Why Fighting the Market Can Blow Up Your Account
The market can stay irrational longer than you can stay solvent.
Dear Traders,
2 days ago, I shared $ORCL trade in my previous newsletter, going over my favorite Opening Range Breakout Long right after their earnings blowout and locked in a solid profit. It was one of those clean, A+ setups that just line up perfectly.
Then yesterday, I saw something wild on X.
A trader shorted $ORCL, thinking that the stock must go down after such a massive rally… and ended up blowing up his account. I reposted his tweet, but the post has been removed now. You can still see some of my post replies to the trader in the screenshots below.
This is the reality of trading. The market doesn’t care what should happen. Oracle stock eventually pulled back to $291s today. Does this mean that the trader was right about his short idea? He could be, but trading without a stop loss in place, plus bag-holding a losing position against a clear uptrend…
That’s just not trading. That’s a recipe to get a margin call and lose your hard earned money. I’m not sharing this to dunk on anyone. Having big losses, making irrational decisions, and blowing up accounts are all part of the growth. But please remember:
The market can stay irrational longer than you can stay solvent.
Respect your stop loss. Follow your plan. And never assume you know what the market “has” to do next.
This is also why we created the Trading Terminal funded trading program. This is a perfect opportunity for developing traders to get the feeling of real-time trading, learning how to manage your emotions when the account balance matters.
When you use a regular paper trading account, there’s no real fear, no real pressure, no real stress.
But on this $50,000 funded trading account: when you succeed, you get to keep your profits. You get to experience the pressure of real trading without risking your own money.
How I want you to take advantage of this:
- Sign up for Trading Terminal.
- Start trading the $50,000 Funded Trading Simulator (Take it seriously)
- If you successfully achieve consistent trading results, you get 100% of your profit payouts just like those traders below.
- If you fail, you don’t lose anything, and you’ll find out what you need to improve in your trading.
One More Thing…
I just want to say thanks to all of you who have been reading my newsletter. I saw this comment on YouTube from a reader:
Comments like this means the world to me. I write these every week hoping they help you get better, stay disciplined, and maybe even fall in love with trading the way I did.
Best of luck,
Andrew
P.S. I’ve made it to Nepal! Follow me on Instagram where I’ll be sharing photos and updates of my new adventure to the Manaslu Base Camp 🧗
