mistake Archives - Trading Rush

I have traded for thousands and thousands of hours in the live market, and here is my 1 biggest trading mistake from the early days. Here’s what I learned from it and why you should avoid making the same mistake.

I started trading on smaller timeframes because smaller timeframe give more trading opportunities, and more trading opportunities equals more live market experience. And that equals getting better at trading faster.

But here’s the problem I faced. When I was in the learning stage and only had a few hundred hours of trading experience, I used to have multiple green days in a row. This green days used to make the profit graph go in the upward direction. But then I used to give back all that good profit in just 1 day. Sometimes it was not even in one day, but within matter of minutes because of the smaller timeframes.

And the reason why this used to happen is that I didn’t had enough experience to identify when not to trade. After all, I was a beginner with only few hundred hours of experience.

But here’s the rule I came up with to stop myself losing everything in the bad market. If you have been following Trading Rush for a while now, you probably saw me recommend it multiple times on the channel, Patreon, and on Discord.

And the simple rule is: create your own PDT rule but for each day. What I followed was, if I lost 2 trades in a row or 2% in a day, I would stop trading for the rest of the day. Most traders blow up accounts pretty quickly with one of the reasons being revenge trading. But with this rule, your mind will have the entire day to refresh and think logically the next day. Very Low probability of you revenge trading. This simple rule helped me tremendously as beginner. If I had to make a list of things that had a big impact on the trading performance, this rule would be one of them.

Now even some brokers are coming with a similar rule baked into their platform. If your broker has one, it is a good idea to use it. And remember, most beginner trader focus too much on how to trade and high win rate. But focusing on how and when not to trade is also every important.

That’s all!

My Biggest LOSS As A Trader

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Tag: mistake

If we go to my broker’s website and then look at my profit loss report, you will see a lot of green days. These green days are from the “how I made 100% profit in a year” stock market series. But 2 months before I started trading for the stock market series, something happened that I will never forget.

If you go to the 9th page of my profit loss report, you will find 7 lost trades in a row.

These trades resulted in the biggest loss amount in my trading history.

How did it happen?

It was the last trading day of the options.

I had shorted the stock market index and was in a good profit.

Just one hour before the market close, I took another short position near a resistance.

Everything looked good, I walked out and went to the living room to watch the news.

This 5 minutes of interaction with the TV was about to cost me a lot of money.

Within a few minutes of switching to the news channel, there was some breaking news about banking stocks.

This news was so positive that it pushed the market higher in the last hour.

By the time I went back to check on the positions, I was already down around 20% on the account.

I took some more trades to reduce the loss.

But then the market closed, and I had to go home with the fastest and biggest loss amount made in my trading history.

All of this happened because I made 1 mistake and got unlucky with the news move.

So always remember, no matter how profitable you get as a trader, always use a stop-loss to avoid an unexpected loss. Otherwise, the market can teach you an expensive lesson that you will never forget.