All language subtitles for 1. Videumdois

things in life, you can
consistently improve your skill

getting better. So, this is why
we focus on process-based goals

your performance but that does
not mean that you are not

the market will allow you to
see you directly reflect that

on how much money or maybe how
much percentage you are making

and that is not how you should
be measuring it. You know, most

set each month but it won't
necessarily be reflected in

that as your fire because you
can be constantly improving

going you have to reflect on
how far you have come since

month on month but that doesn't
necessarily mean that trading

we're dealing with the random
environment of the market so

last month over the years and
keep that as your fuel and keep

but we know that it's not
really that simple and it's not

much profit as last month then
it's all about the mindset of

looking at the momentum you are
getting you know keep that

better but you just haven't
finished this month with as

that is not how you measure
your progression you have to be

fair for you to be judged on
that either why because it's

especially in the short and
even the medium term because

just simply not an accurate
measure of your progression

know they know that you're
trading and I'll ask you

the most obvious metric to
measure progression by right

just because you getting better
you know your mindset is

getting better you know your
technical analysis is getting

dance. So try not to fall into
that trap. Cos I know how it

they just don't understand it
and to be fair to them it's not

their fault because profit and
loss seems to be pretty much

questions like well how how
much did you make this half

probabilities, they play much
more of a role in when you're

is. Maybe you've got your
friends and your family. You

yourself and probably to prove
to others that you are making

mindset and we know that that
month to month PNL then that is

behind that is that you're
probably going to start taking

bring that into the management
of your next trade. Now over

previous month to prove to
yourself that you are

it's irrelevant. We are working
with a random distribution

you've been working really hard
and putting in the work for a

percent and it can be really
frustrating at times because

risks in order to try and beat
that previous month to prove to

you can devise a clear plan of
action on how to overcome it.

you kind of you know learn
something from from a previous

quite a few times but it's
really kind of only when you

long-term performance. Now, I
can absolutely guarantee you

to dig deeper into and figure
out if your plan may actually

can you begin to put the right
solutions in place. So, this is

to your plan and it will be
much easier to isolate and

progression that constant
growth and that constant

ever is that you want to
constantly feel that growth and

seems to be a little bit too
tight so now you have something

this affects a lot of traders
and it used to catch me out all

mindset and the psychology of
you know how do you deal with

just come off your biggest
month and then there's not a

specific steps that I can take
to become a better trader? You

errors that you are making
potentially such as

that. Once you find the root
cause of any issue, only then

only when you start to get to
that monthly level of reviewing

You know, you only get better
this game by one way and that

is the issue, you will see the
biggest improvement in your

and this is a textbook example
of recency bias so let's say

individual trade a lot of
traders will take the outcome

of the time because the mindset
of having your biggest month

get to the courty level when
you review your previous

have to persevere in a way that
is conducive to you improving

strategy and also your own
human performance and adherence

they'll take that over into the
next few trades that they take

just by a few pips before and
then actually reverses and it

galaringly obvious part of your
strategy can be improved. Then,

quarter that is where you can
start to make serious

know rubbish setups when you
should be cutting them out. Now

success. Obviously, the bigger
the sample size of data you

early for example or things
like that or they could be

trade then you instantly and
and straight away you know

progression. But this is the
hamster wheel of the break even

need adjusting as it seems to
be something that is happening

that includes trading. If you
are an ambitious person and if

how you're going to measure
your improvement. You're

identify what's holding you
back, you know, what

areas is causing the issue or
has the biggest room for

everything after each quarter
to see which one of these three

of that individual trade into
their decision making process

they have tested over a larger
sample size of trades. So if

draw from it. So, when you
record, and review an

need a refresher on
probabilities in trading. Now

understand your strategy. So
this is why we perform

looking at your results on that
time frame. So, here's a little

review, the more significant
the conclusions that you can

only other final option is that
you just simply do not yet

why in-depth journaling is
really vital to your ongoing

really three things that can be
happening. You're either

emotional involvement and
distress on those short term

going to have a negative
emotional effect when you've

basis but I only evaluate my
results every quarter. So, that

potentially you may have missed
way too many trades so you're

pretty you know short sighted
but it will help to remove any

your performance on a courty
basis and that can still be

month of data across let's say
five trades would you then use

swings. Just remember if you
are in it for the long run then

not seeing your true edge play
out because you've missed some

going to incentivize you
probably to take unnecessary

winning trade. Now, you need to
be super, super, super careful

the long run. Just like the
trade-by-trade reaction, our

is typically just focusing on
your PNL right so it's the

if you are kind of still
consistent taking those you

thought exercise that I'd like
you to try for a second now to

opportunities in the market but
there are a lot of average

better human intuition is to
measure your improvement and

breaking your rules and you're
not sticking religiously to

significant conclusion from so
don't do the aim from your own

results it can be a bit tricky
here's why let's say that

trades that you shouldn't
because you want to beat that

progress when you are learning
purely from your PNL, it is

growth by the physical results
so with trading you know that

your true long-term
performance. That's why hedge

profitable trades. Now, the
third scenario, this is when

slightly slower maybe there are
not really that many great

the big picture instead of
monthly performance swings

month-to-month performance, it
can really dictate a huge part

long time and then you've just
had your biggest ever monthly

result happy days you are
seeing your hard work and your

constantly evolving that you
are actually getting better and

doesn't necessarily directly
reflect in your PNL if you your

evolution then measuring your
progression with trading

even aspire to be a full-time
trader and you will need a

funds and investment firms,
they will rarely publish

that evolution right? But if
you still have that employee

going to replace the words
investment funds and traders

lot of opportunities to take
the next month. And the mindset

do at each level. What am I
doing well? What am I doing

opportunities that can catch
you out and really start to

they can be an inaccurate
representation of your true

the fast-paced nature of the
trading style. Now, naturally,

performance per month, it can
give the wrong impression of

the fact that you are
constantly improving but yet it

annual cycles and they are
fixated on the long-term

this is where you can make the
biggest improvements in your

market moves suggests that the
most reliable measurement is at

financial obligations and also
the salaried employee mindset

bring your results down you
know over a long period of time

you have a growth you are
seeking that constant

one way is self analysis.
Reviewing everything that you

data so over three months to
draw conclusions from. Now,

considerations if your trade
plan is adjusting and tweaking

psychological blockages you may
have or potentially what

side they can be sometimes hard
to differentiate from the

badly? What are my major
weaknesses? What are the

monthly form of income to live
off we are programmed to

it's just a trade that falls
into the second category where

which trades you really need to
dig into you know to look for

business mindset which thinks
in and reports in quarterly and

because now you have a a much
more significant sample size of

when you perform your annual
review at the end of the year,

significant monthly gains and
therefore allows for the

why would you get emotionally
involved with short term

often say oh I made ten R this
month or I had a five hour

at the weekly level when you
review the entire previous week

and figure out where you went
wrong because this is just

sample size of data to draw
anything near a statistically

even five-year performance
because their approach to the

be explicitly honest with
yourself here because when you

wasn't actually valid you just
got lucky and luck is not how

with business and employee
because you may be or maybe

for this are quite our trading
style it allows us to make

know what potentially maybe
affecting your results and

cycles and it really gives you
that short-term horizon but you

the long run that's just
going to be a recipe for

which you know, market
conditions and simple

moves back in your favor then
you know that you just stop

per period of time that does
give us a better understanding

following your plan to the T
and also looking to see if you

long-term growth and returns
and in most of those types of

trades these fourth type of
trades they are usually a

and higher then can you begin
to look for any patterns that

you are simply looking to see
if you made any mistakes by not

know, build a new sort of plan
around that and go and test

your tried and tested and
proven trade plan or

disaster. Because remember the
outcome on an individual trade

need to develop a traders
mindset which is essentially a

have a section in your journal
that states whether a trade is

on that in terms of how the
strategy performs no of course

our and loss and our drawdown.
Now these metrics are often

adapt your rules to the to fit
that last trade and then you

the pace of their activities
and the pace at which the

monthly results because their
focus is quarterly, six-month,

obviously focused on short-term
gains but long-term compound

non-executing trades or maybe
you keep cutting trades too

drawdown last month. They're
all pretty you know common

executing and analyzing with
consistency. So, as long as you

of our emotional state.
Individual monthly results,

qualitative analysis when we
journal and when we review

followed your plan perfectly
but let's say let's say that

monthly or you know, even
sometimes a weekly basis due to

you know maybe you managed it
wrong or or anything like that

growth. So, a day trader wishes
to know how they perform on a

we didn't you know perfectly
perform all of the rules within

performance is just simply not
relevant if you're in it for

long-term performance. Now, I
measure my results on a monthly

incorporates both the
quantitative and the

improvement. Now, if you can
isolate which of these elements

that data to make any sort of
judgement or base any decision

patterns in the actual strategy
that actually may you have

missed any trades that actually
are a part of your plan because

negative return for a quarter
then generally there are only

in the world of investing, the
focus is generally always on

process which we'll take a look
at in the next lesson I would

market is long term and they do
not engage in day trading. So,

underneath called setups and
what you can do is you you can

we look at the steps of the
journaling process in depth in

that you review a trade and you
see that if you hadn't managed

next trade instead of sticking
to their management rules that

expressed against a period of
time. You know people will

model. So you know watch the
trading and edge module if you

the majority of us here in
Photon, we will be monitoring

least a minimum of a one-year
time frame. Now, on the other

don't work. So these in my
opinion are kind of the only

that new plan to actually see
if it holds up over a large

it slightly differently you
could have made an extra fiveR

funds, they will only focus on
the year-on-year or you know,

but then what a lot of traders
do is then they go into their

means that my focus is on the
quarterly results and you're

those really clear rules in
your trade plan and these

next trade and they try to
manage it that way right in the

execution so when you analyze a
trade you will usually see that

the topic of how to measure
your progression now there are

that employee mindset, it just
forces you to think in monthly

the next lesson I just want to
end this lesson by discussing

it was a lot but it you know it
actually was valid and then you

actually valid so this is where
you know you you need to have

don't need to worry about over
analyzing it to potentially try

countless ways to measure the
performance of a trader and the

results. It's just irrational.
Now if you do happen to get a

implement some you know
practical solutions to try and

estimate future performance.
However the time frames over

sample size of trades but for
the most part you know you must

conscious of what an ideal
setup actually looks like and

reasons potentially why you
took that loss there or maybe

individual monthly results.
Zoom out and even measuring

it doesn't meet all of the
criteria of your trade plan or

trades that you should really
try to learn from on the losing

fourth type of trade are those
which are not valid and they

our trading performance on a
monthly basis. Now, the reasons

progression naturally paying
off but then the next month is

well it performs and you only
tested the strategy on just one

which performance is measured
and expressed varies greatly. A

horizons. So, measuring and
expressing your trade

you wouldn't because it's
nowhere near a big enough

and annual results. The reason
for this is that monthly

your plan okay so they are the
four types of trades that every

time. You know, almost nothing
in the real world is linear and

most sort of obvious metrics to
judge our performance by our

after every single trading
session. So, you're just

as a trader, not just simply
doing the same thing all the

make it as seamless as possible
because remember this entire

phrases right? And there's
absolutely nothing inherently

wrong with that. You know
expressing performance metrics

actually valid or not and this
will really help you to see you

translate income to monthly
payments because of our

that rapid growth now I've
built you a trade journal you

monthly measurement of
performance now I'm just

you remain consistently
profitable in trading now the

side of the spectrum, there is,
you know, the day trader who's

result of a fundamental problem
in your analysis or your

trades is that any trade will
generally always fall into one

be constantly looking at and
just burning them into your

trade you take will fit under
but just make sure that you

you notice that you got stopped
out of a lot more trades maybe

realize that you know if you
took a winning trade but it

this particular setup playout a
lot, you know that at the

of how past performance came to
existence and it helps to

trade you know how you entered
it where you place your stop

major difference can be seen in
how investors measure their

may be forming so these
patterns could be psychological

happen to get lucky. Now, of
course, if you start to notice

second type of trade where it
was a losing trade but it was

now have developed a new edge,
so of course then you can, you

performance and how traders
measure their performance. Now,

people find this really really
hard to do but it's how you get

moment, it doesn't currently
meet your rules, then you may

where the probabilities of your
edge are playing out now before

your trade plan rules so these
are the trades that you want to

know for your trading
dashboards on notion that

of these because most of the
time, you know, these are

qualitative side of your
journaling you know so you have

time right we understand the
process side of our business is

usually trades that are not
within your plan but you just

can to do that, you'll be one
step closer to your next run of

like play right now we'll go
through those processes in the

because of the proper ballistic
nature of trading. So, these

winning trades that are
obviously you know valid with

then just noting any of the key
lessons that you took away from

be in your trade plan section
right on your notion dashboard

winners that should be part of
your probability model or the

you take a trade that does not
meet all of the minimum

future. Really you can only do
that if you do the work and you

criteria of your plan but it
happens to work out and it's a

minimum criteria on your plan
but it just didn't work out

think about let's say you are
testing a strategy to see how

you can write all of these
emotions out what you're

put tons of examples in there
of your high probability

where the refinement comes in.
So in order to fully understand

losing trade. So, this is a
trade that meets all of your

consider when you are
journaling and reviewing your

it is also a winning trade
these are great trades now once

are the losses that you want to
celebrate because you are

help you prevent kind of you
know your self sabotage in the

to perform your journaling
process but something to

a trade your trading routine
but very importantly it's about

are looking for ways that you
could improve the trade or

start tracking that you know
now as you're trading and as

that as much as possible by
trying to make that work feel

next lesson and I'll show you
exactly how to use it and how

constantly looking at them.
Now, the second scenario is

where you take a valid trade
but it just happens to be a

also save a copy of that trade
review in another folder it may

if you have a look on there
there will be a folder

you're going along. So the
qualitative side you know it

of these four scenarios now the
first scenario is a trade that

extremely important but we need
to try and kind of adhere to

you want to be looking at these
you know before, during, and

you know, again, that's okay
because you can actually take

you have journal these trades
you know following your usual

that all in one solution in one
place just to kind of try and

is a valid trade it meets all
of your trading plan rules and

your emotions getting involved
and then you can start to

explicitly honest with yourself
which in reality you know most

feeling maybe if you felt the
urge to cut the trade early or

really give you an amazing
insight into actually how your

know why you did that and the
emotions that you felt and then

so when you're in when you're
in the trade you know you can

keeping yourself honest. You
have to be ruthlessly and

definitely takes a bit more
work because it's all about

different elements of your
trade so of course both the

when you look back over your
trades you know this will

between your performance and
the actual strategy performance

self review. And this is really
you know it's about looking at

identifying where potentially
you have made some mistakes and

maybe it's just you that's
actually under performing the

that specific trade once you've
reviewed it now what you can

loss how you managed it right
everything that's involved in

performance because once you do
that that's when you can then

the trade and during the trade
when you are managing it right

also do is you can track your
emotions when you are executing

will follow. So you need to be
measuring your own personal

actual strategy because maybe
you've made mistakes executing

surely be to stop executing
that strategy altogether right

the actual execution and
management of the trade but you

go back in and objectively see
what is happening you know from

maybe if you did cut the trade
early you know write in you

emotions may be affecting your
edge and your overall

you'll store the screenshots of
all of your trades after you

have executed them or you know
you can take screenshots just

is what we the qualitative
analysis which essentially is

higher time frame analysis the
meeting time frame and then

the strategy perform really
well but if that's the case,

the story behind the numbers
that the you know the

spreadsheet spits out to you
you need to actually look at

identify what is going on
behind those numbers. So this

that is where you figure out
how to improve and that is

sure that you are executing
correctly and then the results

know to dig deep into your
trades and you're looking for

performance discrepancy against
the actual strategy

performance. And by looking at
that gap at that difference

then afterwards you will write
down and you will describe the

some confidence from that
because you've now figured out

work but you just need to make
a few little tweaks to make

your trades and really you know
deep dive into that and try and

your lower time frame execution
the reasons why you took the

a certain point if it continues
to show poor numbers in the

any common patterns that keep
occurring again and again so

before you're executing them as
well if you wish to do so but

your trades, you don't really
know the full picture because

just where you're taking more
of a descriptive approach you

the issue that you know,
actually your strategy does

winners that week or that month
that actually would have made

it or maybe you've just missed
a lot of setups that were

or you know at least pause it
until you figure out you know

already but a lot of people do
not take their journaling any

how you can improve first but
unless you actually look at

trade journal let's say that
it's telling you that one of

journal the the obvious and the
logical thing to do would

are also some automated
softwares that can do this for

you too now this is a great
start if you're doing this

further than this step and the
problem with that is when you

right so generally you would
download your trading account

statement from your broker and
you would record all of your

just those those sort of key
numerical metrics like that

rarely paints the full picture
of what is actually going on

essentially being the
accountant for your trading

Microsoft Excel or Google
Sheets for example and there

trading data in a spreadsheet
application you know like

your setups is performing
really poorly right well after

kind of get all of numbers you
know spat out the data it very

with your trading because
imagine that your spreadsheet

average winner your profit
expectancy and you know there's

of your results because as the
famous saying business goes

ultimately a zero-sum game. You
should constantly confront your

know, over the rest of your
competition in what is

there's a quantitative side and
then the qualitative side so

the quantitative process of
journaling your trades is just

what gets measured gets managed
the most valuable information

your PNL your strike rate the
size of your average loss

business so you are crunching
the numbers you're checking

really there are two main
aspects to journaling so

the process of recording and
reviewing your trades and

about your trading is your
trading so again journaling is

performance head on and that
starts with the post analysis

automatically giving yourself a
massive edge over them, you

Digging through your journal is
the work that other traders,

not just stagnating or worse,
you know, even going backwards.

they're just not doing. So, if
you do do it, you are

your losses you know
particularly early on in your

generally where the easiest and
the biggest gaps for

that they have taken is because
they want to disassociate

constant evolution and
progression and this process

leaps forward. As professional
traders, we are seeking

improvement are where you can
kind of make those big quantum

themselves to avoid the pain of
their losses. But reviewing

will help to make sure that we
are on that path and that we're

journey that is where the
growth lies. And that's

chanting every weekend because
the sad reality is, is that

their own trading. People don't
want know the stats. They just

deep psychological reason that
most people won't collect

cold hard facts. They don't
analyse and review the trades

based on faith and to not
actually be confronted with

there are very few traders who
actually know the truth about

performance metrics. Because
people want to believe just

want to gamble and they just
want to win big. But there is a

pretty much the first sign of a
punter who's just aimlessly

Now, journaling is pretty
simply just a process of

not digging your head into the
sand because I've given up

recording and reviewing your
trades. Now, make sure you're

track their edge meticulously.
Not journaling your trades is

being shocked at how many
traders I chat with that do not

and not outcome-based goals,
especially in the short term.