Trading Psychology - Huge Pitfall of the Low Barrier

Hi, Brian McAvoy here with Inside Out Trading. And today's a fun talk, but it's also really important because we're going to talk about one of the big pitfalls that, that a lot of people, it's really easy to overlook when you first get into trading, but it really affects you long term. Here's what I'm talking about. I was on the line talking with one of my clients the other day, and we were talking about the great things about trading. There are a lot of qualities as far as the business of trading. There are a lot of qualities that make it such an excellent business to get into. One of them is that it doesn't take tons of money and time to get into this business compared to other businesses. Say you want to open a restaurant. Well, you open a restaurant, you're looking at from the time you decide you want to to the time that you're going to be able to open your doors and start making money. It's going to be probably several hundred thousand dollars, maybe a million dollars or more just to get the building ready for customers. Plus, you have to bring people in for training. So you have all this time to get everything in place before you ever get to make $1. With almost any other business, there is a much higher barrier to entry than with trading. With. With trading, there's almost zero barrier to entry. From the time you choose to be a trader, you can be trading live, literally within minutes, hours at the most. All you have to do is get online, fill out the paperwork, call the broker, fund your account, and you can be going. It's one of the lowest barriers to entry business there is. It's just amazing. It's also a problem too, though, because, see, with any other business, because you have that barrier to entry, they have that higher capital requirement, time, investment. It forces you to slow down and think the matter through and look for the potential problems and possible mistakes and points of waste and just pitfalls. It forces you to think the whole thing through and foresee as many problems as possible and attend to them ahead of time. With trading, no, like I said, you can just jump in and bam, you're trading. And the problem with that is, and because you're not forced to slow down and most traders aren't, and really nobody's incentivized to slow you down. I mean, brokers, they're only making money if you're trading. People selling systems, they don't want you to slow down and plan out your business. They want to sell you the system and get you busy. That's how they're making their money. So there's nobody incentivized to slow you down and say, hey, no, think this through. And that works to your detriment. Here's what happens. You jump in, you're brand new to trading, you get busy, and all of a sudden you're establishing all sorts of horrible mental and emotional patterns and response patterns and habits and perspectives and beliefs because you're getting busy and you're doing, you're experiencing under bad conditions, the pitfall of that. I mean, not only are you jumping into it and you don't have a plan, that's like the biggest thing. You're jumping into it with inadequate training. Nobody's taught you this is a business and this is how you treat it, like a business. So you also have the wrong mindset. And it's just horrible for you because now all those things work to your disadvantage because you get busy. Lacking those things, what becomes normal. Trading for you is horrible trading. It's just the worst way to go about it. Now here's the good news. Even if you've been at it for say, 2, 4, 5, 6, 8, 10 years, it doesn't matter how long. Just because there's been all sorts of stuff established that works against you, that doesn't mean that you can't stop and undo the bad stuff and start down the right path. You can, I do it with people all the time. And it is a neat thing because if you just jump into it, you have to learn things the hard way. You're not looking ahead for seeing the problems. I mean, you just wind up getting punished for not knowing what you're doing, not being adequately trained, not having all the skills and perspectives and understandings that you need. You're getting punished for that. And you're also getting punished for the mistakes that you're making, the errors in judgment, the mistakes that you make because you don't know better, all that kind of stuff. The market is just going to keep slapping you down and punishing you for all these things that you're lacking. And it just sucks because the market, it's not going to tell you what you're doing wrong. It just says, oh, there's another mistake, Wham. There's another dash to your confidence and another loss to your account until you just figure it out from the pain, what you're doing wrong and what you need to do right. The market is just going to keep punishing you. For years, I have people coming to me and they've been Trading. And they've had the longest that I can recall at the moment. 14 years this guy had been trading, never had a profitable year. 14 years he'd been doing this, never had a profitable year. This is what I want to save you from, is the years of just punishment and bad experience. You've got better things to do with your life. Life is too short for this. But when you slow down and you can think the matter through and you're guided through the process of how to think it through, what to look at, what to think about, it allows you to foresee so many of the problems and forego them. You don't have to go experience them and get punished for the errors in judgment through losses and loss of confidence and the personal beating that you take. That's the greatest thing about it. Also, it saves you tons of time. Oh, my God. Instead of having to go through and figure out everything by trial and error, like I said, getting punished with mistakes. And the markets aren't going to tell you what you're doing wrong. They're just going to tell you that you're doing something wrong. And they're telling you by punishing you, hurting you. No, like I said, when you have a process and you can think it through, you can put together a proper plan. You can attend to what you need to attend to, both technically and personally and professionally from a training standpoint, making sure you have all the right skills and stuff. Then you can actually have an operation where instead of you're just practicing more bad emotional trading. Now you've got focus, you're organized, you know what to expect both today and next week and next month and for the coming year. And there aren't any big bad surprises. And the things that may happen, you've already thought them through. So if something does happen, it doesn't freak you out, it's cool. I mean, it just settles everything down. It takes all the anxiety and fear out of it. Like I said, it also saves you tons and tons and tons of waste. Like I said, the low barrier to entry. Wonderful in one regard, absolutely dreadful in another because it lets you jump in and establish everything wrong. If that happened to you, don't feel bad. It happens to a lot. It happened to me. I totally underestimated it. Jumped in, bam. I had to take my beating. But that's okay. It's never too late to stop and say, all right, let's take a different course of action. It's cool, and I'd love to help you with it if you'd like. To find out more about what I'm talking about, how to treat your trading as a business and that kind of stuff, click on the link below and you can find out more about the program that I've got. I consult with small businesses have for 20 years. I've been helping traders for over 10 years. I've got this tweaked down to a process. It works real well. I'm also a trained trainer. So as far as training you on this process so you understand how to get your business, business organized, get yourself organized, all that kind of stuff. It's customized for trading, but you can also apply it to any other business that you might want to start up. So this is a lifelong skill that you're picking up. Anyway, enough about that. Go check it out. Click the link below. Go check out the program. It's really cool. You'll like it. You'll see how it works for you and it will benefit you massively in your trading. It will save you tons of time and headaches and aggravation and personal anguish. I know what that's like. That's why I'm here to help you, is because I want to help you avoid all the anguish and grief and heartache that can be in the trading. And it doesn't have to be. You just need some good guidance and some good help from somebody who actually gets it and understands what's going on. That's why I want to help you. Click the link below. We'll see you on the inside. Cheers. Oh, wait. Hey, if you enjoyed this video, I'd appreciate it. Pay it forward, share it with your friends. If you found benefit, great. You'll be helping them out too. We'll see you on the inside. Cheers.