In today’s episode, you’ll discover the 4 stages to profitable trading.
So go watch it 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 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 friend, so in today's episode i want to discuss about the four stages to profitable trading, so you can decide for yourself which stage right you are in your trading career right now and how you can actually know progress to the next stage. So stage one right: we all start with this stage the hyper newbie stage in this stage. You are all hyped up about trading. You have high hopes about trading right, the possibilities that it could bring.
So in stage one the hyper newbie stage, you are trying to learn everything you can about trading right strategies, chart patterns, indicators, rsi, macd, fibonacci whatsoever. You learn as much as you can and then you might even be lucky right. You know beginners, like you, make some profit in the in the financial markets and then you think to yourself, man trading isn't as difficult as what reynolds says. Maybe i can quit my full-time job and trade full-time then.
What happens is that you know eventually, losses will catch up with you right. You suffer a few losses, then a series of losses, and then you lose to a point where you wipe out your entire trading account. Then you find a new trading account and you wipe it out again. So at this point you kind of realize.
Okay, it seems like trading is not just strategies and techniques. I got to manage my risk as well, so when you, when you realize that, right that you have to manage your risk, that's where you move on to stage two, the risk manager. So this is where, at this stage, you know how to manage your risk right. You're learning risk management techniques, position, sizing, stop losses, etc.
So as a risk manager, you are getting your risk under control. You no longer wipe out your trading account whenever you put on a trade, you know how much you can potentially lose right. So that is, you know what we call in stage two, the risk manager you're good at managing your risk. However, at this stage right, you you're able to contain your losses, but still right, you are not seeing you know positive sign in your account right.
Your account is still bleeding right, at least it's bleeding slower. You stop wiping out your trading account, but it's still bleeding in the long run right - and this is where you you kind of realize, like man, you know uh, you need not just risk management but having an age in the market, you must have a statistical age In the markets, and when you realize this, that's where you move on to stage three, the loan ranger so as a lone ranger right. This is where you have really accumulated vast amount of trading knowledge right most of the topics. When people talk about trading, you probably would have heard before or tried before right, but you know now the key thing is not to acquire more knowledge, but rather to discard knowledge which is irrelevant to you.
So at this part right as a lone ranger, you are finding your age and you're discarding stuff right that don't matter to you or it's irrelevant, so you'll probably discard right, 89, 90 of the stuff that you've learned over the years. So as a lone ranger, you know that it's up to you now to make it as a trader. No one else can help you, but you yourself so as a lone ranger. What you'll do is you'll move on into doing a uh, further research right doing back testing to see whether your trading strategy works or not, or you can't do back testing you'll, do forward testing and see how your strategy works in the live markets, and this is You know uh the path of a loan ranger, okay, so once uh once you are in the process of doing your back testing and your forward testing, that's where you are are pretty serious about this business and you are moving on to the fourth stage - is what I call the business owner so as a business owner, you probably would already find or found your age in the markets. You have a trading strategy that works in the long run, but one of the key thing that you realize is holding you back is that you can't exactly scale up as a business owner, because you find that you know you need money to make money in trading. So, as a business owner, it's your job right out there to raise right, the uh size of your trading account. It could be, you know, by getting funds externally, it could be. You know, putting your savings in your trading account.
I do not know, but as a business owner you're looking to scale up your trading business to trade, a larger size account. So this way you can make more money and also as a business owner, you would realize that you know business isn't always rosy right. For example, if you have a restaurant business right, not every day or every month of the year, you're gon na make you know huge profits. Maybe a certain season might be more profitable for you like christmas new year and stuff like that, and then certain seasons are more dry so again right same for trading, your trading strategy isn't going to make money all the time.
So, as a business owner, you will also start to think about adopting multiple trading strategies trading strategies which are uncorrelated to one another. So this way, for example, if your trading strategy, a trend following strategy, is not doing well, maybe you have another mean reverting trading strategy that could do well during that period, where trend following isn't working as well. So again, as a business owner, you want to scale up the size of your trading account. You want to adopt multiple trading strategies and hopefully in a grand scheme of things right, your business right can sustain right and you know have a nice upward upward sloping equity curve in the long run.
So that's pretty much it right. The four stages to profitable trading. So, as a quick recap right number, one stage, number one is the hyper newbie stage where you know you're pumped up your have high hopes about trading stage. Number two is the risk management manager. Where you see the importance of managing your risk stage, three is the lone ranger, where you're trying to find and discover your age stage. Four is the business owners stage where you business owner stage, where you have already found your age and looking to scale up your trading business by you know adopting multiple trading strategies or increasing the size of your trading account. So with that said, i wish you good luck and good trading. I will talk to you soon.
You.
Your content is too good… Keep it up. . 👍
You are my guru. You are my mentor….I am always learning great things from U…
I am at stage 3… Thank you Rayner for always sharing knowledge….
Lone Ranger. Brilliant
This is the video I needed
Many thanks for I understand where I am
Unfortunately, I am still at Stage 1 for almost now more than half a decade :-/
How to handle crash
I'm at stage 3
😍 hey hey, i love these advices..
very nice my friend
After several years of trading, I'm at stage 3. Still haven't had a profitable year. Just can't find an edge.
I'm on the 4 th stage .now need of more money to make money and inshallah will be the greatest trader💝
Great content!!!!!
Thank you Rayner for this, on the spot, video. Lets me know that I am on the right track. Every stage I relate to. I accept my risk to reward ratio on every bounce I buy. Do need to work on class A setups. Overtrading… You have been one of my mentors from the start of my career and I look forward to learning more everyday from you. Thank you for your hard work on getting these very important lessons to us Youtubers.
Absolutely love your videos, i have been trading for 4 months now and you are by far the best person to learn from. Its so easy to understand how you explain things….. thanks
Hi Rayner I just started a 30k account and learned I have LOTS to learn. haha.
Hey Rayner!
Thanks so much for this video, watched it after a particularly bad week and it has helped me realise how far I have come, I'm a Lone Ranger now, and that's no time for negativity!
Sometimes we all need a bit of a morale boost!
You never fail until you give up!
Is technical analysis more useful to forex than to stock tradings?
anh là người gốc việt phải ko ạ.
Rayner great video as always, But I need guide as a new trader about to get into trading, where can I start from?
Damn Rayer, you see right through me 😅
u are like a expert in market seems making hell lot of money but your clothes nd house seems like you beg on streets. i hope you are a trainer nd trader both😒😒😒
Can anyone who has been doing this longer than me give me their opinion?
I feel like I sort of skipped ahead to stage 3 maybe 4 in 6 months. Am I being overconfident?
I avoided the blow out stage but took a couple of larger losses in the early stages, I no longer really loose money and when I do its negligible or easily recouped.
I decided to jump in two weeks or so after opening a paper trading account and forgetting about it, when I checked it & I was up 10k, I started reading up on everything that I could but rather than gradually build up a sensible or scaled in portfolio I threw a bunch of cash at the fangs, tsla & bunch of various value stocks everyone knows and some that had similar charts to the ones that had got me my best results on the paper trading account, had more than a little success, 3 positions jumped over 100% with one reaching 500% after my second week of actual investing/trading, I didn't sell because I figured it would continue to grow over time… Rookie mistake I know. Aaaaanyway one market correction like two weeks later and my previously promising initial forray was holding but in tatters, I'd averaged down, panic sold and basically restructured my entire portfolio, taken losses I didn't need to or just outright sold out of positions with what would now be amazing averages (still kicking my self to this day on the fangs, apple, roku, tsla, bynd, peloton and some others) but moving on after a month of damage control I started looking for more opportunities and ended up with even more breakout stocks.
Can you guess what mistake I made this time rather than not selling? Chasing, I ended up with one overweight position that had gone up 200% since I'd bought it and a 20% return 😂 which obviously then dropped into the minuses yet I'd have lost more than I could stand to at the time and the entire thing would have taken my portfolio into the red.
Panicking I made a bunch of other trades moved some money around and somehow managed to negate all the losses and catch even more breakouts/parabolic movements. Eventually the overweight position recovered & I'd averaged down and hodl'd so learnt how that works. Since then I've basically been trying to manage the risk of that trade and in doing so have built a diversified portfolio with 600 different tickers.
im up 40% in 6 months overall despite the fact I've been consistently picking stocks that run over 100% with 1100% being my best result. Maybe its time to adapt a more risky strategy but since I've yet 5o have any devastating failures I don't feel like this should be possible. It's not massive returns overall but surely I could just do this with larger amounts of money and get even better returns than my convictions currently hold
Rayner. I wanted to thank you for your content. You are helping a newbie like me slowly but surely become a pro. God bless you.
Great video. I'm at stage three.
After blowing an account you come to the realization that the forex market is smarter than you.
It dawns on you that you need an edge. Now you are ready to learn.
Stage 4. Starting..
In Trading Always Never Go Beyond Your Risk.
Liked & Subscribed 👌🇺🇸
Thank you for your sharing
stage 5: create YouTube channel share your knowledge…
sad to say can't aford upat…thanks rayner
Thanks Rayner, just signed up for the conference next week and so looking forward to it! 🙌
My stage risk manager and lone Ranger 😄
Having a playbook and recording my emotions during trades was the key step for me.
Does this guy actually trade or he only teach? Does he disclose any of his trade?