It’s not an easy situation when you lose $10,000 in one day. I remember like it was yesterday when I decided to take out $25,000 in student loans in order to start this new day trading venture nearly 10 years ago. One of the goals that I had of for the Day Trading Academy after I was convinced to start training again was to be able to have a group of people teach, develop new strategies, and help others alongside me.
I don’t think that programmers or businessmen know how to day trade and for that reason they shouldn’t be developing any strategies since they don’t know how the market works .
I choose to make close connections with day traders that are trading live and making money because in the end, those people that are experts in the market, not programmers and businessman.
I have a great group of traders at The Day Trading Academy in addition to a phenomenal group of students that continue to learn. There is a great mix of expert traders that are trading live, new traders that are learning the ropes, and others that I would still consider beginners that are making money with our beginner system.
I also have day trading partnersthat help me to optimize trade setups in addition to help me with my own trading. In order to be successful day trading we have to understand that day trading is a continual learning process and if you have a group of people to help you it will allow you to become more successful.
I owe my success to keeping an open mind
If there’s one thing that I have learned from day trading for nearly 10 years it’s that anyone can teach you something, including brand new traders. I have recently made updates to the beginner strategy that allows people to make money while they are still learning to master the markets.
That idea came from a trader that’s been with the Day Trading Academy for only three months.
The first thing that we have to understand when you lose that amount of money is why it happened. Day trading isn’t easy, especially because of the psychology that comes with it, if it was easy then everyone would be day trading. Since we are human we are always going to make mistakes, the idea is to identify those mistakes and fix them quickly.
Understanding that were always going to lose money is something that is crucial, I have lost money and shared it willingly via the day trading blog. We should focus on winning rather than losing money because if we are able to make money most of the time, losing money isn’t a big deal.
My trading partner’s $10,000 loss was due to an Internet problem, not a bad decision or incorrect analysis. I have not had these kinds of problems before but my trading partner is using satellite Internet and when the Internet went out there was news that affected the crude market. Another issue was that when we to tried call the brokerage firm in order to exit out of the position no one attended the call.
By the time the position was closed the account was drained and the account was literally blown out.
In this kind of situation you have to consider the reason for the problem, in this scenario it was the Internet, followed by news, and then the brokerage firm. When trying to reconnect to the Ninja Trader platform the stops and targets were removed creating the perfect storm.
It wasn’t a bad decision or bad trading.
Considering that my trading partner trades crude with more focus on fundamental analysis, stops and targets are larger, and these kinds of things have happened in the past due to the erratic nature of the crude market.
If you ever have a really bad day trading and have your confidence tested sit back and think about these things. It’s hard to get back in the saddle with 100% confidence when you have this kind of situation, the only thing we can do is consider the variables and ensure ourselves that these things happen.
Day trading is as much about losing money as it is making it, the real traders who are successful are the ones that are able to get over these kinds of losses and keep at it.