Horrifying Millionaire Day Trader Lessons

http://www.guerillastocktrading.com/technical-analysis/master-millionaire-tra... There were so many mistakes that I made along the way to losing everything. Clearly I was quite depressed about how much I had lost. What made it even more sad was that it was my entire nest egg. That money was everything to me. It was all my hopes and dreams, particularly when you compound this amount at some 4% or 5% for maybe 40 to 50 years ahead of me. I sat down long and hard, reviewed all of my errors, and tried to understand my stock trading and investing lessons. My wife asked why I was doing it at all, waking up at 6:00am PST for so many mornings to trade stocks, reading hundreds of books about stock trading, and yet I had zilch to show for it, but a large hole in the pocket and heart. It was a powerful question, and I had an uncommon answer.

My answer was "I prefer to lose it all now in my thirties, rather than losing it all in my fifties. Provided I be taught my lessons early, I would not make the same gigantic errors much later. These days, I'm trading and investing some $15,000. One day, I hope to be managing and investing one million dollars. I can afford to lose $10,000 in my thirties, but I will not be able to afford to lose even 20% of a million dollars later in life." Right, I was in grief from my deep loss. But I was so unwavering in continuing my stock trading and investing, and I was sure that one day I would be managing a much larger amount. Because I knew I would be investing for the next 30 years or more, the earlier I learned how to do it the better.

Each one of my previous investing and trading mistakes has continued to help me to become a more improved investor and smarter stock trader. My big loss of my entire life savings in my early thirties has made me a much more alert and knowledgeable investor. He who has grabbed a bull by its tail knows twice as much as he who never has. I know some of the lessons you can never learn from books. All the real crucial lessons must be learned from heartrending mistakes.

This is a video of some of the painful lessons I learned.

Category:

Education

Tags:

• millionairedaytrader
• stock
• trading

[w0tm]

This you or someone you know or heard from? Wow! What a story! I follow this site, your Web site and Twitter so I assume it is not you. Anything else to add? This is interesting. This was me 40 years ago. I'm retired now and trade by the rules 100%. I do OK.  Emotion and hunches will kill you.

[StockTradingMaster]

@w0tm It was me and you are spot on, emotion and hunches are the mass murderers of stock traders.

[forexfx4x]

minimise losses let winners run

[MrDitto30]

good points

[CessnaPilot99]

nice video, spot on. Now if people would just follow the suggestions...

[examinfo]

Securities Analysis,Intelligent Investor. Period.

[memillanf]

very helpful, thank you!!

[noetherianring]

excellent video!