For the last few weeks in this blog, we have been talking about reducing risk by using different option strategies. You may have been asking yourself where did I learn to accomplish this reduction? That’s a great question. That shows that you are a forward thinking individual and that will serve you well as a budding trader. I made mention of this just briefly last week and it got me to thinking that I should spend a little time showing my gratitude for all those that brought me to this point in my trading career. This weeks blog will be spent paying homage to the folks that helped me bridge the gap between learning and doing.

Last week I made mention that one of my mentors had said to me “the only bad trade is one in which you didn’t follow your own rules!” This is the answer to the question in the previous paragraph. I learned how to reduce risk from my mentors. I took lots of courses and I learned some amazing things but when it all came down to putting it together to truly understand how to really reduce risk or perform at a high level it took someone who had been down that road to show me the way. The rest of this blog will be dedicated to those individuals that have helped me along the way and that still continue to do so. This is my public record of saying thanks to those who have given so much to me and that has allowed me to “trade it forward” to those that I have had the pleasure of mentoring.

My journey in trading began in much the way that I think everyone’s begins and that is with some form of pain. I had to learn the lesson that giving up control is ALWAYS a bad idea when it comes to investing. I had a small sum of money and no knowledge and so I took the advice of folks I trusted and gave my money to someone who claimed to know more than me. I had no way of knowing whether what this person told me was fact or fiction because I didn’t spend the time to look into it. In essence, I didn’t have the right mindset to be an investor at any level. To shorten this long story I lost over 60% of my initial investment in the following seven years. I never received word from my advisor that we should make changes and that person continued to get paid regardless of what happened to my investment and therefore there was little incentive to build the investment. At the time I was happy to play the blame game, it was their fault because they didn’t let me know or tell me to make the necessary changes. I then blamed the market conditions because things had turned south. I also blamed the investment vehicles that I was in thinking that if I just had the right vehicle it would have been ok. All of this turned out to be complete nonsense! The only one to blame was me! I didn’t do the research, I didn’t understand the space I was playing in. I basically did nothing and expected some fantastic result to come through. Really that is insane thinking but I was still to green to realize that.

How did I figure all this out? That is where my first mentor comes in. My first mentor helped me understand that we get nothing for nothing! If I wasn’t willing to put in the work to succeed then how could I possibly succeed? Sounds simple, right? Well, this is something that a lot of folks still don’t realize. I almost felt like my first mentor was like Mr.
Miyagi from the Karate Kid in the fact that he spent more time fixing my thoughts before he actually taught me trade. This is where mentorship is more effective than studying a book or using google university. We can always access information but can we effectively put it together with the right frame of mind to accomplish the goal? I know how I would answer this question but everyone has to come to terms with that on their own. My first mentor did teach me a trading system that involves 3 particular metrics that when combined put probability in my favor. This system worked well but without having the right mindset to execute the system it would have failed spectacularly and I believe my mentor knew this. This first mentor set me forward on a path and gave me the perfect tools to get started. I can never convey with words the amount of gratitude I have for this individual. I believe without this guidance I wouldn’t be were I am today.

One side effect of my first mentorship that I think might have been unintended was the insatiable appetite that I would develop for all things trading. My first mentor took me as far as he could within his knowledge base but this just made me want more. I tell myself every day that trading is my healthy addiction, maybe it is or maybe it’s not, that is debatable but what is not in question is that I “needed” to learn more, I craved more knowledge in trading. In walks my next mentor. My second mentor taught me the exciting world of futures and options. I had taken some courses before this second mentorship so I knew the mechanics of trading options and futures but I didn’t know how to pull myself out of all the messes I could create with these leverage products and believe you me I created lots of messes. My second mentor was there to chastise me when I messed up and was there to cheer my victories. He was also there to pull me out of tailspins both from a trading standpoint and a trading psychology standpoint. The worst thing about messing up in trading is that the cash takes a hit but the mental capital hit is usually much worse than the loss of cash. This mentor was able to repair my psyche each time I got crushed in the market after doing something foolish. This mentor also taught me the most important parts of trading, discipline, risk management and life/trade balance. This was part of my evolution as a trader and I am grateful to have this kind of help along my journey.

After wandering down my path as a trader for a few years taking in all the lessons I could through my mentorships and my own mistakes I came to the point in my trading career that is was time to “repay” the kindness that I had received on my road. This is where my most recent mentor fits into the picture. They say that you only know something well enough when you can teach it to another person. I would more or less agree with this quote except for the fact that just because a person has definitive knowledge of a particular subject doesn’t necessarily mean that they have an effective manner of conveying that subject matter. In walks my most recent mentor. This mentor was not only an amazing trader but also a born communicator. This was the new skill that I required to be able to convey my trading message in an effective way. This mentor showed me that even though I had lots of trading skill an experience that I needed to try to understand the subtle nuances of how different folks learn and intake information. This mentor was able to open my eyes to a whole new way of looking at the world and the people in it. I took this help to heart and then began to mentor my fellow man as well. I am eternally grateful to this individual and all those that came after him to help me out as well.

Whilst reading this you may find that there is a common theme amongst all the mentors I have had and what they were able to do for me. This theme is that they were able to help me out with my perception, my thinking and enhancing my skill levels as well as adding to my overall skill set. I believe it is this interaction that bridges us to success and I am certain that without this bridge my trading evolution may have fumbled along the way or even worse stopped altogether which in my estimation would have been tragic for my soul. So, I wrote this blog this week for two reasons. One, is that an attitude of gratitude is healthy for oneself and two, because I wanted you folks to know that if you look inside yourself and realize you need to add a skill set to achieve your goals and objectives then I believe, as the picture above shows, that mentors are the bridge to greatness.

To add to my attitude of gratitude, I would like to thank all of you that take the time to read this blog and be a part of the Tackle Trading community because at the end of day it is the people that make these things great!

Next week we will get back to the business of trading and take a gander at our mock trade to see if we can make it better or whether we need to look elsewhere for new opportunities.

Thanks

Coach Holmes