Introduction

Hey there, traders! Ross here, and in this blog, I’m going to be going over 7 of the most valuable lessons I learned from making $12,374,892. Yep, you read that right! I have generated $12,374,892 in total profits over the career of my day trading. Those results aren’t typical, but they are real. You can check out my broker statements here. Over the years I’ve learned some extremely valuable lessons that I want to share with you here today, so sit back and enjoy!

Lesson 1: Approaching Markets with a Blank Slate

Every week, I approach the market as a blank slate, with the goal of finishing each week in the green. I understand that not every day will be profitable, but at the very least, I strive to end each week on a positive note. On Mondays, I ease into the market slowly, taking a few trades to dip my toe in the water. If I find success, I start to lean in a little bit. This approach allows me to produce a smaller profit on Mondays, setting a positive tone for the rest of the week.

Lesson 2: Setting Goals And Knowing When To Walk Away

One of the most important lessons I’ve learned is the significance of setting goals and knowing when to walk away. Many traders make the mistake of hitting their daily profit goal and then continuing to trade, only to slowly give back their hard-earned profits. As soon as I hit my goal, whether it’s making $200 a day or $400 a day, I pack up and walk away. It’s crucial to recognize when you’re coming to the end of your most profitable trading window. For me, that sweet spot is between 8 a.m. and 10 a.m. Knowing your strategy’s sweet spot as a momentum day trader is key to consistent success.

Lesson 3: The Importance Of Following Trading Rules

Following your trading rules is paramount to long-term success. I have a rule that I give back 50% of my profits once I reach a certain threshold. It’s easier to remember half than 40%, especially when you’re up a significant amount. By keeping it simple and sticking to my rules, I ensure that I don’t let greed or emotions cloud my judgment. Discipline is the foundation of profitable trading.

Lesson 4: Sweet Spot For Successful Stock Trading

Through analyzing my trading data, I discovered my sweet spot for successful stock trading lies between $5 and $10. While I do trade stocks between $2 and $20, I’ve found that the most lucrative opportunities exist within this range. Of course, there are exceptions like GameStop, but those are not the norm. By focusing on stocks within this range, I maximize my potential for profits and minimize unnecessary risks.

Lesson 5: Track Your Metrics And Analyze Your Trading Data

One of the most valuable tools in a trader’s arsenal is their trading metrics. By tracking and analyzing my metrics, I’ve been able to uncover hidden patterns and areas of improvement. For instance, I realized that I was making money on stocks between $5 and $20, but giving back profits when trading stocks over $20. Armed with this information, I made the necessary adjustments to my strategy and stopped trading stocks over $20. Tracking your analytics and constantly seeking opportunities to improve is crucial for becoming a better trader.

Lesson 6: Throw Away Most Technical Indicators

In my early years as a trader, I wasted a lot of time searching for the perfect combination of technical indicators. However, I soon realized that the majority of them are garbage. Many people sell the dream of a holy grail indicator that’s right 800% of the time, but that’s simply not reality. Even if such an indicator existed, it would only be as good as the trader who adheres to it. Instead, I’ve learned to keep it simple and focus on the key indicators that truly matter.

Lesson 7: Timing is Everything

Timing plays a crucial role in day trading. Knowing when your window of opportunity is open and when it’s closing can make a significant difference in your profits. For me, the most profitable time is between 8 a.m. and 10 a.m. If it’s nearing the end of this window and I haven’t taken a trade yet, I know it’s time to walk away. Learning to recognize the right timing is a valuable lesson that can save you from unnecessary losses.

Conclusion

My journey as a day trader has been filled with ups and downs, but the lessons I’ve learned along the way have been invaluable. From setting goals and knowing when to walk away, to finding my sweet spot for successful stock trading, each lesson has contributed to my success. By tracking my metrics, analyzing my trading data, and following my rules, I’ve been able to achieve consistent profitability. Remember, trading is a journey, and it’s important to continuously learn, adapt, and improve. So, fellow traders, keep pushing forward and stay disciplined!