Saturday, September 12, 2015

What I Learned This Summer

Now that the summer has pretty much come to an end, I feel that it is time for me to reflect on the things I learned this summer.  I started out the summer full of excitement and enthusiasm and I truly believed I was ready to trade full time and make a living at it.  However, the very first lesson I learned was that you cannot have these types of emotions in trading.  They prevent you from making sound decisions when trading.  The first thing I had to do was to get my emotions in check so that I could approach this with my eyes wide open.  Once my eyes were open, I saw just how much I didn't know and how unprepared I was to do this full time.  You see, being consistently profitable for 6 months is just part of the equation. It is an important part, but understanding how to adapt to the changing markets and managing emotions on a daily basis were skills I lacked and it showed because the day I went live was the beginning of the summer lull in the markets.  Now I see that it was the best thing that could have ever happened to me.  Some people say blowing up a couple of accounts are the best thing but for me,this summer was it.

The next emotion I had to deal with was disappointment.  I fully expected to make twice as much as I was making before since I could give trading my full attention.  When things started out slow I started forcing trades and really got frustrated.  Once I slowed down and began to define myself as a trader and establish my go-to setups I began to settle in and start trading without emotion.  I had to learn to react the same toward a $50 loss as I did toward a $500 gain.  I had to approach each trade the same with the same focus and discipline regardless of the results of my previous trade.  I think a lot of inexperienced traders never get out of this cycle.  I also watched a lot of Clay Trader's videos and they were a big help as well. His motto is "Trade Without Emotion".

I also realized that I needed a true mentor.  Even the very successful gurus still have mentors that they talk to and work with every day.  Having a mentor really gave me more insight in my trades and kept me focused on the important aspects of my setups and strategies.  I learned the true importance of support and resistance levels and how to trade off of them.  I also learned how to use the moving averages for my intraday trades.  Both helped me be more selective in my trades.  There is always something new to learn about my setups and how to trade them in different market conditions.  It also helps that my mentor is in Warrior Trading chat everyday teaching.  It has made a tremendous difference in my trading.

I was also introduced to another "guru" that had a similar trading setup to what I trade.  Kunal from Bulls on Wall Street produced several free webinars, one being 4 days long.  His chat seems to be set up similar to Ross's but it is on steroids.  He is smart and is all in when it comes to trading and education.  I didn't try his chat because I feel the DTW community fits my personality better but I always catch his webinars and videos he posts on YouTube. I learned how to identify and the importance of the daily levels from my mentor Mike in DTW, I learned how to enter early and trade off of support or resistance versus waiting for confirmation candlestick patterns from Kunal's teachings.

I tried my hand at making video journals of my trades and I have shared a few on YouTube.  Talking through my trades seems to help me analyze them a little better. It seems like after a few weeks I forget small details from key trades but with the video and the chart it will keep it fresh in my mind.  It's also a better way for me to share what I am doing with others and get good feedback on my trades.  All of this helps me continue to improve and grow as a trader.

I didn't intend on going back to work but I received an offer that I just couldn't refuse.  I can still trade in the morning but just not at home.  I only use a laptop and an extra monitor and it helps me focus on only the best setups.  Since I went on vacation a month ago I have not used my trading station.  I have only used my traveling setup and my trading has been more focused.  I think I will stick to this until I get more solid in my trading.  I think I went too big too soon.  If I can make good money with this setup, I will continue to trade with my laptop and extra screen.

I guess everything that I learned this summer can be summed up in one word; education.  It doesn't matter how much capital you have, what tools you have, or what market you trade.  Without education, you will not succeed. Period.  But, there is so much information out there you have to know how to use it and put it together where it makes sense.  That's where choosing the right community to become a part of and having a true mentor comes in to play.

I feel I have turned the corner and I'm ready to start another chapter in my trading life.  I've even toyed with the idea of starting a trading coaching service for brand new "average joe" traders like me who are wanting to get started in trading but are overwhelmed with all that is out there.  But, I will continue learning and growing as a trader because this is what I want to do the rest of my life. Stats for the Summer                                            All Trades           Long             Short

Total Net Profit$27k$20k$6,659.49
Gross Profit$29k$21k$7,109.76
Gross Loss$1,809.72$1,359.45$450.27
Profit Factor15.815.815.79
Total Trades14611036
Percent Profitable79.45%80%77.78%
Winning Trades1168828
Losing Trades30228
Avg Trade Net Profit$183.40$182.88$184.99
Avg Winning Trade$246.43$244.05$253.92
Avg % Gain3.54%3.49%3.7%
Avg Losing Trade$60.32$61.79$56.28
Avg % Loss0.86%0.95%0.6%
Ratio Avg Win to Avg Loss4.093.954.51
Largest Winning Trade$2,512.00$2,512.00$1,362.00
Largest Losing Trade$196.21$196.21$119.00
Largest Winner as % Gross Profit8.79%11.7%19.16%
Largest Loser as % Gross Loss10.84%14.43%26.43%
Max Consec Winning Trades131311
Max Consec Losing Trades433


  1. Great review of your summer, Ed. What do the 3 columns on your profitly stat chart represent?

    1. never mind - i see it now that i'm on a different computer.

  2. Hey Ed,

    Been following your blog since your first Youtube video where Ross was interviewing you.

    I've thanked you before in the DTW chatroom, however I wanted to drop in and say thanks again for keeping the blog (and Youtube channel) going!

    Drop me a message if you decide to start up your coaching idea (or other). I'd love to be able to chat with other like-minded individuals about trading - whether it be in a Google Hangout chat or over Skype.


    1. Hi,

      Thank you for your vote of confidence. Anytime you want to chat about trading I am always ready. I chat with traders all the time on Hangouts and Skype. Just let me know!


    2. Ed,

      I'd love to take you up on that! Sent you a brief email.


  3. New trader here and first time perusing your blog... great stuff, keep it up!

    I actually am going to enroll in either BoWS or DTW this coming week but I'm leaning towards BoWS. It seems to be a more formal education approach to trading, plus they've been really good at communicating me with questions I've had. I've yet to hear anything at all from Ross after shooting him an e-mail... Kunal also has his own hedge fund that a handful of his successful students graduate into so that's another plus I've taken from BoWS. Anyhow, I agree with you that it seems that both programs are quality for their own reasons but BoWS just seems a bit better structured to me. Who knows? Perhaps I'll take a separate course with Warrior later on just to expand horizons.

    Best trading to you brother!

    1. Hi Ryan,

      thanks for the comment. You are definitely going about it in the right way. Education should be first on everyone's list. You also need to pick the right education style that fits you. A person will never become your teacher/mentor unless you choose that person to be.

      I don't think Ross has had a chance to reach out to many this week because I know he has been on vacation for Thanksgiving. He is usually pretty good at getting back with people. I hope you were able to spend some time with both communities by taking advantage of their respective free chat days to get a feel for their style, as well as watch some of their free YouTube content. I think both have excerpts from their classes posted.

      Even though I would love for you to join us at WT and hope that you do, you definitely have to do what's right for you and your needs as a new trader. That's one thing we firmly believe in over here. That's why you will never hear us bash another community or anyone that chooses another community over ours. We want success for everyone.

      Again, thanks for your comments and I wish you nothing but success in your trading career.


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  5. Ed... Thanks for posting your thoughts, ideas and trading experience. I feel lucky and blessed that I decided to follow you on your blog, tweets, and YouTube. You are a truly unselfish person and you genuinely want to help others. Thanks Again!