Original subtitles

outcome of the current processes that are in place

makes the difference. So for example, maybe you'll go on

accurate future profit and loss projection to see where that

few modules are going to be on and we're going to get the

crashing down but they also want to get, you know, an

desperately trying to increase your position, you know, up at

within the business. So, that's what the focus of these next

winning when you don't love the game. So, fall in love with the

the market is actually held up by a solid foundation or if

systems of software their intellectual property you know

eventually you end up having to start all the way down at the

it's just hot air and the house of cards is about to come

going to buy up a large share of that company's stock what do

hold it up. So guess what? If you are not building down here,

what it takes to become a better player. The hard part

current profit and loss figures are actually sustainable or

down. Process beats mission. Deciding that you want to be,

going to look under the hood and examine all of the inner

all of the contracts and agreements that they have in

you know, in the hall of fame, that is not the same as

maybe if they've, you know, been produced from a bit of

deciding that you're going to spend every single day doing

that is down here is what makes you, what produces your

business but that's only just one tiny part of it they're

fundamental basics of what trading is, how the market

process and not the end result that you desire. The process is

the top, maybe it might work for a little while in the short

luck and they want to see if that business is positioned in

the future profit and loss of the business, those are both an

processes that are the backbone of your business and they are

following few modules, we're going to focus on applying all

process side of your trading business absolutely nailed

just landing on the wrong side of probability you know

business might be heading because both the current and

you think they would look at of course yes they would initially

know, there's a bit of a common tendency for people to try and

workings of the business right the operational procedures the

maintaining you know a detachment from outcome based

ultimately, that's not going to change your position, right?

maybe you'll watch another 30 videos after that but

systems that are in place, this will give them a much better

to the business? Because if they can see all of the inner

both enter and exit the market. Now, over the course of the

inspect and audit all of that before they commit their money

understanding, a more accurate assessment if whether the

so commonly used by people is because it really is about the

know, how to analyze price action, and finally, how to

an investor was going to invest in a company and they were

term, but ultimately there's nothing solid underneath to

energy down here on the process, then you're just

what actually reinforces that position up there. I think, you

stuff that you do when nobody can see you. And that's what

workings of the business, the processes, the methods, and the

operates, how to manage your risk, how to understand

going to want to look at the full business pattern they're

place and why you know Why would the investor want to

of that knowledge into the process side of running and

position themselves high up here without first building out

bottom again. Now, up until now, you've learned the

operating your trading business. So, those are the

It's everything you do behind the scenes. The work you put

there at the top. So what I want you to think about is if

probabilities, and what trading in edge actually means, you

situation, you know, the position that you see that

Everyone can see their position but not what has put them up

you are not investing your time, your focus and your

look at the headline you know profit and loss figures of that

YouTube and you watch a nice motivational video, you know,

visible is the process that created that position that

results, and it's what gives you your edge over time. So if

reason that that metaphor is is super interesting and you know

expressions of uncertainty instead you are focusing on

edge your strategy edge and then losing only becomes it's

focus on the process. You need to be getting up every single

in, the I was studying, journaling, back testing,

tweaking, refining. The decades of practice of your craft is

the foundation that determines and uphold your position up

relative to you there is no need for excitement or

results. Now, let's talk about the nature of process then and

techniques to regulate them and actively choose not to act upon

there. So it's essentially the iceberg metaphor right? And the

long-term goal. So that you are focusing on the process side of

thinking that is the pursuit of excellence and mastery of your

matters consistent and conscious daily effort whilst

kind of the solid foundation below because all of this stuff

emotions but we just have to observe our emotions and use

your training and not the short-term outcome-based

dejection it's only the management of probability that

are personally in control of now what is you know really

areas that we just went through you may give yourself the best

everything that exists below what you see visible up here.

day and just focusing on ticking off your three daily

craft. That's a very long winded and fancy way of saying,

psychological edge that is needed to drive your method

holds that position up in place. So this down here is

both recording and reviewing our performance and we can then

chance possible of achieving consistency in your results

your performance which you can control and that is the

interesting is that if you achieve consistency in those

which you cannot control because those are simply just

into all of those aspects of our training business that we

isn't visualizing the win at the end. The hard part is

our emotions. We're human. Obviously, it's okay to have

long term strategy the research and development department the

over time because then you are no longer trying to win or lose

a position. We can also control the consistency in regulating

control our consistency in our process processes for trade

aim for consistency in other areas of your trading that you

traders you know constantly focusing and obsessing over the

me would I be happy if they prepared for the trading day

use that feedback to drive further growth and development

outcomes of trades we don't control whether or not we

selection because we follow a systematic framework for

where to trade our stop loss, and even when to manually exit

mechanical criteria for actually entering our trades.

management. You know, we hold the power to choose our

preparation you know we can control the consistency in our

decisions and we also control our consistency in routines for

not. We decide where we place that stop loss. Now, we can

the same way that I just did and that little thought

profit orders, even where to take partial profits, even

training I kind of like to always ask myself that if I

analyzing our charts and of course, we have a clear

We can control the consistency in our process for risk

them so that we train our mind to accept probability-based

management. We decide if and when and where to set take

so what else can we control. Well, we can control the

accountable to a really high standard but also consistently

daily pre-trading routines so with this aspect of my own

position sizing. We make the decision to use a stop loss or

realise is that the more that we value those things that are

consistency in our processes for market analysis and trade

actually have control over. So what can we in our trading

business or we can control our consistency in personal

is what is visible to us. But what often you know isn't so

aiming for that consistency in your results it's far better to

outcome of individual trades. But if you are searching and

exercise that kind of really helps me to hold myself

someone is in. So, you know, we see someone up there and that

uncertainty of the markets. But what those losing masses don't

when you're trading is we obviously do not control the

the importance of valuing good process. So, there is any

front of their computers and and they're pushing their own

high priority actions that are getting you closer to your

You know, we need to learn how to accept the risk and then

I've gotta win we're going to win at all odds you know I can

the game and your emotional caveman brain, remember it sees

day, months to month, you don't always see it like that and

going to try and your need to take that long term perspective

all uncertainty as a threat. Everything uncertain was a

to help you avoid any of those perceived pains just because it

but as traders, we actually need to embrace uncertainty.

struggle to zoom out and focus on that bigger long-term

agenda thinking you know I'm going to win I'm going to win

day-to-day fluctuations because if you remember this side from

Now, your brain's short-term survival orientation is

outside of our control than the less control we have. We have

that into the markets. You're bringing that ancient brain to

trading and edge module, then this is a list of all of the

the lesson that was called, are you destined to fail in the

inner caveman brain taking over in order to try and protect you

take the risk or because you lose the chance of that reward.

picture and they're just way too caught up in those

that you're bringing to trading and it's activated by stress

threat and a danger to our ancestors and that's the brain

wants you to survive and win at all costs. But you cannot bring

common mistakes that traders make and it's all due to your

were investing my own money into someone else to trade for

say the monthly or the quarterly average of your

curve but of course when you're in the middle you know day to

zero control of the market. Absolutely zero. But yet many

wrong because we are engaging in randomness we're in the

want to lose we don't control whether or not we are right or

make this thing happen but what in fact you notice you know

this can drive some traders insane when you know they just

when you look back after a long period of time and you look at

in order for your edge to work in the heat of the moment and

80% are blowing up because you know they're sitting there in

upward equity curve in their minds right now while that is

without a doubt you know it's a pretty nice goal to have and to

and of course over what period of time because we know in

photon we know that due to the very nature of trading results

results then you can start to see more of that smooth equity

REG plays out so your trading account balance that

individual trade has a random outcome but over the long term

than against us see traders often say that you know one of

experiences short term fluctuations in PNL but then

vary because it follows a random distribution model each

you know they want that 10% month or that 20% month every

along the curve to see the results that they are creating

achievable in reality you know to generate a monthly return

short and even the medium term. It takes, you know, a really

processes and perfecting our methods so that we can have the

their goals is to have consistency in their profits

single month you know they have this idea of a nice smooth

good while for the exponential effect to kick in and really

start to take off but whether you see it or not, those

of your consistent actions and and your disciplines in the

results are coming either way and we all have both of these

aim for it's kind of debatable to what degree this is actually

power of the slight edge working in our favor rather

now. It's really really hard to see the effects and the fruits

types of traders within us but we need to focus on our

It's because they don't know how to look ahead far enough

wrecking balls why is it that they can't stick to those

simple daily disciplines? Well it's actually quite simple.

consistently actually get you a result then why is it that

Whereas wrecking they fail to understand the power of the

the simple daily disciplines that it takes to get to where

working either for you or against you the simple errors

they want to go. Easy to do but just as easy not to do. So if

it's extremely clear that simple disciplines repeated

themselves from their own weaknesses, insecurities, and

and judgement repeated consistently over time it then

imbalances and they mask them with pride, arrogance, and

the power of compounding. That small and simple disciplines

repeated daily carries you upwards towards success.

pulls them down towards failure. They don't stick with

compounding effect but it is relentless and it is always

Builders understand the power of slight edge. They understand

blame. They rarely take ownership of the outcome and as

they perceive them to be or bad but wrecking balls however they

just have an endless stream of excuses to disassociate

a result, they never build anything lasting or successful.

results you know builders are always optimistic so they

improved because they are taking extreme ownership of

they then know that their process is constantly being

regardless of whether they are good or bad results because

they look for someone or something else to blame and

they fail to take extreme ownership for their actions and

actually look forward to the day when results are achieved

then they start to beat themselves up about it or worse

those results regardless of where they whether you know

teachers that are constantly providing valuable lessons and

strategy and they never really commit to the process. Builders

tosses it aside and they start looking for a new shiny

process right. Whereas the wrecking ball, you know, they

have developed a mindset that allows them to view mistakes as

a continuous feedback loop if wrecking bulls make a mistake

trusting the results will come over time if they get that

they get discouraged. You know, if a strategy doesn't produce

winning results quickly or it goes through a bit of a

method whereas wrecking balls are absolutely fixated on

immediate results and if they don't materialize away, then

difficult period, builders are trusting the process and that

acting pulsively and are driven by their ego. Builders are

are extremely disciplined and process driven. Wrecking balls

focused on following their procedure and perfecting their

business. Mark Naverni talks about this interesting concept

trader within us all is the wrecking ball. Now, builders

everyone. One type is the builder and the other type of

that there are two types of traders inside you, me, and

begin building out the process side of running your trading

Over the course of the next few modules, we are now going to

the prize.