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Insilico Terminal Podcast Episode 14 - Luckshury
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In this episode, we follow the journey from accounting into full-time trading, exploring the role of early luck versus building real systems. He shares how mentors like Tom Dante shaped a disciplined, career-oriented mindset and why specializing in Bitcoin gave him an edge - even as BTC’s structure and liquidity have fragmented since 2021. We dive into his philosophy of exploiting behavioral inefficiencies, managing drawdowns with data, and knowing when to step back. He demystifies order flow, explains his work on Exo Charts, and breaks down execution nuances like limit scaling and patient entries. The conversation closes with trading psychology, avoiding tilt, and why modest, consistent compounding beats the pursuit of quick riches.
00:00 Intro & Background, transitioning from accounting to trading, and the role of luck vs. systems in the early days
04:15 Career Mindset & Routine, escaping the 9-to-5, influence of mentors like Tom Dante, and developing structured outlook rather than chasing moonshots
12:35 Bitcoin Specialization, the benefits of mastering a single asset and how Bitcoin's market structure and liquidity have fragmented since 2021
19:10 Trading Philosophy, building a system around exploiting behavioral inefficiencies and trapped traders rather than reacting to news events
24:35 Managing Drawdowns, using data to distinguish between bad luck and edge erosion, and the importance of stepping back when the edge isn't there
31:05 Demystifying Order Flow, using it as an additional variable for context rather than a holy grail, and his role in developing Exo Charts
41:10 Execution Mastery, the nuance of limit scaling versus market chasing, and optimizing entry prices through patience
44:00 Psychology & Longevity, avoiding the trap of instant re-entries, stopping the tilt spiral
48:15 The Power of Compounding, why 2-3R a month is enough, longevity over quick riches
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Transcript
Introduction to Luxury and His Trading Journey
00:00:12
Speaker
Welcome to another episode of the InSilico Terminal podcast. Today, my guest is Luxury. And um I like to ask people at the beginning to introduce themselves to the audience. So who are you? What do you do?
00:00:31
Speaker
Hello. How do you describe yourself? Well, I'm a full-time day trader. Well, I say day trader, but just full-time trader. um Also at ExoCharts, but primarily just a trader day in, day out. That is who I am since 2018. So yeah.
00:00:52
Speaker
How did you get into trading? Uh, my friend introduced me at the time, um, just to, you know, look at Bitcoin and I think everyone gets into that, that maybe, I don't know. I had that one friend that really got me involved at the time. They're not interested anymore at all. Well, not interested at all, but they're just not trading it day in doubt like they were in the beginning. um And then in 20, it was like the descending triangle times.
00:01:19
Speaker
I think if you ever see the chart, with Bitcoin 2018, you have this like triangle. It then goes from like 6K to 3K. yeah And my friends at that point are kind of, um you know, they're out. Bitcoin is very quiet. You know, it's not very entertaining at all.
00:01:35
Speaker
But, you know, that is where I actually made, you know, i that was my first kind of big trade was really six k to 3K. But I would really put that down to more luck than having an actual framework or system in place at the time. you know And I think I don't know how it is from for others, um but I feel luck in the very early stages has a role because I know some of my friends at the time, they got liquidated um in that moment. you know Some people get liquidated tons of times, whatever, and they completely stopped trading from that point onwards.
00:02:13
Speaker
I didn't get liquidated, but had I have got liquidated, maybe my outlook and future from that point, especially when it's so early on, would have completely changed. But then again, you know you have to be resilient in this game, and I feel like you're going to go over massive hurdles and bumps along the way anyway, so take it as you will from that point on. But yeah, got the massive win from 2018, and yes again, beyond that point, really accrued.
00:02:40
Speaker
quite a few losses obviously before then started to hit the ground rolling and I think those losses where I then started to pick up on having a system building a trading plan journaling and so on and so forth so yeah that's how I kind of started back in 2018.
00:02:56
Speaker
What kept you interested while the price was going down? like were you immediately interested in the trading part? Did do you have any like financial background or anything like that? So I wast i was actually an accountant um at the time.
00:03:09
Speaker
the train i say accountant I was training to be an accountant, but it was quite... a a nice role and I think actually um it's interesting to talk upon this because I went through i was an accountant for obviously that period of time and I really disliked what I was doing um like really badly and it took some courage to go against the grain at the time you know when I say against the ground mean really like against family um because I'm really young And, you know, everyone then is kind of viewing like the accounting role I had was, you know, was I was in central London. It was like I was the goat, essentially. But in my head, I wasn't, you know, I really hated it.
00:03:47
Speaker
um So, you know, that I didn't have a financial background to speak, but, you know, i was
Trading Philosophy and Market Evolution
00:03:53
Speaker
in accounting. I just hated it so badly and I had to make trading work. So it wasn't a matter of kind of back to your thing, you know, staying interested. It was like either I find a way to make this trading thing work.
00:04:03
Speaker
Or I do this thing that I hate. Now, it's a luckily, yeah. and I mean, luckily at the time, I didn't have... um It wasn't like a financial thing in terms of I had to make money. But it was more so like a career thing as to say, you know, like, what do I want to do for the next 10, 15, 20 years? You know, or so on and so forth. And I know it wasn't going to be...
00:04:24
Speaker
um you know accounting. And so I had to find an alternative and I thought it had to be this. So I just really stuck my head down like this and you know problem solved. And I guess you know still to this day, I'm problem solving. So yeah, that's how I tried to stay entertaining. It wasn't like staying entertained. It was like I had to make this work somehow and more just resilience, I would say.
00:04:47
Speaker
How did you conceptualize that trading could be something that could be your career for like the next five, 10, 15 years or something? I think you're pretty like i' I'm a huge fan of your your videos. Like I've watched a lot of them and I heard you talk about that before.
00:05:03
Speaker
and um like on CTE, I feel like, or if you if you get first into crypto, it's not really a common thing to think of it as a career path for like the next years of your life. So how did you how did you get into that?
00:05:18
Speaker
Really interesting. Yeah, because like on CT, it's more, you know, looking for not moonshots necessarily, but, you know, 10, 15, 20x on your money, which you is definitely doable.
00:05:28
Speaker
It's more so just the route of, I think it was, you know, Tom Dante, SMB Capital, Lance. those type of people who kind of although they don't trade crypto day in day out kind of just bringing over their core principles to what i trade which is bitcoin um and you know they've been doing it for you know building it into a career in that sense and like just adjusting my brain to actually what good returns or sustainable returns should look like both in the sense of like our multiple over the course of a year draw down that type of mentality just wasn't applied generally when you look throughout the CT space, and um you know even to this day, you know um so when you think of it like that, it brings more of the long term into it, you know because if I'm saying I'm going to to 60% a year, just for an example, right?
00:06:14
Speaker
That is not something that's going I'm not going to make money with that in a year and then retire. It has to be so you know something that you do for years and years and years before you see like really exponential growth at that stage. and yeah, that's that's kind of where it comes from is just having that long-term outlook. And I mean, I really enjoy what I do. So it's like, I want to do this kind of for a long, long time and I don't see it stopping.
00:06:37
Speaker
um So yeah, that's kind of the outlook. And I think, I don't know, people, when you have these short-term outlook on things, you can be very sporadic in your decision-making I found as well. um So yeah, it's interesting. I mean, that that's kind of my take on that.
00:06:58
Speaker
So after 2018 and going more into yes into, trading, did you, did you already start trading full time back then or? No. So what, what really happened was it was around 2018,
00:07:12
Speaker
I had a down period and I had to kind of make, I think it was in 2019, like early 2019, like January, maybe Christmas time of 2018, where it was kind of like, you know, i had savings.
00:07:26
Speaker
Do I go for this now or, you know, not kind of go for it, um, and see where it takes them because, you know, luckily, and I'll say this with great emphasis, I understand there's lot of people that now speak to me and try to get into trading when obviously They have family, kids, etc. and I don't want to speak from a place where I i had zero experience on that point. you know i was just lucky enough, especially my mom at the time, she really said to me, just you know go for it.
00:07:52
Speaker
um There was no real financial stress. I had money saved from the job at the time. i you know I was young. I didn't pay any rent or anything even at the time. It was just kind of go for it, you know take the risk. And i'm I'm really grateful for that in terms of my family. So obviously that happened. I mean, some were doubtful of you know the whole you know, what are you doing online? I'm grateful. You know, gratefully, my parents, direct parents weren't, you know, mom or dad. So I went from that point onwards and I said, you know, okay, you know, kind of can I swear on this? I mean, fuck it. You know, I kind of was like, let's leave the, leave it.
Trading Strategies and Market Behavior
00:08:27
Speaker
Um, and let's go for this. So I had, First three, I would say the first three months were very rush you know rough. But even from that point, just having the long term outlook, I was very conservative on risk management because I still, even though I didn't have financial responsibilities, I didn't, I just guess my brain was kind of very sensible in sense I didn't want to blow the pot or anything by any sense. And my pot wasn't that big. I think it was around a couple thousand dollars at the time. I still didn't want to blow that. So that's where the risk management comes into play and then conservatively building from that point on. And, you know, gratefully I'm in a very, I'd like to say in nice position now, but it's interesting, you know, obviously you, I still took big losses along the way, but you know, before I had, you know, uh, before I really went for it, but when I went for it is kind of when I said i need to start really applying a diligent risk management approach to this in great detail, you know? So yeah.
00:09:24
Speaker
What did your trading look like back then, like strategy wise or execution wise and how oh is it compared to today? oh so, I mean, back then, i mean, if we're talking biff you know, very early on, it was just luck, you know, I mean, you had patent trade,
00:09:40
Speaker
Uh, nothing wrong with pattern trading, by the way, I want to get that also out there. Um, just there was zero structural system around it. I think that's the biggest difference from today is that I had zero structure in the sense of like, I place this, I wouldn't even place a stop. You know, you just watch the chart, you know, you'd go bed with no stop. You know, that's kind of how I was in the, you know, I'd go bed, no stop.
00:10:04
Speaker
It was someday be good, someday bad, you know, and yeah that was the biggest change. Uh, there was no plan going into the day. he was very sporadic. And I think most people experienced that as well. was just horrible. Um, to be honest. So that I think the biggest change more than, you know, when you look at the actual core principles, the biggest change is definitely just the way I'm actually planning for the day.
00:10:27
Speaker
sorry. The way I'm actually planning for the day instead of like the actual trading itself, um, and preparing and journaling, et cetera. that's That's kind of what I would say there. You know, um so there's that. But nowadays, obviously, you know, when i I wake up, I've got my routine. And I think most people really overlook the idea of just having a plan or like, you know, spending days, weeks, building out some sort of system in which, you know, that they're willing to actually develop and follow over time.
00:10:59
Speaker
You know, I think that's also really mislooked is just, you know, spending that time. And I never i never did that in the beginning, you know. Mm-hmm. you know So, yeah, I think that's the biggest change. But I think like strategy wise, you're mostly day trading Bitcoin nowadays. Yes. Yes. It's a good point. Okay. So, yeah, it's really actually interesting to bring up. I forgot to mention that. So in the beginning, I still only mainly traded Bitcoin. I mean, I so i would have had a few ETH and actually, i you know, i would have punted a few alts here and there, you know, randomly in the beginning. if We're talking very early on.
00:11:33
Speaker
But my main focus is still Bitcoin. um And then as it developed, it was just, okay, now it's really solely Bitcoin. um Moving forward, understanding that market inside and out. um Do I think it's a bad thing, by the way, to trade many coins? Not at all. I don't think that's the case at all. Um, what I do think is that if you're going to do that, you should have some sort of plan or, you know, at the very least a plan or structure as to how you choose what you're going trade and when you're going trade, you know, rather than just looking at what's up and what's down and going for it. In my opinion, I think, i mean, you can do that, but have a system around the way you've done that, you know, because if you don't have a system, it makes it extremely hard to review.
00:12:15
Speaker
If you're just eyeballing stuff randomly, I feel, you know, So have some sort of planning around it. And then, you know, from that point on, you can actually adjust it. Otherwise, yeah, it can be it can be very tough, you know, if you have got no planning around it.
00:12:32
Speaker
So is the reason that you only decide to trade Bitcoin that it's easier to build a system around that than well watching multiple coins at once? I think so. i mean, in the beginning, it was because I wanted to focus on one coin. And then that was like, okay, i wanted to focus on one thing, Bitcoin. And then it was like, okay, three, six months in, I really understood Bitcoin to a decent extent at the moment.
00:12:54
Speaker
I personally feel in the way I trade, i need to understand something rather decently well before I start putting money there. um And I think people will also agree with the sense, I don't know, I've been training Bitcoin a long, long time, just Bitcoin day in, day out. I don't think there's been a day you know, even if it means a couple minutes at the very least, if there's been a day in the last seven years where I haven't checked the Bitcoin chart, you know, and some days it's multiple hours, some days it's couple minutes, most days it's actually hours on end, you know, and I think that in itself, it trains your brain heavily in it into that asset itself. So I feel like I'd have to do it with another asset, you know, whether it be,
00:13:35
Speaker
hype, whatever it may be, ETH to some extent, you know, before I start putting money there. But more importantly than that kind of sense, I still would want to build and lay out a system there. And it has to make financial sense ah to do that.
00:13:49
Speaker
I have to know that I have an edge there um before I actually do that, you know, before I start putting money there. And that takes time. serious time to build a plan out as to what I'm going And you know, when am I going to trade one asset over another? When am I going to trade both together? When am I going to trade one over the other? That's going to take serious time to do, you know? yeah Um, so I think people just overlook that type of thing.
00:14:13
Speaker
Um, really dive deep into what I feel is, um, necessary to make money because I just don't want to be losing money for the sake of losing money.
Adaptation and Sustainability in Trading
00:14:22
Speaker
Mm-hmm. so yeah i'm curious since uh i think very few people only trade one coin or a very few people that i'm aware of at least only trade one single market um how would you say has bitcoin changed over the years now because back then it was like dominated mostly by
00:14:46
Speaker
Centralized exchanges, I guess. And now we also have ETF flows and then CME maybe has more importance options and hyperliquid. Yeah. Yeah. I mean, I personally trade on hyperliquid.
00:14:59
Speaker
um Just I'll say that. But it's a very good point that Bitcoin is extremely fragmented in comparison how it was back then. um You know, back then it was definitely more like you could look at one exchange or like two exchanges and like you get a good sense of the readings. Now it's more, I guess you have to aggregate like a decent amount more, if anything. But also like nowadays, I mean, when I'm looking at flow, I'm sure we'll discuss the flow, et cetera, later on as well in a bit more detail.
00:15:26
Speaker
um You know, I'm not pinpointing direct figures like I used to before. Now, what I mean by that is, let's say, for example, I'm looking at Bitcoin at a higher or low on the day. I'm not going to look at one exchange necessarily and go, I want to see 15 million longs at the top.
00:15:42
Speaker
it's more of like a generalized aggregated flow type of view instead of pinpointing direct figures because that's very hard to do, especially with how Bitcoin is very fragmented nowadays, you see. So that's what I would say there. i would also say that Bitcoin in terms of how it's changed, I mean, it used to, especially on lower time frames, this is just my personal opinion, like used to swing failure pattern a lot more than it does now. I mean, you know, in terms of just very basic wick above, close below, like and that would be like massive fuel for a reversal. But I feel like that is definitely change nowadays to more um fake outs um still you're getting these spikes in general like for meme reversion plays um but overall it's definitely like more move below for example and then come back above like after a little bit of time like you know failed auction etc then it is like this one week and an sfp if anything when i see a swing failure pattern
00:16:36
Speaker
you know, I'm actually looking for it to fill the wick, for example, of the fixed swing failure pattern. So that's definitely something that's changed. I mean, that's probably like since 2021, I would say 2021 to now, i mean, time flies, we're almost 2026, you know, four five years.
00:16:51
Speaker
Um, And that's been the change there. So that's how i would say Bitcoin has changed. But I think it's definitely the biggest factor is not pinpointing direct figures directly like I would on if I was going to have, a you know, day trade, Scout, NQ, ES, etc.
00:17:08
Speaker
It's definitely not like that. I think they're very different in that sense because you have to aggregate flows, yeah you know, look at different things. I mean, I did say as well, I did miss out, but I do trade on Hyperliquid. So I don't know Do you trade on? Are you also trading on? What are you trading on? I didn't i should probably ask that as well.
00:17:23
Speaker
um Personally trade on mostly on Hyperliquid. Yeah. um I do like different different kinds. I've like started to do a bit more longer term swing trading lately and I'm doing that on Hyperliquid. But I also mainly what I've been doing most of the time is scalping.
00:17:41
Speaker
um usually on by a bit but i've also recently started using more of the the perps exchanges to to farm a bit of points oh i know extended um yeah basically like yeah i mean i'm i'm pretty i'm i'm using many like i a few slider extended edge x variational And now Nano, I think that's a Kraken one.
00:18:04
Speaker
um don I don't know how how much I'm i'm going to to speak on them as ah as a terminal maxi on their experience. Yes. No, it's interesting. I mean, even just very, very, very briefly touching on just how...
00:18:18
Speaker
in my experience you know i was also heavily on bybit at one point binance you know slowly switching over to dexes personally and i'm you know i'm not one to just go with i guess general consensus i found the experience to be better like personally um just from you know every month on a centralized place i'm always gonna get something you know limits here, limits there. I've never experienced that with like Hyperliquid, et cetera, or anything. So it's like, that's why, you know, I prefer that from just my own trading experience. So yeah, you know, we'll see how that space evolves, but also it you know, Hyperliquid got some interesting flows. So, you know, looking at open interest and stuff there, you know, I like doing that too, you know, comparing that to the centralized places like Bybit and Binance. I think you also have to look at the entities that, not entities, but you know, like the types of traders that are going to be trading on hyperliquid versus other exchanges.
00:19:14
Speaker
I am assuming that hyperliquid is going to have, you know, they're going to have, you know, you have to know what you're doing to first all get on there. But that doesn't mean you're going to be a good trader necessarily. um Maybe Binance is full of more algos. So is Bybit, you know, potentially, you know, Bybit still, I feel a bit more retail, but those like ah those types of groups of traders can influence how you trade it. You know, I feel that if I see a increase in open interest or increase in flows from Bybit or hyperliquid, I'm much more in...
00:19:43
Speaker
kind of what's the word inclined to look to mean revert it if they get trapped i feel like it's more painful than if i see open interest increase on binance i could be wrong i just you that's just how i've i've looked at and monitored it over the time so yeah so do you do you take like any trade fire or options data into account at all uh or good question and and no i don't um i'm looking for when there are news events so when you get cpi etc like i note down the figures i'm monitoring that when they're coming in how they're going to come into play into my plan But them themselves, like the actual news events and the news info and whatever have zero impact on the way I trade the market, um which some may view as weird, but I've built my system around, you know, kind of
00:20:37
Speaker
you know, what draws the, what causes the market to move, you know, greed, behavioral inefficiencies. That's kind of what I'm driving my decisions off of. And like using that, you know, behavioral inefficiencies, meaning looking for trap traders, offside positioning, and kind of going against that flow once they are caught offside. How do I quantify them being offside again?
00:20:58
Speaker
And that type of information is how I'm really capturing my trades and then using that with data, you know, that I've collected and continue to forward collect and test. That is how kind of I build my trading know and and kind and just problem solving in general. I think some of it comes with like just trying to think of unique ideas.
00:21:16
Speaker
um Just thinking differently. um like I think most people, just as an example, most people will come into this space for an example and you know they'll be like, what are the times for the day? you know At times, it sounds like session times, Asia, London, New York, whatever it may be.
00:21:34
Speaker
And my brain went like that. Okay. What are the times, but why are they set like that? Um, so that's perfectly fine. So I went and, you know, okay, why they said that and you reverse engineer. So I started going, okay, what's the median volume on average, you know, per hour per 15 minute bucket per day.
00:21:52
Speaker
you know what are the peaks and troughs of those to come up with like the best session best session time do they do they just align perfectly with what's already viewed as the norm or they slightly different so that's why i use actually slightly different session times to what people would view as the norm so to speak um doesn't mean they're better they just fit the way i trade because i'm looking for those spikes in volatility and whatever it may be um in those manners so yeah that's what i say you know just thinking a bit differently there Since you are so specialized, do you have like a view on Bitcoin in the future as an asset and also as a tradable asset?
00:22:32
Speaker
um That's a very good point. Do I have a view on it as in terms of like my view on Bitcoin? um In the beginning, it's very interesting because I got introduced to Bitcoin, not as like kind of this digital gold, but just like this thing to trade.
00:22:47
Speaker
And like yeah I was very much separated even still to this day a bit as, you know, it's just something I trade. you know I don't care whether it goes up or down, whatever. But and I still don't to an extent now, but still, you know, I feel As you gather wealth, you start thinking, where do you want to be placing your money long term? Where do you feel like this asset is going to be in long in the next 10, 20 years? um Historically, it's gone up. you know I'm not going to bet against it going up long, long term.
00:23:18
Speaker
And I think that's the way I like to play that. um does that mean going to put all my eggs in Bitcoin's basket? No. But I do feel even, you know, as long as my edge is there, and I think this is also important, you know, do do I view it as like something tradable in the distant future? um Only time will tell. I think, you know, my edge is there at the moment.
00:23:38
Speaker
I think, you know, the way i'm the way I'm going to plan for it is... My journal will tell me when my edge is eroding, simple as simple as it can be. I will know after 10, 15, 20, maybe not, maybe a bit more than that.
00:23:52
Speaker
Quite a few trades. How you know is my edge eroding? If it is, let's take a step back. and, you know, re-evolve everything to some extent, you know, and sit down and do that. I think that's also a big problem in the space is that it's not advertised enough to kind of take a step back and review whether you actually have an edge or not, you know, because I think people would just continuously endlessly trade. But if i realized through my journal over the course, because I have these systems in place where I'm doing like weekly, quarterly reviews, again, thanks to Tom Dante, SMB, all those guys for this.
00:24:26
Speaker
You know, I'll go, you know, doing all my routines and, you know, at the end of it, after like two, three months, i'll be able to tell myself, okay, my edge is eroding a bit here. I'm willing to take his debt back for like a month or two just to really sit down and wonder what's going on.
00:24:41
Speaker
I think people are a bit too afraid to sit down or sit out the market for that long. that You know, i think people are afraid to sit down at the market for a day, let alone a month or two, you know? So getting your brain comfortable with that is also something there. So back to your question of like, do I think it's going to be tradable back then?
00:24:56
Speaker
I don't know. In three years, it might not be tradable for me. It's just really, how does my edge develop across those years? You know, I think that's what's most important. Could you ever see yourself trading any other markets like stocks or effects or? Yeah.
00:25:12
Speaker
Yeah. I think definitely. Um, I, I mean, NQ or ES. I think those two are the ones that probably NQ if any. um But I haven't had the chance to dabble into it yet only because i feel my edges there at the moment on Bitcoin and it's and we'll talk about our multiple and stuff in a bit.
00:25:33
Speaker
um But my edge is there at the moment. So I feel like there's no necessary need to divert my attention there. Interesting enough. I mean, I don't want to say i know there's, um you know, trade XYZ and all these different places to trade that I've actually been taking a look at you know, XYZ 100, whatever.
00:25:54
Speaker
That's quite interesting to me. I just like because I like that user experience. It's caught my eye. Yeah, me too. And it could become deeper liquidity you know moving forward. So that's something of interest, but nothing that I've taken any action on yet. you know Again, so I'm quite methodical in the thought, in the process that I got to sit down and really think about this if I'm going to trade it.
Order Flow and Market Dynamics
00:26:15
Speaker
And it's got to go a lot of time and planning into that. I can't just go one day I'm going to XYZ 100 or NQ or ES and let's go for it. And it's going to be like, you'll probably hear me talking about it for months before or weeks at the very least before I do anything there.
00:26:30
Speaker
um So that's important. Yeah. I'm interested what what the process would look like when you see, when you would see that your edge is eroding. Like if you look at at your your journal and then you maybe see your win rate is decreasing and then would you just ah step back as you said and like reevaluate what you're doing or maybe like that the market regime is not the correct one yeah for your current strategy or? I think it's really important as to... ah I've always found it the hardest in the very early stages to stick to the plan because I can only tell if my edge is eroding if I've been sticking to the plan.
00:27:16
Speaker
I think that's ah a really big factor to this all because... Is my win rate dropping because my edge is eroding or is it eroding because I'm not sticking to the, you know, is my win rate dropping because I'm not sticking to the plan?
00:27:28
Speaker
um And they're two very different things. um So the process would be, you know, what would I do if I saw my win rate starting to drop? And also it has to be a you know sustained period of time.
00:27:41
Speaker
You know, I'm not going to be the one to take three losing trades in Aurora and go, oh my God, I need to change everything. That's not going to happen. it's It's a sustained period of... you know lack ah I have the numbers down, written down. I believe it's something like 10 to 15R. I'm really seriously evaluating what I'm doing if I ever get to that phase because I think you have to be willing to experience drawdown. um So yeah, 10 to 15R, I think that I have a direct figure that I calculated. um you know Let's just say 15R. If I'm down that much, you know I'm stepping back and I'm evaluating whether it be the the fact that my edge is eroding
00:28:17
Speaker
because it's just no longer, you know, the edges are eroding and I'm sticking to my plan or it's eroding and I'm not sticking to my plan. I'd probably rather it erode and I'm not sticking to the plan um because I know it's very easy to identify that, you know, i'm not sticking to the plan.
00:28:33
Speaker
um i need to, you know, that would help the the you know the situation if I was sticking to the plan and I'm hitting 15 hour drawdown just as an example. then it requires a different level of thought um in the sense that you know kind of Let's find cook, you know fine comb kind of through my journal. Let's highlight all losing trades to begin with.
00:28:57
Speaker
Okay. Let's highlight the biggest losing trades and why are they sticking out? Why, why are they there? um You know, and what's the market regime been over those periods of time. So like tons of questions are being asked.
00:29:10
Speaker
And then at that point I'd probably then go, okay, let me rework my written plan because i i don't, ah I don't know if I've shown it anywhere. I mean, I show some people I talk with individually, but I have a really, really, um,
00:29:24
Speaker
detailed plan and like system that you know is there and i have it in writing and i have it laid out and i can just go pick a certain aspect of it change it test it and come back in you know you know a few weeks whatever you know and see has the edge chain what's happened in the trading how has that taken effect so that's kind of the way I'm being going about that, I would go about that if I'm honest.
00:29:50
Speaker
um You know, in terms of like, if I was losing chop change a bit, but it it's also really dependent on how you're losing. So that's what I would say there. How do you manage to stay so disciplined within the system? Because I've seen you talk about it a lot before as well. And I really find it impressive how like,
00:30:14
Speaker
extensive and rigorous it is um but I think like very very few people actually have their system like written down in that way and then also execute it over such a long time period especially as a day trader but what makes you like so disciplined in that regard what helped you to become that way If I don't stick to it, there's no point in doing it.
00:30:39
Speaker
um There's literally no point in me being at the chart. I mean, that's part of it. um The other part of it, I think, is that people can't stick to something because they have zero conviction around it. And I gained conviction through data.
00:30:52
Speaker
If I, I mean, that's personally how I gained conviction through data. If I've gone and tested something you know over the course of three months, I've gone on a testing period and I go, okay, this has been working over the last three months. I'm going to continue doing that.
00:31:06
Speaker
You know, I've got the data that supports it. So i'm like much more likely to stick with it than like try and divert because I'm not gonna, I don't want to sound harsh, but if you're diverting from your plan randomly, then it's like you're, true you're really kind of trying to punt and like, it's like your desperation is kicking in.
00:31:25
Speaker
Um, almost like if I'm diverting from my plan, like I must be desperate for when or something's going on there for that to happen. Um, so, you know, conviction, you know, and, you know, create conviction through data and ultimately, you know, it's,
00:31:43
Speaker
I hear tons of people, you know, talk about this, but just, you know, if I'm not following it, I might as well not be in this business, you know, like at all. Um, because I just, you know, I'm trading something that doesn't have an edge at that point or, or, you know, at the very least gambling, you know?
00:32:02
Speaker
sir So the way that you gain a conviction is by um documenting everything as well. And I think like we we can talk a bit about order flow, which is like your area of expertise, I would say. yeah Or I can personally say I learned a bunch of order flow things, not like exclusively from you, but definitely through your educational content as well. So thanks maybe we can talk a bit about that.
00:32:29
Speaker
Yes. All the flow in trading. It's interesting. I think people think it's going to be the Holy Grail. I think they just go, let's get into all the flow. Let's get into footprint.
00:32:44
Speaker
Let's get into whatever it may be. This is the Holy ghost It's going to tell me exactly what's going to happen. That is not the case. ah Sorry to burn it there. mean, at least from my experience, it's definitely not the case. You know, it it just gives you more variables.
00:32:59
Speaker
ah to use to test with, you know, um I think that's the most best, the best way to put it really, you know, if I'm trading, just using the candles and this is there, you don't need to use order flow.
00:33:13
Speaker
It's a nice. And I'll talk about this in a second, but let's say I have a candlestick chart. I have an open, a high, low close, and I have timeframes. Those are your variables, right? Your candles and your timeframes and you know, your volume bars, maybe from trading view, whatever.
00:33:28
Speaker
Now, if you implement order flow into it, you have open interest, you have tick sizes, you have Delta cluster, you have filters, you have all these different parameters that you can mess with.
00:33:40
Speaker
But ultimately it's just how do you incorporate it into your plan? You don't need order flow, but let's say you have, um, you know, trading view candlesticks, you can use that to build a plan, for example. But when you have order flow, you can obviously incorporate other details that I feel are really ah connected to, for example, the core foundations of how you exploit the market in the sense of behavioral greed and inefficiencies in the sense that Behavioral inefficiencies, right? Are people getting caught offside? It's harder to see that through regular candlesticks than it is through order flow. Through order flow, I can see where are new positions actually opening?
00:34:17
Speaker
How can I use that to build a system? How can I look to fade that, for example? So I've added more variables in there, but they're necessary to help me you know and you know exploit the and you know the underlying foundations of it all.
00:34:30
Speaker
I think that's the biggest thing. I think the biggest thing I can say is like, understand what you're trying to exploit or capture, you know, momentum. Maybe you're trying to capture a momentum. how are you how does you know How does that look? What are you trying to capture momentum, right?
00:34:43
Speaker
You're trying to trade with people that are on side, you know, break it down to its really core market microstructure fundamentals there. Okay. You're trying to trade with people that are on side. That involves, you know, identifying at what point are people on side, for example, for a trade.
00:35:00
Speaker
And you can only really do that through order flow. Like at least it's not really viable for your candlesticks, as ah in my opinion. You know, um so that's what I'd say with order flow. Understand the underlying reason you're trying to or underlying method to try and exploit the market and then use order flow to build a system that helps you do that.
00:35:20
Speaker
um i think that's the best way to put it you know let me know if you think i've missed something there but no i think i think that's a good explanation i'm curious how long did it take you to really feel like you master that uh area or like be i don't i don't know if you feel like that but like uh at least you feel like you can teach people and i think you're doing well at that so i i feel like i understand the good the mechanics of it all at the moment But you're always learning. I'm still learning. It's more so learning how to incorporate different things into my system. you know like
00:35:53
Speaker
Funding rates are important. um I'm looking at the moment, you know spending time trying to build that into my system if it's necessary, you know looking at that, how would that implement it all? um How long did it take me it to you know to to get a good grasp on it?
00:36:10
Speaker
it takes, you know what it takes, you know, you have to find it interesting. I mean, I, I, I found that you have to find it interesting that I, I really, um I just had a love for order flow, you know, I know it sounds weird, you know, whatever i just, know i go actually i go you know, you enjoyed looking at the charts like that, you know, you enjoyed seeing people getting liquidated or this happening. And then you're really diving into that.
00:36:34
Speaker
How does that work? You know, left side market sells, right side market buys. Okay. On the footprint, What does that mean in the sense of order? So it didn't take me. I'd say it took me a year wow know to get like a really good understanding. Like probably took me three, four years like to get like really, really um probably to this point now. Yeah, it took me like four or five years and it kind of slowly plateaus to some extent as to like what you know you need to understand also just how you're implementing it.
Tools and Execution in Trading
00:37:03
Speaker
um So does that, I would say. yeah it didn't It takes some time, but you just have to want to do it. yeah I think that's the biggest key. Like if you're just trying to do it to make money, that's something else. But I think you have to really want to understand it and learn it. And there's tons of resources out there, you know, about it. So that's what I'd say there. No, it can definitely relate to that. I remember um years ago, I always used to look at the the charts that Trip was posting and I was just so kind of like mesmerized by them. And i just I also just like really enjoy, as you said, looking at it. And at the beginning, I obviously didn't really understand what what was going on, but um it just feels I mean, with trading, you can pretty much do whatever you want. And if it works for you, then it works for you. But yeah, for me, like when when people just post charts and then post like trend lines or support resistance or whatever, it always just seemed a bit
00:37:59
Speaker
arbitrary to me or never really like intuitively easy to understand and with autoflow i feel like there's a lot more logic to it which it makes it feel like better as a tool for me to use personally because it's like easier to build conviction off of something where i feel like there is a logic to it and it's just such not just like astrology for man that i'm convincing myself of Yeah.
00:38:23
Speaker
Yeah, no, exactly. I think that's the that's the best way to look at it. It makes sense to you. You know, I think, you know, when you see people longing or shorting a specific level, like directly in the sense of like open interest and that type of data, like that's not something you see through trend lines maybe as easily or, you know, as clearly. So definitely that that that's what it was for me.
00:38:48
Speaker
What is your at ExoCharts? So I'm the lead in like direction. So like, I'm not a developer of any standards. I'm just the lead there in the sense of the direction the product's taking, the new features that are getting implemented.
00:39:03
Speaker
And that's kind of my role there. So yeah. How did you get working with them? how How long have you been with them? Oh, I've been there for, I would say, I think it's been at least four years now.
00:39:14
Speaker
maybe five, you know, quite a while. And then you have Varan, who's the lead, got the actual head developer there um and the the founder. And he brought me in and yeah, it's a great we have a great working relationship, I would say, you know, every day.
00:39:31
Speaker
communicating on what needs to be done, what should be done, what, are we going to add this testing, this testing that, um, it's a different area for me because I'm, you know, I was just a massive user of the product and it then evolved into that type of working role. And I think the biggest thing, it was just like, you know, testing different things is not my expertise. You know, my job full time is day trading. 95% of my income is through trading.
00:39:55
Speaker
Um, and, you know, just testing a product is something very different to me. So that's something I'm still trying to work on now is like, you know, again, my trading is kind of bringing over to ExoCharts because I'm implementing a system to actually test the software itself. And, you know, that is how my kind of day-to-day looks. Sometimes I'll be testing, he'll be developing, I'll be incorporating different features, whatever it may be. So that's how it is there.
00:40:22
Speaker
I see. yeah yeah i'm a huge i'm a huge fan obviously yeah of xhrs because i just enjoy looking at it and i guess it's also a bit similar with me and and the terminal uh also before i started working here i've been a long long-term user and fan and enjoyer and then i'm very glad that i can now uh also be a contributor in some way yeah yeah the term the terminal is awesome you know i have um I literally, if you check my channel, I have an older video.
00:40:53
Speaker
Not, I say older, am I don't know, it might have been a year or two old where I'm covering like how I'm using the terminal. I use terminal at the moment daily, day in, day out. Um, It's, you know, I would say there's two products where I know like the back of my hand, like ExoCharts and then Silico, i I would say the terminal. Those two I know like extremely, extremely well um just through again, wanting to get the best out of both of them. So yeah, I'm using terminal day in day out again. you obviously got Hyperliquid that integrations there is seamless, I would say. So there's a lot of use case. I'll do an updated video on terminal as well, because again, there's new use cases and everything's new since I've done that last video, but a lot of the things still apply then.
00:41:33
Speaker
And I would say now, so yeah, that would be interesting to do a new video on them and discuss that again. um but yeah, terminal's awesome. I personally recommend people to use it, you know, why not?
00:41:44
Speaker
Have you, have you ever been, uh, have you always been aware of like the importance of execution in your trading or is that something that was like, uh, that you've discovered throughout the years?
00:41:56
Speaker
igu I would say I discovered out the, I hate the exchange UIs. In general, they're awful. Me too. general, they're awful. Now, yeah I'll talk about it a bit more, but I think there is this consensus, slight shift from people that I've spoken to that I think they care about the wrong things slightly in sense of their execution. um Because I think people are,
00:42:25
Speaker
Okay, so I'll give you the biggest example of this. i i was going to discuss in the video, but we'll discuss it here. I think, for example, people want to use limit chase a lot, which is perfectly fine. I use limit chase on the on occasion too. However, if you go back and look through your trades and your journal,
00:42:44
Speaker
Right. Limit chases causing me to pay up. I'm just talking from how I viewed this limit chase is causing me to pay up every time I'm using it. Essentially that's his job by the way is to cause you to pay up. But if you look at all your winning trades, how often are you going into drawdown on any of those winning trades?
00:43:00
Speaker
you're at least going a dollar or two into drawdown. Most of the time, every time I spoke to someone, they're saying they're going at least a dollar or two into drawdown. It's very unlikely they get in the trade and it just shoots up in their favor. By the way, if that's you, then ignore everything I'm about to say here. If it just, you get in and it goes straight, you know, but if it doesn't, then like what you're actually better off doing. And again, through terminal, you can do this. is placing a scale order below price so you're you know you're not paying up necessarily you just wait for price to come and back and fill you and that requires a level of patience that you can only get really through reviewing your journal because i knew no on every single one of my winning trades in the past like it's going at least into drawdown by like two three dollars at a minimum and that's like you know sometimes most the way more than that
00:43:46
Speaker
So every single time, instead of chasing up, I should just place a limit two, $3 below where I was about to exit, execute, sorry. So now I'm just actually, you know, it requires more patience, but the data shows me that I should be doing that, like factually. So that's just one way of doing it. I think, um, there's so many other areas of execution that you can dive into in terms of like optimizing it, but that's just one way I found is just, you know,
00:44:11
Speaker
You know, you go from paying market orders all the time to limit chasing. Now I feel it's like, okay, limit scaling in slightly, you know, and it's just every single three, you know, the three stages for me, at least, you know, market, limit, chase, limit scale. I'm constantly just getting better execution.
00:44:28
Speaker
you know so that's that's the way i'd do it but you know limit chase is still great you know uh but you know just one thing i've noticed in my training is you know being patient and waiting for it to come back because it's not necessary to always want to pay up necessarily so yeah Do you, when you use limit scale, do you, um, distribute them all equally or like, uh, I do them equally. price or size i I do them equally. Sometimes I'll even do, I won't even limit scale. I'll just place one single order below to get it in. Um, because then it can get complicated if I'm getting like partial food. Sometimes ill just place one single order and let that go. But yeah, uh, I would evenly distribute if I was going to that. Yeah.
00:45:09
Speaker
I see it interesting. But it's interesting you say that. It's interesting you say that. Maybe I should be weighting the orders heavier to the lower side if I'm going long, for example, so that I'm getting again a better fill. You know, it really just really optimizing that amount that how far do winning trades go against you you know first and then that can give you like the best execution over time and optimizing for that and i always go into with people because i talk with like a few people that i trade with and we discuss and some people that i teach or whatever and you know some of them will be not they don't but you know they'll go are we focused on this small detail here and i'm like look at
00:45:51
Speaker
At the size I trade at the moment, this is important. You know, when I, if I laid this money on the table, it's actually a significant amount of money, um, that this very small detail can make.
00:46:03
Speaker
Um, so I, I'd recommend it because these people probably also have some money that, you know, it's gonna, it's gonna play an impact, honestly, the end the day. So yeah, that's what I would say that is, um, it's so important. And, and again, in silico has helped me optimize the execution.
00:46:19
Speaker
Mm-hmm. Do you like run into into size constraints with like your size or what you're doing when executing? No, not yet.
00:46:30
Speaker
um
00:46:33
Speaker
i Because basically what happened was I would trade Hyperliquid in the early days, like quite early on. Uh, and I did then, and nowadays it's like, not really, um, not necessarily. No, especially because if I'm scaling in and that's something I didn't touch upon there, um, would be if I'm going to scale in depends on like all the book depth at the level I'm trying to scale. This this is like quite nuanced, but if I'm going to place one order, the book has to be thick.
00:47:04
Speaker
and If I'm going to place scattered, order you know scaled orders, is that the the book's likely thinner. So I likely have no impact. But if the book is you know extremely thin, then like you know I'm doing the difference between one single order and like scaling orders. so I didn't think we'd get into the nuances here, but this is interesting conversation. So yes. No, I think ah refer in usually in the podcast, I talk about um just generic ah trading stuff. But I think with you, it's interesting to go a bit into the weeds of like detailed execution. yeah Because not just to shield the terminal and whatever, but it's also just interesting. Because I think execution is so...
00:47:46
Speaker
underlooked and undervalued as an area in trading. I remember when I first ah started, like i've I'm doing a lot of scalping and I've i've started out with that. And at the beginning, I just noticed like whatever I did, I just lost money because yeah I only marketed in and marketed out.
00:48:05
Speaker
And I couldn't really figure out how to how to do that in ah in a better way. And it's just like you're you're paying so much money for basically no reason. And then discovered limit chasing and like all the other features that the terminal has. And it's like no one really teaches that sort of stuff.
00:48:22
Speaker
on how to optimally execute, especially when there's like so little percentage wise moves that matter and like the execution. I should do video on this.
00:48:33
Speaker
Yeah, I think you should. Optimizing execution because and especially getting it, it might be harder to do it on the podcast just because the visual is needed for this. but It's, it's so important. I know someone that's literally only until that I spoke to them was wasting millions in dollars in fees this year alone. Like in one year they had wasted millions in fees alone.
00:48:56
Speaker
So that was interesting. Um, and you know, it's out there, there's a people out there. So I think it's important we mentioned it.
Mentoring and Common Mistakes
00:49:06
Speaker
Yeah.
00:49:08
Speaker
um Do you like you you personally mentor people? Is that something you do? ah Yes, I do. I have like a waitlist type thing. and Every now and then I'll go. and I mainly do it because it keeps me on the ball with mistakes I would have made in the past. Like I see the amount of people i speak to to who have made the mistakes in the past, either that I made and they're doing it now and it like refreshes it in my brain. And that's important. You know, problem solving with them is important to, you know, seeing how other people's strategies work or don't work.
00:49:43
Speaker
You know, that really helps me in my game. that Yeah. Maybe they might not even realize that they're helping me out as well, but um that's part of it, you know, at the end of the day. And I don't I don't I really, really limit myself in doing that. Like he I probably have around three people that I do, my maybe four.
00:50:01
Speaker
um And it's like very narrowed down, like just discussion and topics. So, I mean, if people are interesting, they can apply. i don't want to promise anything, but there's a wait list type thing. Maybe I'll comb through it maybe like every six months if there's interest and yeah, go for it. but do do they trade in a similar style to you or? No, not not not not all of them. um Some are trading multiple assets and it's about how they come up with system for that.
00:50:32
Speaker
you know, they're trading multiple pairs. So, you know, they're trading, they're trading multiple pairs. How do up system for that with them? that They already have a system. a lot of them already, you know, they've been watching my material. So they have like their own, they've built their own system.
00:50:47
Speaker
So it's like, okay, how can I help them optimize this? And it goes really well, you know, like it goes astronomically well because I, because I've seen so many journals at this point, it's like,
00:50:59
Speaker
it's second nature for me to like pick up on like these things that I see and I'm like, okay, this is definitely something that can be improved here. Um, and always seeing the bright side of things because I've been in the dark places and trading myself. And like, sometimes you go to speak with someone, they've had a bad period.
00:51:15
Speaker
And it's like picking them up to like an extent where like, look, you know, you're not winning because you're not following your plan here. It's not because your system isn't working. You just need to follow it, you know? And, and then it's actually talking about really, you know, you get into these conversations that you you thought you wouldn't have over the internet. It's like quite deep. It's like, why aren't you following your plan? Right. Because if the plan's there and there's an edge there and you know there's an edge there, why aren't you following it? What's going on?
00:51:41
Speaker
ah And it's breaking those down those like nuanced personal kind of issues people will have, you know, what are you doing when you wake up and coming to the charts? it What's distracting you?
00:51:52
Speaker
um Time delay, you know, um the biggest thing, the biggest probably learning that i've I've seen is like this constant reentering of trades. This is like the most common thing that I've seen across every single person, not every single person, but a lot of people They'll get in, they'll get out. And then like you see the next trade above is like 10 seconds later or 20 seconds later, they're back in.
00:52:15
Speaker
And I'm like, oh, this is, and it's also a loser. And it's like constant, they're constantly doing it like two, three times. And it's like, if you're doing that two, three times, you should just stop yourself next time you're going this and then be done with it for good. um so So it's basically like an in instant revenge trade or? Yeah, it's an instant revenge trade essentially, you know, and like they're constantly into it again. And it's very, very common, very common. at least in people that have applied and I've spoken with. So yeah, that's it's interesting. There's a lot there. there's That's like a very small part of it. But that's one thing again that's um that I've noticed.
00:52:52
Speaker
Are there any other things that are like very common with people usually that they do wrong? they if so that if' Not wrong. Okay. Is that they definitely trade too much. I mean, it leads to that part is that every single person again has trade that just trades too much. um way too much you know taking know someone that was taking what were they doing you know they're doing they're doing maybe like 80 100 trades like i think every like week at some point it's like okay well you know This is way too, unlike the returns they're seeing are like not worth it one bit. And also if you're doing that many trades, I'm not against it at all, but you've got to properly review every single one because every single professional I've actually seen do that amount of trades to that type of frequency, like they're reviewing every single one diligently as well. And it requires that level of work. And if you're not willing to do that,
00:53:45
Speaker
like you need to scale this down drastically. Like there's there's no reason to be ever doing that many trades. and that's like the biggest thing. Sometimes it's not 80 to one hundred a hundred week or whatever, but it's, it's a lot less. Um, but it's still too many.
00:53:57
Speaker
Like most people are trading way too much. Um, So that's probably the big, that's probably the second, you know, those two are quite very big, you know, what what is your usual trade frequency in like a day or I, I probably at at the moment I'm taking probably, you know, actually last month, November was three a week on average, um, 12 trades total. So in that, in average that to be three a week.
00:54:19
Speaker
Yeah. So, and it's like, usually I'm not holding them over consecutive days. It's just, I get in and I'm out over the course of the next few hours. Um, but I would say last month um I've taken like very slightly less, probably it's more averaged out to like four a week.
00:54:37
Speaker
Um, yeah, three, four a week is probably where I'm at. at the moment i'm i'm curious how like as you've come along in your journey as a trader and and developed your system and are pretty much what you've set out to be like a full-time trader that is into the profession how is like your your like outlook on trading change or like your outlook on life how is your like what what keeps you what keeps you going where do you see yourself going in the future
00:55:09
Speaker
The honest answer with this, um, I don't know. i don't know. i enjoy what I'm doing.
00:55:19
Speaker
um I enjoy making the money I'm making at the moment. Uh, and I want to see how really far I can take myself and in this kind of competitive sport that is trading to some extent, you know, how far can I really take myself?
Vision and Risk Management
00:55:34
Speaker
Um, I don't know where I'll be in 10, 20 years. I think that's also extremely important, but I will keep pushing myself on that front. um and And for as long as I'm enjoying it, which you know, it doesn't seem to slow down, then, you know, I'm going to continue to do it.
00:55:52
Speaker
I think, don't know if there was more of an extravagant answer to this, but what keeps me going is that I just enjoy waking up and doing it, you know, like, listen, i mean, there's, there's times, you know, in the past I'm going to bed with my laptop on my chest You know, like that is, that's what it was. You know, I do 16 hour days for fun, you know, like just sitting down on the computer. you like And even to this day, like that, that still exists in me. Like still, every hour, like I think about this or some stage I'm thinking about this. I'm out for dinner. I'm thinking about this. If I'm wherever I am, I'm thinking about this. Like that, it just doesn't stop. And I don't know what will make it stop, but that's the way I am at the moment, you know, you're here forever.
00:56:36
Speaker
I never, never, no never forever, but you know, I'm here for a long time. You know, I don't plan on being that, you know, i think that's important. i mean, people have this, this, I want to touch upon this as well. People have this outlook on just being here for a 50 X and leaving to my, you know, as far as I know, I could be completely wrong on this. I very, very, very, very very rarely see that happen.
00:57:01
Speaker
Where you get 50x and you're done. First of all, where someone gets 50x to begin with, but where you get 50x and then you leave and stop doing it there and then, is like, that doesn't exist.
00:57:12
Speaker
So... So that's also, you know, having that longer term outlook is important to me. And with that, it's like, I want to say to someone who's just looking to get into trade and like, I always get asked, like what are people looking for in terms of returns? And like, if you can get, you know, if someone out there in your audience is doing like two, three hour trades a month,
00:57:34
Speaker
two to three hour trades in terms of like their performance a month that's not bad obviously there's room to be done on that like I would recommend you there's no specific number you know maybe seven eight hours is really good work but you know even if you're doing two three hour a month don't think you're being held back that's probably the best place to be because it just means if you're two three are more away from being like really really up there You know, all of a sudden you're doing six hour a month, just an example.
00:58:01
Speaker
Um, and imagine you've averaged six hour a month for 12 months on end, right? That's then you're all of a sudden you're doing 72 hour a year. Um, I think my math is right there. I could be wrong. No, yeah. 72 hour a year.
00:58:13
Speaker
I think. How, how, how do you define that? Like how do you, yeah, that's the, what does R mean in this context? so Yeah. So like, you know, how much you're risking versus getting on a trade, for example. Right. But let's just and that is obviously like ah that's a whole nother topic, you know, because it's really dependent how much you're risking per trade is based on a specific setup, ah what's its average expected value, that type of thing. Let's just go with And this is never the case, by the way.
00:58:41
Speaker
had go but with You're ticking my brain. I've got so much to talk about here. if there's Let's just imagine every trade is 1%. You're risking 1%. Most people will risk way more than this, by way. But let's just say you're risking 1% and you're getting 6% a month. So you're getting 6% month.
00:58:57
Speaker
okay and this is not the case because you're going have varying risk and i'll talk about that in a second but you're doing six percent a month times 12 72 a year you're like yeah you're over the moon number one you you're over the moon with that people don't look at it ever like with that outlook so you know just go for small percentage gains to begin with and steady on now what i would say here is that every single person out there i completely agree with the fact that you should not be at your later stage in your group you should be aiming to have varying risk in terms of like how much you're risking per trade. But I think that message is shared, shared across way too soon in most people's careers. And they start risking different sizes on trades. They have no clue what the edge is on it, on anything.
00:59:45
Speaker
Yeah. What I'd recommend is actually starting with constant sizing. and journaling that and finding which, you know, what you need to size up on them. Don't size up randomly, like size up in a controlled manner, like on a specific setup or specific you know system. like don't you know Every single strategy you trade is going to have a different you know expected value. Obviously, there's a size accordingly to that.
01:00:10
Speaker
But most people never get to the stage where they even test the strategy itself evenly to get a good idea as to what they should be risking. So it's like risk constant, slowly build, identify and then like diversify the risk.
01:00:24
Speaker
But most people jump way too soon into like diversifying their risk based on like ball tingling and you know stuff like that. So I mean, that's what I'd recommend is going that what that route.
01:00:37
Speaker
And like go slower and steady. If you want to be here for the long run, I personally really think that's the best way about it.
01:00:46
Speaker
Yeah, that absolutely makes sense. I think like position sizing is a way very difficult thing, even if you're like an experienced trader. I just wanted to like say one more thing about what you said earlier. um course Like what what keeps you motivated and that you want to like just push yourself as far as as possible.
01:01:04
Speaker
um I recently listened to a podcast about um there's a podcast called Acquired. Like they talk about companies and how they feel like the major companies that exist in the world nowadays. And they did an episode about Berkshire Hathaway.
01:01:18
Speaker
So what Warren Warren Buffett? Yeah, it's like nine nine hour long three part series. um But it really inspired me because he or they talked about how he really early on, like realized the value of compounding.
01:01:33
Speaker
And he like is a living example of actually doing that. like He's 95 years old now. I think he just brought his last shareholder letter recently. yeah And obviously, like investing is a little different than trading, but the the same reasoning still applies because like he genuinely pushed that to the limit of like becoming one of the richest people in the world just by doing that.
01:01:57
Speaker
And so I can definitely relate to to what you said there before. Yeah, I would definitely say that this applies, the same theory applies to trading and you know just having that longer term outlook on it. you know The word compounding, you know the word compound and compounding, they just have that long term outlook to things.
01:02:17
Speaker
then' not you know You're not going to see compounding take effect in like a week, usually, you know or a day or a single trade. It is over ah over a long period of time. And yeah, that's that's again, I completely agree with that.
01:02:32
Speaker
Yeah, think that's everything that I've wanted talk about so far. Do you have any any closing words, anything you would like to share? um Focus on the long term.
01:02:44
Speaker
I mean, think about what your goals are. First of all, everyone, I would say. um And, you know, think about, you know, what you want to do. i mean, if you want to be here in, you know, if you want to do this for a week, 50 X and leave, maybe there's something out there that I'm missing.
01:02:58
Speaker
I don't know, you know, and there's people out there that can maybe go over and try that with you. But if you want to do for a career, then, you know, take it slowly, you know, look for reasonable gains and, you know, focus on the small details.
01:03:12
Speaker
I really appreciate you having me on. It's been great talking. Yeah, thank you. Thank you very much for for coming on. I'm glad that we that we finally made it. think this was a good episode.
01:03:23
Speaker
Yeah. Thank you. Awesome.