YouTube Transcript:
Boot Camp Day 13: Risk Management

what is Good Guys welcome back uh
welcome to boot camp I believe day 13.
um hopefully you guys are ready to get
into some disciplined stuff and uh for
most you guys today is going to be
relatively easy for others
um you know you might be able to learn a
little bit more but
today we are going to talk about
something very basic which is just risk
management and really the first part
about risk management in
um uh in just trading uh and that is
literally how much you are risking
because when people say risk management
is the most important thing
they're you know like it's it's true but
also like
it's it's the most important thing
because of how hard it is due to all the
other emotions so in this video we're
going to talk about what risk management
really is which is literally just how
much to risk and when to risk it
um and all those other emotions and
things that we have to deal with that
comes from discipline um so when people
say yeah risk management is the most
important thing they it's not wrong but
it's
um
this thing on
um yeah it's not it's not wrong but it's
also I guess just not phrased the right
way I would say discipline is the most
important thing and just having a stable
um and strong like headspace is is the
most important thing and not many people
have that uh you know believe it or not
in this world and you tend to find that
you know you find someone that's super
disciplined they're making a lot of
money same thing applies to trading if
you're super disciplined that money will
come
um just like with any other job right if
you put in the work the money will come
right back to you
um you know you just got to do the right
stuff and don't slip up okay so today
it's going to be relatively quick video
but it is very important if you don't
know anything about it and like I said
um all over Tick Tock and like I've said
at the beginning we are doing this from
scratch so this is essential for me to
mention
um especially because I feel like a lot
of you guys come into this thinking
you are going to make 100K in your first
year I hate to ruin your dreams I hate
to break it to you bro
you're not gonna make [ __ ]
you're going to lose money probably in
your first year probably in your second
year
imagine this is like college tuition
you're paying you're paying for the
lessons Okay so how can we make it so we
lose the least amount of money because
it's kind of impossible to to just start
off OfferUp even if you've been trading
on demo even if you go from demo
profitable on demo to live there is
going to be an in-between where you are
losing money
um
just because your emotions it's it's so
hard and that's why half of this literal
boot camp is all dedicated to emotion so
hopefully we can start nipping those
things in the ass and you know like cut
out a lot of these problems that you'll
face along the way as long as you guys
listen as long as you listen Okay so
today what are we talking about we're
talking about risk management how much
you should risk per trade and that's
about it and how often you should trade
because that's really all risk
management is right what are we doing
managing our risk how do we do that
understand what we're risking and
understand not to overdo it okay so how
can we do that what I like to do very
simple okay risk one to three percent of
your account
and that's it okay you're risking one to
three percent of your account size per
trade okay and depending on if you do
Futures if you do options if you do
Forex there's a bunch of different ways
to calculate this and figure out your
risk
um and it's relatively easy on all of
them and a little simple Google search
can help you out how do I risk one
percent of my account doing options with
this stop loss how do I risk one to
three percent of my account doing
futures
with you know a two-point stop loss with
a five-point stop loss with a ten point
stop loss right how do I calculate you
know how do I figure out one percent
risk on this account size with this pip
stop loss for Forex for example okay
simple Google search or literally just
looking up lot size calculator position
size calculator all of those things work
um that's not for me to do that's for
you to do that's your homework there you
go that's one step of your homework okay
you can figure out where you can find
out to calculate that that's not what
I'm here for Google can do that in two
SEC seconds and I'm not going to waste
my time explaining that so that being
said you're going to risk one to three
percent of your account why are we doing
this well let's think about it logically
right if we are risking one percent of
our account per trade that means we
would have to lose a hundred trades in a
row to lose that account completely will
that happen rarely right you may be
asset trading but you will probably get
at least like two out of your ten trades
say it take profit
um whether it's from luck or just
yeah it'll probably be from luck if
you're a terrible at trading right
um so right it's pretty much impossible
to blow your account risking one percent
per trade because that pretty much means
you would have to lose 100 trades in a
row and you aren't going to do that and
then from there it's like okay let's say
like even then like let's say you're
losing 80 of the time if you're only
risking one percent
then like
you know at the end of the year you'll
still have 20 of that account left and
that's still money that you saved right
instead of blowing all of it in two
weeks and then having to refund it right
so let's think about this logically
would you rather be able to keep the
initial account that you started with
or
or would you rather keep having to fund
that same amount of money that's in your
account right now every [ __ ] week
because you keep losing it
all because you want to get rich quick
and we know damn well you aren't right
we talked about this at the very
beginning you will not get rich quick
doing this get that [ __ ] out of your
head
okay get it out of your head and once
that's gone say okay cool I'll get rich
slow relatively slow right
um so I'll get risk slow how do you do
that by risking one to three percent of
your account okay what else does this
mean this also means okay yeah we're
risking one percent per trade that means
it takes 100 trades for us you know to
lose everything however
what happens if you take 100 trades in a
day that means that account will be gone
in a day and we can't risk that we can't
this is a risk on Marketplace this is a
risk on asset this is a risk on job okay
if you if you are the type of person
that needs instant gratification and you
need it every second of the day this is
not for you because with trading you
literally
trading is not what people painted out
to paint it out to be trading is waking
up and doing something emotion like
without emotion
and and you have to you have to be able
to make up to upwards of 60k in a day
and be emotionless and also lose you
know up to like 20 I lost like 27k like
two weeks ago in one trade in a day
and you have to be emotionless because
the second the second your emotions
plug-in boom you're [ __ ] that account
consider that gone literally considering
gone the second you start over trading
the seconds you start taking more than
the set amount of Trades that you wanted
to take per per day
the minute you start doing more than
that
that's when you screwed the minute you
start risking more that's when you're
screwed and you're probably thinking no
no that's not going to be me it's not
going to be me I'm going to follow tjr
it's trust me you will make this mistake
without a doubt but again remember what
we said last time last last discipline
class
understand when the mistake happens and
never do it again right it's like
imagine you have the best the best job
in the world and you have a boss and
you're getting paid millions of dollars
a year
and you [ __ ] up you make a mistake and
your boss comes to you and says I can
fire you right now or I'll give you one
more chance but you can never make this
mistake again
right
never make that mistake again because
this is literally the exact same
situation because you are literally on
Pace
to pretty much an infinite source of
money with this skill
as long as you follow these damn rules
because think about it this way if you
had two hundred thousand dollars in your
trading account would you be trading the
way that you are now
would you be risking 20 to 30 per trade
would you be risking your entire account
on a trade would you be taking 10 trades
a day and would you be okay with losing
10 trades every single day with that
high of a risk
you probably wouldn't especially if it
was two hundred thousand dollars
and you're probably saying tjr my
account's not at that size right now I
know it's not at that size
but you have to treat it as if it is at
that size because that's just like you
know some [ __ ] ass kid in high school
or in college saying I don't got to do
this I don't got to do that I'm not in
the NBA yet well how the [ __ ] do you
think you're going to get into the NBA
how how the [ __ ] do you expect yourself
to get to that point if you can't even
act and hold yourself like the people
that that are already doing that are you
know how do you expect to get there you
really think you're going to do it a
different way you really think of all
these people that are doing this
successfully you really think that you
can do it a different way
right let's let's think about this okay
so
now that we understand all that
perfect
[ __ ] stick to it that's what risk
management risk management is clap it up
you figured it out you're done
now you just gotta stick to it and
that's the hard part so
super [ __ ] easy video today write
down in your notes risk management what
am I risking one to three percent per
trade
how many trades am I taking per day
this is what I would like to say risk
one to three percent of your account per
day
that just makes it easy that makes it
the easiest thing possible because then
it's like okay I can take
two trades with 1.5 risk
or I can take one trade with one percent
risk I can take one trade with three
percent risk I can take three trades
with one percent risk
either way you're still within that
threshold
and you can take you know one or two
setups right if you see two setups for
the day perfect and guys the nice thing
is you're not always going to see
multiple setups every day you know who
knows some days you might not see any
setups and you risk zero on the day
other times you see two setups and you
wanna you know go heavier on the wrist
because all the biases are aligning
right and that we'll cover that in this
course as well but for risk management
one to three percent a day because all
you're doing here is living to trade
another day if you can live to trade
another day there will always be setups
tomorrow this Market is not going
anywhere this Market's not going
anywhere so stop trying to rush the
process drop like you guys realize
you're trying to go from zero to 100K in
under a month do you realize how [ __ ]
stupid that sounds you are
me okay that's you that's you it is you
okay that is that is you if you think
that is possible if you're the if you
are a child
I can't wait to watch it tomorrow I
can't wait to watch tjr's video today
I can't wait to become a millionaire in
two days
that's you
if you're watching this saying
yeah I'm trying to be a Million Dollar
Trader by the end of this year you're a
come on guys let's be ambitious
let's be slightly over over ambitious
let's not and I didn't even want this
[ __ ] ass gum I was just trying to be
like you
um
let's be
slightly overly ambitious
let's not be [ __ ] Liars okay
um I don't want this [ __ ]
okay
let's be let's be smart about this all
right and under understand that this
will take time okay the money's not
going to happen in one day but again
think about what we've said previously
we are here to learn the skill initially
the money will come and that is very
very difficult for Traders to understand
especially new Traders or Traders people
learning how to trade
they want money first
and that's it they don't they don't even
think about the skill they're just like
me want money give give it okay [ __ ]
you won't get it okay you're not you're
not going to get that money because you
could give a [ __ ] about learning the
skill all you want is the [ __ ] money
why don't you dedicate instead of
dedicating your life to I want to make
money
dedicate this [ __ ] to I want to actually
learn how the [ __ ] these charts move
because once you understand that
money is [ __ ] Limitless if you know
where a chart is going to go that
literally
is is a is literally showing you where
the economy is going in terms of like
the S P 500 or literally the dxy if you
can read that chart you have Insider
information
and that it that in itself is an
infinite money glitch
and that's what you have to understand
it's the skill that's the glitch
it I don't know I don't know what you
think I don't know what you think you
know your [ __ ] ass over leverage
[ __ ] trades are gonna do they won't
do [ __ ] you're you're banking you're
you're over leveraging and over trading
Banking and hoping that you can get one
trade to hit one trade to get you out of
the fat ass hole that you've been in
news flash buddy you're digging it
[ __ ] deeper with every single one of
those that you take because guess what I
was there too and I went to bro
I was in so much [ __ ] debt I was in
so much debt because of that [ __ ] it was
terrible I was literally indebted to
friends
that is never a fun thing
and Shout out those people for not
literally like beating my ass over the
money because it took me a while to get
it back to them
um so yeah don't fall into the stupid
ass trap of thinking you're going to get
rich quick and risking a lot this is a
risk on game and there's no point in
risk putting risk on when you don't when
you don't even know how to do this so
this is very important that we're
getting this out the way early on
because
[ __ ] man uh you guys would have been
[ __ ] you guys would have been like
perfect I know how to trade let's put a
thousand on this [ __ ] and it's like all
right I failed you right so before we
even teach you guys when to enter a
trade
let's understand what we're entering
with and why we want to do so okay so
hopefully you guys understood that from
the video and we have a nice little
dildo
um here for me to speak into now so
maybe the audio is clear maybe and is
the video clear uh I didn't do a face
cam but I tried like
different settings I don't know
hopefully it worked out if not
I'm sorry
um but anyways I'll see you guys
tomorrow peace out
I want to eat your ass