Starting Fresh as a Trader

In this section, Scott discusses his approach to starting fresh as a trader and shares insights on how to find the right trading strategy that fits your personality.

Finding Your Niche

• If starting over, Scott would choose a different trading strategy that fits his personality.

• Mean reversion trading is more of an art than science, while small cap short selling is more of a science.

• There are many different strategies out there, and you need to find the one that fits your personality.

• Scott prefers low volatility with a high win rate and is willing to accept lower returns.

Personalizing Your Trading Strategy

• You need to figure out what works for you based on the amount of time and money you have, as well as your lifestyle and personality.

• Some people swing overnight trades while others don't take overnight positions. Find what fits your personality.

• It takes about three years before you can make any money in day trading.

Introduction to Trading

In this section, the speaker talks about the importance of having the right perspective when starting a trading career.

The Importance of Perspective

• Professional firms suggest that it takes at least three years to become a successful trader.

• It's important to try different things and find what fits your personality.

• Jumping into trading with the sole purpose of making money is not sustainable in the long run.

• Financial rewards are massive, but you have to be able to perform and have skills.

Rules for Successful Trading

In this section, the speaker discusses some rules or concepts that traders should follow for success.

Key Concepts for Success

• Everyone will face a big loss at some point.

• Admitting when you're wrong and being humble are essential for success.

• Following rules and adapting to losses are necessary for winning in this game.

The Importance of Honoring Stop Losses

In this section, the speaker emphasizes the importance of honoring stop losses in trading and shares an example of how not doing so can lead to significant losses.

Honoring Stop Losses

• When you're down a certain amount of money in a trade and you've risked a certain amount of money, you have to get out if you're a rule breaker and don't honor your stops.

• If you don't honor your stops, 80% of the time, you'll get bailed out. However, there's still that 20% chance where it won't work out, and the stock will go lower or higher.

• Not honoring stop losses can lead to emotional trading and getting even bigger in that trade. This can result in triple positions and being emotionally vulnerable.

• The speaker warns that not honoring stop losses is an example that knocks people out of the game. It's important to plan your trade, trade your plan, and stick to it.

Trading as a Journey

In this section, the speaker talks about trading as a journey and emphasizes the importance of having balance in life.

Trading as a Journey

• The speaker has been trading for 20 years and believes that if you're going to sit in a chair for 20 years, then it's important to have balance in life.

• He decided what he was good at and what he wasn't good at. He also knew he didn't want to be a slave to the dollar because he had the ability to make money by going to work.

• The speaker leaves work at 4 o'clock every day to have balance in life. He coaches his kids' sports teams and spends time with his family.

• The speaker emphasizes the importance of having balance in life and taking care of your body because trading is a journey. If the journey isn't fun, you'll get to the end and be sick, unable to enjoy your money.

• The speaker believes that it's important to have great experiences along the way, such as going to concerts and spending time with loved ones.

Having Balance in Life

In this section, the speaker continues to emphasize the importance of having balance in life.

Having Balance in Life

• The speaker believes that if you're giving up all other things for trading, then you need to take a step back. There's nothing you can do with ten million dollars that you can't do with five million dollars.

• He encourages traders not to be a dollar bill and instead have balance in their lives. This includes taking care of your body, spending time with loved ones, and having great experiences along the way.

Importance of Work-Life Balance

In this section, the speaker emphasizes the importance of maintaining a work-life balance.

Key Points:

• It is important to work hard early on in your career to establish consistency.

• Before taking trading seriously, it is crucial to understand the importance of having a work-life balance.

• Listeners are encouraged to rewind and listen again to gain a better understanding of the speaker's message.