"It gets easier." Tim Sykes said this at the TI Summit last year and it really stuck with me. I was starting to get discouraged, about 5 months into my journey of trading penny stocks, in the red, down about $10k overall. It gave me a lot of hope, the idea that this would get a little bit easier every day. And it truly does get easier. I doubt it will ever be easy, but with experience and knowledge comes the ability to recognize patterns you've seen play out hundreds of times before and have a good idea of the odds of what will happen in the future.
Here is my current profit chart. I am up $22k overall as I write this post:
Since my low point, when I realized I had to focus on strictly playing the setups I was best at, I've made $38,000 in profits and grown my account almost 500% in the last 6 months. I am up 100% year to date. Way bigger gains than you could ever expect to get from a mutual fund or index fund. A majority of my recent gains have come from playing OTC multi day breakouts. I'm now up over $40k on those setups.
Here is a profit chart of this single setup, OTC multi day breakouts:
Going back to the theme of "It gets easier," have a look at how different my results are, just one year into this career. I made my first trade in May of 2017. That first trade was a 30% winner. It was all downhill from there for the following six months. This is my daily profit and loss that first partial month of trading:
I made 36 trades that month, with 9 wins and 27 losses for a 25% win percentage and a loss of $2.2k. My average loss was also twice as big as my average win. I traded 15 days that month and averaged a loss of $145 per day.
Now look at my daily profit/loss for the current month, so far:
This is a good time to make the comparison since that first month of trading was only a partial month. This month I have made 34 trades, 24 of which were winning trades, and 10 losing trades.That is a win percentage of 70.59% and a total profit of $15.5k. My average win is exactly twice the size of my average loss. I traded 17 days with an average daily profit of $910.
My stats have basically flipped. This is so similar to blackjack when you go from losing to the house edge when playing strict basic strategy, to winning just about the same percentage by counting cards. Except the edges in trading are way bigger.
Here is a closer look at those two time periods:
So don't strive for perfection, just seek to improve every day, and it will get easier. And once it gets easier, and you start consistently profiting, it gets a lot more fun.