In trading, mistakes are inevitable. You will have losses. We ALL have losses, and you can’t control when it happens. But you CAN control how you react. And that’s why it’s so important to learn what NOT to do.
Letting mistakes compound can bring your trading career to a quick end. Big losses don’t have to be part of the game. Read on for more about what not to do in trading.
Table of Contents
- 1 Soaking Up the Desert Life
- 2 Trading Mentor: Questions from Students
- 3 Trade Review: OTC First Green Day
- 4 What NOT to Do In Trading
- 5 Breaking News — Powered by StocksToTrade
- 6 Trading Education
- 7 Millionaire Mentor Market Wrap
Soaking Up the Desert Life
⚠️PROUD TEACHER MOMEN⚠️I dressed up as a UPS delivery guy to surprise one of my latest millionaire students @RolandWolf86 with a new $20k+ Kalamazoo Grill to celebrate his passing the $1 million profit milestone in just 3+ years since joining my https://t.co/EcfUM6l2S3 challenge! pic.twitter.com/Wn4G7oVvFe
I’m SO proud of Roland for passing the $1 million milestone. His new Kalamazoo grill is just a way to remind him of his dedication. The people who made the grill are so proud of their craftsmanship that they signed the inside. They want the new owner to know who they are.
THAT is the intensity I LOVE. And Roland has shown the EXACT same intensity in his dedication to trading.
Also last week…
I’m VERY proud to announce a new $50,000 donation from my recent trading profits to the amazing charity @SheldrickTrust which rescues & cares for baby orphaned elephants. It’s my honor to donate 100% of my trading profits to charity to help inspire more traders to give back too! pic.twitter.com/EU0xJ2n7M6
And, finally, the time came to cut my Jewfro…
The time has come to cut my Jewfro, & while I do I’ll be making a video about the #UighurGenocide that’s happening right now that too few people know about & that’s just sad! Please look up the #Uighur Muslims who need international help RIGHT NOW as they’re being tortured/killed pic.twitter.com/ppEKtS79E2
There’s a charity video coming. For now, please educate yourself on the plight of Uighur Muslims in China. They’re being tortured and made to work in forced-labor ‘re-education’ camps. It’s crazy. To spread the word, please favorite or retweet. Together — and with the power of social media — we CAN make the world a better place.
Now, back to trading…
Trading Mentor: Questions from Students
“Your ALPP trade was an OTC first green day, former supernova, multi-month breakout, with news. Why did you only take a small position?”
This question fits with today’s key lesson. One of the most important things you can learn in trading is what NOT to do.
Let’s break it down. First, here’s the ALPP two-year chart…
Now let’s review the trade…
Trade Review: OTC First Green Day
Here’s the ALPP five-day chart through November 19…
ALPP closed strong, but it hadn’t met my goals. It also didn’t close weak. It closed right around the sweet spot. So I decided to hold it overnight. I felt comfortable doing so because my position size was small.
As for why I took a small position…
What NOT to Do When Life and Losses Impact Your Trading
I’ve been a little off my game recently with traveling, a lot of filming, and being on the West Coast. (I’m not a morning person.)
There’s been so much going on. I’m not trying to make excuses. Just understand that we’re all human and sometimes life gets in the way. Sometimes you’re not completely in tune with the market.
The reason I took a small position on ALPP is because things haven’t been working.
(*Please note: My results are far from typical. Individual results will vary. Most traders lose money. I have the benefit of years of hard work, dedication, and experience. Trading is inherently risky. Do your due diligence and never risk more than you can afford to lose.)
Again, it’s crucial for you to learn…
Small mistakes/losses ARE FINE & part of the game, but big losses & not admitting defeat are not necessary if you know ahead of time what NOT to do — this is why I teach! I'm like Will Smith at the end of I Am Legend telling all the vampires "I can help you, I can save everyone"
I could have gone bigger. But since I’ve been busy and a little off my game, that would have been an example of what NOT to do. The right thing to do was size down.
The result? E-Trade gave me trouble when I tried to sell it at the open. (I use these brokers.) I could only sell 1,000 shares at $0.107. Shoulda, coulda, woulda got it all at that price. Sometimes there’s nothing you can do.
What NOT to Do In Trading
You’ll find the most success over the long run. So when you do have trading losses, don’t try to pretend they didn’t happen. Don’t block them out. Learn from them. Learn what not to do, and do better in the future.
Sometimes life comes at you. You have to say, “OK, I’m not gonna trade so much right now. I’m not gonna be so aggressive.” If you find yourself too busy, recognize that it’s part of the journey.
2020 has been amazing. And I’ve been on a hot streak. This is my best year ever … closing in on $1 million in trading profits.* But there’s a reason this year is going well. Yes, the market is hot. Yes, I’m prepared.
I protected my profits. I did the best I could and controlled my losses. And I also shared my losses. I talked about them in video lessons and webinars. (See details of some of my recent losses in this video.) The process of reviewing trades is key. It helps put things in perspective.
I was wrong on many plays. My recent losses, my busy life, and my schedule all impacted me. We all go through crap and we all have losses sometimes. Minimize your losses the best you can. And figure out what NOT to do…
Here’s a short list of “what not to do” tips…
- Do NOT hold and hope. When in doubt, get out.
- NEVER fall in love with a company. Ride the hype, but don’t believe it. Most penny stock companies are junk.
- DON’T get greedy in a trade. Singles add up over time.
- Do NOT size up when things aren’t going your way. Try sizing down. Respect your journey and the process.
- DON’T be afraid to adapt. The market’s changed. It will keep changing. You MUST learn to adapt.
So now you have a list of what not to do … What should you do?
This Is How You Get Ahead in the Trading Game
One final thing before we wrap this edition. Have you noticed the new feature on the blog?
Check it out…
Breaking News — Powered by StocksToTrade
At the end of October, we added high-value breaking news stories to the blog.
I’m so blown away by the benefits of Breaking News Chat that I want to share it with you. So I asked the Breaking News guys to send me news stories every day. But not just any story — only the most important news that affects the stock market…
Stories every trader should know.
The posts are super short, so you can read most in about a minute. The cool thing is that they’ll keep you up to date on market-moving news. So be sure to check the blog every day and read them. Your market education awaits you…
(Quick disclaimer: I helped design and develop StocksToTrade, and I’m an investor.)
Now you know the tools I use, and you have a better idea of what not to do in trading. But to really learn what to do, you need education. These are my top recommendations. Which you choose depends on your experience and dedication…
This highly acclaimed new guide jams three years of learning into 30-days. Thanks to Matthew Monaco’s organization, students are calling it my top trading guide. (Don’t worry if you can’t complete it in 30 days … you get full lifetime access.)
This is my fully immersive program for the most dedicated students. Keep in mind all my millionaire students are Trading Challenge members.*
And if you’re brand new to penny stocks and this looks interesting but overwhelming…
FREE Penny Stock Guide
And welcome to penny stocks … The potential is amazing.
Millionaire Mentor Market Wrap
Letting mistakes compound until you blow up your account is what NOT to do. Several traders have tweeted recently about this very situation. (In a very painful and introspective way.) Don’t put yourself in that position. Now go study.
What do you think about learning what NOT to do in trading? Comment below, I love to hear from ALL my readers!