The Viscous Cycle: You Have To Make A Choice to Make a Change
“90% of traders lose 90% of their money in 90 days”
A common saying and pretty accurate. Almost all traders fail.
Most are just gambling for a hobby to see what it’s like and when they lose enough money they stop.
A few try and just don’t have what it takes for technical aptitude, but that is a very small percentage.
The majority who don’t just don’t try hard, or they do but no matter how many scans I give out asking people to start trying to find their own setups, I still see them posting on other subreddits asking “hey what does everyone think about this stock? should I buy it?”
I flunked math, dropped out of high school and college and have spent about 25% of my life in hospitals or ICU rooms and have been pronounced legally dead on 3 occasions so if you read my life story that started all of this you know I have no tolerance for people or endevour that waste my time or anyone else’s. More on that in another post.
Peoples ability to trade has nothing to do with their success so far. Every trader starts out unprofitable. Some just change that.
So are you a 90%’er or a 10%’er?
Does this sound like familiar?
- I place mostly market orders. Sometimes I place limit orders for my entry but finding stops that don’t get me taken out or profits that I can reach are things I just can’t figure out.
- When I see a setup, I feel rushed. I can sometimes get a fill on my order but it’s usually after some of the move happened so I either get half the reward or I’m selling after taking a draw-down.
- More trades run away after I sell them or turn against me after I get in than make me money.
- When I have nothing to trade I turn to chat, twitter, Reddit or other sources. I ask other people their opinions on stocks I am interested in, when I don’t even know this person or if I can trust them.
- I try to read and learn but I get so much conflicting information that there is no way I know who to trust. How am I supposed to know what my short and long term investment strategy, trading plan or risk tolerance level is when I don’t even know WTF that means?
- I am working as hard as I can with the free time I have but every day or week that goes by that I am not profitable I feel like someone who is running after a train leaving the station and I am always running to grab to the next topic but I did not even learn the last one.
- I start my sentences like this “When I become a real trader…”not “I am a trader and my goal is to…”
- I WANT MY FIND MY OWN DAMN STOCKS, MY OWN DAMN SETUPS, AND MAKE MY OWN DAMN ALL BY MYSELF!
That was me. For years and years and years. I really thought there was some kind of “real traders” club that I was not a part of where profitable traders shared information that allowed them to get in early on stocks. I thought you had pay money for indicators or scans or join clubs to have access to what the “pros” did. I did not know that they just work harder than everyone else.
I used to think not everyone could trade technically because it does require some technical aptitude (my mother). She’s highly intelligent but she is student of life, not of charts on a computer so she spends her time on practical matters to improve herself that way, not on technical aptitude.
Then I thought people who have any experience on a computer, and certainly younger than me, already have the skills in their soul from years of social media, internet, remote controls and all the other stuff we rely on and are naturally pretty good at (my sister) – they were the only ones who could excel.
After mentoring countless fellow traders over the past couple years and in this intense environment we have here, I now believe what separates people is life experience. Not that they need it, most people have it. They just have not learned from the many mistakes others have or perhaps a few simply have not had a significant enough reason to really want this*.* For themselves, their families, and generations ahead of them.
Today I am torn. I defiantly notice an urgency and real desire in the people who share on our “introduce yourself page” (less than 10) and already know that they are the people who will do better. Not just because of what they posted but because they did post. I invite people to join me on twitter all the time. I never advertise my twitter except on here for you guys. I only have a couple hundred followers and I like it that way. I could not care less if anyone follows me – I want people to reach out to me. Moreover, I want people who want to reach out to me. Those people succeed. People who do the work. People who make the effort. About 20 have reached out to me on twitter, Reddit or email and taken the time to actually have a discussion like a real adults. Plenty of follows, like and up votes, but not dialogue.
Do you see a pattern? The people who want this, may not know what a candlestick is, but they know damn well what they want or don’t want in life and they can articulate it. You also notice only about 5-15% of people here contribute regularly. That’s about the number of you who will make it according to that statistic. Sounds about right from my experience.
You have a finite amount of money and time. When they are gone you have to stop trading.
Pause and contemplate this this before you go on, please.
I understand that about 90% of people lose 90% of their money in 90% days. I know that trading is a skill-based trade like any other and the skill set that is used to perform this trade is called Technical Analysis and it is teachable and learnable. I do not know if I can do this, but I think with hard work and some guidance I can give it my all and find out.
I know that with my own money and all the freedom being a profitable independent trader entails, I have the power to spend on the things I want. Aside from nice “stuff”, what I really want is to not have to go to work all day for someone else. Even if I make good money, I don’t want to just have to save it until I retire or have to come home at dinner time every night and not be able to enjoy it.
If you love your job, that’s fantastic – you are lucky. But you can still start to set yourself up for success. You can do this part time very successfully and put your own retirement and your children financial freedom in your own hands instead of your companies 401K or a retirement fund. Or maybe you just want to be able to take a trip and spend an hour trading to pay for it. Wouldn’t that be nice? I need 500 dollars for 2 plane tickets. I’ll go make the money and book the flight right now. My A/C just broke. Let’s go pay for that.
I see that making my own money and having financial freedom enables me to spend my time on the things that interest me, the people I care about, the causes I am vested in, the pastimes I enjoy, and the education that interests me instead of just being an anonymous spoke in the wheel of a machine.
If that makes sense to you and you want to be in that 10% and not that 90%, I can help you do that. Please walk through this door and let’s get it done for you.
What I write is a culmination of years of classes and books and proper education. That’s why I am so confident passing it on, because others did it for me and asked me to do it when I become successful. None of it is proprietary so not only would it be hard for me to sell even if I wanted to.
You have everything you need, right here and all over for your to become a profitable trader if you want to. Whether you are a new mom to be or a star college athlete or a doctor in waiting (all members of our community), whether you want to trade for your retirement, for spare spending money or as a full time job, focusing on education and principals here will get you a lot farther, a lot faster, for a lot longer and a lot less pain along the way, than paying someone who’s goal is to keep you dependent on them so you keep paying your monthly fee. That is there business model. I know quite a few very well and even like them as people but they perpetuate a vicious cycle that usually results in people failing far more than they succeed.
This is not a complete package. I am just a trader so I don’t have the time or resources to do anything more elaborate. We tried a fundraiser but only three people donated and I was one of them. That’s fine but that means people will have to go outside of here and so some research on their own and you absolutely should. Get more opinions than mine and then decide. And if you want to find someone else, I can help you do that. Go out and explore and learn and make mistakes and when you are done or need guidance, I am right here. I never mind being challenged or questioned, as long as you are doing your part. Google things, watch videos, use my scanner I just put up and the setup I just posted. If you are not constantly profitable, what do you have to lose, right?
Your goal should be to stop using other people and start using yourself. You have to make tiny steps to make big ones and no one one but you will do that for you.
I believe anyone can trade. I just don’t think everyone wants to. I can spot winners (people) pretty quick and the least important thing about them is how well they trade. My favorite students have never traded in their lives so they don’t have bad habits. If you are here, you wouldn’t need anything I am offering so lets work together. Help me help you and your families and the people you care about. I think this is important work I think we are making progress. I am learning as I go and I hope you are too.
Preserve your capital. When you run out, you are done. Size small. Your objective right now should be to learn and gain experience and become profitable, not make a bunch of money. The harder you trade without learning anything, the faster you will run out of money. Paper trading is okay for learning your platform but you need to get in the emotional pool. The simple mechanics of trading that paper provides about about 10% of it. I have over 50 investing books in my library. 20 are on technical analysis and 30+ are on the emotional or mental side of it. You have to start experiencing that and you have to start making mistakes you can learn from, charts and trades to study that worked and but far more importantly, the ones that didn’t. But you cannot do this forever. You will run out of money so just start small. If you have 25k then just start with 5 shares of a nice 50 dollar stock. If you have 5k , buy 5 shares of a 10 dollar stock. Your goal as a new trader is 1. Stop losing Money. 2. Learn from Experience. Don’t get hung up on making money – you simply will not do it. You will get lucky but 99.99% of traders lose money for over a year before they ever make money for a year. So you have to plan for that fact and make your principal last. Once its gone, so are you. The money you lose is your fee for learning to trade. You get choose your own tuition fee.
Start finding your own setups. When you trade hot stocks, you get very inexperienced traders (sheep) and very good ones (wolves). I assume if you are here, you are not a wolf. I was not a wolf so I stopped trading hot stocks and started finding me own stocks. Ones that don’t have the yes of the world on them and a bunch of wolves devouring the sheep. The price action is much more pattern based and easier to trade and and you will improve much faster and have much more to study and learn from and experience to gain and that is the secret to longevity and independence.
Also, share. Share with me. Share with a friend, family, post here, twitter, Reddit anywhere. Make yourself accountable. Contribute , ask questions, say whats working for you and where yo need help. You don’t have to know the right questions to ask, I never did. Just do your best. You are here because I have information you don’t so obviously you wont articulate it perfectly and that’s just fine.
My dream is for someone to say “sorry, I’m moving up in the world. thanks for the lessons but I learned all I can.” Until that day comes, I’ll be here.
Finally, there are rare times when things just appear before you in trading. If you want to find your own stocks, you have to start trying. The biggest goals in life are achieved by starting with one tiny decision. I have posted scans and source code and indicators and what I would charge thousands of dollars for if if I monetized this. The only reason I don’t is because I hate sales and marketing.
If you want to start, get the volatility scanner I just posted. Go read about some stocks and find ones with patterns that look good to you. Find someone else’s, but you have to:
Make a choice to start to making a change.
You have to take the first step.
Good Luck. Be Safe.