Growing into a Profitable Trader
September 18th, 2019
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July 20th, 2017
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Today I want to share with you how you can learn to trade in the most optimal way.
- Now, what do I mean by this?
I mean how can you learn to trade very fast and how can you get to that destination from point A to point B as quick as possible.
- How do you get there?
Notice I said most optimally. That means without a lot of bouncing around and without a lot of sway and moving away from your objective.
Trading - The Right Way
If you look at any destination, the quickest distance between two points is a straight line. Now for many people the distance that they go from A to B it's something like this.
That is the case every single time. It doesn't matter if you're building a business, working out or trying to lose weight. Or something else.
The line is the process. We get closer, we bypass things, and then we finally connect the dots. I mean we eventually get there. When you look at the total distance that you have to cover in that case is much longer.
There is a lot of problems to get to your final destination or where you want to be. And then, even when you get there, you're still looking to maintain your strategy for trading stocks and improve that. You always continue to chisel things out and make it more efficient.
Ideally, we want the A to B motion. That's how we want to learn the trade. We want to start at point A and continue doing what you need to do.
It requires a couple of steps. Here you have four or five from actions. And as you go through these different steps "boom," you get to point B. And you're done, and you've learned how to trade.
That's not always the case. The way that most people go through learning to trade is they go from point A then they go to point B. Then they go to point C, D, E. You go to F, G and then finally your point B becomes point H.
Because this is what reality is:
- at point B - it might have been reading some books
- at point C - it could have been some courses
We use this also in business as an example because it's like playing golf. When you're playing golf, the same same thing occurs.
When you're looking to get the ball in the hole, the principle is the same. You go from one point to another — step by step. You might get in the sand. You might go back as well. At least in business. I hope you're not that bad in golf.
Sometimes things do go, and then you'll get a little closer. And finally, you get the ball in the hole. Now, when it comes to business, there are a lot more steps — the same thing in stock trading. There's going to be plenty of steps.
What Is The Quickest Way to Get from A to B?
The fastest way to get there is through coaching and mentorship. If you have a coach that's the quickest distance to get from point A to point B. Coaching is not usually the cheapest form. Notice I didn't say - the most cost-effective way to get from point A to point B.
But it is one of the more optimal ways to get there. It saves you a great deal of time. You could go alone and meandering around and get eventually to your destination. But it's going to cost you in your time and energy.
You'll have to read probably a lot more books and probably have to study a lot more courses on your own. And the puzzle pieces together. It doesn't mean you can't get there; it's not as effective as coaching. The main reason is that mentoring does that for you. It's more of a direct path.
Now, even with mentorship you still might not be there in a straight line. But it might give you a little bit fewer variations when it comes to moving in the wrong direction.
You might do a few things that are a little bit different. And you go a little bit in another direction. But you're moving in that direction.
On the other hand, if you want to do it all alone, it's a lot more back and forth.
It's a lot more:
- figuring things out
- trying different things
- seeing yourself from that up outer perspective
- figuring puzzle piece out
That's what you need to do to get to your destination. You need to be able to see yourself from that outer perspective and make those decisions of what to do next.
Whereas when you have a coach, they're already looking at you from an outside perspective. They're saying do this or do that. And it might be uncomfortable for you. Maybe the thing that you do right here is not exactly what your end goal. However, it will get you to your end goal.
Difference Between a Coach and a Mentor
A lot of people don't understand what the difference between a coach and a mentor is.
What does a Coach do?
A coach typically is there to motivate you. He is there to showcase - do this, do that. He is giving you a step-by-step process.
His idea is to give show you the process, but also he is there to motivate you. This is all good. You have football coaches, soccer coaches. They're great in the public field.
What does a Mentor do?
When you get into more mentoring, this is where I ultimately switch the mindset when I started dealing with people one on one. We take them from coaching into more mentorship.
When you mentor someone, it's not necessary to constantly motivate them. I don't want to be the one who is motivating you all the time.
For Example - Football coach
Your football coach might be the one to pick up the phone and give you a call and say:
"Hey wake up buddy! Time to get up. We need to work out".
They're there to motivate you and be on your back all the time.
A mentorship is there to look out for you. He's looking and saying read these ten books. Once you're done reading these ten books get back to me.
The next step would be put on these trades with three shares.
You might say: "But I'm going to be losing commissions."
Yeah, okay. You'll lose on commissions but how much money are you going to lose with three shares. Think about it that way.
Once you've done that, we discussed the issues and then you might need to do this next step. That's what the mentorship does.
That's what I do. I guide people through the process to get them to their destination. Sometimes people think they know where they want to go. However, that's not always the case.
Some people don't understand that. When you read books, when you do courses, sometimes those things can play a trick on you.
You think you want to go to that place, but in reality, you need to be going somewhere a little bit different. Keep that in mind.
Pro tip: The quickest distance to learning quickly to getting to your end destination of trading successfully is mentorship or coaching.
Those are the things that will move you the quickest. But they aren't always the cheapest.
Cost-effective Ways to Learn How to Trade?
If we look at cost-effective ways to learn how to trade profitably, I like to look at things in terms of a spectrum.
There are two distances. It could be zero to ten. It could be moving from one color to the next. It's spread out in the distance.
Let's say on the left side of the spectrum it's free. Then on the right side, it's the highest most expensive training that you could get. Or education that you could get.
Between this, you have a lot of variations.
On the free side or somewhere cheap we have:
- web or internet articles ($0)
- videos ($0)
- books ($15)
- membership ($30)
Further down to the more expensive area you have:
- courses ($200-$1,000)
- a bit expensive membership type
- events ($2,000-$5,000)
- coaching/mentoring ($2,000-$150,000)
This is our spectrum. This is our range, and this isn't everything.
Why do these things scale and value like this?
Well, remember with web articles when you write one you can reach millions of people. If you're looking at it in terms of a pyramid we look at a sheer amount of people. Articles and videos are at the bottom of the pyramid.
The most amount of people will skim on those or hit those articles, videos. As you get into books, there's going to be fewer people that buy the books than there is that look at the videos or the articles.
That's the case because it costs something and not to mention the amount of material that's there. It's, and not everybody's looking to get into something as in-depth or detailed. Think of all the little kids that start soccer or hockey and then eventually quit. And there's very few that become professional soccer players or hockey players.
And that's what happens. Let's say we go into courses. Some people probably want courses than books. Then you might get into events or mentoring at the top.
Keep in mind when you write an article or create a video you can hit a lot of people. The production time once you do it once it hits a lot of people.
Same thing with the books, but there are costs involved:
- cover design
When it comes to courses and events, there are even more costs.
As you continue to move up this ladder, the cost goes up. It goes up for you as a consumer and for a person that's creating it. If you want to get to that destination, it's more expensive.
One-on-One Mentoring - How it Works?
When you're looking for one-on-one or even group coaching sessions you can only handle so many people at once.
If I'm doing a one-on-one session that one hour is dedicated specifically for that one person. That attention is for that one person. Once I've done my attention we've spent that time that - the time is gone.
Whereas if I wrote a book and I spent my time on a book I could sell hundreds of thousands of copies or millions of copies.
I could do it for many years to come. This is why with coaching and mentorship it is the most expensive.
Pro tip: This is the highest and most expensive. But when you start looking at this spectrum remember this is also the fastest way or the most efficient way to learn.
That way you're moving the focus directly on you. And you don't need to focus maybe and read all these articles.
And all the time that you'll waste spending time on reading articles or reading books you might not need to do all of that exactly.
My Recommendation - This Is The Best Way
I recommend a combination. It's crucial you start combining things.
You might decide this month something like this:
- read three books
- then do one course
- one mentoring session
You do a combination.
Then next month you might:
- do more videos
- read another couple of books
- skip mentoring session
The third month you may want to try this:
- use everything you've read so far
- implement everything from the videos
- use another mentoring session
That's the way you can balance things out. The bottom line is if you have someone that's sitting there, watching you and working with you one-on-one that is the fastest way. However, it's not the cheapest.
I suppose you don't want to waste your time doing certain things. This is the most efficient way of doing things correctly.
Can You Still Get to Your Destination Using Free Way?
Yeah, that's pretty much how I did. But it took me a lot longer than other people. Maybe that was because I was silly. The other thing is perhaps because I thought I knew better.
It could also be because back then when I first started:
- there was no YouTube
- there were not as many articles
- the internet was still had a Lycos and AOL search
And a lot of other things were still ancient online. Nowadays there's so much more information available online. So much that it's saturated and you can filter things in. But you have a wide array of things that you can go and grab information from.
You can learn from it. It allows you to smooth your road out a little bit. It will enable you to make that distance a lot shorter for yourself.
If we use this yellow line as ten years - by you doing web articles videos and books. You can add in a course, a membership, event or a coaching session. That way you could compress this to seven years. It can give you a big eye-opener and save you three years of your life.
In those three years, you could also save some money because you don't need to buy as many books. You might not need to buy as many courses or read as many articles. There's a lot of other benefits to it.
Always look at compressing things. The fastest way to do it, the most efficient way to do it is through coaching. It's a little more expensive through these mentorship programs. But if you want to go the free route if you don't need a lot of money. Maybe you want to do it slowly, and that's okay.
There's nothing wrong with that, but understand it'll take you a little bit longer. But you'll do it through web articles, videos, ebooks and then eventually as you attain more funds you can invest in some more expensive and faster ways.
It's all about opening up your mind. You have to understand that it's all about compressing that distance.
How do you do it?
Well, one-on-one is the fastest way. You could do web articles and videos that are also pretty good. A lot of the free material it'll still get you there. It'll take a little bit longer.
Whereas courses have everything in one place:
- learning how to risk manage
You have it all in one spot. There's no need for you to hunt for those videos. You don't have to search around. It's all there - compressed and ready to go.
In either case that's the big picture when it comes to learning how to trade stocks. That's how you get to your end destination the fastest and get consistency. You want to balance those things out depending on your situation, on the time, energy and money that you have.
Balance it out, and you'll be able to compress your time from ten years to maybe seven years. Or from seven years to maybe four years. Shut off some years off of that timeline.
August 11th, 2016
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Hey, this is Sasha Evdakov and welcome to another episode of let’s talk stock, episode 97.
In this episode, I’d like to share with you a fundamental concept, a significant action for you to be successful in trading. It is one of the more important things that you need to do to be successful, and it is a very simple concept, but it is tough to do. And that concept is proper thinking but more importantly it’s all about thinking.
May 26th, 2016
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Hey, this is Sasha Evdakov, and thanks for joining me here for another episode of let’s talk stocks.
This lesson is going to cover the two methods of getting results or staying profitable in the stock market. But before that, I want to say that there are two main ways. There is a convergent way and a divergent way, which we’ll talk about in a second.
March 31st, 2016
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Hey this is Sasha Evdakov and welcome to another episode of let’s talk stocks.
In this episode, I’d like to really concentrate on what your focus should be when trading. What should be your focus when you get in the trade, what should be your focus when you’re choosing a stock. What should be your focus when you are in it, when you’re actually in the position. What should be your focus when you get out of the trade.
February 25th, 2016
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Hey this is Sasha Evdakov and thanks for joining me here at tradersfly.com, where I share with you insight about trading, investing and the stock market.
In this video, what I’d like to do is share with you something a little bit different. It’s really about sharing my personal story.
December 8th, 2015
Hey it’s Sasha Evdakov and welcome to Tradersfly.com where I share with you some insight about trading, investing and the stock market.
In order to wrap up the 2015 year, one of the things that I’d like to share with you is just seven key lessons that you can learn from this year about individual companies. Just basically about trading, about the charts and personal lessons that you can learn from by watching how the stocks act and behave.