Latest / Financial Survival Network / Why Most Traders Lose Everything Fast - Brian McAboy #6298

Transcript

Why Most Traders Lose Everything Fast - Brian McAboy #6298 · Financial Survival Network

0:00
Speaker 1: Most traders get it backwards. They're thinking, I want to
0:02
Speaker 1: find a good strategy and I'll get profitable, and then
0:05
Speaker 1: I'll figure out how to get consistent. It's like, no,
0:07
Speaker 1: if you want consistent profits, you need to focus on
0:09
Speaker 1: a consistency first.
0:11
Speaker 2: You're listening to Carrie Lutz's Financial Survival Network, where you
0:14
Speaker 2: get valuable information. You just can't find anywhere else to
0:19
Speaker 2: thrive in today's trying times. You need the Financial Survival
0:23
Speaker 2: Network now more than ever. Go to Financial Survivalnetwork dot
0:27
Speaker 2: com and get your free newsletter and gift. Financial Survival
0:32
Speaker 2: Network now more than ever.
0:38
Speaker 1: And welcome.
0:39
Speaker 3: You are listening to and watching the Financial Survival Network.
0:43
Speaker 3: I'm your host, Carrie Lutz. Got a new guest on.
0:47
Speaker 3: He has been trading for nearly twenty years. Well, he's
0:52
Speaker 3: been successful trading. He is real satisfaction is by teaching
0:58
Speaker 3: others how to become successful traders. And Brian McAboy, welcome
1:04
Speaker 3: to the show. So, first, how did you become a trader?
1:08
Speaker 1: Well, actually I started trading. I've been helping other traders
1:12
Speaker 1: for almost twenty years. I started trading actually back in
1:14
Speaker 1: the nineties, back in the day before the internet, there
1:18
Speaker 1: was a guy named Ken Roberts who had this excellent
1:20
Speaker 1: book and a direct mail campaign through the snail mail
1:23
Speaker 1: and the book was who was selling a book called
1:26
Speaker 1: the Greatest Business on Earth and he was talking about
1:28
Speaker 1: futures trading and it was a great book and he
1:32
Speaker 1: did really well well. It introduced a lot of people
1:33
Speaker 1: to the world of trading, myself included. And it was
1:38
Speaker 1: pretty interesting because that was back in the day. Like
1:40
Speaker 1: I said, this was pre internet. This is when if
1:42
Speaker 1: you wanted to place a trade, you're picking up a
1:44
Speaker 1: telephone like a landline. Sure, I remember those calling a
1:48
Speaker 1: broker to place your trade.
1:52
Speaker 3: I knew one of the guys who was responsible for
1:56
Speaker 3: inventing or creating day trading, and he actually, you know
2:01
Speaker 3: credit is one of the fathers of it from back
2:04
Speaker 3: in eighty seven after the first well after the crash
2:09
Speaker 3: of eighty seven. His name was Harvey Houtkin, and he
2:15
Speaker 3: was an interesting character. So what do you think the
2:20
Speaker 3: best part of trading is, Well, the.
2:22
Speaker 1: Best part of trading is is it's a great thing
2:26
Speaker 1: and a liability at the same time as really the
2:28
Speaker 1: low barrier to entry any other business that you want
2:32
Speaker 1: to pursue. It's going to take you know, a reasonable
2:35
Speaker 1: amount of upfront capital and usually a length of time
2:40
Speaker 1: and a learning curve, and it's not and a lot
2:43
Speaker 1: of times it's not just that easy to enter that market.
2:46
Speaker 1: But with trading, anybody can start trading today. All you
2:50
Speaker 1: need to do is fund an account and you can
2:51
Speaker 1: trade other There are no other requirements. But to be successful,
2:57
Speaker 1: now that's a whole different story. And like I said,
3:00
Speaker 1: that's why it's a liability. The almost zero barriers to
3:03
Speaker 1: entry so many people. Because there are no barriers to entry,
3:07
Speaker 1: it kind of feels almost like an entry level job. Now, hey,
3:12
Speaker 1: I don't need a degree for that job. I can
3:13
Speaker 1: just go walk right in and start doing it. But
3:16
Speaker 1: it's not an entry level job. It's a skilled profession.
3:20
Speaker 1: I mean, if you think about it, trading it for individuals,
3:25
Speaker 1: but if you're trading in the global markets, trading is
3:29
Speaker 1: professional speculation and it's essence. I mean, we're sitting here
3:34
Speaker 1: and we're trying to anticipate what we think is going
3:36
Speaker 1: to happen, and we're placing bets and so at this level,
3:40
Speaker 1: though you can't afford to be a rookie, you can't
3:42
Speaker 1: afford to be average, or you're just going to take
3:44
Speaker 1: a beating. It's professional and you're up against professionals.
3:49
Speaker 3: That's true for sure. Oh yeah, so obviously you're a professional.
3:55
Speaker 3: How did you become a professional?
3:58
Speaker 1: Well, I had to I had to learn that is
4:00
Speaker 1: the hard way. Back when I was cutting my teeth,
4:04
Speaker 1: there wasn't much good help out there, and so my
4:08
Speaker 1: first year, I kind of you know, I had Ken
4:10
Speaker 1: Roberts book, which was cool, and it was a paper book.
4:13
Speaker 1: I wasn't like anything on a computer. We didn't have
4:15
Speaker 1: YouTube videos and stuff back then. So you know, I
4:19
Speaker 1: jump into this. I started account and I'm trying to
4:21
Speaker 1: learn how to trade. And my broker, he was a
4:23
Speaker 1: young kid, he didn't really know much about He knew
4:25
Speaker 1: he had to help me place trades, and so I'm
4:27
Speaker 1: trying to train myself and I'm I'm just flying along
4:31
Speaker 1: by the seat of my pants and not not knowing alarmed.
4:33
Speaker 1: I mean, I'm trying to train myself and I didn't
4:35
Speaker 1: know what I was doing, which is made for a
4:37
Speaker 1: lousy trainer. So anyway, I got kind of lucky though.
4:41
Speaker 1: I started with a thirty thousand dollars account and over
4:44
Speaker 1: the first year I managed to run it up to
4:45
Speaker 1: over forty seven thousand dollars and then I just got
4:50
Speaker 1: completely stupid, and the stress finally got to me because
4:52
Speaker 1: I knew I didn't know what I was doing, and
4:54
Speaker 1: even when I was winning, it was still stressful. I mean,
4:57
Speaker 1: here I am, I'm like, you know, I'm young, I'm
4:58
Speaker 1: a young guy. I feel like I'm having a heart
5:00
Speaker 1: attack all the time. It just because I'm so wound up.
5:04
Speaker 1: And so eventually the stress got to a point where
5:07
Speaker 1: apparently my subconscious said, you're going to stop trading because
5:10
Speaker 1: this is going to really screen up.
5:12
Speaker 2: You know.
5:13
Speaker 1: You know, it's like some when you work too much
5:15
Speaker 1: and you wind up getting sick and you're bed ridden
5:17
Speaker 1: for a week because your body just says you're taking
5:20
Speaker 1: a break, whether you like it or not.
5:22
Speaker 3: Sure, yeah, I know.
5:23
Speaker 1: So it was kind of the same thing. And that's
5:24
Speaker 1: part of why some traders actually they don't just take
5:26
Speaker 1: a beating that actually go ahead and blow up their account,
5:29
Speaker 1: which I did. I ran all the way down from
5:30
Speaker 1: forty seven thousand dollars down to seventeen hundred dollars. Wow. Yeah,
5:35
Speaker 1: And so Needles said, I took a break. And now,
5:38
Speaker 1: fortunately before that I had been working and well at
5:42
Speaker 1: the time, I was still working in a manufacturing plant
5:44
Speaker 1: making plastic bottles for like coke and Pepsi and gatorad
5:47
Speaker 1: and stuff. And it was a super high volume, high speed,
5:51
Speaker 1: high dollar razor thin margin operation, and I was the
5:55
Speaker 1: quality assurance manager. So it was my job to make
5:58
Speaker 1: sure that we're getting good, consistent production and out of everything,
6:01
Speaker 1: the equipment and all the people. And so most of
6:04
Speaker 1: my time as a quality manager, you know, I mean,
6:06
Speaker 1: it's part of the time was spent with machines, but
6:08
Speaker 1: most of my time was spent with the people on
6:10
Speaker 1: the planet. I had one hundred and eighty three people
6:11
Speaker 1: I was responsible for right and seven different departments for
6:15
Speaker 1: different shifts, all these different people, all these different jobs,
6:17
Speaker 1: and it's my job to make sure everybody's doing their
6:19
Speaker 1: job the right way and doing it consistent. And so
6:22
Speaker 1: a friend of mine, I was talking with her and
6:23
Speaker 1: let her know, you know, telling her about blowing up
6:24
Speaker 1: my account and everything. She's like, Brian, at your work,
6:28
Speaker 1: you're just to get everybody good at what they're doing
6:30
Speaker 1: and get consistent performance out of them. Just take what
6:32
Speaker 1: you're doing at work and apply it to your training.
6:34
Speaker 1: And I'm thinking, duh, I just Like I said, I
6:36
Speaker 1: was looking at a kind of like an entry level job.
6:38
Speaker 1: I just jump in. Looks easy enough, I'll just learn
6:40
Speaker 1: as I go. That's why I took a beating though.
6:43
Speaker 1: So what I did was I took my quality assurance stuff,
6:45
Speaker 1: which and I'll break down for you here in a second,
6:47
Speaker 1: but I took my quality of sharance stuff and applied
6:49
Speaker 1: it to my trading, and I was able to actually
6:52
Speaker 1: get a handle on it where I knew what the
6:53
Speaker 1: heck I was doing and settle down and turn things
6:58
Speaker 1: right now. It took a little while to figure things out,
7:00
Speaker 1: but generally, with quality assurance and the way I teach
7:03
Speaker 1: people how to apply it to their trading, there's three
7:05
Speaker 1: basic steps to the process. First is you got to
7:09
Speaker 1: get you have to establish consistency first. Most traders get
7:13
Speaker 1: it backwards. They're thinking, I want to find a good
7:15
Speaker 1: strategy and I'll get profitable and then I'll figure out
7:18
Speaker 1: how to get consistent. It's like, no, if you want
7:20
Speaker 1: consistent profits, you need to focus on the consistency first,
7:23
Speaker 1: because if you have a consistent process, that's easy to
7:26
Speaker 1: adjust and to make better. But if you're all over
7:28
Speaker 1: the place, that's kind of hard. To fix and that's
7:30
Speaker 1: where most most traders find themselves.
7:32
Speaker 3: These are all over the place, right, So focus is focus.
7:36
Speaker 1: Oh yeah, oh yeah. We established consistency first, and then
7:40
Speaker 1: the next thing we do is and again this is
7:42
Speaker 1: just where people aren't taught how to do it right.
7:44
Speaker 1: But we want to establish confidence in what we're doing.
7:47
Speaker 1: So there's testing that goes into it, and you have
7:50
Speaker 1: to know how to test the right way. Otherwise the
7:52
Speaker 1: testing can actually be more harmful than helpful if you're
7:55
Speaker 1: not testing right way, because it gives you results that
7:57
Speaker 1: you can't rely on. But anyway, so we got a
8:00
Speaker 1: good process, we confirm that it works and then and
8:03
Speaker 1: then we dial it in for profit and then I
8:06
Speaker 1: take them through the mental conditioning, the training so that
8:09
Speaker 1: their execution is good. Gotcha. And this is how you
8:12
Speaker 1: get good at trading, is you you You don't try
8:14
Speaker 1: to trade everything. You find a strategy that works for you.
8:17
Speaker 1: It's a good fit for you. And that's a that's
8:19
Speaker 1: a really crucial thing too. A lot of people think,
8:21
Speaker 1: you know, they can just grab somebody else's strategy because
8:23
Speaker 1: you know they're making money. It's like, no, it has
8:26
Speaker 1: to work for you. Because if there's certain things about
8:28
Speaker 1: it that don't agree with you. The internal conflict, they'll
8:31
Speaker 1: have you a second guessing yourself somewhere along the way,
8:34
Speaker 1: or just playing sabotage in yourself. So you got to
8:36
Speaker 1: you got to start with a decent strategy and then,
8:40
Speaker 1: like I said, we build a good solid process on
8:41
Speaker 1: it so you have that consistency, establish a confidence with it,
8:45
Speaker 1: and dial it in and then we do the mental
8:47
Speaker 1: conditioning for consistent execution and kind of fixing the damage
8:51
Speaker 1: that it curus in the early months. So understood, understood,
8:56
Speaker 1: all right.
8:57
Speaker 3: So, uh, when you're going to take on a new
9:01
Speaker 3: client to train, do you ever just tell them this
9:04
Speaker 3: isn't right for you. Don't you're going to lose money?
9:08
Speaker 1: Oh yeah, yeah. If I'm talking to somebody, well, one
9:11
Speaker 1: of my favorite questions to ask people if they wanted to,
9:14
Speaker 1: you know, be an independent trader. One of the favorite
9:16
Speaker 1: questions to ask is have you ever started and run
9:18
Speaker 1: your own business? If they say no, what that tells
9:22
Speaker 1: me is they've never had to go through that learning
9:25
Speaker 1: curve of starting and running a business. And it's a
9:28
Speaker 1: substantial learning curve. And the thing is there's mindsets and
9:31
Speaker 1: perspectives and expectations and all kinds of stuff that goes
9:34
Speaker 1: with running a business versus just being an employee. If
9:38
Speaker 1: you've been an employee your whole life, yeah, you used to,
9:40
Speaker 1: you know, you put in some time you get a paycheck.
9:42
Speaker 1: Doesn't work that way trading business.
9:45
Speaker 3: You know what my father used to say, he was
9:47
Speaker 3: a lifelong entrepreneur. He used to say, anytime you go
9:51
Speaker 3: into a new business, you pay for lessons.
9:56
Speaker 1: Oh yeah. Now, unfortunately, you talk to a lot of traders,
9:59
Speaker 1: and most people come to me, they've been trading for
10:01
Speaker 1: like three, five, eight, ten years already and they're still struggling.
10:05
Speaker 1: And one of the one of one of the most
10:07
Speaker 1: common comments say is, yeah, you know, but I've learned
10:09
Speaker 1: a lot about myself. Speaking well, life is sign it
10:15
Speaker 1: for a lot of lessons though.
10:16
Speaker 3: Yeah, and there can be very costly Oh yes, that's
10:20
Speaker 3: why when trading, I know for sure, risk management is key.
10:24
Speaker 1: Oh yeah, yeah, well again one of the one of
10:28
Speaker 1: the perspectives you learn as a business owner, and you
10:31
Speaker 1: go through those through the lessons you learn in starting
10:35
Speaker 1: and running your own businesses. You always have to have
10:37
Speaker 1: the long game in mind, because you're playing the infinite game.
10:40
Speaker 1: The goal is to stay in the game, not to
10:43
Speaker 1: just win this month. That's uh. I mean, I've heard
10:46
Speaker 1: that from Simon Sinek and a handful of others, and
10:49
Speaker 1: I love that perspective. It's like, no, we're not trying
10:51
Speaker 1: to win this quarter, We're not trying to win this month.
10:53
Speaker 1: We're in the We're in it for the long haul.
10:54
Speaker 1: We want to be in this for long games. We
10:56
Speaker 1: have to survival is the first first order of business. Now,
11:00
Speaker 1: let me ask you a question, because since we're talking
11:02
Speaker 1: about business, if you were to hire somebody as a
11:05
Speaker 1: trade let's say you wanted to start trading, but you're
11:07
Speaker 1: going to you wanted to hire somebody to do it
11:09
Speaker 1: forty or somebody comes to you. You know, you've got
11:11
Speaker 1: a great business ide and you're going to hire somebody
11:13
Speaker 1: to do the startup for you? Are you? Would you,
11:16
Speaker 1: you know, just to hire somebody because they're cheap, and
11:20
Speaker 1: you know they're kind of They'll say, sure, i'll do
11:21
Speaker 1: it for you, I'll do it for almost nothing, and
11:23
Speaker 1: but you know, I don't know what I'm doing. I'll
11:25
Speaker 1: just kind of learn as I go. Or would you
11:27
Speaker 1: want to, you know, have somebody who's trained and they
11:30
Speaker 1: know what they're doing, and you know they actually have
11:34
Speaker 1: the competence to do it. I mean, who would you
11:36
Speaker 1: want to hire? Yeah, yeah, well obvious. Yes see. Here's
11:41
Speaker 1: the funny thing about it, though, so many traders and
11:43
Speaker 1: I'm not judging anybody. I was totally guilty of this myself.
11:48
Speaker 1: When when you go into it yourself, you're the trader
11:51
Speaker 1: you're hiring. And so if you don't know what you're doing,
11:54
Speaker 1: do you want to just jump into it and start
11:56
Speaker 1: trading or do you want to say, wait a minute,
11:59
Speaker 1: I don't know what I'm doing. I'm new to this.
12:01
Speaker 1: I need to go get trained up before I start
12:03
Speaker 1: trading with real money, actually acquire the skills of this profession.
12:08
Speaker 1: Or it's just like hiring a lawyer, you know, a
12:10
Speaker 1: good mechanic where it's like, you know, you want somebody
12:11
Speaker 1: who knows what they're doing, not figuring it out as
12:13
Speaker 1: they go.
12:15
Speaker 3: Yeah, I gotcha, I gotcha. So I guess I guess.
12:20
Speaker 3: Really the key is knowing yourself, right, Oh.
12:24
Speaker 1: Self awareness is huge, absolutely yes, And well right along
12:29
Speaker 1: with that though, is being brutally honest with yourself. Mhm.
12:33
Speaker 1: I mean it's okay to be self aware, but if
12:35
Speaker 1: you're seening going no, no, no, no, I can do this.
12:38
Speaker 1: It's like no, that's that's how you spend five years
12:41
Speaker 1: taking a beating and getting a lot of life lessons
12:43
Speaker 1: without making money.
12:46
Speaker 3: I can understand that. So yeah, like ye, So sometimes
12:51
Speaker 3: I'm sure you think somebody is good when you first
12:54
Speaker 3: meet him, and then they turn out not to be
12:56
Speaker 3: so good.
12:56
Speaker 1: Right. Oh, Now, in fairness, most of the people who
13:01
Speaker 1: come to me are generally successful people. I mean, traders
13:05
Speaker 1: on the whole are above average people. I mean, if
13:08
Speaker 1: you think about it, you almost have to be in
13:09
Speaker 1: order to be in a position to trade. That's this
13:11
Speaker 1: is not one where the average Joe's going to sho
13:13
Speaker 1: up because they don't have five, ten, fifty hundred thousand
13:15
Speaker 1: dollars to trade with. So you have to have demonstrated
13:19
Speaker 1: certain characteristics to start with. And most traders are generally
13:23
Speaker 1: upper middle class professionals, you know, project managers, business owners,
13:27
Speaker 1: software engineers, doctors, lawyers. They're professionals. Like I said, it's
13:32
Speaker 1: an above average group. And that's the part of the
13:35
Speaker 1: trap of trading though, is you know, you look at it,
13:37
Speaker 1: it's like, wow, yeah, looks easy enough. I can do that.
13:40
Speaker 1: I understand how it works. I see what I'm supposed
13:42
Speaker 1: to do. But and this is my favorite analogy, it's
13:45
Speaker 1: just like with the game of golf. I've grown up
13:47
Speaker 1: around the game of golf. My dad, but he was
13:49
Speaker 1: an avid golfer, love the game, and it seems pretty decent.
13:51
Speaker 1: His dad was even better. He was able to throw
13:54
Speaker 1: a golf course year. Anyway, I was never a great golfer,
13:57
Speaker 1: and I'm still not a great golfer. The thing is,
14:00
Speaker 1: though I've grown up around the game, I understand everything
14:03
Speaker 1: about the game. I know all the rules, all the terminology. Yeah,
14:05
Speaker 1: I know what I'm supposed to do. Yeah, it doesn't matter.
14:08
Speaker 3: Huh.
14:08
Speaker 1: That doesn't make me a good golfer. Yeah. And so
14:12
Speaker 1: many traders it's like we you know, we jump into it,
14:14
Speaker 1: we look at it. It's like, Okay, I understand how
14:15
Speaker 1: it works, and I understand what I'm supposed to do,
14:18
Speaker 1: but that doesn't make you good at it. And the
14:20
Speaker 1: thing is, in trading, you actually you have to get
14:22
Speaker 1: good at this until you do I mean, because here's
14:26
Speaker 1: here's the thing. Like most other professions, there's a level
14:30
Speaker 1: of skill required to be good at this and trade
14:33
Speaker 1: and just do the job. Well and with confidence and
14:36
Speaker 1: the you know, it's a calm emotional state as long
14:40
Speaker 1: as you're operating down here where you basically know enough
14:42
Speaker 1: to be dangerous but you're not good at it yet,
14:44
Speaker 1: it's going to be it's it's going to be stressful.
14:47
Speaker 1: You're probably not going to do that well. And there's
14:49
Speaker 1: no way for it not to be an emotional experience.
14:52
Speaker 1: Once you get skilled up and now you you have
14:55
Speaker 1: the contents and the no and you know that you know, yeah,
14:59
Speaker 1: your emotions settled down and it becomes just like any
15:01
Speaker 1: other day job, which is really cool. Yeah.
15:05
Speaker 3: Yeah, So who's like the most successful trader you ever met?
15:10
Speaker 1: Well, met in person. Unfortunately with trading, I haven't met
15:14
Speaker 1: that many traders face to face. I met a lot
15:16
Speaker 1: of people online, met a lot of traders.
15:18
Speaker 3: They both come into contact with one way or the other.
15:22
Speaker 1: Actually, Ray Barrows is probably a favorite. He's he's a
15:25
Speaker 1: guy who's been in the game for a long time.
15:27
Speaker 1: I mean, I've known quite a few traders, but yeah,
15:30
Speaker 1: he's probably my favorite. He's just a super nice guy,
15:32
Speaker 1: super sharp, got good perspectives and everything, a lot of fun.
15:35
Speaker 1: My favorite one that I've ever heard of, though, was
15:37
Speaker 1: Nicholas Darvius, the guy who wrote the book a long
15:40
Speaker 1: time ago, before the way, before the internet and everything,
15:43
Speaker 1: how I made two million dollars in the stock market.
15:45
Speaker 1: This is like in the sixties, and he was he
15:49
Speaker 1: was funny because he was he was a professional ballroom
15:54
Speaker 1: dancer and got started trading because one guy didn't have
15:58
Speaker 1: the cash to pay him so or he didn't anyway,
16:01
Speaker 1: he wound up getting three thousand dollars worth of stock
16:03
Speaker 1: as payment for one of the gigs that he did,
16:05
Speaker 1: and that's how he got started trading. But the way
16:07
Speaker 1: he approached the trading was, Yes, I'm going to get
16:10
Speaker 1: good at this, and I'm going to be very mindful
16:12
Speaker 1: that I'm a human being and I'm susceptible to certain
16:15
Speaker 1: influences like opinions of others and all that kind of stuff.
16:18
Speaker 1: And so his whole focus the entire time was, I'm
16:21
Speaker 1: going to develop the method that I like and it
16:23
Speaker 1: makes sense to me, and I can demonstrate that it works,
16:25
Speaker 1: and I'm going to get very good at it. And
16:27
Speaker 1: he was able to take three thousand dollars and turn
16:29
Speaker 1: it into two million dollars in just a couple of years,
16:32
Speaker 1: and that was a huge accomplishment. I mean this is
16:34
Speaker 1: back that this was back before we had long distance
16:36
Speaker 1: across the ocean. I was trading via cable and was
16:41
Speaker 1: able to accomplish that. So anyway, it's like yeah, yeah, yeah.
16:46
Speaker 1: Other than that, yeah, Like I said, over the years,
16:48
Speaker 1: I've come to know a lot of really good traders,
16:50
Speaker 1: a lot of different backgrounds. Some focus on trading psychology,
16:54
Speaker 1: others you know, learned four X and like in the
16:57
Speaker 1: prop firms. Another buddy of mine, he's big in a strategy,
17:00
Speaker 1: is really good strategy developer. And so for anybody that's listening,
17:04
Speaker 1: if you have an interest in trading, or if you're already
17:06
Speaker 1: trading and you're kind of wonder, you know, where's your
17:07
Speaker 1: starting point? One of the very first things you have
17:10
Speaker 1: to do is don't try to be a discretionary trader
17:12
Speaker 1: where you're just going to sit down and just trade
17:14
Speaker 1: whatever the market's thrown at you and you just trying
17:16
Speaker 1: to chase it around. You do want to pick a
17:18
Speaker 1: strategy specific method again that you can get good at.
17:21
Speaker 1: And so your process is going to be built on
17:23
Speaker 1: a strategy, and it's really important that you have a
17:26
Speaker 1: strategy again that suits you well. You understand it well,
17:29
Speaker 1: it agrees with kind of how you see the markets
17:31
Speaker 1: and your philosophies and how you like to operate anyway,
17:33
Speaker 1: and that's your starting point. And so if you like,
17:37
Speaker 1: I've got a free guide that I wrote. It's called
17:40
Speaker 1: the Perfect Trading Strategy Guide, but it's the nine Criteria.
17:43
Speaker 1: When you're looking at a strategy, it's like you want
17:45
Speaker 1: to run it through this criteria list to make sure
17:47
Speaker 1: that it is going to be a bit fit for you,
17:49
Speaker 1: because that's your starting point. Is just what kind of
17:52
Speaker 1: method do I want to trade?
17:53
Speaker 3: Yeah, and so for somebody starting out, what do you
17:57
Speaker 3: think is best?
17:58
Speaker 1: Really, it's it's totally why open It all depends on
18:01
Speaker 1: who you are. Some people they're good with day trading.
18:04
Speaker 1: They can sit there and in front of the charts
18:06
Speaker 1: six to eight hours a day and love every minute
18:08
Speaker 1: of it. Others two three hours and past that it's
18:11
Speaker 1: diminishing returns big time. Some people sitting in front of
18:15
Speaker 1: the charts at all really sucks, and it's like, no,
18:17
Speaker 1: I want to be an end of day trader, or
18:19
Speaker 1: you know, like it's half an hour a day or
18:21
Speaker 1: I'm just sitting down with the daily charts. I mean
18:23
Speaker 1: That's one of the best things about trading is you
18:24
Speaker 1: can choose your involvement in your working hours however you want.
18:28
Speaker 1: It really is going to be driven by your financial goals,
18:31
Speaker 1: what you wanted to get out of trading, what kind
18:34
Speaker 1: of return on your capital and your time do you
18:37
Speaker 1: enjoy it? But the trading hours, your your financial goals,
18:41
Speaker 1: your level of enjoying, your passion for the activity itself.
18:45
Speaker 1: You need to answer those questions. Those are like core questions,
18:49
Speaker 1: and those are the same questions you would ask about
18:50
Speaker 1: any business you might be looking to get into it. Yeah,
18:52
Speaker 1: but trade definitely with trading, and you need to look
18:54
Speaker 1: at them. Don't just jump into it. And I want
18:56
Speaker 1: to make some money, and that's the only guidance you've
18:58
Speaker 1: got for making decisions. You get sucked in. It's buying
19:01
Speaker 1: somebody so much crap just cost you money.
19:05
Speaker 3: I understand. You know, it's a serious commitment. And what
19:09
Speaker 3: about having like a business plan for trading?
19:12
Speaker 1: Oh? Absolutely absolutely. And the cool thing is it doesn't
19:15
Speaker 1: have to be some big, twenty page, you know, formal
19:18
Speaker 1: you know business plan, Like if you're trying to start
19:20
Speaker 1: a you know, a fortune five five hundred company, it
19:23
Speaker 1: can be a pretty simple document, but you do need
19:25
Speaker 1: to go through it. And like we were talking about earlier,
19:28
Speaker 1: in standard business plan, the first section is the executive summary.
19:32
Speaker 1: Who's going to be executing this plan and what are
19:34
Speaker 1: their qualifications? And so again you kind of need to
19:37
Speaker 1: again be brutally honest with yourself self awareness, be brutally
19:40
Speaker 1: honest with yourself. Am I a total rookie at this?
19:43
Speaker 1: Do I have some skills you know that I can
19:44
Speaker 1: bring to it that will transfer most people for most
19:46
Speaker 1: people know? So it's like, Okay, where do I need
19:49
Speaker 1: to How do I how do I become a good trader?
19:51
Speaker 1: Where I do know what I'm doing so I'm not
19:53
Speaker 1: just taking a beating and getting a lot of hard
19:55
Speaker 1: lessons and waste the time and lost money and so yeah,
19:59
Speaker 1: but a business short business plan, you know, brutally honest.
20:03
Speaker 1: Am I even suited for this? Do I want to
20:05
Speaker 1: do it? And then yeah, what are my goals? What
20:07
Speaker 1: do I want to accomplish with trading? And you know
20:10
Speaker 1: how much am I willing to you know, possibly lose
20:13
Speaker 1: with it and I'll be totally married to it. You
20:15
Speaker 1: always got to be trading with money that you you
20:16
Speaker 1: know you're okay with a losing the not going to
20:18
Speaker 1: screen up you know, cost you your marriage or anything.
20:23
Speaker 1: So but yeah, business plan, simple business plan. Uh and
20:26
Speaker 1: again the you know the basic structure. You know, what
20:28
Speaker 1: are you trying to achieve? What's your plan to achieve
20:31
Speaker 1: those goals?
20:32
Speaker 3: Yeah? Gotcha?
20:33
Speaker 1: Gotcha?
20:34
Speaker 3: All right, So people want to find out more about you,
20:37
Speaker 3: connect with you on the web, Brian. Where is the
20:39
Speaker 3: best place to go?
20:40
Speaker 1: Uh, inside out trading dot com. And if you like,
20:44
Speaker 1: if you go to inside out Trading dot com forward slash,
20:47
Speaker 1: what's l u t z, it's starting point. They can
20:51
Speaker 1: pick up the free trading Strategy Guide, all right and
20:54
Speaker 1: get a little quick intro into the thought process. But
20:56
Speaker 1: you know that's like an initial thought process to become
20:59
Speaker 1: a successful trade. That's a good starting point.
21:01
Speaker 3: So all right, I like it. All right, Well, hey,
21:03
Speaker 3: thank you for coming on. If you got any questions
21:05
Speaker 3: for Brian myself. KL Atcarrieluts dot com is the email address,
21:10
Speaker 3: and you'll find a link to Brian's site on our
21:15
Speaker 3: site Financial Survival Network dot com. Just click the link,
21:18
Speaker 3: it'll take you right there. What we ask is if
21:21
Speaker 3: you're at the site, sign up for your free newsletter
21:23
Speaker 3: like over eighty thousand other FSN listeners and community members
21:29
Speaker 3: have Brian, we'll talk to you again.
21:31
Speaker 1: Thanks for coming on, Hey, thanks for having me on
21:33
Speaker 1: and ap Plot everybody the chair looking to improve their
21:36
Speaker 1: lives and make some money along the way.
21:38
Speaker 2: Thanks for listening to Carrie Letz's Financial Survival Network, your
21:42
Speaker 2: solution to today's trying times. For the latest, go to
21:46
Speaker 2: Financial Survivalnetwork dot com. Financial Survival Network now more than ever,