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Learning How To Break Out Of Those Pesky Boom & Bust Cycles with Mike Lamothe, Ep # 124

by | Aug 3, 2022 | Podcast | 3 comments

Michael Lamothe is the founder of MARA Wealth, and is a successful author and trading coach. Mike’s trading journey began in the late 90s as a self-taught, part-time trader.  Despite beginning during the “dot com” era, and one of the biggest bull markets in history, Mike learned the hard way that there’s a lot more to trading than putting money in and simply waiting for more to pop out. After failing miserably on his own for nearly a decade, Mike discovered William O’Neil, his book “How to Make Money in Stocks”, and the Investor’s Business Daily Meetup in NYC. Learning from like-minded traders and professional money managers, Mike began taking trading more seriously, his confidence grew, and within a year, he not only became profitable, he became a Co-Leader of the NYC Investor’s Business Daily Meetup. Although he had found consistency, trading while working a 9-5 job was still challenging, and he often felt drained at the end of the day. Michael set out to develop systems and processes that could help him become more efficient. It was in this, that he learned that efficiency isn’t just about tools, tactics, or strategies. Efficiency starts in the mind with clear focus and beliefs. In this episode of How To Trade It, Mike shares how he finally broke free from the vicious market cycles of gain and loss by shifting his mindset. You don’t want to miss it! According to @MichaelGLamothe, efficiency starts in the mind with clear focus and beliefs. Tune into this episode of How To Trade It to learn more! #Stocks #Mindset #Coaching #MARAWealth Click To Tweet

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You’ll want to hear this episode, if you are interested in…

  • [00:49] How Mike got his start
  • [04:06] Mike’s turning point discovery
  • [06:58] Getting a system that works for YOU
  • [08:17] Launching the blog
  • [10:24] Boom & Bust cycles
  • [14:08] The need for mentoring
  • [16:54] Finding your own style
  • [18:27] More than analysis
  • [24:00] Knowing when to break the rules
  • [25:17] The Game Master analogy
  • [30:13] Mindset
  • [35:13] Trading-simple or complex

Fresh out of high school

At an early age, Mike knew he wanted to trade, but he literally didn’t know where to begin.  He walked into his bank and ended up getting into two mutual funds and a bond fund.  He was going to let the experts handle his money.  He was sure he was set for life.  Fast forward to the end of college, that money he invested and allowed someone else to manage was down 20%.  What?!?  Mike tried trading on his own, on and off for nearly a decade, all-the-while getting bashed by the markets. It wasn’t until he discovered the O’Neil method when reading a book, that he began to understand the ins and outs of trading.  Within a year, things finally turned around and brought some profitability.    

Beyond analysis

This is where the mindset part of trading really kicks in.  While technical analysis is good and has its place in trading, it’s imperative to understand our goals, and our beliefs (about trading, money, time, family, etc.) and have an understanding of the system that will help us meet those goals and allow us to trade in alignment with our core beliefs.  If any of those three things (beliefs, goals, or the system…or our ability to execute the system) are out of sync, then we are going to run into serious trouble.  

When can I break the rules?

The usual answer is “NEVER”!  Having trading rules to follow is an important part of being a successful trader. Be disciplined, in the moment. Follow the rules, in the moment.  But afterwards, when you are doing your post analysis, if you discover that your rules aren’t working, or aren’t producing the results you want, THEN, and only then, is it time to change the rules.  Again, this should be done in an orderly fashion, with a goal in mind.  It cannot be done in haste or out of revenge, or anger, or fear. 

  Resources & People Mentioned

Connect with Michael Lamothe

Connect With Casey Stubbs

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Disclaimer: Trading carries a high level of risk, and may not be suitable for all investors. Before deciding to invest you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment. Therefore, you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts. 

 

  • Tim says:
    August 4, 2022 at 12:42 pm

    Great podcast, Casey. As you know, following the rules too hard is my problem. This was extremely helpful to me.

    Reply
  • Raj says:
    August 7, 2022 at 2:10 am

    Good

    Reply
  • Raj says:
    August 7, 2022 at 2:11 am

    It sounds good

    Reply
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