Obstacles are part of life

It’s important to have obstacles and challenges when you’re learning something new. Hockey and soccer wouldn’t be interesting games unless the players had challenges to overcome.

You’re going to fall down, maybe even scrape your knee when you’re learning a new sport. The same is true when learning something new, like trading stocks. You’ll fall down and have some failures before you’re able to be successful.

Obstacles will come your way. If you can recognize or foresee what struggles you might have in the future, you may be able to push further past those obstacles.

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Here's a question for you: How long does it take for you to purchase a vehicle?

Let's say I am buying your favorite ice cream – something that doesn't cost more than $5. Chances are, you take more time deciding to purchase a vehicle (compared to the ice cream), because it costs so much more.

You also don't understand the purchase as much. It isn't a ‘repeatable' purchase, because the car is new – new technology, new gimmicks, etc.

On the flip side, purchasing ice cream for less than $5 is a short process because it is something you're familiar with. It's a 'consumable' good that you are just looking to restock. The whole decision process could take you less than 10 seconds.

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There are risks to everything you do. For example, where you choose to live...

If you choose to live in Florida, you may be taking the risk of getting your house blown down by a hurricane. On the flip side, if you choose to live in California, you may have earthquake risks.

However, that doesn't stop 38 million people from living there! The point is: there are risks to everything you do – whether it be choosing where to live or trading in the stock market.

Trade Risk

A trade risk is what you put on the trade. For example, if you put $1000 on a trade, that is your trade risk.

Market Risk

The market risk is different from the trade risk. The market risk describes what can happen to the market.

For example, a war may break out in Greece or Spain. Or there may be a catastrophic event that affects the debt ceiling. Something that happens to the global economy, your current country, etc. all represents the market risk...

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Hey! Its Sasha Evdakov founder of Rise2Learn and in this video episode I want to talk to you about the famous phrase of Why 90 Percent of Stock Traders Lose Money.

There are a few different reasons why this statement came about. One of the reasons is that people think very directional or they focus very much on what they think and they stick to it they won’t change their mind, they won't go up out of their comfort zone.

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What can I do?

If you’re new to trading on the market, it’s easy to hit a plateau in your learning. I recommend finding a mentor – someone you can relate to that has more experience in trading than you do. Find someone that has a trading style and philosophy that is similar to the kind you want for yourself – then hone in on that person and learn to emulate them.

Finding a trading mentor can be challenging since there are so many different styles and types of trading. A good mentor will help you condense your learning process – they can spot your plateaus and misconceptions and help you correct your path.

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I want to share 7 key tips on how to trade better and how to take your trading to the next level to make you think a little differently.

Have an Open Mind

Have an open mind when you're trading. There isn't just one way to make money in the stock market. Many people think you just buy low and sell high. This is the technical mentality, but that's the speculative version of trading. Understand there's more than that. You can sell things short (meaning you sell high and buy it back low), but of course this is a more intermediate concept…

There's also forex, commodities, and options. With options you can trade so many ways: option spreads from iron condors, to butterflies, to calendar spreads which are some of the things I like to do with my own retirement account.

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Twitter IPO release

If you haven’t already heard, the Twitter IPO (TWTR) was released today. Unfortunately, it is a little harder to get in, unless you’re willing to pay a premium. I say “premium” because everyone is looking to dump their shares on to you.

Individual traders, young and old, get sucked into these initial public offerings (IPOs) because of all the hype. I want you to think like a professional trader and think like the company: the initial investors are mostly looking to dump the shares they bought to people like you. The initial investors are looking to capitalize on what they have invested over the past few years.

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Is a training mentor necessary for success?

The short answer?  It’s up to you. Working with a mentor/coach can help push you to the next level.  Your mentor will know where you need to go next to continue on your road to success. When you’re a beginner trader, it can be hard to tell what the next step is.

Having a mentor can help you overcome any plateaus you encounter in your learning process. A mentor can help you learn more quickly since they have the experience to guide you through new concepts.

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Independent trader vs. stock broker

I received a client question recently asking if they should become a broker first and then become an independent trader.  Their goal was to one day become a successful independent trader.

Typically, when you’re a stock broker, you’re more of a salesperson. You’re the one answering the phone and executing trades for others. Just because you’re executing a trade someone has asked you to place, doesn’t mean you understand why they are placing that trade now or any of the other thought processes going into that order.

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