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What's up everybody? Welcome back to the Traers Code podcast.
Today we're going to be breaking down what actually separates profitable traders from everybody else. The traits, the mindset, the system, and the standards that
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compound over years. Let's get into it.
Now, there are five traits that every ultra successful traders share. The illusions of grand, a constant feeling of not being good enough, maniacal discipline to delay gratification,
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ruthless consistency, and deep humility. The first trait is delusions of grandeur.
What I mean by that is that you need to have this strong belief in something before you can set out to achieve it. Openenheimer believed that the what nuclear atomic bomb could be
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built before he go out there and build it. Steve Jobs believed that he could actually, you know, put a computer into something as thin as like a iPhone, like as thin as a book before he set out to do it.
And Alexander the Great believed that you could conquer the world before he could do it, right? So, you need to
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have like this audacity to think that you can beat the market. And you need to have this vision that is so big that it looks insane to others.
Because as cliche as that might sound, but if your friends are not laughing at your goals, your goals ain't big enough. Right?
So
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this is the fuel, the fire that you need. It's the unreasonable belief that you need to possess before you can actually set out to conquer what you set out to achieve.
The next trait is a constant feeling of not being good enough. This is essentially like the
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chip on your shoulder that never leave. So I was listening to this podcast the other day and it was talking about the biography of Jensen Hang which is the founder of Nvidia.
And what Jensen Hang basically does is that every single day he look in the mirror and he tell
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himself you ain't [ __ ] and we are 30 days from going out of business. And this keeps him from you know being humble and you know just keep on never getting complacent and just keep on grinding because he have this evergreen sense of you know just never being good
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enough and that is how he pretty much uses this sense of dissatisfaction as rocket fuel to continue to improve the microchips the semiconductor chips and Nvidia the AI department and everything right so it's like you need to have this
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feeling where you just inch it right this way you keep on climbing the mountain and you never just like reach the mountain peak and start getting complacent. Remember, you should never ever try to arrive at a destination.
You should always try to climb the mountain.
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Right? So, like I always say, there is no [ __ ] finish line.
The third trait is a maniacal discipline to delay gratification. And what I mean by that is that you need to have this very strong willpower to say no to the instant pleasure to the short-term fun
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so that you can actually get the long-term gain so that you can actually compound your gains in the future. You need to be able to say no to the marshmallow right now so that you can get 10 marshmallows in the future.
Right? So you need to be able to like just be disciplined and just put in the
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work for an extended period of time even when nobody's watching. And you need to be able to like just be okay with not getting the gratification and the pleasure and the fun right now so that eventually you will get more of that in
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the future. Right?
So gratification delayed is essentially gratification multiplied. So if you're able to like just say no for an extended period of time, eventually the yes is going to be like such a huge yes.
like you're just going to be able to get such a huge
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amount of like reward that is actually insane or because you keep on saying no for like freaking one year straight. And the fourth trait is ruthless consistency.
It's pretty much showing up when you don't feel like it. It's executing your trade plan when the results aren't showing.
It's journaling
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when you have just encountered a losing streak, right? Like there is no excuses, no exceptions, no negotiating with your inner [ __ ] You just do the work that is necessary.
You just consistently build the relentless machine of daily
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execution. That's what it means to be consistent ruthlessly.
And the last trait is deep humility, right? It's like for the first four traits, you know, we're talking about grinding and like just becoming as good as humanly possible, becoming as competent as humanly possible.
But the last trait is
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humility. You need to have like this sense of you ain't [ __ ] right?
You need to have this sense of knowing that the market can destroy you at any moment. The moment you start getting complacent, the moment you start thinking that you know it all, that is the moment where
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you're going to start to spiral into this downfall, right? Like you're just going to like lose everything you can potentially have because you think you're the [ __ ] And that's pretty much how empires collapse over time, right?
They think that they are the [ __ ] And then the king starts getting complacent, the soldiers start getting complacent,
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right? They enjoy the good times.
They enjoy the food, enjoy the women, and then they start getting weak and then someone who is more hungry inevitably comes up and take over the kingdom, take over the empire. It's the same thing right here, right?
You need to be able
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to respect the randomness, luck, and forces in the market that is beyond our control. Because if you don't, then one big loss is all it takes to wipe you out, right?
And at the same time, you need to once again have the
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humility to learn from your losses without having like this sense of, you know, trying to defend your ego, trying to prove to the market that you're right. And that's simply like a paradox that every trader must face.
You must have boss deep conviction and confidence
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in the process while having humility about the outcomes. all accepting the uncertain nature of the market and the fact that at any given time your trades could potentially go wrong.
So that's the paradox, right? And you realize that all five of these traits, they
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contradict each other, but they all coexist in every single ultra successful person that I personally know. Whether that's a trader, whether that's an entrepreneur, whether that's an athlete, whether that's a artist, right?
They all
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possess these five traits. I only play games where the odds are in my favor.
I only trade when the confluences justify the risk. I only invest in stocks within my circle of competence.
I only give advice when I have skin in the game. I
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only speak on what I've lived. I'm not going to tell you how to make a million dollars a month from trading because I haven't done it myself.
I'm not going to tell you what are the best meme coins to buy because I haven't bought any meme coins myself. I'm not
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going to enter into trades which is low probability because that's a simply waste of my capital. And that's what it means to have this radical selectivity in trading and in life.
[snorts] Like I said, the hardest part about
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trading is not spotting the A+ setups. It's not deciding when to trade.
It's saying no to everything else. It's deciding when not to trade.
It's deciding what not to trade. It's being able to pass on the
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opportunities that are not yours to begin with. And that is a superpower.
The ability to say no to the things that don't move you closer towards your goals. I fundamentally believe that that should be a competitive advantage.
It's not the fact that you can do everything.
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It's the fact that you can do a certain thing extremely well better than the rest of the people in that particular niche. That's how you win, right?
Like you don't win by trying to becoming a jerk of all trades and master of none. No, you win by building immense depth on a
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topic, on a niche, on a market that you're trying to master and just ignoring everything else. If you want to get wiser, don't read philosophy.
Read the works of Naval Ravikhan, Nasim Taylor, Sam Harris, and Shane Parish and
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even Charlie Mongal. Now when I started this self-improvement, self-development journey, whatever mental masturbation term you like to call it, I love reading philosophy.
I read about meditations by Marcus Aurelius. I read Senal, I read
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Plato, I let Ni, I let Chopenhau, I read all of these philosophers who are trying to figure out the meaning of life and like what is the best way to actually live a good and meaningful life. And what I've realized is that a lot of these philosophers, they are great,
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right? I love them.
They stimulate my mind a lot, but they kind of lack substance. Not that they lack substance, but like they say one thing and they write paragraph and stories elaborating
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on that one thing, which means that you can literally just get the one lesson and just [ __ ] off. What I mean by that is that when I read one of the letters from a story called Sagal, it's pretty much him detailing his life and his advice to this young girl menty that he
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potentially had. I forgot what's the exact name, but it's probably like Lucilius or something where he was pretty much giving advice to Lucilius, right?
And I read and read and read. I spent like freaking five minutes reading the entire chapter, the entire letter itself.
And I got the core essence of
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the letter, which is don't try to seek more, try to be okay with less. Like that's it, right?
That's the moral of the lesson. But that one sentence, that one lesson is hidden, buried in hundreds of words, right?
So it's like if you
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want to learn better and you want to just learn more mental models and actually be more efficient with absorbing new information, you're much more better off learning from these modern philosophers that I just laid out. Right?
Naval Ravihan taught me about wealth, happiness, and philosophy.
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Nasim taught me about anti-fragility and the probabistic nature of the markets. Sam Harris taught me about consciousness.
And Shane Parish taught me about mental models while Charlie Manger taught me about the different psychology biases that an investor and a
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trader will face and how to conquer them. Right?
So it's like all of these thinkers pretty much rewire my operating system. So I really believe that there is not much good trading books out there.
You're much more better off reading these writers that I just laid out for you and think about how all of
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their concepts apply to the financial markets and even in life, right? So yeah, those are like the best people I've read so far in my entire life.
I think those works are worth rereading over and over again. If your strategy is no longer working in the current market
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conditions, adapt. You will not die from a bad quarter, but your trading will if you don't adapt.
So you must understand that markets just like creatures, just like humans, animals, insect, birds, we are all living organisms which means
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that we are constantly evolving and this also means that your strategy has an expiration date whether you accept it or not. It's like eventually it's going to stop working.
Which means that if you keep on using the same strategy for the next five to 10 years, then you
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shouldn't be surprised when you realize that your result starts becoming inconsistent because market conditions have changed. And if your strategy hasn't changed, then you are just using the wrong strategy in the wrong market condition or the right strategy in the
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wrong market conditions. Right?
You can see like there's this mismatch right here. Which is why it's imperative for you to actually know when your edge is degrading, when your edge is no longer working, right?
Like you need to be able to have like this awareness as you go
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through the data to see that okay, why is my results becoming this [ __ ] Is it because of variance or is it because of the fact that my strategy is actually slowly deteriorating? And there's this dilemma right here, right?
It's like we want to stay loyal to our strategy but
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at the same time we also want to stay loyal to making money but the thing is like you cannot have both right if you want to make money then you have to constantly think about how you can adapt and tweak and iterate your trade plan so that you can actually make more money right which means that you cannot be
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fixated on a trading plan that you have created forever right you need to use the data that you have collected to improve on the trade plan to iterate on it to create multiple var variations of it to create uh different versions of it
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so they can actually test it simultaneously so they can actually get better results. I'll give you like a quick example.
So before the coid9 pandemic right before 2020 a lot of people were trading news right and news was like quite reliable. If CPI comes
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out and it bits the expected numbers, then most likely USD is going to like go up, right? Like that is like pretty much the consensus when it comes to trading news, which means that we're going to be entering for longs, right?
If CPI actually beat the expected numbers, the actual numbers beat the expected
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numbers. But then after 2020 when there's like a boom in terms of like retail trading volume, more traders start getting into the market, that is where there's more market manipulation, right?
And now CPI actual numbers can beat expected numbers but US dollar can
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go down even though it's supposed to go up right but that's really because of the fact that the nature of the market has changed the environment of the market has changed right the market has completely evolved because if it was as simple as okay CPI goes up uh then this means that you should buy then everybody
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will be making millions but it doesn't work that way and that's pretty much like one of these example where if you are just stubbornly sticking to your fundamentals and your old way of doing things, then you're going to get left behind, right? It's like the guys, the old guys from the 1960s who refuse to
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use an iPhone, who refuse to adopt technology. As a result, they're going to die, right?
Like that's it. So, end of the day, you must understand just like what Charles Darwin said, adaptation isn't abandoning principles.
It's simply updating your tactics. It's
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simply updating your features. It's simply updating your characteristics so that you can actually behave in this new environment.
Markets evolve, human nature doesn't. Market conditions change.
Human emotions don't. The only
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constant in trading is two things. It's fear and it's greed.
And that's what drive the market. And this is also why there is the tulip mania, the gold rush, the dot baba, the cryptoba, the AI baba.
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They all look identical even though they are centuries apart. Is because they are all fueled by human emotions.
Which means that once again the markets might change, right? The market might evolve, the game, the rules of the game might change, but the participants will never
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change. And the participants is humans like us, right?
is how we think, how we feel, how we act. This is why it's so important for you to understand mass psychology, for you to understand human nature.
Because the only reason why technical
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analysis works, right? Chart patterns, candlestick patterns work is because humans tend to repeat patterns, right?
So, it's like a self-fulfilling prophecy. Everybody start knowing that when there's a double bottom, they should enter for a buy.
And now everybody see the same exact pattern and everybody does the same exact action,
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which is enter for a buy. And that is exactly why double bottom tends to work sometimes.
It's because humans are repeating these patterns that they have seen over and over again. That is why I believe that the edge here is understanding yourself, understanding the market participants and
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understanding the market as a whole. No trade is wasted even if you don't see immediate results because every buy or sell is a vote for the trader you want to become.
Like I always say, you don't become successful from one winning trade, from one big win. It's built over
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thousands executed with discipline. You don't become a failure from one losing trade.
It's lost over thousands done carelessly. And that's what I deem as the thousand trade fallacy.
And that's what I deem as the one trade fallacy. So the next time you're about to enter into
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a trade, remember that every decision is a vote for the trader that you are becoming. So the question becomes, are you putting in a good vote or a bad vote?
Because the votes that compound are things like patience, discipline,
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and selectivity. And the votes that tend to cause your trading performance and your identity to be ruined over time is impatience, fear, scarcity, resentment, frustration.
So instead of focusing on how much money you could
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potentially make from this trade, think about who are you becoming with each decision that you make in the market. Because there are sometimes where you follow your trading plan, you do everything right, and you still lose money.
And if that's the case, those aren't bad trades. Those are actually
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good traits because you actually voted for yourself to become a disciplined, a calm, a focus and a detach and a profitable trader because you followed the damn plan. So instead of like lamenting on your loss even though you follow your plan, you should be giving
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yourself a pat on your back because you did after all the thing that is necessary for you to build the identity that you are trying to become. boring pace.
It's waiting for the A+ setup that checks off every single box and saying
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no to any subpart trades in the meantime. It's journaling after a losing streak when you least want to.
It's reviewing on a Sunday while everybody else is watching freaking movies. Remember, the most profitable thing you
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can do in trading is to do nothing. Is to wait for the opportunities to appear in the market.
And that is why I always say that the traders who are incredibly patient are going to be extracting and taking money
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from the traders who are not impatient. No, who are not patient because majority of the traders out there are trading just for the sake of getting action, right?
They are addicted to the adrenaline. They're addicted to misery and suffering and actually losing money than actually trying to make money
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yourself. Because if you genuinely do want to make money, you're much better off just sitting on your hands waiting for the best setups and allocating your capital when do appear.
Because in trading, less is always more. The trader who does less makes more.
I'll rather
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wait 12 days for one setup I will remember for a lifetime then rush into a setup in 12 minutes and forget it in a minute. I always prioritize quality over quantity when it comes to the type of trades that I take because I believe
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that there are two types of trades. There are your memorable trades and then there are your forgettable trades.
Memorable trades are those A+ setups, those high conviction setups where you execute the plan perfectly, you know, textbook result. You it's like pretty much you enter the bread and butter setup which you know for a fact that
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works. And then there's your forgettable trades.
forgettable traits are those traits that they take out of um emotions that are FOMO driven that are rush that are not well thought out. Two types of trades you decide which one you want to take more of because whichever you take
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more of those are the those are going to be generating the results that you deserve. And the thing is like when you are waiting so long for a setup it also trains and builds the muscle of delay gratification.
It allows you to be more patient as well
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compared to if you're just rushing to trade or just forcing trades when there's no opportunity, overtrading, all that stuff. All of this creates your forgettable trades which allows you to get bad results.
The fastest way to get depressed as a trader is to measure your
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progress via your daily and weekly P&L. Start measuring it by reviewing monthly, quarterly, and annually growth.
That's what it actually means to be consistently profitable. Now, the reason why I don't like
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measuring my trading performance using the short-term results like daily, weekly, P&L is because a lot of these results are purely variance, right? It's purely dual to luck.
Like I can make money and win 10 trades this week, but
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that doesn't mean that my strategy work. Similarly, if I lose five trades in a row today, that doesn't mean that my trading strategy sucks or I'm bad at trading.
It could be simply due to the market conditions or luck, right? So, you're much more better off analyzing your trading performance from like a
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longer time horizon, from like a monthly perspective to start seeing any patterns that are emerging, from a quarterly perspective to start seeing your systems actual performance. And from an annual perspective to see you know your results
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start compounding and see whether you are actually outpacing the stock market index. And trust me when you start like zooming out and look at your trading performance from like a bird eyes view like a high level perspective this is where you're going to get like so much
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more happier and fulfilled because now you know that dude I've just made 8% in the year. like that's already like better than the stock market and that's a win that is worth celebrating even though there were some months which I was rate I only became profitable when I redefined success success used to be
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about how much profit I have made for the day nowadays it's about how much closer am I to the trader that I want to become and that's the mentality that you need to adopt because you can't lose if you're getting 1% better every single
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day if that's your definition of success is to become a skilled trader. And when I have this identity shift, it started changing everything.
Because I used to judge my trading success via how much money I make a day, via dollars per day,
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which is a trap, right? Because if I make money, I feel good.
If I lose money, I feel like [ __ ] And I pretty much changed the success matrix to now being the distance, the proximity to the ideal self. It's like how close am I to
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becoming the fullest potential of myself, right? Like like this is Brett at 40, you know, because like the most disciplined, calm, and professional and profitable and like handsome trader ever.
And like this is me right now. So,
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as long as I'm inching closer towards that guy, I'm good, man. Like it doesn't matter how much money I make, but as long as I'm inching closer towards that guy, that's a win to me, right?
That's a win worth celebrating. So that is the mindset which pretty much changed everything because now instead of
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focusing on freaking making 10% a day, I'm focusing on just getting 1% better every single day because I know for a fact that these little gains, these marginal gains, they will eventually compound over time. And when they do, you're going to start seeing this
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exponential results in year three, year five, year six, year seven, year 10. Best part is if you can adopt this mentality, you simply can't lose.
You can't lose even though you're down $10,000. You can't lose even you have blown your seventh account because the
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goal is not to make money. The goal is to improve as a trader.
Which means that if you're improving, who cares how much money you are losing or making because eventually you are going to develop the skill set of profitable trading. You are eventually going to gain mastery over
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your strategy and eventually the money will come. But the money will not come when you focus on the money.
You focus on becoming a skilled trader. Then the money will come because the trader you are becoming right now will essentially
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create the wealth that you are chasing. This is my five-step process that I use to become a millionaire trader.
Record the trades daily. Review them weekly.
Reflect on them monthly. Refine your plan quarterly and reassess your goals annually and then just repeat them over
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and over again for the rest of your life. This is the ultimate feedback loop for continuous improvement.
If you do these things for five years, for 10 years, I triple guarantee you will become the most profitable trader
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on earth. So basically, you want to record trades daily by journaling your trades, capturing the context, the emotions, and your thesis in real time.
And then you want to review those trades on a weekly basis at the end of each week where you start to recognize patterns, what worked and what didn't.
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And then you want to reflect on your trading performance monthly. This is where you zoom out.
You try to connect the dots, right? Try to look for themes in psychology.
And then you refine your trading plan quarterly, right? You iterate on your trade plan.
You update certain rules. You try to adapt the new
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strategy to the new market conditions and then you reassess your entire trading performance and your goals annually. Okay.
So this is where you look at the big picture to see whether you are closer towards your goals, whether you are aligned with your goals and the identity that you're trying to
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shift into and whether it still fits into your life as a whole. And the thing about this process is that it's boring but it works.
And the thing is 99% of traders they skip this. They don't bother doing this.
As a result, they
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just stay stuck because they're like just practicing and trading more and more and more without giving themsel the time and the space that is needed to introspect and reflect. And if they just don't do that, then guess what?
They just become better at losing. they just become more fluent in repeating bad
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habits because they don't have the awareness of like what's going wrong, what's going right, and how to actually get better. So yeah, those are the fivestep process.
Like I said, this is not a phase. This is not something they do once in a while.
No, this is something they'll do for the rest of
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your life. If you can do these five steps for the rest of your life, like I said, you will become highly successful at trading.
My superpower is not my ability to work 16hour days. It's my ability to hold myself accountable 247
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365. Now you know nowadays there's this like hustle culture right where oh you got to work long hours, you got to work hard.
But the thing is working hard doesn't equal results. Just because you work 16 hours doesn't mean that you are necessarily getting more done compared
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to the other person who's working two hours a day. Later on I will talk more about like the difference between effectiveness and efficiency.
But basically the edge here isn't working hard. The edge here is unwavering personal accountability.
It's the
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ability to self motivate. It's the ability to like just push yourself even when things get tough.
It's the ability to just continue showing up even though you don't feel like it. Right?
Even though your emotions are saying that no you shouldn't. Even though your legs are a little bit sore, you continue put on
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the shoes and you go and run anyways. That is what I define as selfacountability.
The important part is the self. Self accountability requires you to be accountable to your own standards that you have set for yourself.
Not on outcomes, not on external results, but
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based on your own standards. And when I say 247365, I really mean there is no excuses, no exceptions, no off days.
You do what needs to be done. You just focus on judging yourself by
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your internal scoreboard rather than on external validation. Okay, these are the things that I need to do today and I'm not going to negotiate with my inner [ __ ] no matter what.
I'm just going to set out and do those stuff right there because if I do those stuff, that's a win to me. That's a perfect day to me.
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Yeah. So, that's pretty much it.
Like this is also why a lot of people when they quit their job they they start to like spiral into depression because they just can't be their own boss right they just can't hold themselves accountable you know like once they start realizing that they don't have a schedule they
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don't have a boss to answer to they don't have motivation they don't have external inspiration they don't have colleagues pushing them they start slacking off right they they start don't know what to do and as a result they become laws and directionisters all because they lack selfacountability so that is my greatest superpower or the
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ability to keep myself accountable at all times. When I start to notice myself getting a little bit complacent, I purposely push myself off the mountain top so I can get back onto the climb and onto the grind itself.
When I notice myself, you know, like just not feeling like doing any work, I just remind
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myself what needs to be done and what's my strong why? Why am I doing this?
And I just do the work. Like that's it, man.
There is really like nothing else to say except for the fact that this is what it takes to succeed. You don't need signals or mentorship.
You know exactly what you
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need to do to become profitable. You just choose not to do it.
So if that's the case, you just need someone to keep you accountable. And the thing is, if you know what to do and you have been doing it for a long time and you are still not profitable, then you're
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probably just doing the wrong things. So in this case you need someone to tell you what you are doing wrong.
And the question here isn't how do I find that someone but why don't you be that someone? Why don't you be the person that keeps you accountable?
Why don't
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you be the person who actually review what's going wrong so they can actually improve? And I think like that's the inconvenient truth.
I fundamentally believe that every single trader knows what to do. They just don't do it.
And as a result, they rely on this sickness as crutches
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because they want to avoid personal responsibility. And they join mentorship programs and causes thinking that their mentor is going to trade for them and change their life for them.
No. End of the day, you still have to do the [ __ ] work.
And that's pretty much the accountability trap that so many people
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fall into. They are trying to outsource discipline to someone else.
Well, it's your life, buddy. You can't fix your life if you are consistently relying on other people.
You have to fix it yourself. So, like I said, the first
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scenario is you know what to do, but you don't do it. If that's the case, that's a problem when it comes to accountability.
And you can fix that by being disciplined, right? By actually just keeping yourself accountable.
Scenario number two is you know what to do, but you still fail. If that's the case, that's an execution problem.
And
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the fix here is not doing more. It's not, you know, like trading more.
No, it's getting feedback and reviewing the feedback that you have gathered. And once again, both of these solutions, they live within you.
You don't need me. You don't need freaking some other
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trading mentor. You don't need ICT.
No, all these solutions are within you. So, you can genuinely just go there and save your money and become your own mentor and you will eventually make it, right?
But like I said, that's the hardest part, right? Like you can do everything
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yourself. it's going to be incredibly difficult for you to be accountable and also like you know review your feedback every single day right because the thing is you will have blind spots.
So if you do want to get a mentor you should consider getting it after you have fixed the accountability problem and execution
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problem and you feel like you need the extra boost because what a mentor does is that it just immensely shorten your learning curve. It doesn't help you get to profitability instantly.
you know, but it just shorten the pathway and the time it takes to get there. This is
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something that I really believe in. If you want to change your life, change your environment because your environment is reinforcing the habits you used to do and the person you used to be because you become what you are consistently exposed to.
So this also
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means that if you want to achieve your goals faster, choose a conducive environment which is in accordance with where you want to go. Remember, you cannot willpower your way out of a toxic environment.
Recently, I moved out of my old place,
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right? And back when I was my old place, I would sleep and wake up late.
I would, you know, do all the bad habits. I would eat the junk food every single week.
But since I moved to my new environment, I've been waking up at 5:00 a.m. having like a consistent sleep schedule,
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working out every single day, eating clean, everything. And all I changed was my environment.
Because the environment is essentially like the invisible hand that is shaping every decision. You don't realize this, but your old
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space actually reinforce the old identity. That's where I used to grow up, right?
Like that's where I freaking goon on my bait. So how am I supposed to work beside the bait that I goon, right?
Like that's the pretty much table that I used
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to sit at to eat my meals every single day. So how can I like change the type of meals that I'm consuming when I'm sitting at the same place every single day, right?
Like that's the old space which was like just reinforcing my old identity which is like this insecure um
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guy who is always living in scarcity and lack. And then once I change to my new environment, my entire identity shifted and it becomes so much more easier for me to get to the place that I want to go right now.
And the thing about environment is that it's not just a physical environment. That's just one
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part of it. There's three types of environment.
Your physical environment, which is your workspace, your home, and the city that you live in and the country that you live in. And then there's your digital environment, which is who you follow online.
What content do you consume? And then there's your
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social environment which is who you spend time with. And as much as possible, you want to be optimizing every single one of these aspect.
You want to change this all three of these different environment if you want to actually get better because this environment are silently programmed your
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behavior in the background and it's just continuously reinforcing the person that you are right now. If you want to become a better trader, then perhaps you should surround yourself with better traders, right?
Then that's you changing a social environment. And then if you want to,
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you know, become more disciplined at trading, perhaps you need to optimize your workspace, right? Make sure that there is no distractions whatsoever.
Your phone is locked in the cupboard. So it makes it more easier for you to focus on the charts.
And then if you want to
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actually get better at trading, then follow successful traders, right? Watch their content, right?
That's you optimizing your digital environment. So that's pretty much you optimizing your environment so that you can actually so that it's actually easier for you to
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achieve your goals, right? Because end of the day proximity is power.
You are simply the average of your own inputs and inputs leads to outputs. So if you want to change your trading results, start by changing your environment.
Maybe move to a different city. Maybe change your friend group.
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Maybe unfollow the people on social that is not constructive in your life. Because once you change your physical, your digital and your social environment, this is where you change your identity, which will change your behavior, which will change your actions, which will change your results.
Consistent actions does not guarantee
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consistent profits. But inconsistent action guarantee inconsistent results.
Now listen, discipline doesn't promise payoff. You can be disciplined and still fail.
But chaos certainly promises
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failure. What I mean by that is that like dude, you can be doing everything right, right?
You could be following a trade plan, you could be journaling, you could be reviewing, you could be doing your back testing, your forward testing, your live trading, you could be putting in the reps consistently, but you will still get inconsistent results all
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because of the fact that variance exists in the market. Like you can be the best trader in the world, but you are still going to be losing money.
You're still going to face losses because that's simply the nature of the market itself. But on the other hand, if you're
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inconsistent with your actions, right? You know, sometimes you follow your trading plan when you feel like it.
Sometimes you journal when you feel like it. You know, you do your reflection maybe once every quarter, you know, like when [ __ ] starts hitting the fan, right?
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When you're very inconsistent with your actions, guess what? You are simply gambling.
You're simply gambling because now you there is no way for you to get consistent results. You'll make money some here and there, right?
But you don't know whether it's due to luck or it's due to your actions. And it's most
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likely not due to your actions because like I said, you're inconsistent with your actions. And ultimately, you must understand that the only thing that you can control in the market is how you show up, whether you follow your rules or not.
And ultimately, you must understand that the
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only thing you can control in this market is how you show up, whether you follow your trading rules or not. And how often you execute your trade plan.
Like that's it, right? Anything else is outside of your control.
How much money you make, you know, how many trades you take. No, completely out of the control.
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And I think the hardest part is sticking and trusting the process when you don't see the results. You know, like when you the P&L is still right, when you are still blowing accounts after accounts, when you're getting to break even but not into profit yet, even though you
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have been journaling, follow your trading plan and all that stuff. I think that's the hardest part.
And when you are going through that psychological battle of you know self-doubt, you want to make sure that you have faith. Have faith that eventually everything will work out in the end.
Have faith that
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eventually God will deliver the ideal outcome in his divine timing. If you can have that faith, it will happen as long as you just continue being consistent.
So consistency is the bet that you must
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make without guarantee. Because without consistency, failure is guaranteed.
Until you accept the fact that trading is a game of probabilities rather than a game of certainty, you will always be playing a game that you can't win. Since the dawn
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of time, the mind craves certainty. Right?
Right? Back in the hunter gatherer days, we all want to make sure that we got sufficient food and we are in a safe environment and we are able to continue live tomorrow.
Right? So the mind craves certainty.
But the market
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doesn't offer certainty. The market offers only probability.
Every trade that you take is essentially a bet with odds. You don't know for sure whether it's going to win or lose, right?
There is no guaranteed outcome. It's a coin flip no matter how many conferences you have.
And if you have a
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high win rate, it also doesn't mean [ __ ] because win rate is meaningless without risk-to-reward context, without knowing how much money you lose when you lose and how much money you make when you're right. Right.
So, and then and then on the other hand, you got losing trades which are not
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necessarily failures because in the grand scheme of things, it could simply be variance, right? Because there going to be times where you take the right trades, you follow your trading plan and you still lose.
And then there also going to be times where you don't follow your trading plan and you still win. Once again, variance, luck,
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probabilities, whatever you like to call it. That's just the nature of the market itself.
So the first step to becoming consistently profitable is to accept uncertainty. Is to accept the fact that you could potentially lose the trade that you're
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about to take and be fully okay with it. Because when you start detaching from the trade outcome, you start focus on execution, making the best trades and eventually you are more likely going to make more money.
So when you start to
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adopt this like probabilistic thinking, this actually remove a lot of like this emotion emotional attachment to outcomes because now you're no longer trading your mental well-being. You are actually trading the market.
You are actually
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seeing the reality of the market rather than what you think the market should do or will do. And that my friend is the secret to becoming a professional trader.
The ability to detach from the trade outcome and seeing the market for
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what it actually is by embracing uncertainty. All right, that's a wrap.
My name is Brad Gold. This has been episode nine of the Traers Code podcast.
And like I said man, as always go and comment what is your favorite quote, what is the key lesson that you have learned from this episode itself so they
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can share your knowledge with other people and at the same time you can also reinforce uh the the the stuff that you just learned right here right so that you can actually like remember it and always remember boring pace consistency bits talent every single time your
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emotions your environment shapes your outcome your journey is the edge the setbacks are just part of the story There one day tell.