The Science Behind Why Day Traders Fail... (Dunning-Kruger Effect)

[@jonathansileo706]

One of my favorite videos! Quit apologizing for the theory. That's what we need!!! Thanks again Clay. Keep working on those biceps!

[@claytrader]

Glad you enjoyed it

[@yunoewig3095]

Nick C You don’t come out as very informed in your reply either. Sure, none of those tools are the end-all-be-all of trading, and all the tools in the world will be worthless in the hands of someone who does not know how to use them. But all the tools you mention can be very useful in helping to build a picture of the market that allows you to making a trading decision, and in fact many expert professionals use those tools in their decision-making.

[@samsun01]

@@cools6560 you have good points. AI is coming bigger and better as well. they'll factor in these lagging indicators to kick human asses...NO EMOTION.

[@grant8124]

@@cools6560 Yes, too much clutter on the screens that all say much the same thing, so you miss opportunities.

[@jjgayle16]

@@cools6560 by "auctioning of price" are you referring to level 2? I'm just curious, still have a lot to learn.

[@DAPPO]

honestly, i started trading and learning and indulging myself in this world of trading about 5 months ago and ive been watching you for the last 3.. this is the one video that made me sub, youre awesome man. appreciate these kinds of videos!

[@claytrader]

Glad to hear it!

[@AnmolShelke]

Why u stopped creating music

[@DAPPO]

@@AnmolShelke I didnt.. Album dropping soon.. Music video too ❤ go subscribe! Love yaa

[@bhspitbull9271]

Congrats Clay! Those are such difficult concepts to cover and you did a great job. The market can be so counterintuitive, rewarding good and bad, becoming such a trap.

[@claytrader]

Thanks for watching!

[@gmind8276]

Great video. People often forget that trading is a battle again other people and which means psychologically is a really tough battle and the worst enemy is yourself and learning to deal with you emotions is the key point to success.

[@claytrader]

Well said!

[@yogeshbadgire]

Oh my god. I Googled "Why I am failing in Intraday trading everyday" literally 10 hours ago. I am not kidding.

[@evolutionlancer7358]

lol we've all been there, its not failing if you're learning.

[@claytrader]

I hope this helped!

[@yogeshbadgire]

@@claytrader Oh yes. This definitely helped.

[@claytrader]

@@yogeshbadgire great!

[@claytrader]

@Smarter than you Fo sho if you're interested in "talking stocks/trading in general", that's the entire idea behind my private trading community (which you are welcomed to join) you can find it here claytrader.com/team/

[@gianrivera8015]

this has to be one of my most favorite videos. I need to watch this whenever I lose a trade.

[@claytrader]

Glad it could help!

[@rafaelamaral5355]

You're the most coherent and logical trader I know, Clay! Thank you for your content!

[@claytrader]

I appreciate that!

[@realdaybreaker8013]

Excellent stuff - exactly what we traders want to hear - informative and concise

[@p0ln]

*this I lacked better words to express the same sentiment, so I'm seconding your comment my indian friend

[@realdaybreaker8013]

@@p0ln how did you figure out I am Indian

[@p0ln]

​@@realdaybreaker8013 ok, I could joke and say that my spidey senses were tingling and I knew you hated the CCP, thus you a pajeet- but even as a paddy, I have standards ;) normally I wouldn't check, but the two words I wanted to use, were in your comment. there were only two other comments so I thought to myself, this chap has higher english, so you hit my interest , you have your location set as India

[@realdaybreaker8013]

@@p0ln didnt know my location is being displayed - was it in the ABOUT tab?

[@p0ln]

@@realdaybreaker8013 yes

[@stackupbreachclear4679]

This is a great breakdown of why it pays to be scientific with protocols in place, no emotion. People think about money when they’re trading, money is very emotional, when they should be analyzing numbers, numbers are scientific, no feelings.

[@claytrader]

Well said!

[@amazingbuilders3458]

Psychology is the main focus for some time now. Such a challenge! Emotions are so difficult to control! All great points! I will study this Dunning-Krueger Effect. Thank you!

[@claytrader]

Absolutely!!

[@asgerms]

I also recommend studying *the other* end of the DK effect. People with massive skills underestimating themselves, thinking that if "it" is easy for them then "it" is easy for others too.

[@claytrader]

Valid point

[@JohnSmith-zd9ou]

Where?

[@claytrader]

@@JohnSmith-zd9ou where what?

[@JohnSmith-zd9ou]

@@claytrader Where to go to study the other end of the DK effect? Is there another study or name for that? Thnx

[@claytrader]

@@JohnSmith-zd9ou not sure, hopefully that other person replies.

[@gabyosegueda2135]

Literally did this today and yesterday. But my risk management saved me. The lesson I thought I learned you just destroyed (wait and it'll rise) and a much better lesson I never even saw be more patient and calculated with my entries. Thank you Clay!

[@claytrader]

Glad it could help

[@easybusy4395]

Sometimes it's better to don't know what you don't know and let your confidence do the trade work, don't think too much about the things you've learned. The more you know the more work your brains need to do for the same result. Keeping it simple is the best method.

[@claytrader]

Thanks for the thoughts.

[@SylBlade]

I didn't know the Dunning-Kruger Effect was a thing until this video popped up on my feed. I've been using this principle as an interview question in multiple jobs in the past..."How would you rate your _____ knowledge on a scale of 1-10", whenever I got a 8-10 I knew they didn't know what they didn't know. The more I learn about trading the more I realize how much further I need to go. P.S. I'm from GR too, I subbed to your channel and keep up the good work!

[@claytrader]

That is super interesting on your part! Thanks for sharing.

[@agjustin76]

Yes. Clay. In first year of my trading i was up $70,k. I thought I found my calling but i have lost for 6 years try to learn. I have lost more than $150k. But finally after 6 years of not quitting my full time job and part time trading. I made that all back and more.

[@claytrader]

congrats!!!

[@SquatSimp]

The example of the trader that lost 10% initially was a perfect explanation of this. Thank you.

[@claytrader]

Glad it was helpful!

[@Mbenouzekri]

When I watched this video it remind of my self. I started trading on last April and I made about $22.000 in swing trading in 6 weeks but back then I didn’t want to sale I didn’t want cash out I thought it just gonna keep going up. Guess what, I didn’t know about managing my risk, so my profit started to go down everyday I lose about %10, so in few days went from $22.000 profit to $1400. I found my self I had to sale, after that I realize how scary and reality is about stock market. It took me 3 weeks after I sold my stock to start buying stocks again but with totally different experience prospective.

[@claytrader]

Thanks for sharing your experience with it!

[@CBUCK1994]

Your brains chemicals was tricking you man 22,000 is a years pay for many people

[@claytrader]

@@CBUCK1994 all a matter of "standard of living"

[@mannyb332211]

What were you buying? Were you diversifying? Or just buying stock from 1 or 2 companies?

[@Xemptuous]

This was definitely true for me. Was up 250%, then lost it to only being %+150% after 6 months of starting trading. After that I realized i'm doing something horribly wrong, so I started managing my risk to max loss of -1.00R. Since then, I have been doing much better, and been less overconfident. Dunning-Kruger in effect; I didnt know shit and made money, was too confident and risked too much, then restructured myself and started doing much better after lowered confidence, and started slowly building confidence overtime. Very helpful video, and very useful to pay attention to!

[@claytrader]

Thanks for watching and sharing your experience with it!

[@bossthefluff]

I “No” nothing about spelling... I find it somewhat ironic that it’s at the 0/0 level.

[@claytrader]

Indeed! lol

[@TerryIvy]

Clay, no apologies needed. Great video! I am at the very bottom of the curve, crawling slowly upward and learning sound trading tactics. Taking baby steps and becoming profitable, much in part to your insights and videos. 1 year and 4 months in and finally getting consistent. Every day was a classroom and every trade a lesson. Early success created some bad habits... but I'm finally getting the strategy and plan on a healthy and profitable table. Thanks...

[@claytrader]

Cheers Terry!

[@TeddyCWT]

Good work. Advice to all traders keep a journal and write into it every trade and your rational and emotion both at the time and the end, even if its an embarrassing trade and you lost lots. This process is the foundation of progression as you grow, as this will allow you to have a basis to know where you have been and where you are heading. Every trader will fail in the beginning as do most businesses, trading is the same..it should and is fundamentally a businesses so treat it like one. You fail, you try again, you fail, you try again. If written, every failure is a learning curve ready for the next business. If not written then every failure is failure and you will inevitablly hate trading and move on with something else.

[@claytrader]

Thanks for the thoughts.

[@happymand1359]

2.5 years in the market. Hey man you opened my eyes. Thank you so much man.

[@claytrader]

Glad it could help!

[@bijman390]

I am a Rookie Trader...This video is really helpful and everyone must watch it. Thank you.

[@claytrader]

Glad it was helpful!

[@georgieporgie331]

Perfect! This effect has been around HOWEVER, I don't know many people who made the link to day trading. I had a 32day win streak and the moment I started to think. "I got the hang of this". I started to stray from what brought the streak. Took 2 losing days in a row after I made that statement. My solution, you have to have a mechanical system at first. Even more so, and Clay I know you can appreciate this as a former engineer. I have since developed a "STANDARD WORK" checklist before every trade. I've learned that the more you "know" the more you can't trust yourself to do the right thing.

[@claytrader]

Well said and thanks for sharing your experience!

[@stockmonger668]

Been trading since 17. Went from 6k to 50k . . currently. Had my best month ever. And decided to go take more risk and set me right back. Overall my risk management will make me a millionaire within 5 years . Compounding gains is the secret. Tortoise beats the hare EVERYTIME. Clay you Rock. Learned most my charting from your videos back in the day.

[@meganrortiz]

Thank you for your videos. I'm stuck in India with not a lot of money trying to get back to the US and trading seems to be the only option to me at this point to finance such a move when we can. I just want to make sure I'm doing this the right way. I'm studying as much as I can. Thank you

[@claytrader]

Best of luck!

[@leighcutting9747]

I have learned much from your videos! Why do you normally short a stock rather than going long?? Thanks.

[@claytrader]

Because that's what the chart says I should do.

[@charlesrobertson1860]

This video is great and really shows how this craziness in the market can trick you into thinking your trading the right way. This volatility and influx of good and bad news is killing me so hard to judge this market and make solid trades atm. Thanks for the lesson!

[@claytrader]

Thanks for watching Charles!

[@quantum7401]

From what I have heard, the market is always evolving, and even professional traders are constantly adjusting.

[@claytrader]

Kind of... but I mean "evolving" doesn't mean "new strategies", it just may mean using some strategies more often than others.

[@BreauxSegreto]

“A little knowledge is dangerous” is applicable in all areas in life, not just the areas listed in the DKE. To help the learning curve ...Noble effort in your presentation of the DKE however Nobel is pronounced Noh-Bel. Your shirt says it all about Day Trading. No Emotions. Best of knowledge to you. Watch out for “no nothing” 👍

[@claytrader]

Thanks for watching.

[@arunr920]

The same thing happened to me (around 10% drop and then raises to 11%) and I thought I'm super intelligent because of my patience. But now I feel like its just some luck and I need to manage Stop Loss which I'm not using as of now. Thanks so much for this. This helped.

[@claytrader]

Glad it could help!

[@cw433]

Clay this was amazing. I appreciate this and it's my story honestly.

[@claytrader]

Glad you enjoyed it!

[@NaserOfficial-xe3wb]

learning and actually understanding this video deeply, changes your trading style to the best. Thank you for helping us to have the right mindset as a trader

[@claytrader]

I appreciate that!

[@flippatheshippa]

Definitely going through this right now! I’m at a point where I’m starting to lose confidence and starting to realize wow I am totally doing a ton of things wrong, and there is really so so much things I still need to learn! It’s going to be interesting just going to take it day by day and keep a open mind to learning new things. Thanks for the video definitely woke me up a bit.

[@claytrader]

I'd encourage you to sign up for my (free) class I offer here claytrader.com/1-hour-trader-transformation/

[@flippatheshippa]

@@claytrader sure I’ll check it out!

[@claytrader]

@@flippatheshippa cheers

[@vinyldollstudio]

You're not stupid. It's called ignorance. You can look it up. So, don't be so hard on yourself. This is great info, Thanks!

[@claytrader]

Thanks for watching!

[@bestboybob5839]

Lesson learned: Be humble and listen to master traders. Thanks. Good piece.

[@claytrader]

Boom!

[@wearewon]

And glad you enjoyed them

[@claytrader]

@@wearewon cheers

[@mattyoung5999]

Great video man! I’ve absolutely been through the DK effect based on the info you’ve outlined. The tough part I think is knowing where you currently fall on this scale because there will always be some degree of “don’t know what you don’t know”. I’ve definitely been through that initial spike of confidence by being rewarded for my bad behavior in the stock market, and I imagine now that I’m finally beginning to turn the corner upwards again after being beat down as the chart displays lmao. Who can say?! Thanks for creating this video! It was very thought provoking!

[@claytrader]

Thanks for taking the time to share!

[@sang-dp]

That effect is all over me. I can feel it. Thanks for the video.

[@claytrader]

Glad you enjoyed it!

[@flashstep4403]

Absolutely did this about 2 months ago. Increased my trade position, took a major L. Confidence was totally shook lost all profits. Started taking small wins and holding onto bigger losses. From Win ratio from 1.5/1, To taking a quick .5/1 loss. Needed to win 3 and lose 1, To profit. Now back to 1.5/1, Win 50/50 and still win a profit.

[@claytrader]

Thanks for sharing your experience with this....

[@RobTackettCovers]

Let me say this first: I am still paper trading...I was introduced to a particular day trading room (it isn't Clay Trader if Clay Trader has a room; it is a different room and not going to mention the room; not here to advertise or bash due to a particular bad experience...and not here to jump ship either, just sharing my story as a fellow newbee entering into the realm of day trading)...I do not loose every day; did not trade on M) due to travel, Tu) up about 300 W) up about 300, Th) up over 200, ...Fri...today)...down about 1250 (edited the amounts to be more closer in the ball park, after relooking at my end of day screen shots)...anyway, based on the room I'm involved in, all three main speakers vocalized taking long positions, then adding as the stock continued to fall, etc...this stock never recovered today (KEYS), a few up swings here and there...OK, let me put it this way, it started at around 105 per share and ended the day at 95 ish, so by the first half hour in this stock, I was down over 500 dollars (TGIWPT= Thank God It Was Paper Trading). every time it would hit a pivot and show signs to change direction, as soon as I got in, it would fall like a rock (not funny even with paper trading, and if that was real money, I would for sure not be laughing, and I am sure I am not the only one that this happened to today)... my personal RULE is, based on what my budget will be when I do start trading with real money, is that NO stock ticker gets more than 150 dollars of my dough in a given day if the trade goes against me, but because on this particular day, our room sounded really confident in "longs" in this particular stock, even though I was past what I personally will allow a given stock to sting me for, I WAY went past my personal limit range that I have set for a single ticker to sting me for...I should have kicked that ticker to the curb for the day once it hit my negative $150...if I would have stuck to my personal limit that I will allow a single stock to sting me for in a given day, regardless of what the guys in the room kept saying in regard to KEYS, I would have not taken such a hard hit in my paper trading account today....stick with your strategy...and be strictly disciplined about it, regardless of what others are doing in their given accounts, or be prepared to have your asparagus handed to you warm and soggy...just saying....

[@claytrader]

Thanks for taking the time to share!

[@TryABaconSlice]

Somewhat unrelated but I would recommend opening a live account with a very small balance, in a commission free broker. I paper traded for a few months before going live and it really just doesn't present you with any of the psychological hurdles, nor the actual fills, exits, etc etc that a live account does. You have the right idea with learning risk free, however I feel you would improve at a greater rate using a small live cash account and only trading tiny tiny size. When trading paper you may think you know what it feels like to lose a trade (and inversely win) but it doesn't come close to preparing you for the real thing. The danger is you paper trade and are hugely profitable, then go into live trading way over confident and under-prepared and end up digging yourself a hole. The psychological game is far more difficult than the actual technical side of trading in my opinion, don't neglect to work on this also. Just my 5 cents

[@RobTackettCovers]

@@TryABaconSlice Advice appreciated...I have a small amount in my account as to be able to paper trade in real time. My plan is to fully fund my account this coming month with the amount my wife and I agreed on, as to be able to trade with enough cushion as to not be restricted by the PDT rule. I will not go in full throttle...I will start trading with only a fraction of what I am currently trading in paper, and I trade in paper like I only have 25k to use, and do not trade as if I had 100k in there, because I won't to start with...I'm trading in paper what I will eventually work myself up to based on what we are going to fund the account with. My plan is to start at 10% of what I currently trade at (as an example, if I usually trade 100 shares of a stock that goes for $50 a share, I will start with only 10 shares, and increase (or decrease, if it gets freaky) incrementally based on not just results, but also set a time frame as to continue to develop discipline while trading...if I have a great first day, that doesn't warrant bumping up on the second...see how at least a week does at 10%, if it is consistent, then bump up the next week to 25%, then 50%, then 75, etc...all based on results...

[@TryABaconSlice]

@@RobTackettCovers Gotcha, sounds like a solid strategy. Just be aware that execution speeds are quite different with a live account, and obviously there is the added psychological factor. I was very profitable paper-trading but upon switching to live i struggled (and still struggle) to achieve similar results. Good luck!

[@RobTackettCovers]

@@TryABaconSlice Thanks!

[@ericbronson7084]

I have gone through this with the firearms safety thing. Trying to avoid the same with looking into day trading as a way to get away from 80 hr work weeks. This sum up so well why i have been binge watching all your videos. Thank you.

[@claytrader]

Cheers Eric!

[@bazerra854]

Good stuff Clay keep it up. I’m Already thinking about your next upload!! Love and Respect from 🇨🇦🇨🇦

[@claytrader]

Awesome! Thank you!

[@anthonymurzyn2424]

GREAT, GREAT, GREAT, lesson absolutely loved it!

[@claytrader]

Glad you liked it!

[@Jasem89]

Once you accept your loss and be humble enough to realize that you need more experience means you are on the right path.

[@claytrader]

Cheers to that. Well said.

[@TangoBinAlsheed]

This was a great video Clay. Good job man

[@claytrader]

Glad you enjoyed it

[@sagemaster3408]

I wish you would go further amd explain why most never get to the point near the end and successful. Do they get stuck in the earlier downtrend part ?

[@claytrader]

They run out of money...

[@crazyworld4917]

I decided to experiment with option trading starting with $50 and gained $250.00 but quickly lost $75. I'm slowly learning about technical analysis and patterns. Any advice is greatly appreciated 💯

[@claytrader]

I'd encourage you to sign up for my (free) class I offer here claytrader.com/1-hour-trader-transformation/

[@andrewdesrosiers5658]

Learned about the D-K effect in college. I have had a decent understanding of the concept at least i think. Guess how i always shoot myself in the foot? I grind up for a month-2 months. I Increase my position sizes, and lose too much money. Needed to hear this vid. I guess you don’t know what you know sometimes too. Time to subscribe

[@claytrader]

Welcome to the channel!

[@JayMoto808]

Excellent video. Much thanks for sharing!

[@claytrader]

Glad you enjoyed it!

[@roc3429]

Thanks for giving me the perspective to look at myself honestly. For extreme insight watch this video! Ruminate with self reflectivity! Know thyself even... Self assessment or bust! This video is a must for all new traders!

[@claytrader]

Glad it was helpful!

[@noahliang9553]

i watched some of your video. you said day traders don't really make money and most of beginner lost money and failed at end. do you recommend me stop trade ?

[@riskfactortrading1271]

dont stop trading, keep learning. ive been trading for about 6 months, but with a lot of trial and error, watching videos, just learning in general, helped me a lot. paper trade for some time, or do small positions live so your losses are very small but you have some skin in the game.

[@claytrader]

i recommend people, like any profession, actually learn HOW to do it.

[@ibrahimbandak1756]

This video is great! Looking back at it and reflecting, I made 100% of these mistakes, and I still do at times.

[@claytrader]

Good self awareness on your part!

[@nomearod]

Jeff Bezos, founder, chairman, CEO, and president of Amazon is the richest man in the world. Once in a meeting with Warren Buffett, he asked America’s most prolific investor, your investment thesis is so simple. You’re the second richest guy in the world, and it’s so simple. Why doesn’t everyone just copy you?” Warren Buffett responded Jeff by saying, “Because nobody wants to get rich slow.”

[@claytrader]

Cheers

[@foxhilloutdoors2134]

This is me 100%. Thank you for posting, glad I found your channel!

[@claytrader]

Glad it was helpful!

[@jeheskielsunloy3881]

Be humble and know what you dont know, thats the lesson of the day for me mate thank you very much.

[@claytrader]

Glad you enjoyed it

[@RaizerZ]

My day trading strategy so far has worked really well. It's simply be less greedy than the other traders. I just started trading and so far I have had 7 good trades out of 10. I do have more to my strategy like selling if it drops 2% and being adamant about that. But it's mainly centered around taking advantage of human's natural greedy behavior.

[@claytrader]

Careful....

[@kevchristopher1107]

No need to apologize for anything. Truth is truth. People can’t handle it they will continue to fail.

[@claytrader]

cheers to that

[@elibenaron]

Novice had the following gamble: 20% chance to lose money, 80% to win money. He didn't know those probabilities, but chose to take the gamble, ended up winning $100. Luck rewarded him for a bad move, now he thinks he's the shiz. It was still the wrong move though. The correct move would have lost him money there, true. But it usually wins money. And when you're making thousands of gambles (as in trading), luck approaches the actual mathematical chances. (HS math: empirical probability approaches theoretical probability as number of gambles approached infinity.)

[@claytrader]

Thanks for the thoughts!

[@PotatoHead7662]

Great video, dunning kruger is not just about trading, but also in life. The worst part about dunning kruger effect is that if people lack the self awareness and age over the years, they start to form cognitive bias. Meaning they have been wrong for many years, and the longer the years goes by the more they are insistent they are right.

[@claytrader]

Well said.

[@TryABaconSlice]

Reminds me of religion

[@cjack202003]

I'm still learning not to hold. Just loss 1.5k holding when I could have sold for a loss way earlier and only loss around 300. All my plays I loss a lot of money on, I could have sold earlier and made it back plus some on other plays. My problem is I'm still under PDT, so every daytrade, profit or loss, is a spent daytrade. It's hard selling for a loss AND wasting a daytrade. Now, I loss money and have less daytrades left. I can honestly say when I get to 25k or more, I will be selling a lot earlier, if it's a loss, because I won't have to worry about the PDT rule.

[@claytrader]

Gotta just keep on fighting!

[@Heart2HeartBooks]

I bought shorted UVXY yesterday during pre-market at a 319 loss.....Had I held it for the day,,,,I would have been out about 1,300..... could have mitigated my damages for 79 dollars had I sold two days before. I learned a valuable lesson too.

[@cameronjohn604]

Great video. There is light at the end of the market tunnel.

[@claytrader]

Cheers

[@ZhangtheGreat]

Just experienced this for myself, even though I knew about this effect and swore I wouldn't fall prey to it. Science is hard to bet against.

[@claytrader]

Indeed

[@defiverr4697]

Clay, I want to know, where did you get the blackboard (most essential to teach us) and where did you install it (most important tool), and most important Dunning-Kruger effect is that your (millennials) audience has never seen one, and they suddenly feel they know how to write on a chalkboard next time they walk past one?

[@claytrader]

Facebook marketplace, it's hanging in my office.

[@defiverr4697]

@@claytrader Millennials need a video on how to invest and use a blackboard to get their mashed up thoughts in order. I'll bet it'll get a 1M views.

[@claytrader]

@@defiverr4697 lol

[@JonAcostaArt]

So there is something to be said about the critical importance of the sweet spot between confidence and humility. I read the Psychology Today article and although I definitely see the solid pertinence to finance and trading (and I write this a bit tongue-in-cheek), there is an aspect of their conclusions that borders on a dangerous cultural relativism, particularly where they state, "Anytime someone believes they are more skilled or knowledgeable than others, they are engaging in overplacement", and yet they fail to state the existence of positive overplacement or legitimate superiority. And yet, they go on to "How to fix..." with the summation of the fix being "different viewpoints". What about "correct", "proven" or even "superior viewpoints"? What about Dunning and Krueger possibly suffering from the Dunning-Krueger effect? Oddly, the article does not touch on this. They must just congitively, unbiasedly know what is 'right' :)

[@claytrader]

Thanks for the thoughts and for reading the article.

[@sharatchandra2418]

excellent stuff consistently from this channel

[@claytrader]

Glad you enjoy it!

[@phreedm1]

Wow... did you make this video for me? GREAT VIDEO!!!!

[@claytrader]

No, I made it for ME! lol

[@collectablegold7]

I think you do an absolute great job teaching and enjoy watching.

[@claytrader]

I appreciate that!

[@JoseHernandez-kb5rn]

Nothing has been for truthful than this!!!

[@claytrader]

Thanks for watching.

[@RT_Trades19]

Best video I've seen in a while...Connects a lot of dots for me in my Trading Journey...

[@claytrader]

Glad it could help!

[@colinmaharaj]

This week, I traded forex for the first time. I went from 770 to 820. Not bad right. But how did I do this? After a few days, I realized I just happen to be lucky. I did not calculate my risk, I did not know what a pip was, I did not set a stop loss ( still not sure how to do this in the environment yet), it was not in the morning so swings was not great, I had 500:1 margin, but I now realize how much danger that was... 2 days of trying to figure out why I gained, showed me I was just lucky.

[@claytrader]

Thanks for sharing.

[@stevebryant5299]

Clay - I was a little Nervous - it was me you were going to use as your example - ugg.. :) Thanks for the Learning Lesson... I actually learned a hard lesson today - when your up - get out... LOL I waited thinking it was going to go up more - got stopped out.

[@claytrader]

Glad to help

[@salmanshaik943]

Clay For a amount of 10000 how much should i risk per trade and how much should me my monthly target Please do let me know the figure if you were trading what would your opinion be?

[@claytrader]

if you're interested in "talking stocks/trading in general", that's the entire idea behind my private trading community (which you are welcomed to join) you can find it here claytrader.com/team/

[@benstjohn1202]

Assuming good risk management, how many trades would you take using a particular strategy before you decide it was no longer a lack of experience but just a bad strategy?

[@claytrader]

if you're interested in "talking stocks/trading in general", that's the entire idea behind my private trading community (which you are welcomed to join) you can find it here claytrader.com/team/

[@JP13795]

Good video Clay.

[@claytrader]

Glad you enjoyed it

[@nezukokamado4677]

one of the most useful video I watched on youtube yet

[@claytrader]

Thanks!

[@Devi8ntdev]

This same thing happen to me i didn’t know what i was doing but i made around 60k in the market this year but because i didn’t know what i was doing i lost 30k of that still i made out good but not nearly as good as i should or would have. Now I focus on learning the art of trading and manage my risk as the markets got back to normal. By no means am i saying I’m a good trader but i am a lot better and knowledgeable than i was then luckily I recognized that i have no idea what I’m doing and went out to learn

[@claytrader]

Thanks for sharing.

[@alex_77700]

Awesome video Clay! The video says exactly what we need to hear!

[@claytrader]

Glad it was helpful!

[@colinmaharaj]

In the area of stocks, a lot of time I think I am lucky, so what I do is try to find out how and why I won a trade. Not only why I lost.

[@claytrader]

That's still very "gray"... how do you know "why you won' or lost" when you "don't know what you don't know"...

[@misstinytrader88]

Who knew! Thanks for helping us get past this crazy stuff!

[@claytrader]

Thanks for watching!

[@HankWright777]

Really great, explains so much, so simply. Thank you.

[@claytrader]

Glad it was helpful!

[@WhyHighC]

7:34 had me lmao!! brought me back to the old days fr 🤣🤣

[@claytrader]

:-)

[@espocartoons]

Brilliant video and so true about trading. Even once you have all the knowledge you still need to find an edge suited to your cognitive skills and emotional strength. That's the hardest part about trading

[@claytrader]

Good thoughts!

[@dip9995]

I made $1500 last month in profit and want to increase my risk profile. How would you recommend scaling my strategy? Is it not okay to do what I’m doing now with more capital?

[@claytrader]

if you're interested in "talking stocks/trading in general", that's the entire idea behind my private trading community (which you are welcomed to join) you can find it here claytrader.com/team/

[@Avital4414]

I think the fundamental reason traders fail is that most short-term price movement is random, and irrational. The market overreacts, then overcorrects. It’s nearly impossible to profit unless one can afford a huge stop.

[@claytrader]

I think the Dunning-Kruger Effect is affecting you right this very second....

[@edwin3138]

I don't get it, in the other video you did the maths on the profit mistake. 13% profit after it went down 10% technically means he would still not have made any profit. He would've needed to make a 20% profit right? Since his base line changed?

[@claytrader]

He made money on it.

[@michelleachacoso4983]

Ph.D. In Psychology here. You got it.

[@claytrader]

Excellent! Thanks!

[@NewEnglanduro]

honest videos, tons of info and insight with no bs

[@claytrader]

I appreciate that.

[@brendenhurlbert7]

I Learned a lot and enjoyed! thanks man! you should do a video explaining when to cut your losses and when to hold. It seems like there's been a lot of bears taking advantage of newer traders lately

[@claytrader]

Thanks for suggestion! Those videos already all exist here claytrader.com/takecontrol

[@brendenhurlbert7]

@@claytrader oh I didn't realize, I'll check them out!

[@claytrader]

@@brendenhurlbert7 great

[@vajagovindr]

Great information 👍

[@claytrader]

Glad it was helpful!

[@johnjuliejordan6989]

Another great Video Clay, thank you.

[@claytrader]

Very welcome

[@wynandmentz9532]

Good video - just what is needed as a wakeup call!

[@claytrader]

Absolutely!

[@rgoodwinau]

Just clarifying, the Dunning Kruger effect is a piece of real research (with over 6000 citations). However they were awarded an IG Nobel prize, not a Nobel prize. The IG Nobels are a satiric award.

[@claytrader]

Thanks for the clarification.

[@AnmolShelke]

Thank you for your valuable knowledge

[@claytrader]

My pleasure

[@specialdispatch5234]

I made 777$ in a matter of seconds after entering trade on a stock. I exited while it was still rising . I went back in with 2x my initial position and lost all my gains in seconds. I let it run while averaging down but it never went back up. I finally got out of the trade with 2.5k loss.

[@claytrader]

Ouch!!! But I have great respect to the fact you were willing to share this to the public. Good learning lesson for us all!

[@LateSkates]

I havent started trading yet, but I've been watching videos and reading lots, trying to learn about trading. This video was super important for me to see before I start diving into trading. Thanks Clay

[@claytrader]

Glad it was helpful!

[@aguscorreas]

Bull markets like these are the worst, and most dangerous, for begginer traders that just keep getting lucky and get away with being degenerate gamblers (lol, your phrase), because when the fall comes, and it will come eventually, it will be desastrous! I got "lucky" early on and took a big humbling L that taught me to have more respect for the markets and for risk management strategies. Cheers!

[@claytrader]

Absolutely right!

[@elmadbouh]

Man, you have just nailed it. With that one

[@claytrader]

Thanks for watching!

[@bmwardo]

Nice one Clay, really appreciate the video.

[@claytrader]

Glad you enjoyed it

[@mohammeda.700]

Friend of mine don't use stop loss at all and it worked well for him. I always use stop loss and I lose money sometimes. This guy bought $nkla at $24 but he is now down -75%. He called me and told me he wants to cut the loss! He lost all his gains that he made in 3 years.

[@claytrader]

Yup... not the first time I've heard a story like this.

[@claytrader]

@No U that was part of the joke... a bit of hidden irony....

[@paulp6697]

Great video. Do you have any videos on what a bag holder is and how much it hurts? After I held 2 bags (1-$5000 , 1-$8000) I learn about stop losses. If anybody I know wants to try day trading I'll point them to you and tell them to paper trade for at least 6 months. #1 Commandment in day trading "thou shall honer thy Stop Loss".

[@claytrader]

I have several on the topic.

[@usefulawesome6301]

It is like passing a red light. Nothing may happen but how many times?

[@claytrader]

Right... ya never know