It happened again.
I was riding an 8-trade winning streak…
My losing month in April was becoming a distant memory.
But like many traders I started to feel myself…and I got cocky.
I was quickly humbled after taking three straight losses.
Inconsistency in trading can be extremely frustrating.
It can feel like you’re spinning your wheels.
I know, because I’ve been going through it all of this year.
But I’m determined to work through this and get back on track.
Luckily, I have +20 years of experience to lean on. And it doesn’t hurt that I’ve made more than $7.4 million in trading profits during that time.
I know what it takes to trade at a high level consistently.
If you’re struggling with consistency in trading, I encourage you to read my story.
I’m sharing my experience in the hopes that it will help you avoid making the same mistakes I did.
Table of Contents
As humans we have a tendency to overestimate what we can accomplish in a few months to a year…and underestimate what we can do in 5 to 10 years.
For some that can be deflating. And it’s probably the reason why so many traders give up before they see the light at the end of the tunnel.
I made seven-figures in 2020 and in 2021.
Two of my best years ever.
Last year, I barely made six-figures.
But you know what?
I was actually proud of myself considering the overall market got destroyed and most traders got their butts handed to them.
And while this year the market is doing better, trading conditions haven’t gotten that much better.
That’s why I say there is a time for learning and a time for earning.
Right now you should be learning.
Don’t get me wrong…I wish I was doing a lot better than I am right now. But I also know that trading is a marathon not a sprint.
If you’re struggling right now keep the big picture in mind.
Study hard…you might not see the results now…but if you continue to make an effort day in and day out you will be surprised on where you are five years from now.
Four Things I’m Constantly Reminding Myself Of
#1 Focus on the process
With many of my favorite patterns not working in this market I’ve found myself testing out new strategies.
For example, this week I caught one of the largest gainers in the ticker symbol TCRX.
The stock had a great catalyst and I was dip buying it after a major gap up…
And although the stock doubled in price after I got out…I wasn’t down on myself because this was a relatively new trade for me…dip buying stocks that have pre-market news.
The reason why I got out is because the stock struggled to go through its previous long-term resistance. I had a reason to get out.
It just turned out I needed to be slightly more patient.
#2 Learn How To Cut Losses Quickly
I always have a trading plan that includes a profit target. But unlike many other traders I don’t use a stop-loss.
Or a price I want to cut losses at.
I’ll watch the price action…and if it doesn’t make the move I’m looking for then I will bail the trade.
Sometimes I will bail at break-even or for a very slight loss.
While I could do better with my patience…this approach has helped me avoid some big losses.
#3 Trade Small
In 2020 and 2021 I was not scared to slap size onto my trades.
Because the plays were working and the market kept feeding me opportunities.
However, that has all changed.
If you suffer a big loss now, it’s unlikely you will get a chance to make those losses back right away.
That’s why I would rather keep it small right now…
Now, you might be thinking: Tim, how do you expect to make money then?
No one I know is making big money right now…
I’m trading to stay fresh and preparing myself for when the real action starts.
If you can trade disciplined in smart in a crappy market…then imagine what you can do when things heat up?
#4 Trading Isn’t Scary If You Trade Scared
The other day I found myself in the ticker symbol MVST…the stock was up about 50% when I entered.
Pretty scary right?
It is…any time you trade a stock that is up 50,100, or even 200% …you never know when they are gonna pull the rug on you.
That’s why I go into these trades with small size.
And I’m typically buying off a dip.
And if you think like that…you deserve to get slapped.
The name of the game is always to live to fight another day.
Focus on risk first. And you’ll be surprised at how you view each trade after that.
If I was a newbie trader right now I wouldn’t focus at all about making money in this market.
Instead, I would focus on developing my skills.
Learning to take small losses, being patient for good setups, and refining my process.
I know it’s probably not what you want to hear but my job isn’t to paint a picture of rainbows and unicorns.