I talk a lot about running and compare it to trading because both of them are 2 of my favorite things to do. Don't worry I'll probably stop the running talk and switch to cruise ships in a couple of weeks! Too many people give up on the stock market after their first big loss, and I think this is a BIG mistake!
The Unfinished Marathon
I failed to complete my first marathon. Months of training led up to the day, but somewhere around mile 18, my body gave out. I didn't finish the race even though I've run further in my training.
Sounds like a failure, right? But here's the twist: I still run today. I still run races, and I enjoy them! From running up and down the Las Vegas strip:
To running through New York City:
You see that unfinished marathon (the first race I ever entered) taught me more about perseverance and self-discovery than any medal ever could.
What if I quit running because I didn't succeed the first time?
Just like running, trading and investing are journeys filled with highs and lows. It's not the victories that define us, but how we handle setbacks. Now lets talk about trading, because it's not that different.
Embracing the Losers
Anyone can manage the winners—those trades that go exactly as planned. But it's the losers that teach you the most. Expect to be humbled, especially in your early years of trading. Every seasoned trader has faced losses; it's an inevitable part of the game. The crucial question is: How do you deal with them? Do you throw in the towel, claiming the market is rigged? Or do you learn and adapt?
My First Big Loss
At 17, full of youthful confidence, I gave all my savings to a financial advisor. Seems safe right? He's a professional afterall. (A professional salesman I later figured out.) It was right before a bear market. Within a month, over half of my savings evaporated. It was a harsh lesson in market volatility and the realities of drawdowns. But instead of walking away, I chose to understand what happened and why.
The Tech Bubble and a Hard Lesson Learned
During the tech bubble, I jumped headfirst into stocks without understanding fundamental analysis. I tripled my account—a thrilling high—only to blow it all in a week. That sting of sudden loss taught me the importance of looking beyond hype. I learned to examine price-to-earnings multiples, assess if a company is actually making money, and pay attention to earnings reports.
The Search for the "Can't Lose" Strategy
I've invested in countless coaches and strategies, spending more money than I'd like to admit. I was chasing the illusion of a foolproof system. Here's the truth: there isn't one. No indicator or strategy works all the time. The market is dynamic, and adaptability is key. Every strategy has its moments of glory and periods of struggle.
Getting Back Up
Through the years, I've faced setbacks that could have ended my trading journey. But I kept getting back up. Each stumble wasn't a signal to stop but an opportunity to learn. That resilience is how I've found the freedom I enjoy today.
Trading is Education
Think of trading like your educational journey. The first time you encounter a new concept, it feels alien. You might struggle to explain it to others. But with repetition and study, it becomes familiar. By the end of your education, you might not recall every lesson, but you understand when and how to apply key strategies.
Don't expect to enter the trading world as a graduate student or Ph.D. on day one. That mindset can lead to risky decisions and potential losses. Instead, embrace the learning process. Understand that building knowledge takes time, and every experience—good or bad—is a valuable lesson.
Please Keep Going
If you've had a bad experience in the market, know that it's perfectly normal. It's easy to think, "Maybe the stock market isn't for me." But basing your decision on limited experience is like quitting school after failing a single test. Trading is an education, one that requires patience, persistence, and a willingness to learn from mistakes.
Knowledge is Freedom
That's why I created Mr. Money Maxwell. For the price of a cup of coffee you get my best content and weekly updates. It's time to build a trading curriculum that makes money-making strategies second nature. When you arm yourself with knowledge, you're not just reacting to the market—you're understanding it.
Keep running your race. Learn from every step, and never give up.
Happy Trading Good Kids
-$Maxwell
Comments