Sometimes, we get in over our heads. It's a natural, human thing to go through. I would know because I was once an overzealous trader in my teens. Sometimes we think we can just learn things on our own and not seek help when we keep making disastrous mistakes one after another.
I'm a student of life. I'm a student of things I want to learn more of and this includes trading. Even after 15 years of trading, I still do not know everything and I don't presume to ever do so. I know I have a whole lifetime of learning and adapting to the ever changing trading game. This is why I believe firmly in our mentorship program. It's our way of giving back to the young and new traders out there the knowledge we've amassed all these years. It's a way to avoid making the same mistakes.
However, there's a stigma for trader education. I don't know where this stigma originated from but it should be removed. Just like you need to take flying lessons to be a pilot, you need to learn how to trade to be a proper trader. I did not get to where I am without my mentors in my younger, formative years.
Most people dismiss trader education as a cost or something useless. I always laugh at this because most are willing to lose thousands of dollars making bad trades but not spend a few thousand dollars to really get a proper education and mentor.
I leave you with the wise words of my mentor: you can never put a price on knowledge especially when you know you come out a better, wiser person.
** 1 Spot Left for our December mentorship Program. Inquire Inside **
You're there, making hundreds, if not, thousands of dollars in profits and you're feeling like the luckiest man in the world. An hour later, you're back at it again trying to make more - only to see your profits get eaten away by losses. Then the unthinkable happens, you lose your profits of the day on another trade that you thought could've made you more money. What just happened? You just got PWNED!
The situation above is way too common in the trading world. It's called overtrading. What is that? It's when you didn't quit while you're ahead. Familiar with that saying, "quit while you're ahead?" That's what happens when you don't get out at the peak. What makes people not get out while they're ahead, you ask? GREED.
Overtrading is one the leading causes of trader implosions. If you go into a trade not knowing where to take profits - you're already violating the most important rule of all: No exit, no trade. Knowing how much you want to make on each trade is very crucial because it keeps your trade simple and mechanical - free of emotions.
Take the trade above for example. The entry was clear and my target as the 672 area however, we never get what we want on most days so I planned to get out should things change. In every trade I make, I always know where my exit levels are whether they make or lose me money. The problem with most traders is that they hope each trade is the 10 bagger which in reality, it never always is. You'll never get a KBIO or a VRX every time.
It's important to know how much you want to make. Say you agree to make $1,000 a day - that's $20,000 a month assuming no losses and a straight 20-day trading month. So if you've made $2200 on one day, wouldn't that already tell you you've met your goal and you should stop? This is where most people fail badly. Most people will go back and trade some more with the hope of making more. This is GREED. You should always know when you've met your target and move on. Tomorrow's always a new day.
You have ALL the control in the world when it comes to making or losing money in the world of trading. How much you make is of course up to you. How much you let the market take from you is also up to you. Most people who tell you the market is cheating them are not only lying to you but lying to themselves as well. No one else is clicking on the BUY or SELL button but you. Think about that really hard for just a second the next time you blame the markets for being manipulated. Perhaps when you are on a losing streak, you only need to look in the mirror and blame the person staring back at you.
Good luck on what really will be hell week for everyone!
There are those of you who would call me late in this KBIO epic short squeeze and that's okay. I'm not some guy risking his farm to make millions. I've already gotten my millions. I'm just a simple guy making some money from whatever moves in the market.
Friday presented a great opportunity to finally jump in on this stock because of what Shkreli did - not leding out his shares anymore. That sparked an epic short squeeze that started in the pre-market session (shaded area). The lack of volume follow-through during the day could be attributed to people out due to Black Friday. Monday will be more epic.
In any case, you only need to go to my Twitter Page to see how much I made. It's by no means as epic as the other twitter twats making $10K or $30K on this but for a trade that I barely did nothing on and the risk was super low, I can't complain.
No doubt I will be watching KBIO in the coming days and weeks. Let's however not forget that this product they're creating - Lenzilumab - it's still in the development stage. So this is going to be another useless biotech company until it actually creates something. You can start your bio research here.
Please remember, unlike Turing where they actually have a drug being sold, KaloBios has NOTHING except for a lot of HOPE. Last time I checked, hope is not profitable. But for those of you who are only in for the short squeeze and the massive pump and dump - indulge and enjoy!
Traders from Equity Sense will be writing on this blog on positions and other market-related things.