FB Ads Tracking

Upcoming Free Training Event: How to Kill Your Stress, Fear and Frustration as a Trader.

Trading Risk Management Matters

When it comes to helping traders learn how to trade smart and manage risk, there is lots of gray area. One of the darkest gray areas is when it comes to risk management. I realize this can be frustrating when trying to learn, but it is what it is. What makes things so gray? Let me try and explain.

Up $4,000. What Should He Do? How Trading Hesitation Works The Pattern Day Trading Rule Is Dangerous How Trades Go from ‘Bad’ to ‘Worse’ How Much Money to Use Per Trade?

INSTANT ACCESS: 5 TRADING TOOLS I USE

Download this free report revealing the 5 tools I use everyday to find the stocks I am going to trade.
Transcript:

We'll just start the video by getting into this commentthat kind of prompted it all, and I've talked aboutthis concept in other videos, but given, you know,the comment that we got here,it just really reinforces the fact that,you know, this does exist and you need to be aware of it,and even if you don't like it as you're about to seefrom this person, that doesn't changethe fact of the matter that it is what it is.This is how you need to go about things,this is just the way the world of trading works.So here is the comment.First off, just take note to the far right,you'll see this video was about risk management,so you see trade risk there.So again, a video about trade risk management,and then we'll get over to the comment which says"it just depends? What a useless answer."I probably could have put this into the ClayTradermail section for just a poor learning attitude,but we won't go there, but when you're newand then you're telling people what is uselessand what's not useless, that's probably not the best wayto approach learning or life in general,but like I said, we'll move on from there.So what did I say?It depends.Well that was the whole premise of the video.So let's start off from the top.And like I said,it was all about trade risk.So this, you know, kind of the overarching umbrellaif you will that was being talked about.How to manage risk, you know, risk risk risk.And I realize that's not alwaysthe most entertaining thing possible.It's always great to talk about winning trades and all that,but risk management, risk analysis, risk control,all of that matters, and that's what the video was about.So the answer that I gave in the video waswell, you know, it depends.And of course, it depends,it referring to trade management and how to go aboutall of that, is what that person deemed, you know,we'll just kind of put an X there.You saw it, worthless.But it really does depend, it.Risk management matters because of this factor.And if you watched past videos like I said, this is not new.Why does it depend?Becauseof this right here.So...Big feet,small feet,hair,a little hair,big hands.Point here being what?Everybody is different.Now of course all of these are physical attributesthat I'm talking about, but within being differentwhat else is different about everybody?Well this aspect right here, when it comes tothe mind.Our mental fortitude, our mental lack of fortitude.The way we video the world, the way we were brought up,the way we've experienced life, the way we just feel.It's just hardwired into us, our mind,we're all different in that regard.And in the world of trading,that would be known as risk tolerance.What is your risk tolerance?And I've done this before, but we're gonna go for it.So when I say it depends, let's just forget about the markerright now and say that I'm selling a course,or you, you know, buy a course from meabout just how to have fun.How to have fun.So, and the course saysfun equalssky diving.Now for me, because of my mind, sky diving,that does not sound fun at all, that would not be fun.That doesn't, that, no.That's just not gonna ease the solutionof I need to have fun.Now, you may be thinking, yeah,I really want to go sky diving some day,I think that would be fun.But does that make you wrong? Absolutely not.Does it make me wrong? No.What about the fun as in, book.If you want to have fun, curl up next to a fire with a book.You may be yawning now, you knows,maybe you just hit your head'cause you fell asleep for a second,'cause that's the most boring thing ever as far as fun.But for somebody else, hey, that sound beneficial,gain some knowledge, just kind of escape.Maybe fun is, I don't know, watching a movie.Point here being we're all going to define fun differently.It depends.Because of this right here.Not only are we all different physically,we're all different upstairs in our mind.And I get it, it depends is a gray answer,which to the unknown may seem like a worthless answer,but it's really not.And you may be thinking, but Clay, this is all gray.How do I know what my risk tolerance is,and we'll circle it back into trading,how does that fit into trading?Welcome to the wonderful challenging world of tradingand why somebody that's out there trying to sell youa strategy, sell you a system, sell you this, that,or the other, that implies hey, buy this,and everything else is taken care of doesn't work.They are scamming you.I'm not refuting the fact that maybe it works for them.Because well, it's them.It's for their mind.But you're not them.And you know, unless you're a perfect match,some sort of cookie cutter, out of the box strategyis just simply not going to work.Clay, but you sell stuff.I do sell stuff.I sell tools, I sell how to use tools specifically,the technical analysis and charts on how to build a strategythat's going to fit into your personal risk tolerance.But Clay, that sounds kind of like a lot of work.I have to build my own strategyafter I learn how to use the tools?Yes, that is how trading works.That is how the market actually works.Sure, there are general concepts that apply to everything.Risk management.You gotta know how to, you know, trade with risk in mind.But within that, there are all little nooks and cranniesthat's gonna be dependent on well,you as a human being up here.So no, it is not worthless when somebody says it dependsin regard to some aspect of trading, because it really does.How do you want to have fun, well I don't know, it depends.Are you an adrenaline junkie?Do you like to just curl up by the fire?None of those is wrong, it just dependson your mental, you know, makeup.And the same exact applies to marketing.So sorry, I can't even rememberwhat the person's name was in the comment.I wish I could tell you that, you know,there was an exact specific, you know, answer.But yeah, it really does just depend.If you are out there trading alone currentlyand maybe are in the market looking for a community to jointo assist you in your trading, or to just help you,you know, give you another set of eyeballs,then I do have a private trading communitywhere you can trade alongside meand other experienced traders.So what you see popping up on the screen right nowis both an information link, so if you click onthe inner circle one that is going to take you to the pagewhere I explain all the detailsof what exactly come with the community,both the chat room and the newsletter,and then the other image that just popped upis a behind the scenes tour where you can seeexactly what is going to be contained within the community.I take you through like I said a behind the scenes tourof everything, and that way you'll know preciselywhat you are getting when you join.So definitely check that stuff out if you are interestedand thinking about, you know, wanting to join a community,and let me know if you have any questions.

Let Me Help You Get Started

arrow mwc logo comment google-plus facebook instagram twitter youtube3 linkedin2 email itunes feed2 soundcloud phone stitcher play3 envelop bubble bubbles4 wrench bell notification stop search menu question-circle books hammer binoculars pin icon-tunein chevron-right check in calendar number1 number2 number3 number4 number5 mobile2
close ×

FREE TRAINING EVENT!

How to Kill Your Stress, Fear, and Frustration as a Trader