Why most traders can make 1k but not 100k? http://www.financial-spread-betting.com/Making-a-living-spreads.html PLEASE LIKE AND SHARE THIS VIDEO SO WE CAN DO MORE! Why is it the case that many traders out there can make GBP1000 relatively easily but not a GBP100,000. The obvious reason is people's account size; if you're trading GBP1 pounds a point or GBP5 pounds a point or GBP10 pounts a point it is very hard to make 100k trading in small size. But there is something more fundamental about that and that is people focusing on the money instead of the process. We've mentioned this before - people keep focusing on the money - how much they've made or how much they are ahead but you need to shift the focus from the money to the process and that's how you go from making small amounts of money to larger amounts of money if you're starting with a small account. They don't think about how much they're making or how much they're losing - yes they calculate how much is at risk because they have to manage the risk but that's it. The majority of people are saying - that's my mortgage pay, that's a big tv...etc and they're anchoring their performance based on how much value that money is in the real world and that changes the psychology since in such cases people will want to take money off the table. People who focus solely on the process - are you sticking to your trading plan, are you managing the trade correctly?, do I need to add to the trade?..etc That's why people who trade in prop firms are able to scale up because once they've demonstrated their skill they are encouraged to trade in bigger size by trusting them with more monies. If you want to make more money on trade then obviously you have to increase your position size...
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I have started trading with 4600, went up to 5600, now again down to 1700..., I’m new to trade just trying to learn what will work with me. Emotionally, I feel very down, I think, in trading more is emotional part. When I trade, I calculate my expenses and see if next trade will help me to pay my bills which is I’m not sure will give me any benefit. But I trade and lose. Yes, This man is right, we need to look on the process side, not on the money side, but someone like me who does not know the process how can deal with trading. I will say to start winning big money, I should know the process, then I will be able to make some money. I literally don’t know why prices are moving in either direction.
In my opinion this strategy is good for swing traders. Day trading you take profits always and repeat process. Also most successful intuitional traders don’t trade with their money. So it easy to emotionally detach yourself.
I think one has to find the best trading style/strategy that fits the personality of the trader. I found it in swing trading and "set and forget" approach. I do my analysis once a week, I enter my orders with take profit and stop loss and I forget about it. I let the system work for me. I risk maximum 2% of my account and I keep the trade open until it hits TP or SL. Or on fridays I close before end of market hours so I do not hold positions over weekend. This suita me best. People tend to change their plans while trading and that causes losses. Just focus on % and follow your plan 100% of the time.
If they focus on how much they could potentially lose rather than how much they could potentially make , they can eventually get to 100K .. After all , you never get what you expect in the markets , you always get what you deserve..
I so relate to this and I feel I am missing out of good trading setups. I keep anchoring the profits I make to what I can buy and visa versa on my losses. This anxiety keeps me from keeping my gains. When I lose I don't trade for weeks in case I lose more money. So I just watch the trades pass by each day when I sign into my trading platform. I need to start thinking differently!
Great video. It is really the mental aspect that the traders have to deal with more than the actual trade. I think what you meant is the system and not the process. Maybe most of the traders do not trust their system yet and that's why they cannot bet big yet. But then again as you mentioned, most traders lose $1000 and gain the same amount but seldom lose $100k and gain the same amount. It is really a mental aspect that most traders need to overcome.
To an extent you youtube traders are full of 💩! As long as you're making good trades your gains will add up. Then you're getting into bigger and bigger positions. I'm sick of you fakes that think you have all the answers! 90% of people fail because of people like you. THE END.
Good information I've just subscribed, hard to find traders doing reverse psychology on oneself to bolster the truth of the process in which we get emotional with... So the morel is the strategy we use works ! Keep your money on the table, set goals and don't trade emotionally....my brother and i bounce off each other like this reaffirming our trading plan and goals... Many blessings Thorn..
good video. He's right about the process. It's also scaling and planning that trade from beginning to end. Once one can annotate and calculate expected stock move. position size comes into play. Then finally ones ability to follow their own trading rules.
is there a definition when we can call someone a trader. You used in sentence "most traders" ...For me a trader is a person whos trading is profitable, not a person who is trading. Anyone can download a software , top up the account and strart making trades. where is the line ??? :)
i trained as a psychologist years ago and now, not knowing why im attrcted to the market, the first thing i will say is there is no free money, second, the market wants you too loose your cash in to the market, you pay the industry proffits end of story
This is not a very good video. The author uses the word "process" to define the reason why traders cannot jump from a $1k win to a $100k win. Every trader knows how much capital (Portfolio A)is needed to set up, and risk manage a trade with the prospect of harvesting $1k. There is no super trader in the world who can take over Portfolio A and set up trades to win $100k. It seems to me that the purpose of the video is to say: "if you want to learn the process, buy my book."
The best advice I read about position size goes along with what you say at 7:00 about being comfortable with how much your can lose. I think it was by Adam Grimes, who wrote “The Art and Science of Technical Analysis.” He basically said that, if you’re worried and sweating about how much you might lose, then your position size is too large.
I am new to trading but as one of the top 8% students in my college, I can tell you this guy is absolutely correct. How? well, everyone in the class usually runs after grades and they get nothing. I don't give a shit about them and instead try to learn whatever the institution has to offer so at the end of the day, I don't just have a paper that says "degree" but the knowledge in that field. And that automatically results in better grades.
Well I dont have the time to trade because of my company, and really my opinion is............. I find trading boring sorry. Watching charts all day and looking for chances compare and watch the news that's not my kind of challenge.
That's why I use EA's and I developed the last 2,5 years with a a few guys with the same mind, different EA's with different strategies, settings and lotsizes and we tested them extensive with extreme lotsizes to see how far we could go.
I make no joke if we have EA's which can make you 100% a month but they also can blowup if you have a bad week. So that's not for everybodies risk appetite.
First we had a powerful EA developed in 2016 without stoploss and it worked for about 8 months on 12 pairs and made good profit until the USD collapsed this year half april when Trump opened his mouth and we got a serious negative FPL (Floating Profit/Loss) which we are still struggling with.
But now we use EA's with stoploss and compounding lotsize and it works great with 30% profit a month on SAFE settings. Ofcourse you have sometimes a week with negative results but that's normal in trading, even for the professionals. On LOW RISK setting it can make between 35% and 50% profit a month and if you compound the lotsizes it can grow big in a year,
And I personally use still the EA's without stoploss son big risk lotsize but with a small starting accountsize that also function as a stoploss. So accountbalance is the stoploss
These EA's can turn €1000 in €50.000 in 6 months in forward testing and with compounding lotsize as well. And even if it fails several times at the end you make a lot of profit.
So to take a big risk is not a jump into the deep but it can be a strategy, not put your whole trading capital in but just put a small amount on big risk settings an see where it goes.
You can join us at the whatsapp chat and you can follow our demo and live test accounts with an investor password.
You've actually pointed out and clarified the mistake I made just yesterday!! You are absolutely right about the fear factor, of course, and I must understand that "losing" is a part of process, too...!! :-(
2 Thumbs Up! THANK YOU. I needed to hear this: this very morning, as I sit at my desk, in my home office, a retail trader on Holiday, pondering my trading goals for 2018. Your wisdom does indeed resonate with the same counsel that top tier athletes get from their own coaches.
Unfortunately it sometimes happens in the fund management industry. So many investors are naive and invest their money without so much thought which is strange given how hard they have worked for it. The person who cares the most about your money should be yourself!
Just ignore the troll. Your videos are relevant and on point. From an ex trader. I got round this conundrum by dropping to 00's off the amount I was trading. So 1000 is 100 and 10,000 is 100. You become less scared when trading size. Also follow the 1/3 rule when in profit. 1/3 for a reserve account, 1/3 stay's in the account to build it up and 1/3 to Piss up against the wall and spend.
After watching every one of these videos I am finally profitable again. It's nice to find someone who has the heart to help people out like me by taking time out of their day to make these golden nuggets of advice FOR FREE, so please, UK financial spread betting, don't stop making these videos.
i love ur down to bottomline xplanations.......but i wud say difference btw 1000 1000000 is not just process...its lack of trust on their process and ability to cut losses and if required flip the trade on the other side.............took me 10 yrs.,.but damn the freedom and mental agility is priceless and profitable.......and learn to scale in
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