How you spend money can reveal your inner game

So yesterday’s episode, I was just re-listening to it got me thinking that trading conferences and expos aside, you can really get out of a situation what you want. Right. I mean, that’s “win or lose everyone gets what they want.” So I would say do your thinking ahead of time. Like, what is it that you’re really looking for? And this is the importance of having goals. As you might know, on Fridays, I try to do something that’s goal oriented. As far as the show is concerned, because to me it’s the biggest reason why people fail is that they don’t really know what they’re doing and it’s not because they can’t know. It’s just cuz they didn’t, they don’t put any thought into it.

And you know, I always, when I was growing up, I used to say to myself, if you’re about to go spend something that costs more than like a hundred dollars sit and think about it for a couple of days and really meditate on it. Like, what do you think that you’re getting in exchange for that a hundred dollars? And it was a really good exercise because I could afford it, but it started me thinking like, well what do I get out of it? What do I really want out of it? Right. What do I think that this good or service is going to do for me? And it’s okay if it’s just to give you pleasure, right? We call that Economic Utility and there’s nothing wrong with that. So I would really get that clear on it. Like why would I need more, another guitar?

You know, I have thousand guitars. Why do I need another one? You know I have a 1959 less Paul, why do I need a 1974 one – those types of decisions. And then this way it would help me understand like, am I doing it because of an emotional need? Which oftentimes is the case, is it out of ego? Is it because like most young guys they’re posturing, which is understandable because they have a lot of potential, but they don’t have a lot of success to show for all that potential.

So any little bit of attention that they can get for themselves is boost their self-esteem. I understand that I’m a guy. But this is what I’m getting at. When I say before you go buy that extra monitor that in my opinion, you really don’t need really think about it because I was just reading Twitter the other day. And it was almost as if there was somebody who could have used this show a year ago, was writing out and said, yeah, I’m part of this morning chat group for small caps and this other Jay trader thing and I’m down 75% and I’m taking 5% positions and I’m like, my goodness, 5% positions is very big, but you know, that’s how you live and you learn, you learn by doing of the trading at any rate.

I just felt really bad because I could envision on the person’s Twitter feed, there were multiple monitors and I know the services aren’t for free. And so if this show can give you a moment of pause, I think that’ll help you be a bigger success because you’ll know what you’re doing it for. What is your “why?” It’s typically not to make more money. That seems like, well, that’s the hair trigger response that people say, why do you want to do this? Why do you want to invest? Why do you want to trade it’s to make more money? Well, yes and noI understand it investing. You could say, well, if inflation is moving anywhere over my career it’s been between basically half a percent and 12%.

If you don’t earn whatever the inflation rate is, you’re actually losing purchasing power, right? So you want to make sure to maintain your wealth. If you know inflation’s at 9% and you need to see a 9% rate of return in order to stay as wealthy as you were. Now, that would be the case. Even if you had $50k in the account next year you still have the $50k but it’s worth less, right? So which is the best way for you to kind of compete with inflation, even if it’s going to wane and the Fed’s tightening of the credit and this and that. So if you go to conference or these meetups, it might make you feel good to be part of a community, but realize that that’s probably where it stops. You’d have to do your own research and go enough and then measure the results to see if it had any impact on your trading.

You’re not going to know that until you actually go and do it. But my take has always been, if you want to trade, then just trade because you can overload on the information. You can read another book whenever you feel insecure academically what you can do, but that’s not going to necessarily help you emotionally when you manage risk, it’s going to satisfy an emotion right in the near term that might help you take the first step. But then the second step is what do you do? How do you feel about putting on the risk you see, and there’s no book on planet earth that’s going to help you do in that to help you do that, no matter who it was written by myself included.

And that’s what I mean when I say it’s between you and your higher power. So I don’t some of these trader expos run and put on by friends or I have friends speaking or putting stuff on and I don’t begrudge them. You know, that’s their business model. I just don’t have any need for it myself. So I have to speak from the heart regardless of who this might offend. Because I’m not here to make them happy and I don’t like seeing younger people who probably have limited grubstakes piss away money that they don’t really have or that they can’t afford to lose hoping that they’re going to get something out of a situation that I have a good idea that they’re not going to get yet. They’ll be out the money. So I started thinking like, why do I have all these strong feelings?

And I think it kind of comes down to the way the world works anymore. When I grew up prop trading was, you were so good at what you did. The company gave you money. There was no requirement for you to take their course or to go through any type of process other than to get interviewed. And they would give you a desk. They would give you the money to trade. And the splits were typically 50/50. You didn’t have to come up and deposit your own money. You could trade your own money alongside, but that was extra. And it probably wasn’t on day one. It was after you could prove your mettle. Then typically you had three months. If you couldn’t make money in three months, they lost faith in you and then you were out somewhere else. So a lot of success for those folks came down to timing because if they were long only, and the market was soft, it was very, very difficult.

Very, very few of these folks could be long, short directionally buying and selling different options positions always trying to make money. There’s a handful of people on planet earth who can do that, but not typically on one, you know? So I see a lot of de the emails that I get are out of desperation of people trying to get jobs as traders. Well again, I don’t think the expo road’s going to help you. What will help you is you picking up the phone and calling the people who hire those people. That’s a scary thing, but if you wanted enough, your want and your desire for that particular role will be greater than the fear of not wanting to make the call. So you do it, right?

So again I’m skewed and I’m biased because I don’t seethe prop trading jobs today are not prop trading. To me. It’s just advanced…it’s a new way to look at brokerage, which again, I don’t have any problem with, but call it what it is, you know? And so if that’s why you’re going to these places, I’d say, save your money and do it all by phone. Because going there in person, I don’t think is going to up your chances, not in the short run, maybe like I said yesterday, or the day before, a couple over years, maybe, but in the end you really have to show promise. Like, can you make money?

That’s the number one thing and then like a lot of things in life, it’s about persistence and determination. So if I had to do it all over again, I would save the money and I would spend it in outbound marketing of myself, not going to other people’s marketing events, which is what these things are. These are other people’s marketing events. You should set up your own marketing, set up your own video channel, set up your own blog that talks about what you do and what your process is and how do you achieve your success and then pay for a premium LinkedIn account and reach out to the people that do the hiring because there’s no better way to do it than to go right to the source.

Nothing’s going to change unless you go directly to the source of the people who are doing the hiring. Now in my circumstances, I tried that most of the time I got letters back saying, thank you for your interest in XYZ company, but you are you don’t fit the mold of what we’re looking for. Oftentimes they said I was overqualified and I was like, what the hell is that even mean? So just like George Bernard Shaw said “successful people, aren’t blaming where they are in life because the circumstance they look for the right circumstances that they can plug into. And if they can’t find the ones that they’re looking for, they make their own,” which is what I did. I worked at a big firm, which I hated every day of for three years and three months. And I hated every day, but it was the only way I could get in.

And then after that I went out on my own and I haven’t looked back since, so there was some benefits. But my ideology and my mindset was very, very different from the mindset of the people that I was associated with. So there was a big culture clash. The first one being that they didn’t really give a crap how well the clients did or not. It was, you were judged on how many assets you brought in – net new assets; how many new accounts did you open, and what did you generate in commission and fees? No one really cared about how well the clients performed or not. I don’t know if that’s effectively changed, but nonetheless it gave me an opportunity to really learn from the inside out how the business worked. So I don’t mean to sound cynical, but I’m telling you out of experience what the agendas are, because no one’s doing this stuff for free.

So you have to figure out like, I don’t know what expensive is for you or what affordable is, but what do you think the agenda is for the people that are putting these things on? Right? And if you can’t figure that out, think about what are the sponsors doing there? What do they want out of it? Because they’re not doing it for altruistic purposes. All right. So anyway, I hope that clears things up. Please consider subscribing. I like to get the data. It helps me understand what it is that resonates with you so that I’m not wasting my time in recording stuff that you don’t care about. Because then it’s a waste for everybody. And time is one thing I don’t have enough of. So there will be a day when this show is over… just the way it is. I just don’t have the time and I’m doing things that are important to me right now.

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