Mastering a specific trading setup through practice and screen time leads to consistency and confidence.
Protecting against big losses and being able to execute a plan are crucial for long-term trading success.
Deep dives
Scott's journey to becoming a trader
Scott shares his journey of becoming a trader, starting as a stockbroker and transitioning to day trading. He emphasizes the importance of finding a setup and mastering it through practice and screen time. Scott also discusses the significance of mental capital and waiting for high-quality setups rather than trading mediocre ones. He highlights the need for a max daily loss to protect against big losses and the importance of being able to execute a plan.
The importance of executing well and learning from losses
Scott emphasizes the importance of execution in trading and the need to practice executing trades with small amounts of money. He advises traders to focus on becoming specialists in one setup and gaining confidence through consistency. He also discusses the challenges of managing losses and the need to learn from them. Scott believes that being able to handle being wrong and stop out when necessary is crucial for long-term success.
Scott's mean reversion trading strategy
Scott explains his mean reversion trading strategy, which involves trading against the trend and focusing on fear and greed. He relies on Bollinger Bands and moving averages to identify setups and uses his experience and judgment to determine entry and exit points. Scott stresses the importance of waiting for the right opportunity and only trading when the market presents high-quality setups.
The market's influence on trading success
Scott discusses the cyclical nature of the market and how it impacts trading success. He notes that while recent years have been fruitful, it's important to recognize that opportunities might decrease going forward. Scott advises traders not to push if the market isn't providing suitable setups and to focus on preserving capital and sticking to their proven strategies.
The trading market can quickly change in the blink of an eye. Have you ever found yourself wondering what it would be like to lose MILLIONS? This exact moment happened to Scott but, through his resilience, he recovered. In today's episode, we cover the highs and the lows of trading. Scott shares his best and worst moments through his three-decade trading career. A lot can happen in 30 years. Remember, you can't beat the market but, you can certainly learn it. Scott went against his instincts resulting in his consistency. He changed his set of rules and learned the concept of risk management. We all experience difficult moments, how we come back determines our futures. If you find yourself struggling to find consistency while managing risk, this episode is for you!
