14:30 take days off if you've been up late you're going to start to understand why you would rather take days off when you're least probable to actually win a trade that day whether it's from news whether it's from you breaking up with your girlfriend and it's actually like emotionally bad and if you lose that day you'll probably like actually react to it right it's understanding all those things and that'll come in time and you'll you know start to feel your feel yourself out with that but you just have to understand be in that open mindset of like yes it
• 14:30 - 15:00 will happen right let me stop that um yes that will happen to you okay you will get upset okay without a doubt but it's understanding and taking a step back right when that moment happens and think okay should I be doing this that's the hard part being able to be like okay like okay this was me overreacting I'm doing something that I shouldn't be
• 15:00 - 15:30 doing okay and then proceeding the correct way right make that reaction very minimal okay make that reaction not last very long and be conscious of it and he'll be well on your way with this because if you can understand that if you can understand how to take a loss it's pretty damn easy from there it's pretty [ __ ] easy from there you really at that point you really just gotta learn your strategy and just you know
• 15:30 - 16:00 take time in the market and understand how it moves because if you can nip if you can nip that [ __ ] in the butt what's holding what's holding you back from winning literally infinite amounts of money if you know your strategy and you understand how to take a loss and you understand that this is all just based off of probability and and you're playing a percentage game on the year term this is this is literally just a percent gain over a year bro stop thinking from the
• 16:00 - 16:30 day to day stop thinking from the week to weeks stop thinking from the month to month what's coming home in the year right and that's all that matters right what are what am I bringing in every single year what percentage game gain am I getting and if you can get that then [ __ ] you're doing real good in life because at that point then you just have capital that's the only issue you have left you
• 16:30 - 17:00 know how to trade the markets you're unfazed what's what's left to stop you from making infinite amounts of money the money that you have in your account so that's when you've got to start growing it and scaling it so with that being said hopefully I just encourage you guys to be happy about losses um hopefully this helps you guys switch your mindset about them it's not place blame it's not oh you know like the market it took me out it's no the
• 17:00 - 17:30 market was going to do what it wanted to do that was where the market was going to go it's not the Market's fault it's your fault so once you understand that it's your fault and you did something wrong you have to learn from it how can I get better it's not oh I got stopped out because of news it's not that right it's not oh I got stopped out by news it's oh I [ __ ] I I took the wrong trade yes news might have stopped you out but hey Mark you moved and you got soft out
• 17:30 - 18:00 learned from it oh maybe I shouldn't trade before news learning opportunities guys okay so with that being said I'll catch you guys tomorrow where we will wrap up our liquidity series all right peace