Day trading no it's not as simple as waking up 10 minutes before the market
opens and starts banking lamborghini money within two weeks, but believe it or
not that's exactly why i thought why first started seven years ago. I thought
I knew it all buy low sell high how hard can this day trading thing be.
ell thinking like that got me to blow up a couple of accounts and begging on
the streets for money.
Now looking back after 7 years of trading and paying a lot of market tuition along the way here are
the top 6 things i wish i knew when i first started day trading
the first thing i wish i knew when i started day trading seven years ago is
START SMALL when i was a beginner day trader my
thinking was that the more shares i bought the more money i would make i
mean doesn't this kind of make sense that if i just bought 1000 shares of a
stock i would make a lot more than if i had only bought 10 shares; intuitively a
lot of new traders would think the same way like i once did unfortunately from
my experience this would be a very disastrous way to start day trading.
By believing that i could make a lot more money by taking bigger trades this type
of thinking make me go all in on all of my trades when i first started in
trading going all in literally means using all the chips you have most
brokers will let you trade with one to four margin so even though at the time i
only had a five thousand dollars account of my own money i was trading with
twenty thousand dollars worth of stock in a single position
and guess how that worked out for me well the first one or two times i did
this i actually made some money really quickly i made a hundred dollars here
200 there and when you are a 22 year old who just made more money in a few
minutes than you did after several days of working in a nine to seven sweatshop
there is no telling her to slow down well as it turns out those trades were
just beginners luck and that's extremely dangerous because beginners luck make
you think that trading is easy and effortless and guess what happens when
the luck eventually runs out i lost all of my money and i blew up my entire
account trading is very exciting i'll be the first to admit that when you get a
big win you feel on top of the world and you are certain that nothing can stop
you but when a big trade isn't going your
way your heart's pounding your palms are sweaty knees weak mom's spaghetti and
you feel like someone is holding a gun to your head
emotions are easier to control when you are trading small and it's much
different when you start scaling up so if you are relatively new to day trading
make sure to start with small trades and use that as an opportunity to learn the
process of trade planning and that's exactly the second thing i wish i knew
when i first started day trading is to create a solid trading plan when i first
started trading i was a follower a sheep and guess what sheep get slaughtered and
that's exactly what happened to me i got slaughtered in my trades i like to look
back and pretend i made a very nice donation to a family in need but that's
just the story i tell myself the reality is i was just following
chatroom alerts and that's not how you make money in a stock market
that's how everyone else makes money out of you whether a stock should be a buy
or a sell that decision should never be made because you see other people doing
so here is a quick crash course on the trading plan you need to have as a
beginner day trader before you enter a trade first what is your reason for
entering this trade is there good or bad news is the stock low float and highly
shorted second you need to find a good entry where is a good place to buy if
you want to go long or what is a good place to sell if you're looking to go
short third where are you looking to exit your trade hopefully for a profit
fourth and finally when and where are you cutting your losses what is the line
in a sense that tells you your original idea your thesis for entering the trade
was wrong and you better get out now before things get really fugly so if
you're new make sure you add the minimum have the simple trading plan we just
talked about so you do not end up being that deer in the headlights or if you're
from canada then don't be that moose in the headlights we have a free weekly
watch list sent out every single sunday the outline some stocks that might be in
play for the week and the trading plans for those individual stocks you can sign
up to the watch list for free down below moving on to the third important topic
on our list i wish i knew to treat trading as a serious career and not a
hobby well a lot of people are out there
trying to sell you the idea of a flashy day-traded lifestyle of drinking pina
coladas on the beach chilling in your lamborghinis or sitting on a toilet
while making millions of dollars from day trading that's simply not the
reality i know a lot of new traders joined the market because of the
pandemic people were working from home and in front of their computers but most
new traders are treating this day trading business like a hobby or just
gambling but that's just crazy you wouldn't just walk onto a field of a
professional nfl football game and hope that everything just works out for you
now if you were playing with the big boys you can't just expect to treat it
like a hobby and expect everything to be okay you would absolutely get run over
your trading account will get destroyed i know this does not sound very fun nor
sexy but i'm not here for that i'm here to tell you the bad jokes and to tell
you to hit the like button and subscribe and most importantly the hard truth
about day trading if you seriously want to day trade every day you are waking up
and competing with the best people in the world to make money because trading
is a true competition the people you are trading against are not treating this as
a hobby they are treating this as a career the next one is going to be a
crucial one whether you are a new or experienced day trader i wish i knew
when i first started day trading to focus on the risk before the reward or
profits at some point you are going to lose money in day trading losses are
inevitable it's part of the business however if you are focused on the
process of planning your trades and trading your plan you should be losing
less than you are making this is why risk management and having a solid
trading plan are essential these two factors were pivotal to my journey as a
day trader i wish i knew their importance sooner in trading it's not so
much about being right and making money all the time it's about managing what
happens when you are wrong for example let's take a look at two different types
of traders here trader a has a high win rate of 90 percent and he makes 100 for
nitrates out of 10. however because of his lack of risk management his one loss
of one thousand dollars could wipe out his entire week with the entire month of
hard work now let's take a look at trader b
even though he has a low win rate of only 40 percent when he loses he loses
50 dollars and when he is right he profits a hundred dollars or more
even though he loses more times than he wins he can still come out ahead and be
net green and that's the power of risk management
no it's not about the trading alert or the secret strategy or the top-notch
indicator on your charts it's about learning to create a trading plan and
exercising risk management accordingly if you do this you'll be profitable with
enough experience and back to trader a who doesn't have good risk management
guess what his name is you got that right that's my ex-husband
mike bagholder the fifth thing i wish i knew when i
first started trading seven years ago is that experience in the market is the
best teacher in the stock market people with money gain experience and
people with experience gain money and i wish i knew this when i started as a
beginner day trader so i would give myself more time and patience to learn
i wish i understood that hey there's really no rush here learning to trade
will take months if not years because truthfully you cannot consume years of
experience in a 10 minute youtube video or a few minutes of trading alerts brand
new traders entering the market myself included many years ago often wrongly
overestimates their knowledge and skills in trading because they simply don't
have enough experience and time in the market all the market tuition you're
paying in the first six months or a year they may seem pointless but it's
actually paying you a solid foundation to continue your screen time and
building your market experience now the sixth thing i wish i knew is the
importance of finding a supportive and like-minded community of traders and i
really didn't become successful at trading until i found mentors and peers
to learn from when i first started trading diy style i was extremely lost
yes i know there are hours of videos on youtube but it's just not the same as
trading in real time at first i joined some chat room alert and obviously we
don't need to talk about how that worked out because it didn't however i did meet
some traders who took the time to explain the thoughts process behind
their trading plans why they entered why they exited and where the risk levels
are and that's perhaps the most valuable lesson you can learn from experienced
traders to learn about how they think before during and after each win or
losing trade rather than just yo buy abc stock at one dollar and sell at two
dollars boom lamborghini money the good news about trading is that there are
experienced traders that came before us that have been successful not just in
figuring out this business but also in successfully overcoming their prior
losses that's the story of how i met my mentor and friend oren many years later
we still remain close friends and he is one of the head coaches in the humble
trader community he also has five lambos one for each day of the week i'm still
waiting for him to lend me one one of these days there's a saying that goes
you are the average of the company you keep and that certainly applies in day
trading surround yourself with traders who are supportive humble and who focus
on trade planning and risk management rather than focusing on banking easy
money so boys and girls ladies and gentlemen these are the six things i
wish i knew when i first started day trading more than 7 years ago if you
found this video helpful please remember to drop a like and subscribe if you are
interested in learning more about risk management trade planning and my day
trading strategies feel free to check out the humble trader academy link down
below thank you guys so much for watching as always i'm the humble trader
and i'll see you guys next time [Music]
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