If you’ve traded for any decent amount of time, and are being honest with yourself, I’m sure you can probably relate to our guest in at least one regard. Tim (chat room alias, “Toggs”) found himself using the strategy of “hoping” a stock would go in his direction, after it already had not, instead of just cutting the loss. This strategy is one of the many interesting rabbit holes we wander down with “Toggs”, and as always, through some of his painful experiences, we are all able to learn something… free of charge!
Notes:
Tim’s introduction to the market was the talking baby eTrade commercial during the Super Bowl. He limited his risk by only deciding to start with $500 dollars.
After doing plenty of Google ‘research’ to find his stock picks, Tim ended up on Stocktwits following the recommended tickers that he read about.
Tim went on to learn about options in a very basic sense and started trading some larger, more known names now. Unfortunately, he got blown out on an earnings trade which led him to have to reload his account.
Realizing that he needed to get educated from someone with experience, Tim jumped in and joined ClayTrader University. He listened to Shawn’s podcast and got his options account up to $250 to begin putting to use his new knowledge.
While a ‘brain fart’ led him to losing $120 of that account, the 98% of the time he is trading he continues to develop good habits. While making $10 does not seem appealing to many, with proper risk/trade management, these gains can further be compounded in the future. He is laying the groundwork that will pave the way for future gains in Tim’s account.
Quotes:
“I think it was just finding that Robinhood app and deciding to try this again. See if I could learn a little bit more.” tweet this quote
“I made a second trade and it went against me. I thought, maybe if I hold on to it that it will bounce back. That was my strategy.” tweet this quote
“I felt like I had to look at myself and realize how much I do know and realize I have a lot left to know.” tweet this quote
“I just want to get good at visualizing the chart and knowing what movement I can expect it to go.” tweet this quote
“If you’re losing in a trade don’t wait for it to bounce. Just get out, cut your losses and find a different entry point.” tweet this quote
