I've been a Challenge student for the last year and a couple of months. When looking at Tim's interview with Huddie again in the last summit, I was struck by the question: "What took you so long?" I realized that I already know everything I need to know.
Everything I will learn from this point on, I've already heard dozens of times in not hundreds. I know how to keep my risk low. I know how to take money out of the market. And yet... my trend is not good. So how can I make my journey faster, better?
Realizing that led to my best two weeks. I've had slow or fast losses before that, and now I had two solid green weeks.
But then came last week and this week, and I lost what I've lost in the last two weeks. Here are my lessons and my thoughts. I'm putting them in writing to put them in writing. The secret is that I/(you who are here a long time) already know everything.
1. One thing I keep doing and NEVER works is trying to anticipate short squeezes. It never works for me. I've lost a lot of money on it. Never try again for the foreseeable future.
2. Do not be tempted to go for home runs.
3. I went for 1-1 risk rewards. Only 3-1 and better.
4. Do not be tempted by big rewards and what seems like certainty. Do not increase your trade size.
5. I did not research well enough. If I had known there was only one investor who can sell the lockup shares in TLRY I would never have attempted to short TLRY or CVSI (as a sympathy) ahead of time. I would not have lost a lot.
It sounds like really amateurish mistakes. And they are. With what I know, this shouldn't have happened.
That was last week. Here's yesterday's conclusions from the last two days:
1. Shorting a pump in anticipation of a fall requires to take some pain. At present, I can take no pain, so I can't trade this pattern.
2. At this point in time, take 10% automatically rather than go for anything bigger. If I had done that and stuck with it, I would have been up yesterday rather than down a lot.
3. From this point on, only trade $1,000, with a max risk of $30, striving for $20. Anything that doesn't fit, can't be traded.
4. I may not add when winning. It can turn a win into a loss.
5. I may not trade with big size for the time being. Size has to be predetermined.
4. The hardest lesson: I must not look at this as a way to make money, although I know in the back of my mind I will need this to make money in 7-12 months. This is about the system, the process, and never the money. Stick to the system, it'll work. Be tempted by money, it will never work.
Imagine the people who figured out how to win in blackjack against casinos by counting cards. The only way to win is to go according to the system they've created at every turn. That way they get their 1% positive RTP. But if they're tempted by what their eyes see and what appears like sure wins, they will lose.
I am re-watching Tim Grittani's YouTube videos about the months of discipline in which he took down his size until he learned to control his risk and not make the mistakes that lost him LAKE and a few others. He traded with basically no money, relative to his size, for months to get disciplined.
That's what I'm going to do. Trade low, trade low, trade low, be disciplined, be disciplined, be discipline, and do not look at the money gained. Only look to do the system. Rinse, repeat, endlessly. No shortcut.