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Speaker 1: Most traders get it backwards. They're thinking, I want to

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find a good strategy and I'll get profitable, and then

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I'll figure out how to get consistent. It's like, no,

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if you want consistent profits, you need to focus on

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a consistency first.

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Speaker 2: You're listening to Carrie Lutz's Financial Survival Network, where you

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get valuable information. You just can't find anywhere else to

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thrive in today's trying times. You need the Financial Survival

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Network now more than ever. Go to Financial Survivalnetwork dot

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com and get your free newsletter and gift. Financial Survival

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Network now more than ever.

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Speaker 1: And welcome.

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Speaker 3: You are listening to and watching the Financial Survival Network.

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I'm your host, Carrie Lutz. Got a new guest on.

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He has been trading for nearly twenty years. Well, he's

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been successful trading. He is real satisfaction is by teaching

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others how to become successful traders. And Brian McAboy, welcome

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to the show. So, first, how did you become a trader?

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Speaker 1: Well, actually I started trading. I've been helping other traders

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for almost twenty years. I started trading actually back in

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the nineties, back in the day before the internet, there

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was a guy named Ken Roberts who had this excellent

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book and a direct mail campaign through the snail mail

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and the book was who was selling a book called

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the Greatest Business on Earth and he was talking about

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futures trading and it was a great book and he

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did really well well. It introduced a lot of people

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to the world of trading, myself included. And it was

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pretty interesting because that was back in the day. Like

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I said, this was pre internet. This is when if

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you wanted to place a trade, you're picking up a

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telephone like a landline. Sure, I remember those calling a

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broker to place your trade.

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Speaker 3: I knew one of the guys who was responsible for

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inventing or creating day trading, and he actually, you know

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credit is one of the fathers of it from back

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in eighty seven after the first well after the crash

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of eighty seven. His name was Harvey Houtkin, and he

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was an interesting character. So what do you think the

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best part of trading is, Well, the.

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Speaker 1: Best part of trading is is it's a great thing

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and a liability at the same time as really the

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low barrier to entry any other business that you want

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to pursue. It's going to take you know, a reasonable

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amount of upfront capital and usually a length of time

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and a learning curve, and it's not and a lot

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of times it's not just that easy to enter that market.

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But with trading, anybody can start trading today. All you

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need to do is fund an account and you can

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trade other There are no other requirements. But to be successful,

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now that's a whole different story. And like I said,

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that's why it's a liability. The almost zero barriers to

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entry so many people. Because there are no barriers to entry,

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it kind of feels almost like an entry level job. Now, hey,

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I don't need a degree for that job. I can

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just go walk right in and start doing it. But

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it's not an entry level job. It's a skilled profession.

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I mean, if you think about it, trading it for individuals,

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but if you're trading in the global markets, trading is

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professional speculation and it's essence. I mean, we're sitting here

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and we're trying to anticipate what we think is going

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to happen, and we're placing bets and so at this level,

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though you can't afford to be a rookie, you can't

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afford to be average, or you're just going to take

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a beating. It's professional and you're up against professionals.

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Speaker 3: That's true for sure. Oh yeah, so obviously you're a professional.

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How did you become a professional?

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Speaker 1: Well, I had to I had to learn that is

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the hard way. Back when I was cutting my teeth,

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there wasn't much good help out there, and so my

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first year, I kind of you know, I had Ken

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Roberts book, which was cool, and it was a paper book.

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I wasn't like anything on a computer. We didn't have

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YouTube videos and stuff back then. So you know, I

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jump into this. I started account and I'm trying to

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learn how to trade. And my broker, he was a

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young kid, he didn't really know much about He knew

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he had to help me place trades, and so I'm

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trying to train myself and I'm I'm just flying along

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by the seat of my pants and not not knowing alarmed.

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I mean, I'm trying to train myself and I didn't

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know what I was doing, which is made for a

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lousy trainer. So anyway, I got kind of lucky though.

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I started with a thirty thousand dollars account and over

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the first year I managed to run it up to

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over forty seven thousand dollars and then I just got

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completely stupid, and the stress finally got to me because

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I knew I didn't know what I was doing, and

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even when I was winning, it was still stressful. I mean,

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here I am, I'm like, you know, I'm young, I'm

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a young guy. I feel like I'm having a heart

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attack all the time. It just because I'm so wound up.

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And so eventually the stress got to a point where

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apparently my subconscious said, you're going to stop trading because

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this is going to really screen up.

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Speaker 2: You know.

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Speaker 1: You know, it's like some when you work too much

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and you wind up getting sick and you're bed ridden

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for a week because your body just says you're taking

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a break, whether you like it or not.

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Speaker 3: Sure, yeah, I know.

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Speaker 1: So it was kind of the same thing. And that's

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part of why some traders actually they don't just take

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a beating that actually go ahead and blow up their account,

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which I did. I ran all the way down from

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forty seven thousand dollars down to seventeen hundred dollars. Wow. Yeah,

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And so Needles said, I took a break. And now,

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fortunately before that I had been working and well at

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the time, I was still working in a manufacturing plant

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making plastic bottles for like coke and Pepsi and gatorad

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and stuff. And it was a super high volume, high speed,

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high dollar razor thin margin operation, and I was the

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quality assurance manager. So it was my job to make

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sure that we're getting good, consistent production and out of everything,

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the equipment and all the people. And so most of

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my time as a quality manager, you know, I mean,

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it's part of the time was spent with machines, but

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most of my time was spent with the people on

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the planet. I had one hundred and eighty three people

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I was responsible for right and seven different departments for

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different shifts, all these different people, all these different jobs,

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and it's my job to make sure everybody's doing their

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job the right way and doing it consistent. And so

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a friend of mine, I was talking with her and

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let her know, you know, telling her about blowing up

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my account and everything. She's like, Brian, at your work,

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you're just to get everybody good at what they're doing

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and get consistent performance out of them. Just take what

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you're doing at work and apply it to your training.

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And I'm thinking, duh, I just Like I said, I

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was looking at a kind of like an entry level job.

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I just jump in. Looks easy enough, I'll just learn

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as I go. That's why I took a beating though.

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So what I did was I took my quality assurance stuff,

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which and I'll break down for you here in a second,

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but I took my quality of sharance stuff and applied

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it to my trading, and I was able to actually

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get a handle on it where I knew what the

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heck I was doing and settle down and turn things

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right now. It took a little while to figure things out,

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but generally, with quality assurance and the way I teach

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people how to apply it to their trading, there's three

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basic steps to the process. First is you got to

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get you have to establish consistency first. Most traders get

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it backwards. They're thinking, I want to find a good

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strategy and I'll get profitable and then I'll figure out

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how to get consistent. It's like, no, if you want

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consistent profits, you need to focus on the consistency first,

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because if you have a consistent process, that's easy to

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adjust and to make better. But if you're all over

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the place, that's kind of hard. To fix and that's

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where most most traders find themselves.

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Speaker 3: These are all over the place, right, So focus is focus.

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Speaker 1: Oh yeah, oh yeah. We established consistency first, and then

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the next thing we do is and again this is

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just where people aren't taught how to do it right.

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But we want to establish confidence in what we're doing.

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So there's testing that goes into it, and you have

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to know how to test the right way. Otherwise the

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testing can actually be more harmful than helpful if you're

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not testing right way, because it gives you results that

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you can't rely on. But anyway, so we got a

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good process, we confirm that it works and then and

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then we dial it in for profit and then I

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take them through the mental conditioning, the training so that

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their execution is good. Gotcha. And this is how you

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get good at trading, is you you You don't try

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to trade everything. You find a strategy that works for you.

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It's a good fit for you. And that's a that's

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a really crucial thing too. A lot of people think,

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you know, they can just grab somebody else's strategy because

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you know they're making money. It's like, no, it has

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to work for you. Because if there's certain things about

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it that don't agree with you. The internal conflict, they'll

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have you a second guessing yourself somewhere along the way,

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or just playing sabotage in yourself. So you got to

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you got to start with a decent strategy and then,

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like I said, we build a good solid process on

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it so you have that consistency, establish a confidence with it,

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and dial it in and then we do the mental

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conditioning for consistent execution and kind of fixing the damage

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that it curus in the early months. So understood, understood,

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all right.

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Speaker 3: So, uh, when you're going to take on a new

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client to train, do you ever just tell them this

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isn't right for you. Don't you're going to lose money?

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Speaker 1: Oh yeah, yeah. If I'm talking to somebody, well, one

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of my favorite questions to ask people if they wanted to,

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you know, be an independent trader. One of the favorite

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questions to ask is have you ever started and run

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your own business? If they say no, what that tells

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me is they've never had to go through that learning

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curve of starting and running a business. And it's a

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substantial learning curve. And the thing is there's mindsets and

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perspectives and expectations and all kinds of stuff that goes

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with running a business versus just being an employee. If

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you've been an employee your whole life, yeah, you used to,

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you know, you put in some time you get a paycheck.

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Doesn't work that way trading business.

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Speaker 3: You know what my father used to say, he was

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a lifelong entrepreneur. He used to say, anytime you go

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into a new business, you pay for lessons.

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Speaker 1: Oh yeah. Now, unfortunately, you talk to a lot of traders,

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and most people come to me, they've been trading for

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like three, five, eight, ten years already and they're still struggling.

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And one of the one of one of the most

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common comments say is, yeah, you know, but I've learned

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a lot about myself. Speaking well, life is sign it

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for a lot of lessons though.

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Speaker 3: Yeah, and there can be very costly Oh yes, that's

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why when trading, I know for sure, risk management is key.

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Speaker 1: Oh yeah, yeah, well again one of the one of

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the perspectives you learn as a business owner, and you

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go through those through the lessons you learn in starting

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and running your own businesses. You always have to have

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the long game in mind, because you're playing the infinite game.

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The goal is to stay in the game, not to

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just win this month. That's uh. I mean, I've heard

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that from Simon Sinek and a handful of others, and

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I love that perspective. It's like, no, we're not trying

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to win this quarter, We're not trying to win this month.

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We're in the We're in it for the long haul.

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We want to be in this for long games. We

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have to survival is the first first order of business. Now,

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let me ask you a question, because since we're talking

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about business, if you were to hire somebody as a

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trade let's say you wanted to start trading, but you're

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going to you wanted to hire somebody to do it

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forty or somebody comes to you. You know, you've got

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a great business ide and you're going to hire somebody

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to do the startup for you? Are you? Would you,

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you know, just to hire somebody because they're cheap, and

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you know they're kind of They'll say, sure, i'll do

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it for you, I'll do it for almost nothing, and

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but you know, I don't know what I'm doing. I'll

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just kind of learn as I go. Or would you

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want to, you know, have somebody who's trained and they

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know what they're doing, and you know they actually have

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the competence to do it. I mean, who would you

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want to hire? Yeah, yeah, well obvious. Yes see. Here's

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the funny thing about it, though, so many traders and

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I'm not judging anybody. I was totally guilty of this myself.

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When when you go into it yourself, you're the trader

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you're hiring. And so if you don't know what you're doing,

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do you want to just jump into it and start

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trading or do you want to say, wait a minute,

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I don't know what I'm doing. I'm new to this.

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I need to go get trained up before I start

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trading with real money, actually acquire the skills of this profession.

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Or it's just like hiring a lawyer, you know, a

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good mechanic where it's like, you know, you want somebody

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who knows what they're doing, not figuring it out as

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they go.

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Speaker 3: Yeah, I gotcha, I gotcha. So I guess I guess.

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Really the key is knowing yourself, right, Oh.

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Speaker 1: Self awareness is huge, absolutely yes, And well right along

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with that though, is being brutally honest with yourself. Mhm.

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I mean it's okay to be self aware, but if

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you're seening going no, no, no, no, I can do this.

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It's like no, that's that's how you spend five years

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taking a beating and getting a lot of life lessons

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without making money.

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Speaker 3: I can understand that. So yeah, like ye, So sometimes

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I'm sure you think somebody is good when you first

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meet him, and then they turn out not to be

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so good.

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Speaker 1: Right. Oh, Now, in fairness, most of the people who

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come to me are generally successful people. I mean, traders

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on the whole are above average people. I mean, if

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you think about it, you almost have to be in

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order to be in a position to trade. That's this

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is not one where the average Joe's going to sho

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up because they don't have five, ten, fifty hundred thousand

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dollars to trade with. So you have to have demonstrated

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certain characteristics to start with. And most traders are generally

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upper middle class professionals, you know, project managers, business owners,

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software engineers, doctors, lawyers. They're professionals. Like I said, it's

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an above average group. And that's the part of the

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trap of trading though, is you know, you look at it,

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it's like, wow, yeah, looks easy enough. I can do that.

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I understand how it works. I see what I'm supposed

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to do. But and this is my favorite analogy, it's

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just like with the game of golf. I've grown up

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around the game of golf. My dad, but he was

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an avid golfer, love the game, and it seems pretty decent.

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His dad was even better. He was able to throw

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a golf course year. Anyway, I was never a great golfer,

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and I'm still not a great golfer. The thing is,

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though I've grown up around the game, I understand everything

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about the game. I know all the rules, all the terminology. Yeah,

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I know what I'm supposed to do. Yeah, it doesn't matter.

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Speaker 3: Huh.

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Speaker 1: That doesn't make me a good golfer. Yeah. And so

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many traders it's like we you know, we jump into it,

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we look at it. It's like, Okay, I understand how

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it works, and I understand what I'm supposed to do,

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but that doesn't make you good at it. And the

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thing is, in trading, you actually you have to get

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good at this until you do I mean, because here's

300
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here's the thing. Like most other professions, there's a level

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of skill required to be good at this and trade

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and just do the job. Well and with confidence and

303
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the you know, it's a calm emotional state as long

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as you're operating down here where you basically know enough

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to be dangerous but you're not good at it yet,

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it's going to be it's it's going to be stressful.

307
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You're probably not going to do that well. And there's

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no way for it not to be an emotional experience.

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Once you get skilled up and now you you have

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the contents and the no and you know that you know, yeah,

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your emotions settled down and it becomes just like any

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other day job, which is really cool. Yeah.

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Speaker 3: Yeah, So who's like the most successful trader you ever met?

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Speaker 1: Well, met in person. Unfortunately with trading, I haven't met

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that many traders face to face. I met a lot

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of people online, met a lot of traders.

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Speaker 3: They both come into contact with one way or the other.

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Speaker 1: Actually, Ray Barrows is probably a favorite. He's he's a

319
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guy who's been in the game for a long time.

320
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I mean, I've known quite a few traders, but yeah,

321
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he's probably my favorite. He's just a super nice guy,

322
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super sharp, got good perspectives and everything, a lot of fun.

323
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My favorite one that I've ever heard of, though, was

324
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Nicholas Darvius, the guy who wrote the book a long

325
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time ago, before the way, before the internet and everything,

326
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how I made two million dollars in the stock market.

327
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This is like in the sixties, and he was he

328
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was funny because he was he was a professional ballroom

329
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dancer and got started trading because one guy didn't have

330
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the cash to pay him so or he didn't anyway,

331
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he wound up getting three thousand dollars worth of stock

332
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as payment for one of the gigs that he did,

333
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and that's how he got started trading. But the way

334
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he approached the trading was, Yes, I'm going to get

335
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good at this, and I'm going to be very mindful

336
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that I'm a human being and I'm susceptible to certain

337
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influences like opinions of others and all that kind of stuff.

338
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And so his whole focus the entire time was, I'm

339
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going to develop the method that I like and it

340
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makes sense to me, and I can demonstrate that it works,

341
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and I'm going to get very good at it. And

342
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he was able to take three thousand dollars and turn

343
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it into two million dollars in just a couple of years,

344
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and that was a huge accomplishment. I mean this is

345
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back that this was back before we had long distance

346
00:16:36,919 --> 00:16:41,519
across the ocean. I was trading via cable and was

347
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able to accomplish that. So anyway, it's like yeah, yeah, yeah.

348
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Other than that, yeah, Like I said, over the years,

349
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I've come to know a lot of really good traders,

350
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a lot of different backgrounds. Some focus on trading psychology,

351
00:16:54,080 --> 00:16:56,960
others you know, learned four X and like in the

352
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prop firms. Another buddy of mine, he's big in a strategy,

353
00:17:00,480 --> 00:17:04,519
is really good strategy developer. And so for anybody that's listening,

354
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if you have an interest in trading, or if you're already

355
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trading and you're kind of wonder, you know, where's your

356
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starting point? One of the very first things you have

357
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to do is don't try to be a discretionary trader

358
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where you're just going to sit down and just trade

359
00:17:14,319 --> 00:17:16,279
whatever the market's thrown at you and you just trying

360
00:17:16,279 --> 00:17:18,039
to chase it around. You do want to pick a

361
00:17:18,079 --> 00:17:20,960
strategy specific method again that you can get good at.

362
00:17:21,240 --> 00:17:23,680
And so your process is going to be built on

363
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a strategy, and it's really important that you have a

364
00:17:26,400 --> 00:17:29,400
strategy again that suits you well. You understand it well,

365
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it agrees with kind of how you see the markets

366
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and your philosophies and how you like to operate anyway,

367
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and that's your starting point. And so if you like,

368
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I've got a free guide that I wrote. It's called

369
00:17:40,200 --> 00:17:43,559
the Perfect Trading Strategy Guide, but it's the nine Criteria.

370
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When you're looking at a strategy, it's like you want

371
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to run it through this criteria list to make sure

372
00:17:47,960 --> 00:17:49,200
that it is going to be a bit fit for you,

373
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because that's your starting point. Is just what kind of

374
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method do I want to trade?

375
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Speaker 3: Yeah, and so for somebody starting out, what do you

376
00:17:57,119 --> 00:17:57,960
think is best?

377
00:17:58,480 --> 00:18:01,319
Speaker 1: Really, it's it's totally why open It all depends on

378
00:18:01,359 --> 00:18:04,200
who you are. Some people they're good with day trading.

379
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They can sit there and in front of the charts

380
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six to eight hours a day and love every minute

381
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of it. Others two three hours and past that it's

382
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diminishing returns big time. Some people sitting in front of

383
00:18:15,079 --> 00:18:17,480
the charts at all really sucks, and it's like, no,

384
00:18:17,519 --> 00:18:19,039
I want to be an end of day trader, or

385
00:18:19,079 --> 00:18:21,039
you know, like it's half an hour a day or

386
00:18:21,039 --> 00:18:23,240
I'm just sitting down with the daily charts. I mean

387
00:18:23,279 --> 00:18:24,920
That's one of the best things about trading is you

388
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can choose your involvement in your working hours however you want.

389
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It really is going to be driven by your financial goals,

390
00:18:31,240 --> 00:18:34,400
what you wanted to get out of trading, what kind

391
00:18:34,440 --> 00:18:37,480
of return on your capital and your time do you

392
00:18:37,640 --> 00:18:41,000
enjoy it? But the trading hours, your your financial goals,

393
00:18:41,559 --> 00:18:44,519
your level of enjoying, your passion for the activity itself.

394
00:18:45,519 --> 00:18:48,839
You need to answer those questions. Those are like core questions,

395
00:18:49,000 --> 00:18:50,480
and those are the same questions you would ask about

396
00:18:50,480 --> 00:18:52,440
any business you might be looking to get into it. Yeah,

397
00:18:52,480 --> 00:18:54,440
but trade definitely with trading, and you need to look

398
00:18:54,480 --> 00:18:56,079
at them. Don't just jump into it. And I want

399
00:18:56,119 --> 00:18:58,240
to make some money, and that's the only guidance you've

400
00:18:58,240 --> 00:19:01,880
got for making decisions. You get sucked in. It's buying

401
00:19:01,880 --> 00:19:05,519
somebody so much crap just cost you money.

402
00:19:05,559 --> 00:19:09,440
Speaker 3: I understand. You know, it's a serious commitment. And what

403
00:19:09,559 --> 00:19:11,839
about having like a business plan for trading?

404
00:19:12,039 --> 00:19:15,359
Speaker 1: Oh? Absolutely absolutely. And the cool thing is it doesn't

405
00:19:15,359 --> 00:19:18,079
have to be some big, twenty page, you know, formal

406
00:19:18,400 --> 00:19:20,519
you know business plan, Like if you're trying to start

407
00:19:20,519 --> 00:19:23,279
a you know, a fortune five five hundred company, it

408
00:19:23,279 --> 00:19:25,279
can be a pretty simple document, but you do need

409
00:19:25,319 --> 00:19:28,039
to go through it. And like we were talking about earlier,

410
00:19:28,240 --> 00:19:31,599
in standard business plan, the first section is the executive summary.

411
00:19:32,000 --> 00:19:34,319
Who's going to be executing this plan and what are

412
00:19:34,359 --> 00:19:37,240
their qualifications? And so again you kind of need to

413
00:19:37,319 --> 00:19:40,359
again be brutally honest with yourself self awareness, be brutally

414
00:19:40,359 --> 00:19:42,680
honest with yourself. Am I a total rookie at this?

415
00:19:43,119 --> 00:19:44,720
Do I have some skills you know that I can

416
00:19:44,720 --> 00:19:46,759
bring to it that will transfer most people for most

417
00:19:46,799 --> 00:19:49,359
people know? So it's like, Okay, where do I need

418
00:19:49,400 --> 00:19:51,359
to How do I how do I become a good trader?

419
00:19:51,359 --> 00:19:53,400
Where I do know what I'm doing so I'm not

420
00:19:53,559 --> 00:19:55,200
just taking a beating and getting a lot of hard

421
00:19:55,279 --> 00:19:59,279
lessons and waste the time and lost money and so yeah,

422
00:19:59,400 --> 00:20:03,559
but a business short business plan, you know, brutally honest.

423
00:20:03,920 --> 00:20:05,480
Am I even suited for this? Do I want to

424
00:20:05,480 --> 00:20:07,759
do it? And then yeah, what are my goals? What

425
00:20:07,799 --> 00:20:10,720
do I want to accomplish with trading? And you know

426
00:20:10,720 --> 00:20:13,160
how much am I willing to you know, possibly lose

427
00:20:13,200 --> 00:20:15,240
with it and I'll be totally married to it. You

428
00:20:15,319 --> 00:20:16,880
always got to be trading with money that you you

429
00:20:16,880 --> 00:20:18,440
know you're okay with a losing the not going to

430
00:20:18,480 --> 00:20:21,480
screen up you know, cost you your marriage or anything.

431
00:20:23,400 --> 00:20:26,279
So but yeah, business plan, simple business plan. Uh and

432
00:20:26,319 --> 00:20:28,400
again the you know the basic structure. You know, what

433
00:20:28,759 --> 00:20:31,240
are you trying to achieve? What's your plan to achieve

434
00:20:31,240 --> 00:20:31,839
those goals?

435
00:20:32,160 --> 00:20:33,079
Speaker 3: Yeah? Gotcha?

436
00:20:33,400 --> 00:20:34,039
Speaker 1: Gotcha?

437
00:20:34,119 --> 00:20:36,920
Speaker 3: All right, So people want to find out more about you,

438
00:20:37,000 --> 00:20:39,279
connect with you on the web, Brian. Where is the

439
00:20:39,319 --> 00:20:40,079
best place to go?

440
00:20:40,519 --> 00:20:44,039
Speaker 1: Uh, inside out trading dot com. And if you like,

441
00:20:44,400 --> 00:20:46,720
if you go to inside out Trading dot com forward slash,

442
00:20:47,000 --> 00:20:51,079
what's l u t z, it's starting point. They can

443
00:20:51,119 --> 00:20:54,359
pick up the free trading Strategy Guide, all right and

444
00:20:54,480 --> 00:20:56,599
get a little quick intro into the thought process. But

445
00:20:56,680 --> 00:20:59,079
you know that's like an initial thought process to become

446
00:20:59,119 --> 00:21:01,079
a successful trade. That's a good starting point.

447
00:21:01,200 --> 00:21:03,599
Speaker 3: So all right, I like it. All right, Well, hey,

448
00:21:03,720 --> 00:21:05,519
thank you for coming on. If you got any questions

449
00:21:05,519 --> 00:21:09,880
for Brian myself. KL Atcarrieluts dot com is the email address,

450
00:21:10,559 --> 00:21:14,960
and you'll find a link to Brian's site on our

451
00:21:15,039 --> 00:21:18,680
site Financial Survival Network dot com. Just click the link,

452
00:21:18,759 --> 00:21:21,000
it'll take you right there. What we ask is if

453
00:21:21,000 --> 00:21:23,319
you're at the site, sign up for your free newsletter

454
00:21:23,440 --> 00:21:29,319
like over eighty thousand other FSN listeners and community members

455
00:21:29,359 --> 00:21:31,279
have Brian, we'll talk to you again.

456
00:21:31,319 --> 00:21:33,559
Speaker 1: Thanks for coming on, Hey, thanks for having me on

457
00:21:33,640 --> 00:21:36,119
and ap Plot everybody the chair looking to improve their

458
00:21:36,119 --> 00:21:38,319
lives and make some money along the way.

459
00:21:38,640 --> 00:21:42,799
Speaker 2: Thanks for listening to Carrie Letz's Financial Survival Network, your

460
00:21:42,880 --> 00:21:46,680
solution to today's trying times. For the latest, go to

461
00:21:46,839 --> 00:21:54,359
Financial Survivalnetwork dot com. Financial Survival Network now more than ever,