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Do you know if most new traders approached scuba diving the same way they approach trading, they’d drown in the space of about two minutes because they just don’t look after, themselves? So, question for you is, are you looking after yourself in the market?
So, I’m in Kauai at the moment on the north side of the Island, or around to the north of the Island. And we just took the kids scuba diving. Ariel’s down there, my wife’s there. Quinn’s down the beach a little bit. And what impressed me about the scuba instructor, and I know it’s for my own safety, there’s a lot that can go wrong when you’re underwater. But there’s a lot of safety precautions taken. There’s a lot of backups.
Everyone has a tank, everyone has their regulator, everyone has a backup regulator. The hand signals, instructor checks on you every couple of minutes. And everyone has a backup regulator, so if you run out of air, someone else can lend you their backup and so on. And it’s all in the name of keeping you alive underwater so you can enjoy the sport and have fun.
Now, what’s the trading equivalent? Well, your trading plan, your trading system, your risk management is all of that combined. And so, when you step into the markets, your goal is, yeah, to make money. In scuba when you step into the water, your goal is to have fun, enjoy the roof, see some fish, all that and stay alive. Right? Get back to the surface alive.
And when you step into the financial markets the way I want you to think about risk management is that your life depends on it. Now, obviously, it’s not your physical life but it is your financial life. But most people treat that really flippantly. And that’s why most people blow up and lose all of their money. So, keeping yourself alive financially in the market is a lot more than you think.
It’s more than just risk management. It’s more than just position sizing. It’s more than just taking good trades, having a good system. It’s all of those things put together and then it’s you as the trader actually following those rules. So, if you don’t have a trading system that fits you, if you don’t have a risk management plan in place, if you haven’t written a trading plan, then it’s just like you’re walking into the ocean to go scuba diving without one of the major pieces of equipment, like without the tank or without the goggles or without the regulator or without the spare regulator. And something bad is going to happen. It may not happen immediately, but it will happen and you’re going to lose all your money. You’re going to blow up your account, you’re going to walk away from the markets a loser. And the shame about that is that this doesn’t have to be that way.
So, if you get the trading system, you get the trading plan, you get the risk management, get that all together. Same way I teach my mentoring students in the trader success system, you get all of that in place, trading becomes simple, easy, and fun. It’s no longer stressful, worrisome, and it doesn’t keep you up at night and it doesn’t risk your financial future. Obviously, you’ve always got some risk in the markets, but it’s not as big a deal as what it feels like when you’re a brand new trader and your accounts fluctuating up and down and you stay awake at night wondering whether or not you’re going to blow up the next day. Because you’re trading with a plane, you’re trading like a professional.
So, if you feel like you’ve got stress about the markets, you feel like you’re not sure whether you’re going to survive or whether your draw downs are going to get too big to be tolerable, then it’s time for you to build some confidence in your trading approach. And so I put together a quick, free resource for you to help you build that confidence. It’s called the Trading System Confidence Cheat Sheet. So, what I want you to do now is click the link below, download the Trading System Confidence Cheat Sheet and go through it and start building confidence in your trading system. Start building confidence in your risk management so that you know that you’ll survive in the market.
Because when you do, this is what happens. You can come and enjoy places like this using the profits from your trading. And don’t worry about the stress of life. Don’t worry about the stress of the markets. Don’t worry about the stress of your day job because you finally got trading right. So, click the link below. Download the Trading System Confidence Cheat Sheet.
My name’s Adrian Reid. This is Enlightened Stock Trading. I’ll see you in the next video. Bye for now.