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Want to Learn How to Trade? Don't Read Books! (here's why...) - YouTube
Channel: ClayTrader
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no no no even worse The Hobbit yeah all
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right
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so trading books I think they're a joke
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and I have a lot of experience with
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trading books as you just saw I don't
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think they're worthwhile I don't think
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they actually produce any true results
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general knowledge yes but practical
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money-making results mmm not really and
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again this is not theory not only do I
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have personal experience with it but if
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you just look at the statistics out
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there and when you factor in that 90% of
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day traders some say 95% lose money
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hopefully we can agree on the logic that
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you know if if trading really was just
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as easy as reading a book then I mean
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could we agree that you know you would
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think success rates would at least be
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like 50% maybe 40% success you know you
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would think would be higher than a 90 95
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percent failure rate if it was just as
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easy as reading a book
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now books have their time in place I'm
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not saying that books are totally
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worthless
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like kind of I don't know what I'm I'm
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not a big believer in books and I'm
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gonna give it just one example out of
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many that are out there that explain why
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books just don't work and the problem
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well let me let me give some credits I
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don't want to be this I mean if you're
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just looking to figure out hey what is
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the stock market hey what what actually
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is a day trader what actually is you
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know a trend line then yeah a book can
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give you some good solid pictures but
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unfortunately there's more to being a
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consistent trader there's more de you
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know being a consistent and successful
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day trader or swing trader or investor
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Li then knowing what at redline is or
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knowing what a candlestick is are those
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things important yes
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can a book show you those things yes
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they can but that's just there's so much
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more to it that's pretty much like
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saying hey how does a bike work you're
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like oh well you you hop on and you
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pedal and then you go okay no no no how
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does a bike actually work explain to me
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how a bike works using force vectors and
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coefficients of friction and you know
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scientifically from a physics
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practive explained how a bike works and
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that most we were like oh yeah I guess
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from that point of view I don't really
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know how a bike works and the same is
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true with trading sure you can
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understand the basics but and a book can
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teach you that so our books totally
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worthless nos probably being a little
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bit dramatic in that sense but I'm
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assuming if you're watching this I'm
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assuming if you're getting into the
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financial markets and not necessarily
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the stock market or the forex market or
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futures market or any of those to the
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crypto market I'm assuming you actually
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want to make money so what is the
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problem the problem in like I said this
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is just one example that I'll go through
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and you know there's some practical
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information here that I want you to
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apply to yourself because maybe this is
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what's causing you to struggle or can
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can save you some headaches but this
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like said this is just one so I'm not
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saying this is the only issue but this
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from a general framework perspective
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just summarizes what's going on so I see
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this quite a bit and we have you know a
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trader over here Bob and Bob's read a
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bunch of books and within these books
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and you've maybe you've seen something
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similar to this he's learned about 5% 5%
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of what well you know what for risk
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management you only should use you only
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should put in you only should risk any
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variation 5% of the capital but all this
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has to do with risk right 5% that's what
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you should do and okay well that makes
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sense because you don't want to put in
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your whole account and so forgetting
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yeah that makes sense from a very
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textbook from a very theoretical
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standpoint well let's say that Bob is
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then going to use and I'm just making
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this up but a thousand dollars now a
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thousand dollars five percent that means
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you know right around or risk of $50 so
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what's the problem though well right now
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you're thinking well that's good I mean
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that is good risk manage that's true but
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again we're still in the pages of a book
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we're not in the real world of trading
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and part of the real world of trading
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our emotions our feelings it's a big
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psychological game and if Bob looks at
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that $50 so if he's looking at that and
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he's thinking
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the thought of losing $50 haw-haw so
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this is Bob's face hole losing $50 I
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don't care he could have the perfect
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understanding of a strategy he could
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have the perfect everything but if he's
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looking at that $50 knowing that that's
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what's at risk but he doesn't feel
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comfortable with losing $50 that trade
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plan is going out the window see you
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later
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doesn't matter I don't care what any
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book is telling you about 5% of risk
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capital if you are not actually okay
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with what that 5% is or whatever this
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number that's the textbook is telling
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you is if you're not okay with it okay
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with it we're no down here in your heart
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up here if you're not okay with $50 then
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you're gonna freak out you're never
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gonna be able to follow a trade plan
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even if the trade plan is flawlessly
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perfect so now if you're looking at $50
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and saying who cares well then that's a
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much different story which brings about
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something that I never had in any trade
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books I never read in anything and what
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Bob should really be doing is running
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what I like to call the nail-biting test
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so what is the nail-biting test well Bob
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needs to ask himself okay he knows based
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on the book 5% $50 so now he needs to
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ask himself okay well $50 right here
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biting nails I need an investment better
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chalk all right so biting nails meaning
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if he's putting $50 on the line and just
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the thought of losing $50 hasn't won huh
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$50 then you know what I don't care what
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this book says about 5% that it's not
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gonna work out but if he's looking and
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saying he's looking at $50 and saying no
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I'm not biting my nails I don't whatever
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who cares
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well then there you go once again very a
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very small thing Mayerson well I already
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know to do that well like I said but
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there's lots of other things like this
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pointer those little things at it that's
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not in a book
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now you need to realize that if you're
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not comfortable with the $50 it's not
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gonna work out so free for you maybe but
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what's a box is wall right well what
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happens if this number becomes $500 oh
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my god that's a lot of money well you
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know what
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at this point things need to shift
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around for me oh my nail-biting test
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I'll look at five $50 and I'll say this
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in a cocky way it's just everybody's
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different everything is you know
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relative and subjective but $50 yeah
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whatever $500 yeah you know $5,000 oh my
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that's like that's a lot but that's
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that's like an all-inclusive vacation
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down to Mexico or probably couple off
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own depending on where you stay so for
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me $5,000 I don't want to be risking
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that in a single trade so that that's
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where I am and if you just ask yourself
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very powerful question am I going to be
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biting my nails the nail biting test
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you're gonna start to quickly figure out
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where does your personal risk tolerance
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fall now also full disclaimer I could be
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wrong maybe there is a book out there
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that talks about the nail biting test
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but in the one the books that I own
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which you saw a few of them there when I
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was getting started I I never learned
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about anything like this I was just
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always said it was you know yet you
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enter in only 5% of your capital or
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another classic is well as soon as the
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stock goes exit percent against you so
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as soon as the stock goes 5% against you
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get out but that if only it were that
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easy and I'm not gonna go into why the
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whole well if as soon as it goes 5% get
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out it is silly but those are just the
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things were and again I don't have any
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proof I don't have any detail but where
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I am now and not and I don't say that in
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a sense of a massively successful trader
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I'm so good just where I am now in the
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sense of I've trade in the market I've
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experienced ups and downs I've met the
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voices that s traders have in our heads
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I makes me really wonder to have any of
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those who authors ever actually traded
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or are they just really good at Theory
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thrown around mathematical formulas and
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all that sort of stuff again maybe they
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have traded and all that but it makes me
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wonder now that I've been through kind
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of the ups and downs of being a traitor
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and I've gone and maybe you feel the
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same way and I'm not saying you have to
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be massively successful either I'm just
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saying after you've traded and you look
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back at what you used to read maybe feel
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a like yeah what I see what they're
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saying but in practicality that's not
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really how it plays out so that is why I
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don't think trading books are worth
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it because a lot of other places you can
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get these things along with the general
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knowledge also all in one place but as a
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whole and I'm never gonna tell anybody
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not to read a book all I will say is
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it's more there's more to it than just
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reading a book and like in the comment
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section can can you let me know down
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below all right can you experience this
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where you've read some books and now
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that you have a lot of experience in the
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markets you kind of look back to those
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books and say yeah I'm not quite sure if
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that authors ever actually traded a
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stock or a Forex pairing or whatever
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before and is in their life because what
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they described yeah it sounds good
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on the pages of a piece of paper but
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once you get into the reality of it
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things seem a little shaky so I don't
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let me know your experience with this
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down in the comment section now I know
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there's gonna be something that's like
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nope I've read books and I'm a
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multi-millionaire and I suppose that's
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possible Bob and the pie also include a
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disclaimer or an affiliate link to the
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book that they wrote that they want you
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to now go buy an Amazon but no I'm just
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kidding because I would delete that
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immediately an art YouTube would mark it
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as spam but I don't let me know down in
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your in the comment section below what
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your experience with this is and now I
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should know before I forget any book you
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can find on trading psychology those are
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definitely worth reading and look
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learning into in fact down below I'll
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put a link to a trading psychology book
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that I think is very well worth it
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because this is those aren't really how
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to trade books they're just how to deal
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with the psychological pressures that
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occur to us as traders so I do that I
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remember to say that because that is one
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set of trading books that I do believe
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there to be value it's just any book
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that has to do with trading psychology
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then also I will say that books that are
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more so you know kind of biographical
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just talking about the life of a trader
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or the life of really any successful
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person I think those have a lot of value
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because those are just good for
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motivation good for inspiration good to
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see what people had to go through in
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order to make things happen but you know
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the books that I got and
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very very shaky territory and like I
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said this is just one example of how
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things can be great on a page of a book
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but then in practicality there's a whole
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lot of disconnect so like I said let me
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know your thoughts down below in the
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comment section hit that like button and
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I will see you back for the next video
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thanks for hanging out first off thanks
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so much for watching the entire video
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real quick before you go I want to
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invite you to a live webinar web class
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training workshop online event whatever
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you want to call it but it will be me
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live revealing to you what I discovered
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that has allowed me to transform myself
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from being an employee to being my own
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boss
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including how I had only one losing day
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out of 73 days in total I'm going to
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cover three keys that have helped me
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unlock profitable consistency within the
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markets the first key is super-weird but
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in a productive type of way the second
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key is super awesome because it quite
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literally is wired into our DNA as
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humans making it very easy to use but in
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a cruel way this becomes a pitfall for
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many traders I'll explain it all though
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including how to avoid the pitfall that
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it creates for some and yeah the third
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key when you hear it sounds way to get
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way too good to be true but it's not and
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I'll show you how it all works then at
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the end I open it up for a
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question-and-answer session that is
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again totally live even if you can't
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make the live session please still sign
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up as it will be recorded and you can go
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back and watch the replay that I will
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send you click the image on the screen
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or click the link down in the
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description box so you can get the date
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and time and claim your spot which I
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should know is limited due to the fact
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that this truly is a live event if you
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have any questions let me know if not
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I'll be seeing you soon
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