There’s an old Wall Street saying 90% of traders fail. Whether this is true or not… doesn’t matter, so long as the potential reward outweighs the risk.
Sure, when I first started out, those odds appeared scary to me… but so did the idea of working behind a cubicle my whole life.
That said, I realized that there was such a thing as survivorship bias… and that those odds were shown to people to discourage them, and not try, and to surrender their money to “wall street advisors”…
However, my desire for change and an attitude of “what if” pushed me to learn how the stock market works.
You see, I was fresh out of college and had $80K in student loans… working a 9-5 in a cubicle in LA, earning just $35K a year… I realized I couldn’t live like that any longer and decided to take my chances in the markets.
I put up $15K… and in just a few short years I’m now nearing in on $7M in career trading profits.
(My flagship service is called FDA Insider Alerts, and for a limited time you can have it for 80%, Act Now)
You might be thinking, Well, Kyle… that’s great to hear… but what makes you think that I can achieve the same success as you?
Read on to find out more.
You might…or..you might not. Heck, you might even become better than me.
However, if you don’t try then we’ll know for sure.
That said, I was probably in the same boat as you… or worse.
Second, when I first started trading I didn’t have a mentor. That said, one of the benefits of joining one of my services is that you get to “shadow” a multi-million dollar trader. And see how I put trading plans together, execute on them, manage risk, and take profits.
You see, with just those two tools… you have a one-up on most other traders. You’ll be able to find opportunities that may have never even knew existed.
… opportunities like these traders took advantage of…
(It looks these clients didn’t have a problem following my FDA Insider Alerts! Are you ready for my next alert? Use this link for an 80% discount)
But it’s not just about having the right strategies…
That’s only part of it…
For example, you should also:
Keep your emotions under control
Nothing is worse than seeing your capital melt away.
Have you ever had a series of successful trades… then all of a sudden… you wipe out those gains from making one stupid bonehead trade?
You freeze up… and start making reckless decisions. It’s only after you close out your positions, that you can take a sigh of relief, you detach and you’re able to analyze the decisions you made rationally.
Maybe it’s because you were too stubborn to take a loss, underestimated the volatility in the stock, hoped for a turnaround or took a trade that was not your style. It might have been all the above.
Keeping emotions under control is about maintaining discipline. One way to do that is to develop a trading plan and to consistently review it. This allows you to be prepared and focused on trading your ideal setups and managing risk.
For example, every week, I send out a watchlist to FDA Insider clients… letting them know the stocks I’ll be looking to trade.
I actually told clients about BPMX (the trade that a few of my clients talked about on Twitter from earlier) before the massive move.
(Want to start receiving the full details of on my alerts and in real-time? Then click here to get started)
I let them know where exactly I’ll buy the stock, stop out of the stock, take profits… and of course, the reasoning behind the trade.
It wasn’t until I learned how crucial trading plans are to your success that I started to religiously game plan ahead of time.
Now, another thing that I wish I knew earlier was swinging for the fences can hurt your more than help you. Although BPMX was a monster trade… we did get a little lucky on that one… we weren’t really looking to hit 50%+ profits.
Ditch the “go big or go home” attitude
Sure, it’s great to hit home runs and grand slams… but when you focus solely on doing that, you actually take focus away from the stock itself… and just trading your profit and loss (PnL).
Think about it like this… you can make a series of successful trades and build wealth… or you can raise the stakes and look for monster trades… and have the “you only live once” mindset.
Taking on massive risks in an attempt to be an overnight success typically causes you to take on trades that don’t offer much edge. In other words, when you have the “go big or go home” attitude, you’re actually taking trades where you don’t have and advantage…
… sure you may get lucky… but typically, traders who do this take substantial losses… destroying their accounts.
Of course, the goal for your trading should be to get bigger and trade more shares, but develop a track record before ramping things up.
Well, I keep track of your trades and journal them.
In my journal, I’ll include things like:
- My thesis. What was the reason I got into the trade? Was it based on my FDA Insider strategy, my Sniper Portfolio methodology, or was I just throwing on a random trade just because I was bored?
- Entries, exits, stop losses, and target prices. Basically, I’ll write down whether the trade worked, then where I bought the stock… took profits.If the trade didn’t work, I’ll write down my entry and my stop loss… and whether I stuck to my game plan.
- Diet, exercise, sleep patterns, etc.
- Overall market conditions.
By keeping a trading journal, you’ll end up realizing these “go big or go home” trades are probably hurting you more than they’re helping you.
Not only will you be able to identify your pain points… you’ll also figure out what your best setups are and then you can focus on trading those exclusively. Once you have the numbers to back it up, then look to add more shares to your trades.
Once you size up, you can have big winners like this:
(Tired of seeing these trades and not taking part in them? Well, there’s an easy way to fix that… click here to find out how.)
It’s always better to trade as a team
Being part of a trading chat room and online trading community is extremely helpful. You can share ideas, learn new trading styles, shadow a successful trader, ask questions, and gain support from one another.
For example, here’s a look at how were shared our successes in BPMX.
Not only that, traders in the chat room were also sharing their trades and supporting each other.
C.M. : sold my first Pre Market order!! 1/3 BPMX .85-1.45 yaaaay!!
J.G. : BPMX out @ 1.43 +53% great way to start morning…
M.K. : got out of BPMX 1.45!!! great way tp start the morning!
C.J. : out at 1.44 . awesome
M.S. : yes, thx Kyle, +60% on BPMX
When it comes to the trading community, remember that disagreement makes a market. Be respectful to people’s opinions, try to learn, and take responsibility for your own trading and your own decisions. Follow those guidelines and you should see some excellent results from joining a trading community like Biotech Breakouts.
Develop a routine
When you have a trading routine, it helps you get in tune with the markets.
For example, I like to develop watchlists over the weekend to set myself up for success during the week. Basically, I’m writing down my best ideas and game planning… so once any of those stocks reach my buy zone… I know to get into it, set my stop… and limit orders to take profits.
Not only that, I’ll look for other potential catalyst events (something that can move a stock) and write those down.
Basically, it all boils down to:
- Have a watch list ready.
- Reviewing the plan so you know exactly what to when it comes time to trade.
- Journaling your trades at the end of the day.
Some traders spend all day sifting through charts. Others spend the day reading analysts’ reports, social media posts, and SEC filings. Whatever brings you success, do that.
Of course, trading can be a lot of fun, but it can also be stressful…
…that said, eating healthy, exercising and taking breaks are excellent tools to combat the stress.
Now, there’s one thing that has gone through probably every trader’s mind at one point: I should quit doing this.
Do not give up too early
Look, you need to be realistic. If you’re a new trader, understand that you are competing against firms that have larger bank rolls, better technology and research than you. You are also in the pool with other individuals who may be more experienced and faster at recognizing patterns and trends.
It takes time to become a consistently profitable trader. However, the potential reward makes it all worthwhile.
Just because you’re down a bit of money… it doesn’t mean you should call it quits.
Heck, just around 4 years ago… I had a $15K account and actually loss half of the value!
However, I invested in myself… and dedicated a bit of time to trading… and I developed FDA Insider alerts – still one of my best strategies that I use. Not only that, I was able to discover more opportunities in the markets using different strategies, like my Sniper Portfolio.
Now, if you’re struggling with your trading… your best bet to beating the odds is linking up with someone who knows the game well and is willing to show you the ropes.
If you’re trading alone… it’s easy to lose confidence in yourself… and call it quits… but you end up missing a lot of opportunities out there when you do that.
That said, follow these tips and it could stop you from being another Wall Street statistic.