3 Trading Lessons from the Wolf Of WallstreetIn short, we learn how Jordan Belfort made a fortune selling Penny Stocks and top blue-chip stocks.
He was also able to turn from an entry-job broker into a man who made over $200 million dollars through widespread corruption on Wall Street and in the corporate banking world.
Spoiler Alert – It ended with Jordan showing his path to redemption through motivational speaking and teaching people how to sell through his programme called “The Straight Line System”.
And now Jordan charges over $100,000, to give advice to top companies and high net worth individuals.
While I was watching this legend of a movie, it reminded me of a live event of his I attended.
It was on 2 March 2014, where he taught us marketing, entrepreneurship and how to attract & sell products to an audience from A to B.
As he was explaining his approach, it caught my attention and taught me a few timeless principles with trading on the financial markets.
Here are the three top trading lessons I learnt from the ‘Wolf Of Wall Street’.
Lesson #1: MUST
Jordan Belfort says…
“Winners use words that say “Must” and “Will”.
His three common tenets to his ‘Straight Line system’ are:
1. We MUST control the sale and stay within the boundaries of the ‘Straight Line System’.
2. We MUST establish an instant rapport.
3. We MUST use that rapport to gather intelligence.
It’s all about commitment…
And that’s the big mistake I see most traders make.
They have the strategy, the plan and the steps to enter their trades and yet, when all is lined up, they procrastinate.
They use words like “should”, “could” and “would”.
“I SHOULD get into the trade, but I think the news is going to come out with worse than expected results.”
“I COULD get into the trade, but it’s my birthday and I don’t want to lose money today.”
“I WOULD get into the trade, but I feel it’s not going to work out.”
They continue to hesitate and make excuses to delay the most important actions at the right time.
If you want to make it in this game and become a winning trader, you got to follow your strategy and do what needs to be done when you’re supposed to.
If you don’t COMMIT, you’ll never show your full potential.
Throw out the word “should” and day the following:
“I MUST do what needs to be done and
I WILL do it as soon as I need to.”
Lesson #2: Figure of authority
When Jordan Belfort started the company Stratton Oakmont, he became successful in a short amount of time.
It wasn’t just the name.
It wasn’t just the skills.
And it wasn’t just his team…
No, this is because he used his winning formula and executed his plan with pure confidence…
When I attended Jordan’s event, he pretty much summed up three points that helped him follow through with his ideas and strategies every time.
1. Be enthusiastic as hell
2. Sharp as a tack
3. Be an expert
Trading is all about execution with confidence.
Whether you’re following your own strategy – You run the show.
You have to show your ‘enthusiasm’ with passion and commitment.
You have to be ‘sharp as a tack’ as you are the one who needs to be unbiased and find the trades that line up accordingly.
You have to show ‘figure of authority’ because you’re the boss and the one who makes the calls…
Lesson #3: The first four seconds
Jordan says, you get a mere four seconds to influence your prospects decision about you and your product or service.
If you possess the qualities where you’re ‘sharp’, ‘enthusiastic’ and an ‘expert’ – next is the execution.
You only have four seconds to execute your plan.
Any longer and the excuses and procrastination will start to creep up again…
When I see one of my five patterns line up and establish on a financial market, I start setting up the trade IMMEDIATELY.
I don’t look at the news, I don’t ask for a second opinion and I certainly don’t find reasons to not take the trade.
I give it four seconds, and go straight to the risk tool to calculate my stop loss and take profit levels.
AND I EXECUTE!
If you enjoyed this article and would like to see more follow and LIKE the article, so I know I'm in the right direction to what you wish to learn.
Trade well, live free.
Timon
MATI Trader
