So what I want to talk about today
is, does trading really work?
Because sometimes it's feels that
you're going one step forward
and then two steps back,
doesn't it?
See, this is why I have a private
Facebook group, and I want to show
you something that Rosemarie
actually shared yesterday.
Let me jump to the screen here.
So you see, this is my private
Facebook VIP group for those
who already have the PowerX
Optimizer or are part of my
Mastermind group.
And here's what Rosemarie said, "How
is everybody doing?
I got out last Friday losing most
of my gains, and yesterday
I got stopped out of a loss during
the same day and today
I put on three trades,
two long and one short, and they're
all in the red.
Is everybody in the same boat or
staying out of the market?" What is
going on here?
You see what what Rosemarie shared
here, does this sound familiar?
This is where sometimes it really
feels that you're not moving.
And let me show you what's
even worse. This is where some
traders then look at some charts
and they look at these percentage
movers.
See this where they say, oh, my
gosh. So today there's
CARV that moved up all
the way from $2 to
$22, right?
I mean, these are these so-called
penny stocks, or you have COHN
and other stock that was trading at
$4 moving up.
And you see the percentages here
making 300%,
137%.
And when you see this,
you're wondering, "why can't
I do this," right?
I mean, why do I feel like
like Rosemarie here?
Right? That taking one step forward
and two steps back.
You see, doing something like this
with penny stocks it's like winning
the lottery.
Have you ever heard of CARV before?
And you see they've shot up today
and right now they're coming down.
And this is what usually happens.
What goes up must come down,
especially when it has these
parabolic moves here.
So I want to share a little
bit of what I have experience in
all my years of trading.
You see, in order to trade and
to trade successfully, you must have
two things.
And the first thing that you need
is a solid
trading strategy.
Now, we have talked about this
before. What exactly do you
need in a trading strategy?
Well, first of all, a trading
strategy need to first tell you
what to trade, right?
I mean, what stock, or what option,
or what binary option, what future
market doesn't really matter.
It also has to show you when
exactly to enter a trade, and
then we need to know when
to exit a trade.
And when it comes to exiting you can
either exit with a profit, yay!
I mean, this is why we are trading,
or you're exiting with a loss,
right? I mean, both ways are
possible here.
And this is what a solid trading
strategy does for you it gives you
these things. Now, as you know, I
personally like to use the PowerX
Strategy.
That is the strategy that I
like to trade here, and this is
exactly what also Rosemarie
is trading.
Now, here's the second thing that
you need, again, based on my
experience, you need to have
confidence in your strategy.
We talked about this in another
video because if you don't have
the confidence, you start
chasing shiny objects, you jump
from one strategy to another or
from one newsletter to another, you
buy more and more tools.
At least this is what happened to me
in the beginning when I was lacking
the confidence.
So confidence
is absolutely important.
And the key question is here,
how? People ask me all the time,
"How do you have so
much confidence in
your plan?" And here's
my answer.
I know my
numbers. I know what
to expect.
Okay, so let's write this down, I
know what to expect
and I'm also knowing what
is happening right now.
And I'll show you my numbers here in
a moment.
You see, for example, what to
expect. As you know, I'm using
the PoweX Strategy and I
am using the PowerX Optimizer
to find the best stocks and
options to trade.
That is the software that I use
every day I'm actually using it
at night to find the best
trades and then I confirm it in the
next morning.
And this is what I use to trade
only, what, 15?
30? At most 35 minutes a day.
So when I run it, I look for
certain stocks and I look for stocks
that give me at least
60% return on my investment.
So let's write this down because I
think it's super important.
So what to expect 60%
return on investment.
This is per year, this means I'm
expecting 5% per month.
Now, again, I'm always happy
when I'm surprised in a positive way
but these are my minimum
requirements. So what else
am I expecting here?
Let's take a look at this.
I'm expecting a 40%
winning percentage.
These are my settings, again, your
settings might be different, your
strategy might be different.
But this is what exactly I'm
expecting. So let's write this down.
A 40% winning percentage,
so this means 6
out of 10 trades are
losing trades.
Losses, okay.
So this is very important because I
show you some real results that I've
been achieving here trading over the
past month in just a moment.
But let's talk about what
else am I expecting.
So what else I'm expecting, it's a
profit factor of at least three.
So let's talk about this a
profit factor of three.
Now, what does a profit factor
of three mean?
It means that for every dollar
that I lose, I expect to make
at least $3.
So this is my ratio and again,
yours might be completely different.
But that's what I'm looking
for. So these are
my expectations when
trading the PowerX Strategy.
So let me show you some real
results, because as you know, I
opened an account with tastyworks.
Small account, I
put $20,000 into the account
because I wanted to see how quickly
can I grow this account.
And yeah, thus far, the results
are a bit underwhelming.
So I want to show you some real
results on this particular account
that I have been trading with
my trading plan.
And I'll show you my trading plan
here in just a moment.
But I want to show you what exactly
happened here on this account.
I want to show you the statistics.
So, as you see, since May 19th,
so for the past month I've
had 192 signals.
I ruled out a few stocks according
to my plan.
I had 41 triggered
and 31 filled.
So this means over the past
four weeks I've taken 31
trades. Now out of these 31 trades 9
trades right now are still open.
So I currently have 9 trades in
my portfolio and I closed
22 trades.
Now out of these 22 trades
I closed 6
with a profit and 16
with a loss. Now, I've just shown
you what do I expect, first of all,
6 out of 22 trades is 27%.
So right now, my winning percentage
is 27%.
I'm expecting a 40% winning
percentage, right?
This is what we talked about here, a
40% winning percentage and this is
why I also wrote it
down here. So right now, the
strategy is underperforming.
And this is very important to
understand, because when you are
trading a strategy and you're
expecting a winning percentage of
40%, it means that
in the long run, and usually based
on my experience, a good number
of trades to look at is
40 trades.
So you want to see this after 40
trades. So right now, as you can
see, I only closed 22 trades.
So it's absolutely normal for every
trading strategy to have times when
they're underperforming and then
they're overperforming.
You see, when trading, you don't
have this straight line
that goes up from the lower
right to the upper left, right?
I mean, it doesn't work this way.
There are dips in there
and you will see that sometimes it's
just going sideways or maybe even
down and then it is taking
off. But let's talk about some more
results here.
So right now, definitely
underperforming. So I expect it over
the next few weeks to overperform.
But you see, before we talk more
about the results, let's let's talk
about what is happening right now in
the markets.
So I'm looking here at the S&P 500.
And at this time, looking at
the market here, you see, yes,
we have been moving a little bit up
and right now, markets are
definitely nervous because nobody
knows. I'm doing this video here on
June 17th of what's happening
with this nasty virus.
I mean, we have a spike in cases
in in Florida, Texas, Arizona
but then overall, it seems that our
economy is rebounding, so these
are definitely tricky times
to trade. I mean, these are not
easy. Anyhow, so this
is why right now it is
underperforming.
But let me also show you a little
bit more, because, again, the
winning percentage is only one of
the things. What I also expect is
that I have a profit factor
of 3 to 1.
And right now, this is also
not quite there yet
because you see the average losing
trade is $200.
And this is super important, I'm
keeping my losses small here, right?
Again, think about it, it's a
$20,000 account.
So $200 per losing
trade is 1% and the average
winning trade is $433.
So right now, as of right now,
my loss after four weeks of trading,
and I told you I'd give
it to you straight, I wish I could
tell you that I'm always winning
and I'm really, really good at
trading. And after four weeks of
trading here, I have a loss of
$600 in a
$20,000 account. That is what, how
much?
3%.
That's nothing, especially
if you look at the results here and
you know that the average winning
trade is $433.
So this means basically that one
winning trade is getting me close to
break even and a few more winning
trades and I'll be nicely
up. And I do expect more winning
trades because, again, I have been
underperforming.
By the way, I want to show you this
here really quick.
In my company, Rockwell Trading,
I mean, obviously, we have a team
there and some of the team members
are trading.
So one of the team members who is
trading is Alex, who is
responsible for all the technology
for the website, for the
backends and everything.
So, Alex, I just want to show you,
we had we had a conversation
yesterday actually it was
through Skype.
And I'll let you read this
here because Alex said,
"I'm trading right now and I'm not
doing well." And I said, "Well, I'm
not doing well either.
Look at this. Check the stats, 22
losing trades, only 6 winning
trades." Exactly what I have just
shown you.
And then Alex says, "Yes, I'm
surprised you're only down
$600." I said, "Why you're
surprised. I'm keeping my losses
small. This is the secret here
one winning trade will bring me back
to break even." And this is
when Alex actually said, "I'm
surprised that I'm only down
$155 a month" and you see, "two more
winning trades and I'll have a
decent profit." And you see
this I believe is the key.
You have to keep
your losses small.
So is it actually possible
to make money with trading?
I've been trading for a long time.
Can't remember how long, probably
more than 20 years.
I'm sure that it's more than 20
years. And I can give you my
answer, yes, it
absolutely is possible
to make money with trading.
And there's a few things that you
need to consider.
Number one, trading is a marathon,
not a sprint.
When you see these crazy claims, how
you can turn a thousand dollars into
a million dollars, or never
have a losing trade again, or make
1,000%, run away.
I mean, I'm here as
real as it gets.
I'm sharing my real results with
you, this is my account.
The small account that I'm trading
right now, I have a total of 8
accounts, it's one of the accounts
that I'm trading but the results
are pretty representative of all
the other accounts here.
So this is number one.
Number two, is it possible to make
money with trading?
Yes.
Stay focused.
Don't jump from one trading strategy
to another one.
That is one of the big mistakes that
I made in the beginning of my
trading career.
I mean, this is where I started
trading a strategy and then it
underperformed, as it does right
now, right?
And then I jumped to the next
trading strategy, and then I jumped
to the next trading strategy.
And does this sound familiar at
all? If I'm not the only one type in
a comment and say, "Yes, that sounds
familiar" or give me a like here.
Anyhow, so the third thing
is I think it's absolutely important
to stay disciplined.
So let me tell you a story
really quick. So you know
that my kids are sailing.
So we go to to regattas
all over the country and a few
years ago, we went to a regatta in
New Orleans.
And this is where in the evening
after the first day
one of the dads said, "Hey, you
know, what? Do you want to go to a
casino and play, gamble a
little bit?" And I said, well, not
much of a gambler, but sure,
why not?
So his name was Tony.
Tony and I went went to a casino
and I decided, or we decided
to play blackjack.
And I think we had like
$500 each where he said, "Hey, let's
just have a great evening." Could
have been $200, not quite sure.
Here's what happened. So Tony had
a few losing hands, and after a few
losing hands his chip
pile was down to half
the money that he had.
Now, I'm very conservative
when it comes to gambling.
Really not much of a gambler, I
barely know the rules of blackjack.
Anyhow, here's what happened to Tony
after he was down almost
half of the money.
For the next round he was all
in, right?
So no more discipline.
All in.
Does that sounds familiar?
What do you think happened?
It was another losing hand and so
we left the casino and Tony wasn't
so happy. But you see this is what I
see happening to traders.
After a few losing trades, often
they do something stupid.
I did it in the beginning of my
trading career. In the beginning of
my trading career I clearly
said, you know what?
After a few losing trades now let's
just increase the bet size and try
to make back the money that I lost.
Have you ever done it?
Because if so, you know exactly what
happens. Anyhow, so it is super
important to stay disciplined.
How do you do this?
So how do you stay focused?
How do you stay disciplined?
This is where we go back to
having confidence.
And you see it's a it's a full
circle. And how do you have
confidence?
By knowing what to expect and
by knowing your numbers.
Super important.
OK.
Now, this is why in
order to to gain more of the
confidence this is why I have
this this private Facebook group for
my customers. So for those of you
who have the PowerX Optimizer
or are a member of my private
Mastermind you can become part
of the Facebook group.
So that's absolutely fine.
This is where we support each other.
Anyhow, let me ask you this.
Has this been helpful, just to
understand a little bit of what's
happening right now?
And if you have a losing streak,
it might not necessarily be new to
you. Know what to
expect and know your number.
And if you found this helpful,
please do me a favor share this
video. Because I feel
many traders may need to
hear this. So do me a favor right
now, share this video.
And there's probably a few other
videos right here on my channel that
might help you to become a better
trader so feel free to
watch any of the other videos right
after this one ends and I'll see you
in the next video.