I can’t tell you how many email exchanges we had but I am convinced that we traders are our own worst enemies, without a doubt! Some traders consistently make money. Every day. Several times a day. In, profit, out. In, profit, out. Other traders seem so troubled thereby and fall flat, time and time again.
Larry was one of these. Good guy, elderly, had a little cash stashed and just wanted to do good… maybe even surprise his wife who was unaware that he was trading his retirement savings account. While I do not specifically recall warning him, I do make it a point to always remind people to never trade more than they can afford to lose.
He did mention early on that he’s a jinx. Larry wrote me that it may be in my best interest that he not become a member because whenever he signs on with a service, as per Larry, “their performance immediately goes drastically down… there must be a reason why my faithful old dog who is always lying at my feet is named Jinx!!!” I didn’t give it much thought at the time.
Funny, but I am also a believer that we attract the kind of results based on the vibes we emit. If we focus on negatives, we can expect negatives. Stay positive and good things happen to us. At least, that’s my experience. Whether this is true or not is another debate but Larry went ahead and started to actively trade. He earned $4,500 in 9 days but was soon ‘caught in a pickle with 3 ill advised trades he made on his own’ as he advised.
From there, he tried to quickly make back losses, eating into more capital, catching more falling knives and stomach wrenching mounting losses. I tried to analyze his trades and fend off any hits at the pass but it all happened so fast and deep, it was difficult to even keep up to all the trading. After 3 weeks, he had 29 solid winners, 2 minor losses and was really convinced that he found the right type of trading for himself. “Then bam, several bad trades in a row”, he wrote. More bad trades followed. From there it was a roller coaster like no other… tighten your seatbelts!
My advice to him: pull back on the amount invested, but only after a cooling down period of paper trades only, and then go back to what worked in the past. Small, consistent gains, keeping a close eye on setups, news, everything. Accept a modest 6% gain, don’t worry about what you could have made. When the time is right, you can expand that into several times a day and walk away with 20-40% daily by taking small profits every time. But right now, safety is key. Take a few days, clear your emotions and only then, get back to the basics.
A further email to me indicated that he had lost $75k, down to less than $9k left and his wife had no clue. Still trading, making $50-$75/trade, at 73, he figures his account will be back to $20k by the time he hits 102. He’s still addicted and will probably continue to watch, according to his own admission.
He hit it spot on… addicted. The adrenaline rush is just too great and folks will pay any cost to play. My intent is to continue to work with Larry and bring him out of this mess. That’s my addiction.