Personal bias & belief; It's impact on YOUR trading — Jackie Le' Tits — Video Wiki
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Full transcript (2,986 words) — every glorious word
0:01however when it comes to the stock market right those two core emotional responses whether you are on the side of Hope and optimism or whether you are on the side of death and despair right those two core emotions have no place in the stock market the market does not care if you are an opp Optimist the market does not care if you are a pessimist the market only cares about making moves both up and down because that's what stocks do and that is the stock market so one thing that I did not learn early in my trading career was that in my core emotional response I ently lean on the pessimism side I lean on the death and despair side for whatever reason you know it just that's I guess how I am molded and manufactured as a human and that's my own personal emotional response but I suppose that I lead often times on the pessimistic and despair and death side that's just who I am at the core so when I was na navigating the bare Market the reason that I found success is because my emotional bias at this period of time made sense right stock market [ __ ] economy [ __ ] World [ __ ] it's all [ __ ] give me the global reset [ __ ] short every high right and then the stock market maret turns into a bull market right we had this oneyear period of the bare market right then we exited that bare market right made the low the high the higher low the higher high the higher low started an uptrend and exited the bare market right but because I didn't learn how to navigate my emotions and because of who I was emotionally to the core as a human being I still had the mindset of short every top short every top short every top well suddenly those tops stop becoming tops and they just start becoming [ __ ] runs and I struggled there were a few big trades that I made no doubt in my mind that I had some big trades that I had made within this period of time I'm not just talking about spy here I'm just showing you guys the General market to give you guys an idea of what was happening but I struggled
3:05during this period of time and the reason that I struggled during this period of time is because of that emotional response in the core of my human nature and say hey man I I think everything's [ __ ] the market can't go up this no it literally can't go up it's a [ __ ] piece of [ __ ] this thing literally can't go up and then it started to explode and then for a period of time we did trade with the trend but we were like this isn't going to last this is a piece of [ __ ] this thing's going to [ __ ] puke and die in ball of flames and then guess what happened here right guess what happens in this range right this this is where uh back in this range right here right back in this range right here this one right here you guys will remember this this is when we had the Regional Bank in crisis right in here this is where we had that Regional banking crisis this is right as we were exiting the bare market and then we followed that up with a regional banking crisis and we saw stocks like First Republic literally go bankrupt and die and etc etc bro myself and pretty much every other bear in that moment right was like dude this is it there's no way that the market recovers from this it has to die here there's no way it recovers uh guess what it did it recovered not not only did it not recover or excuse me not only did it recover but it made an explosive move After exiting that Regional banking crisis and because there's so much bias there's so much bearishness you're clouded with judgment and bias that you miss these opportunities and it was a few weeks after the regional banking crisis after I think spy at this point had matched that same high that we had made here and I remember sitting there dude I remember sitting there and going there's there's some there's something I'm doing wrong there has to be something I'm doing wrong because even though it doesn't make sense and even though it goes and defies all [ __ ] logic it does it anyways and I'm still trying to fight it why the [ __ ]
5:43am I doing that and we realized in this moment right realized in this very moment on these highs right here we said bro Bros from a risk reward perspective we should be shorting this because you can short this risking that high and that's an easy [ __ ] trade but you know what I'm going to defy all logic and I'm going to long it because there is a very clear Trend that is beginning to form on spy with the low the high the high higher low the higher high and then the higher low and as we were matching the prior High we hadn't made a higher high yet but we matched it and I said In This Moment yeah either I'm [ __ ] stupid or this thing's going to make a higher high and we should get paid on some longside trades and then spy started to launch in the summer of 2023 we started to really [ __ ] launch and I I remember this moment really really well I remember this moment really really really well I remember sitting there and going I defied all common sense and logic I should have been short cuz that's what my bias and my thesis told me but because it appeared like you were exiting a bare Market his history has shown that when you exit bare markets stocks only go [ __ ] up stocks only go up so in my mind I'm sitting there going well this could potentially be the exit of the bare Market that we have been in for a year and if this is an exit I don't want to be short ever I want to be long every single bounce and we were blessed that this started to absolutely explode and we had determined okay yes this is the exit of the bull market and yes there will be a retracement but these retracements now are purely higher lows that was the last low that's a higher low that's a [ __ ] uptrend and rather than coming in with my own personal bearish bias right because of because of what the core of me says right pessimistic despair no no this is terrible it can't do that because I went out of my way to eliminate that bias and say I am not a bull nor a
8:51bear I don't care the only thing I care about is what does the chart say and what what does it look like the stock is going to do trade the trend following what it says right those things have allowed me now for the last two calendar years on spy and in the general markets to have incredible amounts of success and again this is not to brag this is to explain how I eliminated my own core belief while trading stocks and purely focused on what the charts and the technical say and doing so has now allowed me to buy every dip on spy to be long every day that I should continue to be long and take advantage of the opportunities that are presented and I think one of the hardest things that you guys do as Traders right especially as brand new people to the market one of the most difficult things that you guys are going to do is Battle your own personal emotions right it's going to be really [ __ ] hard to battle to your own personal emotions and your own personal bias and I know this because I've been there and i' done that and I was short in an uptrend and it was [ __ ] me up every time and I couldn't understand why it's because I have a core belief and that core belief does not align with what the market is doing therefore it makes me mad it's an emotional response to something that is not supposed to be emotional and it's that same lack of emotional response that I have on a day-to-day basis now that has allowed us to remain bullish on spy even at all-time highs and listen I don't agree or sorry I don't disagree that it doesn't look sketchy it does there's no [ __ ] doubts that it looks sketchy but who gives a [ __ ] how it looks what is it doing it's making new all-time highs every single other [ __ ] day and I get it it's D and it should collapse and it should break and it should die and but if you remove your emotional response to what it should be doing what is the chart and the technicals telling you it's doing what your your daily RSI is way way above Center every
11:45time it goes under Center it bounces right off of it confirming the bullish uptrend RSI has always been strong staying above Center staying above EMA showing strength DMI breaking above 25 adx also Rising like there is no reason to be bearish on this [ __ ] right now and it's not because I'm a dumb bull it's not because I have a bias on the bullish side it's Common Sense what the technicals say what those technicals do though you know and I recognize guys that it is one of the most difficult things that you guys will do as Traders you guys and girls sorry cuz I know there's women here too it's one of the most difficult things that you'll do and that's working on eliminating emotional and personal biases but at the end of the day you guys have to recognize that this is the rich people's playground and the rich people are not just going to hand you their money you know what they're going to do and this is the most important part of this discussion that I'm going to end with all right those market makers those hedge funds those whales they're going to weaponize your emotions against you they will weaponize the very emotions that you feel on a day-to-day basis and they will use them against you want to know the best example folks it's this [ __ ] piece of [ __ ] right here I call it a piece of [ __ ] you know I don't mean that you know I'm just right it's this [ __ ] thing right here and you'll say Jackie can you explain can you explain what you mean by weaponize our emotions stock goes big up no let's start on the downside actually let's start on the downside stock go big down common sense and logical response from everyday traders who don't understand technical analysis right will be something like this oh my god oh [ __ ] it's going down oh I'm down 20% oh 30 35 to 40% ah I put every dollar I had into it and I I can't afford to double down or buy more I I can't I can't oh [ __ ] [ __ ] [ __ ] [ __ ] right and often times what Traders will do when that situation happens is
14:46their emotional response will tell them to sell oh my God I'm down so much I've got to get out of this oh what a stupid [ __ ] idiot decision that was Not only was that a poor decision but man man even if this thing bounces from here it's probably not it's going to go to Five it's going to go to Five that's what all the Bro Bros on Twitter told me it's going to go to five and so you can imagine right guys you can imagine that the emotional response from the average everyday person that doesn't do technical analysis or really like trading right they will see that they'll see the stock dumping and then that's their response right not only will they sell it at the bottom but then they will sit there and they will go no I'm not going to trade this thing because it's going to go lower it's going to go lower the market makers in the hedge funds have then successfully weaponized your emotions to the point where one you have now sold your position giving them liquidity and number two you are not going to enter a new position at a bottom just before they are going to send the stock up how is that weaponizing your emotions number one they got your liquidity so whether that was to accumulate or distribute doesn't matter they got your liquidity phase one complete phase number two imagine you're a market maker or a hedge fund and you knew the stock was going to have a move to the upside don't you want to eliminate the number of people participating in that move to the upside yes Jackie yes exactly exactly you do want to do that and so in order to get people not to enter positions before the stock makes a big move what do they do push out bearish news push the stocks to low weaponize people's fear and sadness and despair about the stock being at a low so that way everybody sells and then nobody buys and then when everybody sells and then nobody buys that's when they [ __ ] send the stock and that's because they weaponized your emotions against you so this is why this discussion is so important because you have to have to keep your emotions in control and recognize
17:32the response that you have okay I can give you a personal example right I'll give you a personal example early in my trading days right early in my trading days okay I would have watched spy open Bounce from here and get to that green line and then I would have tried to short this thing right I would have tried to Short this thing and then I would have watched it come down and then I would have watched it bounce back up hit it my stop loss but I wouldn't have stopped myself out because I would have said no [ __ ] that this thing's a piece of [ __ ] it's definitely going to dump it's it's got to it's literally a piece of [ __ ] it has to dump and then it doesn't and it goes against me and then that little 10% loss I should have cut now that's turned into like an 80% loss I'm not saying this is what I did this morning I'm just giving you guys an example of what I would have done back when right those those same Concepts right these apply on all the stocks and all the things that we trade on a day-to-day basis and it's human nature right to have a bias and I recognized that I'm being biased by trying to be short in a situation I should not be short in and so what I had to recognize was that am I focused on being a Trader or am I focused on giving my personal biases reason to try and make me money and I understood that it was my own personal biases that I am trying to make money with and that's not successful that's not how you build a a successful trading account you build a a successful trading account by removing your emotions in fact weaponizing the emotions of other people to your own benefit right and we do it every [ __ ] day because I see the sentiment on Twitter I see the sentiment on Twitter everybody's bearish the Market's going to crash don't forget your 07 fractals guys don't forget your 2007 fractal and don't forget to put it on spy because it looks the exact same so it's probably going to dump so while everybody is busy being bearish we just keep longing
20:13these small cap stocks that just keep going to [ __ ] Pluto and Beyond why does it keep happening because while everybody is being sad soy boy and shorting [ __ ] the Market's like yeah you're a little too early thanks for the liquidity thanks for your money we're going to send the stock higher now and all Bulls are going to go on Parade again there's a reason that Jackie and the tits gang are so successful the reason that we are so successful is because we stay align with the trend and we remove personal bias that's it just trade what is in front of you not what's in front of you emotionally not what is in your head trade a plan and a thesis and keep it aligned with the macro trend of the stock and this discussion folks I'm having this discussion so you can understand that yesterday's about the support and resistance boxes in combination with following Trend and weaponizing SL understanding emotion those two to three things can completely change how you approach trading from here on forward