Brian McAvoy from Inside Out Trading walks through the first stage of learning to trade, stressing that beginners need to treat it like a business and master the basics before risking real money. He highlights common mistakes new traders make and points to a resource called The Subtle Trap of Trading.
Hi, Brian McAvoy with Inside Out Trading here. And I just wanted to take a brief minute to talk to you about stage one for developing traders, often referred to as phase one traders, where you're fairly new to trading and haven't blown out your account yet or hit like the really big hard loss or hard loss period. It causes you to step back and take a break from your trading and kind of reevaluate your whole perspective on it. First wave traders still have their initial perspective that yes, trading is easy. They should be able to jump right in and make a lot of money. The first stage of trading, if you want to go through the process in a more logical and desirable fashion, first wave trader will take the time to go ahead and get their head around the basics of trading. See, a lot of traders jump in and they try to jump straight to intermediate or advanced trading. They want to get real technical, real fast. Understandable. Most traders are smarter than average, so you're pretty confident in yourself and your abilities. The thing is, there are three things that are really important for a new trader to do. And a lot of people, when they get into trading, because of their confidence and all that's being presented and especially how easy everything is purported to be, they'll skip one of these three parts. And that's what I wanted to share with you today. The three parts that are really important for a first wave trader to make sure that they address are, like I said, getting a handle on the basics of trading. What it's about, what the charts really mean, what the indicators are really telling you and believe it or not, to look for and seek out the mistakes that are common in trading. That's really important for a new trader to do because if you don't make yourself aware of them, you're likely to make those mistakes. And unfortunately, those mistakes all cost money and they're usually in the form of large losses, substantial stuff that's really painful. And if you take a look at what a lot of the trading greats have done is as they've encountered the loss, you know, the mistakes themselves, they will write rules for themselves. So if you get proactive about it and you look for the list of the various mistakes that traders make, at least you'll be aware of them and you can look ahead to how to avoid them, which is really important. The next thing, and again, this is, so to speak, common sense, you'll hear it quite a bit around the trade trading circles is, yes, to treat your trading like a business. Trading is an ongoing activity for profit if you look at buying and selling houses, buying and selling cars, I mean, there are a whole lot of different investment opportunities that people will look into. And if you're doing it on a regular basis, the government even says, well, if you're doing this more than two times a year or five times a year, then you're a dealer. And even the government treats you as a business entity or they want to. And that's reasonable because if it is an ongoing activity for making money, yes, it is a business. And treating it like a business is really important to do. Now, if you've never run a business before, if you've been an employee all your life, your working life, running a business and how to set up your trading as a business can be a bit of a challenge. You haven't done it before. The reason I'm letting you know all these three things is they really are important. I find that a lot of second wave traders will hit that point where, yes, they've hit the point of frustration where they're stepping back and saying, hey, I've got to take a different look at how I'm approaching all this. And they'll wind up realizing that they missed one of those three basic things, especially the treating and trading like a business, how to do that and to actually put it into action. I want to let you know all about this because there are simple truths in trading, but I also have a resource available for you. It's called the Subtle Trap of Trading where it explains, first of all, the mental and emotional trap that people fall into very commonly when they get into trading. And then how to address the other three things that I was talking about. Getting the basics down, the basics that you need, some of the real fundamental things, how to treat your trading like a business. How to actually do that, though, I mean, it sounds good to say, yeah, do it, but I actually give you kind of a blueprint on how to do that. And then of course, the mistakes that traders make, I'll also give you a list of 39 different mistakes that are quite common in trading. And by being aware of them, you can avoid those mistakes and put preventive measures in place so that you won't make them as good to say, yeah, do it, but I actually give you kind of a blueprint on how to do that. And then of course, the mistakes the traders make, I also give you a list of 39 different mistakes that are quite common in trading. And by being aware of them, you can avoid those mistakes and put preventive measures in place so that you won't make them and you can avoid the losses that come with them. So just wanted to let you know about these things. You can swing by insideouttrading.com that's my main website. And check out the subtletraps trading. It's a very good resource. Got a lot of good feedback on it. It's been reviewed by brokers, experts and professional veteran traders in the industry and a lot of individuals. So it is on the money. And like I said, I actually wrote that for first wave traders and beginners. But I've been surprised that most of my clients for that book are second wave traders, people who've been trading for anywhere from two to 15 years. And they say, yeah, this really helped put me on track, which is exactly what it's there for. So swing on by Insideouttrading.com got another introductory video for you there. I'm here to help Brian McAvoy with InsideOutTrading.com Cheers.
