If there is one personality trait that is a “must have” for long term trading success, I think I’d choose: self awareness. If you are not being honest with yourself and admitting what needs to be admitted, you will spin your wheels in the mud and never improve. Chat room member, Eric, is a shining example of being self aware and using that personality trait to progress his path forward. I really enjoyed our talk with Eric as he was very passionate and energized about the markets; however, was also extremely aware of his situation too.
Notes:
Eric’s introduction to the market consisted of watching his father and some coworkers always checking their trading portfolios. He decided to open his own brokerage account in college with his student loans and that was how he first entered the market. He used basic fundamentals and general knowledge of what he thought would be a good stock to own to choose where he put his money.
He decided to subscribe to a weekly newsletter that offered trade picks and after trading these for a while (with not much success) Eric decided to continue his search to find a system that worked for him. He struggled to find an education suite that worked for him. After college, he saved up another $3,000 to swing trade but he couldn’t put his finger on proper entry and exit criteria.
After a long YouTube search for helpful info, Eric found ClayTrader and perceived him as an honest person who will shoot straight and tell it like it is. This is when he started to invest in himself via education. The beautiful thing that Eric realized is that once you have learned how to read charts and manage your risk, you are FREE to find trades on your own. You no longer need to seek a ‘guru’ for ‘hot picks.’
As Eric increased his education in terms of risk and options, Eric has found lots of success trading advanced option spreads. He can control his probability of profit and his max loss, all of which are crucial for long term success. A few members have also inspired him to stay mechanical in all his trades instead of style jumping. By no means is he saying that this is the be-all end-all and he always wins but when he is wrong, he is wrong small and it doesn’t take much to recover.
Quotes:
“When I was 15, my dad traded futures and used to tell me that trading in the stock market was dangerous.”
“I noticed every time, what basis did I have for deciding when to buy and when to sell? There was just nothing.”
“I didn’t want to go down the path of watching 1000s of videos and in the end I’m not a better trader. It was a waste of time.”
“My whole life has been cycles of getting into and out of the market.”
“Once you start learning you can come up with your own plays.”
