Why do beginner day traders make so much money?
In fact, it’s really easy in many situations when people are just getting started not necessarily in the stock market but in the crypto market, the Forex market, futures market, but whatever type of market they’re trading, they’re making all kinds of money and it’s easy. And it’s actually, that’s very true. It is easy to make money as a brand new trader.
Day trading, swing trading, but why actually is that? And why do things kind of all of a sudden change where all of a sudden you reflect back like, ah, I was making so much money. What, what is going on? What, what happened? What changed? And I can’t say that I have like scientific evidence to prove this, but I will say that, you know, I’ve been on YouTube now since 2013, I’ve read thousands of comments. I have a podcast, I’ve interviewed over 300 people and there’s a common theme that comes about over and over again. And it’s not rocket science, so I’m not trying to come across like this is some sort of great discovery on my part. I mean, it just makes sense when you actually think about it.
So let me just kind of take you through a trader’s journey and hopefully you’ll see what I mean. So we have Tom, who’s got really small legs. And Tom is a beginner and he’s, well, we’ll drop that. We’ll go with the yellow now. Tom goes out there and he’s just making money. He’s just making money. He’s making all kinds of money but what is the context of this? Now don’t, if you’re somebody that’s a beginner brand new and you’re making all kinds of money, don’t be offended, okay? It’s just, consider it. That’s all I’m asking, is consider it. And I will say that you’re actually not stupid for maybe thinking this way either because it’s rational. It’s a logical thought process to have, but right here. This is what we call the ignorance stage. You’re just ignorant. You just don’t know. You don’t understand. You don’t realize. You don’t realize what? You don’t understand what? I’ll get to that here in just a second, because that’s what changes everything.
But when you’re ignorant and you just don’t know certain things, well then yeah, you can be out there and doing this and doing that and you know, making that decision and behaving in that manner and you can be making all sorts of money. There’s no doubt about it. Just boom, money seems to be just coming from all over the place.
And to be fair to defend you, to remain in that stage is fine. Because think about it, if you are doing something, and whatever you’re doing is yielding you what you want in this case, you want more money and you are getting more money by doing certain things. It would be irrational for you to say, I need to change. I need to stop doing what I’m doing. Even though that’s what you should be doing, for somebody that’s brand new, that’d be irrational, right? Why would I stop doing what’s giving me the results that I want? That doesn’t make any sense.
I agree and welcome to the tricky world of trading here, but that’s why people just stay in this stage and they can understand the stage and they can actually make quite a bit of money. Because when you’re in that ignorant stage, the money’s just coming because you’re it seems like anything you’re doing is yielding profits.
But, and this is one guarantee, I guess I can’t make it a guarantee. Maybe just maybe you have, you’re the first person in mankind that has figured out how to never be wrong when it comes to financial decisions. Like I said, so to be fair, I guess I can’t make this guarantee, but odds are you’re gonna make, and you’re going to experience this because everybody, I know Warren Buffett, all rich people have, and not even really trading, just in their wealth building, who remembers when Amazon tried to create their phone, right? I think failed miserably.
Does that mean? I just know it. Everybody’s not always going to be right. So at some point in your journey you’re gonna come here and it’s going to be that you are going to take a loss. You’re going to take some sort of financial pain and you’re ooh, no, I’m not saying you’re gonna wipe away all your, all your wins. I’m not saying you’re going to be now living in a cardboard box. I’m not being dramatic like that at all. All I’m saying is you’re gonna take some sort of trade, some sort of loss that is going to make a light bulb go off.
And again, I’m not saying that you lose all your money that you’ve already made, but I’m willing to bet a good chunk of it. Maybe not all of it, but a good, in some cases people lose all of it. People lose all of it and then they lose some of the original principle, but something’s gonna happen. And you’re just gonna take one to the face. And this is what, like I said we go up here. Don’t make fun of my drawing skills. Well, that makes the light bulb go on. And this is what we’re gonna call it. The how bad light bulb, meaning, you know you now are no longer ignorant. You know how bad it can get, you know just how nasty the markets can be. You know how bad behaviors can all of them really hurt and set you back quite a bit and frustrate you and demoralize you, you now know how bad the market’s trading could ultimately be.
And as soon as you know how bad it can get, that doesn’t mean you’re never gonna have success again. But it means, okay, I can’t be out here flinging stuff around like I was when I was ignorance, right? Because yeah, I realized that it did make me some money, but wow, by doing what I did here. And ultimately it got really bad for me and that’s not gonna be a sustainable way to go about it.
So I need to actually start to develop some strategy. I needed to learn about risk management, risk control. I need to realize that there’s a little bit more to trading than only putting in a stop loss right? There’s that’s great. You might be using that, but you start to realize, but things can still get really bad. Like I, I need to, I need to figure things out much more and hey, at that point welcome to now the challenging part of the markets. And it’s hard to tell somebody this again, because it’s not illogical to say, hey, I get it. You’re making a bunch of money right now but maybe you can reconsider how you’re behaving, reconsider your strategy. What are you talking about hater? You’re just jealous because you’re not making all the money I am. Okay. I understand. I get it. I understand you’re in this stage, you haven’t had the how bad light bulb go on. And I realized that a lot of people they think they know how bad it can get,’ cause they’ve read other people’s horror stories, but again, well, it hasn’t happened to me.
So I, my strategy, I have it figured out. I’m doing things the right way. It hasn’t happened to me. And to be fair to those people, okay. That’s a logical thought process to have. I mean, it’s not like you’re some sort of crazy person thinking that way, but eventually everybody meets and has their light bulb moment.
And then at that point it’s not too easy to make money anymore. It’s totally still possible to make money but you realize, all right, I need to go buy this in a much more structured way. I need to go about this in a much more risk analysis, risk controlled based way because now yeah, I know how bad it can get. So yeah, that’s why it’s so easy because when you’re a beginner, when you’re a brand new and just getting started, you just don’t know, you’re ignorant of what? You’re ignorant of, how bad it can actually get. You’re ignorant of just how nasty, how deceitful the market can be. And one of the market’s favorite tricks is by rewarding bad behavior.
And I talked about this in many of the past videos but that’s why trading is hard is because you can behave badly but the market will still here you go. Oh, you behaved badly again. Yeah. Take a little bit more. Oh, you did that again. You should not be doing that, but here you go, take a little bit more. And then all of a sudden, boom, just comes down on you and the boom causes the light bulb to go on. And at that point you will never be the same when it comes to trading and investing, because you now know how bad it can get.
And that is why, you know, if I can even just reach one beginner trader and say just consider that maybe you just haven’t had your how bad light bulb go off yet. Then I’ll, you know, I’ll count this as a mission complete and a successful video, but for other people that are maybe kind of wondering what changed, why is it now so hard? It’s because you’ve had the light bulb go off. And good, that that’s a big step in a trader’s journey.
So don’t get discouraged, that you’ve had that light bulb go off, look at it as a massive progress point because now you know that it’s not as easy as what you may have thought it was. And that it’s gonna take a little bit more work. So hopefully this helps, hopefully this can either get the light bulb to goon to somebody and not have them take a big loss. Or for those of you that are maybe discouraged or kind of second guessing themselves, you can understand now what’s been going on in that in all actuality it is a good thing.
So hit that like button, leave a comment down below. If you have any thoughts or suggestions for future videos and also check out the channel as a whole, there’s a good variety of videos. And hopefully you like what you see enough to hit that subscribe button as I would love to have you as a subscriber to the channel.
First off, so much for watching the entire video. Real quick before you go, I want to invite you to a live webinar, web class, training, workshop, online event, whatever you want to call it but it will be me live, revealing to you. What I discovered that has allowed me to transform myself from being an employee, to being my own boss, including how I had only one losing day out of 73 days in total. I’m gonna cover three keys that have helped me unlock profitable consistency within the markets.
The first key is super weird, but in a productive type of way. The second key is super awesome because it quite literally is wired into our DNA as humans making it very easy to use, but in a cruel way this becomes a pitfall for many traders. I’ll explain it all though, including how to avoid the pitfall that it creates for some.
And yeah, the third key when you hear it sounds way too good way too good to be true, but it’s not. And I’ll show you how it all works. Then at the end, I open it up for a question and answer session that is again, totally live. Even if you can’t make the live session, please still sign up as it will be recorded and you can go back and watch the replay that I will send you.
Click the image on the screen or click the link down in the description box so you can get the date and time and claim your spot, which I should note is limited due to the fact that this truly is a live event. If you have any questions, let me know. If not, I’ll be seeing you soon.