Profitable Trading - The Psychology of Money

Hi, Brian McAvoy here with Inside Out Trading Today. This week I'm traveling, so it's been, you know, that's why you got the different background. You don't see my normal blue chart that's up there. But today we're going to talk about something that's actually really super important. A good reminder for everybody, while I've been traveling, I've been listening to the book Psychology of Money, and it's not what I expected. I, I do highly recommend that you check it out. I don't agree with 100 of everything that's in there, but he does make some really excellent points. Again, things that would be worthwhile. And he does speak to trader traders, including like Jesse Livermore and a couple others. But a couple of the things that he brings up that are worth paying attention to as a trader and you need to, you need to keep these kind of in your awareness at all times. But the first one is the name of the game is survival. If you're, if you don't survive, you're not going to be around for the big paydays when they come. And he talks about how, you know, a lot of legends, they made their fortunes in a very short period of time. He refers to them as long tail events. Long tail being on, you know, the distribution curve, the stuff that's out, the outlier events. And he, A few of the things that he talks about in the book that you can incorporate into your trading is like margin of safety and getting, getting what you're doing to the point that your risk of failure is almost zero while you still have the possibility of gain. He also talks about, you know, understanding luck versus risk and how they're very intertwined and really it's important to keep them in mind with your trading for how you treat yourself. One of the things that he talks about in the book a lot is how you, how you address yourself and whether or not you're hard on yourself with compassionate understanding and understanding the realities of the world and how sometimes, yeah, you can do everything right and still fail. Other times you can do everything wrong and still win and how to deal with these things psychologically. So it's been a pretty interesting read. But the one, the main thing that I like to see really stresses, you know, the whole bit about survival and really the key to, you know, long term success and even success in the short term. Anybody can make money, but the whole trick is keeping it once you've made it. And he talks about lifestyle changes, attitudes about money, talks about, you Know, being rich versus wealthy and that kind of stuff. And so I really do strongly recommend the book. It's called Psychology of Money. And if you want to listen to it on audible, it's good, listen a little lengthy. I mean the book could be a little bit shorter, but you can play it, you know, one and a quarter, one and a half times speed, which is cool. Yeah, I highly recommend that you check it out. He's talking about Psychology of Money, totally applicable to traders and you will pick up some good nuggets out of it. So that's what, that's what I recommend you pick up this week. You know, just. And the other thing is, you know, as a trader you don't want to just be learning new strategies or you know, studying the market. That is part of it. But don't limit yourself to that. Make sure that you're always, you know, learning and studying about yourself so that you develop and grow as a trader with your, not only, you know, your understanding, but your skills. Because the better you become as a trader, the more capable you become as a trader, the broader your understanding of things as a trader, the better, the easier it will get. And the better you'll do, the more likely you are to survive and hit those good paydays and also just make money on a regular basis and not do the things that are going to hurt your account. So make sure that you're always in learning mode. There's tons to learn. This is a huge field. It's always growing and developing. There's always something new going on within the field itself, not just the markets, but within the field itself. So you know, again, make sure that you're always in, you know, self development mode. Learning about yourself, keeping your self awareness high, being honest with yourself. And you know, these things will pay you well in your account and just in your enjoyment and success level with your trading. So I hope this has been helpful. If it has, go and subscribe to the channel. Give me a like down below. And if you have friends you trade, you know, share with, share this with them. These are videos that I publish every week and it's all about, you know, how to become a successful trader. So it's really important that you know, you really do. You have to focus on you. You're the most important part of your trading and you know, do you need a good strategy? Of course you do, but you're the most important part. If, if you're bringing your A game, your odds are in your favor. If you're not, odds are against you so always be paying attention to yourself. Anyway, share this with friends, subscribe like, and I hope you have a great week. Talk to you soon. Cheers.