Trading Mindsets & Inner Game

Stock Market Coaching | Do You Need a Mentor? – Mindsets of a Master Trade Ep 205

October 11th, 2018

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My Thailand Trip

We got ourselves a guide, and in a way, a guide is a kind of like a mentor because they guide you through things.

We had some specific things that we wanted to see. We went around, and we said the things we'd love to see and they took us around.

There was one point when we were on our Thailand trip there was a weird little road that we wanted to get to. There's a little bit of a bank area, hotel, where there were some sightseeings about a six-hour drive in this weird and funky road.

We started over in Bangkok, and then we went, and we drove. I think about the two to three-hour mark of getting into this up a mountain trip, and we had a breakdown. The axle of the wheel broke because the roads are weird and funky. We hit a bump - the axle broke, the tire fell off. We sat there on the road for a couple of hours while the guide went back to go ahead get himself another vehicle and then come back to pick us up. That way we could get back to our area where we wanted to go and see.

We were stranded for a time, but it allowed us to be at peace to go ahead and keep moving forward in our journey even though there were some delays. The guide took care of this whole problem - an issue that we had.

What is a mentor?

A mentor is a guide. They help you navigate the waters of trading.

If you're looking for someone that's just a little bit more experienced in the area, that's really what a mentor is. That's really what a coach is. They have some vision, some perspective - they know the land, they know the area, they know the region.

We wouldn't have known how do we get a car to pick us up, what road to take. There's a bunch of different routes that you could have taken. With no street signs, it's tough to navigate a country in that way.

The same thing in the stock market world. It's difficult to navigate if you don't have the full perspective.

How do they help?

  • They show you the path;
  • They show you the risks;
  • How to pronounce things right, if you're learning to read;
  • How do you do things;
  • What should you look at; and
  • What are the things that you need to focus on

That's how mentors help you. They show you all of these different things.

Do I need one?

Do I need a mentor and guide? Do I need to spend money, spend the time, if I'm already getting these books and maybe courses? Do I need one?

The answer is NO.

You don't need one.

We didn't need a guide on our Thailand trip, but it would have been much more difficult. Say, for example, and someone would have to go back and figure out how to do the logistics of getting another vehicle. How to navigate the road and you get sidetracked. They help you stay away from getting into trouble.

There are some disadvantages to this because you then don't get to explore things or randomly bump into things and see things for the beauty that they are as you're taking a trip or as you're learning the stock market. But you get a direct path.

It allows you to compress your time to get what you need out of it, rather than drifting away into other areas.

That's the whole point of the guide.

Do you need one? No, you don't need one.

But does it help compress your time, your education that learning curve? Yes, absolutely because they allow you to stay focused on the things that you need and the things that you want to see. The things that you want to learn, rather than drifting into other areas. They simplify things a little bit more.

When it comes to the stock market, mentors help compress your time that you need to spend on learning the market.

Socializing About Stocks is Useless : Mindsets of a Master Trader Ep 203

September 27th, 2018

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Today, I'm going to share with you a little bit of insight from my upcoming book - Mindsets of a Master Trader.

We're going into socializing about stocks. The psychology behind socializing stocks. At least a little brief insight behind it and why it's pretty much useless most of the time.

I'm going to cover four main points here:

  • My Facebook friends
  • Quantity versus quality
  • Look at introvert, ambivert, extrovert and
  • most conversations

Let's start with Facebook friends

I'll share with you the average or most people's Facebook friends or the amount that they start collecting. Let's say 500 plus.

As you start building and accumulating people, that number might go to 700, and it just depends who you consider a Facebook front.

The reality is that very few are going to be close relationships. Most of the Facebook friends are in the far distance, so they'll be over here, and you have a very limited or few people that you're actually hanging out with, talking with, making pleasant conversation with, discussing things in general about ideas, big picture, concepts to take you to the next level. Many of them are just connections that you've built over time, and it's just like collecting trading cards and playing cards.

Quantity versus Quality

When you look at the stock market, it's very similar that for a lot of people. You have to decide how many stocks am I going to own versus the quality of stocks.

What is more essential for you to - to have 10,000 Facebook friends or to have five close relationships or even one close relationship such as a significant other a partner?

Again, you got to recognize what is more important - quantity versus quality.

Is it important to own as many stocks as possible?

You'll probably want to be somewhere in a balance between quantity and quality. Here would be maybe quality because you're having little and there would be a quantity where you're just trying to add up as much as possible.

Introvert or Extrovert?

For some people, they want to be a little more active - they're extroverts. Maybe they're looking more at quantity or socializing more.

Introvert maybe a little bit more focused on the inside. That's when you don't want that many could be falling somewhere in between ambivert.

It's the same concept of Facebook friends, how do these things tie together? Could be more of your personality.

Conversations

As we socialize and we look at socializing, many of the conversations that happen in news reports and just a lot of things that occur about the stock market are pretty much useless.

With those Facebook friends, most of the conversations that you have with those 10,000 people are general conversation.

There's a famous phrase by Eleanor Roosevelt that says "Great minds talk about ideas average Minds talk about events and small minds talk about people."

If you look at the lowest form of conversation, you're just gossiping.

This is what's juicy.

You look at the news headlines, and they're gossipy. They suck you in.

If you look at those news reports as well especially stock market channels, a lot of them are talking about people. And people in the stock market world is stocks.

Let me bring you back to this point of when you're talking about stocks, and you're talking about people. It's because it's in gossip form. It's a form to suck you in to say hey this stock is hot, and this is a sexy stock. Why is it sexy? It's sexy because hey they got this new product coming out. This is launching next week. The earnings are great, the CEOs got this going on, and it is interesting because we're gossiping about it.

That's not great socializing. That's not a great conversation for you personally to help your portfolio, to take you to that next level.

What will take you to the next level?

Let's look at events

As we start taking a look at events, we're looking at history. You look at what's happened in the past. You're looking at what could happen in the future.

Now you're talking about historical chart patterns, maybe you're talking about what could happen in the future. What do they have coming out?

This is much better.

We look at this, this is much better because you're talking about what have they done in the past, how have they grown, and how are things involving these are events.

You're looking at a perspective of time.

What's the best form? Ideas

But you get very little of that on TV news channels and a lot of the reports that maybe have huge viewership.

Very few have ideas. If they do, it's a very small or limited amount. It might be a minute clip.

When we talk about ideas in the marketplace, we're talking about looking at a trade setup.

Here's a trade setup idea for you, this is how you manage it.

How do we make things better? How do we make things better for education? How do we make things better, so we have less poverty?

That's not an idea. It's more talking about people.

How do I do the trade set up? What would I do to take profits? Or what would I do to take losses? What is that set up? What is that idea? What is that situation going to do for my portfolio?

That's really what you want to focus on.

But the majority of the conversation is not about ideas - a majority of discussion in the stock market world is gossip. Just like it is in nine out of ten news reports and channels. It's about people.

Which, in our industry, if we look at stocks, it's about stocks. What's the hottest stock? What is the stock doing?

It's gossip about stocks which is the same concept of gossiping about people.

Then you get to events - which is a little better because now you're looking at historical things. If you can get and find the ideas, which is very rare, that is the best approach because that's where it takes your mindset to that higher level.

Beyond that, you're just really looking at tons and tons of quantity tons and tons of juicy gossip that sucks you in. Talking about those hot things that are attractive, that you can't avoid. But it doesn't take you to that next level.

It doesn't make you better in this space.

Knowledge vs Wisdom for Stock Traders Ep 198

August 23rd, 2018

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Hey, this is Sasha and welcome to another episode of 'Let's Talk Stocks.'

Today, we're going to take a look at knowledge versus wisdom and this all stems from my new upcoming book 'Mindsets of a Master Trader.' Don't worry. You have plenty of time to get it. It's not even out yet. It's something I'm working on. It should come out later towards the end of the year, but it's all about the mindset of psychology, mentality, how to get your brain structured around trading.

That's what really what we're going to hone in and focus on because I find a lot of people don't understand the big difference between knowledge and wisdom, how they work together to attain it and grow it.

I want to share with you a quick little story here from my college days and really what the educational system is all about these days.

Most of the time -- whether you're in grade school, whether you're in college -- the way that things are set up is a lot of it is just memorization and regurgitation. You're memorizing things, and you're regurgitating. You're memorizing it, and you're spitting it out.

That's really what you do in college. You don't attain wisdom. You get knowledge. This is what a lot of things happen in colleges. You acquire knowledge. You're not gaining wisdom.

The big difference behind that is -- yes, you may know how to do a procedure. You may know how to take a formula and apply it to a particular concept but there's very few, I would say let's throw a ballpark figure out there -- 90% of it is going to be knowledge, and 10% might be wisdom that you attain.

The wisdom that you attain might be on how to live on your own. How to manage your finances, pay your bills, get a job -- those kinds of things that might be the wisdom. But overall, the knowledge is indeed what happens in class. And it's not as useful because again, memorization, regurgitation, and now I'd say 90% of the stuff I learned in college I don't even use. I don't also remember it.

The wisdom is really what's vital and what's important.

When we look at stock trading, a lot of people know, but not a lot have wisdom. You need to work at both to become successful or even to have successful trades.

Even if you're a lousy stock trader, you need some wisdom to be able to make something work.

I am looking at just knowledge.

This is just about burying your head. Let's say books or courses, and learning about let's say technical analysis. That's all fine. It's okay to learn these things because you need that. You need this to be able to get to wisdom. So, you need all this initial stuff to get to wisdom, but how do you grow the wisdom part?

Well, the wisdom part comes from that experience. As you gain experience, as you learn how to manage your emotions, that's where the wisdom comes in. It comes in from seeing those trades and knowing what to do.

You may know technical analysis or a pattern. You might know what a pattern looks like, but you don't know what to do at the moment with those emotions or with the trade or how to position size.

You might have the theory. This is all theory, and this is all application. You have the theory, but now you got to apply it -- this is where you build wisdom. I think of these things more like a glass container that's slowly getting filled. You'll slowly fill up the wisdom, and you're slowly filling up the knowledge.

This is really what's what's going on -- you're slowly filling them up. You might need a little more knowledge at the beginning and then eventually that wisdom slowly starts to climb up. That's what you're doing -- you're always filling up a container that just constantly keeps growing on you all the way to the top.

I think this is the critical key -- you understand where are you personally as you're looking to move forward in your journey with trading, investing, putting on trades, and shares.

Where are you?

Are you just honed in and focused on knowledge? I want to memorize this, learn this, get it quickly, but are you starting to apply that as well.

Because I have some traders that I've talked to and all they do is they get information. I'm all good for that. I think that's a high starting point, but eventually, you have to move into the wisdom segment.

To do that, you have to get that experience. To get the experience, you have to put on trades. You have to put on some investment you have to see what happens at the moment. How do you personally deal with those situations because everybody is a little bit different in their risk levels, what they see that's scary, what they see that's comfortable for them.

Going from knowledge to wisdom, it's a thing that you do back and forth. You might have a little more wisdom, and then you go back to the beginning and get a bit of knowledge, and it's a pendulum, goes back and forth. You work it, and you constantly keep growing these little containers with more knowledge and more wisdom with time until the day you die. That's really what the end goal of it is.

If you're looking to grow -- that's continuous growth.

If you want to stop right there -- that's death, you're dead.

But if you want to continue to grow, continue to evolve, continue to grow, then work through your knowledge.

So, think about that. It's not just memorizing and regurgitation like you do in a lot of classes, it's about really getting a deeper meaning and understanding. That's what wisdom is all about.

FAT Stock Traders are BAD Traders (Hungry Traders are Better) Ep 197

August 16th, 2018

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Hey, this is Sasha and welcome to another episode of 'Let's Talk Stocks' and today I want to let you know how not to be a Fat Stock Trader.

Now, when I say fat, I'm not trying to be mean or hurtful especially if you're struggling with weight.

What I'm trying to do is make sure that you become a better trader, that you can see and understand the concept I'm trying to share, so that you continue to evolve your game.

It's not about being mean. It's about taking you to the next level with your trading.

Now, in order to illustrate this example, I want to share with you a quick little story about when I first arrived in the United States.

If you didn't know, I grew up in Russia. At Tomsk to be exact. Then, we moved to the United States.

In Russia, they didn't have a lot of buffets, all-you-can-eat, or restaurants for that matter that we attended or went to because we were very poor and lived in a lower-level society.

When we first arrived to the United States, we went to a restaurant. It was the KFC restaurant and there we went to the buffet. It's the first time I've seen a buffet as a kid. I was maybe about 7/8 years old when when I went into this restaurant. It's like you pay once and you can eat as much as you want. That to me was an amazing concept.

What did I do? I stuffed myself as much as I could because remember we grew up not having a lot. So, you go to the buffet. Eat as much as you can and then what happens afterwards? You feel sick. You're tired and I ended up throwing up just shortly after we left the restaurant.

That's what happens overall when you overeat stuff yourself and have too much. This is what I'm getting at when you're a fat stock trader.

What is a Fat Stock Trader?

A Fat Stock Trader is basically a person who's trying to indulge in their cravings. They're doing things on an emotional level.

Look at this in terms of cravings for eating disorders -- people that just want to eat too because they feel bad about themselves, because they're depressed.

It could also look in terms of relationships. When you miss someone, let's say you're lonely man or a woman and you miss a partner, you want someone to spend your life with. Well, you go ahead and maybe make bad choices for these relationships with people that are definitely not a good fit or match for you -- but you doing it anyway.

That's being in a fat relationship and instead of being in the fat stock trader.

But this is what stock traders do -- they miss money, just like other people miss relationships. They get into a bad relationships. If you miss and crave, let's say money or you're hungry for money, you end up taking on bad trades and that's what a fat stock trader does.

Now, why is it bad to be a Fat Stock Trader?

You can obviously see where I'm going with this.

If you're taking on bad trades, it's going to create more losses. It's gonna create problems with your emotions, psychology. You're going to get into the wrong trades. You're going to lose more money than you should. Not to mention those things were not right for you anyway.

There's a lot of people in the world. There's a lot of relationships happening. Maybe your ex-wife or ex-girlfriend are getting together with some other people and those relationships work great right but they weren't great for you.

This is what happens with certain trades -- there's a lot of trades out there and they're great trades but they may not be right for you.

You need to choose the right trades that are right for your risk levels, your risk appetite, your experience, those kinds of things. That way, it can be a better fit for your trading or investing.

That's why it's bad to be a fat stock trader because you're just choosing things based on emotions. You're just choosing things based on what you feel good or what makes you feel good at the time and not necessarily the best thing for the long haul.

It's better off to be a Hungry Trader

That's what's better. What does that really mean?

If you've never been hungry then I recommend you try it at least for a day or two, just to you know. Either not eat. It's not going to kill you but you'll see that that hunger starts to kick in that drive starts to kick in and you want something you want it, you want it.

But it's a different kind of drive than a fat craving drive. When you have a hunger drive, you want it for success in a way and you're more determined to get it because it's essential for you to survive.

You can't do it for ten weeks and go out without food. But going out a little bit, being a little bit hungry, will move you forward in your trades. Being hungry for success.

The drive will create more -- hey, I want to learn more. I want to learn more about options, if I don't know about options, I'm hungry for learning about technical analysis because that's what I want to go after.

That's what hunger does to you.

Whereas, instead if you're missing money, that's more of a craving. You're trying to do all these things because you feel like you're missing something.

It's a completely different approach to be hungry than it is to have that craving for something and indulging yourself.

So, I hope you see and understand why you shouldn't be a fat stock trade because if you are and you're putting on trades because you're basically indulging in yourself, well eventually, what's gonna end up happening is you can end up puking just like I did after going to KFC buffet.

I'm Sasha, an educational entrepreneur and a stock trader. In addition to running my own online businesses, I also enjoy trading stocks and helping the individual investor understand the stock market. Let me share with you some techniques & concepts that I used over the last 10+ years to give you that edge in the market. Learn More

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