Millionaire Trader Explains Systematic Trading Strategies

TITLE: Millionaire Trader explains Systematic Trading Strategies CHANNEL: Humbled Trader DATE: 2024-04-11 ---TRANSCRIPT--- um I think people are just thinking more of like how do I get in the exact perfect entry that works every single time that never fails that’s not systematic trading systematic trading is like this signal gives me like a 50% probability that my risk is going to hold I can therefore put on a risk for that situation you can back test that that’s the main benefit of systems is like you can have that same exact condition and apply to all the setups that fall within the same kind of Realm or like the fact that you can go all the way back to zero is why people are perpetually stuck in this trading game where they think like oh I did everything right why did it just go wrong this one time I I ICI to do it again they keep repeating that process you just have to recognize being in this game you know you have to be one of those survivors when money is just coming in too easy uh you have to really take a step back and maybe pocket some of that I like I’m really big on wiring because I think that the market is constantly taking from the greedy it’s taking from the people overextending themselves and people instinctually think oh it’s going super well I’m just going to go even bigger next time when in fact like the way that they should be thinking is like it’s going too well like when is the when is the disaster coming I need to like prepare for that the markets like it just goes super hard you know it’s a very hard intense Market you get blown up and then there’s like easy markets where everything works and it’s beautiful and it’s like if you don’t understand that that happens all the time then uh you just don’t understand trading I think a former Pro Gamer became a multi-millionaire day trader using a highly systematic approach this is Brian Lee a highly intelligent stock Trader who developed his own trading systems and Technical indicators Brian is really well known for his involvement in the Twitter trading space where he shares freely his systematic trading approach he started trading just like most of us thinking that the Buy Low sell High approach would make him Rich he realized that he needed to move away from emotional trading and study systematic trading systems to achieve aeve high risk reward today I’m very honored to have Brian Lee here on the humble Traders podcast to share with you the four-pillar grading system for trading strategies creating a systematic approach for highrisk reward setups the compounding approach to risk management and last but not least fundamental analysis techniques for small cap trading if you’re looking to take your trading to the next level then get ready to absorb as much as you can from Brian Lee today and don’t forget to smash the like button down [Music] below at this stage of your trading career how would you describe your current Edge as a Trader and what’s being working for you um Edge hasn’t really changed you know it’s been 7even eight years it’s just small caps trading okay you know they typically Trend lower obviously everyone knows that with the stats the dilution um just the overall media right just things get over extended quite often you see like 500% Runner 1000% Runner you know at some point um in terms of meter version it’s just some of these stocks deserve to be there some of them don’t most of them don’t so the edge exists there I think like you know it’s easier said than done right M version it’s like yeah you catch the backside that’s great um there’s a lot of room to Trend downwards but uh it’s very dangerous game because you can blow up things go wrong you guess right so for me the edge is kind of like systematizing that and that hasn’t really changed and I think that would work basically you know it works uh let’s say when the Spy crashed back in Co it will work in any kind of instrument so you know people do it all the time you see a lot of Traders trading like smci Tesla GameStop was like that AMC back in the day so it’s mainly just minor version as a whole that whole umbrella and before we dive into like the specific details of how you trade and your strategy what can you tell our viewers about your most memorable trade whether it’s like a l will wing and what makes it memorable I have two so my worst trade is a blowup back in um 2018 I was doing really well for the whole year and I just started making these mistakes of like getting caught emotionally because I was sizing up too much okay and so once it like kind of went up to my stoploss and I was oversized and it like slipped past me I just started averaging down and basically like that worked once or twice right and eventually it catches up to you you cuz that’s just like a cardinal SC of trading just averaging down yeah I think I blew up like uh 50 to 70% of my account back then and um that stock was called W if someone wants to look it up but it was a really ridiculous stock I think it it went up uh just like infinitely it felt like and I got so uh stressed out that I just like I was like okay I give up like I couldn’t think anymore I just let the position stay there I was like I’m going to hope that it comes down later I’ve literally went down and took a nap for a couple hours and I was so stressed out it’s just like I think my cat could tell my cat came down and slept with me and I was just like praying I was just so nervous and I woke up and I got margin called the exact top oh no and of course like it came straight down and I would have been fine but um you know these kind of habits they really like ingrain something in you just like this terrible experience is like I just never want to go through it again and um that was before it was something people talked about like no one talked about Max losses back then or even now people have Auto liquidations and whatnot so like those are systems that I Implement today that would have solved that issue back then um because I think like every Trader kind of goes through so many emotions and if you start breaking rules and getting rewarded like that’s the ultimate failure so for me like I took that to heart just never let that happen again um my best trade ever was like on GameStop when it went insane so I waited you know for many many days and I think was like going to 500 or maybe was it I think it was 500 I think the highest was 500 yeah so it was the day was like a first major crack um what I was most proud about that was like there’s this pattern that um a lot of OTC Traders trade actually so it’s kind of like there’s like the pump I’m going to do it um the way I see it so there like a pump and then it pulls back and then usually what what people do is they call it the trifecta so what happens is like it goes up so you short it it comes down you cover it it goes back up so sometimes people long it and then on the bounce they shorted it again and it comes back even lower and that’s the trifactor where you go short long short and I actually did a a quadfecta cuz it it went up it ping ponged four times oh okay normally I usually just hold the position yeah but I was like so dialed in that day and just kind of like I was like I’ve seen this before even though it was an OTC pattern I was like I’m seeing this real time on like a super insane pumped stock and so I literally TR it four times like exactly how I needed to and I was like this is my best trade ever so for me that was the most memorable cuz I just I don’t trade like that and I just something like my instinct kicked in I was like I’ve seen this and that’s kind of like what I think Traders um is most akin to like a flu Flow State of like sports it’s just kind of like the challenge is there your skills are there and just kind of meets perfectly and you’re like wow this is amazing so for me that’s the best and that was the trade when it went from 500 down to 75 and it bounced back to 4 400 right you’re talking about that particular day I don’t know did they I think I hold it multiple times downside too I don’t think I don’t think it went that low on that day um I have it on my Twitter I’d have to look it up again it was it was quite a while ago but yeah it’s a super memorable trade I’m sure if you go on my FD search up like gme you’ll find it cuz I only traded a couple times let’s go back to the very beginning I know I know nowadays you have tons of different systems for like entries exits and for your entire strategy but if we go back to the beginner Trader Brian how did you get started in trading and what was trading like in the early years oh okay so I started getting into trading from like just Tim syes as usual right and I did the whole thing that everyone does it’s like you come into it you’re like why would I pay low cave fees why would I go short it’s so much more complicated people say you can lose infinite like I will just trade the long side of these small caps and so I just paper trade that out and it was just it’s no good you know you you you don’t get the emotions you don’t understand why people are all primarily short and basically like you take that to the market which is what I did and immediately just started get annihilated because everything’s just going down you know um it’s the E the most obvious pattern is like breakout so people like you buy the breakout and obviously in small caps you buy the breakout is literally the exact top every time yeah so I learned quickly like why people are going short completely flipped the short everything started going way better because just naturally there’s the gravity Factor okay and um you know basically like people didn’t really teach you that much uh not very useful information I came across a guy called um Team 3D STS on Twitter oh I think I follow him too all faders I think he’s single-handedly responsible for generating like over nine figures of wealth amongst like many Traders um even some individual Traders like literally just n figure Traders themselves from his feed and it’s just like I could just see how he was speaking so much truth the way he talked was so different than everyone else the value he was providing and I was like I got to study everything so he’s one of those traders that people they literally go back to day one and just see everything and take notes and like have screenshots of everything he’s saying I was one of those people I downloaded to this whole feed and I was cuz he said many times like I’m going to delete this probably and um thankfully he never did but he was a huge influence and I kind of just like studied him like like he was the Bible like it was my religion and then after that after that I really found like a really good strategy for myself he was always harping on risk management risk reward position sizing he talked about why stocks have Edge and I was like oh this is amazing so for him I would say he’s probably like the number one um resource for me and he was he stopped kind of tweeting slowed down a lot and so I think a lot of Traders um like let’s say what’s different between now and then is that back then there’s a lot of trash but you find one person or two people who’s like so much value and back then that those he was one of those people another person was kind of like Mike Catz from Seven Points Capital he he always posted like different um resources and different like strategies and stuff like that every single week and just really good psychology so is it because like you learned so much from him on Twitter that you feel like nowadays you you feel like the need to give back uh it’s just like I feel like some lessons in trading um are so obvious and so easy to implement like I hated the experience of blowing up so much and like the not knowing of like different money management principles and things like that that I feel like those are things that I can share pretty freely and like that I know are super effective because I’ve done it I’ve lived it experienced it and succeeded with it so I feel extremely confident to say like what I think about it um and I don’t think that those things like necessarily ruin my Edge okay right so that those are things that I feel really confident about and in fact like you know yeah you do have to find your Edge but like at the end of the day these things are really important because you see Traders burn out all the time like they yeah have huge parir block runs and they just lose it all and so um at the end of the day you do need to know these things so it’s just it just really hits close to home like it’s something that I feel like people don’t don’t need to go through I know you you mentioned you were losing a lot of money from going long in the very beginning and you found out about shorting how has since then like discovering shorting how have you kind of pivoted how have you built your strategy around around it to get you eventually from blowing up accounts like you said to now consistently profitable I think uh you know timing has was a really big thing right like um if you had the right skills and you had the right kind of education going to co that was like a huge explosion of liquidity an opportunity and for me I think just like you know um every Trader I feel has like a certain timeline um what I say is like it takes about 2 to 3 years for someone to go from being complete noob to actually being able to be consistently profitable um and typically like that depends a lot on how much effort they put in so what I would say is um if you put in let’s say 10 to 16 hours a day then that timeline’s a little bit more accurate than let’s say if you take you know 4 to 6 hours 8 hours a day you’re going to get there a little bit slower so try to like extrapolate that for yourself but usually in the first year people are pretty inconsistent just learning you know no matter how much knowledge you have you still have to execute so for example I’m teaching my little brother he’s like 20 how to trade oh okay and I started him out like the right foot he knows information he knows how to study and like do due diligence stuff like that he knows the knowledge component and we just got on the Dos demo okay recently and it’s like you know he’s making a lot of mistakes right he doesn’t know how to execute he doesn’t know what does that look like um I tried to like show him beforehand you know this is what a level two looks like this is what right and but U no matter how prepared you are you still have to go through it and experience that get that muscle memory so I think in the first year like you can’t really expect to make money necessarily you should just learn the skill learn the details of trading um in the second year typically like after you’ve kind of try a lot of different things you should be able to find your consistency like cut out setups that don’t really fit um for you that you don’t show promise in you know you should be able to identify like hey this is something that I can probably cut everything out and just commit to this that’s kind of the path in your two and usually you’re just building your confidence there building your account up and then typically like after that you can start sizing a bit more and that’s usually where people go kind of have like exponential success CU trading is kind of one of those things where you know you can make your year and a week or a day or a month or things like that so um basically try to be really patient with yourself and essentially like by the point that Co had I I heard already kind of been through that stage where I’m like on my third fourth year and I was just hitting my stride at the right time so timing was a big big deal um and so yeah you know like I learned a lot about exploring different aspects of small cap so I I tried to go heavy on the fundamentals so I was like 90% fundamental so I had to have the right kind of dilution set up and everything like that and then I went the other way to like 90% technicals and I kind of at this point in time I just kind of leveled out but um I just I think just kind of really focusing on each aspect of trading is going to give you like a really good well-rounded approach to just understanding the market and in fact like one thing about Co was that since there were so many opportunities popping up it was almost impossible to do like a really proper fundamental analysis um it’s it’s some much to right now actually in in um like in in February of uh this year the market started heat up you know it’s a bull market you’re seeing tons of setups and stuff like that um it can be very overwhelming so you have to do a very efficient job of just being like okay I know enough about this stock I know enough about the fundamentals I might not be able to like maybe read into all the filings and stuff like that but um I get the gist of and that’s kind of what you need to do because the when the market moves this quickly you have to be able to act otherwise you miss your timings so you have to have a proper understanding of technical fundamental like I mentioned many times before on this channel most profitable Traders I know they reinvest profits from Trading into other longer term investments that will grow their wealth passively this free tool is not only a portfolio management tool but also a social platform that allows you to follow other Traders investors and see their portfolio Holdings this tool is Blossom anyone can download Blossom for free and connect the app to your Brokers safely they do not share personal data for example you may have different Holdings in Robin Hood Vanguard or Weeble well you can now securely connect them all under one portfolio analytics platform there’s also a social feed for you to connect with other Traders were investors who are following the same stocks and you can even see their returns and what kind of Trades they’ve made in the past for example on my profile you can see all my investment Holdings how much I’m up or down on the year as well as my recent buys or sales all in percentages so make sure to check out Blossom it’s free to use down below I’m an angel investor in Blossom so I would love to hear your feedback down below um like the one of the big things that I changed in uh 2022 is called the four pillars it’s a it’s a concept that I learned from another nine figure Trader and he basically said like he said it he described it as three pillars I just added my fourth pillar um the three pillars originally are um technicals fundamentals and news okay so basically incorporating all aspects of that into your analysis of the stock like how you grade it how you perceive it what’s the opportunity going to be like and then I added cycle cuz I feel like the market environment is actually quite important um there’s like a c a cyclical nature to trading in general but also very specifically to small caps okay where like there’s basically extreme greed and extreme fear yeah and both shorts and Longs experienced it and that leads and perpetuates different types of moves so understanding that can really help you in a way that like let’s say you understand technicals fundamentals and news but it’s an environment where shorts are extremely greedy oversizing compounding their accounts and like they’re very prone into squeezes and blowups and halts and things like that um you could have the best kind of like scenario and rate this trade as an A+ but the cycle can completely invalidate that or it can make it more difficult to execute so being per perceptive of Cycles is really important at the end of the day it’s all Market psychology it’s like who who feels good who does not feel good um where is the vulnerability lie in terms of human emotion and once you know that it’s kind of like that changes the way that you color your experience of the market and how you’re going to react so I think that’s those things are really important and um just basically if you’re kind of following the track of what I was saying is like I went full in on fundamentals I really understand it then I went to the technical side to really understand it and then eventually I Incorporated the news and then Incorporated the cycle so you kind of just like want to really have a strong foundation in each one of those things and then and then marry it together at some point so you just mentioned like the four pillars of trading um how do you apply that to kind of your Trading process every day now so a very um beginner skill that I basically teach to people is called um putting together an ADF score which is basically old Day faders created that okay and essentially it’s like a it’s a grading rubric so essentially you can give each component of those pillars um a set of points and essentially like have it add up to 100 so for example you make like an Excel sheet and you say hey technicals I think that’s about 40% of the score fundamentals might be 30% news might might be a little bit less like 5 or 10% something like that and essentially like you want those to add up and basically like when you’re doing your analysis you might say like oh the stock is you know like it’s a 500K float like technically or or even like fundamentally you know that’s extremely dangerous you know that kind of float is something that can pull the score down as opposed to Something’s more normal float then you might rate that a little bit higher um same same goes for fundamentals uh or dilution you might say like oh well this is a in the money kind of dilution and it’s good Supply it’s not recently been tapped and things like that and so you might rate that score quite high and essentially like that should spit out a grade like a b c d something like that and U that’s a very like basic way to say it but essentially if you’re basically training yourself to view and also categorize um with scores each component of those pillars and then combine those together to like really evaluate the opportunity in in a whole so um once you basically do that enough uh pretty much at the point that I’m at like you you just internalize that so instead of having to like type it out to an Excel I just kind of know like oh this is how I would evaluate it and I just understand the opportunity as a whole so you’re just building that skill until you can like really properly understand a setup because I think what happens is at the very beginning what I realize is that setups that I would um like internally just on first impression evaluate quite low might actually be really good trades or really good trades I might evaluate quite low so the scoring system really helps put it all into like a numerical value that you can understand and I think like the first step to building it is basically like no matter where you start you’re going to see good opportunities so imagine you see a setup that had a perfect fade or like a really good um price action that you want to capture in the future and that you haven’t essentially you just want to reverse engineer that setup so typically what people do um if they don’t look at pillars is they’ll look at one aspect of it so they’ll say like oh it was a really extension or it was like or they had a fundamental thing or something like they they won’t really have a comprehensive understanding of it and even probably the the least comprehensive might be the cycle which is kind of maybe the hardest thing to understand because you have to trade long enough to experience it quite a bit or just like rely on someone else’s experience however like not many people talk about it anyway so um essentially like you reverse engineer a setup under that lens where you try to put together all those categories and you want to make sure that your score um will equal let’s say an A+ because that’s the best trade you’ve seen it might not be the best trade in the world but that’s the best trade you’ve seen I see now you want to use that rubric to basically evaluate trades going forward so basically um as you evaluate trades you’re comparing it to the best trade and you’re just you know ranking them in comparison now like let’s say that you miss a setup like you your rating system right now ranked something as like an f and it like actually was a good move well like you might want to tune those scores so it’s going to have this self-regulating effect where you might say like oh yeah I really devalued or deemphasize like the technical aspect of this trade and in order to capture this trade in the future I need to make sure my score captures that as a viable trade so you would adjust your score to capture the new opportunity and as you keep doing this you’ll have the opposite effect too like your score said maybe this trade was a b or a c but in fact it was like it should be an F so you just tune it constantly and eventually you get it to a point where it’s like you are taking the trades you should take and you’re not taking the trades you shouldn’t take and you’re seeing things properly So like um it’s just something that evolves with time and you know depending on how much experience you have you can build it much quicker so is that kind of the process you go through for every kind of set of strategy you use and not just that single one old day fader uh well I I do like to trade basically the same stuff okay I’m like a I say it’s a mean reversion umbrella I mean like there’s lots of different setups it’s not just like you know they they might look the same it might be part of the same Niche cuz they all look like a short but there are different there are different setups in them so there’s like you know overextended Gap UPS like stocks that are already extended and they Gap up even further um those will be different than like a day one trade or like first red days or multi-day moves that might take more days to break down just uh there’s a lot of different factors there’s technical trades there are trades that are purely fundamental and so um even though it all looks the same there are there’s so much Nuance that I would say like even just in small caps there’s at least probably like 10 setups H um even though they look the same on paper oh I see and how much I know you mentioned you read into the filings a lot how cuz I I it used to be at least from my experience maybe prior to 2020 reading filings just that enough will provide you an edge but nowadays there’s like so many different like Services providing the SEC file Lanes I feel like a lot of that edge has like kind of disappeared so how do you nowadays how do you effectively use filing and still use that as an part of an edge well it it definitely matters I think what happens is uh yes it’s easier but like people are lazy I I find that people are lazy like I mean for example um there are services like they’ll you know they’ll evaluate the dilution and they’ll tell you straight up like what is there okay right and it’s kind of like yes it’s could be that easy you’re going to get like probably 80% of the way there 90% of the way there but there are little nuances that you don’t pick up unless you really like pay attention so for example like you know uh relying on a service to constantly have up-to-date information is is a mistake basically like there are times when let’s let’s say they’ll say oh this stock was um this dilution was last updated like let’s say in January but now it’s March and could something have changed in between that timing yes cuz maybe let’s say in February there was a DAT that had like a lot of volume a lot of trading and it was in the money and so those stocks potentially have already diluted by this point and if you rely on outdated information you’re not really going to be able to piece it together there also different nuances and rules like um sometimes like people misattribute let’s say like a private placement is a type of dilution or type of uh the raising Equity through an investment and basically like it it’ll have similar verbage to dilution it’ll say like oh we have warrants we issu shares but those um shares and that type of dilution is not effective at that moment so people will react to the knee-jerk reaction the market has and assume like oh there is dilution but there’s not so you have to understand like all the different types of situations you have to understand the people who are the underwriters of these uh deals and how they typically you know manipulate markets you have to understand um again seasonality is really important sometimes you might again like you might have like an A+ setup but there are so many people shorting it that it’s going to have to squeeze first so like really good example is like well I can’t give a specific example but let’s say in December there was a lot of stocks like probably more stocks I’ve ever seen that reverse splitted under 1 million shares which is insane it’s like a nano flute before 2020 before 2023 and I saw that in December like you almost never seen a stock under 1 million float that was extremely rare and so um again like no matter how good and some of these had really good fundamentals like A+ it’s like no matter how good that that was because of the float structure those stocks were prone to halting at the open uh making extreme moves and then going ahead and selling off the supply so it’s like um no matter what you do in terms of like analyzing the scores and analyzing the trade uh the first thing that has to come to mind is Risk Management number one okay and then you know just position sing properly so it’s kind of like in trading it’s it’s all about timing and your anal is just one aspect of trading like you have to recognize anything can happen it’s all probabilities but you don’t want to properly um identify or misattribute trades you want you don’t want to be looking at a trade that like looked really good and say I need to take that in the future when it could have just been look and you don’t want to miss trades that you should be taking because you can’t see the reason why they’re actually working in the first place so you have to be able to evaluate opportunity more holistically and that understanding allows you to basically continue to grow and develop your strategies I think that also means like Traders need to constantly track like all the stocks and their performance that’s related to their the niche or their strategy do you do a lot of that as well for your strategies and the the ones that you trade under the the that umbrella yes I have I literally have screenshots of like nearly every single day of um my strategy like every stock that popped up I have a screenshot of them I have the daily screenshot intraday screenshots higher time frame screenshots like 5 minutes chart or like 15 minutes 30 minutes Etc usually it’s just one five in Daily for me um and basically like I can go back years and find exactly what I traded on that day what I would should have traded or what opportunities were on that day if I ever want to go back and look at it and I also track the um the scores and the way that I perceive it in terms of grade so I have all that information and that’s really really important because like you have like in in trading there’s this feeling of like I’ve seen that before um pattern recognition so sometimes you see an opportunity that’s being presented to you and you’re like where I seen that before or like how can I prepare for this and if you go back and look at your records you’ll be able to find exactly what was similar and be able to basically act on that um the other thing is just reflection pure reflection you just want to be able to go back and I can see exactly how I executed what the risk world was how much I was risking the executions everything like that how I was perceiving it so that to me is really really important because those skills just like constantly compound and it’s just to me it’s a best practice it’s something that even though like I have all that information I’m not going to discontinue tracking the information because markets changed like the way pattern patterns have changed volume has exploded since Co and then since died down in 2022 which is now kind of uptaking here in 2024 because of like alltime highs and you know crypto Spa everything everything’s going up so we’re seeing more of like a Resurgence of Co and one thing that I think is kind of tragic is like people maybe started now or they didn’t have the experience of covid and like they get completely caught off guard whereas like when you have that experience of Co you kind of know how things change so what’s really interesting is like I’ve been teaching people like how to do ADF scores and like how to properly understand filings and stuff like that and in Co Markus a lot of times that didn’t matter anymore so um I had to then pivot and say like guys this is a CO Market um you’re not you’re going to find a lot of technical setups on the Bas pure basis that they’re more quantity there’s more Mania there’s higher percentage gaps and so some times opportunities are presented without having a proper let’s say like fundamental situation and so you know sometimes it’s nice to have someone to like help kind of uh share their perspective and wisdom on that okay but um in general like like it’s just completely different it it’s like Co is a very Indescribable Market it it’s just complete Mania and I kind of sense that the market is similar right now just with lower volume so we talked about how you kind of analyze all these stocks you trade fundamentally and the filings and all that but how did you find them in the first place like is there like a like how do you find stocks to trade every morning essentially I just I run a scanner like I use trade ideas um not sponsored by them but like basically you just scan for gappers and with high volume or you keep track of stocks that were already running like with making big moves right you know everyone sees the same things like smci Nvidia like everyone saw those having those Med York Rises things like that so you kind of keep those on radar okay but for the most part uh new stocks are constantly getting extended every single day and so by using a scanner that’s just very simple like scanning for you know over depends on you but like 20% 50% 100% Gap however you want to see it has enough volume has enough liquidity uh those stocks typically are my radar and then you just run you just run your analysis on those cuz those present the opportunities of mover version you know it’s like if you’re a long Trader you have to find the opportunities um but as a short Trader the opportunities kind of come to you so those extensions naturally lead you to think or at least ask the question like is this a mersion opportunity or is this legitimate cuz sometimes there are you know small cap companies that do have big news like they finally releasing their drug like a biotech company or finally getting a huge um breakthrough uh like deal you know they make they have a 100 million 200 million 100 million kind of investment from a larger company or even from a you know larger Tech larger bio bio tech company like Gilead or you know fiser or something like that right so those opportunities kind of change the way that they trade but for the most part A lot of them are um they’re they’re basically trash it’s it’s true so you now have the stocks you’re watching all the big percentage gappers so how do you start stocking them after market opens and how do you find you know an entry and if they kind of fit all the four pillars how do you you know start to plan your execution out mhm so the first thing I do is I usually go straight to technicals cuz that usually has the easiest red flags um initially so basically I’ll mark let’s say the high point and then I’ll go to the daily chart and I’ll look how has this chart developed is it uptrending is it downtrending is it fresh is it something that is very congested and has a lot of like different levels of high volume that may or may not impact the price action because what happens is like if if there are multiple let’s say different days that we’re trading high volume or just above underneath it’s just a very messy chart um essentially those Traders are all positioned at different points I it could be investors it could be Traders it could be whoever and basically like that makes the trade way more ambiguous than it needs to be and it could invalidate or make make certain trades a lot worse because like they will basically refuse to let’s say fade because there’s buyers who are beneath or whatever like all different kinds of positioning so that’s the first thing I look at and then the second thing is I’m going to go straight to the filing so you know I’ll use the service and I’ll check out like hey you know what is the you know what’s the knee-jerk reaction to the stock like how how much dilution is there is it something that is like um is it a lower cap stock is it a higher cap stock is it something that is like cashr or low cash something like that just analyze the most basic information about the stock um and then I’ll basically uh take note I usually type it out I’ll just type out like here’s the dilution like what is the pricing stuff like that see if anything is um may impact the trade in the near future or is already affecting the trade and depending on like the urgency of that I might act on it or wait for that opportunity to arise and then um lastly I usually look at news because news is kind of like most of the times it’s it’s nothing Burger but like sometimes it matters and it is important to pay attention to it sometimes you want to see if hey is there like an earnings coming up is there a conference coming up is there some sort of catalyst that’s creating this opportunity if there’s no Catalyst a lot of times um the mean version is a little bit better but if there’s an actual Catalyst and you can kind of reason that over time just hey this is an actual big deal for this company then that also might invalidate the trade as well or help you understand why this move is happening why there’s so much volume Etc and then last last ly is the cycle so I just look at like how has the market been usually I already come into the day with a perception of that so I might say like oh you know this Market’s been just way too easy I feel like shorts are just constantly getting rewarded I feel like people are just growing their accounts and basically like this next squeeze is coming I already know it’s coming I don’t know when it it’ll come but I know it’s coming and so I’m always prepared defensively for that um or it might be like this Market’s crazy you know people are just buying everything people don’t care right when that happen like things get extended and that’s great because that creates an opportunity so you just want to you just want to come into the knowing like what is the current condition of the trading environment and so um after I put that all together basically I’m a systematic Trader so I kind of like don’t necessarily um I can trust myself with discretion but a lot of times like the signals and like the work that I did outside the market is much more effective at trading because basically like I think like 90% of the work of trading is actually done outside the market like you when the market happens you’re just kind of executing on your plan right but like the systematizing aspect of it is like I have an entry criteria and then I have like I have several entry criteria so it’s like maybe start starting position like a small position low probability I’m not sure exactly if this deserves a risk so I’m like more eager or I’m more willing to cut more willing to just be loose with the position and then I have a confirmation which basically is my signal like hey let’s get in full size it’s not saying like it’s 100% going to work but it’s more of like the odds are there with you and it’s worth it to take the risk in case and then I have different signals like adding so for me just if I see the trend continuing to work in my favor and then I have my exit condition so the exit condition um like really easy things for some people is just like you know what is a system a system is like if this happens then I do that so it’s kind of like you know for example like a really common strategy which I don’t necessarily um think is the best but it’s good it’s serviceable it’s like you could say I can just use times you can say like the market typically in small caps like by you know mid to late day like at some time there you can just exit just no matter what you can say okay okay it’s gotten to this time I’m exiting that’s my strategy the reason why you would let’s say trust a system like that might on a server sound like oh why would you do that so binary but like basically what I said is 90% that works the market so you can back test that that’s the main benefit of systems is like you can have that same exact condition and apply it to all the setups that fall within the same kind of Realm or like with the same strategy and you can look at what’s the what’s the result like what is on average is it working really well in your favor is it allowing you to hold the position longer than you normally would is it allowing you to reap more profits out of the position or is it or is it a negative thing is it a bad thing is it a bad system you can verify all that information and again like the more information you collect the better but it doesn’t mean like you have to have seven or eight years of data you can basically start gathering information as you go so like if you collect information day by day then eventually you’ll have let’s say 100 samples or you have like two or three months of information you can go back and say like if I use this system how effective would it have been and that is basically how I designed like my whole trading strategy so it doesn’t matter if it’s the open or if it’s the pre-market whatever like it’s completely in my opinion to trade free market if the liquidity is there obviously like the risk management is a little bit more difficult but um it doesn’t really matter uh as long as you can get in and out that’s that’s my main deal with it but basically um I’m just stalking the trade until my signals fire off like I kind of I mean if if I took my signals off I kind of could guess where it would be okay but sometimes this is the most important um part about systems is that they allow you to act in a way that is not necessar human like you might perceive a situation as like this is risky whereas like my signal might say this is confirmed like you should get in size here and that might be at a very kind of nervous point where it’s like the stock is maybe not broken down yet or the stock is not yet confirmed in your eyes because it’s not trending lower and stuff like that um and I get into that trade and like I get a massive risk reward trade off of that and it’s because I put in the work to back test my system to the point where I know like this is I should get in position here and I can trust it because I know it works majority of the time so those kind of inhuman actions is where the systems really shine and I feel like Traders typically are very emotional or like you know once they in trades they kind of uh have heightened emotions and when you can eliminate that aspect from your trading and just like make it very black and white that allows you to really you know execute at a high level cuz you can always look back on the day and be like well okay I did get nervous still I’m systematic but I got nervous I got out but you can always measure yourself against something like oh I need to get out here this is what if I would is going to evalue myself as like 100% performance or a grade on my trading then I would have got out on my signal I would have got in my signal what is the discrep discrepancy what is causing me not to follow my system is it because the system is a bit too difficult to execute is it because the system has certain issues like one thing people don’t think about is like there’s something called repainting which is when let’s say you have like a 5minute indicator um 4 minutes goes by and it looks like it’s going to work but on the fifth minute it’s becomes invalid so then all of a sudden your signal disappears I see right so like you might have a signal that on paper looks like it always works but it’s not showing you the repainting yeah so essentially like those are things that you need to both forward test and back test so you can go back let’s say on thinker Sim on demand and you can like test those scenarios and look for repainting but it’s so slow and so laggy sometimes it really sucks um overall you just want to understand like what are some of the drawbacks of systems how do they fail what are the main failure points and it’s usually between those two things just too hard to execute or you didn’t consider something about repainting and basically like once you hash all that out um you can either continue to evolve that system make it better make more efficient or you can make it you can just say oh this this is actually trash in practice and just completely eliminate it I mean the way I see it is like it’s kind of like um uh Thomas Edison or what is it the guy the guy who was doing light bulbs oh yeah Edison Ed yeah it’s like Edison it’s like you know you just keep testing and testing and testing um 100 tries later you might find something that actually works and people want to come in and think like oh yeah I can just create a system out of my ass like it’s it doesn’t take one day of like testing it takes months or even years to to figure out exactly what works and so um just keep trying you know there there’s a lot of conditions I don’t I don’t think it’s that important how people execute it’s more of like if you get kind of good enough if you if you like I don’t I don’t like short into strength I don’t like short into something going parabolic and just guess it’s it’s working I usually short once I see like selling coming in or like pullbacks and like I’m usually shorting like kind of lows and stuff like that but the thing is like it doesn’t really matter because um I’m getting into a position with a pretty good risk reward I have way less uncertainty in terms of probability because my systems are like more back tested and so I just feel confident like okay if I get in a little bit later I might not get insane risk reward but I still get good enough and that for me can turn into a really good trading system so earlier you mentioned like as part of your system you have a lot of different signals right for initial entry for confirmation and ads are these just a combination of indicators that you kind of put together to form those signals for you yeah basically and I know it sounds like you’re talking to someone who like put it together over many years um the main way to start in is like Identify some area of trading that needs work so for example if you constantly get good entries which is very common for people they they focus on entries because that’s seemingly the most important part of trading so people typically have pretty good discretionary entries maybe you don’t need to screw with that maybe your entries are perfectly good but maybe you always scalp the trade maybe you don’t let the positions work maybe the exit is the most important part of something that you may want to systematize yeah so again like I would just find the pain Point find the thing that can be improved and then understand like try to figure out a system that would encourage that like right behavior and so um again like exit is probably pretty easy you again you can use time like 80% of the time it’ll work just fine but um you might not understand the the actual true mechanic of why the Stock’s fading and like where the mean is and stuff like that but overall it still works a lot better than sometimes people they just um they’re trying to tape read or they’re trying to um really focus a lot on like what they’re seeing but the thing is the market is just uh it’s trying to clown on you non-stop it’s like you know you see a wash out or you see a spike and then you you call like a stuff candles like it goes up and it just comes straight back down right and then how many times do those stocks just go the other way right you always get trapped um it’s just not it’s just not a good environment for someone to think rationally I think because it’s like you’re constantly being toyed with all the time and so that’s where these systems are really important um and if you can kind of move Beyond like the human element of just like being constantly toyed with your emotions uh it it allows you to execute and just like take advantage of Trades that you normally would just kind of mess up so that’s how you do it just identify one thing work on that and essentially like you create the condition so it’s just let’s just say it’s time again you say okay it’s it’s a it’s noon it’s 12:00 okay so at noon every single day if on the same same exact setup based on all my screenshots if I just literally scroll through them one by one noon noon noon noon noon is it good is it is it good does it go more okay if it goes more maybe 1 o’clock 2:00 and you just keep repeating that process and just go through all of them and you’ll see probably like it’s actually pretty good I mean for the most part um and if that’s the case then there’s no reason that you can’t make that a rule like I exit at noon and that’s completely fine um so that’s the type of system but more or less the other type of systems are usually indicator based and I have like one really good tip is like usually people think indicators are crap but I don’t think they’re crap at all I think like they just make it visually easier to interpret the information I mean everyone says like oh you can just look at the chart you can just look at U the volume and stuff like that but like do can you actually literally imagine like a moving average on your chart um I don’t think most people can from day one just know where a moving average is how it’s trending what it how it’s interacting with price but if you see moving average then yeah you could take it off later and then you’ll know what it looks like so it’s kind of like I think you should give it a try and then maybe if it’s not useful you’ll at least know how it behaves but like to say okay newbie don’t use it it’s completely useless uh I think that’s kind of foolish because uh that could be something that could actually improve your trading you know okay so back to the tip so it’s so you have indicators let’s say like a one minute indicator is going to be very noisy you’re going to get like signal signal signal um you can use the default Ator really but the thing is like because it’s so noisy you can’t assign like a good level of probability to it um one thing you can do is add like a second layer you can in you can add another indicator to create two triggers that have to go off at the same time to invalidate like multiple signals um but another an easier way to do this is actually just move it shift it to a higher time frame so for say for example a one minute indicator is too noisy but it like accomplishes more or less kind of what you’re like sort of looking for um you can move it to like a 2 minute 3 minute 4 minute 5 minute Etc and you’ll notice that the signals get less and less noisy like you’re going to get you know instead of having 15 signals you might have like two signals and the thing is like if you can get two signals and you just put like um you know one R risk on each one of them okay you maybe you lose one r on the First Signal the second signal you get in and it works you get three or four times your wrist in four R then that system works um I think people are just thinking more of like how do I get in the exact perfect entry that works every single time that never fails that’s not systematic trading systematic trading is like this signal gives me like a 50% probability that my risk is going to hold I can therefore put on a risk for that situation like maybe you put on one R sometimes people are less confident they’ll be like okay I’m going to put on like half position here you basically like have a confirmation that you say okay I can put on full position now like the odds maybe went from 50% to 80% and then you’re that you feel comfortable with like that’s what systematic trading is a nutshell you combine it with rward so that you can be wrong and you can make mistakes but the thing is like it’s going to help you avoid so many situations where you’re just seeing stocks go up and then pull back you’re like oh I got to get in short you short it you get stopped okay I’m going to get in again and you just do that over and over again right yeah you want to develop a signal that literally doesn’t appear that many times so you can just chill and wait for it I think it was you on Twitter that I read that you you over over had a low win rate but you have like a really really good risk word can you tell us about how you kind of how you use that to your advantage because having a low low win rate means you lose quite often right but at the same time that means when you do make it that the profit is a lot bigger so how do you structure that into your day-to-day trading how do you not feel kind of defeated when you take keep taking losses well it’s it’s it’s partly by the designed partly by choice um so when people think of win rate they think of like I’m full position I lost but it’s actually more about like average win and average loss so on average like let’s say I want higher risk War trades so I’m willing to put on more riskier positions so back to the systems like I might put on a half our position like half of my full size onto a trade with a 30% probability or like a 40% probability the tradeoff is that you get in much closer to your risk level so it’s a a little bit tighter risk better risk W eventually but the downside is that you’re going to be wrong a lot so in my mind like losing half an hour is nothing I’m like oh I lose half a cares I lose half an cares to me it’s just paper cuts um I would I would never be full size in those positions so it’s not like I’m losing every single time a significant amount of money to me it’s just not not enough U whereas like I know the eventual downside is or the eventual upside I’m thinking downside cuz I’m a short seller but like the upside is essentially like you get the greater risk reward if it does work the probability is like sort of there but it’s like not too bad and then if it does work you build into that position and you start adding more position as the trade’s working the probabilities go higher you can move your stops down you can get a much larger position and eventually by the time it reaches your target like you’re in for a much bigger position than you were exposed to at the very top and your probabilities are way higher and you get a much bigger risk reward so you know who cares if you lose like three times on far you this 1.5 R if you’re going to make three or four R in the win like you you typically always end up green in that in those types of situations sometimes of course like you can just consistently lose and just max out but the important part is just like cap that out so basically like if your average risk reward like let’s say your average one is a 3 R um you it doesn’t make sense to ever lose on any single tier like more than 3 R because if you you know let’s say like you keep losing three four 5 R then by the time the trade works even if you make three R it’s like you’re still red yeah the the goal is to like keep it so that your losses are small and your wins are big so that the win eats up all the losses um you don’t have to trade as risky as I do I I kind of accept that lower win rate because I like the uh positioning Advantage I like being in a riskier spot I can tolerate that but you could realistically you could just have a much higher win rate and um what what happens is you’re going to have less volatility in your Equity curve which is really good I mean it’s it’s that’s probably the most perfect thing for compounding is like if you have low volatility then your risk can constantly grow your account can constantly grow at a more stable pace and also you can just position size differently so you could say like um I could risk maybe 2% of my count instead of 1% of my count because my win rate is like 50% and like if you plug into like Equity curve Sim you’ll see that like on average your draw Downs are you know less than 10% so if you are a Trader who can handle 10% draw Downs which is not that big of a deal in my opinion then you can just position size more to keep continue growing your account but whereas like the risk reward approach is not necessarily going to risk more percentage of my account because uh you could have like insane draw Downs like 20 30% 40% even um that’s not really a good thing so the risk reward aspect of it is just like can I just continuously take small losses and then get the be the biggest when I’m going to win that’s like the whole Dynamic of risk reward trading and the reason why like win rate doesn’t really matter in that case it it matters somewhat you don’t want to be like 20% or something like that but you see you know everyone knows like the basic ideas just if you’re going to win three then you can and you lose one every single time then you can have like a you know 30% win rate Etc and still be profitable you’re just playing on the expectation like a casino you know you know like over hundreds of Trades like it’s going to be profitable in the end that’s the whole like philosophy behind it yeah I remember I’ve seen your actual like execution chart in which you have like one entry and just hold it all the way through before the all day fade right so how do you hold through like all you know cuz not all the Fades they go down just like that right how do you hold through all the IM middle volatility do you move your stops do you move your risk down and how do you not get kind of get stopped out in the middle um it’s it’s really all about positioning and where you put your your wrist level so like typically I try to again like the part of the reason why I have a low winry is cuz I want that Superior positioning so I want to be like in a more riskier Point closer to the risk level and therefore like when when the stocks are kind of like consolidating and you know chopping around usually I like to be kind of at the higher end of that range so that I don’t have to deal with the emotions you know it’s completely different when you’re in closer to the high and you’re just like seeing that you’re like okay those everyone’s just fighting it out I’m chilling whereas like if you if you short at the bottom you’re like every single bounce oh my God it’s so personal I don’t know what to do uh I think that’s one aspect of it but real realistically I think people need to recognize that there’s so much noise in the mean reversion yeah um mean reversion by concept is kind of like you get in at some point where it’s extended and there’s a price that it kind of is gravitating towards mean so when you’re kind of like in at this point and you only got you know this far but the mean is down here um you have to recognize this is this is all noise this is something you can completely ignore and that’s where again like system systematic type of thought process can eliminate the emotions there because you’re not having to say oh I need to react to this specific moment of a price action or uh tape or level two instead you’re you’re seeing it more hey this is where I think it should go it’s not there who cares that’s the idea earlier you mentioned compounding um are you referring to account compounding yeah so I’m I’m huge on compounding in everything and skills but particularly in Money Management okay so I like to risk a percentage of my account uh so that that might not be 1% but originally I like to risk 1% somewhere between 1 and 4% it’s typically where I risk nowadays but um essentially every single day your account’s growing right if you are adding more p&l to your account you’re going to be able to size bigger just because it’s a percentage it’s a it’s just a proportion of your account uh if you if you lose then you size down this allows you to basically grow your account at this U accelerated Pace that matches your current performance so if you um if you have a winning streak then your risk is going to go up quite substantially and that allows you to risk more when you’re performing better or the market is just kind of going in your favor and just it’s working for you and vice versa if you’re in a draw down then you should be sizing lower a lot of times people they kind of do it very arbitrarily and I feel that the compounding just kind of takes care of that equation CU it’s just a position sizing algorithm it’s like if I lose and I size down and I like that aspect of trading because what happens is because of a risk reward Focus if you lose you’re just you know you’re going down slowly but when you win you’re really taking these big advances and you’re really risking more um there’s a lot of pitfalls to that you you definitely have to be aware of just not growing too fast I have systems for that but um that’s generally help I do things just constantly using a fixed percentage of my account to risk and just being aware of the concept of risk of Ruin which is kind of just to say that let’s say you risk 10% of your count on trade um you might get lucky for some time but that means in 10 times you’re going to blow up your account um whereas with 1% you can literally risk like you can lose 100 times in a row and you’ll still I mean you’re going to blow up at that point but if should you be a Trader if you lose 100 times in a row and so you have to kind of really evaluate the draw down and risk of run and just understand that position sign sizing is so important like you could I I did this uh Kelly Criterion simulation and it was like it’s like oh you can go you know 30% of your count some of these trades what if you lose three times you’re blown up i’ I’ve seen I did a simulation for my friend and it showed that he can grow his account from 100K to 20 million but like there’s one or two trades where it goes back down all the way to almost zero so it’s kind of like that’s the that’s the position sizing um like you have to understand risk of Ruin first before you start position sizing so aggressively because people always kind of have these streaks of just oh I’m going to win win win and they they feel that like you know who knows if they go to 20 million but it’s like the fact that you can go all the way back to zero is why people are perpetually stuck in this trading game where they think like oh I did everything right why did it just go wrong this one time I I ICI to do it again they keep repeating that process it’s all about like you have to know that position sizing is so important because those draw Downs are that’s the thing you have to focus on not going up especially I think in this year and last year there’s a lot of these crazy short squeezes I think it’s that from that I I can see why it’s really easy to go back down to Zero from like a six seven figure account yeah my my broker told me that let’s say there’s 10 Traders right um simulating the overall population of Traders maybe two of them are super good and then you know there’s some average Traders and then bad Traders at the bottom he said in November December 50% of five of those Traders all blew up like they’re gone oh man so um you just have to recognize being in this game you know you have to be one of those survivors it’s there’s a huge survivorship bias because you only see people who are constantly around it’s true yeah but even people who have grown their money tremendously have lost it all in a equally spectacular fashion like there there was these Chinese liquidation trades like ZJ was one of them where I knew someone who was risking just 10,000 and it opened up he lost like 400,000 and it’s like you you think you’re risking 10,000 okay now it’s gone right so yeah um that’s the aspect of just evaluating what kind of risk you’re taking to get there and um you know no one could have seen that coming necessarily that that was insane but um just sometimes when money is just coming in too easy uh you have to really take a step back and maybe pocket some of that like I’m really big on wiring because I think that the market is constantly taking from the greedy it’s taking from the people overextending themselves and people instinctually think oh it’s going super well I’m just going to go even bigger next time when in fact like the way that they should be thinking is like it’s going too well like when is the when is the disaster coming I need to like prepare for that so I’m constantly just wiring money out of my account in the systematic way um and that allows me to basically weather the storm so when when I know people are going to start getting greedy and things are going to get bad um I’m basically not sized up bigger at that time and I’m just taking the losses like everyone else is I’m not immune to those losses but I’m taking those losses but I’m not as psychologically affected because I already have taken money out of the account and I know this is just my trading vehicle like this is my business account it’s not like it’s not my net worth the mistake people make is they put their whole net worth in trading account they grew like they might have started you know 10K 30k grew it to 100,000 but like that 100 ,000 might be all the money they have in the world and if you risk that all the money you have in the world then your risk erion is always there whereas if you let’s say you grew it to 100,000 but you wired out like 30 or 40,000 that the account and how you’re risking no longer represents even uh a percentage of your um overall net worth because you might be risking like 1% on a you know like a 50k account instead of 100K account and so that allows you to stay in the game for a much longer time and keep showing up and that’s like the biggest thing is just survive cuz the Market’s like it just goes super hard you know it’s a very hard intense Market you get blown up and then there’s like easy markets where everything works and it’s beautiful and it’s like if you don’t understand that that happens all the time yeah then uh you just don’t understand trading I think I think you have a very like analytical way of systemizing everything you do in trading like whether it’s strategies whether it’s wiring money out whether it’s you know risk management do you think a lot of these like skills with discipline and how you analyze these things came from your gaming background definitely but I think I kind of always thought that way just cuz I it’s it’s one thing if you’re if you’re naturally talented you know some people they just kind of show up and they’re like amazing at everything but I never felt really amazing at anything necessarily so I also thought I just have to put in more work so for me it’s just systems are just a way of I can put in extra effort and have it pay off in the same way that maybe someone who has a a natural talent for something so I’ve always used it as kind of a way to just do what I need to do without with a lot of preparation behind it and so like in let’s say in gaming for example um in the game I played called DOTA defense of the Ancients it’s really important there’s like a strategy component where you have to draft five characters and the other team drafts five characters and basically there’s so many variables there’s like almost infinite combinations of what can happen and and you know the way that you deal with that is you just kind of you settle into a plan and then you just try to like dig into it as much as you can like what needs to happen for me to win what do I need to you know go for what are my objectives and basically all you have to do is execute on that because in a world where there’s just infinite variables um if you don’t kind of control certain aspects of your strategy then it’s just kind of uh it’s just too chaotic and some people thrive in chaos some people are very reactive and they can figure that out but for me it’s never been that way so it’s just my mind immediately goes to strategy I mean even as a for example I feel like there are so many emotions and you know how instinctually we all make the wrong decision all the time like the way we feel is opposite of what’s good right so by eliminating that from my trading I felt like that that’s an advantage cuz they always say that you know and I and I definitely feel that that the algorithms the way that Traders trade around each other it’s just a it’s a continuous emotional battle it’s like oh my God I missed that I have to get in and then it rips the other way or I you know everything like that just strong moves cause strong reactions and I don’t want to be part of that game because I don’t think that I can react properly in those situations and I know you are constantly wiring money out like you mentioned earlier where do you put your money nowadays now that it’s out of your trading account where do you invest them where do you put them so it being from California it’s really important that for tax purposes that I’m oh yeah making Investments that are not uh necessarily just passive cash flow but actually deductible from my income okay so I’m looking for like depreciable assets I’m looking for Investments That reduce tax liability first and then once I’ve done that basically then I look for Passive Investments like I in anything passive I’ll invest in my friend’s hedge fund or um invest in something that just returns you know very small over time just very safe but the appreciable or the appreciable access are like um some people do real estate I don’t want to do real estate because it’s just I got this advice earlier just hey you’re a Trader just just do trading you know that’s going to take care of everything um you don’t want to split your attention between like you know dealing with tenants or like uh you know whatever like that and to me that made a lot of sense I just don’t like dealing with people so I usually hire like a third party operators so these are companies that are just like they take care of the the manual labor and you basically just um put up the cash and then depreciate whatever asset it is so one of the assets I did was ATM machines and okay ATM machines over time basically over 8 years they depreciate so you can write off the cost of that and then they return a passive income over time so that’s just one thing I do and um there are many more but it really depends on like your liability if for example your liability is kind of low I would just kind of like stay in cash put in the hedge fund something liquid that I can pull out and then if you have a high liability then you would then like put it into Investments That reduce your liability overall so that that’s like that’s like a whole thing in in California like if I wouldn’t go through all that effort if I live somewhere with less taxes right that’s interesting I never ATM machine is is rare I don’t hear that a lot yeah I also I also do life insurance oh okay okay I I do that too in Canada yeah it’s a big deal yeah yeah do you after so many years of trading almost a decade now how do you stay passionate and like do you do you have any other passion project uh Ventures outside the trading so I’m I’m like I think in trading you have to be really focus on the performance aspect of it you know the the feeling of improving I think that’s more motivating than like any result so uh you kind of have to train your brain essentially to it’s really cheesy and cliche but you have to fall in love with the process of trading and for me the process is irrespective of the money cuz I know the Money Follows good pra process yeah so as as long as I feel that I can improve and you know I make this joke with my friends it’s kind of like you’re just learning every single day it’s like no matter how much experience you get there’s always something new that you haven’t seen it’s like it’s just infinite amounts of mistakes that you’re making or just things constantly reoccur with you it’s just like you know much like the market cycle you also have a cycle of humility and uh and just overall greed and just like a massive ego it’s like um managing that cycle is really really important so for me it’s kind of like no matter how much you invest into like let’s say coaching or um therapy or whatever it’s kind of like man you always make the same mistakes eventually so for me the constant Chase of like trying to reduce the impact of those are just kind of kind of going after it um improving the performance that’s for me is just the most motivating aspect of it and as long as I can constantly improve um even if it’s just 1% like every month uh for me that’s enough and eventually you know I think that uh trading is just that kind of infinite game it’s I don’t think you can really Master it necessarily but if I did let’s say master my strategy then I would just move on to another strategy um I like to play other games like competitive games still on the side and see how well I can do at that so one of the one of these games I was playing is like a it’s like a mobile game and uh I I just play it while I’m trading cuz it’s easier to just detach from the market wait while you’re trading like your phone here and then yeah okay I I have a lot of time to just play games too so oh okay like I just got rank one in the game I was playing and it’s like I just like competing at something on the side that to me is like really fun cuz it’s it’s also very um it’s also for me like as a gamer uh you have constantly have teammates and the teammates let you down all the time I mean as as a leader you you you take responsibility that you’re like okay it’s my fault that I need to improve like don’t get me wrong I I take a lot of respons but some things are just BS so okay I have a lot of Trauma from like dealing with people who suck and so I look for like single player games where I can do really well trading is a single player game I can do really well um I have like a huge chip on my shoulder from just you know feeling not good enough because you’re in a team and you’re not getting the results you want but knowing you’re putting in like the effort and you know you’re like doing the work that you need to do and so when I um play all these games like kind of my own like getting to a good spot is something that I really strive for because it constantly helps me just um understand like okay you are diligent you are working hard you’re doing the things you need to do and that just helps reinforce kind of my trading as well because I’m like constantly getting this um this boost of like oh I can learn a new skill I can do something and succeed at it and as long as it’s something within my control my total control then uh yeah I will do well so I just jump from game to game and try to see how far I can get and uh that’s kind of like the thing I do on the side so do you think you’ll always be trading no I I wanted to retire back in Co oh relativ relatively soon but uh for me the motivation is just knowing that there’s such a high ceiling and being exposed to people who have done just way way better than I have just really lends its way to just having this huge motivation just like that’s possible and I want to achieve that first to the best of my ability even if I get halfway there or 25% of the way there if that was the best I could do then that then I would have no regrets about it but um in terms of trading it just it’s really stressful honestly it’s a something that I wanted to slow down on I’ve start sometimes I take off like Fridays or Mondays here and there cuz I and do something else outside of trading just go outside play some sports or whatever and for me that is a better way to live I think being attached to maret is something that I’ve gotten used to over time just always here every single yeah on the west coast you’re up early early early in the morning what time do you wake up sometimes I’m up like 4:00 in the morning okay and um it just it’s just too much and I know like if you want to be there the beginning of pre-market is like 1:00 a.m. and for me that’s not that’s not feasible I don’t want to do that so uh just constantly having a sleep deration yeah no but uh I think trading is just nonlinear you know you will be able to if you do it well you’ll be able to retire earlier than most profession the money is much more significant it depends on if you’re putting into like we talked about the Investments it’s just those are things that I know will return over time that you know you can you can just put it into something more safe it will it will grow it’s not a big deal um trading as a sport it’s fun but I wouldn’t trade if there was no money in trading right like some people say they love trading but you wouldn’t trade if there was no money so we’re tra ultimately we’re trading for the money if you get to the point where money is less of a deal for you and you can put it into smart Investments or things that will just grow over time then I don’t see a reason to constantly go for it and I’m not the kind of person who feels like I need to have like infinite money to accomplish all these big goals and things like that uh for me it’s just my goal with money is just I never want to worry about anything like if I want to if I want to fly somewhere I don’t want to think about the cost if I want to buy something I don’t want to have stress out about it and so for me like if if I have that which I do which is it’s more than enough for me I don’t feel the stress um but yeah at this point it’s just all about the potential until I feel I hit my potential then I I won’t stop do you think it’s still a good time for new traders to get started with trading and like if they are starting out are is there three tips that you’ll give them it is it is definitely a good time to start trading it’s it’s never been easier to learn the things you need to learn because the resources are all there it wasn’t like this before there’s so many good Traders speaking out now you know you have like back then you you would seldomly hear he from a good Trader or you don’t wouldn’t even know if they’re a good Trader now everyone’s sharing their thoughts constantly there’s I mean there’s like a million resources out there now and so for that reason you can accelerate your growth and there are people who are willing to share the information so that’s number one why it’s really nice but as a tip I would basically um it it sucks as you’re a YouTuber but like I would kind of get off YouTube Okay the reason why is because I I actually think Twitter is actually a really good resource probably the best resource for me because you can find individuals and maybe maybe it’s like this maybe it’s okay for YouTube but what I’m saying is like on on mass there’s a lot of noise yeah whereas how I mentioned the very beginning you like I found one person or like two people that I just really dug into it and that did way more for me than anything else so if you kind of like resonate with someone or some kind of uh Channel whatever just go for it and um there is a natural element of Market tuition where Traders it’s it’s a perilous Journey there’s a lot of a lot of traps and so you like find someone you think they’re legit and then U you learned or not but at at least you learned what not to do or you learned something through that process and eventually you’ll find something or someone that really resonates with you and works and so that’s the main thing to do um you know I’ve tried to help like friends and family learn how to trade and stuff like that and a lot of times they kind of like don’t follow through even though they could potentially have very good like mentorship and I think ultimately what I learned is that people who have a passion for this people who who are self-motivated and want to make something better for themselves or like really love the process I think you have to really lean into that because not everyone has that I mean they may have the they may have the mentorship or whatever available to them but the drive is something you can’t replace and so I think people who have to drive are in a much better position to succeed at this game because the statistics that you know only a certain amount of people succeed at this um applies because there’s a broad amount of people who don’t really have that motivation or like love for the game or really respect the game and don’t work that hard yeah they don’t work that’s most people but if you are one of those people your chances are actually much bigger than that because you’re part of a small group of people who actually want to succeed I think it’s about 1% of 1% of people actually really want to do this seriously and put in the work so if that’s you I would definitely do it because trading is one of those things where it’s so much better in terms of income than like almost any other profession and it’s a skill you can learn on your own at your own pace you could put in you know 20 hours a day if you wanted and do this for years and if you hit kind of those timelines that I’m talking about like 1 2 3 years putting full focus into it like you will be able to make enough money to quit your job probably and um it only goes up from there I mean over the course of a lifetime just a compounded skill of trading it’s something that everyone has to deal with I mean most people have retirement accounts family friends um it’s just an very important skill in general just to understand how the markets work you might as well be proficient at it and take advantage of it because there’s so many opportunities what would be like a tip for the traders who are looking to develop a a simple strategy to at least get started right okay okay so the biggest thing actually is to put yourself out there and start networking so there are plenty of opport let’s say for example every year there’s Traders for cause yeah and both of us have been there before and it’s just a extremely good opportunity to meet other people who are serious about trading and one of the biggest boosts for me in trading overall has just been to connect with people who are interested in the same thing as me and we pull our resources together so let’s say you have a group of people four or five guys or girls and you come together and you like say hey I learned from this guy or I learned this thing or I read this book here’s this information I picked up here’s this strategy that I’ve been working on um when you have all these people together you can really accelerate your learning curve and kind of lean into one thing that makes more sense to you and then once you’ve done that you just kind of keep expanding your network in that Niche and just keep working with people who are serious and I think if you do that you will find the information you to find it’s again it’s never been easier and the people who are very serious actually more or less like we’re a very small community so you’re going to you’re only really a degree of separation from anyone you know it’s like for example you know ba I know ba ba was there way back in the day um you just interviewed him and like it’s just everyone knows Tim syes Nate came from Tim and IU and like um you know it’s just literally everyone knows everyone I think yeah at this point so it’s a small community in in small caps but even even so if you’re not trading small caps like let’s say you’re not interested in shorting there are people like Kola Maggie who’s like nine figureure Trader sharing his strategy literally and you can learn from his community there are people who stalk everything he does who takes notes on all his information record all his streams and everything like that and there’s just so much information I’ve seen it being applied to lots of different things even crypto I’ve seen like my friend he applied kol Magi strategy to bitcoin and that’s working out for him so it’s like you know it’s not to say like oh he only trades this I can that’s all I need to learn like a lot of times with Traders sharing Edge and strategies there are like Universal principles that you can apply towards something that interests you or something that you’re developing as well so don’t feel like you have to like find that exact right person but rather find the credible source that has good information you can transfer because trading is mostly parallel to one another unless it’s like something really crazy like options you know the options I don’t understand that there’s so much to the gamma V Theta and all that I’m like okay well I trade stocks I just buy and sell so okay you know it’s just easier for me to understand but you know yeah thank you so much ran for today’s interviewing and a lot of insights that you shared with the audience where can people find you yeah thanks for having me you know um on uh Twitter you can follow me at brle trades there you’ll find basically everything or you can just go to brly trades.com there’s a lot of different links like my blogs and my stuff uh the the last thing I want to say is just I basically briefly discuss these topics because I want to just introduce you guys to it but um there’s so much more depth and Nuance to it that you’ll find on my feed so please visit that especially if there’s information that like kind of pequ your interest and just look it up there will be so much more on those topics guarantee thank you so much Ryan thanks so what do you guys think about this systematic trading approach as trading became more and more popular I think a lot of retail Traders should definitely incorporate this analytical approach to gain the Competitive Edge even if you’re just a Trader starting out you can still start tracking the key criteria of your strategies and learn how to back test them with data if you want to continue learning from experienced Pro Traders then check out this playlist over here