This week’s Misfit Entrepreneur is Robb Reinhold. Robb is the founder of Maverick Trading, a unique firm that provides capital to traders to help them succeed essentially staking them.
Robb has been trading the markets since 1997 and has devoted the last 15 years to the intricate fields of psychology, neuroscience, and behavior modification. He knows what it takes to succeed in one of the toughest games in the world.
Many of you know that I have owned a trading education business, 12 Minute Trading for almost 20 years and there is no doubt learning how to be a disciplined trader in the markets has helped me as an entrepreneur. And it all begins between your ears. I’ve asked Robb on today, not just to talk about building his trading business, but to share the lessons learned from trading that translate directly to entrepreneurial success.
www.MaverickTrading.com
Rob started his journey in sixth grade when he was inspired by a great teacher. He was taught about what it means to have your money work for you. But then he was in a car accident at 16. This led to a settlement which he took and invested in stocks. He almost doubled his money and was hooked. He then gave his earnings back as the market turned. It was the early stages of online trading and he found a company called Maverick Trading where he could learn and grow as a trader. As he became more successful and understood the business, it made sense to buy it, so he did becoming the owner and president.
After going through a number of stats of how most traders fail, why should someone consider trading despite those stats?
- It is a mindset shift – you have to view trading as a long-term career.
- Process and discipline are required – great traders are forged, not born.
- Each trader’s journey is unique and you can be successful, but it takes staying dedicated and perfecting your strategy over time. Most traders fail because they give up way too early.
What are some of the key considerations and mindset shifts that aspiring traders need to keep in mind, especially those transitioning from traditional careers or entrepreneurial pursuits?
- Understand the long game in trading.
- Recognize the need for patience and time investment.
- Transition from a results-driven mindset to a process-oriented one.
- Embrace the idea of paper trading to develop strategies. You must “earn the right” to trade with live capital. It takes patience.
What are some of the biggest mistakes that traders, both new and experienced, tend to make, and how can these be addressed?
- Letting emotions dictate decisions undermines young traders.
- Having an overemphasis on technicals and neglect of trading psychology is another.
- When under pressure- most traders don’t use the logical side of their brain, the use the emotion one and it creates bigger problems.
- Experienced traders have to watch getting too relaxed and falling back into natural destructive tendencies.
- To avoid the mistakes, traders must focus on trading psychology and self-awareness.
- They also must embrace their weaknesses and learn how to work around them.
- The must have a continuous self-awareness and vigilance against falling back into bad habits.
How do the mental aspects of trading, specifically the trading personality, play a crucial role in a trader’s success, and how does this relate to entrepreneurship?
- Robb has created a trading personality test based on Myers-Briggs that they make all of their traders take to help them understand how their personality can affect their trading.
- As an example: Extroverts are prone to overtrading.
- So, you have to understand and embrace your natural tendencies for success.
- Paranoia and self-awareness are crucial in maintaining discipline.
- Entrepreneurs also benefit from self-awareness.
- Delegating tasks based on strengths and weaknesses is important to succeed as an entrepreneur.
- It’s good to have a healthy paranoia in both trading and entrepreneurship. This will keep you from getting complacent.
- Being a trader is an entrepreneurial enterprise, so being adaptable and a continuous learner helps in both domains.
Any advice for individuals juggling both entrepreneurship and trading, trying to balance these two worlds effectively?
- Recognize you don’t have to be great at everything.
- Delegate responsibilities and build a skilled team.
- Set clear boundaries between trading and entrepreneurship.
- Learn from both experiences and apply cross-disciplinary insights.
- Embrace failure as a learning opportunity.
Any final thoughts or words of wisdom for those navigating the challenges of both entrepreneurship and trading?
- It’s a journey, not a destination; be patient.
- Celebrate small victories and seek growth opportunities.
- Surround yourself with a supportive network.
- Stay disciplined and continuously refine your approach.
- Success is built on lessons learned from failures; keep evolving.
What are some of the biggest challenges you’ve encountered as an entrepreneur?
- Learning how to manage people. It’s about them and not you.
- The difficulty of making decisions affecting both business and personal relationships and how to navigate them because your business affects you personal life and personal life affects your business.
- Work to find a happy medium when it comes to managing your personal and business life and don’t be afraid to ask for him.