Student Success Stories: $532k in Trading Profits
From 9-5 to Full Time Day Trader
This will be my 11th blog on Warrior Trading after roughly a one year and five-month hiatus from writing. I have to be very honest, writing is kind of exhausting for me. It’s fun when I get into it, but, it takes a lot of time to do well. I don’t want to produce drivel or marketing content, I want it to come naturally. I stopped because, I wanted these articles to be genuine and not mass produced. There are some things a person reads that they will remember forever, and most of what we read in today’s world we will forget in 15 minutes, maybe 5 minutes. It’s a good thing to be honest with yourself, I think. Brutally honest.
You’ve Got One Shot
One thing that I was very honest about, the day I knew I would no longer have a 9-5 paycheck when I left my job to trade is, I would never get another chance to learn or have the time to trade if I didn’t act right at that point and just give it a shot. Life moves fast, and we’re all at different places in our life. I spoke to my wife often about trading during the time when I was struggling to generate profits, even after 8 months of struggle, she was always supportive, which I probably took for granted and only in hindsight do I now realize how amazing she was to allow me to take that big leap. It probably helped that we had a low cost of living and I never made her worry about funds in the bank. We can increase our own chances of success by ensuring what we jump into has a high chance to succeed. Another-words, don’t set yourself up for failure. If you have lots of debts as a sole bread winner, a big mortgage and 5 kids, your trading experience may not go too well. That is just a reality, and part of being brutally honest with yourself. If you are that exact person, then you need to figure out how to make it work before you take the leap, such as taking a part-time or remote-based job, like I did, while learning. So how does what I write today apply to anyone, then?
It doesn’t. Which is why people cannot re-create the recipe for success because the recipe is different for each person. What worked for me may not work for you, but there are consistent themes in the journey to trading successfully.
Sacrafice In Exchange For Freedom
You will most likely have to sacrifice something. I don’t mean a satanic ritual where you sacrifice the blood of a sparrow, I mean, you will have to give up something in your life. Whether that’s not being comfortable anymore, giving up excess amount of money or just changing your daily grind. People love to feel comfortable, it makes them feel accomplished, and nobody wants to take a step back, but you will need to take a step back in order to make trading work.
I sacrificed a comfortable and relatively, well-paying career. No sane person would typically do what I did. If you ask any responsible financial advisor they would laugh. I had a corner office in Manhattan at a software company. Nobody has that anymore. Everyone is now sitting at one big table without even privacy dividers. Private offices in big companies are mostly of the past. Things change, which is why you need to look out for yourself. Invest in yourself. While the company you work for gets bigger and more profitable, you are only just a little blip, a rounding error in their financial statements. Do you really want to rely on that? This is your life, right?
It was hard, I won’t lie. I jumped in knowing enough about the market to think I could figure it out, but not enough to be profitable from day one. Lots of new traders are very arrogant, they think they know everything. Prepare to humble yourself, quickly. As I have mentioned in previous blogs, I made a lot of gains from swing-trading cannabis stocks through 2013-2014, prior to that, I invested in bank stocks after the financial crisis. I had some idea of how the market works, but nothing remotely close to what I know today.
A combination of luck and determination is what makes a successful person. I was lucky to gain enough capital initially to afford to leave my full-time job and begin to taking trading seriously, and later, run into Ross at Warrior Trading to help accelerate that journey a lot quicker. Determination is what kept me in the game, not luck. Education and real experience is what created the skillset that I have today. That skillset paid me in both cold-hard cash, but more importantly, time, and afforded me the luxury to work on my own business simultaneously to ditch the part-time job and start generating some real wealth.
$532,000 in Trading Profits
Education, experience and skill. These attributes are also what has enabled me to generate roughly $532,000 dollars after commissions in capital gains since 2015, which is when I started to show up to Warrior Trading. The total number from about late 2012 is higher, but I am not counting that since it was luck, not skill. Almost $600k may not be an impressive number for some people, that’s fine. My gross profit, before commissions, was $591,000.
The world is very big and some of the richest people will still laugh at other wealthy people. There are some traders who can make that amount in just one year. I am not here to win an award or compete, I truly do not care, but to me, it’s a powerful number and puts me more than half way to pulling the illusive “million dollars” out of the stock market. Not many people can say that. What will really blow your mind is, if I never attempted to trade, I also wouldn’t have my business, or the freedom of time that I have now, and I am not even going to get into how well that is doing. If I never attempted to trade, you wouldn’t be reading this either. How about that?
So, if you don’t have skill yet, and you probably don’t have consistent luck either (nobody does!), your very best and cost-efficient option is education. Without sounding like a gimmick, you can get a lot of different kind of education from Warrior Trading. Some of it comes from the raw real-time content in chat, but without the right education, it’s like being thrown into a digital war and the only thing you have is a tiny stick with round-end. Without the knowledge of how the market works, how it acts and what to expect, you will not perform well over the long-run. So, be sure you are not just walking into the war each day and getting slaughtered, because the stock market will very happily take your money and smile. Take advantage of the educational material, which there is a substantial amount of, and which the mentors at Warrior Trading spend a lot of their time on, and hit the books, or videos I should say. I can’t imagine you would ever regret that decision.
Diversifying to Small Caps and Large Caps
About a year ago as an effort to diversify my trading skillset, I decided to trade not only small caps but also large caps. Since I was comfortable enough with small caps, I took a dive in the large cap pool using Mike as a resource in the morning to help generate a watch list quickly and watch his educational material on my off-time. I can tell you if you have a hard time with small caps, large caps are like the annoying big brother who keeps smacking you in the face and telling you that you suck. It’s hard work. Mostly because you are fighting much smarter and bigger players in the market, but once you understand the mechanics which don’t often change, it’s a very exciting and rewarding market to trade. Once again, I had to sacrifice something in order to trade large caps. Often, you can only focus on one trade at a time, so maybe I miss out on a small cap trade. Or, I take several winning small cap trades only to wipe it all out on a large cap, or visa-versa. I am sacrificing a bit of consistency, just a small amount, enough to learn over time. Traders are always giving up something for something else. You will have to learn to live with what the world throws at you and figure out how to come on top. This is the mentality you need.
Every day I strive to put my gain or loss into the chatroom, sometimes it does not look like much. In the end though, consistency wins and by staying in the game I win, and so can you. You win in the markets by not losing big. You win by being prepared with the right education in order to gain the right skillset. It’s really just that simple.
A Growing Trading Community
Although being in the chatroom gives you an idea of how many people are trading around the world, you don’t really “get it” until you show up at an inner circle meet-up. I have to admit, and without sounding cheesy, seeing so many people actually trading in “real-life” is amazing. It’s one thing to see it all on your screen, it’s another to shake someone’s hand who just made $800 in the morning trading live with you. Or hearing somebody tell you that they had a profitable year and is able to gain more time with their family. Yes, there are also those who are losing money as they learn, but you get a chance to talk with these people and share experiences and hopefully, make a positive, lasting impact in their performance. Although most often you will find me disappear early since I am anti-social and don’t like the attention, I cannot deny the positive impact it had on me and made me realize just how many people are benefiting from being a Warrior Trader.
To conclude, I believe the success of being a trader is doing one or two things really well. Have an unwavering dedication and focus to the strategy that is working for you and forget about all other distractions.
See you on the inside.