People who jump into trading are usually of above-average intelligence. But when they have never traded before, they don’t bring the skill sets needed to be successful in the markets… and they wonder why they struggle. Trading Coach Brian McAboy shares his thoughts on – Is being smarter than average a disadvantage in trading?
Brian McAboy is a trading coach and business consultant with a mechanical engineering and quality engineering background.
Brian says: “Like many traders, when I was introduced to trading, it looked simple enough. Having been successful in other endeavours in my life, I jumped in feet first thinking this would be pretty easy. That was very naive and a huge mistake.
“I started off a great winning streak, running up my account from $30,000 to over $47,000 in just a matter of weeks, which only reinforced my false confidence, but it was mostly luck. I was a nervous wreck most of the time even though I was making money.
“Eventually, my subconscious kicked in and I sabotaged my success and ran my account down all the way to $1,700. Needless to say, blowing up my account created tremendous stress for me, emotionally, physically, and on my marriage. After a short break, I returned to trading with a much greater respect for the markets and this occupation.
“What I discovered is that trading requires certain skills and perspectives and that trying to figure things out all by yourself is extremely difficult. While we might be smarter than average, we don’t know what we don’t know. While there may be a lot of misinformation on the internet about trading, learning from the mistakes and successes of others definitely beats learning only from the painful lessons the markets give you.”
Key Concepts We Discuss in this Episode
Brian McAboy has seen many traders struggle due to a lack of training, leading to inconsistent trading and counterproductive behavioral issues in their trading.
To reduce inconsistency and errors, Brian coaches his traders on the practices, perspectives, and tools he learned in years in Quality Assurance, which is essentially the science of consistency and achieving known outcomes.
When applied to trading, just like it is used in industries around the world, these practices are the means to maximize your profits, peace of mind, and security in what you’re doing.
Inconsistency in your trading is your greatest expense. Focus on consistency first and the profits will come.
Being smarter than average is an advantage only when properly applied. If you don’t develop the skills you need to trade, you won’t be able to beat the markets, at least not for long.
In this episode, you will learn:
- What is the Peter Principle?
- What is the Dunning Kruger principle?
- What are the biggest mistakes that traders make?
- How approaching the markets with a methodical mindset gives you the keys to the treasure chest.
Here’s how to get Process-oriented and develop consistent trading results:
- Understand that the act of trading is a process, one that you want to be able to repeat hundreds or thousands of times.
- Define your process in a manner that lends itself to easily being executed consistently.
- Use your metrics to maintain and improve the results of your process.
Get Your Copy of Brian’s Highly-Acclaimed Report “Enough To Be Dangerous” by clicking here: www.insideouttrading.com/enough
Download your copy now by clicking here: “Enough To Be Dangerous”: https://insideouttrading.com/enough-to-be-dangerous-report/
[00:01:40] – The lack of training among traders.
[00:04:11] – The Peter Principle.
[00:06:30] – Losing a winning streak.
[00:09:07] – Consistency in trading behavior.
[00:16:43] – Is it an intelligence issue?
[00:22:56] – Managing the uncertainty of trading.
[00:24:21] – Complexity vs simplicity.
[00:34:07] – Stripping systems out can make us more money.
[00:36:21] – Advice for wanna-be traders.
[00:39:27] – Free report on insider trading.
[00:40:53] – Who are the kind of people who can use a mentor?
About Brian McAboy
Brian from insideouttrading.com is a trader, trading coach, and business consultant. He is also a retired Mechanical Engineer and Quality Engineer and he brings this level of expertise to his trading. We previously had Brian on Talking Trading in March 2019, and it was one of our most popular episodes ever. So, we invited him back to inspire us all over again in the summer series.
Get in Touch with Brian
Special Report: https://insideouttrading.com/enough-to-be-dangerous-report/
About Louise Bedford
Louise is a best-selling author and the founder of www.tradinggame.com.au.
She and her business partner, Chris Tate, have been running their repeat-for-free Mentor Program since the year 2000. They provide simple techniques that you can implement straight away, and valuable resources to enhance your trading so you can maximise your profit potential.