 Hey guys, this is Hyder from Xtrades and in this video. This is gonna be more of an educational video, so I'm gonna be going over two advanced rules for success in the markets, right? So first thing 90% of traders fail, right? This is something that a lot of us know and in fact, it might even be higher than 90% but point is a lot of traders fail and and if you want to succeed in the markets, you have to do what you have to do the opposite of what the majority is doing and that's how you should align your thinking as well in the markets and yeah, so if there's a lot of people going to one certain trade thinking one certain stock is very bullish, there's a very high probability that that trade will not work out For example, a lot of stuff is pumped on CNBC, right? and A lot of those picks actually don't end up doing well because what happens is the majority of people that don't watch the market regularly just listen to whatever these people are saying and they buy it without thought, right? And that trade becomes the majority and that's the reason why those trades typically end up failing because everyone's in it So to succeed in trading, my point is you have to go against what the majority are doing and Yeah, so there's two real rules or two main rules that I've noticed that deviate from how How the majority think right when it comes to trading. So the first thing is taking small losses Most traders and most investors in general people who are in the markets hate taking losses. It's Most people cannot cut their losses quickly. They tried when something goes against them they actually end up trying to add more to their position average down and tried to see if there's a way to Basically get back to break even and then try to cut the position lose, right? This is what majority of people do but to be in the 10% or even less than 10% You have to learn how to take losses very quickly and make sure that your losses are very small This is very key if you want to make it in trading Many people try to set stop losses but end up moving them or Some people set mental stop losses and don't end up following through on them, right? this is a very big problem many traders fail this or many traders face this problem and If you can conquer this one thing Then you are ahead of a lot of a lot of traders, right? So taking small losses is extremely important and so the first step is to First step is to implement stop losses, right? This is basic, right? Everyone implements a lot of people implement stop losses, but not everyone follows through, right? So actually following through Is step number one, right? If you can follow through your stop losses consistently You're doing something, right? You're ahead of a lot of traders already, but to take it to the next level Some you have to learn how to take losses before the market takes you out. What does that mean? So before your stop loss gets hit sometimes you have to learn to take Smaller losses then like your stop loss, right? So for example If a stock is at 50 and your stop losses at 48 and the stock looks like it's closing around 49 then you want to stop out immediately even before your stop is hit So learning how to take losses before the market takes you out is also very very important That way you limit your losses even smaller, right? And the reason that you do this so there's this thing I've seen a lot of top traders Where they don't take like these are swing traders, right? So they don't swing red positions into the next day So for example, if you're buying something and at closest below your buy point They get rid of it right away and this is very advanced a lot Not many people do this because they're like why there's no point, right? Just let it let the market see if it actually hits my stop and then get out Because a lot of people are scared that if you get out too early, then it's gonna end up Going higher the next day, right? But the thing is if you can keep your losses smaller and ask Like half the size of what they actually normally are then your small your losses are even smaller And you can always buy back the next day. This is very key. Most people don't realize this You can always buy back and typically typically you're gonna have to buy back higher But the probability of the trade working out if it triggers again is very high So that's rule number one. So This is very tricky to implement because most people don't have the discipline to actually follow through on their stop losses First of all, but if you can follow step one, then level two would be to Try to not swing any red positions and try to take losses before the market takes you out This is very advanced. Not a lot of people do this All right, let's move on to step two pressure winners, right? So the best trades go right away Which does that mean? So a lot of times there's a lot of different setups But sometimes some stocks will take off right away and they'll never look back And those are typically the best trades and this is what and this comes back to this thing, right? So if you're buying a stock and it closes red and there's a very good chance This is not gonna be the top trade of the year, right? The top trades are in the top trades always go right away So typically when you're buying you should see a move all the way up to 51 52 already So yeah, these two rules go hand in hand So if if the stock is closing red or if the stock is red Or if the stock is red on your initial buy, then there's a very good chance It's not the best trade and you should cut it right away and So yeah, second point pressure winners So when the stock is actually working you want to be making sure that you're adding to your position Most people don't want to do this because they don't like the concept of averaging up But typically what works in the market continues to work. Havana is a very good example That stock has been rallying like like crazy amount like I think it's up seven almost 700% up this year but insane insane rally right the best stocks continue to keep going and Havana was a very good example So you typically want to try to add to your winners whenever given the opportunity and this is Pretty hard, right? It's hard mentally like to add to a winner because you're When you have a winner most people are thinking take profits, right? So majority think Take profits Right. This is what 90% of traders think when they have a winner They want to take profits right away lock-in profits And then just get out and then use that money and then put it on to the next trade, right? but What to but again going back to going against the majority you don't want to be taking profits You won't actually be adding to your positions, right? So when you're adding to your positions, there's a way you have to do it, too So for example, if you buy 100 shares on your initial buy then when you're adding you want to be adding 50 Whatever the next buy setup is and then 25 and then incrementally slow down, right? And typically you're gonna get three waves So three really good rallies and then the third rally is always the one that typically typically gets very extended And it's typically the best time to be selling into strength. So those are the Keys when it comes to pressing your winners, right? So the best trades go right away and when you find those best trades You want to be adding to your positions versus taking profits taking profits It's what the majority does But if you want to set yourself apart you want to go out of your comfort zone and actually add to your positions and average up and When you're adding you want to be making you want to make sure that you're adding smaller and smaller So that way your average average cost isn't getting too messed up, right? But yeah, this is pretty much or these are pretty much the core concepts and these are more advanced Most people know about stop losses. Most people know about Protecting your winners, right? Making sure that you move your stop up things like that But these are more advanced You want to make sure that you're actually averaging up when you get your winners You want to learn that you want to know that the best trades go right away This is also something that not a lot of people know But if you've been in the market for a couple years now, you've noticed this pattern where the best trades always go right away And they usually have some sort of catalyst and big volume and when that happens So there's usually one really big move and then some consolidation Very nice flag pattern and then they go right away, right? They won't look back ever again So those are the trades that you want to be looking for everything else it doesn't matter you want to be cutting for like very small losses and Doing this your win percentage might be very low probably below 50% But when you do catch that winner, it's gonna be very It's gonna be a very big return in terms of risk reward. So So this is this type of system will still result in a positive expectancy But yeah, that's pretty much what I wanted to cover in this video And if anything was confusing, please feel free to let me know and I can clarify But yeah, thank you guys for tuning in