Yesterday, the markets were in a bit of a meltdown.
And when things like that happen, traders can start to panic.
You might've been in that situation yesterday yourself, or maybe
you've been in that situation before, you know, those situations where
you're stuck with a position open.
And you're not sure what you should do because you're not entirely
sure what's actually going on.
You start scrambling around reading the news, searching Twitter, digging up random
sources here, there, and everywhere
to try and get a grip on what's actually causing the volatility
and how long it might last.
And ultimately whether you should actually close the position, that's
drifting more and more into a loss.
Now that's a really costly situation to be in.
Even if you end up escaping with a profit.
It costs mental energy, emotional energy, time
and ultimately over the long term, it's probably going to end up costing
you money in the markets as well.
So yesterday gave an extreme situation of that, an extreme example, but
actually if that's the way that you trade
you're likely to be doing this on a much more regular basis, but just on
a smaller and less noticeable scale.
So I want to let you in on a little tip here, because I think it's important that
we learn from these sort of experiences.
If you had a bad one yesterday, then you need to take some lessons from it.
So here's a little tip that will help you throughout your trading career.
So when you're learning to trade, you obviously have to put work in.
No one is going to succeed if they don't put in the work during the learning phase.
Right.
But actually after that, once you know how to trade and you're in the live
markets, there's an inverse relationship between hard work and success.
Now I'm not talking about people who are just gambling in the
markets and put in no work at all.
Obviously they're not succeeding on a regular basis anyway.
I'm talking about people who take trading seriously.
When you're risking money in the markets, you have to work harder when things are
not going well than when things are going well.
Think about it, when things aren't going well, you have to figure
out why they aren't going well.
And then you have to work harder to try and fix things.
You have to do all sorts of mental gymnastics to know whether to
scale out an exit wherever else.
But if things are going well, you don't really have to do much at all.
You execute your prepared plan in line with what you're seeing
in the markets and that's it.
And this is where a lot of traders get things wrong.
I don't care what method of trading you're using.
The better prepared you are each day for your trading session,
the better you're going to trade.
It doesn't matter if it's with the Duomo Method or something else.
That's just a core principle.
So if you dedicate more time to making sure you're fully prepared, you're
going to get the best out of yourself.
But whenever I do live streams or videos with our members, or with you guys talking
about things that you should do regularly to be better prepared or to improve your
trading, you know, routines that you should commit to every day, things
that you should be tracking or optimising.
I get the same response a lot of the time, which is...
That sounds like a lot of effort. That's a lot of work.
When in reality it's probably no more than an hour each day.
And these are relatively easy tasks.
But the alternative, if you don't do these things is much worse.
It's just like what Naval Ravikant says, hard choices, easy life.
Easy choices, hard life. Traders choose each day to rush on their
preparation and to procrastinate on things like tracking and optimisation.
They just want to jump straight into the markets.
They see it as taking too much time and effort.
It's taken them away from what they should be doing, which is trading.
But actually, it leads to them saving time and effort in the long run, as well
as making them much more profitable
if they do take these steps each day. Take fundamentals
for example and financial news.
So lots of traders yesterday would have been wondering what the hell is going on.
Maybe a lot of them would have been spending their entire eight hour,
or however long, trading session
diving into the news, reading every article they can get, trying to piece
things together and understand what's going on. But ultimately being left with a
huge amount of uncertainty and not having actually lead to improve profitability
for their trading. Because they didn't stay on top of it over time, they paid
the price. Easy choices, hard life.
Now over the weekend, I was talking about this with some of our members
and I explained my process when it comes to staying on top of the
fundamentals and the financial news.
Like for example, the video we put out on our second channel
Market Movers yesterday, covering the situation with inflation, the
federal reserve and bond yields.
A video like that or the information that goes into it, that doesn't take a
huge, deep dive research session. That just takes a small amount of time each
and every morning and throughout trading sessions, just to stay on top of things.
When you make a simple task, like going through the financial news, a daily task,
part of your routine, it actually becomes easier and quicker each time you do it.
You know what you can skim read, you know what you can skip,
you know when something is important or when something's irrelevant.
It also means you know when something is worthy of a bigger research project
because it might end up being an opportunity, or when you need to step
out of the markets and be more cautious because something's going on like yesterday.
Now most days I only spend about half an hour or so, but when there is something
bigger, I can invest much more time into it and it will pay off in terms
of a bigger opportunity and ultimately more profitability with my trading.
But when you don't do it each day, you'll be inefficient and slow.
You'll have to read everything because you don't know what's important or not.
On days like yesterday, you don't have good foundations of what's been going on.
So you have to read everything to try and piece together the situation,
rather than just knowing, and only needing that little snippet of information
to have that final missing piece.
So by avoiding the daily task, you make your work harder in the long run
and you miss all the good opportunities.
Or when you think about preparing properly before a trade, if you spend
time preparing your plan and where you're going to be making your decisions
and what you'll be making them based on, you don't have to be sitting at your chart
sweating over every movement the price makes
and deciding what you should or shouldn't do.
So you can spend less time babysitting trades,
less time trying to process information and think about what the action you
should be taking is, and more time living, you make the hard choices up
front so that you can live an easier life.
And if you want to know more about setting that sort of plan, check
out this video, we'll link up here.
It's from a little while ago now, but it's about a simple rule that you can follow
with your trading and decision-making to get much better outcomes.
Like what I just said.
But anyway, that's all for now.
It was just a simple message for you today
as a reminder that it might seem counter intuitive, but putting in the
work upfront rather than being lazy and procrastinating actually ends up
saving you time and effort and makes you much more profitable as a trader.
So hopefully if you did have a bad experience yesterday in the market
meltdown and any others that are to come because they inevitably will,
one day you'll allow this to be one of the lessons that you gained.
So hit the like button
if you agree with what I said, or if you're going to start doing this.
If you learn something from this, please do hit the like button.
And remember hard choices, easy life, easy choices, hard life.
I know which one I'd prefer.
If you want to know how I trade and a source of things that I
recommend to improve your trading,
check out the free training in the description box or linked
at the end of this video.
Thank you so much for watching.
I hope you have a great trading week,
whatever is left of it
when you watch this, and I'll see you soon.
Take care guys.