1 00:00:00,080 --> 00:00:03,240 Speaker 1: What's the trading tip of the week. 2 00:00:05,400 --> 00:00:09,319 Speaker 2: I keep getting pushed back on these contract sizes. When 3 00:00:09,320 --> 00:00:12,760 Speaker 2: I did episode seventy with them, I want to be 4 00:00:12,880 --> 00:00:15,640 Speaker 2: clear because I see what kind of movershot is, so 5 00:00:15,600 --> 00:00:16,640 Speaker 2: I'm be in the same move. 6 00:00:16,720 --> 00:00:17,720 Speaker 1: I feel you, my brother. 7 00:00:18,440 --> 00:00:21,680 Speaker 2: When I did the episode in twenty twenty, that was 8 00:00:21,840 --> 00:00:26,200 Speaker 2: my sixth year trading futures. Not everyone wants to trade 9 00:00:26,320 --> 00:00:29,840 Speaker 2: one to three contracts forever. At some point you're going 10 00:00:29,920 --> 00:00:32,200 Speaker 2: to have to size up in order to have freedom. 11 00:00:32,320 --> 00:00:35,080 Speaker 2: If you're new here, my rule of thumb has always 12 00:00:35,080 --> 00:00:39,519 Speaker 2: been three hundred practice trades and then go live. But 13 00:00:40,440 --> 00:00:43,320 Speaker 2: you can't put a boskie out on your wall trading 14 00:00:43,760 --> 00:00:47,239 Speaker 2: one to four contracts put in chat. I deserve to 15 00:00:47,440 --> 00:00:53,880 Speaker 2: size up to become free practice like crazy. But once 16 00:00:53,920 --> 00:00:55,880 Speaker 2: you get two years in, you need to be in 17 00:00:55,960 --> 00:00:59,760 Speaker 2: that ten to fifteen contract range in order to make 18 00:00:59,760 --> 00:01:02,520 Speaker 2: them moves that you're making in the market worth it. 19 00:01:02,560 --> 00:01:05,360 Speaker 1: Trading has considered a risk advisor. 20 00:01:05,440 --> 00:01:08,240 Speaker 2: You have to love this game inside and out and 21 00:01:08,319 --> 00:01:10,800 Speaker 2: be dedicated to it. But you know, it really sucks 22 00:01:10,840 --> 00:01:13,240 Speaker 2: catching a seven or eight hundred point move on a 23 00:01:13,360 --> 00:01:17,000 Speaker 2: NASA CAN now and you're a one contract in, you 24 00:01:17,040 --> 00:01:19,479 Speaker 2: may have caught one of the best moves of your life, 25 00:01:20,160 --> 00:01:22,680 Speaker 2: and then when you transfer the money, it doesn't. 26 00:01:22,480 --> 00:01:25,520 Speaker 1: Feel like you had any significant value. So you gotta 27 00:01:25,560 --> 00:01:30,000 Speaker 1: size I want to know, it's very important. I was 28 00:01:30,000 --> 00:01:31,400 Speaker 1: going to for you, but I'm not going to pose 29 00:01:31,440 --> 00:01:33,279 Speaker 1: you because this is too important to play. Go ahead. 30 00:01:33,800 --> 00:01:41,679 Speaker 1: This is sid you gotta size up. Yeah, that's crazy, 31 00:01:41,880 --> 00:01:43,559 Speaker 1: but not true. 32 00:01:44,120 --> 00:01:48,000 Speaker 3: And when I was watching your presentation, I'm always looking 33 00:01:48,160 --> 00:01:51,000 Speaker 3: for like this new information. So even when you talked 34 00:01:51,040 --> 00:01:56,440 Speaker 3: about uh, contracts being the same price in futures right, 35 00:01:56,520 --> 00:01:59,840 Speaker 3: which is very different in options, which you know, almost 36 00:02:00,200 --> 00:02:03,040 Speaker 3: made me unravel the level of discipline that I usually 37 00:02:03,040 --> 00:02:07,560 Speaker 3: have because I started looking for contracts that would be 38 00:02:07,600 --> 00:02:10,640 Speaker 3: more peaceable to a grander audience, meaning like these are 39 00:02:10,680 --> 00:02:13,760 Speaker 3: more affordable, and if they're more affordable, more people can 40 00:02:14,000 --> 00:02:17,600 Speaker 3: get multiple contracts, whereas in the past it was always hey, 41 00:02:17,960 --> 00:02:20,320 Speaker 3: let me go find a leap out there that is 42 00:02:20,320 --> 00:02:23,840 Speaker 3: a year maybe eighteen to two years out a little 43 00:02:23,880 --> 00:02:26,440 Speaker 3: bit more expensive, but we buy time, which means we 44 00:02:26,440 --> 00:02:30,480 Speaker 3: buy volatility. And so there's like this space that I 45 00:02:30,560 --> 00:02:32,720 Speaker 3: was I'm wrestling with because it's like, yes, you want 46 00:02:32,720 --> 00:02:35,280 Speaker 3: more people to have exactly what you're talking about. I 47 00:02:35,280 --> 00:02:38,240 Speaker 3: would say, when you have an investment or you make 48 00:02:38,280 --> 00:02:41,320 Speaker 3: a trade that works, two things happen. One's going to 49 00:02:41,360 --> 00:02:44,519 Speaker 3: be like, man, I'm so happy that that worked, and 50 00:02:44,800 --> 00:02:46,600 Speaker 3: I'm happy that I'm in the green. And the other 51 00:02:46,680 --> 00:02:48,800 Speaker 3: thing is, damn, I wish I would have put more 52 00:02:48,840 --> 00:02:49,240 Speaker 3: money in. 53 00:02:50,639 --> 00:02:52,520 Speaker 1: The two things at all time. 54 00:02:52,800 --> 00:02:54,720 Speaker 3: You know, when you're in the green, it's like, damn 55 00:02:56,120 --> 00:02:58,720 Speaker 3: one contract, man, if I would have had two, Oh, 56 00:02:58,760 --> 00:03:01,480 Speaker 3: I had five contracts, if I had ten, or I 57 00:03:01,520 --> 00:03:03,320 Speaker 3: had ten, but it pulled back a little bit and 58 00:03:03,320 --> 00:03:04,760 Speaker 3: I sold half of it off. 59 00:03:04,800 --> 00:03:06,760 Speaker 1: And those things always happen. 60 00:03:06,880 --> 00:03:08,880 Speaker 3: And I think it goes back to that piece we 61 00:03:08,919 --> 00:03:11,800 Speaker 3: talked about maybe last week, where it's like, don't skip that, 62 00:03:13,000 --> 00:03:16,280 Speaker 3: Like you should go through that, Like you should prepare 63 00:03:16,320 --> 00:03:18,480 Speaker 3: yourself for that moment. You should prepare yourself to be 64 00:03:18,600 --> 00:03:21,240 Speaker 3: in those positions because it will teach you about grit, 65 00:03:21,280 --> 00:03:25,360 Speaker 3: it'll teach you about financial intelligence mixed with emotional intelligence. 66 00:03:25,400 --> 00:03:26,360 Speaker 1: You have to go through it. 67 00:03:27,200 --> 00:03:30,799 Speaker 3: But the discipline piece of saying, you know what, this 68 00:03:30,880 --> 00:03:33,560 Speaker 3: is my moment. I feel comfortable now. Like you said, 69 00:03:33,560 --> 00:03:36,280 Speaker 3: three hundred trades for me, it was twenty twenty July. 70 00:03:36,680 --> 00:03:41,760 Speaker 3: I said I'm comfortable I'm going for it at some point. Again, 71 00:03:42,600 --> 00:03:45,400 Speaker 3: trading has considerable risks. At some point, you've got to 72 00:03:45,400 --> 00:03:46,840 Speaker 3: get to the point where it's like I put up 73 00:03:46,880 --> 00:03:47,800 Speaker 3: enough practice shots. 74 00:03:48,280 --> 00:03:48,920 Speaker 1: It's time for me. 75 00:03:49,520 --> 00:03:51,800 Speaker 3: I gotta go in the game now and start and 76 00:03:52,000 --> 00:03:55,120 Speaker 3: really say this is my plan and I'm going to 77 00:03:55,120 --> 00:03:58,880 Speaker 3: execute at a high level and then be disciplined about that. 78 00:04:00,160 --> 00:04:01,720 Speaker 2: Yeah, and some of you asks for one is a 79 00:04:01,760 --> 00:04:04,520 Speaker 2: time we will tell you, like I remember when April happened. 80 00:04:04,800 --> 00:04:07,240 Speaker 1: I did good in New York. Of course we did 81 00:04:07,280 --> 00:04:07,560 Speaker 1: the show. 82 00:04:07,560 --> 00:04:10,720 Speaker 2: We're telling you like, no, this keen biding opportunity, like 83 00:04:10,800 --> 00:04:13,600 Speaker 2: even for me that April made the rest of my year, 84 00:04:14,400 --> 00:04:16,160 Speaker 2: Like I could have been done just trade in April 85 00:04:16,839 --> 00:04:21,640 Speaker 2: like that allowed me such a large swing percentage wise 86 00:04:22,279 --> 00:04:25,560 Speaker 2: that I can be really careful after every trade after 87 00:04:25,600 --> 00:04:29,200 Speaker 2: that and only take perfect setup. So we're getting close 88 00:04:29,279 --> 00:04:32,440 Speaker 2: to an inflection point like that. And kudos to all 89 00:04:32,839 --> 00:04:37,880 Speaker 2: if anyone if feel new, But this being my tenth 90 00:04:37,920 --> 00:04:40,360 Speaker 2: year in this future space, when it wasn't that many 91 00:04:40,400 --> 00:04:42,839 Speaker 2: of us of our h in it, I'm telling you, 92 00:04:42,880 --> 00:04:44,640 Speaker 2: at some point you have to have moments in which 93 00:04:44,640 --> 00:04:48,520 Speaker 2: you graduate. You've seen it even in this partnership and 94 00:04:48,600 --> 00:04:51,279 Speaker 2: with their show, right, you go from show to get 95 00:04:51,279 --> 00:04:53,960 Speaker 2: your tickets to invest fest. At some point you have 96 00:04:54,000 --> 00:04:55,840 Speaker 2: to scale and get outside of your comfort zone. 97 00:04:56,640 --> 00:04:56,800 Speaker 1: Here. 98 00:04:56,800 --> 00:04:59,719 Speaker 3: Here's a question in just full transparency here, because I've 99 00:04:59,760 --> 00:05:03,360 Speaker 3: noticed has happened from time to time. You have these 100 00:05:03,400 --> 00:05:06,760 Speaker 3: great gains thousand percent, two thousand percent in a company, 101 00:05:06,920 --> 00:05:11,080 Speaker 3: you have your stacks, and I think maybe in twenty 102 00:05:11,120 --> 00:05:13,799 Speaker 3: four I noticed this, right, just having some great gains 103 00:05:14,200 --> 00:05:18,240 Speaker 3: and saying, hey, we've won big here, we can be 104 00:05:18,320 --> 00:05:18,880 Speaker 3: a little bit. 105 00:05:18,880 --> 00:05:20,000 Speaker 1: More risky over here. 106 00:05:20,400 --> 00:05:23,360 Speaker 3: And then in twenty twenty five realizing like wait, no, no, no, no, 107 00:05:23,640 --> 00:05:26,080 Speaker 3: you got to stay as disciplined as you were when 108 00:05:26,120 --> 00:05:30,200 Speaker 3: you're at the big game, even more discipline, even more precise. 109 00:05:30,279 --> 00:05:32,560 Speaker 3: I think that's where the stay load, keep firing thing 110 00:05:32,600 --> 00:05:35,000 Speaker 3: comes from. It's like, yes, stay low, being the research, 111 00:05:35,400 --> 00:05:37,839 Speaker 3: but like still strike with the same amount of position. 112 00:05:38,240 --> 00:05:42,359 Speaker 1: Don't get loose because you've got balls. Don't don't get 113 00:05:42,720 --> 00:05:44,800 Speaker 1: you know, some. 114 00:05:44,720 --> 00:05:46,719 Speaker 2: Of y'all was at All Star weekend. I heard we're 115 00:05:46,760 --> 00:05:48,960 Speaker 2: talking about on blackout or not. 116 00:05:49,080 --> 00:05:53,120 Speaker 3: Don't get unraveled, don't lose your plan, don't get undisciplined 117 00:05:53,160 --> 00:05:55,680 Speaker 3: because of those games, and that happens a lot too, 118 00:05:55,880 --> 00:05:58,200 Speaker 3: right Like people will say, oh, man, I hit the 119 00:05:58,480 --> 00:06:01,760 Speaker 3: five hundred percent, let me go, I'm trying to do 120 00:06:01,800 --> 00:06:02,279 Speaker 3: this again. 121 00:06:03,360 --> 00:06:04,880 Speaker 1: You've got to change your risk profile. 122 00:06:05,040 --> 00:06:08,200 Speaker 3: Can't do risk profile can't change, and that that that 123 00:06:08,320 --> 00:06:10,640 Speaker 3: is something that's very important. And on the downside as well, 124 00:06:10,720 --> 00:06:13,320 Speaker 3: I've seen people, Hey, you know what, I did this 125 00:06:13,440 --> 00:06:15,760 Speaker 3: called it didn't where I'm never doing this again, and 126 00:06:15,800 --> 00:06:19,400 Speaker 3: then they watched that same call for somebody else. It's 127 00:06:19,400 --> 00:06:21,960 Speaker 3: about the discipline, but it's also about the experience too. 128 00:06:22,120 --> 00:06:24,880 Speaker 1: I think we can't overlook those two things together. 129 00:06:25,080 --> 00:06:28,440 Speaker 2: And you probably an even best better lesson in futures. 130 00:06:28,880 --> 00:06:32,839 Speaker 2: Your risk profile should not change. And then if you 131 00:06:32,960 --> 00:06:35,080 Speaker 2: once you scale up, you should stay in that pocket 132 00:06:35,120 --> 00:06:39,039 Speaker 2: of contracts whatever you're trading four hundred trades. That way 133 00:06:39,120 --> 00:06:42,560 Speaker 2: you can have clear risk profile and you're not going up, 134 00:06:43,640 --> 00:06:46,840 Speaker 2: say fourteen hundred percent, but then drawn down three hundred percent. 135 00:06:47,240 --> 00:06:49,440 Speaker 2: Your stop losses should be the same, Your targets should 136 00:06:49,440 --> 00:06:51,200 Speaker 2: be the same. Even in Red Panda, they'll asks me like, 137 00:06:51,240 --> 00:06:53,240 Speaker 2: what's your short of target. I'm like, it's the same 138 00:06:53,279 --> 00:06:58,080 Speaker 2: thing from episode seventy. You can't keep changing and that's 139 00:06:58,120 --> 00:07:01,080 Speaker 2: why like when Rishard is held a conservative I like 140 00:07:01,120 --> 00:07:03,160 Speaker 2: that because you'll be in a game fifteen years from now, 141 00:07:03,200 --> 00:07:06,320 Speaker 2: the people who blow up all their funds, like take 142 00:07:06,400 --> 00:07:09,600 Speaker 2: Sam Bankman free right, he did a couple things that 143 00:07:09,680 --> 00:07:12,840 Speaker 2: were illegal and missed out on a whirlwind of an 144 00:07:12,880 --> 00:07:16,800 Speaker 2: investment in anthropic because your risk profile changed because you 145 00:07:16,880 --> 00:07:19,800 Speaker 2: start crunching the numbers to meet a shorter term metric. 146 00:07:19,920 --> 00:07:23,320 Speaker 2: If you stay conservative, only risk one to two percent 147 00:07:23,320 --> 00:07:26,320 Speaker 2: of trade ten percent of trade, you won't have those 148 00:07:26,320 --> 00:07:28,400 Speaker 2: issues and you'll eventually be able to hit a home run. 149 00:07:28,440 --> 00:07:31,680 Speaker 2: So keep your risk profile the same throughout your trading career, 150 00:07:31,680 --> 00:07:32,960 Speaker 2: and they go a hell of a lot easier.