Is Online Trading Legit or a Scam? | Honest Truth for Beginners - video Dailymotion

CashFlow Blueprint

Is Online Trading Legit or a Scam? | Honest Truth for Beginners  Many people ask: Is online trading legit or just a scam? In this video, I explain the real truth about online trading in simple English so beginners can understand the risks and opportunities clearly.  In this video, you will learn: • Is online trading legal? • How real traders make money • Why some people lose money and call it a scam • The difference between legit brokers and fake platforms • How to protect yourself from fraud  If you want to make money online, you must first understand how trading really works. This beginner-friendly guide will help you avoid scams and make smarter financial decisions.  This content is perfect for anyone interested in online trading, investing, and building financial knowledge.  ⚠️ Disclaimer: This video is for educational purposes only. Trading involves financial risk. Always do your own research before investing any money.  Watch till the end to understand the reality of online trading. Follow for more make money online and trading for beginners content.  #MakeMoneyOnline #OnlineTrading #TradingForBeginners #FinanceEducation #Investing #StockMarket #ForexTrading #CryptoTrading #PassiveIncome #EarnMoneyOnline  Tags: make money online, is online trading legit, is trading a scam, online trading for beginners, how trading works, investing basics, forex trading guide, stock market beginners, crypto trading basics, earn money online usa, passive income ideas, finance education, legit trading platforms

Transcript

00:00Hello, my name is Doug and I've been a professional trader now for 26 years.

00:03And in today's video, I'm going to give you the 10 brutal truths of trading.

00:07The very best lessons that I've learned from a two-decade-long trading career,

00:11all in today's video.

00:12But before I do that, I want to warn you.

00:14This is not some cheesy list I pulled off the internet

00:17or something that I typed into chat GBT.

00:19This is real-world advice that was learned by using real money in a real market.

00:25Now, some of this advice is going to make you feel a little uncomfortable.

00:28It's going to challenge the way that you think

00:30and it's going to challenge the way that you've been taught.

00:33But I do promise that if you watch this video,

00:36you will never look at trading the same way again.

00:38So having said that, how about we get started with today's video?

00:43Now, right before we jump in today's lessons, I'd like to say something

00:46because I think it's important and it will set the tone for the remainder of this video.

00:50And here it is.

00:51You are what you are and you are where you are.

00:55And whatever you are and wherever you are, I want you to know it's okay.

01:00Whether you're a new trader who's starting out with no money,

01:03whether you're a trader that's been in this business for a while

01:06and it's been nothing but a disaster,

01:08or whether you've been fighting with break-even year after year

01:12and you're just at bitter's end and you're ready to give up.

01:15Wherever you find yourself, whatever country you find yourself in,

01:19if you're watching this video today, I want you to know that doesn't matter.

01:22The only thing that matters is the very next step you take in this process.

01:28That's it.

01:29Because the market is the purest form of business that there is.

01:34It does not care who you are.

01:36It does not care what you did in your past.

01:38It does not care where you went to school or what your circumstances are.

01:42It will reward those who put in the effort.

01:45Now, I started out with a sizable account, as I said before,

01:48but I blew right through that account and went bankrupt.

01:51And I had to start over with just a couple of thousand dollars,

01:54and I found a way to make it.

01:55My wife came from the poorest country in the European Union

02:00and started with seven euro in her bank account.

02:03No kidding.

02:04And she was able to make it.

02:06All of our journeys will be different,

02:07but the only thing that should matter to you right now

02:10is not where you are, what you are, or what you've done in the past.

02:14It's what you do next.

02:15So having said that, let's jump right into today's lessons.

02:18All right, so let's begin with number one.

02:20And that's going to be, do not underestimate the power of simple stupid.

02:24The amount of information that you need to make successful winning trades right now

02:28and successful winning trades for the remainder of your life,

02:31it's probably a lot less than you could possibly imagine.

02:34You don't need dozens of indicators that are cluttering up your charts.

02:37You don't need to chase the latest shiny object that's in the market.

02:41You don't need to know everything about the economy and monetary policy.

02:45And you certainly do not need to have an answer for every little thing

02:49that goes on within the marketplace.

02:52All you need to become a long-term profitable trader is just one simple edge.

02:58That's it, guys.

02:59Just one simple edge within the entire market ecosystem.

03:03And you can get whatever it is that you came for.

03:06Because that one little simple edge, that's where you're going to live.

03:10That's going to become your domain.

03:12And you will become the ruler of that domain.

03:16And every day when you wake up, you are going to hammer on that edge over and over and over

03:22again

03:22from now until the end of time.

03:24And anything that goes on that does not pertain to that edge and what you're doing,

03:29you don't need to know about it.

03:31It's none of your business.

03:32It's just noise and nonsense.

03:33I have made millions upon millions of dollars trading over the last two decades

03:38doing one simple layup trade every single day of the week.

03:43And after 26 years in this business, there's a whole hell of a lot that's going on in the market

03:48that I don't know about.

03:49But guess what?

03:50I don't have to.

03:51And you don't either.

03:52Now, one simple tip that will help you keep things simple stupid.

03:56If you're a new trader, I highly suggest you stay away from indicators in the beginning.

04:02Start with understanding price action, support resistance, or something easy like the box

04:08theory.

04:09Then once you've mastered that, you can move on to indicators.

04:13Same goes for all of you traders out there who have experience but you're not consistent.

04:17Start to remove some of the noise that may be on your charts.

04:21Get back to the basics.

04:23Understand how stocks and assets move.

04:26Understand how price action works.

04:28Understand support resistance and understand the box theory.

04:31But always keep in mind, stupid simple will always win in the markets.

04:37Number two, focus on trading just one asset.

04:40Much like I mentioned in step number one where you will become the ruler of your domain,

04:45you'll also become the ruler of mastering a specific asset or a very select amount of assets.

04:52And the reason for this is because the same traders tend to trade the same stuff over and

04:58over again and those traders have a specific habit and behavior to them.

05:03And once you can add that nuance to your strategy, you start to move to a whole new level.

05:08Now, this is also beneficial for the newer traders and for the struggling traders because it narrows down

05:14our focus.

05:15Instead of us scanning through hundreds of stocks and chasing those shiny objects, every day,

05:20we've just got one singular focus going in one singular area.

05:24And when we combine that focus with the nuance, then we can really take ourselves to the next level.

05:30Now, start with one asset and then slowly add maybe one or two.

05:34But you can live the rest of your life trading the same three to four instruments over and over again.

05:41Keep it boring.

05:42Keep it simple.

05:43And trade just one asset.

05:45Number three, screen time is your BFF, your best friend forever.

05:49You need to get in front of that screen as much as you possibly can.

05:55My mentor would always tell me the market's a lot like a movie or this is the philosophy.

05:59If you go and watch a movie, you see it the first time.

06:02You're like, oh, there's all these cool parts.

06:04Maybe you explained it to somebody.

06:06But if you go back and you watch that movie a second time,

06:08you realize there was an awful lot that you didn't catch the first time.

06:13Now, imagine if you sat there and watched that movie for 2,000 straight days.

06:19You would become the master of that movie.

06:22Am I correct?

06:22You would know where all of the mistakes were.

06:24You would know where all the missed lines were.

06:27And you'd be able to recite the whole thing in your sleep.

06:29And that's the point.

06:31Mastering these singular things is very important.

06:35Now, luckily for a lot of you here today is all of these brokerage accounts have some

06:39sort of playback device.

06:41We didn't have that when I started trading.

06:43You actually had to be present.

06:44So the good thing is when you come home from work or whenever you get a free moment,

06:48instead of watching your favorite series on Netflix or some other sitcom,

06:52get in front of that screen, watch that one asset and continue to watch it over and over

06:58and over again.

06:59And you will be surprised on how quickly your eyes can pick out patterns,

07:03how quickly your brain can pick up on these nuances.

07:06And you'll start to put these pieces together.

07:09And that will take that strategy to another level.

07:11So screen time, it's always going to be your BFF.

07:15Number four, position size is also your BFF.

07:18If you're a new trader, if you're a struggling trader,

07:21you have absolutely no business whatsoever putting real sizes down on the table.

07:26I mean, just think about it for a minute.

07:27Why would you risk your hard-earned money when you don't have a command over your strategy?

07:32You don't have a command over the assets you trade.

07:35And you've never at any point throughout your trading journey showed any type of consistency

07:40whatsoever.

07:40It doesn't make any sense at all, right?

07:43And look, I'm not casting judgment because I did the exact same thing 20 plus years ago.

07:49I put big sizes down on the table when I didn't know anything about trading.

07:53And that led me to being blown up or blowing through several accounts.

07:56And when you really think about it, traders don't blow up because they made a bad trade.

08:02Traders blow up because they over leveraged on a bad trade and they didn't cut the bad

08:07trade and they continued to over leverage on the bad trade until they ran out of money.

08:11So if you can just control your position sizes, you're going to be okay in the beginning.

08:17Because remember, you're in a learning phase.

08:19Now, a lot of you might be asking, well, what's the right kind of position size?

08:23Your position size needs to be as low as it needs to be to keep you from over fixating

08:29or having any types of anxiety whatsoever about being in that trade.

08:34So for example, let's say you take a 100 share size position of something.

08:38If you're nervous, if you have anxiety, if you're constantly eyeballing that trade over

08:44and over and you're worried, it's too much.

08:47You got to back it down.

08:48Take it down to 70.

08:49If you have the same symptoms, take it to 50.

08:52The same symptoms, take it to 40, 30, 10, 5.

08:56Go as low as you need to go where you are not worried about the position size that you

09:01have.

09:02This will help you stay in trades longer.

09:04This will help you focus on your trades and it will help things come together much cleaner

09:10for you.

09:10So remember, position size is also your BFF.

09:15Number five, do not focus on making money.

09:17Focus on making good trades.

09:19Now, I know this is kind of tough to do because we all come into trading to make money, but

09:24this cannot be your main focus.

09:27Your main focus either needs to be on the trade you are currently in or the trade you're about

09:33ready to make.

09:34Anything outside of that is irrelevant.

09:36Look at it like this.

09:37Let's say an NFL football team, for example.

09:39They don't come out and try to score on every single play.

09:42What they try to do is just make one good play.

09:44And if they make one good play, they try to make another good play, then another good

09:49play.

09:49And if you can tie enough good plays together, you should be rewarded with what?

09:54A touchdown.

09:55And that's trading.

09:56You make one good trade at a time.

09:58Then you try to make another good trade, then another good trade.

10:02And the culmination of those trades should get you exactly where you need to be financially.

10:07Now, here's a quick tip on something that helped me understand this concept a little

10:11bit more.

10:12And this probably should have been a tip on its own.

10:14And that is at no time whatsoever during the course of a trading day, should you ever

10:19look at that P&L that you have.

10:22Never, ever look at your P&L.

10:24And here's why.

10:25Because at some point in time, that number that you see, not only is it not going to be

10:30nice, but the biggest problem is one time that number is going to cause you to do something

10:36emotionally.

10:37It's going to cause you to detach from the trade that you have at hand.

10:41And it's going to cause you to make a serious mistake.

10:45At some point, that number will influence you.

10:48And you don't need that.

10:49So at no time whatsoever do you look at your P&L through the course of the day.

10:54And I'm sure for most of you, that should help.

10:56So remember in this part, don't focus each day on trying to make money.

11:00Just focus on trying to commit to your process.

11:03Follow your rules and follow your strategy.

11:05And just focus on one trade at a time.

11:07And you'll get a lot farther than you think.

11:10Number six, learn to fall in love with losing.

11:13Losing ain't your BFF here.

11:15Unfortunately, it needs to be your lover.

11:16And it needs to be your lover because you're going to do a whole lot of it and a whole

11:20lot

11:20more than you ever thought you were going to do.

11:21But I want you to know that's okay.

11:24I've been around for 26 years and losing is part of the game.

11:27However, the reason I want to talk about losses is because there are two types.

11:30One of them is acceptable.

11:32The other is not.

11:34An acceptable loss is something that's just the cost of doing business.

11:38You saw the setup that you needed to see.

11:40It was an A plus setup.

11:41You followed your rules.

11:42You followed your plan.

11:44It was just one of those unfortunate random events of the market that caused you to be

11:47stopped out.

11:48Again, part of doing business.

11:49That is okay.

11:50And I don't want you to stress over stuff like that.

11:54However, the second loss is totally avoidable and should be removed.

11:58The unacceptable losses.

12:00This is revenge trading, emotional trading, blindly following other gurus or whatever it

12:06may be.

12:06There's absolutely no place in this business for that kind of stuff.

12:11I want to give you something that helped me overcome this and understand the concept

12:15of losses and taking losses so you can enjoy the rewards.

12:19I started to look at losses as part of doing business like I just recently mentioned.

12:23So for example, let's say I had a nine to five job in a corporate environment.

12:27Well, I would have to purchase a wardrobe so I'd look nice when I went to work, right?

12:32Well, the purchase of that wardrobe is a loss, but I must take that loss in order to

12:37get to job and get my paycheck.

12:40I would still have to find some transportation to that job, whether I'm taking a bus, a train,

12:45or putting fuel in my car.

12:46But whatever the expense was to get me to that job would be a loss.

12:51But I have to take that expense so I can get my paycheck.

12:55Now, the goal here is the expenses should be lower than what your paycheck is.

13:01That way, it's a fair trade-off.

13:02But in everything in life, it's risk versus reward.

13:05There's a trade-off.

13:06There's something that you have to give up in order to get some sort of reward.

13:10Trading is no different.

13:11Just understand that there are two types of losses.

13:14There's the acceptable loss.

13:16But what cannot happen is you can't have those moments where you have lapses of concentration,

13:21lapses of judgment, and you take those unnecessary losses.

13:25So remember, learn to fall in love with losing, accept that it's part of the game,

13:29and everything's going to be okay.

13:30Number seven, if you don't rank, you won't bank.

13:33Every trader needs some form of ranking system to help them quickly establish the level of opportunity

13:39that they're looking at.

13:40Because we may have two charts side by side that have the exact same technical setup,

13:44the exact same technical signaling, but there's a good chance they are not the same opportunity,

13:49and that's important.

13:51Because the goal for us as traders is to be fully leveraged or stomaching as much risk

13:57on our high probability winning trades.

14:00However, if we don't have a ranking system, we're not going to know the difference between

14:05a high probability trade and a potential losing trade.

14:08Now, this obviously takes a little bit of time from your end, because you are going to have

14:12to make trades and understand what a winning trade looks like and what a losing trade looks

14:17like, but you need to start ranking those trades and start studying the winners and studying

14:23the losers.

14:24Now, quickly, something I use is a tier one, two, and three type of method.

14:29So for example, a tier one trade for me would be something that's most likely to have an 85%

14:35win rate or higher.

14:36Now, there's no guarantee that trade will work, but when I see that set of circumstances,

14:41that's a must-take trade.

14:44And that trade normally works out for me, therefore, I should put as much risk on that

14:48play as I possibly can.

14:50A tier two play would be sort of a play that I have a high degree of conviction.

14:55I like the setup, but the opportunity just isn't quite the same.

14:59Something might be lacking.

15:01Something might not be lining up.

15:02But I feel pretty confident about the trade.

15:05This is probably something around a 70% to 75% win rate for me.

15:08I still want to take the trade, but I don't want to over-leverage on that trade.

15:13And of course, a tier three play would be something that I really don't mess around with anymore,

15:18these C plays.

15:20These are something that in the past I felt like I wanted to be a part of, I wanted to

15:24try out, but most of the time they were just slightly over 50-50.

15:27And as time has progressed, I found no need to take them.

15:30I'd rather just be patient and wait for the tier ones and tier twos.

15:33However, if I never would have created that ranking system, I might have never known the

15:37difference between them, right?

15:38So as of now, start ranking those trades and start documenting those trades.

15:43And if you don't rank, you're just never going to bank.

15:46Now, this will help me transition into number eight, because you'll never be able to successfully

15:50rank and bank if you first do not journal your trades.

15:53Now, there's a lot of different opinions on what people think should and should not be in

15:57their journal, and through time, what is and is not in there will, in fact, change.

16:02But here's what I want to say about journaling, or what I feel is the most important part.

16:05I feel us traders, myself included, are a tiny bit delusional.

16:10We sometimes think we have a problem, and we look at every losing trade as a bad trade.

16:15Maybe it's not.

16:16But we feel we have a problem in a certain area.

16:19But unless we document it, we're never 100% sure that's the real problem.

16:24This was my experience, because when I started trading, I lost a ton of money, and I lost

16:29all the time.

16:30I naturally thought I was just a terrible stock picker, that I couldn't distinguish opportunity.

16:36But once I started documenting everything from what I was trading, the time of day I was

16:41trading, how I felt about it, the strategies and everything else I was using, I realized that

16:45was not my problem.

16:46My problem was that 60% of all the losses that I took never needed to be taken.

16:54I was panicking out of the trade.

16:57So I didn't have a stock picker's problem.

16:59I had an emotional problem.

17:00But I never would have known that was the problem if I didn't journal it.

17:05Now, I also needed this to help reinforce my trading, because as I began to continue to

17:11trade, I would look at losses, and right when I was ready to push that button, I'd pop up

17:15that journal.

17:16And there was the data.

17:17The data was telling me that, dude, if you cut that position, this is a mistake.

17:23This is a 60% chance that's a mistake.

17:25Again, you must journal all of your experiences.

17:28Now, the rule of thumb is to journal as much stuff as you can.

17:32And luckily for the new generation, there's all these great free tools out there online

17:36where you can just upload your trades.

17:38It'll give you every little analytical detail.

17:40And every one of these are important.

17:43And you need to go through each and every one of them.

17:46But another tip that I like to do is each and every week, I begin that week with looking

17:50at something I would personally like to improve on.

17:53Whether I want to prove better on my entries, whether I want to be more patient on my exits,

17:58whether I want to increase my size or lower my size.

18:01And I make that a prime part of my journal.

18:04So remember, to get to the next level, you will have to journal every single thing that

18:08you're doing.

18:09And you also have to make sure that you're taking care of your life outside of trading

18:12as well.

18:13But start journaling and documenting those experiences and looking for each and every

18:18one of those areas that you can improve.

18:20Number nine, keeping with the theme of journaling and ranking and banking, every trader needs

18:25some set of rules in place.

18:27Now, rules are different than journaling.

18:29Rules are in place to protect us from us, from us unwinding and going down a path that

18:36we don't want to be because that's where self-destruction is, okay?

18:39Now, this is very simple.

18:41What I like to do is this.

18:42I have rules in place that if I lose, let's say, for example, three trades in a row, I start

18:47to back off, maybe even take a day off because whatever it is I'm seeing, I'm not seeing

18:52it correctly.

18:53I'm doing something wrong.

18:54Even if I think I'm not doing something wrong, again, that's why there are rules, I have

18:59those in place because I am doing something wrong.

19:01My strategy is not coinciding with the market.

19:03I need to take a step back and not throw money at the problem.

19:07More importantly, I have something that I've referred to in the past as a GTFO number.

19:13Get the F out.

19:15When that number gets hit, you're gone.

19:17You must walk away.

19:19Don't care what the technicals are.

19:20You've hit max laws.

19:21You've got max risk.

19:23You're done, okay?

19:24These are super important.

19:26Probably one of the more important things is this entire video because the single greatest

19:30enemy in trading is us.

19:33It's in the mirror.

19:34We are our own worst enemy and we must protect ourselves from ourselves.

19:38So make sure you have a set of rules to protect you from losing trades and definitely rules to

19:43protect you from how much you are willing to lose.

19:46Because trust me, it's easier to step back, calm yourself down, then come back with a

19:51cleaner approach.

19:53Number 10, find yourself a mentor.

19:55Whether that's finding an individual person or joining some sort of a community, a mentor

20:01will get you to your goal faster than you ever could imagine.

20:05Because only a trader can understand another trader.

20:09Only a trader could understand that you put 50 hours of work into a certain trade.

20:13You waited for the perfect setup and as soon as you pushed a button, it smoked you out.

20:18Only a trader can understand exactly how that feels.

20:21Now, I know that most people on the internet feel that every chat room or everybody that

20:26offers some sort of a service has to be a scammer.

20:29Certainly, there are people out there, but there's a lot who are not.

20:34But the reason that people think that way or the number one reason that people think that

20:38way is because they go into these communities with the wrong mindset.

20:42They're going into these communities to try to piggyback on alerts, to try to get involved

20:47in some big trades.

20:48That's not why you're there.

20:50You are there for the individual's experience.

20:53Again, only a trader can understand another trader.

20:56You need these people to hold you together when shit gets bad.

21:02Because that's what I remember about my mentor.

21:04He didn't just teach me how to trade.

21:06He taught me how to make trading my life.

21:08He held me together when I was ready to quit.

21:11He helped me on those days I was literally in tears and couldn't stand to even look at

21:16stocks or any other form of instrument.

21:18That's the things I remember the most was the days that he helped me when I was down and

21:25I felt worthless.

21:26That's what a community is for.

21:28It's for a group of people who share the same common goals and look out after one another.

21:34So somewhere along the line, whether it's through us, somebody else, it doesn't matter.

21:40Find someone that you align with that can help you take that next step.

21:46Now, speaking of steps, that'll bring us to our final step today.

21:49Number 11.

21:50The last step will be the hardest step you take.

21:54At some point, you will have obtained all the knowledge you possibly can about trading.

21:58Enough people will have helped you put you in the right position to be successful.

22:04But the final step between being average and being elite, that step has to be taken by you.

22:11And it will be the hardest step that you ever take.

22:15There are no shortcuts here.

22:16There are no easy answers.

22:18And no one can help you get through that.

22:20And you will find yourself, if you're not already there as a trader, at the proverbial fork in the road.

22:26To one side, it's the easy out.

22:28Yeah, just quit.

22:29Make up an excuse.

22:30Trading wasn't for you.

22:31But to the other side is that final step.

22:34And beyond that final step is what you got into this trading business to achieve in the first place.

22:40But no one can help you with that.

22:43Now, for each and every one of us, whatever that final step is, it's different, right?

22:47For me, I had a lot of insecurities.

22:50But my insecurities were created from my poor trading habits in the beginning.

22:53But nonetheless, that final step was up to me.

22:58No one could help me with that.

23:00I had to come up with the internal strength to cross through that.

23:03So on that note, guys, I want to thank you for watching today's video.

23:06I hope you found some value out of it.

23:08Right before I sign off, I want to remind you that my wife and I created now our brand new

23:13live trading room called The Rumors Squad.

23:16Every day, we are trading live on screen.

23:19So if that's something that you're interested in, we appear to be the mentors that you're looking for.

23:24We can help get you to that level that you need to be as a trader.

23:27I'll put the link down there in the description.

23:29Other than that, again, let me thank you for watching today's video.

23:33Take care.

23:33Trade well.

23:34Cheers.

Is Online Trading Legit or a Scam? | Honest Truth for Beginners

Category

Transcript

Comments

Recommended