Learning from others
…is a vital part of the industry.
By looking closely at a student of mine, we will see a perfect example of how to make mistakes, learn from them, and still grow gains in the long term. I want you to realize that mistakes are part of the game; it’s your reaction to them that will make or break you.
To start, having enough capital to trade is important. However, if you only have the means to work with an account near $1000, it’s probably best for you to save and research the right moves for you. The worst mistake a trader can make is to jump in blindly, so take this time to find what patterns look like and invest in your knowledge, not the market.
The worst mistake a trader can make is to jump in blindly, so take this time to find what patterns look like and invest in your knowledge, not the market.
CURVING THE DOWNFALL
We want to curve the downfall that social media and the ‘get rich quick’ outlook can have. Draw a line between what you are capable of now and what possibilities your future knowledge will bring.
An initial mistake my student made was rushing and losing patience, which resulted in a small hit. By reorganizing his time, he built his capital back up to make profitable trades. One of his biggest winners for him was $GEVO. He was able to see the first green day and gap up pattern, before he shorted the stock at the top of the ticker. When the stock began to lose momentum, he started to swing it and covered near the bottom, which means his entire gain was on the downside.