S08E08: Charlie Burton: Trading coach and mentor. Episode 100!!!
Mar 28, 2024
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Charlie Burton, a seasoned trading coach and founder of CharlieBurtonTrading.com, shares his journey from corporate life to trading full-time. He emphasizes the importance of accountability by vocalizing trade intentions, which enhances discipline and mental clarity. The conversation also delves into the psychological barriers traders face, highlighting that success often relies more on mindset than on technical skills. Community support and effective risk management strategies are discussed as essential elements for overcoming challenges in the trading world.
Charlie Burton emphasizes the significance of building trading skills gradually to avoid pitfalls of sudden transitions into full-time trading.
The podcast discusses the importance of adopting a proper psychological mindset, highlighting that behavior often contributes more to trading failures than technical strategies.
Deep dives
Celebrating Achievements and Growth
This episode marks the 100th installment of a podcast that originally aimed to produce just six episodes. The host reflects on how unexpected popularity led to the continuation of the series over four years, showcasing the commitment and quality of guests. The podcast continues to explore trading dynamics, with discussions led by well-respected figures in the trading community. Such longevity highlights both the evolving interest in trading and the value of sharing industry insights.
The Journey of Charlie Burton
Charlie Burton shares his unconventional path into trading, which began after he attended a financial trading course in the late 1990s. Initially starting as a retail trader alongside his financial services career, he transitioned to trading full-time after several years. His experience emphasizes the importance of building trading skills gradually rather than jumping into full-time trading without adequate preparation. Insights into his journey serve as inspiration for many aspiring traders looking to make similar transitions.
Mindset Over Methods
Burton discusses the common pitfalls amateur traders face, particularly the tendency to seek technical solutions for underlying psychological issues. He explains how many traders fail to recognize that their problems often stem from their behavior rather than the trading strategies they employ. By oversimplifying trading into technical analysis alone, they neglect crucial psychological aspects, leading to poor decision-making such as premature profit-taking or inadequate risk management. He asserts that focusing on mindset can significantly enhance trading outcomes, regardless of the method used.
The Reality of Success Rates
The podcast highlights the striking statistics surrounding retail trading, with approximately 70%-85% of traders losing money despite having a 65% success rate on individual trades. This paradox often arises from improper risk management and an overwhelming desire for instant gratification, leading traders to cut profits early while allowing losses to accumulate. Burton emphasizes the need for traders to adopt a mindset aligned with long-term success, stressing that effective risk-reward ratios and proper psychological approaches are key to overcoming these common challenges. The discussion illustrates how understanding these dynamics can change traders' fortunes and promote sustained profitability.
After trading successfully part time, Charlie Burton broke away from a corporate job in 2001 to start trading for a living. He now runs CharlieBurtonTrading.com – a live trading room and mentorship service that caters to other traders. In this podcast we discuss some of the fundamental aspects of trading such as hit rates and risk to reward ratios. A golden nugget from this conversation was where Charlie mentioned that physically verbalising your trade intentions generally results in better accountability for your actions as a trader.
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