It's easy to talk about success as a trader. Telling people about all the "ups" in a journey does not take courage. While success stories are without question motivating, hearing about the "dumb" things people do is where the true learning occurs. This is the focus of our discussion with chat room member Alex. I truly respect the transparency and courageousness Alex displayed in his candid talk with us. What are some of the major pitfalls in the markets? Where do the dangers lie? These are just a few of the things we discuss. Notes: During a lunch with some friends, Alex decided that he wanted to trade stocks for some additional income. He opened up an account the next week and started trading penny stocks. He took a break after getting bored trading tickers that didn't have much liquidity/movement. He returned in 2013 to trade penny stocks once again. Alex continued to refill his account as he would deplete it. A friend approached Alex and let him trade his 30k account. He found early success trading the morning and then would lose it all and more by lunch time. He started trading options and while finding some fools gold at first was quickly wiped out in 1 trade. Alex decided to step back and invest in his education before coming back to the market. Quotes: "I got bored and quit in 2009. One day in 2013 I decided to just get back in the market." tweet this quote "I rushed into things so bad. I didn't stop playing penny stocks. I didn't listen and learn from my previous experience." tweet this quote "I had the desire to learn but I couldn't get myself to step back and slow down with my trading." tweet this quote "I wasn't even counting how much I averaged down. I had a 10,000 share position and a $50,000 position." tweet this quote "I lost 10,000 dollars of that man's money in one day. One day." tweet this quote

Ask this episode

“What did the council decide on item 42?” — answered with the speaker and the moment.

Transcript

Related