What I Learned From My $100k Day Trading Mistake

What I Learned From My $100k Day Trading Mistake

What I Learned From My $100k Day Trading Mistake 1024 546 Steven Dux

I would love to tell you that I’ve reached a point where I no longer make trading mistakes, but no one will ever get to that point, not even the best trader in the world.

I still make them. Lots of them, in fact.

And sometimes they cost me A LOT of money. Like $100,000 in a month, for instance… Yeah, those kind of big mistakes. But we’re getting ahead of ourselves. Let’s step back a little and think about the role mistakes play.

Because as a beginner in any field, it is common to make them. Some happen due to lack of experience, some due to normal human error. And some because you forgot to pay attention to outside factors!

Not paying attention to outside factors can lead to some of the most common day trading mistakes. In the world of trading, a lot of these mistakes can prove to be hugely expensive. Many beginners start without any intraday trading tips plus without enough knowledge, and as they say, a little knowledge is a dangerous thing.

With a good amount of the right knowledge, solid mentorship, and discipline, many mistakes can be avoided.

The Role of Mistakes

And how to avoid them.

I’ll be the first to admit, I’ve made my mistakes and a few costly ones at that. I share some of them in this video.

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I’ve learned lots of lessons in the process, but the interesting thing is that mistakes often help me identify new opportunities.

While many people focus in and hone in on their mistakes and try to completely avoid them outright, I use them as an opportunity to learn. I realized that there was a major shift in the market and that I needed to readjust my positions and because of this mistake, I was able to have one of the most profitable months in my entire trading history, breaking the 7 figure mark in one calendar month.

Earning an astounding $1.15 million (read all about that here).

As the pandemic numbers were rising, there was also another source that hit rapid growth. Robinhood, a popular, yet not so reliable stock trading platform. New accounts skyrocketed from 2 million to 12 million (which was probably the very first mistake each of these day traders made, considering how ineffective their platform is for true day traders).

Day traders were gravitating towards the stock market. As many people began entering into a market that they didn’t completely understand, it triggered an unexpected rise in trading volume in the market. And as more people were laid off from their jobs and forced to find alternative ways to earn a living, the stock market seemed like the place to be. But just following a trend isn’t going to solve your problem.

When we are set on our careers, we usually go through college for four years and get a degree

…then use that knowledge we obtained from school to earn money to provide for our families. But when people are opening stock accounts, there aren’t any real resources out there that will teach someone how to effectively day trade. Even though many people are able to start trading in the market immediately, they haven’t had the time to initiate an action plan to succeed.

This causes so many people to end up taking losses almost immediately and then feeling like they made a mistake and get turned off from the market. What a day trader needs, however, is the right guidance and experience to maneuver in the market correctly.

Because I’ve seen so many beginners take hard losses, the last thing I want to see for my students and the people who work with me is for them to see losses.

I'm an open book

when it comes to my failures and my success.

While most other mentors out there trade by the gut, they try to teach other students to learn to trade the same way. But that isn’t replicable. What I do is rely heavily on statistics and analytical data to ensure my students succeed with patterns and strategies that work, time and time again. 

If you’ve had time to look through my YouTube channel or my Instagram, you can see that I have had quite a blessed life thanks to trading. But what people don’t see are the lessons I learned behind the scenes, such as when I put up stock charts all over the walls in my dorm room and when people came into my room, they looked at me as if I was a mad scientist. I want to be clear here. Day trading isn’t a quick way to get rich. It’s a long road that is filled with lessons, which, with dedication, can translate into success. 94% of people in the market get wiped out. That’s because only 6% of traders know what they are doing.

So in order to succeed in day trading, you need to work with someone who knows all of the intricate little details of the stock market THAT MATTER and knows how to teach them to you. If you do it right and avoid the mistakes, then only you can become a part of the 6% who succeed.

Even though that percentage seems less, there is tremendous potential to make a lot of money...

…no doubt, which is what attracts newcomers to day trading in the first place. That’s why it is easy to get caught up in the whirlwind and start to make mistakes. When I made these mistakes that I’ll share with you today, I lost about $100,000. But I learned from these mistakes and then I did the unthinkable… having my biggest month ever just a few weeks later. This does not happen overnight. It has taken me plenty of mistakes and years of trading to arrive at a point where I can turn my mistakes into opportunities.

You can do this too, and turn your life around. Trading can be a profitable career as long as you’re winning more than losing. And that can only happen by reducing the number of mistakes and learning from the ones you will inevitably make. So this is an extremely valuable lesson. Make sure you go through this article thoroughly, take notes and also bookmark it to come back to it as a regular reminder to stay on track and avoid these mistakes.

The BIG Lessons from my $100K mistake


Day Trading Can Be Impacted By The Markets


Markets can be volatile and of course, not immune to outside factors. Stock prices can get affected by big global events and we must be aware of this. It is not that uncommon and happens every single year. We have seen it happen with COVID this time and next year it could be something else. The markets in 2020 have seen major volatility as we have gone through a highly unexpected event that had a huge impact.

There are many factors that can have a massive impact on how the market performs day-to-day. Stock prices and the stock market, in general, can be affected by world events such as a pandemic, political unrest, or natural disasters. Stock prices can also be impacted by hype regarding a company or its new products. The market goes through changes based on volume.

The market goes through changes based on volume.

And when these kinds of major shifts affect the market, it will definitely increase the volume. Invariably, it will catch you off guard. What you have to do is to stay aware and take a pause as soon as you make the first mistake.

Why did this happen?
Did any outside factors make an impact here?

If yes, you make adjustments to your approach accordingly. The idea here is to look at the holistic picture and figure out which outside factors affected the market and led you to make this mistake. Always pay close attention and monitor the market constantly. Just like this year, anything can happen at any time so with trading, the phrase “expect the unexpected” is quite true.


As The Markets Change, You Must Adapt

In the world of trading, change is unavoidable. As a trader, if you want to stay on track, you must adapt to inevitable change before losses begin to knock on your door. Like I mentioned in this particular video, the mistakes I made due to the market changes pushed me to adapt and I made even more money than usual the next month.

What should you do when markets change?

Stay Calm

Irrespective of the kind of change that comes up, you should learn ways to foresee and fine-tune your way of thinking. Day traders who have not adapted to unexpected changes are prone to fail. But that does not mean you should freak out because of these changes! Emotions like fear will make things worse and your journey ahead difficult. Remember that change and adaptation is part of the game.

Try to stay calm, keep an open mind, and adapt to changes. This way, you will not have difficulties with your past mindset, strategy, and approach and you will be able to quickly move forward.

Stay Informed

It’s essential that you stay on top of your research on the market so that you are always informed of any possible changes. A mentor can help with this aspect immensely, as it takes experience to spot these changes.

Slow Down

When the markets change, you might be tempted to go with your gut and run with your emotions. But it’s more important than ever to look at the data, use logic, and go by the numbers. Like it or not, the markets are prone to changes. So we cannot get complacent and we better learn to adapt to changes as quickly as we can.


You Will Make Mistakes, But These Are

…Opportunities To Learn

When we don’t learn from our mistakes, we get stressed and we risk losing confidence. Remember, some of the most ordinary things you have learned in life, you learned thanks to your initial mistakes. Whether it was something as simple as walking or as advanced as your education. You learned everything by doing, making mistakes, and correcting them. 

Even in trading, each mistake is a stepping stone to making a greater profit. I don’t think mistakes are a bad thing. It’s an essential part of the journey that everybody has to go through. For every trader, it is important to be patient. It is great to avoid common mistakes by learning from a mentor but you’ll still make some mistakes. That’s just how it goes. These are your opportunities to learn and make even bigger profits than you imagined.

Some losses are a part of the process of heading towards big profits. The mistakes I made, the ones that cost me $100,000, were probably some of the best things that ever happened to me. I say that because one of the most profitable months I’ve ever had came right after those mistakes occurred and I recognized them.

Making mistakes is a part of learning anything new and trading is no different. In fact, some mistakes here can lead to bigger rewards because sometimes you just need to learn the lessons yourself. Mistakes force you to shake yourself out of complacence and take a second look at your strategy.

This is precisely how you adapt and how you level up your life and career (so long as the strategies you choose work more than 65% of the time).

Even when I started, I have made my share of mistakes in the beginning and I could have lost my entire portfolio.

I would never have been successful in trading if I had not taken a step back and analyzed what I was doing wrong!

I would say the key to my success has been to learn from my mistakes and turn them into opportunities. No one likes to make mistakes and lose their time or money. Especially a trader.Mistakes here can be expensive! But that is the nature of the game. You win some you lose some. And then you learn and win more.

“By seeking and blundering we learn.”
― Johann Wolfgang von Goethe

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