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?
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:
Table of Contents
- 1 What Mariana Learned From Her Biggest Losses
- 2 Mariana’s Lessons About Loss #1: Every Trader Loses
- 3 Mariana’s Lessons About Loss #2: Stick to the Rules
- 4 Mariana’s Lessons About Loss #3: Don’t Fight the Market
- 5 Mariana’s Lessons About Loss #5: Don’t Fight Yourself
- 6 Learning From Loss and Moving Forward
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)
As you can see in her extensive monthly recap, these losses have taught her a lot about trading — and herself.
Mariana’s Lessons About Loss #1: Every Trader Loses
- 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.
She started losing.
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.
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…
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.
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.
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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.
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…
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!