Today, I want to share a few life changing trading tips that I wished someone had shared with me early on in my trading career or when I first started to get involved in this fantastic world of finances and trading…
Maybe tapping me on the shoulder and saying, “hey Lance, you’re doing this wrong or here’s how you can improve.”
So, let’s get started…
1. Controlling the Emotions
One thing that no one – and I mean no one, can prepare you for is the emotional rollercoaster that is the world of trading.
I’ve blown out accounts, I’ve taken the stress home with me…
I thought my ego could move the markets and I thought that I could be right all the time.
However, the markets will humble you… they have no emotions and they have no fears, but as human beings, we have emotions and fear no matter who we are.
And at times, the markets are going to get to you.
Early on in my career, if I was down money or on a down streak, fear and stress would get to me.
On the other hand, when I was running well, I’d be the happiest person in the world.
Now, you’re probably wondering how I learned to control the emotions involved in trading, which leads us directly to my next point.
2. Finding the Right Mentor
In order to control my emotions… it took finding the right mentor – not just to say “here’s a trade, here’s where you should buy, or here’s where you sell”, but to tap me on the shoulder when everything seems perfect.
In other words, when you’re running well – when everything seems to be perfect, no one’s going to grab you and tell you to scale down or watch yourself because at any moment of time you could be knocked right back to the bottom.
It’s a humbling experience when you’re at the bottom looking up.
Early on, I was extremely blessed to have a mentor, a gentleman by the name of Ron, take me under his wing. Ron had a niche where he could beat out so much money but still be in the trade.
Now, your ego is your biggest downfall. You don’t always have to be right. Admit your mistakes and admit when you’re wrong.
It’s not easy to do, but before the end of the day – before that closing bell, ask yourself… Am I happy? Am I satisfied with my positions?
If the answer is no, then change them. You’re in control and that’s exactly why you entered the world of trading.
And if it takes someone else to open your eyes or give you a different point of view, then that person is worth it.
Now, what happens when there’s overnight China news, a precious metal spike, or even currency devaluation? What are you going to do?
If you don’t have a mentor, is someone going to bring that to your attention?
3. Scaling Down
Another point I want to discuss is scaling down or reducing risk.
Of course, you’re going to hear about these traders that’ve made millions of dollars on a position with leverage out the wazoo.
Sure, that sounds great in a video or as a headline, but how many of those trades went against them? Maybe they have that one decent trade, but ten losers out there.
Now, ask yourself this… at the end of the day – after you’ve scaled down, are you comfortable?
If I had to wrap it up here and leave you with one piece of advice, I would tell you to control your ego, get your emotions in check, find a mentor – and not just for trade alerts, and lastly… enjoy yourself.
That’s how trading should be and if you start doing all of these things, your P&L (Profit and Loss) will thank you.
I hope this article is helpful to all my beginner traders out there, or even the most experienced, and I look forward to chatting with you all again.
The Future of Wealth
P.S. If you enjoyed today’s topic, then check out my video explaining the first trade I ever took in Yamana Gold (AUY) by tapping on the button below.