That rush your feeling means it was a bad trade. Good trades are not exciting. If this trade was your biggest win of the year, you probably committed a cardinal trading sin.
|A few big wins doesn't make you a big elephant|
- Taking on too much risk (greed).
- Gambling by holding through earnings (FOMO-fear).
- Traded too big for your account size (greed).
- Piggybacking somebody else's trade without understanding the trade (fear and greed).
There's a pattern at work here that ultimately leads you to blow up your account. Trust me I know because I have done it twice (see my story and listen to there interviews here and here).
The patterns goes a little something like this.
Fledgling trader (actually I also see way too many seasoned pros do this too) gets an idea from a member of the twitterati. Her rules allow here to risk up to 1 percent of her account, but this trade looks too good and she envisions the big gain. She uses all of her 25K account for this one trade and ends up risking 10%.
Earnings are three days away and again she imagines blow out earnings. While her rules tell her to get out of the trade before earnings, she fears missing out and gambles the entire position.
The trade worked and her account is now at 33K. She does this 10 more times and after a wild ride she's doubled up to 50K.
You think you are the shit. Best damn trader this side of Wall Street.
Thoughts of quitting your job fill your head. The two week notice is ready and your playlist has "take this job and shove it" on loop.
As any degenerate gambler knows, eventually your luck will run out.
You WILL blow up your account.
You do not know how to trade.
Before that happens get your stuff together and learn.
I'm here to help.
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