I love these videos, small accounts growing
to nice size amounts.
In this case a member took right around $500 up over
$10,000, but it was not a smooth ride.
And thanks to you as viewers and feedback,
I know you enjoy situations like this
because it's not like me sitting here and talking
in theory it's me using real-life results
so that way you can have a little bit more context
of okay yeah this actually happened and let's look at
and observe some learning lessons from it.
So this member sent me an email,
this was actually a while ago but you know just in order
until this video comes out so the dates are a little,
little old but it's, the concepts I assure you,
still apply so let's just hop in the email from Chad.
And he says hey Clay, hope all is going well
and you are getting things back in order
after the storm.
Context there there's a big storm in Michigan,
my power was out for like three days.
He says then just wanted to provide an update.
I am sure you remember that I blew up my account
back in March April time period.
I was really doing well for a newbie then got cocky
and started doing some really stupid stuff.
So lesson number one.
Arrogance, overconfidence, being cocky destroys accounts.
I've been there.
Chad has been there I give nothing but respect to Chad
for admitting that,
but please realize and I've done videos on this over
and over again, but again no theory here,
this is somebody just confessing,
when you start to see some success especially
when you're new and just getting started and quite frankly
even me, when I go on I'm like,
oh that's another winning day,
oh that's another winning day, I all of a sudden,
wait a second why am I doing that change,
why am i doing this, and you start to do things
that are rooted in just flat-out cockiness,
flat-out arrogance, flat-out yeah, you know ego.
You've got to be very, very careful because when
you do stuff like that bad things can happen.
Okay Clay I get it, that's a good sound bite,
but stuff like that, what is stuff like
that actually look like in the real world of trading?
How does ego show up?
How does cockiness show up?
Well let's go to the next part of the email.
So he says right after all that
too large a position, not following a trade plan,
and just being dumb.
And that's the first thing too large a position.
That's textbook newbie 101, that's textbook risk management
errors 101, that's textbook somebody like me
'cause that can get me.
You get some wins, you see some green,
you see your account grow and then you start to do
the stuff in your head we're like well you know,
my accounts are growing so if I increase my position size
you know I'm not a mathematical wizard, but I do realize
that by putting more money in,
by increasing position size my account
will grow even faster.
And I mean I've been having all this success.
I'm a pretty good trader.
Why don't I do that?
And then you do that and psychologically in the back
of your mind you just can't handle that risk tolerance
and then start, things start to go crazy.
You start to get nervous in trades,
you start the you know trade scared,
and when you're trading scared
because you're actually nervous about the amount of money
bad things just start to happen,
or you could just simply be wrong.
I mean everything could be fine from the trade plan
perspective but all of a sudden you just get in
that one trade where it goes against you,
and because you have larger position size poof.
A lot of those other gains are all of a sudden gone.
So be very, very careful of that.
If in fact, if you just take away one lesson
from this case study, just realize this.
If you're feeling good about yourself,
if you're seeing success, if you feel successful,
don't increase your position size.
At least not right away.
The very first time, in fact let's do this,
the very couple, first couple of times,
you're feeling good about yourself,
you're feeling successful
and you think you should be increasing your position size,
don't do it.
Fight that temptation because bad things can happen.
And then Chad also mentions not following trade plans.
I know I mean when you get arrogant, when you get cocky
once again no judgments here, I'm speaking from experience
you feel like you can figure it all out.
Ah I know what my trade plan is, but I mean I've been
doing pretty good so I'm just gonna finagle the rules here,
I'm gonna make it work, I'm just gonna make it happen
and then yeah something happens and it's called
you get punched in the face.
And it doesn't work out well.
So that's another typical thing, is you just start not
following the trade plan.
And I get it, I've been there, it's just because you think
you can figure it out.
You think you can make something work for you,
you think you can start to tweak and kind of dance
around your trade rules, just don't do that okay?
It's not where you want to be.
So then he goes on to say in fact I dropped off the radar
for about 45 days to think about it.
I wanted to keep doing this.
I took my small account from 1,000 to about $4,000,
then down to $54 in about a three-week period.
So think about it, that's just how fast things
can turn around.
You can grind and grind and grind and then poof,
just like that, in a relatively small amount of time,
three weeks $4,000 down to basically $50.
Cockiness kills.
Thinking you can finagle out of trade plans and break
your rules and still make it work,
that stuff will crush you.
How much so?
I mean it knocked him out of the day for 45 or 40,
or how much I mean it knocked him out of the mark,
what am I trying to say?
It knocked him out for 45 days.
Where he had to go and reflect on things,
which is the nice little learning lesson in of itself.
Sometimes that's really the best medicine,
is just to sit back, kind of reflect on things.
What exactly happened.
Funny thing is I can remember exactly the trade
that began to down slide, however I pulled my head out
of my nether regions told myself that you don't quit
anything because of a little bump in the road
and really reflected on what I did right
and what I did wrong.
Flash-forward at the end of May,
I injected $500 back into my massive $54 account
and started trading again.
This time no emotion, analyzing everything I did,
putting in and honoring stops.
So in other words he started to manage risk,
which if you're new to the channel get used to me,
I'm gonna talk about managing risk quite a bit
because that's what actually matters
and that's what's going to grow an account.
I don't care about winning any a blind drunk monkey can win.
I want to know what you do when you're wrong,
and Chad he actually started to become what I like to call
being a great loser.
He got good at losing meaning he was wrong,
he took the loss he kept risk, you know small,
so where did that take him after you know starting
to focus back on things?
Now from there I'll just say that he grew his account,
because I don't want to focus on the account growth,
I mean in all honesty so maybe, no this wasn't
clickbait right because in order to grow his account
the main learning lesson here is he needed to first
get really punched in the face, right?
He needed to eat some humble pie.
And preferably, I would like to see you skip that step.
I would like for you to just see your account grow.
And not have to do one of these grow, crash and burn,
because that's annoying, I don't want that to happen to you,
if this video can kind of save you the time,
save you the hassle of having to kind of go through a chat
what Chad did.
Again, Chad thank you very much for sharing all this.
Then that's kind of the goal here.
But he got account growth by well, following rules.
By following and honoring risks.
By having a real strategy.
Well, no kidding Clay.
But that's why, I mean that part is kind of obvious,
but how did he get what was the driving force,
I really kind of hammered it home into his head,
hey follow your rules, don't get cocky,
well the fact that it actually blew up in the first place
and that's very, very important.
So to just close things out, you can see that
where did I put that,
yeah so breaking and he broke the 10,000 mark,
so at this time this video was released I don't know how
high is the count will actually be,
but as far as this email is concerned he's up over $10,000,
but you know and then he goes on and say yeah you know
and I've been following the training all that sort of stuff,
which is great, I appreciate the kind words,
I'm glad my training could help him out,
but like I said at the foundational core here,
is how do you grow small accounts,
how do you get success?
Well you kind of got to realize that I don't want to say
well you got it you got to blow up your account first.
In many cases that's kind of the case because people
just sit there like you don't know what you're talking
about Clay, I'm having success.
I'm all good.
And literally those know those people know that's actually
cockiness talking and you know I don't want to see
that happen but it probably will happen,
But it like is that if I can save even just one
or two people the hassle of having to blow up an account
and we can just keep your account growing, fantastic.
And the best way to avoid that please reconsider
upping your position size too quickly.
I'm not saying you can never do it,
but the first time you want to do it, don't do it.
The second time you want to do it, don't do it.
Maybe the third time, but I would probably try
to make an argument that even after the third time,
don't do it just keep growing it, keep growing
and keep getting consistent and then you can start to
slowly increase it, but that is definitely gonna be,
in fact in the comment section below
has that ever caught up to you and your trading,
where you're seeing success or you know,
you're just making money but then all of a sudden
you decide to increase your position size and poof,
just like that like everything seems to,
it's like somebody flips the light switch in your trading
and everything just changes.
I mean can you relate to that?
I definitely can, let me know in the comment section below
if you can relate to that,
because maybe there's some new traders
that are like no I think this guy is just saying stuff.
So but if they read through the comment section,
hopefully they can get some kind of war stories
of people that yeah we're doing well and then they
decided to increase their position size
and then things you know kind of the wheels fell
off the bus, but Chad all-in-all nothing but respect,
not because you grew your account from the $500
over $10,000, I mean that's awesome,
don't get me wrong but I respect you for looking
in the mirror, blaming yourself, which is the final
lesson here who did he blame for blowing up his account?
Himself.
He didn't sit there and say oh, it was the market makers.
He didn't sit there and say oh it was some tweet.
He didn't look there, he blamed nobody but himself
and that's also the key, is if you want to grow an account,
you gotta blame the person that's trying
to grow the account, you.
But that's freeing right,
because if you blame yourself, if you blame the person
in the mirror, if they are the problem,
then guess who's also the solution?
The person in the mirror, and you can fix that.
So don't be blaming market makers
and all this other nonsense.
I mean if that is truly the case you should stop
trading because everything is apparently out of your control
and there's nothing you can do for it.
So again if you're gonna sit there and take losses
and losses and losses and then start to blame everybody
but yourself then just stop trading,
because apparently according to your logic
there is nothing you can do about it,
so you save yourself the money.
Go do something else.
But when you blame yourself and say,
yeah no I'm tempted to throw the stone at somebody else,
it was actually just me.
But like Chad did, he did that,
and you know he proclaimed to have his head up
his you know what, but after that, by doing that,
he decided you know what, I'm gonna pull my head
out of you know what and I can start to improve
and that's what he's done and he's been doing a great
job with it, so Chad well done for you for not blaming
anybody else for accepting the personal responsibility
and the results have been very straight forward
I think since then.
So if you enjoyed these videos again,
like I said earlier I know from comments
and such you do enjoy these these case study videos
where I'm taking, trying to you know talk about some
learning lesson through actual things that have taken place,
but yeah if you enjoy them hit that like button,
leave a comment down below.
Questions, comments, suggestions, again,
have you ever had any sort of pains by increasing position
size let me know that.
And then check out the channel as a whole and if you like
what you see hopefully decide to hit
that subscribe button but yeah thanks for hanging out
and get out there and please, please, please
be aware cockiness can lead to bad things.
First off, thanks so much for watching the entire video,
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