Stuart McPhee and Mark Cook talk about how to play the stock market using CFD trading.
Mark: ‘there are so many different types of persons coming into trading and it really can attract from every type of field, background, capital, age, education.’
Stuart:’ Background, upbringing. I think one of the most ironic things about money or trading and money is we focus on the money because that is why we are drawn into trading, for most people. Yet that is the thing that makes us become unstuck because we worry about money so much and we focus on it and we don’t want to cut losses and cut losing trades. That is a real shift that we’re probably not aware of when we start our trading plans.
Paul Tudor Jones said in the first book, don’t focus on making money, focus on protecting what you have. The other night I heard you speak and you said something that really hit home with me. You talked about early on you were trading with some of your relatives’ or friends’ or your mother’s money and you lost a lot of it and there was an interesting thing that happened between yourself and your mother that had a defining effect on you.
Mark: ‘Well my mother, she lost 0,000 that I was directly responsible for and when we talked about it she asked how much money I had lost. And I had lost 0,000 at that particular time so I looked at her and she gave me words of inspiration instead of words of condemnation which made me go forward. And she asked me how soon I thought I’d get the money back which I thought I was never going to get it back.
Mark: ‘She had always been an inspiration to me, she knows what to say at the right time.
Stuart: ‘And the other thing you said about the perspective. We may have a few losing trades in a row. We may end up losing 00 over a week which isn’t a huge amount of money, but if it is done over three losing trades you think it is not for you, this is a terrible run. You know I say to people, if you have your health and your home and all these other things and both of us live in great countries. If losing 00 is the worst thing that is going to happen to you this week, life is pretty good. I think perspective is something we should consider. Knowing how to play the stock market with trading plan will include lots of highs and lots of lows.’