The Journey of becoming a profitable trader

My experience with trading! The truth of becoming a profitable trader


To Introduce myself, my name is Patrick, I am a 22 year-old trader.

I got into crypto in 2018, and I had made a ton of bad investments. And lost quite a bit of money.

I then realized that investing is not what I was seeking, as I wanted to make a living from crypto. And although it is possible with investing there are no guaranatees especially not in crypto.

I realized that if I wanted to make a living from investing, my best bet would be to put my money on the SP500 which turnsover around 12% on average each year. That would mean to make a good yearly wage I would need close to 1 million dollars.

And unless you are like me, I don’t have a million bucks.

Starting trading:

I had known about trading ever since I got into crypto and seemed too difficult.

But when I saw my investment in crypto absolutely disintegrate, I decided that I had to find a way to turn it back around.

So I jumped right in, read many books about trading, including the simple trading strategy.

I watched hours worth of videos online, and actually paid for some courses.

I then got a demo account and started playing around in it. The thing was that this demo account did not have crypto, which is what I wanted to trade.

I had made a bit of fake money on this account after a month of using it.

So I thought I was ready…

I wasn’t

My first attempt:

I used the money I had left from my bad crypto investments which equated to roughly 1500 dollars to fund my trading account. Mind you I was 17 at that age. So this was all the money I had saved up from working less than minimum wage jobs, and all my birthday money for the last 5 years.

I blew that account, in one month it dropped to 700 dollars, making coming back up more than 100% away.

I would not be able to do this.

My second attempt:

This was 6 months after I blew my first account. I had moved on from trying to be a trader. But I do not like accepting defeat.

So I decided to try again; because I always had free time, and got bored of the mundane life that people my age were doing. I did not like going out, I did not like hanging out with friends, I just always felt off for some reason.

So I though, what do I have to loose?

I had managed to accumulate another 900 dollars from jobs I had.

I added that amount to my now 800 dollar trading portfolio that I did not touch, I now had 1.7k to trade with.

I however I did not start trading until I felt confident in my abilities.

So I went on a 3 month studying spree, spending money on more online courses (don’t do it).

I had now built a confidence, and established a basic trading strategy that I had learnt. And decided that using leverage to boost my capital to be a smart move.

Determined, I started trading on the account.

I had managed in the next 2 months to lose another 900 dollars. Bringing my account back to around 800 dollars. I had now lost 1.5K to trading.

Of course my parents did not know of this at the time.

I had never felt so sad and defeated in my life.

After all I had spent so much time learning and studying the art that was trading. But despite  my discipline and determination, I had failed.

This actually took a toll on my confidence, and I felt like an absolute degenerate that lost 1.5k trading.

My third and last attempt:

I was know 19, almost 2 years had passed since my 2 attempt at trading. During this time; crypto did very well. And I had decided to invest what was left of my trading portfolio into Ethereum 2 years earlier. That brought me up to 3k which was a lump sum of money for a 19 year old in my eyes.

But again, I didn’t believe in investing for wealth creation.

What I did was the best decision of my life.

I had decided one morning to give trading one last go, but this time I was gonna go big or go broke.

I was in my first year of university. And the year previous I worked a couple months in a store, and made around 2.5k from that that I had saved up.

I also had a fund under my name that my grandma opened which I could only open at the age of 18. There was 2000 dollars in there.

So now I had a total of 7.5k that I could use to fund my trading account.

 

But before I did that, I had to understand where I went wrong.

So I went through all my trades, and read a lot of more books, and watched hundreds of videos on repeat about efficient trading strategies.

I had figured out what I did wrong, here were my mistakes which are actually quite common:
  • I was too emotional and cared more about losing or winning money than I did about what the charts were telling me.
  • I did not use large time frames to determine market direction; and only used small time frames. I also did not know how to properly use indicators to confirm a resistance break or a support break. So I therefore had to create a checklist for every trade. That it must abide for me to jump in.
  • I did not have a profitable risk to reward ratio. This was a very big thing, that’s where the edge as a trader comes from. But I did not understand the importance of it back then.

So When I figured this out, and made sure I knew everything I could about trading; market psychology, Elliot waves, supply demand; indicators, etc.

I went all in.

7.5K.

What has happened since then?

Well what I will say is that it was not an easy thing at the start, and it was men,tally draining, stressful and a little difficult at the start.

But then I started to get the hang of it.

I had managed to turn tha 7.5k into shy of 40k in the last 3 years.

Sure it is less than I expected.

But seeing that I am profitable now is a great accomplishment for me.

It will only grow from here.

Take away

Trading is a very difficult thing to attempt, and it took me 1.5k and an immense amount of failing to understand that the market does not care about your ego.

But anyone can do it, as long are you are disciplined but most importantly, that you are accountable and understand that you must have done something wrong, and analyse all the mistakes you made.

 

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