This chapter is going to bring a different vibe. It’s not going to be about necessarily digging into the prop firm model but a wider look outside of it, beyond the drawdown limits and the payout cycles. we’re looking at the ultimate risk management: the management of your own life and your own mind.
A majority of traders lose. That statement doesn’t really even do it justice. It’s more than that. I would say 95% of traders lose over time. It’s a very hard game to win over time. So, what is going to separate you from the rest?
it won't be a secret indicator. it will be your ability to separate yourself from the noise, both external and internal. you need a good, strong network that is motivated and interested in similar goals. that will expedite your growth. but recognize that the opposite is detrimental. surrounding yourself with those who aren’t winners is harmful.
The second point I want to get across is more nuanced, but not less important.
Many people in this space have arbitrary monetary goals, instead of asking themselves what they really wanna reach in life.
Money unlocks many freedoms, so you can think its the key to everything so make a lot of money and figure out the rest later, but it's not that simple.
First of all, having a clearer picture of why you want that money, what you want in life, make it easier to focus and motivate yourself on how to achieve it, and in addition, you may end up realizing what you want doesn't even cost as much as you thought, or worse, it's so unfeasible that it's not worth the grind.
There are many people in markets that are worth millions and they feel miserable, they lead miserable lives and spend their days grinding to make more money because they need to reach $10M or whatever, and they never stop and ask themselves:
1. what I wanted to achieve by making a lot of money in the first place?
2. do i need to reach [ goal number ] before I start enjoying myself?
Maybe you wanted to travel the world without budget, visit all the continents at your leisure, maybe you're a foodie and wanted to enjoy high level restaurants at every meal, maybe you wanted to retire your parents etc. and instead you're day after day in your dark room clicking buttons and ordering doordash mediocre food and not taking care of your body and mind.
Maybe you realize you can have that trip to Japan in a 5 stars hotel before even being a millionaire, and come back home satisfied and motivated to continue, or to pursue a new passion, and so on. Maybe you just don't want to have a boss telling you what to do, or need to ask for vacation or sick days, and you're fine taking the amount of trading necessary to have the same income as your 9-5 but leaving you many more hours free during the day, to spend with your family or your hobby.
An easy (unless you resist the truth) way to find out what you really want is to keep asking yourself WHY? Why are you doing this? Because you want $1M? Why? Because you hate waking yourself up at 7am and want to be free? So why are you instead waking up at 3am because you’re in a trade? Maybe you can adjust your system to trade less or have larger invalidations, make less but sleep better? Maybe you wanted to learn how to cook? So why are you ordering delivery garbage to keep babysitting trades? You wanna provide a better future for your children? So why are you 12h a day at the screen instead of enjoying time with them while they grow up?
So you want to be a trader? How bad do you want it? And Why?
Most people here that trade don’t actually want to “trade for a living" if they knew what that meant. They want to trade, hit a big number, and then coast. Different thing entirely.
If you’ve done this long enough, especially for anyone that has left the comfort of trading for a firm, desk, prop, etc. - You know that undocking from that consistent paycheck and trading as your only source of income is not some romantic dream. It is lumpy, it is uncertain, and it takes a real toll on your nervous system, your relationships, and your body.
When people say “I want to trade for a living,” what they usually mean is,
“I want to get to a place financially where I can choose what I work on, spend more time with the people I care about, and not answer to anyone.” That is not “trading for a living.” That is freedom, and trading is just one possible vehicle to get there. Money is a tool.
The reality: Your PnL is your paycheck. Your “boss” is variance. A few bad weeks feel like your entire life is at risk
This is why a lot of real traders eventually buy businesses, build products, start newsletters, communities, podcasts, whatever. Not because they fell out of love with trading, but because they got tired of having their entire life tied to a single, highly volatile stream of income.
Nothing changed about my connection with markets. I still love the game. I am obsessed with it. If anything, I do it a little less now, and it makes me come back wanting to perform at a much higher level.
What changed for me was the idea that my entire future should sit on my ability to perform in a zero-guarantee environment, every week, every month, forever. There was suddenly way too much riding on that.
So if you’re early in your journey, be honest with yourself:
Do you actually want to depend on trading to pay rent and feed a family, through every market condition and drawdown? This is a bit off topic but have you seen influencers or ‘traders’ sell their car or watch (any other material possession) when they/market goes through drawdown? It’s the same thing.
Do you want to become good enough at trading that you can use the capital, the credibility, and the flexibility it gives you to build a more stable, less fragile life around it?
My view now:
Use trading to build freedom, not to trap yourself in a nicer looking cage. Treat it like a craft you want to master, and one powerful income stream among several, not the single point of failure your whole life rests on. Focus on developing an investing approach, diversifying, and if anything sources of other capital that allow you to take risks in trading a bit more lightly.
Comparison is the Thief of Joy.
They don't lie when they say comparison is the thief of joy. The longer you keep on comparing yourself with others, the harder it will be for you to make it. Trust me on this:
Become Content With Yourself
Everyone has their own story and their own journey. The people I mentioned above worked hard for it. They showed up everyday. There are many others you may be envious of, and let me tell you one sure thing. Many of them straight up did CRIME.
Things are not as they seem. At least not always. 90% of the people larp about being successful. They are taking backdoor affiliate deals or just trying to fool you into buying some course or joining some paid group. That's just the reality of things.
No need to name anyone, you know all of them by now. Only a small fraction of people are successful in this space and not every one of them is a big account on social media.
I Fucked Up. What do I do now?
If you fucked up, don't fret. You are not the first person to fuck up. Everyone fucks up. We are nothing but a compilation of fuck ups.
So what if you round-tripped a million dollars. Multiple times. At least that taught you what you are capable of. You think everyone can get to the point of being able to roundtrip the money you did? Most won't even see that much money in their whole life. Take it as a lesson and erase your previous ATH networth. That is the only way you will be able to surpass it next time. And let me tell you, there will definitely be a next time.
Not everyone has to retire by 30 and be a millionaire to be successful. You can afford to be a little late to the club. It's your very own journey, not a simulation. (Well, we probably are in a simulation)
But How Do I Cope With It?
Touch grass. No, seriously. Touch grass. And I mean both figuratively and actually. Literally go to a park or your lawn and lay down on the grass. Look at the night sky and the stars. Calm the fuck down.
Watch some shows, spend time with your family. You do not have to trade every single day trying to make it all back. You do not have to take every trade. You do not have to do anything. Sometimes, you can just sit on your hands and do nothing. Do nothing and be happy. Keep yourself calm, keep yourself emotionless.
And remember.
Never kill yourself.
“Hard times create strong men. Strong men create good times. Good times create weak men. Weak men create hard times.”
Few Notes on Success.
One point that never really gets talked about is that success does not look the same for everyone. Before ANYONE decides to work hard and grind and obsess over anything, they need to personally define what success looks like to them.
define what success looks like for you -> plan the way you will get there -> take action & do it
People often build artificial heavens around the goals they chase and artificial hells around the anxieties they run away from. This framing can fuel short bursts of motivation, but it is an unsustainable way to live for any length of time.
Scarcity and anxiety distort decision making and leaves you prone to ideological capture. Trading is a zero sum game inside a larger positive sum game. Though every trade has a winner and offsetting losers, markets as a whole direct resources across space and time and help civilizations grow.
The emergent objective of complex systems is usually only visible in hindsight. If you get too cynical about the uselessness of what you do, you will spiritually one shot yourself and burn out.
Main point I want to get through to you is to not try to follow what “success” is defined as by mainstream media, social media, and the profiles that dictate it to the world. Not to sound cliché, but meaningful things genuinely take time, effort, and consistency. Our world has become highly convenience-based and disposable which makes worthwhile pursuits feel "off" and cumbersome by comparison. A backward yet deeply familiar mindset to most. Be countercultural.
PART VI: LONGEVITY, SCALING & PHILOSOPHY