Imagine I strapped you into the driver’s seat of a Formula 1 race car…

The engine’s roaring, the crowd is cheering, and you’re in pole position on the starting line.

Millions of dollars are at stake. You’re surrounded by the world’s best drivers….

…but your only experience racing is from a go-kart track.

It’s safe to say, you’d be a little nervous. You simply don’t have the experience you need to succeed at such a high level.

The same goes for trading. You have to put in the work… and the training… before you can be a successful trader.

But you don’t have to do it alone.

Let’s revisit the same scenario from above. Same car, same crowd, same stakes.

Except this time, you’re wearing a headset with Michael Schumacher on the other end – one of the greatest drivers to have ever raced Formula 1. He’s giving you turn-by-turn advice for each curve on the track.

You’d feel a lot more comfortable with such an experienced mentor helping you out…

Becoming a trader is like anything in life. If you want to be good at it, you have to start somewhere.

And there’s no better place to start than by learning from someone who has already paved the way.

It’s All About the Process

First and foremost, a good mentor provides a process to follow.

Most traders struggle because they have no real process. They take positions willy-nilly, with no concern for position sizing (making sure each trade is the right size), or an exit strategy.

It’s a make-money mentality… but with no firm plan.

And to be a successful trader, you must have a plan. You need to know why you’re taking a trade… how much you’re willing to lose if it goes against you… and when to take profits if it’s a winner.

Taking a loss is one of the hardest things in trading.

Successful traders know that it’s part of the process. They keep their losers small and know that it’s all about making money over time.

But rookie traders tend to hold on to losing trades in the hope that they’ll turn around. When you do that, small losses can quickly become big losses.

It’s a crucial piece of discipline that’s extremely difficult to just figure out on your own.

Having a mentor show you how to execute trades, explain when to get in and when to get out, and show you how to control your emotions along the way makes things a lot easier.

I’ve had a few mentors throughout my career. But one sticks out… because he saved my career.

How I Found My Mentor

I started out on the trading floor of the Chicago Board Options Exchange (CBOE) in 1984. It’s one of the world’s largest options exchanges.

Back then, most floor traders didn’t go to college. They learned everything on the job.

I went to college, which meant my colleagues had the advantage of four years of experience on the floor ahead of me. I was blind coming in. I had no idea what was going on.

So I needed a mentor… badly.

Naturally, I was drawn to the outlier traders – the one or two guys who were able to consistently grow their accounts without taking on big losses.

One of those guys was Larry LoVecchio. I worked under him at Spear, Leeds & Kellogg. The company eventually got sold to Goldman Sachs, but it was one of the leading trading firms at the time.

He was the best mentor I ever had. He taught me the discipline that I never had. I’d watch him in awe – not just his performance but also how calm, measured, and unemotional he was as a trader.

Meanwhile, I was like a wild stallion that was out of control. I had the “it” factor – aggressiveness and the will to win – but I didn’t get how to make it all work together.

LoVecchio was aggressive but also extremely disciplined. He knew when to take risks and how big of a risk to take. He didn’t overleverage his trades, and he never let his emotions get ahead of him.

That’s why I say he saved my career. Before I met LoVecchio, I was just throwing all my money into one trade, swinging for the fences… and usually missing.

It’s not easy to bounce back, time after time, after you’ve lost it all. And in my early days, I lost it all several times.

I might have wound up quitting had LoVecchio not pulled me under his wing.

Free Trading Resources Have you checked out Larry’s free trading resources on his website? It contains a full trading glossary to help kickstart your trading career – at zero cost to you. Just click here to check it out.

Start Small

The critical lesson he taught me was the importance of position sizing.

Other traders would throw too much money into trades… hold on to losers too long… freak out at their massive losses… and get wiped out.

But thanks to LoVecchio, I learned to cut my losses early. After booking some wins, I could size up to bigger and bigger levels comfortably.

That’s why I recommend all new traders start out small…

Start with just one trade a day. And keep your position sizes small. In other words, put only a tiny percentage of your overall capital into each trade.

Then after a while, you can increase the number of trades you make… and their size. But only when you’ve learned the ropes.

I eventually learned this lesson. But I had to watch someone else do it first. I had no other experience to draw from.

Now, roughly four decades in, it’s my turn to be the mentor.

It’s why I started my trading advisory business, The Opportunistic Trader, as well as this free e-letter.

It’s the culmination of my 40-year trading career.

Using simple, easy-to-follow recommendations, I aim to help folks like you benefit from the strategies that made me one of the world’s most successful traders.

I also do my best to pass on the insights, strategies, and lessons I learned along the way.

It’s the best way I know of for regular folks to access hedge fund-level strategies and consistently make market-beating returns.

And that’s why I want to put one of my advisories on your radar.

One Ticker Trader is my entry-level service. That makes it perfect if you just want to try dipping your toes in the water. If you haven’t traded options before, you’ll get the information you need to get started, step by step.

Even better, we focus on just one trading idea each month, so it’s not a huge commitment of time and energy to follow along. But we’ve been able to fast-track wins to help traders get on the path to their financial goals.

I’d highly recommend you give it a shot. To learn how, you can go right here for all the details – and a special offer.

Regards,

Larry Benedict
Editor, Trading With Larry Benedict