1. Embrace Low Time Frames for Precision

Scarface emphasized that trading on lower time frames, particularly the one-minute mark, can lead to significant success if approached correctly. He stated that the precision gained from these time frames allows traders to capitalize on higher time frame trends while managing risk. He highlighted his own strategy, successfully capturing large moves by entering trades based on lower time frame setups aligned with prevailing higher time frame trends.

2. Risk-to-Reward is Paramount

According to Scarface, the core principle of successful trading lies in understanding and managing the risk-to-reward ratio. He stressed that rather than fixating on the win rate, traders should focus on how much they stand to gain versus what they are willing to lose. This philosophy allows him to remain profitable even with a win rate around 57%, as the bigger rewards from successful trades compensate for losses on others.

3. Prioritize Learning and Data Collection

Scarface underscored the importance of data collection and journaling trades as vital components for a trader’s growth. He recounted his early days of manually recording every trade in Excel, which made him more selective with his trades. He argues that this meticulous approach helps traders avoid poor setups and increases their chances of success by solidifying their learning through concrete data.

4. Emotional Discipline Builds Consistency

Scarface shared insights on managing emotional discipline and how it relates to trade decisions. He emphasized the need to remain grounded, particularly when trading high-risk setups. By ensuring that he does not exceed comfortable loss thresholds and understanding his overall profit and loss picture, Scarface can maintain his emotional stability during trading sessions.

5. Trading is a Journey, Not a Sprint

Scarface conveyed that many new traders set unrealistic expectations, often desiring immediate results like quick profits. He encourages aspiring traders to focus on a gradual learning process that includes preparation, execution, and self-reflection. By setting realistic timelines and expectations, traders can avoid disappointment and strengthen their skills progressively over time.

6. Don't Get Fixated on Win Rates

In his experience, Scarface noted that many new traders obsess over their win rates instead of honing their strategies. He suggests that focusing on refining risk management and understanding market mechanics will ultimately lead to success. He believes that embracing opportunities based on their risk-to-reward potential is more critical than seeking consistent high win percentages.

7. Be Aware of Market Conditions

Scarface mentioned the impact of historical market conditions on his trading strategy. Understanding the different phases of market cycles prepared him to adapt his trading approach, enabling him to capitalize on various opportunities. He urged traders to be aware of changes in market dynamics, such as volatility or trends, which can significantly affect their trading results.