It’s different for everyone, but many times, the wake-up call in regards to, “Hey, slow down!” comes in the form of a nasty account fire. Thanks to some very honest candor on this episode’s guest, Josh, we all get to see (or reminded of) how dangerous the markets can be when approaching them without an actual plan. Sure, it never feels random at the time while everything is playing out, but just because things seem to be going okay does not mean you truly have a logical plan in place. From where Josh started to where he is now is night and day; however, he still has room to grow and plenty of things to work out, including trade management which we dig more into with some live coaching. Josh is a solid guy who offers up many things that others may not disclose, but in doing so, he helps bring a very realistic light to the pitfalls of trading.
Notes:
Today we talk with community member Josh. His introduction to the market was during his time in the military. At this point in his life he did not have any time to spend getting educated further on market principles.
Josh’s friend was big into marijuana stocks. This was toward the tail end of the big pot stock run that happened 4+ years ago. Following his advice he took his account from 300 dollars down to 80. This is when he realized he wanted to learn from someone who knew what they were doing.
After investing in his education he began to practice. He waited until he had over a 50% success rate before he decided to fund a live account. Since he has a full time job and doesn’t have time to focus on the charts all day, Josh decided to swing trade using the daily chart.
Currently Josh is struggling with management of trades. While he has a great hit rate, if you trail your stop too tight you are hurting your overall profit by cutting good trade ideas short. After digging into his feelings toward money, Clay determines it might be best for Josh to reduce his position size. This should help him stomach losses easier and hold winners longer.
Quotes:
I tried to trade a couple. One worked. Another I had to hold for about a year and a half.
Originally I tried using the 15 minute chart and riding it all day long but that didn’t work. Now I use the daily.
I had more success with the breakouts instead of the pullbacks. I kept getting whipsawed out of the pullbacks.
It makes sense but I have to get over this mental thing I have about it. Nobody likes to lose but I don’t go crazy if it goes against me.
Discipline, consistency, and don’t cheat yourself.
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