Monday , 27 March 2017
Breaking News
Home » Lessons » 100 – 0 REAL QUICK: LESSONS IN GREED AND STUPIDITY

100 – 0 REAL QUICK: LESSONS IN GREED AND STUPIDITY

Recognizing and learning from one’s mistakes and the mistakes of others who affect outcomes is critical to eliminating problems. ~Ray Dalio

Well, what can I say, I messed up, and like they say in Texas “Remember the Alamo.” You bet your ass I will remember the Alamo…Like most Texans, I like to win BIG, but when I lose, well I lose BIG as well. What’s the point of being right if you’re not going all in? (Yup, you guessed it, I used massive leverage…overnight) That was pretty much my mentality this month, and it cost me dearly… To the tune of ‘I lost all of my winnings from 2015,’ give or take a couple $100… I got cocky, there is no other way to put it —I was rolling a hot hand, going weeks at a time without a single red day, making anywhere from $1K – $4K a week. So yes, I got extremely cocky, I ignored every rule that was ever jammed into my head by mentors and gurus, I guess you can say I went AWOL. I gave up conviction for wishing, tried to leap over buildings in a single bound, and landed right on my ass.

YOU HAVE TO RESPECT THE GRIND.

But this isn’t the end of my story, far from it, not quite the way I wanted to end my college career, but I will make do with what remains… Hopefully this snippet of pain can help others avoid the same mistakes. Because although we each have to go through our own battles in order to grow, it is much easier when we have others to learn from. Probably the #1 thing that I’ve learned from this experience is to be content with the “grind” and not be influenced by some of the big P&Ls that I see on twitter. As long as I am protecting my assets, and my account is growing, I’m a happy trader. On a lighter note, I am still very happy to be finishing my Undergrad, this Finance degree will make an excellent mouse pad :)I plan to return to my full-time trading schedule on May 11th, so until then, good luck & good trading!

PS – Almost forgot, here are my newly updated trading rules!

MY TRADING RULES

  1. ONE GOOD TRADE AT A TIME.
  2. 1/2 account is full position.
  3. NEVER hold margin overnight (intraday margin is fine).
  4. Never hold a losing position overnight, always reset for the next trading day.
  5. Never hold a position past 3pm if using margin,
  6. Never hold recent 52 week b/o’s overnight.
  7. If up $500 on the day and it’s before 1030am, bail until afternoon.
  8. Only scalp until there it is a confirmed backside/upside, then look for the ‘bigger picture trade.’
  9. Wire out funds if I’m up 10k on the day/week/month.
  10. Only focus on 1-3 tickers at a time, focused trading.
  11. Replace high expectations with process goals.
  12. That’s all for now…

 

Leave a Reply

Your email address will not be published. Required fields are marked *