00:00I believe that successful traders have tapped into an area where very few people go.
00:19I think they work harder.
00:21I think they work more consistently at it.
00:23I think they're more focused, but more importantly, I think they've realized that successful
00:28trading is not about charts and not about fundamental analysis.
00:32It is how you think when you are in a position, be it a winning position or a losing position.
00:38And as I often say, when people are in a winning position, they have a tendency to get afraid
00:43that their position is going to turn against them.
00:45And when they are in a losing position, they have a tendency to hope that the market is
00:49going to turn around and take them out whole.
00:53But the reality is that when I'm in a winning position, I think positively about it.
00:58When I add to my winning positions, i.e. I compound to make the position even bigger.
01:03But when I'm losing, I step back and say, I'm just wrong.
01:06And I think the vast majority of losing traders does exactly the opposite of how I do it.
01:15I believe that it's possible for anyone to learn to trade profitably.
01:21But I don't think the answer to profitable trading is found in the conventional way of looking
01:28at trading.
01:29I don't think you're going to take a weekend course and become profitable.
01:34You may be periodically profitable.
01:37But I define trading success as being you don't necessarily have to be consistently profitable,
01:45because all traders go through periods where the market perhaps doesn't quite gel with your
01:51way of trading.
01:52But I think every really good trader will eventually come out ahead.
01:58And I think they do that because they have tapped into a source of approach to the market
02:05that lies far away from just technical analysis or just fundamental analysis.
02:11I don't for one second think that you can't have a mediocre form of success with technical
02:18analysis.
02:19But if you want to make big money from trading, I think you need to add a component which you
02:24can't really read your way to.
02:27And that's what tonight has been about.
02:29It's about what is that ingredient and how do you access it?
02:36They run their losses because then they don't have to accept that they're wrong.
02:42And therefore, they don't receive that jolt of pain from our brain when we have been proven
02:49wrong.
02:50And as long as the position is open, as long as there's hope.
02:55It's one of the reasons why I think that the primary job of anyone who wants to make
03:00money trading is to switch around the two primers in our lives, greed and fear or fear and hope.
03:08You see, when you are in a losing position, you're hoping.
03:11And the reality is you should be afraid that the position is going to get even worse.
03:16But instead, I think you have a saying in the English language saying that hope dies last.
03:23And it's so true for trading.
03:25We hold on to that belief that maybe it will come good.
03:29And it may.
03:30And it's even worse when it actually does come good because then the next time your brain
03:34reminds you, well, the last time it worked out, just hold on a little bit longer.
03:38I have completely wiped that from my vocabulary.
03:46I think many aspiring traders start off with a with a naivety.
03:53And I like that naivety.
03:55Because making money in the market is difficult.
04:01And I like that they come in and they think, I can do this.
04:03Because you really do need that belief that you can achieve your financial goals.
04:10But unfortunately, I think the common mistake is that they go down the conventional route.
04:15So with the greatest of respect to the brokers, but the brokers are not traders.
04:19The brokers are there to facilitate a platform between the user and the market.
04:24And that's their role.
04:26But new clients or new traders, they hold on to anything that they think is going to
04:33guide them towards their goals, be it weekend courses or endless amount of webinars or books.
04:42And I've been down that route myself.
04:43Of course I have.
04:45Because the lack of better knowledge, what else would you turn to?
04:49But there comes a point when either you say, I can't carry on like this.
04:53Either I will reinvent myself as a trader, or I'll simply stop trading.
04:58Because I can't keep being on this roller coaster of making and losing.
05:05The book that I have just written.
05:07And I don't want to sound commercial.
05:09But I didn't write this book for any commercial reasons.
05:13I wrote this book because I really wanted to get to the heart of profitable trading.
05:18And I felt that all the trading books that I have read, they all focused on the, how do
05:23I implement this?
05:24How do I implement that strategy?
05:26Focusing on strategy.
05:27But actually strategies is just not what's going to make you the box.
05:31It's not what's going to bring in the dollars.
05:34It's the mindset that will bring in the dollars.
05:36Fundamental analysis, well look, it's difficult to, it's difficult to talk about fundamental
05:49analysis as a, as a tangible thing.
05:52Because even within fundamental analysis, you'll have variables that can pull the market in
05:58one direction and variables that can pull the market in another direction.
06:04And, and quite frankly, even fundamentals can, can give you different scenarios depending
06:12on where you think the market is headed.
06:15So to be completely objective in the face of fundamental analysis, I'm not sure that that's
06:21achievable either.
06:22So from, from my point of view, if fundamental analysis means that I am reading what's going
06:28on on Bloomberg or Reuters, yeah, sure, then I deploy fundamental analysis as well.
06:33I know when, when there's interest rate announcements and of course I follow these things.
06:38I'm not a pure chartist.
06:39I am aware of the world around me, but I don't believe that neither technical analysis nor fundamental
06:46analysis is the reason for my success.
06:53No, I don't think I can think of a site or a book apart from the book that I've written.
06:59And again, I emphasize I am not doing this for any commercial reason, but I generally,
07:03I've already sent this book out.
07:06I have a rather large following and I, so far I've sent out this book to 3000 people.
07:13And the feedback that I get back is that people read it and it's as if a light bulb is going
07:18on in their head that actually maybe you should spend just as much time preparing your mind
07:25for trading than you do preparing your charts.
07:30So when you're sitting there on a Monday morning ahead of the market open and you're looking
07:33at the daily chart and the weekly chart and the, and the five minute chart, well maybe
07:38you should also set time aside for some, some mental preparation.
