The Three Fallacies of Trading

The three fallacies of trading digs into why traders struggle and certain 'mantras' that just aren't true. In fact, not only are they NOT true, they are harmful to most traders success.

#Trading #Stocks #Money

[FailFlopFly-SalesforceImports]

Jared is providing the best day trading content on the planet! Pay attention, stay consistent and apply the principles presented. Cheers!

[szavoda]

Great video, Jared! Your psychology is spot on and hits home. I'm like .... how do you know what I'm thinking after I hit BUY.... HOW?!! You've been there for sure. Thought I was doing pretty well for a new guy .... 8R - 10R a month for 4-6 months. Was batting 50%-60% with 1.5 - 2.0R gain per winner, and about 1.0R-1.2R per looser (Slippage is REAL). But suddenly I'm struggling. This month I'm doing the same patterns and only batting 30%-40%. To make matters worse this month I've foolishly inserted .... 3-Bar-Plays into my trading plan at full risk (with no backtesting) as well.... gosh you make them seem so simple! Haven't had much success with those yet or maybe not enough data to fairly judge. Don't want to chase my tail but considering dropping my risk level down substantially for awhile. Yet, the gambling devil sits on my shoulder. He keeps whispering that changing my risk level is just another way to play chase... so I'm also considering riding this choppy time out and hoping its just normal to have really bad months sometimes.

[motogrey]

Best teacher on the web. Who else exhibits the moment by moment mental-emotional roller-coaster, we all ride? Looking forward to open house tomorrow.

[mrupholsteryman]

I have been following you as well as a few others. I was somewhat profitable on paper trading....and then got some money (1000) into a Webull account. Turned that into less than 600. 😞

I have learned that perceptions in the market change as quickly as human emotions.

I have been buying dips and then one of the places went chapter 11. So now I'm waiting to see if there IS a buyout... The red far outnumbers my green. Haha! Still learning.

Thanks for sharing your time!

I could have submitted into the "when will the insanity stop" when you had no submissions. I was just not wanting to submit it busy life. And priorities. Haha!

[rickr]

Hi, I have been watching lot of your videos and in conjunction with my previous knowledge I am trading...I am pleased to say, that you are one of the most blunt and straight forward trading specialist I have come across and I respect that a lot. I am improving a lot compared to all the BS videos who just show how they make a bunch of money, yet lack the interest to teach. I thank you from my bottom of my heart !!!

[mohammedalmuqwishi]

Based on my experience, when the stock hits 1R,
I move the stop loss to above breakeven 0.25R. OR. Sometimes I sell the third of positions at 1R, then I move the stop loss of the remaining positions to breakeven.
My personality can not handle failure entries, although I tell my self "the stock has not run as expected, then it's not worth to lose and be a gambler"
Also, That rule can not be applied once the VIX (Volatility Index) is
Less than -1.5% (Overall Bullish Market Controlling) the stop for the long side would not change.
OR
Greater than 1.5% (Overall Bearish Market Controlling) the stop for the short side would not change.


Thank you, Jared Wesley.
You're a very honest trader, unlike most fakes youtube tutorials. I can tell my trading personality and improvement have gained from what you're lecturing.

[ryanrobinson]

Another stellar video from Jared, exceptional quality, and the content is 100% valid for every trader out there.
I've really struggled lately in the USA markets with Loss Vs Gain mentality and I'm trying to work on myself to improve my overall results.
Choppy markets & increased volatility / random price movements can lead to increase fear, naturally..

I trade / specialise in the S&P 500 futures index and don't really look at fundamentals at all, but with the USA election and the new rapid Covid infection rates, it's very hard to trade currently. I think the current conditions does make it harder for most people to adopt good behaviours, as fear is rampant generally right now, let alone in our normal day-day trading routines..

It's fairly common I out manage myself out of a good trade, but watching this video back it's clear that I'm holding my hands up in shame to a lot of those bad behaviours.
I must admit I think the reason I do better on the demo account, and probably most people do, is that you don't tend to micro manage your trades.

Having said that I do move to break even on my trades, if my profit target is reached to 85-90% I move to break even every time. If it rolls over and stops out I'm happy to be out that trade, personally.

It's stopped a couple of trades from a full stop out, recently, even when they reached 90% of the profit target.
I normally scalp out 3 points (12 ticks) with a 10 tick stop loss, I try to go for a minimum of 1-1 r/r but it's not always possible, especially when the signal bars are currently on average 7-8 points long!!

Before covid-19 the bars on the MES chart might be 2-3 or 4 points long, so the r/r is usually always the same. This year has been harder to get decent r/r unless we shoot for higher targets or go for runners on each trade, using an all or nothing type approach.

[raulhinojosa]

Jared did it again.... Traders! Excellent video as always

[aboudy]

Would be traders, take note. Quite simply the best trading lecture to date on the internet. Solid gold Jared. Priceless content. Thank you.

[thehoov]

A mini lecture on how to back test would be great. Are you importing data into some software or are you back testing it manually..? Can imagine manual back testing of 1000 trades would take a very long time.

[netbeuiprotocol]

Best trading content on youtube by far, makes hump day a real treat, TY Jared!

[dooleyh]

The antidote to Fear of Loss is Testing. Just keep trading the same pattern over and over while following a written strategy and the fear will go away. Confidence that you know the odds of the trade will get rid of the fear eventually.

[gilbert]

Hi Jared, thought I would use a minute to leave a comment.
Super relevant video - Think I will make some kind of graphics to put on my wall, to remind me that
the Hope for gain should be bigger than the Fear of loss - Trusting my preparation.
Besides that, to have someone like you, using time every single Wednesday to offer free education on
such a high level, is a true gift to all us "intermedia" traders. The energy and preparation you put into this is admirable.
Recalling some criticizing the audio quality on the video from the airplane. What a bunch of spoiled kids :-)
BR JGK

[SIXteenINdaClip]

The quote you're referring to is "If you repeat a lie often enough, it becomes accepted as truth." Stated by Hitler's minister of propaganda.

Great lecture as always. I really enjoy the more psychology focused lectures.

[hvtrader]

For those old enough to remember, I harken back to the days when Southwest Airlines’ market cap exceeded that of all other airlines combined! As “fundamental” investors, LUV represented our entire airlines industry allocation. So I don’t bother one whit with fundamentals as an active trader (it’s purely technical appraisels for me!). Great job Jared, keep up the excellent work!

[anibaltorres]

this video is potent with good information, thank you Jared

[zoesu]

Another awesome video, thank you Jared. You've been teaching a lot where to buy and how to set up the stop loss. That'd be great if you can make some videos about where to sell (profit) as well, thanks.

[djlovenlive]

Was a BRILLIANT Lecture... Have SUBBED and HIT THE BELL... First time I've watched your Youtube Content, very Impressive... I just Hope I can Learn from your Style of Teaching... Thanks

[dannyjiujitsu]

Awesome video Jared. Thanks for blessing us with these every week.

[Xemptuous]

Phenomenal lecture as always! Your lectures are getting better and better over time man. I can gladly say you are up there as one of - if not the most - influential mentors/teachers I have had.