- Do you think learning how to trade benefits
you in other ways in your life?
- 1000%. You know, you start to kinda see the world
for what it is and it might be a little more
of a cynical approach but that's good.
Like, no one is gonna scam me after my $500,000
loss, forget about just trading.
I expect the worst out of everybody
and that why I'm not disappointed.
Like you are guilty until proven innocent.
That's the way it is in finance and in business
and I think more people could benefit from that.
- Yeah, I remember I moved to New York City
and I was trading for a couple years
and I remember I tried to reconnect
with like an ex-girlfriend and she was in Boston
and I flew to Boston to try and see her
and I couldn't see her. I was there for a day
and I was like I'm gonna stay a few more days
and then I was like no this is a stop loss.
We're cutting our loss.
- So this is another thing, with relationships
we're emotional people. We're loyal, many of us, right?
Like we want things to work out and sometimes
you just have to cut it.
You have to cut toxic people out of your life.
Life is too short.
But a lot of people, they're like "no we didn't mean it",
"he was drunk", "oh no, he's gonna change" or
"she's gonna change".
And sometimes you just have to be like no, there's better--
- Bad position.
- Bad position, cut the losses.
- You can get another one, a better one tomorrow.
- That's the thing but a lot of people
aren't willing to do that and trading also helps
with investments. I know so many people who message
me, they're like "Tim, I ignored your rules, I'm down 80%
in the stock, what do I do now?"
And if you're down a lot, again, it's always
a new decision. You can cut your losses at any time.
You're in control but people lose that control because
they get emotional. They feel loyal, they feel married
to a position or a person and they accept it.
The beautiful thing about being a trader is that you
can change, right? You can get out of a position
and then maybe the position is gonna be better.
Let's say you're in a bad relationship where your husband
is beating you, right?
And you're like, "no he can change, he can change".
Well get out of the relationship, let him prove
that he's gonna change.
Maybe he has to go to therapy, maybe he needs like six
months with a counsellor or something.
And then, prove it. But you have to cut it, otherwise
they're just not gonna change overnight.
- Yeah.
- Most of the time.
- Do you usually tell people in weird trading positions
to just cut all the positions?
- 100%.
- Take a break.
- 100%. You know, also when you have a big loss,
I mean I turned to drinking and I was on a reality show
so it was a weird way to deal with it.
But, when you have a bad position or a bad loss,
you're emotionally messed up.
Like you said, if you get in a fight with your wife
you don't come to trading the next day.
I don't want to take revenge trades because then sometimes
you put your money into a new trade and you're like
"I just wanna feel good". I want that dopamine hit
so I'm in this trade, maybe you bet bigger than normal
because you want more of a rush.
And then, you lose because you're not thinking logically.
So for me, I want every single trade to be meticulous.
I don't wanna just enter in a trade.
And this is like with my newsletters,
some days I don't trade.
People are like "hey I'm paying you, you have to trade"
and I'm like "no, sometimes the best trade is no trade".
I do a video lesson comparing 5 potential trades
and why I didn't take it.
So you have to be willing to take losses.
You have to be willing to make no money
and sit on the sidelines.
For me, patience is often the best option.
You know, sometimes there's no hot penny stock
or the penny stock that's hot, it's too risky.
I can't control my risks
because it's choppy, it's too crazy.
So I don't know what to do, so I do nothing.
- Yeah, sometimes the sniper doesn't take a shot, right?
- Exactly! This is why I say this, you know?
You have to watch those sniper movies, go watch
American Sniper.
- Right, he sits up there for like seven hours,
you know, pisses on himself and just doesn't take
the shot.
- I mean this is what you have to do.
Sometimes that's required.
I compare it to being gorilla warfare
like a sniper versus British Redcoats
where they're all in uniform and they're all out in the open
and you can just pick them off one by one.
There's different types of warfare and when you have
a small account, you have to be up in the trees
picking people or picking stocks off.
Not picking people, but picking stocks off
one by one.
(electronic music)