by Stevie Swai
When we write blog posts here at The Entry Points, we strive to write in first person plural as Trader Scott and I like to present the material as a team. Today, however, will be different because I’ve decided to write a post about him. Why? Because he is not only my friend and my business partner, but also my mentor. And it is through his mentoring of me that I have become a much more serious and grounded trader with a far better track record than ever.
I never set out to be a trader. In fact, this type of business was never, ever even on my radar; probably the furthest thing from it in fact. Maybe it’s because I’ve always been more artistically inclined and rather service oriented and I suppose lurking somewhere in the depths lay a very unhealthy relationship with wealth. As if having just what we need to get by in life is more noble and character building than actually having things we want and more than we need.
On the other hand, I am, and have been all my life a free spirit and entrepreneur. And I am self taught in everything I’ve done from photography to tile setting to graphic and web design and found moderate success in every endeavor I’ve ever embarked upon. In short, I’ve been blessed to have been self-employed my entire adult life and have had a lot of freedom and fun. So with all that self taught success, surely I could be a successful trader, right? I mean, you buy a couple of books, watch a few YouTube videos on trading, cruise around Stocktwits for trending stocks. How hard can it be?
Well that’s a loaded question; the only thing I’ve ever set out to do and failed at WAS trading. Yes, I know, I’m out on a limb here as you’re questioning, no doubt, why I’d ever even expect anyone would listen to anything I have to say about trading if I was such a failure at it. Just bare with me for a sec, I’ll redeem myself in a moment.
I jumped into trading like I jump into everything, feet first and with a ton of enthusiasm. And, unfortunately, without one thought or even the slightest fear of failure. Looking back, I was a natural and did pretty well the first several of months. Of course, I had no idea what I was doing, which can actually be a blessing at times. I just bought stocks on good news, often times after hours and selling in the buying frenzy or at open the next day. My gains were impressive, but the losses were also. I was out of control and going out of my mind. Anyway, I won’t continue to elaborate as I’ve already detailed my downfall in this post.
The point is that I realized I just didn’t know what in the heck I was doing. Something about trading felt like gambling, like everything was random and left to luck. Why could I not repeat the trades I had successfully executed and why was I continuing to make the same mistakes? I decided I had no business continuing until I could answer these questions and of course, my dwindling account didn’t help.
Things started to look up after I started taking the time to study Trader Scott’s blog posts he had been writing on another site and picking his brain for understanding support and resistance and supply and demand. It’s funny because I’ve known Scott for years and I am most probably his biggest fan, but for some reason, I wasn’t applying what I was hearing him say until one day I DID. Once I was able to pump up the funds in my trading account and start trading again, my whole approach had changed. Gone were the emotional entrances and exits and the chasing down of trades. I was trading in a much more grounded and professional way. My account grew along with my confidence.
Scott does not instruct me. He does not tell me what to do or where to get in and get out of a trade. Instead, he challenges me and encourages me to think through issues and approaches. Sometimes he asks me difficult questions about why I chose to get into a trade, but he very rarely asks where I enter. This is what a real mentor is; they are a source of encouragement and wisdom. They inspire thought and help you stay on track.
We hope through using this website, you will benefit as I did through Trader Scott’s knowledge and expertise in the markets. If you are ready to go for the gold in trading, we’re here to encourage you and cheer you on because as tough as this business is, and it does require a lot of hard work, you can achieve success in trading. My mentor will show you how.
Good story Stevie. Can you recall some aspects of that day ‘until one day I DID’?
Bob Moriaty’s book was great by the way. The tale about the guy who phones him up for advice on weather to sell his shares (risen by about x70) but dosent take it is sort of funny.
Well, it’s kind of like the idea “no man is a prophet in their own country”. Scott was my friend and very successful. I always admired and respected his knowledge of markets, but I wasn’t REALLY listening. I still approached markets my way, a more emotional, dramatic way. There were too many highs and lows, nothing ever consistent.Consistency is good in trading. You want to know why a trade was successful because then you can repeat it. Also, I was too focused on the long term big picture. I wanted to go from A to Z in one big jump instead of just taking small steps and building an account brick by brick. So much in trading is about psychology. I just simply decided one day to drop my ego and admit that I just needed some help and I started really studying and listening to what he was saying. The day he told me to “hit singles” and stop being so focused on home runs was a game changer. Those 2 words were life changing. I still try and steal bases every now and then, and quite honestly, lose when I do it, but my approach to markets has become so much more professional since I started listening and learning.