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Transcript of Adrian Reid’s Interview On The Personal Brand Talk podcast

Learning the Game of Trading with Adrian Reid #241 – PERSONAL BRAND TALK – Cam Roberts Podcast Show

Speaker 1:

Get set podcast listener, and be ready to win with your mentor, motivator, and marketer Cam Roberts. Grow your business and achieve your goals quickly with the latest tips, tools, and tactics on business success and marketing. Subscribe now and download your free [email protected].

Cam Roberts:

Hey, everyone. Cam Roberts here, your friend in business success and marketing. Thank you very much for joining the podcast show today. Now, today’s very special guest is Adrian Reid. Now, he’s a full-time trader based in Australia and also the founder and trading coach at Enlightened Stock Trading, which focuses on educating and supporting traders on their journey to profitable trading systems. Now, Adrian has been trading for over 20 years and now makes money trading stocks in the USA, Australia, Hong Kong, and also trading cryptocurrency. So no matter which direction the market is moving, Adrian is the person you want to listen to. So Adrian, thank you very much for coming on the podcast show.

Adrian Reid:

And thanks for inviting me. Thrilled to be here. Really looking forward to this.

Cam Roberts:

Hey, listen, I’ve got to ask you before we get going, where did all of this start for you? How did you get into trading of all platforms to get into? What was the thing for you to fall into trading?

Adrian Reid:

Yeah, thank you. Good question. Look, if I go back as far as I possibly can, the first introduction I had to trading, I was eight years old and we were sitting in the family room of my parents’ beach house down the south coast of New South Wales, and we found a old game in the cupboard under the TV, which I hadn’t seen before that point. It’s called the Stock Market game. And the Stock Market game, you started, and you went around the board, and the market went up and down, and you bought and sold shares, and you became a billionaire. It was amazing, the best thing ever. And I was like, “This is so cool.” I was like, “Whoa, I want to… Love how this works, and getting paid dividends, and making gains.” So at eight years old, I was like, the stock market is the best thing ever.

And played that for a couple of years. Then I forgot about it. Then I started work, and corporate job and career and everything, and realized I didn’t want to work forever. And I was like, had this thing in the back of my mind about trading in the markets and I started investing, and of course, stocks was the first place I went.

Cam Roberts:

Right. Okay, cool.

Adrian Reid:

That’s how it started.

Cam Roberts:

Very good. Excellent. And for you, you’ve been around for a while now and you educate people. So you’re not only successful at trading stocks, but you’re also successful at teaching others how to do it as well. What do you think makes a successful trader?

Adrian Reid:

Oh, look, there’s quite a few things. The first one and the biggest, I think, is a real passion for the markets. Some people think, okay, I should invest in stocks or I should invest in crypto. It’s like the next big thing. I should have some money there. But that’s not really going to cut it because there’s actually a fair bit to learn. It’s a whole vocation or profession in of itself. So you’ve got to have the passion for it. So I want to say number one thing is passion because you’ve got to learn and there’s a learning journey.

I think the next one is self-awareness. A lot of people will take action or follow people’s advice without really understanding or being aware that they’re acting on impulse or emotional. And being able to reflect and introspect and really say, okay, well why did I do that, and why do I have this impulse, that really helps.

But the third, and probably one of the least known things is you’ve got to have a strategy. You need a trading strategy that actually works. Most people’s trading strategy is, what stock should I buy? What stock should I buy? What stock should I buy? Or what coins should I buy? What coins should I buy? And that’s not a strategy, it’s looking around for someone to throw you a fish or throw your bone and tell you what to do. But that doesn’t create independence. It doesn’t create profitability as an individual trader. It creates dependence. And so, having a trading strategy that you know you understand and you can implement and you trust is critical. And finding that strategy, one of the things that I do is teach people a whole bunch of strategies and help them find the strategies that are right for them and implement them and build confidence in them so that they can follow them consistently.

Cam Roberts:

Yeah, that’s really good. And I know that you spoke about your story briefly about how you were in the corporate world and then you got into stocks and that’s where your passion was going anyway. But if someone’s listening to this podcast now and they’re thinking, “You know what? I’ve heard about trading before. I don’t really know what it is, but I know I hate my job. I know I hate my current vocation. There’s got to be another solution to this nine to five grind for 40 years,” what’s that first step look like for someone when they reach out to you, that first step that they take, and how much time does it take up? Can they do it on the side?

Adrian Reid:

Yeah, look, I think you can do it on side and you absolutely should do it on the side, because, realistically, to trade for a living takes quite a fair bit of capital because you imagine you make a percentage return per year on your capital, you need a fair chunk of money in order to replace a salary that you might earn in the corporate world. So first of all, start on the side and learn. And while you’ve got a salary, you want to add money to your account so your account can grow through savings. And when they start with me, I will teach them what types of strategies work, what are the generic strategies, and what are some specific rules around those strategies. And then I’ll teach them how to test those strategies so they can build confidence that they actually work themselves rather than just blindly trusting me. So you start on the side, you learn some strategies, you start to implement them, you get your daily trading process smooth, mistake free, under control, and you start to grow your account. As you save money into it, then you start to diversify your account.

And you talked in my intro, which was great, thank you for that, about the different trading strategies, the different directions, the different markets, you can make money in lots of different ways. So if you have trading strategies that make money when the market goes up, trading strategies that make money when the market goes down, and strategies that make money when… Sorry, sideways, and when the market goes down, you can do well in any market condition. So you’ve got to start somewhere and diversify into different strategies so that over time your portfolio becomes smoother and more consistent.

Cam Roberts:

Yeah, that’s really good. And I can tell by your communication and the way you’re explaining things, you have a methodology about you, and you’ve been doing this for a long time. I can sense that there’s a teacher, a mentor, or a coach in there, but how do people avoid, and it’s probably not a good term to use, but how do people avoid scammers, the cowboys, the people that are out there promoting, “Hey, I can teach to be a day trader, I can teach a trading,” and then they lose all their money? Obviously, for you it’s different, but what should people look out for when they’re looking for a coach or mentor to help them with their trading?

Adrian Reid:

Yeah, great question. And it’s super important because, to be honest, it’s not the cleanest industry in the world. There’s a lot of dodgy people, a lot of scammers. So I think the first thing is you’ve got to look out for yourself first. What are you looking for as a new trader? If you go out into the marketplace looking for someone to give you tips, buy this, sell that, buy this, sell that as in, “Tell me what to do, feed me. I’m helpless. Tell me what to do today, Mr. Guru,” you’re going to get scammed.

Cam Roberts:

Right.

Adrian Reid:

Guaranteed.

Cam Roberts:

Because you’re not empowering yourself. You are disempowering yourself and giving all of that… What do you call… What’s the word? Giving all of the-

All the power, authority.

Adrian Reid:

Empowerment to someone else.

Cam Roberts:

Yeah, right.

Adrian Reid:

And unfortunately, you’ll get taken advantage of if you do that. The way you want to look out for in the education is, is this person going to empower me? Are they teaching me the principles of what actually works and how to evaluate the rules for myself, or are they telling me to just blindly trust them because they’re the guru? And I don’t believe in blind trust. I teach trading strategies in my program. I’ve got dozens of trading strategies in there. And I could just say to you, “Here, here’s a bunch of trading strategies, knock yourself out,” but I won’t do that because it’s much more powerful to have you learn the strategies and then also learn my process to evaluate the strategies.

Cam Roberts:

Right. That’s really good. Yeah.

Adrian Reid:

It puts you in control because you can say, “Oh, the strategy really works. What if I change this? What if I tweak that? Why is this rule in here? Why is that rule in there?” Because I teach how to evaluate all of those things, it means you can start answering your own questions. And so, when someone has worked with me for a little while, they’re very quickly become independent.

Cam Roberts:

No, that’s good.

Adrian Reid:

Whereas most traders are completely dependent and at the mercy of someone else.

Cam Roberts:

Yeah. That’s really good. And at what point… With the students and the people that you work with, is there a point that you find that they start to get on their feet and start to see success? Is it a month? Is it three months? Realistically, what is that timeframe when someone says, “Hey, Adrian, you know what? I want you to help me with these strategies and understand trading, and maybe one day it can be a replacement of my income”? But when they start off, what’s that time period of success look like for them?

Adrian Reid:

Yeah, good question. I’ve got quite a well-trodden process now, so I can take someone from fairly green, fairly much a beginner to competently trading a strategy each day consistently in, look, a month. And there’s more learning beyond that, but that’s the go live safety.

Cam Roberts:

Right. Yeah.

Adrian Reid:

I don’t want to rush anyone into it because you’ve got to go live with real money in a way that is safe to protect your capital, that you don’t emotionally get unstable with it.

Cam Roberts:

Yeah, I love that. That’s really good. Yeah.

Adrian Reid:

Yeah. So let’s say a month and then, beyond that, another couple of months of betting it down, adding some diversity to the portfolio, adding a couple of different strategies, and mastering that management of capital across a few different trading approaches.

Cam Roberts:

Yeah, that’s really good. And do you help people with the right tools? Because I know there’s a lot of different tools that people can use to report on and watch graphs and candlesticks and all that sort of stuff. So do you help them find the right tools to use?

Adrian Reid:

Yeah, there’s a lot of different tools out there, some better than others. I’ve chosen the tools that I feel are best for my style of trading, and my style of trading is systematic.

Cam Roberts:

Right. That’s good.

Adrian Reid:

So it’s a strategy. There’s absolute rules. If this, and this, and this happens, we’ll buy. If this or this happens, we’ll sell. And those are codified. So there’s no debate about is this a buyer, is this a sell?

Cam Roberts:

Right. Got it.

Adrian Reid:

But for that style of strategy, there’s a bunch of different, off the shelf software packages and there’s different data sources. I’ve assembled what I think is the best value for new traders. None of them are perfect, but what you’ve got to do is you’ve got to learn on the platform that the teacher is able to teach on.

Cam Roberts:

Right. Yeah, that’s great.

Adrian Reid:

I started off by saying, “Look, you choose the platform and I’ll teach you the principles,” but that was quite slow because I wasn’t able to help with the coding and the rules-

Cam Roberts:

Of course.

Adrian Reid:

[inaudible 00:12:14], so I started as part of my gradual improvement over the years of teaching, I specify the package, the software to use. It’s quite cheap. It’s a few hundred bucks, so it’s not a big deal. And I teach the coding in that, and I teach the analysis in that, and that has allowed me to get people from beginner to competent much quicker.

Cam Roberts:

Yeah, that’s really good. Excellent. I love it. Let me ask you a different question or different pace of question. We’ve spoken about how someone can start it on part-time. We’ve spoken about strategies and being systematic about the process. We’ve also spoken about some of the tools and how certain tools will give better results and so forth. But what are maybe one or two things that people need to look out for, or one or two mistakes that you see newbies make when they get into trading?

Adrian Reid:

Look, the biggest mistake is knee-jerk reactions based on tips or what’s [inaudible 00:13:11]

Cam Roberts:

Right, yeah.

Adrian Reid:

Or social media.

Cam Roberts:

Social media’s got to be the worst, hasn’t it? You see something like Elon Musk tweet something,, people just go nuts. Elon said it, it’s going to happen. So it’s crazy, right?

Adrian Reid:

Yeah, absolutely. So acting on anything like that is disaster. So that’s the first thing. So you’ve got to eliminate all that noise, eliminate the news, eliminate social media, eliminate all of your emotion and tips and everything, and focus on a strategy, a set of rules that works. If you make that one shift, you increase your chances of success astronomically. Second shift that people need to make to increase their chance of success is managing their risk consistently. Most people are like, “How much am I going to make on this coin, on this stock? If I invest now, what’s my target going to be and how rich am I going to get?” But you got to think start on the other side of the coin. You’ve got to start with, how much could I lose?

Cam Roberts:

Right. Yeah, that’s really good.

Adrian Reid:

Because in trading, you’re going to be wrong a lot. And you have to be wrong a lot if you’re going to succeed.

Cam Roberts:

Yeah, that’s good.

Adrian Reid:

If you contain your risk on each trade to a very small amount as a percentage of your account, let’s say 1% of your account, or half a percent of your account, depending on how big your account is, then no one trade will hurt you. If no one trade can hurt you, you can take the action you need to take without fear. So I think that’s critical. They’re probably the biggest things. If you have a strategy that’s quantified and you’ve got confidence and it’s profitable and you contain your risk, it’s a lot of the battle.

Cam Roberts:

Yeah. I love it. And I really love that. I can sense where you’re coming from with your passion in your heart. You’re talking about protecting people’s capital and you’re talking about their risk profile. We spoke about some of the cowboys in your industry. Usually, it’s like, make money, make money. Look, I’ll show you how to make money, but they never, ever talk about losing. Whereas you’re actually teaching people how to set themselves up for success by being realistic with the systems that they’re using, and it’s only in understanding the platforms that their success will come, right?

Adrian Reid:

Yeah, absolutely. And there’s something else, which I think is a really critical message for everyone to hear, and that’s that we are trained in our society that being right is good. You get the right answer at school. You get everything correct on the test. You do what the boss wants exactly and you get promoted, and all of these things. We’re trained to be right. In trading, the need to be right is actually quite devastating, because if I need to be right on this trade, then I’ll hold on to prove that I’m right.

Cam Roberts:

Right. Gotcha.

Adrian Reid:

But if I’m holding onto something that is going in the wrong direction, hoping that it’s going to get back so I can take a profit to prove that I was right, or to justify to myself that I made a good decision or I’m a good trader, what you end up doing is having much bigger losses because they keep going against you while you’re waiting to be right.

Cam Roberts:

Yeah. That’s good.

Adrian Reid:

And then, as soon as you are right, you go, yes, you catch the profit. It’s like, “See? I got that call right. I made money.” But you’ve grabbed that profit quickly [inaudible 00:16:38] so you have small wins and big losses.

Cam Roberts:

Yeah, that’s really good.

Adrian Reid:

But the math doesn’t work.

Cam Roberts:

No, it doesn’t.

Adrian Reid:

Right?

Cam Roberts:

Yeah, that makes sense.

Adrian Reid:

If instead you quickly admit you’re wrong frequently, and if you’re right, go, oh, cool, let’s let it go. Let it go. Let it go. And then close the trade and a profit, a much bigger profit later, then you have small losses and big wins.

Cam Roberts:

Yeah, that’s really good.

Adrian Reid:

Then the math of profitability works.

Cam Roberts:

Yeah, that’s really good. Now, you talk about profitability. And in different economies at the moment, time of recording, it’s all over the news, inflation, bad news, global resets, all of that sort of stuff going on. Let me ask you a question, can people trade successfully over the long term regardless of the economy?

Adrian Reid:

Yes. No question. There’s a couple of ways of doing it, and I’ll just do this real quick. The easiest way to make money is when the markets are going up. When we’re in a bull market, all the stocks, all the crypto tokens or currencies go up, and you can basically buy and hold while it’s going up. And then if it stops going up and starts going down, you can sell and get out and go to cash. If you will just hold to a bull market and have a rule that gets you out… And it has to be an objective rule because you’re going to get all emotional. You don’t want to do it, and you’re hoping to get back to new highs and everything. You have to have an objective rule that tells you when to get out. Then you can just be in the market when it’s good and get out of the market when it’s bad. That’s the simplest approach.

So under those circumstances, you’d pretty much be out of most of the stock market in the world at the moment. And well, crypto’s turned a little bit as of time of recording, whether that’s a full change in trend remains to be seen. But you can then add to that the next layer of complexity, which is you can make money when the market goes down. So through short selling, you can profit from a decline in the price of stocks or crypto. And short selling is basically you borrow the stock or the crypto token from someone else. You sell it hoping that it will fall so that you can buy it back later and give it back to the person that you borrowed it from, essentially. So when you do that, you make money on the way down. There’s some risks involved in that. It’s non-trivial. You have to learn how to do it properly. But if you’ve got a strategy that works, then you can make money when the markets go down.

Cam Roberts:

Excellent.

Adrian Reid:

The third and final layer is if I trade multiple markets around the world and I can trade on the long side and the short side in each of those markets, then there’s almost always something that’s moving in a direction where you can make money.

Cam Roberts:

Yeah. That’s really good. That’s really good, Adrian. Now, a couple of times you’ve mentioned crypto. We’ve mentioned social media, crypto, and a lot of tips get thrown out on social media about crypto. But let me ask you a question, is there a difference between trading currency or trading commodities compared to, say, trading cryptocurrency?

Adrian Reid:

Yes, there are differences, but maybe not as much as you’d think. Okay? A lot of people think, “Oh, it’s going to change the world, and it’s the next big thing, and you should just load up on it and buy and hold, and I’ll be at rich because it changes the world,” and blah, blah. But in reality, just like every market, it has cycles, but if you think about… Let me just compare crypto with stocks because most people understand stocks and how that works. The stock market has long bull markets, and then bear markets, the bull markets might last five or seven years, and the bear markets might last two or three years, one, two, three years, depending on the market. And if you look back to 1990 in stocks, we’ve had quite a few bull bear cycles. In crypto, it’s compressed. So the bull bear cycles are much frequent.

Cam Roberts:

Yeah, makes sense.

Adrian Reid:

And it’s also extended, so the amplitude of the swings in crypto is much bigger.

Cam Roberts:

Right. Yeah Got it. Yeah, yeah.

Adrian Reid:

Okay?

Cam Roberts:

Makes sense.

Adrian Reid:

This is great and terrifying.

Cam Roberts:

Yes. That’s good.

Adrian Reid:

If you don’t have a strategy, it’s terrifying and emotionally supercharged because it’s like, “Oh, I’m rich. Oh, my God, I’m…” It’s like a rollercoaster.

Cam Roberts:

Yeah. That’s really good.

Adrian Reid:

Excuse me. But if you have a strategy that will get you in when the markets start rallying, get you out when they start falling, and then get you in on the short side when it starts falling, get you out on the short side when it starts rising so you profit the way up, and then profit the way down, in crypto, it’s fantastic because the cycles are quicker and they’re bigger.

Cam Roberts:

Yeah, got it. Yeah.

Adrian Reid:

So the profits trading crypto with a good strategy, systematically, like what I do, are astronomically good.

Cam Roberts:

That’s really good.

Adrian Reid:

It could get you other asset classes.

Cam Roberts:

Yeah, totally. Now, Adrian, look, we’re almost out of time, but I can tell by your passion, enthusiasm, and the systems that you’re talking about, that you’ve really got a heart to help people. And I’m very interested in myself about what you do. But before we wrap up, is there a way that people can reach out to you? Where can they learn more about your coaching, and your trading systems, and your education platform?

Adrian Reid:

Yeah, absolutely, Cam, thank you. The best place is probably my website, enlightenedstocktrading.com, enlightenedstocktrading.com. And I’ve actually put a little package of education together for your listeners. It’s called the Crypto Acceleration Bundle. So if they get it enlightenedstocktrading.com/personalbrandtalk, all one word, then you’ll see the little logo of the podcast and the crypto acceleration bundle. And what they get there is a free training course, which it’s called the Millionaire Trader Code. So it’s the pathway to get from where you are as a beginner to ultra successful, consistent trader. And there’s eight stages of evolution. So I teach that, and that’s for free, just to really guide the path, to show you where you’ve got to go. There’s an article there that you’ll get on the 20 Killer Crypto Trading Mistakes, so the things people do that cause them to lose money. And if you just avoid those 20 things, you’ll do amazingly well.

Cam Roberts:

Yeah, it’s really good.

Adrian Reid:

And then the critical ingredients for trading success. So go there, get that, and then reach out to me either on the website or on social media, and I can give them a hand.

Cam Roberts:

Excellent. And we’ll make sure we put all of those URLs in the show notes as well. So wherever you’re watching this or listening to this, make sure you look down in the description below and just click on the link and I’d highly recommend you reach out to Adrian and let’s see what he can do for you.

Adrian Reid:

Thanks so much, Cam. Thanks for your time.

Cam Roberts:

Thank you, Adrian.

Adrian Reid:

Appreciate that.