WEBVTT

1
00:00:01.200 --> 00:00:03.865
Everyone wants to know my hot trades.

2
00:00:03.865 --> 00:00:07.035
The real question is what I refuse to trade.

3
00:00:07.035 --> 00:00:09.988
Survival in this game is about avoidance.

4
00:00:09.988 --> 00:00:12.797
It's about knowing what to leave alone.

5
00:00:12.797 --> 00:00:14.670
First, I don’t trade hope.

6
00:00:14.670 --> 00:00:18.992
Hope is the emotion the market weaponizes
at obvious levels.

7
00:00:18.992 --> 00:00:24.323
You see a stock grinding toward a clean
resistance line. Everyone sees it.

8
00:00:24.323 --> 00:00:29.077
The breakout feels inevitable. That’s not
a signal. That's a trap.

9
00:00:29.077 --> 00:00:35.416
It’s a liquidity event designed to get
someone to buy the top so professionals
can sell.

10
00:00:35.416 --> 00:00:42.763
When you feel that surge of hope that a
stock is about to "go," I feel suspicion.
Hope is not an edge.

11
00:00:42.763 --> 00:00:45.140
Second, I don’t trade my own ego.

12
00:00:45.140 --> 00:00:49.102
Winning streaks are more dangerous than
losing streaks.

13
00:00:49.102 --> 00:00:51.911
A few big wins and you feel invincible.

14
00:00:51.911 --> 00:00:57.890
You start thinking the market owes you.
You size up too fast. You widen your
stops.

15
00:00:57.890 --> 00:01:00.195
You stop demanding confirmation.

16
00:01:00.195 --> 00:01:03.077
This isn't confidence, it's complacency.

17
00:01:03.077 --> 00:01:09.127
The moment I feel "locked in," I get
defensive. I reduce size. I get more
selective.

18
00:01:09.127 --> 00:01:11.865
I don't let a good run make me stupid.

19
00:01:11.865 --> 00:01:15.466
Third, I don't trade a dead strategy.
Edges erode.

20
00:01:15.466 --> 00:01:19.572
They don't die overnight, they just stop
working as well.

21
00:01:19.572 --> 00:01:21.805
The follow-through gets weaker.

22
00:01:21.805 --> 00:01:24.614
The clean wins turn into choppy fights.

23
00:01:24.614 --> 00:01:29.441
Most traders call this "bad luck" and keep
forcing the same trades.

24
00:01:29.441 --> 00:01:31.674
They start fighting the market.

25
00:01:31.674 --> 00:01:35.491
A drawdown isn't a personal insult; it's
information.

26
00:01:35.491 --> 00:01:39.021
It's the market telling you the game has
changed.

27
00:01:39.021 --> 00:01:44.207
When my setups stop paying, I stop trading
them. I don’t argue. I adapt.

28
00:01:44.207 --> 00:01:45.576
I see it every day.

29
00:01:45.576 --> 00:01:48.818
A stock runs to a key whole number, say $100.

30
00:01:48.818 --> 00:01:56.597
It punches through on a spike of volume
and the alerts go wild. That’s the hope
trade. That’s the ego trade.

31
00:01:56.597 --> 00:02:02.792
That’s where retail provides the liquidity
for institutions to unload their
inventory.

32
00:02:02.792 --> 00:02:09.707
The breakout fails, price slams back down,
and the hope turns to panic. I don't trade
breakouts.

33
00:02:09.707 --> 00:02:11.508
I trade failed structure.

34
00:02:11.508 --> 00:02:14.173
It's a completely different business.

35
00:02:14.173 --> 00:02:16.766
Your job isn't to find every winner.

36
00:02:16.766 --> 00:02:19.576
Your job is to avoid every stupid loss.

37
00:02:19.576 --> 00:02:24.114
The trades you skip are just as important
as the ones you take.