– Like you can have a 99% win rate and still lose money in the long run.
(upbeat music) – Welcome back everyone, I'm sitting down today with Karen Foo in Singapore.
What's up, Karen? – Sup, Etienne, good to see you again.
– It's been a year, we've been here and I just like the fact that it feels like it's been a couple ofdays, like that seems funny.
– Yeah, it seems like last year, it seems like so Etienne, time flies.
– Amazing, so I wanna talk today, I wanna ask you some tips and things that you can show people.
Last year we did the two things, or like two years and we do it together.
Last year we showed some lessons.
This is going to bedifferent a little bit.
So, I wanna ask you foryour best three tips.
You don't have to go toofar, you could share a lot.
I know you have a lot of tips, a lot of lessons, a lot of advice.
But let's go like threethings that you've learned over the past few yearsof trading for Forex that you think wouldhelp viewers get better.
– Three tips, so everythingcomes down to three tips, okay let me try.
The first tip is you know, if you're a big enough trader one very important thingis don't freaking rush it, just don't rush it.
Like way too many beginners, they just come into trading, they be like oh I can trade1000 to 5000 within one week.
(laughing) – Typical, typical.
– Then it's like, it givesyou this false illusion that you can get rich quick.
And this is a mistake that Imade when I first start out.
'Cause I turn a 1k accountto a 2k account in one day.
Then I'm like whoa, 100%returns in one year.
You can do that for one day.
But my question for you is, can you do that the next month, next year, two years later? Like you need to be realistic, but at the same time, think big.
You know what I'm saying? Like a lot of you aresaying the comments section or somewhere, you know who you are, saying that I can turn 1K into 10K.
You don't even have 5K, I'm like, you need money to make money, okay? But what I'm saying isthat it all comes down to, don't pursue this to get rich quick.
– I think the same thing goesto like the action you take.
Like some people, they're gonnaback this, like they start.
They're going at thislike ten times in a week.
But then after the weekthey're like burnt out, they do nothing, and they sell it.
So you gotta be kind ofconsistent in your work.
Like you work, you takesome time off perhaps and work more until youget to your result, right? – You get burnt out, like what Etienne said.
You put in the hard work, put in the patience.
– You need to just be disciplined to work hard and alsowatch your account grow, like it's hard.
It's hard to wait, it's hard to work hard.
That's why most people don't do it.
That's why most people comehere to get rich quick, which I don't believe in that.
Even though that people will sell you that kind of lifestyle, but Idon't believe in that, okay.
Then the second tip.
But if I am to sum up everything.
Start finding your holy grail.
– Yeah, it's big.
It's challenging to find theperfect thing all the time, that kills a lot of people.
Because I feel like people like follow us in the past, and youprobably see the same thing, is that they wanna makeeverything perfect.
Like find the perfect strategy, find the perfect thing, and when it's not perfect, they quit.
– Yeah, like if you develop your system and then you find thatit's not profitable, then you retest that precedent, or you add one new strategy.
Sometimes the reason whyyour system doesn't work is probably because youjust stick to widening the target price a little bit, or maybe tighten yourstock bonds a little bit.
Maybe its just that one smalladjustment you need to make, then your system will go from not being profitable, to profitable.
Now here's the thing, when itcomes to finding a holy grail, nobody has the holy grail, nobody, like nobody.
Even Paul Tudor Jones, youknow Paul Tudor Jones right? – Yeah, of course.
– In 2008, while other people are dying, Paul Tudor Jones made30%, 30% positive OI.
So a lot of people thinkthat, well probably, that Paul Tudor Joneshas a very high win rate, 90% win rate, maybe he hasthe best system in the world.
Now here's the thing, Paul Tudor Jones, the last time I read about him, he only has a win rate of 45%.
– Not no more than half, so how does he make money in the long run? By having a good history.
Do you see him waiting aroundsearching for the holy grail, attending get rich quick courses, after get rich quick courses? Like he just take what he has, even though its not perfect, you just use that and make the most of it, that's it.
You don't go and find the perfect system that has 100% win rates.
Now my system is not 100% win rates, just two days ago I had two losing trades, and yesterday I had two winning trades.
Now here's the thing, even though I get at leasttwo loses every week, some of mature of my wins cover my loses, then in the long run you can make money, even with 40% win rate, 30% win rate, so stop pursuing the holy grail.
– So like you said before, Ithink it's about understanding like there's a time whereyou have to learn, alright, there's a time where you have to, maybe you're struggling a little bit, putting into practice what you learn, and then going to back to what you learned and what you've practiced yourself.
As opposed to tryingsomething new every time, and searching for newstrategies everyday, that's big.
What's your third and last tip? I wanna hear it, it'sgoing to be awesome I know.
– Last tip, the secret ofvery successful traders that I talk to all around the world, I talk to in Singapore is theyall have one thing in common, is that they are verygood in risk management.
If you listen to Paul TudorJones, back to him again.
Like he says the mostimportant factor to my success is risk control.
Like you would expect something like, oh the most importantfactor to my success is because I use this indicatorthat you don't have.
– Finding the right setup, yeah.
– Like I have the best setup in the world that you don't have, that's why I make moneyand you lose money, you know what I'm saying.
It all comes down to how you manage your loses when you lose.
Now heres the thing, oneperson said this one quote, I don't know if you've heard of this; its not how much you make that matters, but how much you lose.
Is that right? – Yeah, yeah, yeah.
– Something like that, something like that.
– It's like its not about the upside, it's about the downside.
– It's not about upside, it's about downside, something like that yeah, just go and search for it.
Basically it's not abouthow many times you win out of ten times that you trade, it's about how much you make when you win, yeah that's right.
How much you make when you win, how much you lose whenyou lose that matters.
Winning minimizes your losses, maximizes you winnings.
Winning has a history that we show.
Now the first thing, I'm sure you know this, but the first thing professional traders and retail traders.
Professional traders theyfocus on history that we show.
Retail traders they'realways thinking about out of 10 trades, howmany trades can I win? – Yeah, being right, it'slike wanting to be right.
– Wanting to be right all the time.
That's why people stop using stock loss, they don't use stock loss, they adjust stock loss so that they can win 99trades out of 100 trades.
But it only takes that one stupid trade, that one stupid tradeto blow up everything.
Like you can have a 99% win rate and still lose money in the long run.
– So focus, focus on your risk management and once you have a good system in place, you have a good psychology in place, you wouldn't go wrong, you wouldn't go wrong in the long run.
You'd make money in the long run, you'd be consistent in the long run.
So it's not about beingthe perfect trader, it's about being a good risk manager.
– If you guys wanna see morecheck out Karen's channel, we'll have a video with me answering some questionsand giving some tips.
We'll link that video ifyou want to check it out, it should be published by now.
If you have any questions type them below, comment below with those questions, we'll make sure to answer you.
Here are some of thecomments from the past video.
I appreciate it if youguys send me comments, as always below the video.
And with that note we'llcatch you back here tomorrow.