"The WORST Thing You Can Do As A Beginner Trader..." [Systemized Trading] #E38

In this week's episode, we delve into the top gainers and provide a current trading review. Our hosts cover everything from getting out of trading ruts to systemized trading key points. You'll also get insights into Madaz Money trading struggles, Jesse Livermore's approach, and the importance of financial literacy in day trading. Plus, don't miss the discussion on what not to do as a beginner trader. It's an episode packed with wisdom!

0:00 📊 Top Gainers & Current Trading Review
2:37 🌀 Getting Out Of Trading Ruts
11:40 📝 Writing Out Your Strategy/Edge
21:19 💡 Madaz Money Trading Struggles
25:35 📈 Jesse Livermore & Trading Growth Pains
28:38 ⚖️ Don't Reinvest Profits Into High Risk
33:20 🛡️ Protecting Capital & ROTH IRA
36:55 📚 Financial Literacy & Caleb Hammer
43:35 🎲 How Day Traders View Gambling
49:50 🧠 Confirmation Bias
53:35 🔄 Systemized Trading Key Points
1:09:10 🚫 The Worst Thing You Can Do As A Beginner Trader

👉 https://youtu.be/QcbStguw32Y 🎧

As always, we're incredibly grateful for your support. If you have any questions, suggestions, or feedback, please don't hesitate to reach out or leave a comment below the video. We're always here to help! 😊 Happy trading and stay tuned for more episodes!

#Love from the insiders ❤️

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Full Transcript

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Alexander Winkler: Think it was a good thing that I stopped training today. I and M was just very dangerous.

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Danny Camozzo: Hmm.

00:00:08.079 --> 00:00:16.490
Danny Camozzo: looks to me like there's nothing worth touching except I am still watching. Li. A, n.

00:00:17.199 --> 00:00:18.429
Danny Camozzo: yeah, yeah.

00:00:18.649 --> 00:00:20.338
Alexander Winkler: that was a popular one.

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Danny Camozzo: It's a bit higher. Float.

00:00:22.870 --> 00:00:35.129
Danny Camozzo: But cvm, yesterday was the same. It was like 40 million. This is 43 million, and I did really. Well on Cvm. You just have to be a little bit careful with trading them, because, like.

00:00:35.339 --> 00:00:38.708
Danny Camozzo: kind of obviously looking at the Leanne chart.

00:00:38.939 --> 00:00:42.809
Danny Camozzo: those pullbacks can be pretty steep.

00:00:43.250 --> 00:00:44.209
Alexander Winkler: Yeah.

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Danny Camozzo: But

00:00:46.019 --> 00:00:52.259
Danny Camozzo: yeah, they just get a lot of volume to both directions, since there's more shares available to trade.

00:00:53.809 --> 00:01:01.068
Danny Camozzo: and but it's holding a Se. A sending support and kind of keeps making these attempts

00:01:01.870 --> 00:01:06.039
Danny Camozzo: upward so kind of as long as it keeps holding

00:01:07.389 --> 00:01:08.959
Danny Camozzo: 3, 20 ish

00:01:09.969 --> 00:01:11.578
Danny Camozzo: interested in it.

00:01:12.250 --> 00:01:16.859
Alexander Winkler: It could have a double top at 4 and try to make a new high, wouldn't be surprised.

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Danny Camozzo: Yeah.

00:01:19.559 --> 00:01:27.529
Danny Camozzo: yeah. I'm also on a solid day, 2 days in a row now, so I'm not in a rush to keep trading it.

00:01:27.729 --> 00:01:42.039
Alexander Winkler: Amen to that. Yeah. So I feel the same way. I had a yesterday like a decent. I was up like almost 700, and then I gave back 30 off the top. On accident, too. I had a leftover limit order.

00:01:42.629 --> 00:01:45.629
Alexander Winkler: and then there was a flush

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Danny Camozzo: that's terrible. And all of a sudden I didn't want to get on tilt, and then all of a sudden, be read on the day.

00:02:06.159 --> 00:02:24.088
Alexander Winkler: That's smart, screw it. I'll take my $400 and then say, it's kind of similar, except it wasn't an accident this time. I just gave off like 200 from the top. I was up 600. Now I'm back down to 400, and then I closed my us. So not like big days. But

00:02:24.769 --> 00:02:42.809
Danny Camozzo: it doesn't matter, though. Just keep. That's how I was. I'm finally starting to get some good days and consistency back. I'm just being so careful, and I don't even wanna say it yet, Jinx, anything but

00:02:43.029 --> 00:02:50.649
Danny Camozzo: that's basically where I was at. Like, 2 weeks ago I was, I was starting to finally get a couple of small green days in a row together.

00:02:50.679 --> 00:02:54.828
Danny Camozzo: and it just goes from there. You can just pick up steam

00:02:54.959 --> 00:02:57.509
Danny Camozzo: real quickly if you can keep that going?

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Danny Camozzo: One thing that

00:03:01.179 --> 00:03:16.379
Danny Camozzo: I think last week especially, and this week that has really been helping me out is I? You know, you guys know, I've I've had a lot of inconsistency through September, and then, like first week of October.

00:03:16.419 --> 00:03:27.048
Danny Camozzo: and I was kind of I was trying to figure out what was going on, and I think that I was probably just buying for the breakout too way too much. And I've cut that back.

00:03:27.169 --> 00:03:37.889
Danny Camozzo: and I've just been more patient and just waiting for that dip. and I think that that has really helped turn things around the last 2 2 and a half weeks

00:03:40.789 --> 00:03:43.998
Danny Camozzo: so far, but it's still it's been choppy.

00:03:44.789 --> 00:03:49.258
Danny Camozzo: I don't. We don't really have any great opportunities coming up, and they'll

00:03:49.370 --> 00:03:52.789
Danny Camozzo: last 2 weeks I've been doing well, but

00:03:53.299 --> 00:03:56.778
Danny Camozzo: I don't really think the market has changed much.

00:03:59.629 --> 00:04:11.278
Alexander Winkler: Nope, I don't. I don't think it has really either. And I was. I was getting read, doing exactly the same thing, because sometimes you'll see these beautiful breakouts that go 50, 2030, but somehow

00:04:11.559 --> 00:04:19.659
Alexander Winkler: getting timing those and actually being on the right one instead of the 20 fakeouts that come before is is very difficult. So I was.

00:04:19.689 --> 00:04:24.519
Danny Camozzo: yeah, yeah, I do better when II kind of accumulate before the breakout.

00:04:24.599 --> 00:04:25.799
Alexander Winkler: Umhm.

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Alexander Winkler: yeah, that's kind of what I've been doing today and yesterday. But

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Danny Camozzo: that's a good point. And actually something on one of the other points that I realized. And I think I've been doing better at is these stocks

00:04:40.549 --> 00:04:45.959
Danny Camozzo: make so many fake outs and like but tempted attempts. And

00:04:46.089 --> 00:04:56.620
Danny Camozzo: I think I've done a good job in the last week or so of backing off if I've just taken like 2 or 3 stabs and lost like a cent or 2 on each of them.

00:04:56.839 --> 00:05:04.589
Danny Camozzo: Just take a step back. take a minute and kind of think about or reevaluate what's going on.

00:05:08.019 --> 00:05:08.859
Alexander Winkler: Yeah.

00:05:09.309 --> 00:05:14.848
Alexander Winkler: totally agree there. What do you? What do you guys think, Tom Colby? How how would you guys have been noticing in the markets?

00:05:17.118 --> 00:05:23.289
Tommy Salerno: yeah, I guess what I've been noticing.

00:05:23.759 --> 00:05:34.838
Tommy Salerno: there's definitely opportunity. There's definitely yesterday you had a near 500% runner definitely opportunity. Today I and am that one was like

00:05:35.539 --> 00:05:40.659
Tommy Salerno: another 200% runner that one definitely had opportunity enough to get.

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Tommy Salerno: Oh, decent green day. But

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Tommy Salerno: yeah, like you said Timing, there was just difficult managing or risk is difficult. I've had so many trades where it's just

00:05:51.869 --> 00:05:53.969
Tommy Salerno: take my entry and then like

00:05:54.299 --> 00:05:58.129
Tommy Salerno: it, just the price is teleports, and

00:05:58.329 --> 00:06:01.430
Tommy Salerno: I am somehow down 1010 cents immediately.

00:06:01.589 --> 00:06:09.818
Tommy Salerno: and I'm taking. I have to take a loss because for me to hold, and it goes down another 1010 cents. It's just like then III wipe out on a day.

00:06:10.009 --> 00:06:16.109
Tommy Salerno: So that's happened couple of times past couple of weeks. As far as my trading in general.

00:06:16.519 --> 00:06:24.128
Tommy Salerno: I feel like my growth has really has gotten to like like a ceiling, and I need to make changes. If I'm ever going to break out of that.

00:06:24.190 --> 00:06:30.128
Tommy Salerno: And I think the problem is for me is that when I'm trading like not every trade I have

00:06:30.250 --> 00:06:35.589
Tommy Salerno: I have a strategy like I'm sometimes I'm just buying

00:06:35.899 --> 00:06:42.079
Tommy Salerno: kind of just blindly, or I'm selling because of just taking profits rather than taking

00:06:42.240 --> 00:06:51.099
Tommy Salerno: profits at a resistance level or a nice breakout that just happened, you know, scaling out into an extension.

00:06:51.889 --> 00:07:07.098
Tommy Salerno: A lot of times. I'm just selling just for the sake of just taking small gains without any reason to sell. And I think that's one of my biggest problems. I've known that I've known that since I've begun that that was a problem. But now I'm just really starting to realize that

00:07:07.319 --> 00:07:08.500
Tommy Salerno: that is

00:07:08.579 --> 00:07:20.889
Tommy Salerno: those, the specific, you know, the entries to taking an entry for a specific reason and selling for a specific reason is what has been holding me back from reaching

00:07:20.980 --> 00:07:34.190
Tommy Salerno: a next level. So really, the past 2 days. I've just kind of reset mentally, and just kind of just thinking like back to day. One like it feels like I'm back to day one. And I have to kinda relearn some things

00:07:34.210 --> 00:07:42.839
Tommy Salerno: to kind of iron out these bad habits of, you know, buying when I'm not supposed to be buying, or for no reason, or selling for no reason when I'm not supposed to be selling

00:07:43.009 --> 00:07:54.878
Tommy Salerno: and trying to get to iron those out. And hopefully, with that, I know I've been doing Drc's daily report cards, just because it'll keep me accountable, so I can write down

00:07:55.029 --> 00:08:07.288
Tommy Salerno: the reason for every single time I hit the buy button, and the reason for every single time hit the sell button, and that will keep me, you know, aware of myself as in trading, you know, asking myself why.

00:08:07.450 --> 00:08:12.129
Tommy Salerno: and I think that'll help me iron that out. And

00:08:12.309 --> 00:08:18.839
Tommy Salerno: yeah, that's what's been holding me back. And I'm definitely been struggling. I'm at all time low, mentally. And

00:08:19.129 --> 00:08:29.128
Tommy Salerno: now I'm with that, you know, every time I hit hit to a mental low, or I feel like I'm on a low. I'm always doubling down on my studies or tripling down on my studies, because

00:08:29.389 --> 00:08:33.099
Tommy Salerno: that's what successful people do. But that's yeah. That's where I'm at.

00:08:34.980 --> 00:08:38.729
Danny Camozzo: That's every time I get myself into a rut. I feel like

00:08:39.619 --> 00:08:53.888
Danny Camozzo: eventually however long it takes to reevaluate. I always get back to just going back to basics and like where I initially started finding success, which

00:08:53.940 --> 00:08:59.279
Danny Camozzo: was in dips and just cutting out the trades that are making me read.

00:08:59.849 --> 00:09:12.609
Danny Camozzo: I don't know if that's dips for you, or whatever it is, but just going back to basics and just slowing things down a little bit has been always really helpful for me to turn things around.

00:09:12.879 --> 00:09:21.700
Danny Camozzo: and then you just start stacking together like a couple of really small green days in a row. and then maybe a couple more medium green days.

00:09:22.329 --> 00:09:25.848
Danny Camozzo: And all of a sudden you're kind of out of that Rhet, moving forward.

00:09:25.859 --> 00:09:33.079
Danny Camozzo: But that's exactly where I was just just like 2 weeks ago was like rock bottom mentally

00:09:33.139 --> 00:09:46.069
Danny Camozzo: to the point where first Friday of October, and I took an oversized loss. I was trading at the gym and it was a really solid red day, and

00:09:46.779 --> 00:09:56.779
Danny Camozzo: and I remember I went into that weekend in a good mood, cause I was like, it doesn't matter. I'm so over it, and and it's been good since then. So

00:09:56.809 --> 00:09:59.779
Danny Camozzo: well, well, I'll get out of that right?

00:10:01.399 --> 00:10:17.698
Tommy Salerno: Yeah. But I think it's more than just waiting it out, because I think I I've always felt this way that that I didn't know I couldn't. I couldn't. 100% define my edge in every single, every single setup, or just in general, just defining my edge. I just could not

00:10:17.990 --> 00:10:29.568
Tommy Salerno: like write that out Crystal clearly, and I knew that like since I began begun trading and like. Now, I'm just starting to realize it. That's the only that's what's holding me back is just facing that and then trying to

00:10:29.809 --> 00:10:42.700
Tommy Salerno: rewind everything and go back. Yeah, like you said, go back to basics and learn and be and be very structured in little bit more structured in the entries and the exits and the setups.

00:10:43.359 --> 00:10:45.089
Tommy Salerno: And when I've been like, it's

00:10:45.359 --> 00:11:01.388
Danny Camozzo: it's kind of funny that you mentioned that because I definitely felt that way, too, like last year that I was just trading all kinds of stuff, and I really didn't have like a definition of like, what's an a plus setup for me personally. And what do I really trade? Well.

00:11:01.419 --> 00:11:03.269
Danny Camozzo: and

00:11:04.089 --> 00:11:11.358
Danny Camozzo: Ross had me and a couple of the other like profitable mentor guys last year with warrior

00:11:11.490 --> 00:11:24.878
Danny Camozzo: put together our own courses like 10 chapters, long main, 3 strategies, all of that stuff that goes into it. And it, I think, was actually really helpful for me personally, to be able to

00:11:25.000 --> 00:11:31.750
Danny Camozzo: put all of that into words and writing, and and into a strategy to like teach to somebody else.

00:11:31.809 --> 00:11:36.049
Danny Camozzo: so I definitely understand what you mean. There.

00:11:38.589 --> 00:11:40.239
Colby Warshel: I love hearing this shit.

00:11:40.990 --> 00:11:43.588
Danny Camozzo: which part

00:11:43.899 --> 00:11:48.889
Danny Camozzo: the part that II was struggling, or that I had turned.

00:11:48.980 --> 00:11:53.339
Alexander Winkler: Other people are struggling, too.

00:11:53.649 --> 00:11:57.438
Colby Warshel: No, I just love the whole like trying to actually

00:11:57.519 --> 00:12:15.308
Colby Warshel: like write out what the edges, because, like I remember along like it was, hadn't been 10 podcasts ago. I was saying to Mike Buffy Ori quote where he was like. if you are trading based on feeling, no, you're not. It's a strategy or something like that. And all all of you guys are like, Oh, that's

00:12:16.180 --> 00:12:43.239
Colby Warshel: I don't. II think it is a lot of intuition. And ever since you guys said that I was thinking a lot about how different small caps are from futures because I don't come across any futures, trader. That's not. You need to have your strategy defined period, and there's not a single example of a futures trader that doesn't have a defined strategy that makes money. There's not a single one. But then small caps. It's like 95% of traders are trading off of like intuition. And a lot of you guys are making money.

00:12:43.240 --> 00:12:52.499
Colby Warshel: and then it begs the question, though, like, why are you making money? So I think there's probably like 2 reasons. Number one is.

00:12:52.629 --> 00:13:20.028
Colby Warshel: the competition is smaller. So you can kind of have really really good risk management, and that can be an edge in itself, just being extremely well risk management, which Tom is the best risk manager I've ever seen. I mean, his red days are like a dollar, and his green days are like 100 and his average. It's crazy. I don't even know. So I think, Tom, mostly your edge is straight up. You're just extremely good at controlling risk. But then also on top of that small caps, is mostly tape reading.

00:13:20.029 --> 00:13:49.548
Colby Warshel: And it's really hard to really write out a strategy within tape reading, because that is literally an intuition thing unless you're gonna record every single second of the tape for every day. Go over it and say, Oh, I bought this breakout here because this seller was a hidden seller that was on the ask, and he got chipped away. And Re, it's like, How do you? How do you even define that, whereas in futures I'm like, I have 3 things. If they're bullish, I go long. If I go along. Here's my entry criteria. Here's my exit criteria.

00:13:49.569 --> 00:13:56.059
Colby Warshel: you know. it's way easier to like, really define it out in futures. But it's really hard and small caps to do that.

00:13:56.230 --> 00:13:58.469
Danny Camozzo: Yeah, if you're scupping momentum. You're just

00:13:58.599 --> 00:14:04.288
Alexander Winkler: have time to to analyze in that depth. I think that's why it's more of a gut feeling. That's that's

00:14:04.779 --> 00:14:12.219
Alexander Winkler: I was. Gonna say, there might be some truth to that, because Colby, like like what you were just describing

00:14:12.289 --> 00:14:20.448
Danny Camozzo: in terms of reading the tape, reading hidden sellers or hidden buyers, and all of that action, and what you're seeing on the tape versus what is

00:14:20.539 --> 00:14:34.049
Danny Camozzo: affecting on level 2. That's exactly how I trade, and I've gotten to a point where I've I guess I've become like really pretty good at reading that. But it's really hard to

00:14:34.399 --> 00:14:50.608
Danny Camozzo: teach that effectively to a more beginning trader, because they don't have the experience to number one. See that hidden seller or buyer, and then and then also the pattern recognition of like what normally happens when

00:14:50.779 --> 00:15:05.210
Danny Camozzo: you gotta pop up to it or down to it, or you know what happens with the chart from there. How does that affect what that hidden buyer or hidden sellers. Position might do like on Liam just a minute ago.

00:15:05.329 --> 00:15:23.858
Danny Camozzo: It broke down 15 cents finally, because a 50,000 share seller stepped in, and it's as you get more advanced. You understand that it's not that that seller just popped in all of a sudden. They've been there the whole time, and every time it pops

00:15:24.039 --> 00:15:27.399
Danny Camozzo: they're absorbing it and bringing it back down.

00:15:27.759 --> 00:15:36.859
Danny Camozzo: And so it can be fairly unintuitive at first to understand those things, and then.

00:15:36.980 --> 00:15:39.878
Danny Camozzo: and that especially to execute trades on it.

00:15:39.909 --> 00:15:45.190
Danny Camozzo: Before you have, like a level of confidence or conditioning on

00:15:45.930 --> 00:15:50.088
Danny Camozzo: how to actually execute correctly on a stock that moves like that. Or.

00:15:50.349 --> 00:16:02.428
Danny Camozzo: you know, when I started trading early, 2020 into 2021 you know, and we all probably learned the typical bear both lag like 3 1 min

00:16:02.789 --> 00:16:05.348
Danny Camozzo: candlestick type play.

00:16:05.609 --> 00:16:12.930
Danny Camozzo: I hardly remember seeing hidden sellers and hidden buyers at that point. The market has developed

00:16:13.200 --> 00:16:24.118
Danny Camozzo: so so much and so differently. And it's a lot more complicated than just surface level at this point, like, it was a few years ago.

00:16:25.750 --> 00:16:33.719
Colby Warshel: Yeah, I think you could honestly probably write a legit like 300 page book on just level 2. And someone could read that 100 times, and they will suck.

00:16:34.200 --> 00:16:43.278
Colby Warshel: maybe worse than how. They not even read it, just because they would be out of date in like a year or 2. It's like, how are you supposed to do that?

00:16:44.829 --> 00:16:52.269
Tommy Salerno: But a lot of the reason the small caps trading small caps needs to be on intuition is because

00:16:52.329 --> 00:17:00.529
Tommy Salerno: to back test a strategy. It's like the small cap like the strategy, like the setup doesn't obviously doesn't work

00:17:00.819 --> 00:17:08.220
Tommy Salerno: 100% every time. It doesn't work. Sometimes 50% at a time. And by the time you're tracking a setup that is working

00:17:08.279 --> 00:17:28.638
Tommy Salerno: within the past week after that one week of data where you could say, okay, they're red to green. It's working like 75% of the times breaking through the highs, holding and running more. By the time you realize that strategies working the next day, you know, you may get one more day of that, and then it completely changes the shorts. Now know exactly where that

00:17:28.639 --> 00:17:44.419
Tommy Salerno: where that's going to break out, and they, you know, they all jump on at once for the breakout, and then it completely flips, and then that's where the short entry is, and then that's fading for the rest of the day on that red to green and then you have to completely, you know, change that strategy. So that's why it has to be

00:17:44.419 --> 00:17:55.980
Tommy Salerno: more off of intuition rather than you know. Structured in a sense, is because those setups the the pattern changes so quickly because everyone is already adapting, like to the new.

00:17:56.099 --> 00:17:59.499
Tommy Salerno: to the new hot setup of the week or of the month.

00:18:01.069 --> 00:18:03.710
Danny Camozzo: Definitely true. Yeah, I agree with that.

00:18:04.259 --> 00:18:12.619
Colby Warshel: There's so much variation in small caps. Just I mean, everything we're saying is basically more reasons as to why it's extremely hard to make like a legit playbook

00:18:13.240 --> 00:18:22.839
Colby Warshel: strategy like Tom. What you were saying earlier is, you want to do that, you know. I'm sure there has to be some way to do it. There's people that are doing it. They're probably just using data, though, instead of

00:18:23.759 --> 00:18:41.450
Colby Warshel: like for me, I can easily write out 4 things that have to happen for futures, because I'm trading the same ticker every day, same volatility as the same. It's exactly the same every day, whereas with that you kinda have to get like an aggregate of a of everything and be like oh, for the last month we only had.

00:18:41.509 --> 00:19:00.259
Colby Warshel: Let's say you only have 30 small caps that went above 40% intraday. And out of those 40, you know, it'd be like something like the short bear or one of those guys who are like data collectors where they say, Oh, last month was slow, not because I just thought it was slow, but because I have all this data that I collected. That says

00:19:00.490 --> 00:19:08.089
Colby Warshel: the gappers failed, and on average of 75 they went through below the previous days low, and it's like.

00:19:08.190 --> 00:19:14.188
Colby Warshel: you know how you supposed to know that unless you're gonna do all that data shit which that's full edge in itself, that we don't even

00:19:15.269 --> 00:19:24.919
Tommy Salerno: fuck with it all. But before large caps that could where that could work for couple of months for small caps. That's gonna work for a week. And then everyone uses that

00:19:25.029 --> 00:19:29.898
Tommy Salerno: that entry as now, an exit, because they want to get out before everyone else.

00:19:30.750 --> 00:19:40.470
Colby Warshel: I was even watching relentless trade, or he posted like a short or something, and he was just like marketing in and out like real quick, like you do. And I was just watching. And I was like.

00:19:40.559 --> 00:19:42.349
Colby Warshel: it almost looks like

00:19:43.250 --> 00:20:00.098
Colby Warshel: you guys have to be each other because you're the only ones like trading it like you have to literally be like, Okay, Tom, when you enter, you know, relentless is literally gonna enter at that same moment you have to get out like before he gets out, or he might make it go down enough where it's gonna stop you out. You know.

00:20:00.099 --> 00:20:15.028
Danny Camozzo: I think that that's happening a lot in this current market where we aren't seeing a whole lot of really good moves, and we aren't especially seeing a whole lot of continuation. So a lot of the small caps traders are kind of like

00:20:15.049 --> 00:20:25.480
Danny Camozzo: stumbling over each other to beat each other into profit. That's just this current market cycle, though I think that eventually we

00:20:25.740 --> 00:20:43.318
Danny Camozzo: we probably will come back into a period where things are working well, setups are working, continuation is working, and it'll be more like working together at that point and having those nicer, cleaner extended moves with nice clean pull backs.

00:20:43.389 --> 00:21:00.869
Danny Camozzo: so I think you're totally right. I think I think it's just this phase of the market, though, and and you can totally tell. It's lower volume on everything all around, and everything is kind of choppy. And it's because traders are stumbling over each other and taking like 5 cent scalps. Instead of

00:21:01.450 --> 00:21:06.209
Danny Camozzo: trusting that a move is actually gonna work and not selling. Yeah, shares in 5 cents.

00:21:06.470 --> 00:21:08.918
Alexander Winkler: Yeah, there's no trust in the markets right now.

00:21:09.089 --> 00:21:09.909
Danny Camozzo: yeah.

00:21:10.430 --> 00:21:13.148
Danny Camozzo: which is fine. It's just a phase.

00:21:14.379 --> 00:21:17.240
Colby Warshel: You guys seen the whole mad as stuff on Twitter.

00:21:17.680 --> 00:21:19.788
Tommy Salerno: Oh, yeah. Oh, yeah, I'm following that.

00:21:20.109 --> 00:21:21.709
Colby Warshel: It's not awesome about it.

00:21:21.960 --> 00:21:46.009
Colby Warshel: So you guys are mad as money beast of a trader made 12 million in the first 3 months of. So this is the whole story of Matt as I don't know how much he made lifetime, but he traded for like 10 years before 2020. And let's just say it was like 5 to 7 million he made before 2020 in 2020 itself. The first 3 months he made 12 million, but ever since those first 3 months. He's down.

00:21:46.029 --> 00:21:49.229
Colby Warshel: I think, 7 or 8 million out of that 12

00:21:49.639 --> 00:21:54.829
Colby Warshel: since 2,020 in the last 2 years. He's lost like 2 million, I think, but

00:21:55.029 --> 00:21:59.418
Colby Warshel: it's so interesting to see the evolution of a trader because he

00:22:00.470 --> 00:22:27.330
Colby Warshel: so Lance Brightstown. Obviously, we all know he loves daily report cards really in depth reviews. Why did you fuck this up? Give me like 3 really good clean solutions as to how you're gonna fix this problem, you know. Figure out every single reason why something did happen or didn't happen. And Matt, as is such a trader where he's like, oh, the manipulation! The level 2 just gets fucking skipped up, and the halt bands just fucked me, and you know his like explanation of why he loses is just because, like

00:22:27.330 --> 00:22:44.198
Colby Warshel: life. And that's a shitty, fucking manipulation. You know, it's like, okay, well, yeah, no shit like everything's manipulated. How are you gonna make money? That's the question. See him going through this like evolution of

00:22:44.399 --> 00:23:06.868
Colby Warshel: absolute Number one trader to just like now he can't even do like what a a first year student could do. And he's like. He bought some shit the other day and posted on Twitter, and it was literally like a 1 min engulfing candle at the high of day with the most volume of the day on a low float ticker, like the number one reason why any person with a brain, the trades would say, Do not buy that

00:23:06.870 --> 00:23:16.580
Danny Camozzo: pull back 1 min in golfing candle. The high of day breakout was like this big. The engulfing candle was like

00:23:16.740 --> 00:23:18.589
Colby Warshel: highest volume of the day.

00:23:18.600 --> 00:23:27.910
Colby Warshel: It's a low float. It's small cap. Small caps are not running, and he bought that, and he got skipped down and lost like 15 K. And he was like, oh, it's just, you know.

00:23:28.319 --> 00:23:32.789
Colby Warshel: some hidden seller. I don't know some stupid excuse, and it's like dude. You literally bought

00:23:32.799 --> 00:23:49.209
Colby Warshel: the worst candle of the day and your excuses. That manipulation, I mean, any person that's been training for a week would know that that's well, not really. A couple of months would know that that's a bad place to go right? So it's like a year. We'll see that. Yeah.

00:23:49.470 --> 00:24:15.428
Danny Camozzo: yeah, I used to. I don't know if I still follow him or not on Instagram, or if he's just been super quiet. But I used to see so many stories from him about his like special edition. Lamborghini, and all the upgrades and balconies that he's putting on his house in La, and whatever and I don't remember if I unfollowed him, or if he just doesn't post anymore. But I have not seen any of that in the last couple of years from him.

00:24:16.499 --> 00:24:25.899
Danny Camozzo: It's kinda it's unfortunate it's kinda sad to see somebody who just killed it on the memes and can't keep up in the current market.

00:24:27.589 --> 00:24:30.769
Colby Warshel: Yeah. And he literally pushes size to a level. That's just

00:24:31.339 --> 00:24:45.479
Colby Warshel: it's it's unfathomably dumb. I mean, he's using like 50 K shares on a ticker that has like. yeah, like, like 700 K volume on the day, and it's like there's no no liquidity

00:24:45.539 --> 00:24:47.789
Danny Camozzo: for that size in this market.

00:24:48.049 --> 00:24:52.288
Danny Camozzo: Yeah. Just makes better creating half that size

00:24:52.990 --> 00:24:57.238
Colby Warshel: way better. And he's always like, oh, I could easily make a thousand to 4,000 a day. I

00:24:57.269 --> 00:25:05.178
Colby Warshel: then fucking, do it! What do you want? 1,000 days 1 million dollars a year, I mean, you're losing a million dollars a year right now.

00:25:05.330 --> 00:25:11.769
Danny Camozzo: because you're trying to make 50 K. In a market. That's fucking terrible. It's just crazy. I don't know what.

00:25:12.569 --> 00:25:17.539
Colby Warshel: What the hell! Broke in his fucking brain. That makes him think that any of that shit's a good idea. I don't know.

00:25:18.439 --> 00:25:31.640
Danny Camozzo: Well, I think it's kind of like the hanging onto the strategy that paid him so well years ago. But unfortunately he's given back so much of the gains that he's not really in a great position to trade the next hot market. Very well.

00:25:33.089 --> 00:25:37.410
Colby Warshel: it's fucking. Jesse Livermore. Make a billion dollars in the Great Depression, and then lose it all.

00:25:37.890 --> 00:25:39.479
Danny Camozzo: Is that what happened to him?

00:25:39.700 --> 00:25:49.259
Colby Warshel: Yeah, he made a billion in the Great Depression. Well, a billion in today's money like today's dollars. Yeah. Then he he died fully 100 broke.

00:25:49.629 --> 00:25:53.169
Danny Camozzo: He went like moon and back

00:25:53.359 --> 00:25:56.660
Danny Camozzo: and back like at least a couple times right?

00:25:56.890 --> 00:26:00.308
Colby Warshel: I have no idea. I just know he lost it all before he died.

00:26:00.609 --> 00:26:07.848
Tommy Salerno: Committed suicide from that right. Is that what I heard? I think he committed suicide. Yeah.

00:26:09.519 --> 00:26:12.058
Danny Camozzo: yeah, he's a definitely a.

00:26:12.160 --> 00:26:14.868
Tommy Salerno: And I think it's in the book. I don't. You guys didn't read the book.

00:26:19.539 --> 00:26:24.039
Danny Camozzo: That's why I feel like a lot of people stop

00:26:24.120 --> 00:26:33.350
Alexander Winkler: trading after they make a few 1 million, because they're just like, yeah.

00:26:33.509 --> 00:26:41.789
Danny Camozzo: you can make a couple 1 million in the market. You. I don't know people. Certain people can make a couple of 1 million in the market

00:26:41.930 --> 00:26:52.618
Danny Camozzo: fairly quickly. And then, if you're smart enough to hang on to most of it. You know, thinking about 4 to 5% returns per year. If you have 2 million.

00:26:53.470 --> 00:27:02.308
Danny Camozzo: 3 million, you know, that's a hundred 1,000, 20,000 or so just in passive cash with a very conservative

00:27:02.779 --> 00:27:05.700
Danny Camozzo: return rate.

00:27:06.330 --> 00:27:09.129
Colby Warshel: Dude. The thing that scares me is the fact that

00:27:09.609 --> 00:27:19.868
Colby Warshel: there's things that we have to tackle in trading that don't exist until we break a certain experience level like that exact thing like, let's say you make

00:27:20.459 --> 00:27:25.359
Colby Warshel: whatever you have 3 years in a row where you make like 100 k. 150, then 200,

00:27:25.399 --> 00:27:41.609
Colby Warshel: and then your fourth year. Everything starts to kind of wither away a little bit. You lose like 50 K. How? That's not a thing you're gonna have to ever experience until you're at that level already, which is like, say, 3 to 5 years into trading.

00:27:41.649 --> 00:27:56.158
Colby Warshel: and then you have to learn how to not give away all of the money you've made when your strategy doesn't work anymore. Like that's a whole. That's a whole skill that you have to conf that you learn. That's totally unrelated to the whole first beginning stage of training.

00:27:56.169 --> 00:27:59.638
Colby Warshel: and if you fuck up that part. You can delete everything.

00:28:00.249 --> 00:28:05.310
Danny Camozzo: I totally agree. That was that was last year for me completely.

00:28:05.399 --> 00:28:09.720
Danny Camozzo: II nearly had a I nearly had a red year last year.

00:28:09.789 --> 00:28:11.350
Danny Camozzo: But

00:28:11.479 --> 00:28:14.350
Danny Camozzo: luckily I didn't barely, and

00:28:14.779 --> 00:28:22.499
Danny Camozzo: had to relearn and re-strategize and figure out like, yeah, I had. I had like 3 years of

00:28:22.609 --> 00:28:27.979
Danny Camozzo: profit in a row. But it wasn't that much, all things considered, how do we move forward from here

00:28:30.209 --> 00:28:32.419
Colby Warshel: like Alex? You could probably talk about that

00:28:34.669 --> 00:28:36.839
Alexander Winkler: I'll tell you what man like.

00:28:36.890 --> 00:28:44.039
Alexander Winkler: Don't use your your earnings, your big winnings and invest it in a new strategy.

00:28:44.289 --> 00:28:54.408
Alexander Winkler: You learn a new strategy from scratch with a small account doing the same crap you did, you know, before you had a lot of money?

00:28:54.499 --> 00:29:30.839
Alexander Winkler: I mean, it's just like, remember, I just went with the options trade, and I just made like a quick what was it like? Just use massive size. And then II did the second trade, or like 3 more trades. And I basically lost the 10 K again. That's exactly my experience with options, too. Yeah. So it's like, why am I using such fake size like? What if I did that when I made a million dollars with day trading? And then, all of a sudden. You know I do that with options that'd be absurd. I've done that before with business. I've had a really good business before, and then I steamrolled

00:29:31.019 --> 00:29:56.928
Alexander Winkler: or bankrolled another business. That was a failing business with the profits of the successful business. That was a really bad idea. So you know, don't do. I've I've definitely learned this lesson, maybe 3 or 4 times in my life. And I'm I'm getting very aware of when I start doing this mistake, because it's such a natural thing to wanna do. It's like, Oh, yeah, let me increase my revenue stream. So I have this money. Let me put it over here. But it's it's not like that, because these are high risk

00:29:56.999 --> 00:30:15.468
Alexander Winkler: endeavors. It's not like I'm taking money, and I'm putting into like a dividend stock or the spy, or some index fund, or some annuity, or or something like that. You know, I'm I'm putting basically hard earned money into another high risk asset, and that is something you don't wanna do with your life. So if

00:30:15.470 --> 00:30:32.698
Alexander Winkler: I think to avoid the problem of losing a bunch of money as a day trader like, if you do branch out to new strategies like for me. I tried to always practice my swing trading, and I've lost a lot of money swing. I'm actually pretty much net 0 at this point with my swing trading, and I've made a lot, and I lost a lot. But

00:30:33.169 --> 00:30:52.169
Alexander Winkler: so I'm I'm slowly learning it. But a lot of times I would make a lot of money with a small account swing trading. And then, you know, I was like, okay, I'm ready. Let me put my, you know I have. Oh, I have in here. Let me start swing trading with it, and then boom! Before you know it. I just get back 20 K. And I was like, Oh, well, that was stupid. So it's you know. It's

00:30:52.439 --> 00:30:55.939
Alexander Winkler: if you're gonna start a new business, or if you're gonna start a new strategy.

00:30:56.160 --> 00:31:10.970
Alexander Winkler: let that be bootstrapped, or at or have some sort of funding or investment that's not related to you, I would say, or otherwise, that new business or that new strategy is going to be a major black hole. And that frustration is gonna

00:31:10.970 --> 00:31:30.399
Alexander Winkler: is gonna wrap. It's gonna go right into your your current bread and butter, you know. Whatever's making you money, your golden goose, that's what happened to me again in. I was so focused on different strategies that all of sudden, my, my golden goose! I was so frustrated I could barely trade front side. So I just I had to stop making a lot of

00:31:30.399 --> 00:31:49.189
Alexander Winkler: stupid mistakes, throwing money away. Because it creates a lot of stress. So I think you know, we talked about this on a former pod. But it's basically like, you know, if you make a million dollars with day trading, I wouldn't take that money and then start trying to play options. I would take that money and put it into something very, very safe. So at least you don't have to worry about money anymore.

00:31:51.919 --> 00:32:02.759
Danny Camozzo: I think that's smart, and like with businesses just like trading. Eventually, you start to realize, like, where does it make sense to put your money

00:32:03.430 --> 00:32:08.080
Danny Camozzo: like? Which trades are the good trades that keep paying you?

00:32:08.850 --> 00:32:13.118
Danny Camozzo: What's the opportunity cost? Where does it make sense to use that money.

00:32:13.370 --> 00:32:20.508
Danny Camozzo: and some of the bigger, bigger, best traders who I know who I'm friends with through warrior

00:32:20.689 --> 00:32:24.669
Danny Camozzo: one of the smartest things that I see them do all the time is

00:32:25.080 --> 00:32:40.609
Danny Camozzo: either when they've made a good bit, or when they have been finding choppiness in the market, or choppiness in their recent P. And L, they'll take like 80% out of their account so they can't lose it. They're not trading with it anymore, and then they'll grow that account back up

00:32:40.729 --> 00:32:42.350
Danny Camozzo: and

00:32:42.499 --> 00:32:45.399
Danny Camozzo: just recently, a couple weeks ago.

00:32:45.410 --> 00:32:55.850
Danny Camozzo: was the first time I had ever done that my goal or not really goal. But my thought this year was just to let the account grow and grow and grow, and at the end of the year see how where I'm at

00:32:55.950 --> 00:33:06.269
Danny Camozzo: but I had been going through a drawdown for long enough that I was like. I'm gonna take 80 out of my account and kind of just start fresh, and

00:33:06.919 --> 00:33:11.198
Danny Camozzo: it helps with mindset, for sure, but also just protecting your capital

00:33:12.970 --> 00:33:14.160
Alexander Winkler: totally agree.

00:33:14.379 --> 00:33:23.089
Alexander Winkler: That's that's one problem I have, because I'm primarily trading my Roth Ira. So like taking funds out of that account isn't as much of an option, although

00:33:23.259 --> 00:33:37.100
Alexander Winkler: I like to think about yeah, you could. Yeah, that's that's what I do. Often with my swing trades. That's where I that's where I'm bankrolling my swing trades for my day training profit. And it gets me a lot of holes.

00:33:37.169 --> 00:34:00.698
Alexander Winkler: but yeah, I need to put it in very safe things and you could buy save things through your Ira. It's not like you could just only buy, you know, stocks or something like that. So I I need to be a little bit more open minded with that. But I do like growing my Ira, because if I grow it from, I basically put in $0. At this point I took I took out all my principal, and you know, I'm pretty confident that I can grow to 1 million dollars, and that means I just grew

00:34:00.859 --> 00:34:05.308
Alexander Winkler: $0 to a million dollars tax free ultimately. And

00:34:05.330 --> 00:34:22.948
Alexander Winkler: that's pretty amazing. And if I want to take out 100 KI would still pay taxes on that 100 K like, it's income tax, and then I would pay the 10% penalty fee. But I'll pay the $10,000 on a hundred K penalty fee cause I just saved, you know, paying $400,000 in taxes. So it's still worth the penalty fee growing in your Ira.

00:34:23.189 --> 00:34:24.899
Danny Camozzo: Yeah, that's true.

00:34:26.659 --> 00:34:27.970
Danny Camozzo: Just hearing

00:34:28.439 --> 00:34:39.720
Danny Camozzo: that thought process and talking about trading an Ira and all of this and tax free benefits, even if you have a hard time finding a lot of long term consistency, or like.

00:34:40.560 --> 00:34:51.630
Danny Camozzo: even if it takes the next 15 or 20 years to grow that to a million, you're still so well positioned financially with financial literacy and literal finances that

00:34:52.590 --> 00:34:55.269
Danny Camozzo: it's just a cool journey

00:34:55.390 --> 00:34:56.710
Danny Camozzo: trading in general.

00:34:57.369 --> 00:34:59.439
Danny Camozzo: Yeah, I totally agree with that.

00:35:00.560 --> 00:35:03.568
Tommy Salerno: So just to kind of bounce off of that is

00:35:05.000 --> 00:35:12.118
Tommy Salerno: so sorry. Just just to kind of bounce off of that. I was just gonna say, yeah, we already like as traders, we already have

00:35:12.420 --> 00:35:25.238
Tommy Salerno: access to take pretty much an infinite amount of risk, more risk than we'd ever want to. So why would you want to layer that with another level of risk that you're not even proven to be profitable, or even.

00:35:25.399 --> 00:35:52.578
Tommy Salerno: you know, if you're already profitable as a trader, you can just scale. If you wanna take more risks, scale it up. Take more size. You don't need to jump into something else that's may not even be as proven to be as profitable. And even, you know, even if it was. Is it to the level of trading something that you've already been doing for a long time? You can, kinda you know, kinda trust your statistics more. Yeah. Why would you wanna to to kind of spoil those games into something that's not

00:35:52.979 --> 00:35:54.269
Tommy Salerno: as proven

00:35:54.779 --> 00:35:58.279
Alexander Winkler: totally great. And that's really well said, Yeah.

00:35:58.439 --> 00:36:15.568
Danny Camozzo: yeah, I think that's a great point as well. It's like. I think, that that's a really good way to go sideways for a long time. Make some games on one strategy. Try a different strategy for some reason. Give them back. Go back to your first strategy. Make it back.

00:36:16.979 --> 00:36:24.519
Alexander Winkler: Yeah, this is my 2023. I think I had to get slapped in the face by that at least once. Really hard.

00:36:24.590 --> 00:36:37.538
Danny Camozzo: I think I think. Do it trying that like once, maybe twice, and then moving on makes sense. It's like that didn't work the first time. Maybe I can make some adjustments, see if it'll work a second time.

00:36:37.739 --> 00:36:46.250
Danny Camozzo: But you know past that. It's like, why do you keep trying the same thing that isn't working, and expect it to be different this time?

00:36:46.590 --> 00:36:48.800
Alexander Winkler: Well totally agree.

00:36:51.399 --> 00:36:54.479
Tommy Salerno: What were you saying, Colby, before II started speaking?

00:36:54.689 --> 00:37:16.060
Colby Warshel: I was just gonna say, it's crazy to think there cause, Danny was saying, how cool it is to be financially Literate. And I was like, there's people out there that don't even know that Roth Iras exist like that's fucking, I know right.

00:37:16.069 --> 00:37:20.750
Danny Camozzo: And you could you tell other people about that? And they're like, no, no, that can't be.

00:37:20.989 --> 00:37:24.800
Colby Warshel: You're like this is Ross Cameron. He made a million dollars in his Ira look.

00:37:24.829 --> 00:37:27.619
Colby Warshel: really check it out.

00:37:27.939 --> 00:37:37.340
Danny Camozzo: I've been watching or not necessarily watching. But I followed a guy on Instagram recently. Caleb Hammer. I don't know if you guys have heard of him or at all.

00:37:37.439 --> 00:37:58.899
Danny Camozzo: and what he does is he interviews people who are like in debt or making bad financial decisions, and he tries to turn them around. And the decisions that people make. It's like congrats. You got a a camaro on an 84 month loan at 20% interest. You're like.

00:37:59.710 --> 00:38:12.579
Danny Camozzo: it's insane. And yeah, people, a lot of people just don't know any better. They want their monthly payment to be like 300 400 or whatever. And they don't understand that the length of time and the interest rate

00:38:12.920 --> 00:38:19.259
Danny Camozzo: for that $50,000 car you're gonna end up paying like $120,000 over the next 10 years.

00:38:19.420 --> 00:38:20.420
Alexander Winkler: Yeah.

00:38:20.880 --> 00:38:23.420
Danny Camozzo: good investment.

00:38:23.850 --> 00:38:44.739
Tommy Salerno: But the sad part is that's that's the most of the people. Ii mean, II take calls for people from various banks and credit unions, and I get to look at their account. And a lot of it is their mindset is, wait, I have a thousand dollars. I mean an overdraft. Yeah, you have a thousand dollars an overdraft, and you get $30 fees every time you use it.

00:38:44.739 --> 00:38:56.859
Tommy Salerno: But yeah, like a lot of people are, you know, negative in their account. They have really bad, like, you know, the line of credits for 20% interest rate personal loans like very high rates.

00:38:56.979 --> 00:39:18.539
Tommy Salerno: It's it's they're been very, just a lot of people. I'd say 90% of caller. 9 out of 10 people aren't very, very, very bad financial situations, and I'm thinking, like, if I was in their situation I would be crippled with anxiety of just trying to get to the next month. It's really bad.

00:39:18.850 --> 00:39:34.408
Tommy Salerno: Yeah, you'd file for bankruptcy, or there's also a lot of old people that are that are just living off of social security for 1,500 a month. And they get they call me. And they're like, it's my social security check hit.

00:39:34.439 --> 00:39:41.378
Tommy Salerno: And I'm like, no, it didn't hit yet, and he's like, Oh, man, I'm gonna have to go another month with $12 in my account. It's just

00:39:41.779 --> 00:39:45.000
Tommy Salerno: I don't know how some of these people are surviving. It's really bad.

00:39:45.430 --> 00:39:46.939
Colby Warshel: Wow! That is terrifying.

00:39:48.890 --> 00:39:49.569
Tommy Salerno: Yep.

00:39:49.909 --> 00:39:53.729
Tommy Salerno: rant on that. It's it's really

00:39:54.869 --> 00:40:01.890
Tommy Salerno: II I'm very II do feel very bad for some of these people in these situations. When I do take them on the phone.

00:40:01.930 --> 00:40:12.519
Tommy Salerno: and I try to give them advice, but you know it's I don't know I mean as I don't know how well that that goes if they ever take it. But you know, sometimes they're just in a position where it's so far.

00:40:13.050 --> 00:40:18.579
Tommy Salerno: so far deep in the red or deep in the hole, that it is very hard to turn around

00:40:18.739 --> 00:40:35.378
Danny Camozzo: that's so wild to think that our economy is just built in a way to just make sure that continues to occur. yeah. So it's fucking weird. It makes me think about the education system at least a little bit, because financial literacy was

00:40:35.760 --> 00:40:37.309
Danny Camozzo: no part of my

00:40:37.880 --> 00:40:47.418
Danny Camozzo: education, high school or anything, and growing up in the DC area. I was in one of the top school districts in the entire country, and

00:40:47.640 --> 00:40:50.028
Danny Camozzo: we didn't learn about any of that

00:40:50.500 --> 00:41:18.519
Colby Warshel: dude. How easy would it be to you could literally just go into a class. It's the whole class is called life. And the first thing you do is you say, what do you want your life to be? Do you want 2 kids? Do you want a house? You want a townhouse a condo. You want to live near the ocean. How do we get there? You build your life out, and then you you get a job right? You get to pick your job, you get to pick what your salary would be. You get to look at your monthly expenses where you gonna put the money you save. What are you gonna do? It'd be so easy to be fun. Every

00:41:18.519 --> 00:41:39.368
Colby Warshel: be awesome, so easy. Learn how to like the second. You get your first paycheck. The teacher comes right by swipes that shit out of your hand, taxes some money, and you get to decide like, do you keep saving that, and reinvest half of it, or whatever, or do you buy your

00:41:39.369 --> 00:42:01.680
Danny Camozzo: your camaro, or whatever it is that you want to have right now and then you get graded on decision and like your financial health at the end of the semester, or whatever there is every 3 months there's like a random expense you weren't expecting. Yeah, there's so many different ways that the same concept of like,

00:42:02.130 --> 00:42:09.918
Danny Camozzo: interest and growth and inflation and and all these important concepts. But actually just using real life examples.

00:42:10.930 --> 00:42:16.458
Alexander Winkler: Can this school district come by and just like hire insiders? And we'll just know

00:42:16.710 --> 00:42:19.069
Alexander Winkler: we'll go and talk to the schools.

00:42:19.239 --> 00:42:34.498
Danny Camozzo: Yeah, I imagine. Scare him straight. Just taking a bite out of all of the kids sandwiches.

00:42:34.609 --> 00:42:39.409
Danny Camozzo: 37% is mine.

00:42:39.810 --> 00:43:08.179
Tommy Salerno: I like, I like the example of the the marshmallow experiment of kids sitting in a room, and some kids eat the marshmallow right away while some of kids wait, you know an extra hour and sit in the chair. Look at the marshmallow for an hour, and they get another one. I think that most people would eat the marshmallow right away, and I think there's a high high consistency of successful people who do wait the hour to get the the marshmallow, or, you know, take the long road to

00:43:08.489 --> 00:43:29.489
Tommy Salerno: guarantee success rather than taking the gains now, or trying to take the take the personal loan at a high interest rate. Now to try to pay off, or whatever do whatever with it. But then you're saddled up with that paying that off for a long time rather than you know, taking it bit more conservatively to kind of more, more so guarantee

00:43:29.699 --> 00:43:32.390
Tommy Salerno: growth in the end.

00:43:33.590 --> 00:43:41.159
Colby Warshel: I think humans are just inherently risk takers. We just like taking risks. We like thinking that there's the potential for outsized returns.

00:43:41.409 --> 00:43:53.750
Colby Warshel: I don't know. I mean, I tried to learn some stuff about psychology, but then you get into like the third study of like gambling, and you're just like Whoa! Whoa! Whoa! Whoa! Whoa! Whoa! What? What? Huh! And it's just like, so conf like confusing. But

00:43:54.239 --> 00:43:59.899
Colby Warshel: yeah, like, it's pretty. It's pretty obvious that the fact that casinos exist at all

00:44:00.130 --> 00:44:08.649
Colby Warshel: and slot machines are a thing, and literally, every human being on the planet knows that you just don't win ever, and they do it every day all the time is just.

00:44:09.000 --> 00:44:11.350
Alexander Winkler: That's horrible. I am. Yeah.

00:44:11.590 --> 00:44:14.220
Colby Warshel: that says a lot about humanity. Honestly.

00:44:14.369 --> 00:44:17.088
have you guys ever gambled in a casino before

00:44:17.569 --> 00:44:18.958
Danny Camozzo: I have it? Poker?

00:44:19.710 --> 00:44:21.579
Tommy Salerno: II have. But

00:44:22.000 --> 00:44:45.300
Alexander Winkler: yeah, nothing like series is more like I had credits because I was staying at this Casino place, and I was like €50 or something. It was with my brother, and we basically, if you don't use it, you like you lose it right? So then Hike and I were. I don't know what we did. We did. We did a little, everything from slots to like slots to tables to I. We both lost the money. We was up and down and up and down mentioned. We lost it. But yeah.

00:44:45.470 --> 00:44:55.948
Alexander Winkler: that was that was my one. Get to gambling day, I mean, technically, we're day traders, but I don't view, dating, trading as gambling

00:44:55.949 --> 00:45:16.849
Tommy Salerno: slots are straight up like you. You know, you're losing money, because, you can't beat the odds like you can't. There's no way for the odds to be in your favor. And Black Jack, okay, maybe if you can count cards poker, maybe if you know, you know your hand and the statistics of each hand, and the statistics, and the probability of somebody else having a better hand than you.

00:45:17.069 --> 00:45:20.159
Tommy Salerno: Even though in those situations I get it

00:45:20.529 --> 00:45:36.539
Tommy Salerno: makes it 40.

00:45:36.689 --> 00:45:38.609
Tommy Salerno: It is no way.

00:45:40.319 --> 00:46:04.238
Tommy Salerno: Who who in the right mind would want to, would want to do that, you know, knowing that you're gonna lose money, and then that's why Slots once, just cause I wanted to see what rush it was. I mean, there's a lot of flashing lights, but I'm already not one of those people that like that stuff. But I was like, I don't get this, you know, like I'm happy. I tried it, but I just I don't. There's so many people around me that were like zombies. And I was like, dude.

00:46:04.479 --> 00:46:18.488
Alexander Winkler: What? I don't get it. I don't get it. Yeah, add on the flashy lights, and you got it. Traps pretty much. Most zombified people who just can't really make a decision and kind of just go by their emotions. And

00:46:18.649 --> 00:46:23.069
Tommy Salerno: do they need to play? Just go for what feels good?

00:46:24.960 --> 00:46:27.189
Alexander Winkler: Yeah, that's funny.

00:46:27.430 --> 00:46:32.119
Tommy Salerno: We are hits.

00:46:32.840 --> 00:46:34.529
Alexander Winkler: Kobe. That's

00:46:35.720 --> 00:46:55.769
Colby Warshel: I was just gonna say, me and my buddy went to the Casino. We took like, I mean, I literally only took an amount of money that I was 100% losing for sure. So I went there. And I and I just went to the right role that yeah, I just went to roll that. And I was like, I'm betting black 5 times, and just see what happens. And every dude around me is like

00:46:55.840 --> 00:47:05.899
Colby Warshel: 7 12, like putting all this money on like 6 things. And I'm I was just looking at them like that's fucking stupid. And these guys are like old men that are just

00:47:06.569 --> 00:47:15.789
Colby Warshel: gambling.

00:47:16.060 --> 00:47:22.500
Danny Camozzo: Obvious. I was like the best sense things like soccer blackjack. There are ways

00:47:22.630 --> 00:47:26.149
Danny Camozzo: to have skill at it, but just actual gambling.

00:47:26.279 --> 00:47:36.989
Danny Camozzo: literally a disease. It's like, you know, there is that I could hit the jackpot, and so it makes sense for me to lose all of my money first.

00:47:37.810 --> 00:47:55.449
Colby Warshel: Crazy. But there is a chance that's machine players that would watch this shit or just gamblers. People like that, and they'll be like trading is gambling, too.

00:47:55.569 --> 00:48:07.170
Alexander Winkler: They're not watching slot machine player. Please leave a comment below, I would just with consistent success.

00:48:07.180 --> 00:48:16.389
Danny Camozzo: Yeah, I need to see all the comments. How do you see? Like 3 years worth of making money consistently?

00:48:17.399 --> 00:48:20.489
Danny Camozzo: Yeah, it's weird.

00:48:20.899 --> 00:48:25.639
Alexander Winkler: I have one, grandma. She is die hard, lottery player.

00:48:25.699 --> 00:48:33.359
Alexander Winkler: and I always give her a hard time because she's still red thing. She lives in the same house she lives in since I think it was the sixties. It's

00:48:33.560 --> 00:48:39.869
Alexander Winkler: she's been in this place for so long, and she has. She's been paying rent every month, and I'm like.

00:48:40.010 --> 00:49:04.189
Alexander Winkler: I'm like, Helga, if you if you just bought this house, there's your lottery ticket like don't play lottery like it's your house especially in the sixtys, you know. Oh, my, gosh, be sitting on yeah. 6 raspberries.

00:49:04.210 --> 00:49:06.319
Alexander Winkler: Yeah.

00:49:06.350 --> 00:49:29.979
Alexander Winkler: dude, it's crazy. But I don't know some people. Some people just don't fundamentally get it. And she, you know, I somehow she gets joy out of the lottery, and II don't know like it should be like, yeah, this time it made $12 from like, did the ticket cost you $20 like, but there's not even that like, you know, profit, margin revenue. Expect that whole.

00:49:30.079 --> 00:49:35.590
Alexander Winkler: It's just gone. They're just not business people. Period. I don't know the spirit, the opposite.

00:49:36.039 --> 00:49:36.760
Alexander Winkler: Yeah.

00:49:37.050 --> 00:49:38.170
Colby Warshel: that's funny.

00:49:39.029 --> 00:49:39.989
Alexander Winkler: It's horrible.

00:49:40.220 --> 00:49:41.390
Tommy Salerno: It's depressing.

00:49:41.519 --> 00:50:04.069
Tommy Salerno: Another another issue that I find that's a lot of people fall into, including myself. I'm sure a lot of you guys fell into this fall into this, too, is you only want to read stuff, or watch things that verify your already beliefs that you have, instead of looking at things that that are falsifying, that could potentially falsify what you believe.

00:50:04.079 --> 00:50:16.909
Tommy Salerno: And that is just to to kind of save your ego. And that's also another issue with learning to trade, and we're learning to get better is because you're afraid to kind of look at those, the failures or the

00:50:17.220 --> 00:50:22.389
Tommy Salerno: the things that may not be working out, but you don't wanna go through the effort to change them.

00:50:22.399 --> 00:50:23.550
Tommy Salerno: Yeah.

00:50:23.810 --> 00:50:32.220
Tommy Salerno: because that's easier just to kind of keep going, you know. Wait it out. Oh, it's gonna change! Oh, the market's gonna change, or the market is this or the market? Is that

00:50:32.500 --> 00:50:44.180
Danny Camozzo: our our ego and worldview are so precious and fragile and important until you go through shattering them enough times to realize they're not and change something

00:50:44.590 --> 00:50:48.119
Danny Camozzo: and admit that you're wrong and the defeat whatever.

00:50:48.500 --> 00:50:59.229
Danny Camozzo: I've been doing jujitsu for a couple of months now, and I really like the coach. He, at the end of class, frequently talks about that kind of thing in terms of

00:50:59.449 --> 00:51:06.250
Danny Camozzo: or like when we're sparring, rolling with each other. Especially that anybody new he's like.

00:51:07.090 --> 00:51:19.130
Danny Camozzo: just tap. If you're in a bad position or getting choked, or if you're uncomfortable, or if something hurts, or whatever just tap, it's just that it's not like you suck, you lose

00:51:19.470 --> 00:51:22.970
Danny Camozzo: thing. It's just reset and start over and go from there.

00:51:23.970 --> 00:51:38.389
Danny Camozzo: And trading especially is difficult like that when you have to go through being wrong and failing so much in order to finally find some success or consistency which most people just don't.

00:51:39.979 --> 00:51:50.930
Colby Warshel: Yeah, I think it's kind of common that 99% of the time. Whenever you see a human being that has like a problem, it's extremely obvious to every single person except that person.

00:51:51.069 --> 00:51:55.458
Colby Warshel: And it's just like that quote. It's like you believe every single thing.

00:51:56.060 --> 00:51:57.989
Colby Warshel: or what? How does it? Fucking go?

00:51:59.180 --> 00:52:06.618
Colby Warshel: I question everything. Dammit question. I question everything about

00:52:06.939 --> 00:52:09.979
Tommy Salerno: I question everything except for the things that I actually believe.

00:52:10.019 --> 00:52:14.409
Colby Warshel: Never question those. Yeah.

00:52:15.010 --> 00:52:37.759
Alexander Winkler: like the like. The things you you believe unconditionally are true. Yeah. And the other 5 times dude. I just had one of those revelations when I you know that video I came out with with oxlets and and like certain vegetables my whole life. You know. I've been told spinach is healthy. I didn't even think twice about it, you know. That was such a belief that I held.

00:52:37.769 --> 00:53:04.369
Alexander Winkler: and then I was like, wait a second like, if if it k like kids back in the day, everyone knew, don't feed your kids spinach because you can kill your kid like that was common knowledge, like, literally, like 50 years ago. And we, we have just totally forgot things like that. Because a lot of these vegetables. You have to cook it and prepare in certain ways, or you have to eat it very minimally, because they're just so toxic as well, which makes sense. You don't just go to any tree and just start biting into it.

00:53:04.369 --> 00:53:11.019
Alexander Winkler: You know, there's there's only certain amount of vegetables you can eat, and even those are still quite toxic. So

00:53:11.090 --> 00:53:14.158
Alexander Winkler: like when that was one of those like moments where I was like.

00:53:14.269 --> 00:53:30.488
Alexander Winkler: you know, slap me and call me. And I was just like I still have a hard time accepting it, because it's just again you go your whole life believing one thing, and I don't know. After you have enough of those moments you're just like what what else is like a giant lie. And

00:53:30.489 --> 00:53:45.868
Colby Warshel: no dude, I gotta go. I got a really good shit. This shit has been hitting me like crazy for the past 2 weeks, because something really weird is happening with me, with trading. It's trading. It's trading related. All right. Fuck I don't have like a purple bottle, all right.

00:53:45.890 --> 00:53:47.850
Tommy Salerno: like.

00:53:48.159 --> 00:54:14.979
Colby Warshel: So when you start trading, everyone is always like all training is

00:54:15.500 --> 00:54:21.300
Colby Warshel: all psychology. Psychology is super important, as we all know. Like, of course, it's important. But

00:54:21.329 --> 00:54:23.439
Colby Warshel: something I've realized that

00:54:24.920 --> 00:54:45.260
Colby Warshel: super surprising to me is that. So ever. So you guys know, I've been trying to make a system right? I wanna be a system trader. I wanna only trade whenever my system tells me to trade. I don't wanna ever make a personal decision based on my own feelings or my intuition. Anything like that. I only wanna trade the system. And ever since I've been doing that for like a full month, I've realized that

00:54:45.310 --> 00:54:50.899
Colby Warshel: like 95% of all the psychological problems that I've had with trading are completely gone now.

00:54:51.069 --> 00:54:59.659
Colby Warshel: and it's super fucking weird, because the only reason that happens is because now, when I take a trade, it is completely unrelated to me.

00:54:59.829 --> 00:55:23.118
Colby Warshel: so if I win or lose, it is completely does not matter about. If me making the decision cause, I didn't make a decision. I only read my system objectively, and the data says, Yeah, go or don't go. And if I go and I win, that's great. I traded the system. If I go and I lose. That's great. I still traded the system. So I've been having all these weird moments where, like, I'll get into a trade, and I'll be like.

00:55:23.510 --> 00:55:29.409
Colby Warshel: wow! I would have never bought that trade before, because this feels like it's extended.

00:55:29.489 --> 00:55:33.679
Colby Warshel: But I'll buy it now, because my system told me to, and I'll win on it, and it'll be like

00:55:33.920 --> 00:55:45.319
Colby Warshel: W. Well, what changed? It wasn't because my psychology was wrong before, and I was just scared. Now I have a system that tells me you buy when this happens, and when that happens I buy. I don't sit around and think about.

00:55:45.710 --> 00:55:51.609
Colby Warshel: You know this, this, this, this, this, this it's just telling me go, I take it. So it's really cool. Because

00:55:52.010 --> 00:55:53.930
Colby Warshel: and this is something these guys that

00:55:54.220 --> 00:56:08.359
Colby Warshel: I've been trading with from the lance bright Stein, like discord thing. They've taught me this. And they were saying how like all of them are like super systematic people, and some of them have made millions of dollars trading already. And all of their advice is always like

00:56:09.050 --> 00:56:29.349
Colby Warshel: you should never make a decision ever based on your personal feelings. Everything should be systematized, every entry should be systematized, every exit should be systematized so like something that whenever we first started the pod you guys were talking about how small caps are very inconsistent, you know. One day it's awesome. Breakout goes 400. Next day the breakout flushes. It loses 50% of its gains whatever.

00:56:29.970 --> 00:56:48.399
Colby Warshel: And I was thinking about how cool it is that my system now kind of the in my system. There's a way to know if the market's going to be choppy or not, and, like Tom, came into our disk, my discord today, and he was like, should we buy this breakout on the spy, and I was looking at my system, and I was like, well, according to what I have here, it's

00:56:48.470 --> 00:56:57.689
Colby Warshel: if 3 out of 3 internals are trending together. Then it's good. If they're not, it's usually gonna be choppy. And there's different ways of analyzing that. And I told Tom I was like.

00:56:57.779 --> 00:57:27.059
Colby Warshel: According to what I have in front of me, the market may break out, but it's probably going to be choppy and not be very good either way. So there's no point even trying to trade. Because if you're not gonna trade a scenario where you are absolutely sure that at least something good can happen? Why would you even trade it if I'm pretty sure that it's going to be choppy and nothing's gonna be good. Well, my entry could be perfect, and my idea could be perfect. But I could still lose, just because the market doesn't have enough volume behind it to go to where I want it to go. So it's like.

00:57:27.670 --> 00:57:29.399
Colby Warshel: it's really cool, because

00:57:29.690 --> 00:57:44.479
Colby Warshel: I'm not making decisions anymore based off of anything other than things that I've studied to be true or not true, and whenever I make a mistake it doesn't feel like I'm personally making mistake. It feels like my system is flawed slightly and like there's that one quote by like.

00:57:45.409 --> 00:57:47.449
Colby Warshel: What's his name?

00:57:47.800 --> 00:57:53.639
Colby Warshel: The Duke who wrote market wizards, Marty Schwartz, or whatever his name is. it was something like

00:57:53.989 --> 00:58:07.900
Colby Warshel: you. Fall to the limits of your system, not to the limits of your ability to perform. So the amount of money you make as related to how good your strategy is, it's not related to how good you are as a human

00:58:07.949 --> 00:58:15.389
Colby Warshel: like. If you don't have a strategy that's good enough to make a million dollars. You're not going to make a million dollars. Your strategy might just be subpar, you know.

00:58:15.909 --> 00:58:32.579
Colby Warshel: and that's something that I think that most most younger traders don't ever think of shit like that because it's so hard to start. But these guys that I've been talking to they were describing how they started, and it was really cool, because it's literally the exact. Same way I started, you start with a sentence that's a very broad rule.

00:58:32.659 --> 00:58:38.539
Colby Warshel: Never go long below. Vap never go short above vw. Very simple rule.

00:58:39.000 --> 00:58:49.979
Colby Warshel: Do that for a month whatever, and then start adding and subtracting things to that sentence. Never go long below Vw. And short, whenever the 9 ema gets touched

00:58:50.579 --> 00:59:02.860
Colby Warshel: short whenever there's a new 5 min high and a downtrend whatever. And you just keep adding to that sentence until eventually, you can basically delete like 90% of any intra day price action. Because, as we know as traders, the whole.

00:59:03.900 --> 00:59:13.469
Colby Warshel: the whole thing of trading is, we're literally making a 50 50. Guess at any moment we go an up or down period. and the hardest part of trading is there's so many chances for you to make that guess.

00:59:13.520 --> 00:59:31.739
Colby Warshel: But if you can delete like 90% of the price action by creating a system that tells you trade whenever these 5 things happen that immediately is already going to give you a more edge than the average human being, because the average human being is just like, Oh, we're up on the day we're up one. I'm going along at the open. My stop is at low of day, and I hope we go.

00:59:31.840 --> 00:59:39.279
Colby Warshel: That's the that's the whole strategy. That's not gonna work, because that's way too broad. You need to have like multiple factors leaning into that. So

00:59:40.020 --> 00:59:46.179
Colby Warshel: if you're a beginner and you're listening to this. Please start that as soon as you can, especially if you're trading

00:59:46.340 --> 00:59:51.529
Colby Warshel: large caps or futures, because that's absolutely required. I don't know about small caps, but

00:59:52.680 --> 01:00:09.289
Danny Camozzo: I think it's required to, with small caps. I think that it's more crucial with large caps, because there's not. I mean there's some level of of intuition and feeling. With all trading, but especially with large caps. They respect levels and trends so

01:00:09.390 --> 01:00:22.259
Danny Camozzo: so much stronger than small caps, which are highly manipulated, and anybody that sends a 50 or 100,000 share order that's gonna have a huge effect on the price. And some big trader can just do that when they feel like it. But

01:00:22.310 --> 01:00:38.689
Danny Camozzo: your quote reminded me, and it made me look up. From James. Clear lance arm Lance Breitstine's favorite book atomic habits. The quote is, you don't. You do not rise to the level of your goals. You fall to the level of your systems.

01:00:38.930 --> 01:00:45.289
Danny Camozzo: Same thing, said basically just different author of the same idea. But I mean.

01:00:45.550 --> 01:00:49.829
Danny Camozzo: it's totally true, and goes back even to what I was saying towards the beginning, about

01:00:49.900 --> 01:00:52.970
Danny Camozzo: writing out my system and my strategy, and

01:00:53.010 --> 01:00:57.909
Danny Camozzo: and everything about how I trade last year. And

01:00:57.949 --> 01:01:03.239
Danny Camozzo: I don't know if it's directly related to me having a really really good year this year, but

01:01:04.310 --> 01:01:06.628
Danny Camozzo: has the right idea. At least

01:01:09.940 --> 01:01:31.640
Alexander Winkler: I like that, Colby. I think it applies to many things in life, you know. Have a system, have a routine, have a, you know, have a strategy. Bad strategy is better. No strategy cause, at least you know what to fix, you know, and I like that part also that it keeps you away from being emotional towards yourself. You're like, oh, you're not beating yourself up because you did some impulsive decision.

01:01:31.670 --> 01:01:44.759
Alexander Winkler: You you're able to see it from a kind of a bird's eye view, like kind of detach yourself from yourself. And II think that's so important with training. Because once you get on tilt, man, it's over.

01:01:44.800 --> 01:02:07.338
Alexander Winkler: And I've I've definitely, you know, this this crap, crappy market that we're in right now. It's you know you do a few big trades and a a row, and you're red. And you see, you see, Red, and for me, I've been kind of applying that by limiting my exposure to the market just trying to close to us. When I think I'm done, and then I'll I'll come back. If people are saying something's hot, and then try to, you know. Jump on it quick.

01:02:07.420 --> 01:02:19.750
Alexander Winkler: But yeah, exposure is is for me, it's really bad. But yeah, I have my system in place. I always outline all my things. And I think that's that's really important. I try to have a system with with everything I do. I think that's fundamental, you know.

01:02:21.329 --> 01:02:28.389
Danny Camozzo: having noticed different results since a couple of weeks ago or since you started implementing that.

01:02:28.829 --> 01:02:48.029
Colby Warshel: Yeah, I don't really like even thinking about saying anything about my results until it's like 3 months have passed, just because I every single time I say anything good about anything I'm doing trading, I completely fuck it up the very next second, so I don't even I've had. I've been for a month like

01:02:49.350 --> 01:02:59.519
Colby Warshel: my stats are good. They're within my expectations. All this stuff, you know. I'm definitely happy with where I'm at. But the thing that is extremely

01:02:59.869 --> 01:03:04.220
Colby Warshel: interesting to me is the fact that I feel so much less

01:03:04.409 --> 01:03:32.469
Colby Warshel: like. It's my fault, which is just so cool because I just I mean, it's like a man like how fucking mad is. Can you pause like I've never been more angry at anything in the whole fucking world in my entire life until I go long and I get stopped out at the bottom, and it goes up 100 points like that is the number one that is like, if there's one thing that can absolutely into a fucking, just, I'm going to kill everything. It's that.

01:03:32.619 --> 01:03:45.449
Colby Warshel: Amen. But now, yeah, exactly. But now with the system like, I don't do that first of all. But if I did do something like that, and it was within my system. It's not my fault.

01:03:45.520 --> 01:03:49.789
Colby Warshel: because the system literally said, this is a potential area where we may

01:03:50.400 --> 01:04:04.050
Colby Warshel: do something like that. And whatever. And I'm I mean. Of course, I can still get stopped out at the highs and do all those kinds of things. But on a general trade to trade basis, the amount of it's like just lowering the occurrence of tilt and the occurrence of

01:04:04.050 --> 01:04:28.269
Colby Warshel: me. Seeing this, the problem is me rather than the system, and it's cool, too, because then, when the day's over, if you lose and you're like, well, it wasn't me. It was the system you wanna work on the system. So I go into my system. And I'm like, here's here's an implement. Here's a solution. I can implement tomorrow. That might make this system 1% better. And you just keep doing that every single day. And then eventually, you have this extremely robust system that you've built over years

01:04:28.329 --> 01:04:29.500
Colby Warshel: of trading.

01:04:29.610 --> 01:04:49.829
Colby Warshel: and and it works just way better, and it it fixes every psychological issue. You cannot. I don't give a fuck if you are Buddha reincarnated. If you don't have edge or a strategy. You are not making a dollar in the stock market ever. I don't give a shit. Okay, there's that's just a fact of nature. And for people to say that

01:04:49.920 --> 01:04:55.500
Colby Warshel: right when you start trading, all you need to like start working on your psychology. No, the fuck you don't. You're gonna be tilted.

01:04:55.600 --> 01:05:08.510
Colby Warshel: You're 5, you're gonna be tilted. You're 10. It's not gonna go away. You're still gonna get bottom ticked and top ticked, and it's gonna piss you off. But if you have a strategy, at least you have something to work on, and something to blame rather than yourself.

01:05:08.579 --> 01:05:13.208
Colby Warshel: because you can't sit and meditate all day and expect to get better at trading. That's just not gonna work.

01:05:13.550 --> 01:05:18.579
Danny Camozzo: I think there's a lot to be said for that, and especially trading small caps

01:05:18.590 --> 01:05:26.770
Danny Camozzo: with a loose system. Sometimes it can be really easy to blame yourself for

01:05:26.920 --> 01:05:36.819
Danny Camozzo: taking the wrong trade, or, like Matt, as example, buying the engulfing bearish candle and that kind of stuff, and

01:05:36.869 --> 01:05:50.250
Danny Camozzo: like, I think, that there is monetary value, and gains and returns in just having that sense of calm behind you in your trading, or when you're executing trades versus.

01:05:50.300 --> 01:05:55.009
Danny Camozzo: just like an underlying feeling of stress and frustration

01:05:55.560 --> 01:06:04.529
Danny Camozzo: which is just not a good place to trade from. It's kind of funny, but probably true. Scared money don't make money.

01:06:05.250 --> 01:06:11.180
Alexander Winkler: Yeah, definitely true. That's so true that, like.

01:06:11.300 --> 01:06:20.340
Alexander Winkler: is it you? The the perfect move happens you're too scared to trade it. Then it happens, and you, Fomo, and then you then you extra lose money. Yeah.

01:06:20.520 --> 01:06:42.128
Tommy Salerno: you know, I'm drawing a lot of parallels right now, from what Kobe said, because, like, that's exactly my problem, like, I don't have a clear cut system. So every time I have a bad day. I blame it on myself, and then I just beat beat up my confidence, and then I it prohibits me from taking any size, and because I can't define a a good setup. I can't define

01:06:42.150 --> 01:06:47.338
Tommy Salerno: where you know the proper entry is the proper exit other than hindsight.

01:06:47.369 --> 01:06:55.420
Tommy Salerno: So just having that system, I think is gonna help me move forward. So thank you, Colby, for for saying that cause that's what I'm working on.

01:06:55.460 --> 01:06:56.739
Colby Warshel: Yeah.

01:06:58.050 --> 01:07:07.840
Danny Camozzo: course. One thing that was really helpful for me earlier this year that II think I've been doing well this year is trading the actual chart and the chart pattern, and what I think

01:07:07.880 --> 01:07:12.729
Danny Camozzo: can play out. and you know I have an idea in my head or a vision in my head

01:07:12.779 --> 01:07:18.199
Danny Camozzo: of what I think can play out. But I'm always trading what is actually happening. But

01:07:18.750 --> 01:07:21.469
Danny Camozzo: Taking my entries based on

01:07:21.860 --> 01:07:34.650
Danny Camozzo: if it dips here, does the chart still look good, especially if it reclaims or bounces from that dip? Or would I be buying an an area that looks like maybe a bad place to buy at that point.

01:07:34.840 --> 01:07:36.050
Danny Camozzo: and

01:07:36.350 --> 01:07:47.729
Danny Camozzo: taking my trades based on that kind of idea, and actually creating the chart pattern rather than arbitrary. 5 10 cents here, there, I think, has been a really helpful point for me.

01:07:48.289 --> 01:08:08.039
Alexander Winkler: That's how I trade, too. II feel like what I trade. II trade like what people talk about with chess, where you try to think like couple of moves ahead. And ultimately I am visualizing what I would like to see in the chart. Happen. If it doesn't happen. Then I'm like, I'm not aligning with this ticker. I'm gonna ease off. And when it does happen, I'm like I'm in the flow with this ticker

01:08:08.039 --> 01:08:22.930
Alexander Winkler: start sizing. I still might do poor execution. But that's typically how I go about thinking about a ticker at any given time. So I'm always even like a pull back. I'll be like, okay. Last, you know, couple of pull backs. We're all like 15%. So

01:08:22.940 --> 01:08:34.890
Alexander Winkler: and then I'll you know, draw out lines, or I'll have a game plan. And then I'm like, exactly like Danny said, does this actually, now that the pull back happen? Are the different time frames aligning still, or is it now? Not in play anymore?

01:08:35.000 --> 01:08:36.010
Alexander Winkler: And then, just.

01:08:36.199 --> 01:08:47.380
Alexander Winkler: you know, kind of seeing. If I'm I'm correct in terms of how I'm thinking about this ticker. And if I'm totally out of a flow on a ticker and I keep getting my visualization wrong, I typically still don't trade those tickers.

01:08:47.400 --> 01:09:06.189
Alexander Winkler: and and that's where I can make mistakes if I start, you know, trading emotionally or getting on tilt, because I'll stop doing that. I'll I'll sometimes do an insanely good visualization, and I'll be up like a thousand bucks, and then I'll get bored or emotional or distract. And I do random trading, and that's often where I get back most of my profit.

01:09:07.239 --> 01:09:14.020
Tommy Salerno: Yeah, yeah, that's the worst.

01:09:14.289 --> 01:09:34.210
Tommy Salerno: And and that's the problem with beginners is like again, if anyone's beginner watching us. The worst thing you could do the worst thing you could do is just kinda just show up every day mindlessly trade, and then just shut down the computer and be done for the day. Come back tomorrow. That's the worst thing you can do in the beginning. Yeah, you have to be so intentional.

01:09:34.310 --> 01:09:39.970
Tommy Salerno: When you first start, and that's what something I wish I did when I first started, as being more intentional

01:09:40.220 --> 01:09:44.748
Tommy Salerno: with my with my strategy, like, more intentional, with also with

01:09:44.760 --> 01:10:10.588
Tommy Salerno: just learning, after hours, or pre market, like studying my trades being more intentional. Where exactly should the entry be? The exit be the level to the news catalyst like logging all that data. And that's something I wish I would have done like when I first began, because when I first began. I kinda just showed up every day kinda just mindlessly traded, and hopefully I was green and not blow up

01:10:10.720 --> 01:10:14.980
Tommy Salerno: and then it took me a while to really start to put in some intention in my studies.

01:10:15.960 --> 01:10:16.810
Alexander Winkler: Umhm.

01:10:17.119 --> 01:10:24.180
Colby Warshel: yeah. So dangerous man to just trade. And just think that reps is gonna make you better.

01:10:24.380 --> 01:10:26.109
Tommy Salerno: Just so. Not true.

01:10:26.409 --> 01:10:47.850
Alexander Winkler: I was thinking that, too. Yeah. And the intent, yeah, you know, in the beginning said, like, it's better if you just show like, do one trade a day when you're new and understand what you're trading. And at first I was like, but you know you gotta get your reps in. But ultimately, what he's telling you to do is have a game plan, and you wait for that setup. And that's that's really where the value is because you're

01:10:47.869 --> 01:11:01.930
Alexander Winkler: you're not just okay. I wouldn't do one random trade a day. It's more like, Okay, I have a system. You gotta first make that system, and then you gotta wait till that thing happens, and then you you get in. You get out before you get emotional start doing stupid stuff for the next 3 h.

01:11:01.980 --> 01:11:19.270
Danny Camozzo: Then you can actually learn from it when you're only taking like one to 5 trades. You really get to study each of them, and you can even have full on recordings of each of them. And it's only 5 trades to watch through again, like maybe 25 min worth of content.

01:11:19.520 --> 01:11:31.918
Danny Camozzo: It makes it a lot easier to add, like, I would think, exponentially speed up your learning process and growth process. And it's not at all what I did at the beginning, which? Why, it probably took a long time to figure it out. But

01:11:32.119 --> 01:11:44.729
Alexander Winkler: yeah, no one's gonna watch 2 h of screen recording. But yeah, if it's like, it's a 15 min, and you could even maybe cut it down. More than that. And then you just kind of Re, analyze it. And then you maybe analyze the whole chart, the Daily new, the News. And you think the float.

01:11:44.890 --> 01:12:12.708
Colby Warshel: Yeah, that's that's the way to go for sure, just like collecting objective data like that. Shit is extremely important. Like, obviously, whenever we're trading, we, we kind of intuitively know, like, okay, well, we're above yesterday's high. We're breaking out in the pre market. We have new highs of day coming in every 5 min, you know, Xyz, these things, but you should. Whenever you're starting out, you really should be listing every single one of those things. So you're just noticing that every time, like the spy.

01:12:12.739 --> 01:12:25.710
Colby Warshel: if you trade spy at all. It's never gonna have a good green day. If we're stuck in the previous day's range. If we're stuck between yesterday's daily candle, it's not gonna go anywhere. We have to break out of something before we can get any room to go anywhere. And there's just like.

01:12:25.710 --> 01:12:46.309
Colby Warshel: you know, when you're trading, you kind of have to separate the 2 versions of yourself. One person wants to make money, which is the gambler, and one person wants to be a systematic trader. And if you're you can either be a gambler or you can be like a data analyst. And the data analyst is gonna be making money, because the system tells gives them objective information, and the gambler will just be like

01:12:46.340 --> 01:12:52.349
Colby Warshel: breakout. Go, you know, and they just want to get long because we're breaking out, you know. So

01:12:53.690 --> 01:13:09.429
Alexander Winkler: Steven Dux is probably one of the best traders when it comes to analyzing at least one of the more popular once that we know public traders. But yeah, he's he's really good at kind of analyzing the stocks, thinking about how much each one pulls back, etcetera.

01:13:10.270 --> 01:13:20.899
Alexander Winkler: Since we're going over a little bit here on time, I think we could probably leave the game plans, because I think we kind of already know what what the game plans are. We've kind of discussed it here and

01:13:21.270 --> 01:13:29.690
Alexander Winkler: we'll we'll focus on gay plans next week. Nothing really has changed that much, anyway. So any any final thoughts. Anyone wants to leave the pod with.

01:13:31.270 --> 01:13:43.038
Colby Warshel: Yeah, if you, if you, if you want to follow my daily report cards. I'm going to be posting them in a trade journal on under my try a trading portfolio.

01:13:43.300 --> 01:13:50.548
Tommy Salerno: So you guys can watch that it's actually be public for everyone. Whoever's watching just gotta sign up and you can

01:13:50.619 --> 01:13:54.630
Tommy Salerno: keep track of my daily report cards every day. If you wanted to take a look at what I was doing.

01:13:55.070 --> 01:14:03.418
Alexander Winkler: Oh, yeah, that's that's huge. I'll I think your profiles posted below this video. But I'll double check. Make sure everyone's profiles plus below.

01:14:03.550 --> 01:14:05.320
Colby Warshel: I'll also post mine.

01:14:06.520 --> 01:14:08.130
Colby Warshel: I'll look at yours, too, Tom.

01:14:08.600 --> 01:14:11.500
Colby Warshel: I still make them everyday. I just don't really post them. But yeah.

01:14:12.170 --> 01:14:14.500
Alexander Winkler: yeah, alright guys.

01:14:14.640 --> 01:14:22.128
Tommy Salerno: great great pod covered some topics. Yeah, this time.

01:14:22.300 --> 01:14:24.810
Colby Warshel: So take care. Everyone make it easy. Touch out.

01:14:28.930 --> 01:14:30.670
Alexander Winkler: Oh, I'm up here, too.

"The WORST Thing You Can Do As A Beginner Trader..." [Systemized Trading] #E38

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