Where to get the best trading education

So following on from yesterday, I guess in a, in a, in a way you can say that you don’t wanna major in minor details, you wanna focus on the three things that actually make you money. Uh, you know, I don’t believe in, in reading thousands of books on trading, I don’t think, first of all, I think if any of the damn books were good, we wouldn’t need 75 new books every week on trading. Cuz the, you know, everything that’s been said has been said, so you need to put some money to work and feel your feelings about, you know, having made those decisions and you know, making and losing money. So you, you, until you have to dissociate yourself with the money, it’s not a, it’s not your grub stake for trading. Isn’t gonna be used for like a house it’s your trading capital.

And so, you know, when you separate that, it’s a big emotional relief, right? Because that’s basically, it’s like going to a video game store and that’s your role of quarters, right? It’s just your ammunition to put at the market and what you lose by trying a new strategy or starting to trade even for the first time is really, you know, there for you to make your mistakes so that you can learn a lot of people like myself, we refer to that as your tuition and you can’t kind of paper trade your way through your tuition. And then think that you’re gonna be absolved from that by trading real money. I know people think like it’s helpful and this and that. And what I will say about it is this it’ll help you. It will help you understand perhaps how to run or make order entries on that particular trading platform.

But because you’re not making or losing any money, real money, you don’t feel the feelings that you would get by doing that with real money. And that’s a huge part of trading is being able to feel good about making money and not getting into hubris and then either over trading or trading with too much leverage and just staying grounded. It also means not being destabilized because you took a big loss or 10 losses in a row. The whole point is to help you calibrate your system so that you could be at the zero point and be kind of PLA placated. So that you’re at the point where all you really do is follow your rules and making money and losing money from that system is incidental. That’s the after effect, right? It’s like inflation. Inflation is in higher prices. That’s the, that’s the effect of inflation, right? Inflation is monetary. It’s the print inflating of the currency. It’s the printing of the money. What can, what you can see from that process

Are higher prices for goods and services. So likewise, when you trade, you put real capital to work by following a strict set of rules with which you’re compatible and the outcome of those rules is either making or losing money. So then you gotta get comfortable with the levels. How frequently do you make? And what’s the magnitude of the winner compared to how frequently do you lose? And what’s the magnitude of the loser, right? You need to get that. And the only way you can get it is from real trading because otherwise you’re not gonna know what it feels like. I know people have been paper trading five years and I’m like, okay, it’s better than playing candy crush, you know, or donkey Kong or he, you know, Teris, you know, cuz that’s really what it is at that point. There’s no risk, it’s a form of entertainment.

Like let me see what I can do. And again, that goes for the folks who have tens of millions or more is, you know, they wanna sit, sit back and be comfortable. I get that. But being comfortable does not mean making progress. And so if your goal isn’t to make progress, that’s okay too. But to me you’re either growing or you’re dying, right? That’s the paradigm I live in. So anyway, just more food for thought, as you’re going through this, especially with the markets being soft, you know, you always have to be testing your ideas, you know, stop thinking and do, and I would absolutely test ideas. So for example, if you have strong, fundamental opinions about things, we’ll test those ideas, right? You wanna try to trade stocks long in a market where they could be tightening credit, perfect run, do your back tests and run it through, say whatever it was. 94 when we were in a midterm year like this year and the fed tightened credit, I think six times. So see how running long only strategy worked in that period of time. Okay. All right, folks giving you enough to chew on for today. Thanks for being here.

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Don’t major in minor details

So I was talking with someone over the weekend and they were like, man, you know, I’m doing all this work and I’m not, I’m just not making any progress. And I can really identify with that. You know, when I grew up, it was working class and I basically had to do everything. And so how do you basically learn to, you know, monitor your own behavior? If you had the upbringing that I did, you might find that, you know, it’s kind of labor intensive and you’re used to kind of getting stuff done and forget stuff done. You’d get paid, but this is a different type of execution because there’s a quality to it. So point I’m trying to make is you might have a long list of things to do on your day that you’re gonna execute on, but how do you know that any of ’em make you money?

Because if you haven’t made money, you can go back and reverse engineer and say, okay, all this stuff feels good to do. And it gives me a sense of accomplishment, but don’t make that your goal, the goal is to make money, not to get things accomplished. So you have to be super clear about what the tasks are that find their way onto your to-do list. Some of those things might actually just be there because they feel good and you’re avoiding the harder work, like picking up the phone and asking people for money to trade, um, trying a new trading strategy with real money, right? All of those things have real feelings attached to them and you might actually be avoiding those tra those feelings by doing things that feel better. But, you know, I don’t wanna sound this way, but you’re kidding yourself. Right? And thinking probably you can probably figure that out for yourself.

So you don’t wanna kind of tie up your day with all these activities that don’t really help you trade better. The only thing you can really do to help yourself trade better is to trade and learn from the process. Give you a great example, reading books on trading. I’m gonna say it this way. It’s a waste of time. It might give you insight for things to test, but ultimately you have to, whatever you’re reading about, you have to go and apply. You have to go trade because that’s the only way you can calibrate your system in managing risk, your system being, how do you feel about making and losing money? That’s much more powerful as many, many, many magnitudes, more important than any tactic. Most of the folks like to read, they wanna learn stuff. Why? Well, cuz it feels good, but sooner or later, as they say you have to shit or get off the pot. So that this is true for whether you’re, you know, starting out with a couple thousand bucks or if you have a couple million bucks, you know, you have to, you have to take the action, uh, reading research kind of interesting, but again, it doesn’t help you trade better because ultimately you gotta shave your own

Face in morning, so to speak. And so what other people think about things is really irrelevant. Of course, if you like to kill your day by reading research that you can get on, you know, get on the phone or chat with people and debate the points. That’s great. I don’t feel any emotional need or that was economic utility in debating people. I don’t care about being right. You know, and other people’s opinions are not really important to me cuz I’ve just put myself in a spot where I don’t need them. Interesting. Not really. I say that to be polite if I’m speaking with them, like, Hey, that’s very interesting. And then I walk away. Right? And I didn’t event that tactic, but I do it all the time. Hey, what do I think of this? About the gold market? Oh wow. That’s really interesting.

And then I walk away without saying goodbye case in point, most of this is retail stuff. Um, and people parroting things that they’ve heard or read elsewhere and it’s not even original thought. So why would I need this person to be a conduit of something? Right. I have everything that I need. I don’t need someone trying to posture up and say something like, Hey man, you gotta buy and hold can’t time the market. Okay. If it doesn’t fit, you must acquit. Then people don’t even understand what they’re saying, but they say it. So matter of factly as if they’ve invented it. So you can save yourself all this time and effort by not even engaging that and turning it off and doing your own work as much as you might not wanna face the truth. The only way you’re gonna get better at trading is by doing trading.

I can provide you all the insight in the world. And that’s what I try to do on, on certainly how to sidestep losses and not make the about 5 million mistakes that I made, which I don’t regret. Cuz that helped shaped me into what I was remember. We said about, you know, the, the statue of David David was already in the stone. All Michael Angelo had to do was to set him free. So you have to do that with yourself. And unfortunately you’re gonna have to face your feelings. It’s never gonna be a good time to start so that you might as well start today. In other words, there is no perfect moment. There’s no one extra book. There’s no one other person to follow. There’s not, you know, another course to take, you know, stop being a spectator and get down on the court, be the main, you know, be the lead actor in your own movie, don’t be a supporting role.

You know what I’m saying? So anyway, that’s it, you know, um, you’re getting some good feedback on YouTube. I still really don’t have a big audience over there just cuz I don’t work it anyway. We’re there on YouTube. We’re there on Stitcher and, and Spotify. Um, and some other podcasting platforms. So please consider subscribing and uh, give us your feedback. That would be very helpful so that I know what to talk about ever so briefly. And if you are new to the show, thanks for being here, please, uh, help yourself to the audio book version of my book, the inner voice trading. You can get it for free at Martin Chronicle and I will see you tomorrow.

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