Mariana’s Lessons on Trading Losses: Key Takeaways

• Two massive losses erased all her gains for the month and then some…
• Why traders must ALWAYS stick to the rules…
• Do losses hurt more with a bigger account?

Millionaires aren’t immune from making mistakes.

If they were, I might not have lost $500,000 back when I had a hedge fund. If you don’t know that story, check out my autobiography…

Even Mariana, my first female Trading Challenge millionaire, messes up sometimes.

Despite being an extremely diligent trader who’s made over $1.4 million in trading profits, she had a VERY rough month in August 2021.

Two big losses erased all of her monthly gains and then some. It was a big red month.

Losses like that hurt a LOT. But they can also be powerful teachers.

She’s been through the pain. What did she gain? Keep reading to see what Mariana learned from her biggest losses yet — and how they’ve made her an even stronger trader.

Don’t miss my recent interview with Mariana:

What Mariana Learned From Her Biggest Losses

Mariana had two really big losses in August of 2021…

• On August 5, she lost $49,538 on Robinhood Markets Inc. (NASDAQ: HOOD)
• On August 11, she lost $40,881 on Moderna Inc. (NASDAQ: MRNA)

These losses outshadowed her monthly wins, putting her $20,000 in the red on the month.

As you can see in her extensive monthly recap, these losses have taught her a lot about trading — and herself.

Watch to see what I did wrong and what I will do to fix it 🔽🔽https://t.co/40imOMdGWe

— • MARI • (@mari_trades) September 10, 2021

But this big loss for her monetary account turned out to be a massive investment in her knowledge account. Here’s what she learned…

Mariana’s Lessons About Loss #1: Every Trader Loses

From October of 2020 through March of 2021, Mariana was on a killer run:

• The market was so hot that she and her boyfriend, $8 million+ profit Trading Challenge student Jack Kellog, barely took any days off.
• She had some losses, but her wins far outweighed them. For instance, in February, her biggest loss was about $5,000 but she made over $600K.

But that was a very hot market. Things change.

When the market slowed down into the spring and summer of 2021, all of a sudden her top patterns on panic dip buys, first green days, and breakouts weren’t working anymore.

She started losing.

This happens to every trader at some point. The key is adapting to what IS working in the current market.

Mariana’s Lessons About Loss #2: Stick to the Rules

In the case of both of Mariana’s big losses, she wasn’t trading her go-to patterns.

She was deviating from her usual plan and didn’t cut losses quickly enough.

In retrospect, she recognizes that she was breaking her own rules. She was trying to force trades. Trying to get one last trade in for the day can be dangerous…

Don’t deviate from your rules! Stick to your go-to patterns. Trade like a sniper. 

Traders can use tools like screeners and market alerts to help search out opportunities … but be patient. Wait for the right setups, even if they don’t come that often.

Mariana’s Lessons About Loss #3: Don’t Fight the Market

In the summer, Mariana found that there was less hype in the market and the ‘unwinds’ were much bigger.

The more she tried to fight the changing market current, the more she lost. 

Her two big losses gave her a lot of clarity. She realized how much she was trying to resist what was happening in the market. She decided to stop fighting and to go with the flow.

While she considers going long her ‘home,’ she started shorting more because that’s where she saw opportunities.

Case in point: she made over $63,000 in September and reports that about $40,000 of it was from short selling.

Mariana’s Lessons About Loss #5: Don’t Fight Yourself

Mariana’s loss on MRNA happened while she was in Italy. I was there too, along with several of my other top students.

 

View this post on Instagram

 

A post shared by Timothy Sykes (@timothysykes)

Here she was in the most beautiful place, with amazing people, food, and views, and she had one of her biggest losses ever.

In retrospect, she wonders if she should have avoided trading while traveling.

Mariana values routine — so she was a little thrown off. Was she able to make the best trading decisions possible?

Losses are challenging for Mariana. She knows she’s not the type of trader who just bounces back. It takes her a long time to build back up.

It’s gotten even more pronounced as her position sizes have grown. Her losses are bigger, and they hurt more.

After her big losses, she stayed in a holding pattern of $1.3 million in profits for a few months. It took her time to progress past that hump and get to where she is now — over $1.4 million in trading profits.

In knowing that about herself, she’s motivated to stick to what works for her. Next time, she might think twice about trading while traveling and focus on enjoying her time off…

Experience account went supernova though! pic.twitter.com/bB3gthmvsI

— • MARI • (@mari_trades) September 10, 2021

Learning From Loss and Moving Forward

What has Mariana learned from her big losses? Here are some of her biggest takeaways:

• Keep grinding every day and STAY HUMBLE.
• Be willing to adapt when necessary.
• Use trading tools to track trading opportunities! Screeners and market alerts can help you find them faster but always do your due diligence.
• Keep learning every day. Here’s how you can learn from Mariana — she’s the newest co-host of TWIST and one of the featured traders in StocksToTrade’s Breakouts & Breakdowns chat room.

How did you overcome your biggest loss? Leave a comment and share tips, experiences, or lessons YOU learned. I want to know!