Hey hey: what's up my friends, so in today's episode right i want to talk about how do you have an amazing trading career? So what i'm about to share with you is just my point of view. Right is the things that uh will happen right for me to have an amazing trading career. It might be different from your point of view. You might have different goals whatsoever right so so take it with a pinch of salt right and if it makes sense for you great something that you can aspire to.

If it doesn't right, you know you can. You know, watch something else altogether. Okay, so to have an amazing training career, at least for me, right from from the way i look at things right, it's uh broken up into five stages right stage. Number one is the newbie stage.

So at this stage, right is where you learn. You know everything and anything about trading. That's where your hopes are high. Your expectations are high.

You know you're going to be you're going to be the next world world-class trader right. So at this newbie stage you know you're soaking, up everything right that you come across day trading position. Trading sculpting chart patterns everything okay, so after you progress right to the next to the next stage, which is which is what i call the mastery stage during the mastery stage right at this stage, you are focusing right, you kind of realize that you can't trade everything In anything, right at least not at this current stage, because your resources are limited and you'll find yourself leaning towards a certain trading methodology, for example, let's say quantitative trading. If you lean more towards quantitative trading at this stage right, you will focus entirely right on corn trading.

You'll ignore everything else, all right, so all the stuff that you have learned in stage, one you'll discard them so you'll discard you know: price action, trading, you'll, throw away your candlestick patterns, knowledge, you'll, ignore the chart patterns whatsoever and just focus on quantitative training right. So what happens in this stage is that you will focus on one trading methodology until you become profitable with it right and that's your bread and butter all right. So this is the second stage, the mastery stage, where you just focus on one and get good with one trading methodology. Then you move on to the third stage.

Right is what i call the scaling up stage at this stage right, you kind of realize that, yes, right, you are a profitable trader, but there is still a limit right to how much you can potentially earn, because that's where you realize that you need money to Make money in trading, for example, let's say you make an average of 20 a year on a thousand dollars trading account that's about 200 bucks a year. But if you have a million dollar trading account, that's 200 000 a year, a huge difference, and so, when you realize this right, you start to you know, find ways to to grow. Your trading account right. You might rob a bank, i'm just kidding right.

You might, you know, get money from your family and friends to trade. For them you might use the money from your your part-time job, your full-time job, to increase the size of your trading account you'll, do as much as possible right to scale up your trading account. So you can make more money from trading, so that's the third stage right stage. Three, then you move on to the fourth stage in this stage, you're pretty much proficient in your trading.

You know you're getting consistent results and you realize that hey trading is just one way to make money right and it's not the only way, because you can actually use the knowledge that you have and make more money. For example, that's where you offer trading courses, that's where you mentor other traders, or maybe that's where you start to you, know, promote or recommend trading products and services that you believe in. Like you know brokerage, you know uh trading tools or whatsoever. So that's the fourth stage right: that's where you diversify your earnings right away from trading itself and at this stage right the fourth stage you realize that it's actually also part of scaling up, because when you diversify, you have more money now again from different sources.

Besides trading and you can actually grow, your trading account further okay, so after the fourth stage is where you go to the fifth stage. At this stage right, you probably have like. Maybe a six-figure trading account, maybe even seven and you kind of realize it's uh, it's it's! It's uh you're, not very comfortable right, just trading so much money on one trading strategy, because you understand that a trading strategy goes through a period of drawdown. For example, let's say you, trade, uh, uh uh, a trend following strategy in the stock market.

You know that if the stock market is bullish right, then hey you'll make money in the stock market. But if it's bearish right, then you know you'll go through a drawdown. You know you might, you know, lose 20 30 of your your portfolio returns so at this top at this point, you're starting to think right. What, if i employ multiple trading strategies which are uncorrelated to one another that actually can help? You reduce your overall returns, for example, let's say earlier right: the stock trend following strategy.

Let's say you don't just trade, the stock markets. You also apply a trend following strategy to let's say the forex and futures market. So let's say the stock market is bad. It's down 30, okay, but because of the fact that you also have another trading strategy for the forex and futures market, that strategy could be, let's say up 30, and when you trade both strategy right, you actually realize that you are break even right.

You're not up or down for the year and that's much better compared to just trading that stock strategy right and down 30 right during a recession. So that's the beauty of trading, multiple uncorrelated strategy, because the strength or weakness of one strategy right can be compensated by another different trading strategy and in a grand scheme of things it does two things number one. It reduces your overall drawdown right. That's what you've seen earlier so, for example, uh trading strategy has a max drawdown of 30.

If you employ, let's say two or three uncorrelated trading strategy that drawdown could be reduced to maybe 20, maybe even 15. The second thing is that your returns will be less lumpy, so, instead of putting all your money into one strategy and then the strategy does well, your equity curve will go up up and down very jaggedly. If you trade, multiple uncorrelated, correlated strategy right, your returns are less lumpy, it's much more smoother over time. So when you're trading larger amount of money, you can actually sleep better at night and that matters a lot right, and so that's what the fifth stage is all about: the ultimate diversification.

So it's a quick recap right number one. The newbie stage is where you learn everything and anything about trading. You know, you're hyped up, you're excited stage. Number two is the mastery stage is where you develop your bread and butter trading strategy and become consistently profitable stage.

Three is a scaling up stage where you don't add funds to your trading account to make more money stage. Four is the diversification uh using trading right uh to make money right besides trading? I know that sounds weird, but using yeah your trading knowledge to make money right, like you know, courses, mentoring, coaching, affiliate, etc, and the fifth and final stage is the ultimate diversification stage. Where you trade, multiple uncorrelated trading strategies. Right then, you know to really grow your portfolio, all right so with that's it.

I wish you good luck and good trading. I will talk to you soon. You.