stop chasing currencies the real key to trading profitability

Transcript (Auto translated can have spelling mistakes)

The way to think about it is we make money as a trader. We make money because we buy an asset and the price of that asset goes up and then we sell it. Mh. Or we short sell an asset and the price of it goes down and we buy it back. So we make money by the price of an asset moving as a directional um systematic trader. Now if you buy a stock in India Mhm. the currency is valued less than the US dollar. Mhm.

But the asset that you buy could still go up, let's say 50%, 100%. If you buy a stock in the US, it could go up 50% 100%. Mhm. But when we're trading, we want to adjust our position size, how much we buy of each stock, so that our risk is controlled. The number one driver of success long term is to make sure you don't lose too much money when you're wrong. You need to have a small risk 1% of your account or less so that if you're wrong, you don't get hurt too much. Now, if you're in sitting in India and you buy an Indian stock, you know, 1% of your account, you know, you can buy a certain amount of stock. If you have to buy it in US dollars, it's a US dollar stock, you can buy less and have 1% of your account at risk. So, no matter what exchange you're trading on, no matter what price the stock is at, if it's a $1 stock, a $10 stock, a $100 stock, $1,000 stock, it doesn't matter because we need to be buying more or less of it to make our risk on each trade consistent. Mhm. Mhm.

So when we think about it like this, no no one exchange or stock is going to be more profitable or less profitable for us because first we think about risk and we size our trade bigger or smaller to keep our risk consistent.