The 8 Must-Haves to be a Profitable Trader

How on earth do you become profitable as a trader when the stats say only 3 percent of traders make money!?

I've been trading (profitably, and consistently beating the market) for the last 6 or so years. I've seen everything from people blowing up their account, losing everything, and getting burned trying to make money day trading or forex trading.

Making money as a trader requires more than guess work, tips from a friend or looking at stock charts.

This episode covers:

The eight tips every future (or current) trader needs to make money, common mistakes and obstacles that stop MOST new traders from making money, why anything other than systematic technical trading is basically gambling, what systematic technical trading actually is, and how to become the most profitable stock trader using proven methods that actually work.

I have an exciting announcement on getting the right training you need as a trader. 

Sign up here to be on the list and in the know: mswealthy.com/trading

xo
Simone

----------------------------------

LEGAL STUFF: All content provided by Ms Wealthy Pty Ltd (we, us, our) is for education purposes only. Any use or reliance on this content is entirely at your own risk. The content is factual information and general comment only and does not constitute advice. We are not providing financial advice or financial services, and are not dealing in financial products. We are not providing a recommendation or statement or opinion intended to influence you or any other person in making a decision about a particular financial product or class of financial products. Case studies and examples are purely for illustration, and are confined to their particular facts. The content does not take into account your personal objectives, situation or needs and may not be appropriate for you. The information that is found here are my opinions, and should be taken as such.

Listen in here, and where you get your podcasts:

Prefer to read the transcript?

You're here because you want more out of life, more money, pleasure, flow, freedom, luxury. He, uh, we are all about an unwavering Southwest and a net worth. You love to talk about. My name is Simone Mercer-Huggins. I'm your resident unapologetic wealth queen. So far I've built seven figures from the ground up. And these community is now doing the same. The Ms. Wealthy movement is here to help you be more of the bad-ass queen. You were born to be so tune in for everything, investing money, energetics, millionaire, mindsets, and everything in between. If you want to be a powerful player in the money game, in the right place. Welcome to the kiss, my money podcast.

Sure.

Beautiful people. Welcome back to the kiss, my money podcast. Hey, this episode is all about trading and I want to say a quick caveat before we dive in. If you have been tuning in to learn about investing, then I want to say real quick that trading and investing a completely different wealth creation strategies that entirely different, uh, I guess, ways of building wealth, ways of approaching investing. And so I don't want anyone here to think that investing is trading or vice versa because it's not. So if you have had an interest in trading before, then definitely tune in if you're just intrigued, but you know, definitely want don't want to ever trade. Then obviously listen, because the more obviously you get educated about this, the more you can kind of get equipped. I know when I first started learning, uh, I, I didn't even think it was for me really.

I still had a lot of blockers around like, Oh my God, I'm not a hedge fund manager. And you know, I haven't done a degree or whatever. I'm not, I can whiz at math. And so I could never become a trader and this is still after I became an investor. So it wasn't until I started learning that I was like, Oh, Holy crap, this is actually something I could do. So really my transformation to become a trader. And now I am consistently profitable trader, uh, started just with learning. So definitely tune in. But I do want to say that, you know, if you have like this FOMO around trading, that it's not, it's not necessary. Trading is something for someone who is really, really fascinated and geeks out about the markets. And if that's not you and you have a busy life and you know, that's just not something that you'd want to make the time for.

You'd need to know that you can become financially free through investing, investing alone. And it's not like trading has to be part of your portfolio, or it has to be a system or a strategy that you use. Um, I want to say that really, really clearly because, uh, it's not the case at all. Most investors, well, most people actually suit investing. There's only a very few small subset of people that go on to become traders. Once, once they kind of learn about the financial markets. And obviously that means there's still millions of people that become traders, but it's less than the number of people that are investors. So I want to talk about a couple of things. You know, I've recorded a couple of podcasts in the past. I have a podcast with my trading mentor, Adrian, and his program is the only program I recommend in the market that exists.

I've seen many others. I know the ins and outs of exactly what to look for with people that try and sell trading programs. It's a very unregulated market. Uh, so there's a lot of Forex scams and, uh, people that claim to be traders, but don't actually show you exactly how to do it. I've seen trading programs range in the 10 to $12,000 range, which is just obscene. Uh, and you know, I know that one program also teaches one single system. And when it comes to trading really my God like anything, it has to be a strategy that fits you, same with investing. And so you can't possibly learn one way of trading because it may not fit your personality, which I'll talk about in this episode. So I'm going to record a few podcast episodes on trading coming up over the next month. And the end of may, I'll be talking about a trading program for those that want to learn more about trading and learn how to become a profitable trader.

It's the same way I started. I learnt exactly in the same system on, on this program that I'm going to be talking about. So if you want to get on the wait list, I'll only be talking to my wait-list, um, people from on my email list. So if you want to get on that list and make sure you're on that to get the best possible price and exactly learn more about it, then head to Ms. wealthy.com/trading and just input your details there. And then I have you on the list and you'll get all the information. All right. So I want to talk about the kind of eight, really the eight big things that you need to know to really win the game of trading. They're going to be top line. You know, I mean, I could dedicate my entire life and company just to teaching trading, um, which is why I am an affiliate for my trading mentors program.

And it's why I don't focus specifically on trading because he is amazing at what he does. I have been through the program, he coached me from the beginning, um, and it's, uh, it's really something that people geek out over. And I have my hands full teaching people around money management and investing. Anyway, my point is there is just so much I could cover and talk about. Um, and so we're going to talk about these eight things first, and then I'll record a couple of extra podcast apps, but really w everything that you learn with trading, it really turns into a super steep learning curve, but it can be so fun and so rewarding. And it's honestly the best thing that I've ever ever done. I absolutely love it so much. And I especially love seeing more women become traders because, you know, the investing industry is male dominated and more men invest than women, but when it comes to trading, Oh my God, the gender disparity is even bigger.

So I just love seeing more women get into the space. And I love seeing kind of more women join investing bootcamp, learn about that, get really confident and then see how possible it is to then move on to trading as well. Okay. So the first thing, really the biggest thing is about the method that you become a trader in. So the first tip hack is to use a profitable system. And if you're like, what the crap does that even mean? Basically a system is just a set of rules and I mean, really it's an algorithm. And if you think about anything, uh, like an algorithm, the word algorithm can sound really scary and be like, Oh my God, that's really complex and confusing and that's too much, but really an algorithm is literally just a set of rules. So like, if this happens and this happens, and this happens, then we buy it.

And if this happens and this happens, then we sell and it could be like, um, if we have, you know, five updates in a row combined with this amount of volume, you know, trading volume, or if we have like, you know, the stock has reached its highest high that it's been there ever in the last year, then that is an indication that it's trending, for example, or we can use lots of other different things. Like if you've kind of researched stuff around trading that you might've, might've heard of things like Ballinger bans or Fibber knacky or God, there's just so many, I don't want to get into the kind of deep technical stuff right now and kind of ease my way in over a couple of podcasts. But, um, uh, the whole point of a system is that it's just a set of rules that turns into an algorithm, which sounds really scary.

It's really not. It's just putting those rules together and then you go, okay, well, my exit rules are, if it drops by 20%, then I want to get out or you might have a profit target, which I don't personally do, or also really love because the whole kind of point of trading is to let your profits run and cut your losses short. I will say that a lot. You'll also hear other kind of really pro traders say that a lot. Uh, and so when you take a profit meaning, you know, you hit a profit target and then take it out of the market. It means that, well, you could have got another 20% profit the next day or another, you know, $200, $2,000, depending on your capital. So you actually exiting and taking that profit is like, well, yeah, but you could have left it, you know, so, but you can use that as a method if you want to.

I just don't love it. And then you can have other exit rules that might say, you know, based on volatility or liquidity or moving averages, or again, you can use Ballinger bans or any number of different kind of exit rules. And you just use those different roles and you put it together and that's called a system so that the, the inside is kind of the algorithm, but the algorithm is essentially the system. So when I say use a profitable system, basically that means you use a set of rules that are proven to work. And the amazing thing about using a system is that you can back test it so you can back test it on past data. We have decades and decades of decades of stock, market performance and history and data. And whilst the market doesn't always move the same and past performance doesn't equal future performance.

There are patterns, there are 100% patterns that you can pick up, pull out and turn into a system and go, well, this happens a lot. This breakout or this price surge happens a lot. And so you'll always see, like there are tens of thousands of stocks around the global markets that you can test this on. So it's not only do we have decades of data. We also have tens of thousands of stocks to, to check whether a system really is profitable in the past and how much it performs and if it performs well, and then you can, uh, prove essentially that those rules work and then you start trading that system. And I mean, I could just, I could a whole episode on how great systems are, but this essentially removes all of the emotion and biases that everyone in the world has including me.

So we all have these unconscious and sometimes conscious biases about how we think something might be profitable or how we think something should perform, or like, Oh my God, this would totally work if I bought this and then sold it in this way. And the great thing about system is you can test that theory so you can go, well, if I put these bunch of rules together and then I test it and you can see how profitable it is, like I have gone through multiple systems of testing and they did not perform very well. Um, and obviously you wouldn't trade a system that isn't profitable and then you can also do it on the flip side, around using this in different markets, capturing different trends. So regardless of what the market does, whether it's, you know, a strong ball, strong bear, if it's a sideways market, but it's like kind of sideways volatile, you can catch up capture shorter term, um, breakout trends, for example, or mean reversion.

Now for total beginners, you will not know what these terms mean and it's totally okay. Don't worry about it. Um, it's very much like the jargon that is used in the investing industry. Like once you actually have an explanation of what it means you like, Oh, is that all, it's actually not that complicated. That's actually, it just sounds really scary, but so there are different ways that you can profit from the market, regardless of what the market is doing, because the market performs know very differently. We obviously obviously have crashes, which has cold bear markets, but you can employ a shorting strategy or an inverse, um, strategy at that point. So inverse would obviously be less risky because you are trading long, but on inversely correlated stocks, uh, or shorting would mean that you are capturing the downward trend. Now this is a very different strategy.

Shorting involves a lot of high risk. Um, but it, you can mitigate the losses and kind of, you know, get jumps in performance when your trading portfolio would either be out of the market. So you wouldn't be invested whilst you are sitting through a bull market, um, or you can, you can definitely have very profitable shorting strategies as well. I don't know if you can hear the birds outside really loud, they've decided to have a real chat. Maybe they're also excited about training. Um, okay. So that's number one, use a profitable system. And this also means that it cuts out what is called discretionary traders and discretionary traders means you kind look at us, chaat, make a couple of decisions. Don't test the theory. Don't use a system. This is very time intensive, and you don't know if your emotions are coming into play here.

And this could then mean you could be profitable. It might mean that you're not profitable, but you don't really have rules to say, yes, this is what I do. And so it's kind of arbitrary. And the decision fatigue around this is what stresses most novice traders out. I've met many traders along my journey. I remember when I was first kind of getting into it. And I lived in Dubai for about seven months with my husband. I was developing my one of my trading systems at the time. And this is not something that you have to do also, by the way, you do not have to do it the way I did it. Uh, you don't have to develop your own systems. So I will talk about the program and why it's so different to a lot of programs out there and why it also shortcuts your success. Developing your own system does take a fair amount of time. The learning curve is really steep and it's not something that you have to do. So the program that I'm going to talk about actually gives you pre done pre done profitable systems, which is like, I didn't, it's amazing. Like I wish this was available to me at the time when I was learning. Um, so anyway, that was a tangent.

The whole point is that when you

Don't have something that is a system in algorithm with a set of roles, you don't actually know if you're winning or losing. When I was in Dubai, I met a bunch of, I was just craving some kind of, I essentially trading gate buddies. And so I went to a couple of meetups with other traders, and of course I was the only woman woman. Um, and I, it was just shocked. I was shocked because when I learned, I was fortunate enough to learn the profitable way to trade. I never went through a period of trading where, which actually a lot of traders try and do their try and do it by themselves. And they'll have a, you know, a run streak of months of just continually, continuously losing money or barely making any money. And then when you actually compare that performance to the market, which is very interesting because on the, if you start trading in a really strong bull market, then you might think that you're great.

You might think I've just like, I'm just naturally really good at this, even though you may not have any strategy, but when you actually compare it against market performance, as a trader, which most discretionary novice begin a trade is, don't do, uh, then you'll probably see that your performance is relatively crap. And this is essentially what was happening when I met these people in Dubai, um, they kind of, they didn't have any rules. They were basically very discretionary. They liked kind of talking about it, but they didn't seem to have any strategy or system around it. And when I asked them what their Kager was, so KKR has literally just compound annual growth rate, meaning the return, the performance that you get year on year. And I'll talk about what you can kind of expect as a trader soon. But I want to ask, you know, about different metrics and stuff.

And literally his like pretty much everyone I met their response was like, ah, you know, I like, I'm, I'm thinking I'm mostly up. Like that is, that is not a strategy. Like, why are you doing this? If you think you mostly up. Um, anyway, so this is why using a profitable system really is the only way to trade it. Like if you're not using a profitable system, you're gambling, that's, I'm gonna come out and say it straight up and be polarizing for a lot of traders that think they're really good without a system. But I don't like I haven't met a single, non systematic trader that is profitable consistently long-term and has that as part of their portfolio, like an, a reliable, um, wealth strategy. Okay. Number two, trade with the trend. And I kind of mentioned a little bit of this in number one, which is we have different trends.

Some of them are up, some of them are down. Some of them is sideways. Some of them are short. Some of them are long meaning a short timeframe or long timeframe. And some of them, you know, obviously you could use a long strategy when we're in a strong bull market, you would use a strong, short strategy or an inverse strategy. When we're in a bear market, you would use a short term strategy when we're in a sideways volatile market. So you can capture different trends based on what the market is doing. You can have multiple systems that, um, activate essentially, depending on what happens with market conditions. So you can use different filters like when the index, um, does X, Y, Z. And if you don't know what an index is, this is why I say to people learn investing first. So if everything I'm talking about sounds like I'm speaking another language, then it's probably maybe an indication you need to learn investing first and need to learn, you know, the industry speak and exactly how the market operates before you move on to trading. I only say that because you just

Not setting yourself up for success, because if you jump in as a trader, trying to learn without the base knowledge of exactly how the market works, it will feel really daunting. And I want you to be set up for success. Like, you know, when you dive into something you like, yes, and then you shout learning, like this is way too full on. And then you kind of like self sabotage. She like, well, I can't do it now. So I don't want that to be the case, like slow and steady, learn the basics, learn the foundations, get all the knowledge that you need and then dive into trading. If you have all the investing knowledge, great. If you know exactly how the market works amazing. Um, then you're kind of ready to move on if you want to. So trading with the trend really just means capturing the market.

You obviously wouldn't try and use a bull long-term trend following strategy in a bear market. And yet people try and do it. So there are different trends that you can capture and you can start off with, you know, the most profitable system first, which is a long term trend following system. And obviously the trend of the market is up. It's always up. Long-term, it's always up. We have corrections and crashes and it's volatile, and sometimes we have sideways, but the long-term trend is always up. And so that is the most profitable. Then you can use different, shorter term strategies to capture in between, and then you can trade different markets. So obviously you could have multiple different systems depending on your capital and how much you have to allocate. So when I first started trading, I started with about, I think it was $10,000. Um, and that was still a lot of still felt like a lot, but I had been invested and investor for a while and I'd lived through a bunch of corrections. Um, uh, you know, I'd, I'd seen what the volatility meant and felt like. And then I started paper trading before I actually started trading, which was an, like, I definitely recommend to a lot of people to do, uh, because it definitely ironed out some kinks of where I thought I had everything kind of down Pat. So number two, trade with the trend, number three, use a stop loss.

So her eye, this was really, even if you are a systematic trader and you use a profitable system to trade with, sometimes people still don't use a stop loss and surplus. So do you remember how I said a little while ago? The mantra is always cut your losses short, right? Let your profits run. And so a lot of people when we have unconscious or unchecked biases around, no, I know, I know this stuff's going to turn around. I know this stock is going to turn around. It's D it will, it will, it will, it will. And we see it full and full unfold and keep going down and down and down and you double your losses and it can happen to even the best or traders. I have done it myself. I let my lesson and I won't ever do it again because I got burnt and it can be hot.

And this is, this is probably one of the things that does differentiate between a profitable trader and one that is a novice and doesn't use stop-losses or gets emotional about it is the ability to take a loss as a trader. You will take a loss. So you will exit trades at a loss. Now you will always use risk management strategies and positions, sizing strategies to make sure that that loss is insignificant and small, but you're not going to be right. A hundred percent of the time. And that's, what's really important to differentiate and know, as a trader, if you have someone that it's like, Oh God, I could never, then trading is not for you. So investing and trading, and this is probably like why it's such a different strategy because trading means that you will be long and you will wrong, and you will have to exit with a loss.

And so using a stop loss means that you cut your losses short. You're really clear about what your exit is at what point you will get out, because Y you've tested that system. You've tested that role of like, okay, if a stock drops by 20%, then I'll get out or for 25%, or if it becomes, you know, this volatile by this measurement, then I will exit and using that stop-loss to exit when that price hits that amount and getting out and, uh, can be hard, especially the first couple of times, or even when you're starting with a smaller trading count, but it's just part of the game. You win some and you lose some, but obviously when you have a profitable system, the losses are irrelevant to the long term strategy. So I want to give you an example. One of my systems, my most profitable system is correct about 45% of the time.

Meaning 45% of the time I have winning trades, I will, I will exit with a profit 50% of the time. So I'm more than half I exit with a loss. So I take a loss from the market and currently where my trading account is at. And based on my risk management and position sizing, these are all things that you learn about. I am currently at a risk percentage or like a risk amount with my current trading, um, account size at about a thousand dollars. So I am exiting a trade currently at around the thousand dollar loss, Mark 55% of the time. I haven't had many recently, but that's literally that's the game, but that is insignificant compared to the win that you make. So if you're, if you have a profitable system that is 45 55, and you have 45% losing, sorry, winning, then it means every time you're taking that loss, but on the winning trades, forty-five percent of the time that win could be 3000, 4,005, six, seven, eight, 10, 15,000.

So every time you take a winning trade, the percent that you are actually losing at that dollar amount is obviously far less. And this is why when you look at a whole system, it's not about just one number. It's not just about, um, how much you lose per trade. It's about so much more. And this is also why it's so important to learn systematic trading and learn the different systems that you can use as a trader to suit you as an investor. So if you dive into the sorry, as a trader, if you dive into the trading world, you'll learn a term that is called the Holy grail. And essentially every trader is kind of looking for the Holy grail, which essentially is your trading edge. So like having an edge in the market means that, you know, you get superior returns, and it means that you will consistently beat market averages as well around market averages, around trader.

Obviously it's pointless. You becoming a trader if you're not beating market investing averages, um, because otherwise you'd just, what's the point. You just become an investor. So that's why, uh, people do get into trading because you can see returns of 20 to 20, 25% instead of investing at kind of the 10% Mark. So you can see them at around double. Now that is with a really system, even with, you know, starting out or with a, not as profitable system, you can still see a 15% kind of return, but just as with investing, the same is with trading around. It's not always consistent. So some quarters or years, because you won't see that you might see 30 to 40% one year and then 10% another year. And because, you know, obviously the market changes. So it's not like you're going to get 20 to 25%, literally every single year, if you're looking for stability as a trader, it's not going to happen.

Um, but when we are seeing returns like that, it means that obviously it's worth it beating, um, investing averages, right? I just realized I've gone off on so many small tangents. Let me bring it back. So I was talking about using a stop loss and cutting your losses short, and some of the metrics around, you know, the numbers that you see, but this is again, why it's just so important to learn the ins and outs of using a systematic trading system that it fits you. There is no one Holy grail. So just like when people ask me, what about this stock pick of like, what's talk, should I buy or looking for that? Like get rich quick thing. It doesn't exist in trading. The only Holy grail that does exist is the one that fits you. So having a trading system that fits your personality.

So some people won't be able to tolerate only winning forty-five percent of the time. Some people need to have a strategy that wins 70% of the time. And this is why it's so important to actually know exactly what you're trading. And when I were referenced before, I've seen other trading programs that they say, they show you how to trade, but they don't actually show you the system or the rules behind it, or exactly how it operates and how, like, how can people be confident about us trading with signals or being told what to trade or buy and sell. If you don't know how the system is actually operating, if you don't know what the actual rules are, if you don't know exactly the ins and outs of what that system is doing, how could you possibly be confident? The only way that you can be confident about system is one that you have back test and proven to be profitable.

One that fits you as an investor and your personality. So, like I said, some people won't tolerate a 45% win rate. You might need 70%. Some people won't want to trade once a day. So end of day, for example, I am an end of day trader. I tried about 20 to 30 minutes a day, that's it? So after market is closed, I get the data. And then I get all of my either exits or entries for the next day before market opens and I place them. So that's it. But for some people you might want a weekly system, which you most definitely can do, and you can most definitely be profitable trading one time per week. So this is why it's important. I've gone off on such a tangent. Okay. Moving on to number four, only risk, a small percentage per trade. And this is what I had mentioned before about risk management and position sizing.

So this is something that is really important, but what most traders don't properly do often with discretionary traders, they kind of just make it up or they kind of go, Oh, I'm just going to know, do whatever this, this much. So there's no actual rhyme or reason, but using risk management and position sizing, it's kind of, I mean, God, it's as close to the Holy grail as you can get, because you are, you're managing your risk. Like obviously you can't avoid risk, but you can manage it. And there are many different strategies that you can use on the, on this, uh, but you know, ones that work really, really well. So only risking a small percent, you know, obviously this comes down to diversifying, but it's also about you don't want to blow up your account. Like particularly if your, you have a system that's a 55% lose rate, well, you're risking 50% of your capital. That's not a good strategy. So being really clear about what you're risking, um, and knowing when you're exiting and using that is just so important. Number

Five, okay.

Along the timeframe is always better. So I had mentioned before that trend long-term trend following is the most profitable, and it's true, really with kind of everything you can capture really great gains. And it's, it's really amazing to have different strategies for different market conditions. But for example, you wouldn't use a swing trading strategy or a breakout system in the short term or profit exits. For example, when you have a long-term, you know, bull rally for two years, it wouldn't make sense. Otherwise you're literally leaving money on the table. So having a longer timeframe does work best. Just like I say, all the time with my investing friends is not a get rich, quick scheme. So you can make a lot of money trading, but it doesn't happen overnight. And if you haven't guessed already trading is not day trading. So a lot of people do kind of want to learn about trading, and then they start getting this idea that they want to become a day trader.

So a day trader literally just means you are buying and selling within the day. So you exit when the market closes, which means that you don't hold any positions overnight, because most of the time, uh, companies make announcements or even the government government can make like regulation announcements or, uh, you know, market movements, uh, in the U S well open or close. When other markets around the world are not open for example, and this kind of just really controls massive volatility and kind of freak out and market hype. So day traders essentially get out. And so they have all of their capital exited the market when the date is over. And then they start again and buy in, you know, on one minute bars, five minute bars, 15 minute bars, our bars. And so it also means that you are stuck to that computer because well, you have to be in and out based on market movements and you don't know what the day is going to hold.

And, you know, you can be whatever, like totally up in the morning and then it can take a dive in the afternoon. Like no one can predict it. So it's highly emotional, very volatile time intensive. You have to be stuck to a computer. And most people blow up their account and don't make money. But people think that it is a strategy to replace their income because a lot of people sell this idea about day trading, um, when really the only people that are making money, uh, the people that are selling that program, I've seen very few people that can make money as a day trader, um, also the data too. So there, the cost of acquiring the data for day trading is much higher. Like, like it's quite high and you're also competing against HF T traders. So high frequency traders that capture really, really, really minute, um, spreads in the microseconds before a trade is placed essentially.

And this, like, it's a billion dollar industry. They have like super computers and it's insane, but it's irrelevant full long term traders because micro market movements aren't as significant to your trading profits, but they most definitely off a day traders because you're only capturing small movements, right? Like you only have the day to make a profit. Like it's, it's not like you can just watch us, uh, stock saw over months so long, the timeframe, if you haven't guessed, I don't advocate day trading, um, number six, don't fall in love. So I love, love, love, emotional, you know, nervous system regulation. I, I love, um, getting really emotional and falling in love with your goals and your dreams and having a vision board. And when it comes to manifesting feelings are the magnet to pull in your desire, but emotion and love have no place when it comes to being a profitable trader.

So this is, this is so, so key because a lot of it really is like often we have these biases and like, we fall in love with a stock, for example, or you kind of want to know what the stock is, or then you start reading the news about it, or then you, you know, if you've heard someone talk about it, or if you get like a signal in your system to buy a stock and you know that Coke, obviously you always get a code, a ticker, and sometimes you can identify what that ticker is just by seeing the tikka, what exactly what the company is. And sometimes you don't know, or you could go off and do some research, which would then stop the process of fundamental analysis. But really once you start down that rabbit hall, Oh, it becomes hard to not be attached because your emotions are involved.

Right? So really when emotions are high intelligence goes down when it comes to trading and investing, because we can't make highly intelligent decisions that need to be numbers base, which is literally what having a profitable system is. It's all numbers based. It's not like who sits on the board and what have they done before. And, um, you know, what does the P and D ratios for this sector of the market? Like, it's none of that because so much of that is so subjective. And so getting emotional or falling in love with the particular stock will ruin you as an investor. It will exhaust you emotionally. And this is why it's so important to have a system because you've proven it, you've tested it. You know, the numbers works, the numbers don't lie and falling in love, just doesn't have a place here. So reserve your love for people in your life, your love, uh, your partner, your family, and be as logical as you possibly can be when it comes to systematic trading.

Okay. Number seven, have a plan, have a plan, have a plan, have a plan. I can't say this enough. Um, and this really like, it just builds on you having a system. You know, this, having a profitable system is like the start of your plan, but it's kind of like, what will you do with dividends? What will you do with additional capital? What we do when the market moves against you, what will you do when you lose 10 trades in a row? What will you do when you know, something unfortunate happens in your life? Like your family dies, um, or I don't know, your dog dies or something massive happens, or you're hospitalized and you can't use your computer. Like if you are an end of day trader, it means that you need to be an end of day trader and missing a day can mean a miss massive loss missing two days can mean even bigger.

Missing three days could mean even bigger. And so it, for example, if you get a cell signal on a trade and you don't exit, and you don't get out of the market on that stop loss, so you can have in market stop losses. Um, but if you don't have in-market stop losses, then the market can move. And also just because you have them, if you make a limit order on a stop loss, um, and the stop gaps, you know, below what that is, then that could mean that you don't get out. So you still need to be checking them. But if you don't have a plan, it means that most of the time when emotions are high, for things like sickness, or if something takes you out or your family gets sick, it means that what happens, intelligence becomes low. So having a plan for exactly what will happen in extreme events, but what you'll do with your money, um, and making that when your calm and rationally minded, because you just want to be able to make a decision when emotions are highest.

This is why you always come back to your plan. Uh, so having that is just so important because it also asks you questions like, does this actually fit me as a trader? Does this fit my personality? Does this suit me? Do I want another system in the future? How much of my capital way allocate to each system? Like, again, you will learn all of this and have the exact questions to actually ask that, go into this, but having a plan is so key. Okay. Number eight. And am I, God, I could just talk about so much more, but number eight in the final one is having small phase, keep your fees low. And this is everything from brokerage. So, which is really why it's so important to have a low cost broker account. Um, because, well, if you, I mean, if you don't know the impact of fees, then again, this is why you need to learn exactly the, like what it actually looks like having a difference of half a percent in fees and how that can be hundreds of thousands of dollars.

And if you don't believe me, then you need to go and learn the financial foundations, first of investing and companion trust and what fees mean and the significance of it, because this is like, this is what I mean when I say, if you don't have these foundations, then you, you're not going to be as profitable. Like the impact of not knowing basic stuff like that, at least basic for becoming a trader could cost you hundreds of thousands of dollars. And you won't even know it because it's just money that you're leaving on the table. So keeping your fees as low as possible. And obviously there are some really amazing low cost, uh, brokerage accounts. And then also getting really clear about tax implications and how to operate as a trader. So personally, this is going to be different for everyone depending on where you live.

So the tax rules are going to be different, but in a lot of cases, you can operate your trading account as a business and get a lot of tax benefits or tax reductions. And therefore also offset a lot of costs associated with, um, trading, uh, that you can't often do when it comes to investing. So, uh, this is kind of just about, you know, obviously the less fees you pay fees, including actual brokerage and, you know, slippage, but also keeping profits. So the impact attacks can mean the difference of, you know, eventually you'll become a trader with, even if you start with $5,000, you become a trader with $10,000, and then you become a trader with 50,000 and then you become a trader with 200 and 500 and then a million like that is the whole point of becoming a trader to, you know, build wealth faster. Um, and so the impact of this starts to become freaking huge. So it's really important to get clear, get educated around keeping that low so that you can be as profitable as possible.

Wow.

I just feel like I've scratched the surface. I mean, I totally have, but there's so much more I can talk about. I wanted to go through these top things first and then the future apps. We'll talk about more about specifics and what it looks like. You know, what I do as a trader, if have you been seeing some of my Instagram stories, then you would have seen that? Um, you know, I'm very transparent about my finances and investing, particularly with the women inside investing bootcamp, but I have, my trading account has now hit just over 220,000 remembering too. I started with $10,000. Like that was, I think it was six or seven years ago. That's what I started it with. And I've been growing, investing on the side. So why don't put everything into trading. So part of my risk management and my asset allocation, again, asset allocation is something that you've learned as an investor, uh, in terms of investing in other assets and allocating your entire portfolio to other assets to match you and your risk tolerance, annual goals.

So that's really key. So, uh, this year I'll be growing my trading account to be even bigger. My focus is to hit over 250 K in my trading account by the end of 2021. Um, and then to continue to scale that. So I know based on backtesting my systems that it's a multi-million dollar system, like zero doubt. Um, and that's, what's amazing. You can actually see exactly how much you can make in a profitable system. So, as I said at the beginning, if you want to learn more about this and learn the exact program that I recommend, then I'll be talking more about this over the next couple of weeks. And there'll be an opportunity to join that program, which I highly, highly highly advocate for. So make sure you are on the list. So head to Ms. wealthy.com/trading, and then get yourself on that list. And then you'll be notified of all the details coming up.

All right. I hope you love this episode and I'll see you for another one next week. If you are not part of the Ms wealthy movement yet, make sure you head over to Instagram and hang out with me. There I am at Ms. Wealthy official, and if you need anything else had to Ms. wealthy.com and you can get all the info that you need. Find us on Facebook as well. And I'd also love if you can drop a review on iTunes, it supports us massively, and it means the freaking world.