A community favorite of mine is back to update us on her journey. Rena (same name in the chatroom) is someone I admire greatly. I’ve met her in person on multiple occasions and she is someone who we can all learn from given her willingness to talk about anything and everything, particularly the “bad stuff”. She’s a solid trader, no doubt about it, but like all traders she suffers from certain voices that have caused her hiccups. She has pressed on through perseverance and encouragement and has turned the corner in her trading. She’s on the right path, now it’s just a matter of staying laser focused to remain on the path (which she is doing a great job of!). Don’t miss this episode, let’s get to it!
Today we revisit with Rena. As we learned in her last podcast, her son was a large factor in her getting back into the market at a serious level. He has had quite an interest in the market and it was something they both had in common.
While Rena has had many successful trades utilizing a rubberband type strategy, the problem she has is managing the ones that do not work. Those losers ultimately wipe out a month or more of profit in one shot.
She wanted to start 2018 on a clean slate and decided to close all of her positions. This led her to take a $30k loss but the important thing here is that there is no psychological baggage for her to carry into the new year.
Volatility picked up in Februrary and this led to some losses for her ‘farm’ account. However, she was still able to keep her losses to only $1,000 by utilizing day trading to take advantage of the intraday volatility.
Rena decided to reduce her account size to ensure that she wasn’t even able to take a huge loss. This size account led her to a ‘death by 1000 cuts’ since she was mainly playing defense instead of playing any offense.
After a good conversation with her husband, Rena realized that if she didn’t take any huge blowout losses she could always recover. She is content to take 1-3k losses because she knows she can make that back up. She has now been green the last 6 months after this enlightening moment.
One of the reasons I kept getting back into the market was my son was interested from about the time he was a freshman.
I never thought I would be that stupid to max out my account on one bad trade.
I got rid of everything I had to start 2018 on a clean slate.
The people in the chatroom know way more about my losses than my wins. That’s when I need support. They keep me accountable.
Can I make this loss up? Because 99% of the time if I get out with even a 1,000 dollar loss I can make that up.
I’ve had a fairly healthy balance with money. I know what it’s like to have money and I know what it’s like to have none.