What's up everyone? Alright, so in this episode, I'm gonna break down for you guys. the five reasons why most day traders lose money. If you're watching this video, there's a good chance that you're part of the nine out of every ten traders out there who is consistently losing money. In fact, they say that only 10% of traders will be consistently profitable enough that they can make it their full-time living.

I Like to say that day trading is the hardest easy job in the world and what I mean by that is that this being able to trade on my laptop from a hotel room from bed from almost anywhere in the world. As long as I've got an internet connection, it's a pretty easy job. It's awesome I'm not, you know, a hammering roofs in August and I'm not. You know, out on the highway in ten degree below weather in the middle of January This is a pretty nice job I Really only work for about an hour a day from 9:00 a.m..

9:00 to 9:30 I Prepare my watch list. The market opens at 9:30 Eastern Standard Time and by 10:00 10:30 a.m. I've usually hit my daily goal and I'm done. I'm ready to walk away.

So with an hour, hour and a half a day last year I made over three hundred and fifty thousand dollars and it wasn't the best year I've ever had. it was a good year, but it wasn't the best so it's a pretty easy job in a lot of ways. but clearly it's very hard in some aspects because nine out ten traders fail. so what we're going to talk about are some of the reasons for those failures in this episode.

Right here. Now what I've done for you guys is I've actually put a link right in the description which is a masterclass of a panel style interview that we hosted between me and about eight of my students who have become successful traders. and what we do is. we hosted this panel style interview for our inner circle students during a seminar in front of about a hundred people and so we allowed people that were out in the audience to ask questions about hey, you know what was your turning-point So asking me or asking the Saleen are asking Roberta what was your turning point? what was the point where things really started to click or what was the most important thing you learned as you were getting started training.

You know, what is what is the basis of your risk management, what's your strategy? everything else. So I aren't you guys to click that link right down there and download and stream that master class? I Think you'll really enjoy it if you're one of the traders out there right now that's struggling, you're not where you want to be. Watch that master class because it's gonna give you a sense of where a few traders who are really in your own shoes not that long ago and you know what they had to do to make that transition from its struggling to becoming more consistent and generating profit on a more consistent basis. All right.

So why don't we get into this episode right here? Make sure you download the master class and right now we're gonna talk about the five reasons that traders fail. The five reasons that most traders are going to struggle to turn profit. Number one: Trading real Money Too soon. This is such a common mistake.

and I did it myself. You jump into the deep end, overconfident, you start sinking, and next thing you know, you could essentially ruin any opportunity of being a successful trader barely before you've even gotten started. I think it's so typical of us. You know in general to be overconfident and to think that, okay, yeah, Nine, Ten people fail at this.

but I'm gonna jump in, You know, off the street with basically no training, no prior experience, and I'm just gonna throw some money at the market. and I'm gonna be the one at ten that's successful. That's essentially gambling because you have nothing to base the belief that you're gonna be successful. Nothing at all.

I Want you to watch this this little clip. This is a clip of one of my students who was talking about this very this exact thing of trading real money. Too soon did you train a simulator when you got started? I Only traded in the simulator long enough to know how to take a trade? Yeah, because the market was of course brand new. Yeah! so I only wanted to know what are the actions that I must take in order to facilitate the trade you know and I didn't learn the strategy in the simulator I know with more money that I should have been riskier for my skill level and created a lot of pressure from self and also got you know got the trading bug you know I was addicted you know I'm 12 you know 14 hours a day.

all I wanted to do was education and and back-testing and to watch the you know to watch the market play out and so I didn't do any of the other work you know that I needed to do to continue to bring it and comment that no extra pressure on me. Yes you have to make that trade Roche In which introduced me very quickly to the emotional element of you know trying to trade to make up for yesterday's loss and with that desperation making poor choices and when I was able to come back from all of that and really just learn what was happening to me and the fight flight freeze and where the emotional response has come into trading? Yeah I really did go back and and follow the recipe for making became yeah, we're at the beginning of that I was throw-in Okay so this recipe calls for flour and salt and soda and strawberries. and I throw the strawberries right on top and didn't do the puree or blended mix in the way that it needed to be. So I was just kind of throwing it all in the pot and hoping up there they came out and it was a flat cake.

So before you trade real money or if you're currently trading with real money, I really encourage you to think twice about it and to step back off of that and focus on trading in a simulator. One of the reasons that we have a license agreement with one of the biggest trading software trading simulator providers is because of how important it is for me that all of my students trade in the simulator. before they ever trade with real money. You have to prove that you have what it takes to be profitable.

Let's be honest, if you can't make money in a simulator, you have no business trading with real money. If you're a aspiring pilot and you can't land in a flight simulator, you sure as heck better not be flying a real plane, right? It's the same thing it really. it's so similar. And so one of the things that I really encourage you to do is of course, trade on a simulator.

Whether it's our simulator or a different simulator out there, that's fine. And and what you want to analyze are three core components of profitability. You want to analyze your profit or loss ratio, so That's your average winners versus your average losers. You want to analyze your percentage of success ahead of 100 traits, how many are winners, and how many are losers, And then you want to look at your consistency: how many days are you green, how many weeks you green, how many months are you green, and generally until all three of these components are that of a profitable trader.

I'd Call it the profit trifecta. You shouldn't trade with real money. Once you've got at least three or four weeks of green trading, you've got a good profit loss ratio. Your accuracy is good, you're consistent, then.

okay. dip your foot in the water with real money and see if what you've been doing in the simulator translates now. I've met people who have found ways to, kind of, you know, hack the simulator so they can be incredibly profitable in a simulator, but in a way that's not realistic with real money. So even when you do make the decision to switch, you guys still dip your foot in and make sure what is working in Sim works real money.

And as long as you're trading a strategy like mine which is based on trading momentum stocks GAAP and go or maybe trading reversals, then you're trading something in the simulator that you know someone else is trading with real money. And that's important. The second reason most traders fail: They open brokerage accounts before They really know what they're doing and so that means a lot. Traders will end up opening a brokerage account with a broker maybe right now that offers free Commission maybe a broker or like Robin Hood or something like that without realizing that those brokers were never designed for professional day traders.

So it's very rare to see a full-time profitable trader one of the, you know, 10% trading it one of those brokerages. Although you can day trade on your phone, it's not really the tool that you want when you're trying to make a career out of this. This right here. this is a laptop with two external monitors.

You don't need all of this, but this is the type of setup that you want and you're just not going to be able to do that with some brokers like Robin Hood Now I've got a list of the brokers that I really like and I'll put them write that down in the description though building for them because if you use one of those brokers, you're gonna be using a broker that really has tools that will allow you to day trade. You can get in quickly, get out quickly using hotkeys. What's a hotkey hockey is when you press a button like let's say shift 1 if I press shift 1 I Just bought a thousand shares just like that if I press ctrl-z I Sell my full position just like that and you put little stickies on your keys. and then you remember when you in front of your brokerage account that pressing those buttons, execute those orders.

Think about how much that empowers you, how quickly you can trade the markets. A lot of brokers, they don't have it right. So if you don't have hotkeys, Well, all of a sudden you're disadvantaged and you really don't want to be a disadvantage. You're already trying to do something that's very difficult.

So you want to put the cards in your favor right? You want to set the bar really low, so it's easy to be successful. And that means when it comes time to opening a brokerage account, which means you've traded an Ax simulator and proven profitability that you choose one of the brokers that caters to active traders number three. No strategy. If you don't have a strategy, your odds for success.

they're basically zero. You will not be successful long term now. Well, I to beginner traders. when they come into the market, they think, alright, you know I'm just gonna buy a little bit in a little of that.

I'm gonna buy some Apple I've got an iPhone I like Apple I'm gonna buy some Netflix because I like watching Netflix I'm gonna buy some Amazon because it sure is nice to buy things on Amazon Prime That's so speculative Now those three companies may continue to be strong, but they may also fail and they're not really suitable for day trading. Those are that that's not a strategy for a long term success. Some beginner traders will dabble in penny stocks because they think, well, I've got a small account I can't afford Apple Netflix or Amazon So I'll buy this stock at five cents and hope it goes up to ten cents and I double my money. Nine out of ten times, those types of stocks end up going down to a penny and you lose all of your money.

So what I really want to encourage is that you look for a proven strategy now. I know better than probably probably almost anyone how difficult it is to try to find a strategy I Spent years struggling to try to find a strategy that was consistently profitable I felt like I shouldn't have to reinvent the wheel I shouldn't have to from from nothing and put together a strategy. There's got to be one out there that I can just adopt. And the problem was that although there were certainly profitable traders out there when I was learning, most of them weren't willing to share their strategy.

So whatever they had that was working was a secret. And those that were out there selling a strategy making these websites and things like that, they usually were wearing gold watches standing in front of you know, Lamborghini or a Ferrari or something like that and it just didn't feel authentic. It didn't feel it, just felt kind of dirty. It didn't feel right.

It didn't feel like what I was looking for. and honestly, it felt hard to believe whether or not their strategy actually worked. And so one of the things I really encourage is that if you're gonna look for a strategy to adopt basically someone says I've got a strategy that's proven profitable, proven profitable. It's easy to say that, but I want to see the proof.

So for instance, I have statements that I upload to our website my website Warrior Trade Comm and I have my $583 - 1 million dollar challenge certified by an independent audit. So it's verified that's a real strategy. It's profitable. Real money.

It's proven so you can have faith if you decide to learn my strategy, that it's the real deal and that there's other people that are profitably trading it right now. When you learn from some of the other guys out there, you just kind of learn from random YouTube videos or you know, Twitter posts or things like that. There's not a lot of true transparency into whether or not those people are actually profitable and so you have to be really, really careful of that. So as a beginner trader, it's very hard to learn a strategy because first you have to discover that you need one.

So congratulations, Hopefully now you know that And then you either have to basically reinvent the wheel, which is develop a strategy in a bubble all by yourself without anyone's help which can take years or you find a strategy that you can adopt. But you have to truly know that the strategy that you're preparing to adopt to spend your time and money earning is actually profitable, right? That's the struggle. So I have a quick little clip here from one of my students who is going to talk a little bit about that process of finding a strategy and then we're gonna get into number Four. The Warrior trading program and all the tools and the chat rooms has really helped me be able to focus in and get a good understanding and took me too long.

But I develop a solid strategy that's been really working for me for the last couple of months and just given me a really good understanding and a good basis to move forward in a profitable manner. Number Four: Not treating trading as if you're running a business. You have to think of this as you're starting a new business and so what do you do when you start a business, You're write a business plan. The business plan for trading is essentially your trading plan.

It outlines your risk management, what you're gonna do to prevent yourself from losing a ton of money. Now, if you were gonna pitch this business plan to any investor, they would want to see how you're managing risk, right? So you've got risk management, You've got your strategy, You've got your research, which is essentially the the trading simulator results that prove that this strategy is actually profitable. That would be like the demographic research that you might do if you're thinking about opening a coffee shop. So you go through this checklist of preparing to open your own business as a trader.

And it is incredibly exciting being a small business owner, both with Warrior' trading but also with my own trading. It was something that when I first got started I was just I Was so thrilled that I would be my own boss. Now it's kind of like running a self employment agency because you still have to come to work every day, but you're doing it really on your own terms. You're your own boss.

Now when it comes to treating trading like business, there's a couple things that are also important. Number one, just like maintaining the books. you know the accounting. As a trader, you need to maintain a log of all the trades you take.

Not really from a tax perspective because your broker will give you a ten at the end of the year, but you want to do it from the perspective of really understanding what's working and what's not working. What's your percentage of success? What's your accuracy? what type of trades are the most profitable and things like that? Now, by tracking all of that, you can start to dive into those analytics and start to get into the metrics and figure out you know what's been working, what's not working. On a month it was particularly good, what was just perfect and on a month that was really bad. Where was I getting into trouble? You won't know that if you're not really diligent about tracking your trades.

Now if you've ever driven around New York City you'll see UPS trucks and FedEx trucks. The whole windshield is slapped with tickets tickets from the city in New York they give them out just like handy and whatever FedEx and UPS do I'm sure they just pay the tickets and what is it? It's a cost of doing business And so similarly, when we're training, sometimes we're gonna experience losses. Small losses, right? As per our risk management program, small losses. and that's just part of doing business.

It's the cost of doing business and you have to detach yourself from it. It's not personal, it doesn't It's not a reflection on you. It's okay to lose. Really? I lose 30 percent of the time and I'm a self-made millionaire because I'm a trader.

So you know when I turned my 583 dollar account into a million dollars, Gosh, I don't even I mean I made a million dollars in profit? Well let's see: I probably made more like 2 million in profit and I probably lost. You know a million I mean it's It's just the way it goes. You make a hundred. You know you lose 50.

You walk away with $50 You walk away a profit as long as you're walking away green every day. That's what counts. And the losses. They're just the cost of doing business.

so you really have to adopt that kind of, you know, just. D Personalizing it and thinking of it very analytically. Another thing from the business standpoint is making sure that you have the right tools. so you see, you know I've got my laptop back here with my monitors.

I Would say it was the right decision for me to spend a little extra money on this laptop of these two monitors and not try to trade. You know, just on my phone or something like that. Investing in the right tools is important but the same time. I Don't know if you guys saw this article, but there's an article that if you get the fully SPECT out.

Mac Apple Tower like that. probably like a graphic design or video editing company would use. I Think it was like fifty thousand dollars or something like that which is crazy. So does it make sense to buy a fifty thousand dollar computer when you're getting started? No.

Does it make sense to buy tens of thousands of dollars and all these analytical tools Or all these technical indicator packages? or Robo trading packages? No, because most of them don't work right? So as long as there will be people buying tools, there will be people out there making tools. But most of them are redundant. Most of them are unnecessary. And I Keep it simple I Really do I use minimal tools I encourage my students to do the same thing.

use as few tools as possible. Just keep it simple. There's no reason to over complicate things all right. So I really want you to kind of gain that that mentality of treat this like a business and you sort of have to think about what are other traders doing.

You know the ones who are really successful and I want to adopt their mindset and there is a sort of you know portion of that that's fakty. Make it adopt the mindset of a profitable trader even if you're not there yet. do everything that they're doing. from how you train like running like a business to the strategy to the tools and everything else.

Number five: Waiting too long to get started. Here's the thing with trading: Success doesn't happen overnight. You're not gonna make a million dollars overnight. You're not gonna make a thousand dollars overnight.

As a beginner trader, becoming successful is a long process of first developing the knowledge which you're doing right now by watching this video. but you also gain knowledge by reading books and hopefully watching the master class if you click that link below and by engaging in my daily recaps and things like that. To convert that knowledge into a skill you have to start practicing now whether you download the TD Ameritrade app, you guys have seen me do my TD Ameritrade small Count challenge, it can be done So whether you trade with the TD Ameritrade simulator right on your phone or you install it on your lap or you install the simulator that I provided and built for my students. getting into there into the into the market and really starting to practice even with pretend money, that's how you start to convert that knowledge into skill.

It gives you a chance to see if what you're learning. well if it actually produces some profit and you sort of get a benchmark of where you're at. Sometimes traders potentially aspiring traders will say I want to learn but I don't have time right now. So I'm just gonna totally not even start until you know I Have you know time in a few months or something like that and you know, think about learning like the guitar or something.

If you want to learn it, you got to pick it up and you got to start messing around. You got to start playing every day I'll even if it's just a few minutes a day because all of that compounds and builds right. So that's how you start the career. You get started, you force yourself to do it.

for me, getting started trading it was. it was one of those things where I just made the decision that you know what? I'm gonna start getting up early everyday I'm gonna start watching the markets because I want to create a better life for myself I want to make this happen and I actually did it as part of a New Year's resolution which is pretty cool. I Mean it's cool because it actually ended up totally changing my life. Not at first, not for the first year, not even for the second year.

But you know it eventually totally changed my life. The learning curve for me was so stretched out because of for really two reasons: because number one I trade with real money too soon and because number three let from from from the third reason that most traders fail I didn't have a strategy so I started trading with real money way before I should have and I had no strategy. So I was losing money and because I didn't feel comfortable learning from some of the other guys out there, it took me two years plus to develop a strategy that was producing any types of profit. It doesn't have to be that way, it really doesn't.

The sooner you get started watching these videos, engaging and hopefully becoming a member of the warrior trading community, the sooner you're getting on that path to becoming a trainer. All right. So as always as you guys are watching this, if you have questions and comments I hope you leave them down below will respond to and I'll see you for this next episode. If you haven't already, click the link to download the master class.

Make sure you do that I Think you'll really enjoy it. It's a great extension off of what we've been talking about here today. Hey, did you know every morning? I Go live to stream a pre market watch list. Subscribe to the channel, press the alert button and you'll get the notifications.

If you want to learn more about trading, check out the links in the description. If you have questions, post them in the comments because I personally respond to every comment posts on my channel.