In today’s episode, you’ll discover 5 brutal truths about trading most gurus don’t want you to know.
So go watch it right now...
** FREE TRADING STRATEGY GUIDES **
The Ultimate Guide to Price Action Trading: https://www.tradingwithrayner.com/ultimate-guide-price-action-trading/
The Monster Guide to Candlestick Patterns: https://www.tradingwithrayner.com/candlestick-pdf-guide/
** PREMIUM TRAINING **
Pro Traders Edge: https://www.tradingwithrayner.com/pte/
Pullback Stock Trading System: https://pullbackstocktradingsystem.com/
Price Action Trading Secrets: https://priceactiontradingsecrets.com/
So go watch it right now...
** FREE TRADING STRATEGY GUIDES **
The Ultimate Guide to Price Action Trading: https://www.tradingwithrayner.com/ultimate-guide-price-action-trading/
The Monster Guide to Candlestick Patterns: https://www.tradingwithrayner.com/candlestick-pdf-guide/
** PREMIUM TRAINING **
Pro Traders Edge: https://www.tradingwithrayner.com/pte/
Pullback Stock Trading System: https://pullbackstocktradingsystem.com/
Price Action Trading Secrets: https://priceactiontradingsecrets.com/
Hey hey: what's up my friends, so in today's episode i want to share with you the five brutal trading truths that nobody tells you. So are you ready number one? You need money to make money in this business. So so i can't tell you right how many times i've seen comments from traders who say something like this: hey verena, you know if your trading strategy is so good right, you won't be you know, uh telling or sharing it with us right, you'll be using it To make millions of the financial markets? Well guess what here's the thing i i could have the best trading strategy in the world: okay, but if i don't have any money or capital that trading strategy is useless. Okay, you so so think about it.
This way, right, if you have the ability to make let's say 20 a year on a thousand dollars trading - account that's about two hundred dollars a year on a hundred thousand dollars trading account is twenty thousand dollars a year on a million dollar trading account. That's two hundred thousand dollars a year. The same twenty percent a year same risk management. The only difference is the size of your account and that results right in the difference in how much money you can potentially make so ingrain this in your head right.
It doesn't matter whether you have the best trading strategy in the world, because if you do have any capital, if your capital is small, guess what you're not going to make much of money at all. This is the truth right, and this is the same reason why you see hedge funds wanting to raise money, raise billions of dollars. Clearly they have a trading strategy that works, but why do they want to take in outside of money? Why do they want to answer to? You know potential clients when losses come because they know that you need money to make money in this business. It's only the retail traders, the one after you know, fantasizing about you, know, trading off on a beach sipping, their pina colada that things that they can get away with a 50 trading account and turn it into six seven figures within a few months: no not going To happen number two in trading, the learning curve is steep and if you ask me anything worth while pursuing right, the the learning curve is steep, whether it be a doctor, an engineer, even a car mechanic right, you need years right to gain proficiency and in trading Is no difference in your first stage of your trading career you're, probably excited about your your dreams, your hopes, learning all the different trading strategies, indicators from a to z, and then you kind of realize that you know.
Okay, maybe i shouldn't you know, be uh, focusing so much on the tools, the strategies then stage. Two, you go into your risk management, where you know you need to uh, raise one two percent of your account on each trade stage. Three, you start to you know, discard what you've learned and focus on the stuff that really matters and stage four. Hopefully, you become consistently profitable, so these are generally the four stages right of you know what a trader goes through and you can't complete all four stage within three months or six months. You probably need years to complete the full cycle. Okay, so learning curve in trading is steep right. If you, if you are, you know, looking for shortcuts, you are looking for a weekend seminar to turn you into a pro trader. Then you know, spend your money elsewhere.
Number three you'll be in a drawdown. Most of the time, so what do i mean by drawdown? So very simple? Let's say you put in uh uh 100 000 into your account. Your account goes up to 120. 000.
So let's say that's the highest point of your equity curve. Let's say from 120 000 it drops down to 110 000. That means that you're in the drawdown, because you are now below the equity high that you had previously so most of the time in trading you'll be in a drawdown. If you ask me, i would say 70 80 of the time you'll be in a drawdown, you won't be making new equity highs every week every month, okay, you'll be in the drawdown most of the time, and this drawdown is a function of largely your winning rate.
The lower your winning rate right, the longer the drawdown you'll, be so that's why you know for trend followers who have a low winning rate. They are in a drawdown most of the time 80 of the time or more, if your winning rate is higher than your drawdown. The duration of your drawdown can be reduced, okay, so, but nonetheless, right embrace the fact that you'll be in the drawdown. Most of the time number four sad to say right from from what i i'm saying, based on the comments, the attitude of traders that have come across most of you just simply don't have what it takes.
I mean yes right, you get hyped up your hopes. You know trading is a means to your financial freedom. You know you can fire your boss, passive income, blah blah blah, but all this takes time takes. Work takes money before you kind of you know reap the rewards, and most of you just don't have what it takes right.
You will probably just give up at the first obstacle you face. Like maybe you know, your trading strategy isn't working. You hop from multiple strategies and you realize man trading is a scam, it doesn't work or maybe you blow up multiple trading accounts. Your second title is, ah, let's move on and and after multiple setbacks right.
The number of traders who are still wanting to pursue this and never get smaller and smaller, so it's kind of like a funnel right at the top there's a lot of people coming to the funnel right, all the hopes, all the dreams, all the beginnings, the babes, The lambos, but as the years goes by it's like a funnel, you know a lot get uh eliminated and it gets slimmer and slimmer just left that you know few percent right who continues to pursue this endeavor. So so i want you to be prepared right that this is really like a long-term thing. It's not like we're not talking about months or just one or two years. If you ask me if you want to get good at trading, prepare to invest right five. Ten years or more right, this is really a long-term thing. It's like you, know, raising a kid right. You don't have a kid right, for the sake of you know, uh looking after them for the next three to six months. It's long term it's kind of like for life, and this is the attitude that you should bring into trading long term for life.
If you can't commit to it right then go do something else. You know, watch netflix play some games and pretty much do you know things that you know that make you happy right. Why do something half-hearted get unhappy? Lose money waste. Your time when you can, you know, do something else that could make you happy, but at the same time, might not make you money, but in the long run you think about it right.
At least you don't lose money, okay, so moving on the last thing is that in trading you must have have an age in the markets right. So this is again something that that you must know right. It doesn't mean that oh right now i raised one percent of my account on each trade. I have a minimum of a one to two risk reward on each trade.
That is my target. Well, guess what right doesn't matter right if your trading strategy doesn't have an age in the markets? You're not gon na make money simple. As that, don't believe me go down to the nearest casino. Okay, you can apply the best risk management.
You can bring a psychologist with you in the long run, you'll still lose money to the casino. Why is that? It's because the house have an age over the players, unless you have a way to extract an age right from the casino. In the long run, you lose money, regardless of your risk management, regardless of your risk to reward ratio, regardless of your trading psychology without an age right. All of that is useless.
So with that said right, let's do a quick recap right number one! You need money to make money in trading number two learning curve is steep, be prepared for it. Number three you'll be in a drawdown most of the time number four. Most of you, don't really have what it takes. Number five.
You must have an age in the markets and if you want to learn a new trading strategy, a system that has an age in the markets, then you can check out uh pullback stock trading system. This is a 31-page trading booklet that i will share with you. A specific trading system that you can use to trade, the stock markets. You can go down to the website pullbackstocktradingsystem.com and learn more about it.
So with that said, i wish you good luck and good trading. I will talk to you soon. You.
Been Trading since I was 14 😭 I'm 18 now and just starting to become consistent
Very valid video – pushing the book at the end may lose the value of the truth in what you are saying as many will think that you are only pushing this narritive to push the book at the end. Anyone that watches your videos regularly will know this is not the case.
Your description of the first point about “money to make money” is right but you didn’t told us the whole truth. The reason why you sell and teach these practices isn’t because you need more money so you can trade larger accounts… it’s because you know that selling these practices is less risky and more profitable long term than trading (long term)! If you have said this in the video, which is the truth, you would have gain points with me and your audience…
thanks a lot man, first thing i wanted to learn was, how to drow lines, after you videos, i started learning, i'm new in trading, but guess what, i dont like idea of bing investor, i trade every day, and belive me or not my plan was 1% a day, but sometimes i do more, i cant explane how i'm doing this but its more extrime for me, to see profits every day, than just buy and wait till next year, who know what will be in 1 year?
What I love to hear with you Rayner, is you always speak the truth and REALTALK. Thankyou my Friend!
I let blink charging stations and plug go to 40 plus dollars when it started at 30. Thats a loss I pulled out too soon
I was able to make a lot of profit trading with a professional Broker ( cayl_tyler)..
“Hey! Hey! What’s up my friends!” I keep watching your trading strategy videos and i’m still learning from all your tutorials
This is intense. My account will be activated in 2 days, when I can exchange funds and I have watched about 30 of your videos in vacation time now, Teo, but I'm afraid I don't have what it takes.
To be honest.. i already lost 7k and i only made 1k permonth i still happy i know i pursue my dream step by step… i learn a lot from this guy… i already a failure in my life 27 years and i bet you another 10 year i still be here to pursue my dream become a profitable trader…. cause i enjoy a trade loss and profit learn learning and proses tq
I am years in the game , I agree with you 100% . Put a note there and say this is a lonely journey
Its the "go watch Netflix and play games" for me lol. Great video as always 👍
Let me tell you a very simple strategy – This is in context of Indian markets. Select the stock which opens higher in pre-open and just short it with a SL of 2%. At the end of the year you will be profitable. Important thing is discipline which as Rayner insisted not many people are prepared to undertake.
hey hey Rayner, firstly thank you for your channel and specifically your honest and often brutal insights they have made quite the positive impact on my trading, both myself, my learning curve and and my account thank you… you mention that stage 3 is where you 'focus on what really matters' any chance you could expand on that comment when you have the chance please mate
Reyener could you make videos of recent wrong trades that you had taken and why do you think it went wrong?
accepting the true may improve the performance. well, getting 90% right/profit all of the time is only myth.
I am requesting you to make a video for complete gann and Elliot wave with ratio entry exit level in easy knowing englsh words pls otherwise tell a Tamil language no problem pls ..
Most of my friends aren’t trading anymore because of the little set backs. Lol Buh I ain’t giving up, although there are bigger setbacks ahead, but one thing is sure, You have to lose money to make money…. People lost millions and they’re billionaires today, some people lost thousands, and they’re millionaires today. Read it again 👉💵👈
You were the first person that told me that I should have an edge, took me a year and a half of trading to learn what my edge is in the market.
And BTW, I don't set stops. The number one reason I don't is because I begin each trade with a small bet, like 1.5k or so, and have a lot of confidence that the trade will work. #2 is that the Level 3 guys can see ALL of the stops and they have the resource capital to move that market any direction they want. Your trades are NEVER safe and secure. And after trading for a while, you will come to understand that. These guys are freagin' ruthless and they have come to take their money. See, in their mind it's not your money, it's their money (just like our government). One last thing, if you are trying to day trade, you had better learn to limit your exposure in the markets. You should develop your skill(s) to only expose your capital from literally seconds to minutes, but your bet's will have to be much bigger. Day trading is for the big boys (and girls) with lot's of capital and honed skill sets. NOT for beginning traders.
I think that one of the most important things in trading is what you DON'T do. Do your homework. Find the trade(s) that for the most part will be on your side before you enter. Don't enter any old trade and just hope that it goes up (for long traders). Get as many confirmations on your side as you can before you enter that trade. Confirm that the sector of the stock that you are interested in is TRENDING in the right direction. If not, it had better be one hell of an excellent setup and be a short term trade. Always watch the big markets, SPY, QQQ, NASDQ, IWM, VWO, etc. Are they about played out and ready for a retrace? Don't do stupid shit! (I've done it big time). Rayner goes thru this over and over! Have realistic expectations and keep your bets small until you get it and see which way the trade is going to move. If the trade goes your way, add to it. Follow the big traders. Ride the way, then get out of the wave at exhaustion. Always draw your trend lines (they will help you to establish your targets).Drawing with outside bars is also hugely helpful to give you possibly more realistic trend lines. Don't enter a trade at the top of the trend line unless there is an established breakout with many confirmations. Journal your trades at the end of the day. You will wonder at how much they will help you learn from your mistakes. Trade your process, not your money. And most important………have fun! As always, big thanks to helpful folks like Rayner. Good human being.
This edge you are speaking of is merely not tho overthink. Just by having that as #5 is so misguiding lmao
Great title. It's brutal and it's true. Even legends like Mark Minvervini spent years losing money whilst learning their trade. Maybe a 6th truth. Every trade is different. What worked on the last one won't necessarily work on the next one
sir can we be rich in forex or binary o one says the truth im trading since 2 years but till now i hav not earned anything .. sir plz tell the truth
BRUTALLY HONEST! Thats with anything tho…everybody comes in pumped up…and as soon as things don't work out they bail. Love the narrative here. Great channel man. Keep up the good work
I have been trading since last 8 months and i would say we can't treat this as a casual thing. lots of backtesting, having a discipline to cut your losses early and having patience to hold your profitable trades are some of the critical traits. I think anyone can succeed in stock market but very few have the discipline to stick around because of other time consuming commitments like family, job and health etc.
How can you be so correct I could rather be happy watching Netflix but still the sm bug🐞 is always on ma mind dear Ray at least I love to watch you to reduce pain😂😂😂
Hello
Rayner I want to your book hard copy , how it possible,
Please inform me
If Rayner charged 100 bucks per video, he would be sitting at 10M subscribers. Is just that he is giving out all of this free. People pay 100s of bucks for shit subscriptions and end up loosing even more. Each of your video is so well structured, it has helped me greatly.