The Stock Trading Reality Podcast

Yes, life is tough. It’s correct, the world is not fair. Some people start off with more of a head start than others. You can’t refute these things, they’re fact. With all that being said, there is a powerful question you can ask and it’ll get you pointed in the right direction. At the end of the day, that’s what it’s all about. Finding the direction you should be headed in and then going with it. What is this question and what makes it so powerful? Let’s discuss it. I don’t want to overcomplicate anything but hopefully get you thinking in a way that’ll drive maximum efficiency.

If you overlook this particular dynamic in trading and investing, you’re going to experience failure. There’s a couple of reasons for this and neither of them in the big picture is going to work out well. With that being said, this is where the irony of the problem arises because it develops from a “big picture” horizon of time. This is also where additional irony comes into play because as traders and investors we need to be patient and allow consistency to add up over larger horizons of time. This all sounds fine and dandy (and it is in theory), but in reality, these things will work against you and cause pain. Let’s make sure you are well aware of this thought process so you are not caught off guard.

I recently released a video with what I thought was a good argument for the logic some people choose to use in their learning journey. I was confronted with two rather lengthy comments (from the same person) objecting to my claims. I wanted to address these as I believe it makes an interesting conversation and, hopefully, can open the eyes of people who ascribe to the line of reasoning displayed on this individuals’ part. I also believe that many of the problems in life can be solved by learning how to converse with one another and not throw logical fallacies into one another’s face. We have a bit of that here so I’d like to try and point them out so we can all learn together on how to conduct the most efficient conversations possible. There are some doubters out there, so let’s address their objections and try to clarify everyone’s perspective.

It’s nothing that has not been said here before, but trading is very difficult. One of the biggest reasons is because of all the gray territory that exists within the world of learning and improving. Much of it has to do with the way the mind works and how we process and store the information. There is a concept in psychology known as dogmatism which, when left unchecked, can truly set you up for failure and headaches. If you’re anything like me, you’ve heard this term before but never really know much of what it means. Upon studying it more though, it creates a threat that we all need to be aware of. Not only when it comes to the world of trading, but to the general way of life. The problem is, there is also a fine line within trading when it comes to this as you don’t want to pull yourself in too many directions. Let’s talk about this more and make sure we are on guard and aware of these potential pitfalls.

I’ve started to get more aggressive in my current trading with SPX options and it’s happened…I’ve been told I’m a dead man walking! I’m told it’s only a matter of time before the market owns me! Here’s the thing though, this person was right and I “got owned” in a single losing trade that erased, literally, nine days worth of gains! Yet, I’m still nicely green on the month! Huh??? This opens up a great discussion on how trading strategies can work and how you can wisely go about developing a strategy to suit your needs. I’m not the greatest trader on the planet; however, I have been trading for almost two decades so I’m done enough dumb things that I now know to avoid. Let me walk you through this accusation of being a dead man walking and how it’s accurate to an extent, but overall, not really.

The goal for us all is the same: gains. The problems for the vast majority of people can be traced back to the time component of these gains. When you are told “slow and steady”, many people scream back, “No! Get rich… now!”. I understand the allure of this. We want to have freedom and do fun things right away. Factor in being ambitious and the picture becomes that much more gray.; My guest, Morris, is a great guy who has done very well for himself in New York City. He’s grown in his career to become the Chief Financial Officer of a company and is striving to leave a legacy for his family. Morris has dipped his toes in a whole variety of strategies from investing to day trading to swing trading. He’s experienced the ups and downs the market offers and has come away with many valid learning lessons… all of which he shares with you! Let’s get to it!

Do emotions affect your trading results at all? Assuming you are a human being and honest with yourself, your answer is “yes!”. For veteran traders in the market, you know this to be true and there are a variety of ways you can tackle this problem. For some people, removing themselves from their trading completely has fantastic results. In this episode, I welcome back long time member Joe (”JoeK” chatroom alias). He has experience in both the world of day trading and, now, swing trading. Due to his job and career ambitions (which is always awesome!), he needed to adjust his trading style. How did he make this transition from day trading into swing trading? How does he find his trades and manage them? We get into that and a whole lot more. If you are someone with a job that keeps you busy but you still want to keep trading alive and well within your wealth building plans, Joe is someone who can offer you some wisdom for sure. Let’s get to it!

I recently stumbled across an article which talked about a special three word phrase. This phrase comes from a public speaking expert from Stanford. I’m well aware that just because an “expert” from a highly regarded institute such as Stanford does not make it true; however, when I think about it and apply to trading, I believe it is 100% accurate! What makes this phrase so special? I would argue the phrase is not only special, but magical for we as traders. I’ve been working with beginner traders and those who are struggling for over a decade now. While this does not make me an expert, it has given me many data points to compare this Stanford expert’s claims against. This is a very simple phrase yet it can truly rewire your brain in beneficial ways to trading. Let’s talk about it and, as always, you are more than welcome to disagree!

Driving to your local brokerage in order to set up an account and place an order. This order to purchase a stock cost you $80 in commissions. How crazy would that be? It sounds like something form a horror movie, doesn’t it? My guest this episode, Darrel, started out in this kind of environment. It makes my head hurt just how barbaric the markets uses to be and just how much I take for granted on a daily basis. Darrel’s journey started in the 1990’s and when you have that kind of experience, you’ll have plenty of stories to share along the way. Darrel did not hesitate to shares the downs (the “ups” are easy to share) and there are some great learning lessons within them. As always, for those of you willing to listen and genuinely consider the points he makes, I can say with full confidence there is great value in them. There are some areas where I lose credibility (as you’ll see); however, this is someone else preaching the same thing I do. Let’s get to it!

As has become my policy, if you are someone who is constantly looking for excuses on why you can’t do something or your main arguments revolve around “the system” being rigged against you, avoid this episode! Community member, Jean, moved to the USA from the Dominican Republic and has been in beast mode. He is a perfect example of they type of person I seek to surround myself with. The way he approaches the world and life is that of pure inspiration and motivation. While we certainly do talk trading, we also talk about several other topics that, indirectly, still do relate to trading. The main topics revolving around the idea that you need capital to trade, so how can you get capital? What kind of attitude is required to find yourself and grow the amount of money you have top trade with? Jean will make you feel guilty (as he did me) in regards to how much you and I take for granted being in the USA. Let’s go!