WEBVTT 1 00:00:00.120 --> 00:00:02.520 Most traders get it backwards. They're thinking, I want to 2 00:00:02.520 --> 00:00:05.000 find a good strategy and I'll get profitable, and then 3 00:00:05.040 --> 00:00:07.240 I'll figure out how to get consistent. It's like, no, 4 00:00:07.320 --> 00:00:09.839 if you want consistent profits, you need to focus on 5 00:00:09.880 --> 00:00:10.839 a consistency first. 6 00:00:11.080 --> 00:00:14.919 You're listening to Carrie Lutz's Financial Survival Network, where you 7 00:00:14.960 --> 00:00:18.920 get valuable information. You just can't find anywhere else to 8 00:00:19.079 --> 00:00:23.120 thrive in today's trying times. You need the Financial Survival 9 00:00:23.120 --> 00:00:27.839 Network now more than ever. Go to Financial Survivalnetwork dot 10 00:00:27.879 --> 00:00:32.240 com and get your free newsletter and gift. Financial Survival 11 00:00:32.280 --> 00:00:34.920 Network now more than ever. 12 00:00:38.399 --> 00:00:39.079 And welcome. 13 00:00:39.439 --> 00:00:42.960 You are listening to and watching the Financial Survival Network. 14 00:00:43.000 --> 00:00:46.600 I'm your host, Carrie Lutz. Got a new guest on. 15 00:00:47.359 --> 00:00:52.719 He has been trading for nearly twenty years. Well, he's 16 00:00:52.759 --> 00:00:58.479 been successful trading. He is real satisfaction is by teaching 17 00:00:58.520 --> 00:01:04.319 others how to become successful traders. And Brian McAboy, welcome 18 00:01:04.400 --> 00:01:08.040 to the show. So, first, how did you become a trader? 19 00:01:08.920 --> 00:01:12.480 Well, actually I started trading. I've been helping other traders 20 00:01:12.480 --> 00:01:14.480 for almost twenty years. I started trading actually back in 21 00:01:14.519 --> 00:01:18.359 the nineties, back in the day before the internet, there 22 00:01:18.480 --> 00:01:20.840 was a guy named Ken Roberts who had this excellent 23 00:01:20.920 --> 00:01:23.280 book and a direct mail campaign through the snail mail 24 00:01:23.840 --> 00:01:26.200 and the book was who was selling a book called 25 00:01:26.480 --> 00:01:28.439 the Greatest Business on Earth and he was talking about 26 00:01:28.480 --> 00:01:31.959 futures trading and it was a great book and he 27 00:01:32.000 --> 00:01:33.920 did really well well. It introduced a lot of people 28 00:01:33.959 --> 00:01:38.000 to the world of trading, myself included. And it was 29 00:01:38.280 --> 00:01:40.200 pretty interesting because that was back in the day. Like 30 00:01:40.200 --> 00:01:42.280 I said, this was pre internet. This is when if 31 00:01:42.319 --> 00:01:44.319 you wanted to place a trade, you're picking up a 32 00:01:44.319 --> 00:01:48.079 telephone like a landline. Sure, I remember those calling a 33 00:01:48.079 --> 00:01:50.239 broker to place your trade. 34 00:01:52.319 --> 00:01:54.959 I knew one of the guys who was responsible for 35 00:01:56.200 --> 00:02:01.079 inventing or creating day trading, and he actually, you know 36 00:02:01.519 --> 00:02:04.040 credit is one of the fathers of it from back 37 00:02:04.079 --> 00:02:09.800 in eighty seven after the first well after the crash 38 00:02:09.840 --> 00:02:15.319 of eighty seven. His name was Harvey Houtkin, and he 39 00:02:15.479 --> 00:02:20.400 was an interesting character. So what do you think the 40 00:02:20.400 --> 00:02:22.680 best part of trading is, Well, the. 41 00:02:22.599 --> 00:02:26.560 Best part of trading is is it's a great thing 42 00:02:26.560 --> 00:02:28.599 and a liability at the same time as really the 43 00:02:28.639 --> 00:02:32.439 low barrier to entry any other business that you want 44 00:02:32.479 --> 00:02:35.479 to pursue. It's going to take you know, a reasonable 45 00:02:35.479 --> 00:02:40.360 amount of upfront capital and usually a length of time 46 00:02:40.639 --> 00:02:43.439 and a learning curve, and it's not and a lot 47 00:02:43.439 --> 00:02:45.759 of times it's not just that easy to enter that market. 48 00:02:46.039 --> 00:02:50.280 But with trading, anybody can start trading today. All you 49 00:02:50.319 --> 00:02:51.919 need to do is fund an account and you can 50 00:02:51.960 --> 00:02:56.800 trade other There are no other requirements. But to be successful, 51 00:02:57.479 --> 00:03:00.159 now that's a whole different story. And like I said, 52 00:03:00.039 --> 00:03:03.319 that's why it's a liability. The almost zero barriers to 53 00:03:03.479 --> 00:03:06.879 entry so many people. Because there are no barriers to entry, 54 00:03:07.879 --> 00:03:12.080 it kind of feels almost like an entry level job. Now, hey, 55 00:03:12.120 --> 00:03:13.680 I don't need a degree for that job. I can 56 00:03:13.759 --> 00:03:16.680 just go walk right in and start doing it. But 57 00:03:16.719 --> 00:03:19.719 it's not an entry level job. It's a skilled profession. 58 00:03:20.319 --> 00:03:25.159 I mean, if you think about it, trading it for individuals, 59 00:03:25.680 --> 00:03:29.159 but if you're trading in the global markets, trading is 60 00:03:29.360 --> 00:03:34.199 professional speculation and it's essence. I mean, we're sitting here 61 00:03:34.199 --> 00:03:36.319 and we're trying to anticipate what we think is going 62 00:03:36.360 --> 00:03:40.520 to happen, and we're placing bets and so at this level, 63 00:03:40.560 --> 00:03:42.840 though you can't afford to be a rookie, you can't 64 00:03:42.879 --> 00:03:44.719 afford to be average, or you're just going to take 65 00:03:44.719 --> 00:03:48.879 a beating. It's professional and you're up against professionals. 66 00:03:49.719 --> 00:03:55.280 That's true for sure. Oh yeah, so obviously you're a professional. 67 00:03:55.280 --> 00:03:56.840 How did you become a professional? 68 00:03:58.000 --> 00:04:00.240 Well, I had to I had to learn that is 69 00:04:00.240 --> 00:04:03.280 the hard way. Back when I was cutting my teeth, 70 00:04:04.000 --> 00:04:08.199 there wasn't much good help out there, and so my 71 00:04:08.240 --> 00:04:10.000 first year, I kind of you know, I had Ken 72 00:04:10.080 --> 00:04:13.639 Roberts book, which was cool, and it was a paper book. 73 00:04:13.800 --> 00:04:15.360 I wasn't like anything on a computer. We didn't have 74 00:04:15.439 --> 00:04:18.959 YouTube videos and stuff back then. So you know, I 75 00:04:19.040 --> 00:04:20.920 jump into this. I started account and I'm trying to 76 00:04:21.000 --> 00:04:23.000 learn how to trade. And my broker, he was a 77 00:04:23.040 --> 00:04:25.199 young kid, he didn't really know much about He knew 78 00:04:25.279 --> 00:04:27.879 he had to help me place trades, and so I'm 79 00:04:27.920 --> 00:04:31.079 trying to train myself and I'm I'm just flying along 80 00:04:31.160 --> 00:04:33.920 by the seat of my pants and not not knowing alarmed. 81 00:04:33.959 --> 00:04:35.519 I mean, I'm trying to train myself and I didn't 82 00:04:35.519 --> 00:04:37.480 know what I was doing, which is made for a 83 00:04:37.480 --> 00:04:41.000 lousy trainer. So anyway, I got kind of lucky though. 84 00:04:41.879 --> 00:04:44.199 I started with a thirty thousand dollars account and over 85 00:04:44.240 --> 00:04:45.759 the first year I managed to run it up to 86 00:04:45.800 --> 00:04:50.079 over forty seven thousand dollars and then I just got 87 00:04:50.120 --> 00:04:52.720 completely stupid, and the stress finally got to me because 88 00:04:52.759 --> 00:04:54.480 I knew I didn't know what I was doing, and 89 00:04:54.519 --> 00:04:57.000 even when I was winning, it was still stressful. I mean, 90 00:04:57.079 --> 00:04:58.720 here I am, I'm like, you know, I'm young, I'm 91 00:04:58.759 --> 00:05:00.800 a young guy. I feel like I'm having a heart 92 00:05:00.800 --> 00:05:04.000 attack all the time. It just because I'm so wound up. 93 00:05:04.279 --> 00:05:07.160 And so eventually the stress got to a point where 94 00:05:07.240 --> 00:05:10.800 apparently my subconscious said, you're going to stop trading because 95 00:05:10.839 --> 00:05:12.839 this is going to really screen up. 96 00:05:12.839 --> 00:05:13.000 You know. 97 00:05:13.040 --> 00:05:14.959 You know, it's like some when you work too much 98 00:05:15.439 --> 00:05:17.600 and you wind up getting sick and you're bed ridden 99 00:05:17.639 --> 00:05:20.199 for a week because your body just says you're taking 100 00:05:20.240 --> 00:05:21.480 a break, whether you like it or not. 101 00:05:22.040 --> 00:05:23.000 Sure, yeah, I know. 102 00:05:23.319 --> 00:05:24.680 So it was kind of the same thing. And that's 103 00:05:24.680 --> 00:05:26.959 part of why some traders actually they don't just take 104 00:05:26.959 --> 00:05:29.079 a beating that actually go ahead and blow up their account, 105 00:05:29.079 --> 00:05:30.720 which I did. I ran all the way down from 106 00:05:30.720 --> 00:05:35.399 forty seven thousand dollars down to seventeen hundred dollars. Wow. Yeah, 107 00:05:35.439 --> 00:05:38.360 And so Needles said, I took a break. And now, 108 00:05:38.519 --> 00:05:42.160 fortunately before that I had been working and well at 109 00:05:42.160 --> 00:05:44.639 the time, I was still working in a manufacturing plant 110 00:05:44.680 --> 00:05:47.120 making plastic bottles for like coke and Pepsi and gatorad 111 00:05:47.160 --> 00:05:51.360 and stuff. And it was a super high volume, high speed, 112 00:05:51.879 --> 00:05:55.040 high dollar razor thin margin operation, and I was the 113 00:05:55.120 --> 00:05:57.959 quality assurance manager. So it was my job to make 114 00:05:58.000 --> 00:06:01.199 sure that we're getting good, consistent production and out of everything, 115 00:06:01.560 --> 00:06:04.879 the equipment and all the people. And so most of 116 00:06:04.920 --> 00:06:06.639 my time as a quality manager, you know, I mean, 117 00:06:06.639 --> 00:06:08.399 it's part of the time was spent with machines, but 118 00:06:08.439 --> 00:06:10.279 most of my time was spent with the people on 119 00:06:10.319 --> 00:06:11.839 the planet. I had one hundred and eighty three people 120 00:06:11.879 --> 00:06:15.319 I was responsible for right and seven different departments for 121 00:06:15.439 --> 00:06:17.759 different shifts, all these different people, all these different jobs, 122 00:06:17.800 --> 00:06:19.600 and it's my job to make sure everybody's doing their 123 00:06:19.680 --> 00:06:21.959 job the right way and doing it consistent. And so 124 00:06:22.040 --> 00:06:23.279 a friend of mine, I was talking with her and 125 00:06:23.399 --> 00:06:24.759 let her know, you know, telling her about blowing up 126 00:06:24.759 --> 00:06:27.800 my account and everything. She's like, Brian, at your work, 127 00:06:28.120 --> 00:06:30.399 you're just to get everybody good at what they're doing 128 00:06:30.439 --> 00:06:32.800 and get consistent performance out of them. Just take what 129 00:06:32.839 --> 00:06:34.439 you're doing at work and apply it to your training. 130 00:06:34.480 --> 00:06:36.920 And I'm thinking, duh, I just Like I said, I 131 00:06:36.959 --> 00:06:38.319 was looking at a kind of like an entry level job. 132 00:06:38.360 --> 00:06:40.199 I just jump in. Looks easy enough, I'll just learn 133 00:06:40.240 --> 00:06:42.560 as I go. That's why I took a beating though. 134 00:06:43.000 --> 00:06:45.360 So what I did was I took my quality assurance stuff, 135 00:06:45.639 --> 00:06:47.800 which and I'll break down for you here in a second, 136 00:06:47.800 --> 00:06:49.439 but I took my quality of sharance stuff and applied 137 00:06:49.480 --> 00:06:52.319 it to my trading, and I was able to actually 138 00:06:52.360 --> 00:06:53.879 get a handle on it where I knew what the 139 00:06:53.879 --> 00:06:58.040 heck I was doing and settle down and turn things 140 00:06:58.120 --> 00:06:59.839 right now. It took a little while to figure things out, 141 00:07:00.279 --> 00:07:03.160 but generally, with quality assurance and the way I teach 142 00:07:03.199 --> 00:07:05.759 people how to apply it to their trading, there's three 143 00:07:05.800 --> 00:07:09.920 basic steps to the process. First is you got to 144 00:07:09.959 --> 00:07:13.680 get you have to establish consistency first. Most traders get 145 00:07:13.680 --> 00:07:15.720 it backwards. They're thinking, I want to find a good 146 00:07:15.759 --> 00:07:18.399 strategy and I'll get profitable and then I'll figure out 147 00:07:18.439 --> 00:07:20.560 how to get consistent. It's like, no, if you want 148 00:07:20.560 --> 00:07:23.600 consistent profits, you need to focus on the consistency first, 149 00:07:23.600 --> 00:07:25.959 because if you have a consistent process, that's easy to 150 00:07:26.000 --> 00:07:28.000 adjust and to make better. But if you're all over 151 00:07:28.040 --> 00:07:30.519 the place, that's kind of hard. To fix and that's 152 00:07:30.519 --> 00:07:32.560 where most most traders find themselves. 153 00:07:32.600 --> 00:07:36.439 These are all over the place, right, So focus is focus. 154 00:07:36.560 --> 00:07:40.319 Oh yeah, oh yeah. We established consistency first, and then 155 00:07:40.319 --> 00:07:42.399 the next thing we do is and again this is 156 00:07:42.480 --> 00:07:44.160 just where people aren't taught how to do it right. 157 00:07:44.519 --> 00:07:47.519 But we want to establish confidence in what we're doing. 158 00:07:47.560 --> 00:07:50.240 So there's testing that goes into it, and you have 159 00:07:50.319 --> 00:07:51.959 to know how to test the right way. Otherwise the 160 00:07:52.000 --> 00:07:55.240 testing can actually be more harmful than helpful if you're 161 00:07:55.240 --> 00:07:57.879 not testing right way, because it gives you results that 162 00:07:57.920 --> 00:08:00.160 you can't rely on. But anyway, so we got a 163 00:08:00.160 --> 00:08:03.879 good process, we confirm that it works and then and 164 00:08:03.920 --> 00:08:06.319 then we dial it in for profit and then I 165 00:08:06.360 --> 00:08:09.240 take them through the mental conditioning, the training so that 166 00:08:09.279 --> 00:08:12.360 their execution is good. Gotcha. And this is how you 167 00:08:12.399 --> 00:08:14.759 get good at trading, is you you You don't try 168 00:08:14.800 --> 00:08:17.720 to trade everything. You find a strategy that works for you. 169 00:08:17.920 --> 00:08:19.800 It's a good fit for you. And that's a that's 170 00:08:19.800 --> 00:08:21.439 a really crucial thing too. A lot of people think, 171 00:08:21.480 --> 00:08:23.319 you know, they can just grab somebody else's strategy because 172 00:08:23.519 --> 00:08:26.319 you know they're making money. It's like, no, it has 173 00:08:26.360 --> 00:08:28.839 to work for you. Because if there's certain things about 174 00:08:28.839 --> 00:08:31.800 it that don't agree with you. The internal conflict, they'll 175 00:08:31.839 --> 00:08:34.039 have you a second guessing yourself somewhere along the way, 176 00:08:34.240 --> 00:08:36.559 or just playing sabotage in yourself. So you got to 177 00:08:36.600 --> 00:08:39.919 you got to start with a decent strategy and then, 178 00:08:40.000 --> 00:08:41.639 like I said, we build a good solid process on 179 00:08:41.679 --> 00:08:45.080 it so you have that consistency, establish a confidence with it, 180 00:08:45.120 --> 00:08:47.840 and dial it in and then we do the mental 181 00:08:47.879 --> 00:08:51.159 conditioning for consistent execution and kind of fixing the damage 182 00:08:51.200 --> 00:08:56.080 that it curus in the early months. So understood, understood, 183 00:08:56.399 --> 00:08:56.919 all right. 184 00:08:57.039 --> 00:09:01.039 So, uh, when you're going to take on a new 185 00:09:01.080 --> 00:09:04.320 client to train, do you ever just tell them this 186 00:09:04.360 --> 00:09:07.919 isn't right for you. Don't you're going to lose money? 187 00:09:08.440 --> 00:09:11.120 Oh yeah, yeah. If I'm talking to somebody, well, one 188 00:09:11.159 --> 00:09:14.200 of my favorite questions to ask people if they wanted to, 189 00:09:14.279 --> 00:09:16.759 you know, be an independent trader. One of the favorite 190 00:09:16.840 --> 00:09:18.840 questions to ask is have you ever started and run 191 00:09:18.879 --> 00:09:22.679 your own business? If they say no, what that tells 192 00:09:22.720 --> 00:09:25.559 me is they've never had to go through that learning 193 00:09:25.600 --> 00:09:28.279 curve of starting and running a business. And it's a 194 00:09:28.320 --> 00:09:31.120 substantial learning curve. And the thing is there's mindsets and 195 00:09:31.159 --> 00:09:34.399 perspectives and expectations and all kinds of stuff that goes 196 00:09:34.440 --> 00:09:38.879 with running a business versus just being an employee. If 197 00:09:38.879 --> 00:09:40.879 you've been an employee your whole life, yeah, you used to, 198 00:09:40.879 --> 00:09:42.360 you know, you put in some time you get a paycheck. 199 00:09:42.919 --> 00:09:44.879 Doesn't work that way trading business. 200 00:09:45.519 --> 00:09:47.480 You know what my father used to say, he was 201 00:09:47.519 --> 00:09:51.080 a lifelong entrepreneur. He used to say, anytime you go 202 00:09:51.159 --> 00:09:53.840 into a new business, you pay for lessons. 203 00:09:56.120 --> 00:09:59.480 Oh yeah. Now, unfortunately, you talk to a lot of traders, 204 00:09:59.480 --> 00:10:01.120 and most people come to me, they've been trading for 205 00:10:01.159 --> 00:10:04.960 like three, five, eight, ten years already and they're still struggling. 206 00:10:05.720 --> 00:10:07.879 And one of the one of one of the most 207 00:10:07.879 --> 00:10:09.879 common comments say is, yeah, you know, but I've learned 208 00:10:09.879 --> 00:10:15.159 a lot about myself. Speaking well, life is sign it 209 00:10:15.200 --> 00:10:16.240 for a lot of lessons though. 210 00:10:16.919 --> 00:10:20.159 Yeah, and there can be very costly Oh yes, that's 211 00:10:20.200 --> 00:10:24.440 why when trading, I know for sure, risk management is key. 212 00:10:24.720 --> 00:10:28.080 Oh yeah, yeah, well again one of the one of 213 00:10:28.080 --> 00:10:31.879 the perspectives you learn as a business owner, and you 214 00:10:31.879 --> 00:10:35.159 go through those through the lessons you learn in starting 215 00:10:35.159 --> 00:10:37.759 and running your own businesses. You always have to have 216 00:10:37.799 --> 00:10:40.440 the long game in mind, because you're playing the infinite game. 217 00:10:40.879 --> 00:10:42.879 The goal is to stay in the game, not to 218 00:10:43.000 --> 00:10:46.720 just win this month. That's uh. I mean, I've heard 219 00:10:46.720 --> 00:10:49.039 that from Simon Sinek and a handful of others, and 220 00:10:49.200 --> 00:10:51.240 I love that perspective. It's like, no, we're not trying 221 00:10:51.240 --> 00:10:52.919 to win this quarter, We're not trying to win this month. 222 00:10:53.120 --> 00:10:54.679 We're in the We're in it for the long haul. 223 00:10:54.720 --> 00:10:56.279 We want to be in this for long games. We 224 00:10:56.320 --> 00:11:00.000 have to survival is the first first order of business. Now, 225 00:11:00.840 --> 00:11:02.559 let me ask you a question, because since we're talking 226 00:11:02.600 --> 00:11:05.759 about business, if you were to hire somebody as a 227 00:11:05.759 --> 00:11:07.480 trade let's say you wanted to start trading, but you're 228 00:11:07.480 --> 00:11:09.000 going to you wanted to hire somebody to do it 229 00:11:09.080 --> 00:11:11.919 forty or somebody comes to you. You know, you've got 230 00:11:11.919 --> 00:11:13.480 a great business ide and you're going to hire somebody 231 00:11:13.480 --> 00:11:16.519 to do the startup for you? Are you? Would you, 232 00:11:16.519 --> 00:11:19.759 you know, just to hire somebody because they're cheap, and 233 00:11:20.039 --> 00:11:21.879 you know they're kind of They'll say, sure, i'll do 234 00:11:21.919 --> 00:11:23.519 it for you, I'll do it for almost nothing, and 235 00:11:23.919 --> 00:11:25.480 but you know, I don't know what I'm doing. I'll 236 00:11:25.519 --> 00:11:27.519 just kind of learn as I go. Or would you 237 00:11:27.519 --> 00:11:30.600 want to, you know, have somebody who's trained and they 238 00:11:30.600 --> 00:11:34.480 know what they're doing, and you know they actually have 239 00:11:34.559 --> 00:11:36.639 the competence to do it. I mean, who would you 240 00:11:36.639 --> 00:11:41.080 want to hire? Yeah, yeah, well obvious. Yes see. Here's 241 00:11:41.120 --> 00:11:43.159 the funny thing about it, though, so many traders and 242 00:11:43.480 --> 00:11:46.480 I'm not judging anybody. I was totally guilty of this myself. 243 00:11:48.360 --> 00:11:51.440 When when you go into it yourself, you're the trader 244 00:11:51.480 --> 00:11:54.519 you're hiring. And so if you don't know what you're doing, 245 00:11:54.919 --> 00:11:56.519 do you want to just jump into it and start 246 00:11:56.559 --> 00:11:59.000 trading or do you want to say, wait a minute, 247 00:11:59.200 --> 00:12:00.639 I don't know what I'm doing. I'm new to this. 248 00:12:01.559 --> 00:12:03.679 I need to go get trained up before I start 249 00:12:03.679 --> 00:12:08.279 trading with real money, actually acquire the skills of this profession. 250 00:12:08.679 --> 00:12:10.200 Or it's just like hiring a lawyer, you know, a 251 00:12:10.200 --> 00:12:11.919 good mechanic where it's like, you know, you want somebody 252 00:12:11.919 --> 00:12:13.759 who knows what they're doing, not figuring it out as 253 00:12:13.759 --> 00:12:14.080 they go. 254 00:12:15.519 --> 00:12:20.679 Yeah, I gotcha, I gotcha. So I guess I guess. 255 00:12:20.720 --> 00:12:24.759 Really the key is knowing yourself, right, Oh. 256 00:12:24.799 --> 00:12:29.399 Self awareness is huge, absolutely yes, And well right along 257 00:12:29.440 --> 00:12:33.399 with that though, is being brutally honest with yourself. Mhm. 258 00:12:33.919 --> 00:12:35.320 I mean it's okay to be self aware, but if 259 00:12:35.320 --> 00:12:37.639 you're seening going no, no, no, no, I can do this. 260 00:12:38.080 --> 00:12:41.000 It's like no, that's that's how you spend five years 261 00:12:41.080 --> 00:12:43.399 taking a beating and getting a lot of life lessons 262 00:12:43.440 --> 00:12:44.919 without making money. 263 00:12:46.000 --> 00:12:51.519 I can understand that. So yeah, like ye, So sometimes 264 00:12:51.559 --> 00:12:54.279 I'm sure you think somebody is good when you first 265 00:12:54.320 --> 00:12:56.039 meet him, and then they turn out not to be 266 00:12:56.159 --> 00:12:56.639 so good. 267 00:12:56.799 --> 00:13:01.200 Right. Oh, Now, in fairness, most of the people who 268 00:13:01.200 --> 00:13:05.159 come to me are generally successful people. I mean, traders 269 00:13:05.159 --> 00:13:08.080 on the whole are above average people. I mean, if 270 00:13:08.120 --> 00:13:09.559 you think about it, you almost have to be in 271 00:13:09.639 --> 00:13:11.759 order to be in a position to trade. That's this 272 00:13:11.799 --> 00:13:13.360 is not one where the average Joe's going to sho 273 00:13:13.399 --> 00:13:15.840 up because they don't have five, ten, fifty hundred thousand 274 00:13:15.879 --> 00:13:19.639 dollars to trade with. So you have to have demonstrated 275 00:13:19.759 --> 00:13:23.600 certain characteristics to start with. And most traders are generally 276 00:13:23.679 --> 00:13:27.799 upper middle class professionals, you know, project managers, business owners, 277 00:13:27.799 --> 00:13:32.639 software engineers, doctors, lawyers. They're professionals. Like I said, it's 278 00:13:32.639 --> 00:13:35.639 an above average group. And that's the part of the 279 00:13:35.679 --> 00:13:37.600 trap of trading though, is you know, you look at it, 280 00:13:37.600 --> 00:13:39.679 it's like, wow, yeah, looks easy enough. I can do that. 281 00:13:40.159 --> 00:13:42.360 I understand how it works. I see what I'm supposed 282 00:13:42.399 --> 00:13:45.519 to do. But and this is my favorite analogy, it's 283 00:13:45.559 --> 00:13:47.919 just like with the game of golf. I've grown up 284 00:13:47.960 --> 00:13:49.399 around the game of golf. My dad, but he was 285 00:13:49.399 --> 00:13:51.679 an avid golfer, love the game, and it seems pretty decent. 286 00:13:51.960 --> 00:13:54.080 His dad was even better. He was able to throw 287 00:13:54.279 --> 00:13:57.399 a golf course year. Anyway, I was never a great golfer, 288 00:13:57.559 --> 00:13:59.960 and I'm still not a great golfer. The thing is, 289 00:14:00.159 --> 00:14:03.080 though I've grown up around the game, I understand everything 290 00:14:03.080 --> 00:14:05.679 about the game. I know all the rules, all the terminology. Yeah, 291 00:14:05.759 --> 00:14:08.480 I know what I'm supposed to do. Yeah, it doesn't matter. 292 00:14:08.600 --> 00:14:08.919 Huh. 293 00:14:08.960 --> 00:14:12.159 That doesn't make me a good golfer. Yeah. And so 294 00:14:12.200 --> 00:14:14.279 many traders it's like we you know, we jump into it, 295 00:14:14.320 --> 00:14:15.960 we look at it. It's like, Okay, I understand how 296 00:14:15.960 --> 00:14:17.559 it works, and I understand what I'm supposed to do, 297 00:14:18.320 --> 00:14:20.000 but that doesn't make you good at it. And the 298 00:14:20.039 --> 00:14:22.240 thing is, in trading, you actually you have to get 299 00:14:22.279 --> 00:14:26.919 good at this until you do I mean, because here's 300 00:14:26.960 --> 00:14:30.919 here's the thing. Like most other professions, there's a level 301 00:14:30.919 --> 00:14:33.600 of skill required to be good at this and trade 302 00:14:33.759 --> 00:14:36.440 and just do the job. Well and with confidence and 303 00:14:36.759 --> 00:14:40.159 the you know, it's a calm emotional state as long 304 00:14:40.200 --> 00:14:42.559 as you're operating down here where you basically know enough 305 00:14:42.600 --> 00:14:44.519 to be dangerous but you're not good at it yet, 306 00:14:44.759 --> 00:14:47.559 it's going to be it's it's going to be stressful. 307 00:14:47.600 --> 00:14:49.240 You're probably not going to do that well. And there's 308 00:14:49.240 --> 00:14:51.600 no way for it not to be an emotional experience. 309 00:14:52.519 --> 00:14:55.279 Once you get skilled up and now you you have 310 00:14:55.360 --> 00:14:59.279 the contents and the no and you know that you know, yeah, 311 00:14:59.360 --> 00:15:01.759 your emotions settled down and it becomes just like any 312 00:15:01.799 --> 00:15:05.200 other day job, which is really cool. Yeah. 313 00:15:05.840 --> 00:15:10.120 Yeah, So who's like the most successful trader you ever met? 314 00:15:10.279 --> 00:15:14.919 Well, met in person. Unfortunately with trading, I haven't met 315 00:15:14.919 --> 00:15:16.600 that many traders face to face. I met a lot 316 00:15:16.600 --> 00:15:18.279 of people online, met a lot of traders. 317 00:15:18.360 --> 00:15:21.240 They both come into contact with one way or the other. 318 00:15:22.159 --> 00:15:25.679 Actually, Ray Barrows is probably a favorite. He's he's a 319 00:15:25.679 --> 00:15:27.519 guy who's been in the game for a long time. 320 00:15:27.919 --> 00:15:30.480 I mean, I've known quite a few traders, but yeah, 321 00:15:30.519 --> 00:15:32.840 he's probably my favorite. He's just a super nice guy, 322 00:15:32.919 --> 00:15:35.519 super sharp, got good perspectives and everything, a lot of fun. 323 00:15:35.879 --> 00:15:37.480 My favorite one that I've ever heard of, though, was 324 00:15:37.559 --> 00:15:40.360 Nicholas Darvius, the guy who wrote the book a long 325 00:15:40.399 --> 00:15:43.120 time ago, before the way, before the internet and everything, 326 00:15:43.440 --> 00:15:45.159 how I made two million dollars in the stock market. 327 00:15:45.159 --> 00:15:48.240 This is like in the sixties, and he was he 328 00:15:49.440 --> 00:15:53.919 was funny because he was he was a professional ballroom 329 00:15:54.000 --> 00:15:58.159 dancer and got started trading because one guy didn't have 330 00:15:58.200 --> 00:16:01.080 the cash to pay him so or he didn't anyway, 331 00:16:01.120 --> 00:16:03.200 he wound up getting three thousand dollars worth of stock 332 00:16:03.240 --> 00:16:04.919 as payment for one of the gigs that he did, 333 00:16:05.200 --> 00:16:07.440 and that's how he got started trading. But the way 334 00:16:07.519 --> 00:16:10.759 he approached the trading was, Yes, I'm going to get 335 00:16:10.759 --> 00:16:12.559 good at this, and I'm going to be very mindful 336 00:16:12.600 --> 00:16:14.799 that I'm a human being and I'm susceptible to certain 337 00:16:15.000 --> 00:16:17.799 influences like opinions of others and all that kind of stuff. 338 00:16:18.200 --> 00:16:21.639 And so his whole focus the entire time was, I'm 339 00:16:21.639 --> 00:16:23.360 going to develop the method that I like and it 340 00:16:23.399 --> 00:16:25.759 makes sense to me, and I can demonstrate that it works, 341 00:16:25.840 --> 00:16:27.720 and I'm going to get very good at it. And 342 00:16:27.840 --> 00:16:29.759 he was able to take three thousand dollars and turn 343 00:16:29.799 --> 00:16:31.679 it into two million dollars in just a couple of years, 344 00:16:32.159 --> 00:16:34.679 and that was a huge accomplishment. I mean this is 345 00:16:34.759 --> 00:16:36.879 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 00:16:41.559 --> 00:16:45.919 able to accomplish that. So anyway, it's like yeah, yeah, yeah. 348 00:16:46.480 --> 00:16:48.399 Other than that, yeah, Like I said, over the years, 349 00:16:48.559 --> 00:16:50.320 I've come to know a lot of really good traders, 350 00:16:50.519 --> 00:16:53.960 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 00:16:57.000 --> 00:17:00.399 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 00:17:04.559 --> 00:17:06.240 if you have an interest in trading, or if you're already 355 00:17:06.240 --> 00:17:07.960 trading and you're kind of wonder, you know, where's your 356 00:17:07.960 --> 00:17:09.960 starting point? One of the very first things you have 357 00:17:10.039 --> 00:17:12.680 to do is don't try to be a discretionary trader 358 00:17:12.720 --> 00:17:14.279 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 00:17:23.720 --> 00:17:26.359 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 00:17:29.720 --> 00:17:31.400 it agrees with kind of how you see the markets 366 00:17:31.400 --> 00:17:33.400 and your philosophies and how you like to operate anyway, 367 00:17:33.640 --> 00:17:36.839 and that's your starting point. And so if you like, 368 00:17:37.119 --> 00:17:40.160 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 00:17:43.559 --> 00:17:45.319 When you're looking at a strategy, it's like you want 371 00:17:45.319 --> 00:17:47.960 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 00:17:49.200 --> 00:17:51.920 because that's your starting point. Is just what kind of 374 00:17:52.000 --> 00:17:53.119 method do I want to trade? 375 00:17:53.559 --> 00:17:57.079 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 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 00:18:04.319 --> 00:18:06.319 They can sit there and in front of the charts 380 00:18:06.400 --> 00:18:08.480 six to eight hours a day and love every minute 381 00:18:08.480 --> 00:18:11.720 of it. Others two three hours and past that it's 382 00:18:11.759 --> 00:18:15.039 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 00:18:24.920 --> 00:18:28.359 can choose your involvement in your working hours however you want. 389 00:18:28.640 --> 00:18:31.079 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