How To Ruin Your Trading Account

There are 3 letters, forming one word, which can be detrimental to a trading account.


Yoda said “Do or do not, there is no try”, and there never should be a try in trading - especially in day trading.

In this life we should hold ourselves accountable and plan our actions, path and goals as much as possible. Then we simply accomplish each and every goal on that path towards our desired outcomes.

Trading is the only market, avenue, venture, profession or hobby that I have even been a part of where I can devote 40 hours of my week and receive absolutely zero in return. That’s why I have said and I will always say “You will be able to make more money in business than in trading”. I am not talking about treating trading as a business, but a literal business: lawn care company, HVAC, or your own dental or chiropractic office, for example. Businesses can always create more money than trading consistently.

Don’t trade the markets for money. Trade because you love it. You know how sometimes you catch yourself staring at a burning fire and you totally zone out? You go into this whimsical illusion of peace from staring into the flickering flames? That’s how trading is for me. I can stare and candles and the price action moving all day. I love it. Likely, I always will.

But loving trading and being able to profit from trading are two different things. That’s like loving campfires and profiting from the fires burning. How could you profit from a campfire? Own the land it’s burning on.

How can you profit from trading? Being patient. Planning trades out in advance and never ‘try’ a trade. If you ever catch yourself uttering the phrase “Well, I’ll just try this trade.” just mail me a check because you’re probably going to lose on it. You should challenge yourself to know within two seconds of looking at a chart what to do. Up, down, or sideways.

Within two seconds, any human can look at a fire and know that it’s hot and has it been burning a long time or a short time.

In trading, practice determining immediately what you are going to do with a stock. Then plan it out. Then follow the plan. If you are sitting in front of your computer screen, but you are bored and unprofitable from the day and you decide, “Eh, what the heck, I’ll try this trade.” This is as meaningful as burning your money, in the long run.

Protect your capital. If you are trying something because you are bored, or maybe it’s your first time doing the strategy, try it when the money is fake. Begin to create a solidified trading plan, find a trading coach to hold you accountable and simply, do. There is no try.

Jerremy A. Newsome


Join In on this conversation, post a comment below.
Visitor - Florida Trader: I liked your article especially the quote from Yoda. I think I will visit your website. Maybe some of your enthusiasm will rub off on me.
Reply Flag
JerremyNewsome: Ha! :) Thank you! I appreciate it!
Visitor - Anon: With a small trading account you will absolutely make more from running a business then from trading. But isnt the whole point to scale up a trading account? The thing that makes the business attractive is how easy it is to scale. If you have a profitable process with a 100k account you should be able to recreate the same process on a 10 million dollar account or more assuming you arent scalping. Once you hit critical mass then trading becomes worth it.

Trading a 50k account 40 hours a week to make 25k is hardly worth the time. The goal should always be to increase assets and improve process on the way.

The real money in trading comes just like in any other business where you sell out your skills to others i.e. raise AUM.
Reply Flag
JerremyNewsome: Valid point Anon. Increase it as much as you like. Even the best day traders I personally know or have met, make about 300k - 400k a year. And that's after 12 years of being in the game. I'm simply stating that in business, if you put in 40 hours of work, regardless of the size of the business, you will see a return. A sale, a new prospect, something.

But as you know, we have the money we have. If someone has 50k, they can't just wish for a 10m account and have one the next Wednesday morning when they wake up. Trading 50k to make 25k is a 50% ROI. I agree, it's a LOT of time and hard work. but over time, can be freeing. Here's an article I jotted down about small accounts too. Thanks so much for your reply! I really appreciate it!
Visitor - Anon: Yea, that's the shitty part about fund management. Once you wind down the fund or stop trading you are left with nothing, no assets, no brand, no way to maintain cash. I do think though that traders should push to raise AUM if they are good and can prove it. For example in the US it is possible to manage under 25 million of friends and family money without much regulation or red tape to go through. That way you can scale your skill set and charge management fees and all of a sudden it is more worth your time.

Thanks for the article I will check it out.

In the internet age by starting a biz you can make insane ROI cause of how little capital you need to get started. Especially if its a content or services biz because you don't need to borrow money to pay for the inventory.


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