Have You Ever Been in a Trading Death Spiral?
I started Greatstockpix.com in February, 2004. That was almost 15 years ago. Over that time I’ve had countless heart wrenching emails hit my inbox that hit me like a shovel to the face. The names are different, the details are different, but the underlying message is the same.
They go something like this….
Mike, I finally understand why you preach so much. I knew you were right but I didn’t listen. I got myself into a trading death spiral and blew up my account. I wanted to be a Daytrader more than anything in the world, but it’s just not going to happen. I don’t have enough money in my trading account anymore.
Some of these people go on to say they will be back. They are going to work overtime everyday for a year to save enough money so they can trade again (which is what I did more than once). Others are just writing to say goodbye.
One thing they all have in common is that they put me in a bad mood. I feel terrible for these people. I’ve been there countless times. It’s one of the worst feelings in the world. How many times have I said to myself over the years, ‘I can’t believe I F’ing did that again. I promised myself I wouldn’t, yet here I am!’
I almost gave up countless times, but man I’m really glad I didn’t!! It’s truly worth it once you finally ‘get it’.
So how do you get to that point? First, you must realize that EVERY SINGLE TRADER has gone through the same pain. If you know a trader who has never blown up an account, check back with them in a few years because they WILL BLOW UP AN ACCOUNT.
It’s a necessary step in the process. You MUST endure this pain at some point. Without this pain, you simply won’t understand the importance of discipline. The pain is essential to your future as a professional Daytrader. You MUST have this pain to draw upon. That’s what will keep you in check the next time you consider averaging down when you’re wrong instead of just hitting out of the trade.
Trading death spirals are terrible. They are gut wrenching. They are extremely painful. But, they are necessary to ensure your long term success. I’ll leave you with two final thoughts.
You are not alone.
Keep fighting because it’s worth it!