Trading is a very difficult sport. The representation of trading within the Financial Media Entertainment Complex is sensationalized and is intended to first entertain.
Trading is a skill. You must build skill, then your PlayBook, and then you will be able to navigate yourself toward becoming a Consistently Profitable Trader. It’s not a game of guessing, no-edge predicting, IQ, luck, false “conviction”, or faux über confidence. It’s the perpetual search for a slight edge with trades that make the most sense to you and you can manage in real time.
Good luck saying that about trading on TV.
This trader below got some of his start right. Well done by him on this. But as he admits it wasn’t enough. Learn below what he found was missing so that you can avoid making this trading mistake.
I wanted to personally thank you both for what you are do for the trading community at SMB. Today will be my last day trading, and I will be ending my membership as well. Not because of your service, but after my last blow up today, I realized that I cannot control myself to be an effective trader. Today, I asked Steve on his morning meeting (two days in a row) about two stocks I wanted to trade. QCOR and ITMN. Steve suggested that these were not the best stocks to trade based on his experience. I did not listen, and then lost all my money today in QCOR. I wish I had listened, and now my money clock has ran out because of my foolishness. I used to have the mentality that no matter what I would not quit this business. But today I am. How can I tell my wife, that every few months I blow through 5K in risk capital? I could go on trading, but I just cannot stand another loss. What really bothers me more than anything is that I could have used half the money to take one of your courses, but I thought I could do it on my own. I hope other traders listen to you guys because wisdom from trading experience is a powerful tool to help you succeed in this business. Thank you for what you have given to the trading community.
A huge thank you to this trader for allowing us to share his journey as a teaching lesson with the trading community!
7 Comments on “A Lesson from a Failed Trader (for Now)”
“Today, I asked Steve on his morning meeting (two days in a row) about
two stocks I wanted to trade. QCOR and ITMN. Steve suggested that these
were not the best stocks to trade based on his experience. I did not
listen.”
I wonder what the premise was for Steve not liking these stocks?
Some stocks behave well some don’t. An experienced trader knows this.
It took me years to learn, with a teacher.
I am failed trader too and know precisely what he is going thru . But the pain from giving up was too strong to give in and I would lost the pleasure from what I really liked to do . Instead of giving money to the market I started paying for quality education without thinking about the cost . I would lost the money anyway . Today I am in position that the cost for education is starting to be financed not from me , but from the market !!
Unless it was a whipsaw day, in which case after a couple of small losses you would realize it and give up, QCOR obviously traded well for someone.
So fighting the trend to death is the sign of a terrible trader trait, bias, lack of flexibility, and a need to be right. The first thing to cure for any trader. If it cannot be cured, you must stop. Oh, and you cannot rely blindly on the advice of others, as even successful traders have weaknesses that can be identified and/or punished by a changing market.
Excellent resilience!
I must send my condolences to that trader who lost on qcor, the chart does look pretty gnarly, although I would hesitate to say he should give up completely. I mean most financial institutions are leveraged (in debt) to their eyeballs, so you should not take a days loss as a trend of behavior but rather a painful aberration. Keep at it, revamp your strategy, look into diversification methodologies, etc. Just don’t give up on it if it is something you really want to do.