FIVE REASONS WHY TRADERS BLOW UP THEIR ACCOUNTS - podcast episode cover

FIVE REASONS WHY TRADERS BLOW UP THEIR ACCOUNTS

Jan 16, 2023•15 min
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Episode description

In this clip we talked about five reasons why traders blow up their accounts, and how to avoid the mistakes. #stocks #trading #investing 


Full Episode: https://youtu.be/VQctchFhkmw (https://youtu.be/VQctchFhkmw)


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Transcript

Speaker 1

An illegal alien from Guatemala charged with raping a child in Massachusetts. An MS thirteen gang member from Al Salvador accused of murdering a Texas man of Venezuelan charged with filming and selling child pornography in Michigan. These are just some of the heinous migrant criminals caught because of President Donald J. Trump's leadership. I'm Christy nom the United States

Secretary of Homeland Security. Under President Trump, attempted illegal border crossings are at the lowest levels ever recorded, and over one hundred thousand illegal aliens have been arrested. If you are here illegally, your next you will be fined nearly one thousand dollars a day, imprisoned, and deported. You will never return. But if you register using our CBP home app and leave now, you could be allowed to return legally.

Do what's right. Leave now. Under President Trump, America's laws, border and families will be protected.

Speaker 2

Sponsored by the United States Department of Homeland Security.

Speaker 3

What are the top five reasons traders blow their blow up their account? What are the top five reasons that traders blow up their account?

Speaker 4

Yeah, so, if twenty twenty two wasn't a great year for you. Please write these down. I want to be able to help you out. Number one. Most traders take too many trades, which ends up blowing up their account because only it only takes three or four bad ones to have you drawt down about fifty to seventy percent. If you're using leverage, I think you should stay within the range of twenty maximum for the year.

Speaker 5

If we have a bullish market.

Speaker 4

If we have a bearish market, you should stay within twelve trades for the year.

Speaker 5

Number two.

Speaker 4

Not doing the enner work to heal your money traumas and working on yourself constantly to become a better person. That's why at every show I'll always start with I deserve.

Speaker 5

To be happy. I deserve to be wealthy. I deserve to be rich, I deserve to be free.

Speaker 4

How many of you honestly truly believe that you're worth two to fifteen million dollars a year? And I know hopefully we get a bunch in chat, but normally when I'm speaking to people, most people don't feel that they're worth at.

Speaker 5

Or that they deserve that amount.

Speaker 4

So you have to do that in the work to understand, especially if you grew a poor or you were broke for a period of time.

Speaker 5

That financial trauma can seep into your life and can cause you to self sabotage.

Speaker 4

Has anybody ever like taken the trade they know that they were going to lose, or they put on a position size that it was way too heavy, Or you got on a good streak of six, seven, eight trades in a row, and then your next ten were terrible trays that you you should have stayed away from. So make sure you hear those traumas first to be able to do better in the market. Number three having a

very erratic workspace. So your workspace should be like a spa like I want you guys to meditate, and I talked about this on a stock club called Last Week, But you need to meditate before, during, and after your trading session. So I know somebody you love to play rap and you'd like to get hyped and think that you're going to attack the market, but the market usually attacking you. So you want your place to be a

place of serenity. I also can tell if a person is talking too fast that their trading is usually not going well. And the last one is not having a system with the mathematical edge tied to a risk to reward ratio that is in your favor. I cannot stress that enough. Even if most of you get the direction wrong.

And let's say you counter trained, if you have a risk to reward of one to eleven, even though your countertrend trades are ones that are going in your favor, you can end up making a hell of a lot of money.

Speaker 5

I don't want you to counter trend trade. I want you to go with the direction.

Speaker 4

But when I ask most people when i'm out, hey, if you took one hundred trades, out of those hundred, how many would you win? And what's the multiple that you'll get on the trades that you've taken?

Speaker 5

Most don't know.

Speaker 4

So if I ask you, guys like, hey, if you put out one hundred episodes, how many hits are you going to have? And out of those let's say eight to twelve hits, what kind of deal flow they give you? You guys can give me an yes, sir. For traders, if you don't know, out of one hundred trade how many you're gonna win and what's the mathematical probability if you're doing that in any market? If you don't know

that you're purely gambling. And those are the five things you can do to make sure that you don't blow up your account.

Speaker 5

Can we add an asterisk off like a number six?

Speaker 6

What are your thoughts on people not just overtrading, but trading across different sectors, not focusing. And I know a lot of times we spoke to a lot of people who are in the space. Aristyle is one of those guys, and he's like, yeah, I'm only trading twelve things. Like we know we're talking like, yeah, I'm only trading fifteen to twenty times for the year.

Speaker 5

Yeah. People who are just.

Speaker 6

Trading like and there's no real plan or strategy. It's just like kind of like speculation.

Speaker 4

It's disaster like those are like the real real pill traders, Like they want all the trades, all the women, all the cars, Like it takes a lot to manage all that man like if you haven't really mastered. And that's why even when I introduced two tattoo index, that'say long term strategy once you got to stick with and then also invest and then global equities in the bond market.

Speaker 5

That is a hedge fund strategy.

Speaker 4

I put it in the stock club last week, but there was a hedge fund manager that's up one hundred and twenty three percent, shortening the bond and.

Speaker 5

Es future last year. You have to specialize.

Speaker 4

I think people that try and be generalists end up getting destroyed when you really buckle down on one strut And you've seen us do it with this, like of course, like there's nineteen other shows I could have done after this, but it's like, hunker down on one, be good at one thing, be able to rest and repeat, and all the profitability that you want to see.

Speaker 5

And I don't know any traders that trades every market.

Speaker 4

I don't know many traders that trade futures, four X options, stocks, NFT, crypto. Like, whatever your lane is, whether it's crypto, NFT four x, master the hell out of it. Get your win to ratio.

Speaker 5

Up, erness what's up?

Speaker 6

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Speaker 1

An illegal alien from Guatemala charged with raping a child in Massachusetts. An MS thirteen gang member from El Salvador accused of murdering a Texas. Man of Venezuelan charged with filming and selling child pornography in Michigan. These are just some of the heinous migrant criminals caught because of President Donald J. Trump's leadership. I'm Christy Noman, the United States

Secretary of Homeland Security. Under President Trump, attempted illegal border crossings are at the lowest levels ever recorded, and over one hundred thousand illegal aliens have been arrested. If you are here illegally, your next you will be fine nearly one thousand dollars a day, imprisoned and deported, you will never return. But if you register using our CBP home app and leave now, you could be allowed to return legally.

Do what's right. Leave now under President Trump America's laws Border and families.

Speaker 2

Will be protected sponsored by the United States Department of Homeland Security.

Speaker 4

Get your profit factor up to a high point and just focus in on that and you'll be good.

Speaker 5

That's important.

Speaker 3

A win ray show is important, Yeah, And that's important

to master one thing before you do another thing. And like even on the content side, like people do shows and as you don't have one hit show yet, and you're doing another show and you're putting out more content, and it's like, well, you haven't fully figured out how to have a hit show yourself yet, So why would you have another show or why would you try to mentor somebody else to have their show when you yourself have not figured it out yet.

Speaker 5

There are people out there that do that. Kevin Samuel's this guy is different Now, that's real. It's what you say is real now. It's just like, yo, bro, you got to focus on just you've been in the movies last two weeks. I mean, I mean, but it's real talk, right.

Speaker 6

How can I say I'm the king of something or I've mastered something if I haven't shown a certain level of success, right in order for me to have a certain level success, now, I could become an authoritarian in the space so I could say like, hey, I've done this, You've seen me do this, you've seen my success. Here's how I can also help you become successful. Now, will it always work? No, because there's gonna be certain factors

that you can't teach right. You can't teach work ethic, you can't teach determination, you can't teach drives like.

Speaker 5

Those things don't come with it.

Speaker 6

I can show you how we did it, but chances are you probably won't have the same type of outcome, right, which is it's just true.

Speaker 5

Yeah, I'm with you, my.

Speaker 4

Brother, true information over ego. We're gonna stay centered. Yes, ego is the enemy. Stillness is the key, right, ego is.

Speaker 3

So let's all right, let's get let's get the people what they want. Let's go over some stock reviews. Ten stocks.

Speaker 5

Yeah, I'm gonna go. Yeah, I'm gonna go through Lulu Women first. Yes, yes, yes, yes, yes, lou yes, Lulu Women. I like it hell of a lot. Shout out to my guy TI. He's been invested in that.

Speaker 4

I think twenty sixteen, go on, I like it in like two thirty seven forty four.

Speaker 5

This is a minimum five year old.

Speaker 4

If you're looking for like a low to boat price that would be like two ten thirty seven. I like them for the long term Athleesure high and luxury brand. I like them like Oh, and I want to say this about Tesla real quick. So I gave the price for Tesla in stock club. If you're a part of Red Panda stock Club, I gave a depression level, big recession level price of twenty nine to thirty seven. The next day, the analyst came out and said Tesla could potentially fall to thirty.

Speaker 5

There were some people who were upset.

Speaker 4

I do want to say that I'm probably the only person that gives out prices that are like hedge fund level prices. Can't be upset about the price. I think the price that I gave last week for Tesla still amazing. But membership does have privileges. The probability of Tesla going to that price is less than nine percent. If it does go to that price of thirty though, I will be more than happy to put like forty percent of my network into that price. Be patient, and if you're

only buying one share, it doesn't matter anyway. So I just had to say that and clean it up for the innwebs For four context, but the probability of it going to thirty is very low. But if it does, you need to know those prices and where to get it in advance. Second one is WW said ninety eighty seven dollars and eighty two cent y. This McMahon is coming back. It is too high for a price to

buy well played. I have a couple of friends in the WWE, so I don't want to say too much, but well played by a hunter to take over that man's company and then get a couple of hedge funds to take it over with him.

Speaker 5

Can we stay there for two seconds? Yes, So he's coming back. We saw the price go up.

Speaker 6

Obviously for WWE, there is talk that it's going up because the potential of him selling the company would be a great time to do.

Speaker 5

So, okay, I just wanted to get your thoughts on that.

Speaker 4

Yeah, And if they do, the previous high was in I think twenty nineteen or like one hundred dollars and forty five cent I think it'll pop to maybe.

Speaker 5

Like ninety nine bucks and some change.

Speaker 4

Who was the company that acquired UFC off of Daana White.

Speaker 5

Everyone homework assignment number one. If they acquire them.

Speaker 4

Maybe in a few years they'll have a chance to break to one twenty. But I don't necessarily love the stock at this price. If it ever gets back to like that thirty seven dollars or forty dollars range, I love and I would buy it then, even though I don't like the product as much as I used to.

Speaker 5

My graduates from my school being force back, drop bag drop, Mike drop.

Speaker 1

Bag drop dropt, an illegal alien from Guatemala charged with raping a child in Massachusetts. An MS thirteen gang member from El Salvador accused of murdering a Texas man of Venezuelan charged with filming and selling child pornography in Michigan. These are just some of the heinous migrant criminals caught because of President Donald J. Trump's leadership. I'm Christine no,

the United States Secretary of Homeland Security. Under President Trump, Attempted illegal border crossings are at the lowest levels ever recorded, and over one hundred thousand illegal aliens have been arrested. If you are here illegally, your next you will be fine nearly one thousand dollars a day. Imprisoned and deported, you will never return. But if you register using our CBP home app and leave now. You could be allowed

to return legally. Do what's right. Leave now. Under President Trump America's laws, border and families will be protected.

Speaker 2

Sponsored by the United States Department of Homeland Security,

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