{"id":1044,"date":"2018-06-11T06:00:09","date_gmt":"2018-06-11T13:00:09","guid":{"rendered":"https:\/\/www.steadytrade.com\/?p=1044"},"modified":"2019-04-05T12:02:38","modified_gmt":"2019-04-05T19:02:38","slug":"ep-43-failure-the-sequel","status":"publish","type":"post","link":"https:\/\/www.steadytrade.com\/ep-43-failure-the-sequel\/","title":{"rendered":"Failure: The Sequel"},"content":{"rendered":"\n
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Episode 43: Failure, the Sequel<\/b><\/p>\n<\/div>\n\n\n\n

Star Wars. Nightmare on Elm Street. Indiana Jones. All of these long-running film franchises have something in common with this episode: they\u2019re all ongoing tales of intrigue with some scary moments. For the third time in a short period of time, hosts Tim and Stephen are offering a sequel-like commentary on Stephen\u2019s series of recent losses. <\/span><\/p>\n\n\n\n

Stephen experienced a series of losses, and now, the hosts are getting to the bottom of his errors so that he can reclaim his trading mojo. In the episode, they\u2019ll dissect what happened, what specifically went wrong, and how Stephen can save face and regain his trading composure. Stephen is in a pretty low place right now, but there\u2019s no way Tim is going to let him quit. <\/span><\/p>\n\n\n\n

Hi, my Name is Stephen <\/b><\/p>\n\n\n\n

Like an addict admitting defeat, Stephen shares how he\u2019s feeling as a trader right now, and it\u2019s not good. <\/span><\/p>\n\n\n\n

He\u2019s had some ups and downs in trading, but now he feels that he\u2019s hit rock bottom. He\u2019s lost a lot of confidence and feels like his go-to patterns have abandoned him. He\u2019s out of the zone; he used to be able to have a few beers and pop out a few good trades; now he feels like he can\u2019t do anything right. <\/span><\/p>\n\n\n\n

As Tim points out, it may not be Stephen\u2019s setups that have stopped working; it could be a market shift. The market is cyclical; things that once worked sometimes stop. As Tim points out, this could mean that the old way will come back around again, or that it\u2019s time to adapt to the market. <\/span><\/p>\n\n\n\n

Stephen\u2019s trade of terror<\/b><\/p>\n\n\n\n

Let\u2019s briefly recap Stephen\u2019s trade of terror. It was a colossal loss short selling a day one low float stock with news (don\u2019t worry, Tim and Stephen explain what that means in the episode).<\/span><\/p>\n\n\n\n

As Tim explains, Stephen broke many cardinal rules going for this trade, including shorting too early rather than on the \u201cbackside\u201d. However, in falling prey to the temptation of the trade, Stephen put his hand on the fire and got burned.  <\/span><\/p>\n\n\n\n

It can be enticing.<\/b><\/p>\n\n\n\n

Tim is quick to admit that while Stephen broke some rules, it\u2019s understandable why he went for the trade. To set the scene, it\u2019s Monday morning; you\u2019re excited to trade. Here you have a low float stock with news and a contract win. It\u2019s gapping up, and then the volume comes in…the trade lures traders in. But then, it rolls them over. <\/span><\/p>\n\n\n\n

Stephen was lured in. He thought he did all his homework: he worked up the numbers, and he really thought that they were encouraging. <\/span><\/p>\n\n\n\n

Tim and Stephen discuss how while Stephen did do some things right, there were many warning signs that he ignored; basically, he set himself up so that it was difficult to get out of the trade. He wanted it to work so much that he ignored the basics. They talk about trading psychology and how sometimes, doing your due diligence isn\u2019t enough: you can\u2019t make certain trades work. <\/span><\/p>\n\n\n\n

Stephen\u2019s next steps<\/b><\/p>\n\n\n\n

While experienced traders like Tim Sykes have been very supportive in urging Stephen to keep going, he\u2019s still going to need a massive confidence boost to keep forging forward. So for now, his homework is: <\/span><\/p>\n\n\n\n