Last week I opened up a discussion with a select group of readers so they can Ask Me Anything (AMA) about trading — I want to see what areas I can pitch in that benefit you the most.
As I sifted through all the responses, there was one that caught my attention…
“I’m stuck in the mud, learning a lot though! Win n lose but mostly losing! But still holding on! Question is what and how did you breakout!”
Listen, there’s nothing more frustrating than feeling as if you’re stuck in the mud without making any progress… especially in this environment.
One of the most important factors that helped me turn the corner as a trader: focusing on my best trade ideas and executing my trade plan properly.
I want to show you the necessary steps I took to turn into a profitable trader.
How I Got Myself Out Of The Mud And Turned Into A Profitable Trader
When I first started trading, I was a recent college graduate with about $80K in debt… and worked a 9-5 job as a real estate analyst in LA.
My day job didn’t pay a whole lot, and I knew it would take me a long time to dig myself out of debt and life a comfortable life. So I heard about the stock market through a colleague of mine at the time…
I tried my luck there.
Of course, as a beginner I didn’t have a whole lot of capital to trade with. I started with about $15K, which I saved up over the years…
And I lost nearly half of that
I thought about quitting the game for good because I took a big loss really early on. However, I knew I needed to tweak my approach because I really didn’t know what the heck I was doing.
I went back to the drawing board and figured out which trades worked, and which ones didn’t. I just cut the losers and focused on my winning strategy.
That was the first step I took to turn the corner.
So if you’re having trouble right now, make sure you journal all of your trades and review them. That means:
- Writing down your thesis for the trade and why you took it.
- The category of the trade (swing momentum trade, catalyst runup, bullish chart pattern day trade, etc.)
- You entry, exit, stop-loss zones
- Your position size
- How the trade turned out, what you did right, what you did wrong, and how you can improve if you see a similar setup.
By keeping track of all of your trades, I think you can start to find patterns within your trading.
For example, I found catalyst trades were my bread-and-butter.
I would look for upcoming catalyst events, and try to take advantage of the demand for shares when a stock approaches the catalyst date.
Once I honed in on my skills for that strategy, it opened up plenty of doors. You see, when I became a profitable trader, I could afford to test new strategies… and I’ve come up with a couple along the way.
To be honest with you, I trade a lot and if you’re a beginner trying to learn everything from me all at once, you’ll be bombarded.
That’s why I created Fast 5 Trades.
Here’s a screenshot of what I sent on Monday last week.
While I got out of SRNE early and left a lot of the meat on the bone… I stuck to my plan and locked in a modest 13% win the very same day I sent out the trade idea.
Thing is, the stock exploded even higher than I anticipated…
At one point, the stock was more than 50% higher than my entry price… and I’m glad some Fast 5 Trades subscribers took part in that move.*
So if there’s one direction I can point you to that can help jumpstart your trading, it’s Fast 5 Trades.
Every week, I send out my highest-conviction trade idea for the week… and over time, you should be able to figure out which strategy is right for you.
*Results presented are not typical and may vary from person to person. Subscribers’ trading results have NOT been tracked or verified and past performance is not necessarily indicative of future results, and the results presented in this communication are NOT TYPICAL. Please see our full disclaimer here: ragingbull.com/disclaimer