Yes, one of my students lost 50,000 USD.
Yet, he is one of my best students ever.
Here’s the thing:
Some traders are people truly living on the edge. They live from adrenaline.
And that was exactly this student of mine.
He is a high-adrenaline guy. He’s in perfect physical shape. He’s traveled to 65 countries and experienced many adventures. And he always aims for the peak experience.
Now, when he came through my teaching for the very first time, I immediately spotted this characteristic. And I knew it was a very dangerous characteristic for beginning traders. Yes, it’s a great idea to spend money you make in trading for all the crazy adventures. But in trading, you need to be calm and conservative. You need to prefer boredom!
So, I tried to explain this to him, but he didn’t want to listen.
He can’t help to live on the very edge.
So, as soon as he developed his first few strategies, he put them on his 100,000 USD trading account and started trading them live.
But he was overexposed.
He had too many strategies and too many contracts in the markets at the same time.
And he started the worst month of that year.
It was a very bad month, with very low volatility and a lot of traders were losing money.
But because he was overexposed, he was losing A LOT of money.
In fact, he lost half of his account.
That’s 50,000 USD.
Now, the good news is that he got his adrenaline lesson, calmed down, and after a year he managed to fully recover. Now he is one of my best students ever, living exclusively from trading.
But many other traders might not be as lucky as him.
Even if you’re not an adrenaline junky and don’t overexpose yourself in the markets, you can still lose a lot of money too.
All it takes is one bad month, with low volatility and a lot of false entries.
And months like that happen more often than we want to admit.
So, it could be this month. Or the next month.
The question is:
How ready are you for that?
And do you REALLY want the ‘adrenaline experience’ of losing 50% of your trading account in just a few weeks?
If not, you need to protect yourself.
And you need to do it NOW.
Not next month.
Not even next week. It could be too late.
Of course, the question is HOW.
How can you protect yourself and your trading account from financial danger? Here are 2 of my favourite ways.
The first one is to improve the timing of your entries. Better timed entries can lead to less losing trades, smaller drawdowns, and a smoother equity curve. There are 4 different levels of timing you can use, we cover them all plus 12 techniques to reduce false breakouts in the ‘Smashing False Breakouts’ program.
The second one is using Market Internals, which is one of the most powerful solutions I know to protect your trading account from huge drawdowns. You can find out more in the ‘Trading Market Internals’ program.
So, protect your trading account and keep the adrenaline thrills out of your trading!
Happy, safe and calm trading.
Tomas and Andrew
Stop False Breakouts from Destroying Your Trading Account
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