How I Trade Full Time Without Risking My Own Money

Summary

In this video, a risk manager and coach discusses the importance of managing not only the financial risks in trading but also the personal and emotional challenges that come with it. The coach highlights how family members, especially spouses, can sometimes push traders to quit, often due to financial strain. Key strategies include being transparent with loved ones about the journey, reassuring them of the benefits, addressing financial setbacks openly, and involving a coach to help guide the trader through tough situations. The importance of using outside capital and getting support from a coach is emphasized, along with the need for traders to have a solid plan and clear communication with their partners.

Takeaways

• 😀 Focus on longevity: As a risk manager, the goal is to help traders succeed over time, not just tell them where to place stops or targets.
• 😀 Spousal risk is real: Traders often face pressure from spouses or family members who don’t believe in their trading journey, which can lead to conflicts and ultimatums.
• 😀 Transparency is key: Be open with your family or partner about your trading journey, struggles, and the plan for overcoming obstacles.
• 😀 Highlight the long-term benefits: Reassure your partner that they will benefit greatly when you succeed as a trader and explain how your success impacts their life.
• 😀 Address financial concerns early: Be transparent about any financial setbacks or losses and show that you have a plan to address them moving forward.
• 😀 Buy yourself time: If there’s pressure to quit, ask for a specific timeframe (e.g., six months or a year) to prove that your trading journey can work.
• 😀 Outside capital can reduce risk: Using outside capital (like prop firms) can take the financial burden off your family and reduce tensions related to money.
• 😀 Get your spouse involved in coaching calls: Letting your partner participate in coaching can help them understand your dedication and the plan for overcoming challenges.
• 😀 A coach should hold you accountable: Find a coach who is willing to push you, point out your mistakes, and make sure you're staying on track with your trading goals.
• 😀 Support is crucial: Having a solid support system, whether through family, friends, or a coach, is essential for trading success, as it helps traders stay in a state of abundance, not scarcity.

Q & A

What is the primary goal of a risk manager in trading, according to the script?

The primary goal of a risk manager in trading is not to dictate where to place stops or targets, but to ensure the longevity of a trader's career. The focus is on helping traders achieve success over time and navigate through rough patches in their journey.

How does the human element play a role in risk management for traders?

The human element is crucial in risk management as personal relationships, especially with spouses or family members, often become a significant factor in a trader's decision to continue or quit. Risk managers must address these emotional aspects to help traders stay focused on their goals.

What is 'spousal risk' and why is it important in trading?

'Spousal risk' refers to the potential pressure traders face from their spouses or family members to quit trading, often due to financial strain or a lack of understanding of the trader's journey. It's important because it highlights the external factors that can disrupt a trader's focus and progress.

How can transparency help in managing conflicts with family or a spouse about trading?

Being transparent with family or a spouse about the journey and struggles involved in trading can alleviate misunderstandings. Sharing the plan, progress, and obstacles openly helps them understand that the difficulties faced are normal and that the trader is working on a clear solution.

What is the significance of reassuring family members that they will benefit from a trader’s success?

Reassuring family members that they will be the biggest beneficiaries of the trader's success can help them better understand the long-term potential and financial benefits of trading. It shifts the focus from immediate struggles to future rewards.

Why is it important for a trader to be upfront about their financial situation with their spouse or partner?

Being upfront about the financial aspects, including setbacks, losses, or additional deposits, is important to prevent surprises and to ensure that the spouse or partner is aware of the situation. This transparency allows for better communication and minimizes conflict.

How does setting realistic timelines help traders in their journey?

Setting realistic timelines helps traders manage expectations and reduces pressure from family or loved ones. It provides a clear structure for progress and demonstrates to the spouse that the trader has a plan for overcoming obstacles within a reasonable timeframe.

What role does outside capital play in resolving financial concerns during the learning phase of trading?

Using outside capital to fund trading can help mitigate financial strain on the trader’s personal finances. By leveraging external funding, the trader can continue their development without putting additional stress on their household finances.

How can involving a spouse in the coaching process benefit the trader?

Involving a spouse in the coaching process can provide them with a clearer understanding of the trader's efforts and progress. It fosters support and alignment, allowing the spouse to actively contribute to the trader's success, rather than creating tension.

What is the role of a coach in helping a trader deal with the pressures of family expectations?

A coach plays a crucial role in managing family pressures by providing support and guiding the trader through emotional challenges. In some cases, the coach can mediate conversations between the trader and their spouse, ensuring both parties understand the process and goals.