A lot has happened over the past 8 years since I began teaching, most of it very good, but some of it bad and so I must acknowledge the bad and try to fix it. Just as I teach traders to refine, refine, refine their trading strategies, I too must refine, refine, refine my teaching strategies.
I won’t brag about any of my teaching success — I’ve done far more than my share of that already — this post will be specifically about the misguided approach too many students are taking and why they do it and the blame for it all lies squarely on me and the learning environment I’ve allowed to go on for too long and the steps I’m taking to improve that learning environment.
You see, 90%+ of people think that it takes “hot picks” to getting rich in the stock market and that’s just flat out wrong (perhaps that’s why 90%+ of traders lose in the stock market)
“Hot picks” are irrelevant, or worse, dangerous, since whenever you get a “hot pick” you will likely hear about it too late, be unprepared to act with a responsible trading plan in place and you will be chasing others who heard about it before you…the game of follow the leader does not work in the stock market, especially because the last guy to hear about a “hot pick” often buys at the worst time and becomes a bag holder not understanding what he or she did wrong.
This is one of the many reasons why traders lose, they jump into gunfights armed only with a knife (which in this case is a flawed strategy and misguided assumptions).
Instead, the key to success is learning to make a plan with your investments and stock trading and sticking to it, always optimizing and refining your process in the pursuit of success.
See what patterns and strategies suit your personality best and focus on your strengths while minimizing your weaknesses.
When you’re wrong about a stock, don’t freeze like a deer in headlights, don’t double up on your position, learn to cut losses quickly and not let small mistakes turn into potentially damaging disasters for both your account size and your confidence.
Being wrong stinks, but as a trader, you must get used to it and learn to manage the trades that do go bad. Small losses aren’t the end of the world and if you persevere with your education long enough, you’ll learn every which way of what not to do, then you will gradually learn what does work time and again and you’ll learn to focus on that.
While I’ve tried to do my best to reinforce these key lessons, I have failed in some regard because of my teaching style that has made people believe that it’s trade alerts and following the alerts of not just me, but also the top traders, that will lead to your success.
My countless video lessons, watchlists, webinars and commentary get far less views because too many students don’t want to study, they just want “the next hot pick”, mistakenly prioritizing trade alerts instead of time-consuming preparation.
As every single one of my top students can attest, that’s the wrong plan. As I have said repeatedly and reinforce in every single watchlist every day and every weekly webinar, NEVER follow my alerts or anyone else’s alerts and get it out of your head right now that you should rely on “hot stock tips” FROM ANYONE to be your key to getting rich…alerts should just be used to learn in realtime so you can see what gets successful traders in and out of a position and what they did right vs. wrong on the trade…sometimes small losses can even be considered wins (even the best trade setups can go the wrong way for many different reasons so small losses can be best-case scenarios)
My chatroom should be used for idea generation, seeing what hot stocks are in play so you can create your own plan and make the best trade you can, NOT to follow anyone else into or out of a trade.
The key to your ultimate success is based on your own studying, preparation and eventually assimilation of the best patterns, trends, rules and lessons you learn over time…success isn’t easy AT ALL, but with enough hard work and dedication it is possible.
I’ve tried trading with a small $12k account this year in order to teach, but whether I trade big or small, it’s the trade alerts that too many people focus on. And that is changing right now because it’s been my mistake to feature this much.
As of today, I’m not going to be alerting my trades on many of the hottest/fastest plays because I don’t want anyone to believe that I condone this whole “get hot stock picks” flawed mentality.
Instead, on fast trades like these I’ll be making many more live videos of my trades rather than wasting any time having to write out alerts/commentary to send out to students…these video lessons, some of which I won’t even be trading, just narrating and commenting on the price action and how to plan/structure potential trades, will be incredibly more useful/comprehensive than my text alerts as you’ll see my trades play out from start to finish on video after they’re completed (the longer trades where I hold several hours, I will likely break up into segmented video lessons.)
Secondly, I’ll be providing more commentary throughout the day on stocks I don’t have positions in just so students can better understand what makes a stock NOT a suitable trade for me, which is a hugely important skill to learn, as unpopular and unsexy as it sounds.
Third, in order to help students better understand the differences between good and bad trading setups, I will be giving away my new 11+ hour Trader Checklist guide entirely for free so everyone can be on the same knowledge level when it comes to trade preparation and trade management.
Again, these topics might not be as popular as alerts, but they are crucial in a student’s educational development process so I will focus much more on this kind of stuff…sacrificing the sizzle that everyone has become accustomed to and focusing on the meat of your education, even if too many students don’t realize it yet…but trust me, live videos of trades are going to be a game changer, even if I know many students will miss seeing so many email alerts per day (remember I’ll still be alerting many of my trades too)
Fourth, we’re getting rid of all private messages in the chatroom except for messaging to and from the chat moderators who we have hand picked to be able to deliver good, solid information and good, solid lessons to students…there is WAY too much misinformation/off-topic chatter being shared and we need to clamp down to make the chatroom a better learning environment.
In case you’re freaking out right now, remember I will still be alerting the vast majority of my trades and instead of beginning with $12k like I did this year, I’ll be starting with just $5k in 2017, I just won’t be alerting many of the fastest morning spikers where alerts can come too late — since the stocks move so fast up and down — as it’s been confusing for students who receive a buy alert for a stock at let’s say $2/share and because these stocks spike so quickly in 10-15 minutes in this hot market, especially near the market open, the student receives the alert when the stock is already at $2.50/share, a price level where I’m already looking to sell…you can imagine how discouraging that is, so this is my solution.
This way by doing more live video lessons in place of as many alerts, students will be able to see and learn from how the trade plays out from start to finish, no matter how quick the trade is, with my preparation and realtime analysis outlined in detail rather than just in a short alert abbreviated in order to get it out faster due to the stock moving so fast…in short a far better educational experience than what I’ve been providing before with a greater emphasis on EXACTLY what students should be learning.
My thanks to many of you for your input on this, I don’t take teaching lightly and I don’t make these changes lightly, but I really do think this new path will lead to more successful students which is all I want in the long run.
I have to thank in particular Tim Grittani, Michael Goode, Tim Bohen and Mark Croock for their input in helping me understand what students need most and in particular I have to apologize to my old friend Bao who has been trying to push me in this direction for a long time now…I miss our old friendship and I apologize for it taking so long for you to get through to me.
Every new trading strategy and teaching strategy is scary at first, but all you can do is plan, plan and plan to up your odds of success and that’s exactly what I’ve done here so I’m actually really excited about this new direction and cannot wait to see what every single one of you think about this new change…hopefully it’ll help you learn to plan and execute your own trades better!