Day Trading: The Big Picture

Day Trading: The Big Picture

Trading Blog


October 27, 2020

Knowledge is worth nothing unless it’s not applied properly. As a trader, you can have someone help you learn the patterns and develop a great strategy. However, only you can choose to follow it and become a consistently successful day trader.

A year ago, I was struggling with discipline and self-belief. I had a solid trading strategy, yet I just couldn’t stick to it. I used to cut most of my trades short because of excitement or fear. On occasion, I got away with some really questionable tactics and still made a profit. However, I knew that being a day trader was always more to me than just a profit chart. It was about understanding the way the market worked and learning the discipline needed to trade it well. And in that matter, I was my worst enemy.

After a long conversation with a friend, I decided that it was time to turn that situation around. That was the day that split my trading experience into before and after.

First, I promised myself to follow my plan. I worked hard for over two years in order to learn everything I knew about day trading. My strategy was rock-solid; I just needed to stick to it.

Second, I promised myself to let my trades play out fully and not adjust my risk. From then on, I also decided to add to my position whenever I thought that I should. I didn’t want to be scared of taking chances when the circumstances were right. I committed to the 3:1R principle, and I was looking forward to trading for the sake of trading.

At the same time, I was still looking for a job. Thankfully, it was going pretty well. I went to the interviews with a clear idea of what I wanted to get out of a job. My mind was set on holding on to my passion no matter what and being able to trade while working from home several days a week. I was willing to be flexible on some things. However, my commitment to day trading was non-negotiable.

When it comes to the valuable things in your life, there’s no point in compromise. You can keep working for companies for years, build an impressive career, and yet, feel unfulfilled and unhappy. I’ve done that before, and it simply wasn’t good enough anymore. I wanted to combine my profession and passion in a better, healthier way.

You see, I used to feel so negative about searching for a day job. But then, I realized that it would help me succeed in my business and make it a smoother ride. It might not have been what I expected at first, but it was my journey.

So the search was coming along, and I could feel my life coming together again. If you want to learn more about me going through that process, watch the video below.

At the same time, I was doing better with my trades. I did my shorting very well – shorting the pops, covering the dips. Here’s an example of two stocks I traded that week, SRNE and HEPA.

HEPA trade of November 26, 2019 by B The Trader
HEPA stock: a major resistance play

I like to add when things are bouncing rather than dropping, and I did just that with both of them. HEPA was a short into a major resistance play.

There are some strategies that I know better than others. Normally, I haven’t been good at the type of trade where I short after it’s bouncing after it had already crapped out for the previous day, but had a high volume. However, I had experimented with that strategy before. On trades like that, I simply set a really small position. I’ve tried doing it with paper accounts before, but it just didn’t work for me the same way. Trading it live and risking a small amount in terms of dollars lets me get a hang of the strategy and gain confidence without messing up my profit chart too much no matter if I lost or won.

HEPA spiked to $4.45 from $3 from the previous day with 27 mil volume. That day, it was popping up to $4.30-$4.40s on one million volume. I shorted it, and I was risking the top of the previous day. The philosophy behind the trade was that there were a ton of people who were underwater, trying to sell on any pop they could get.

The second trade was SRNE. That was the strategy that I was really good at, the gap down day. However, it barely fitted my criteria (up just over 50%) and there was a huge market cap. It didn’t work out in the best way possible, but I’m still happy with the way I traded it.

SRNE trade from November 26, 2019 by B The Trader
The Gap Down Day pattern

And that’s really all that matters. I just want to prove to myself that I can be a great trader, and my goal is to improve every single day. There are lessons to learn from each trade and every day; my job is to pay attention and take action based on this experience. That means analyzing my yesterday, seeing what I could do better, and doing it today. I truly believe in building a better tomorrow on the lessons of today.

Regardless of how the day turns out (red or green), I want to be proud of how I traded today. The focus is on the process, not just results.

And of course, I have to remind myself that everyone’s journey is their own. Day trading is my small business, and growing it takes a while. Yes, someone might have overnight success, but you never really what it really took to be that way. Sometimes you need to run into the wall a whole lot of times before you learn your lessons, adapt, and evolve. 

Before, I saw it as “I have to keep doing it”. Now, I simply know that I’ll be successful. Last year, I started seeing it clearly. There was a moment when my “if” became “when.” For the first time, I perceived it from a third-person position. I wasn’t in the epicenter anymore, feeling overwhelmed and tired. Instead, I saw the big picture, and it made perfect sense. Sometimes you just know that something is right for you. And then, you simply have to act on it and keep going for as long as you love it.

In my case, having a day job helped me get to a comfortable place faster. This is why I’m sharing this experience so eagerly. I truly believe that people should know that it’s ok to have a story of slow and steady success. And since one of my passions is to help beginner traders and make their journey easier, I want you to know what you’re really getting yourself into.

It’s not an easy journey, but it helps to know that you’re not alone. This is why I’m building a community with the help of my podcast B The Trader, Youtube, this blog, and social media. 

I want you to know that all the success stories are alike. People fail a number of times, and eventually, they succeed. Yes, each individual story is unique, but we all go through very similar experiences. And if you’re feeling down, you’re not alone. Moreover, you are definitely not the first or the last who has ever felt this way. And maybe, my experience will help other people succeed in the world of day trading and show them that one doesn’t have to be profitable from the get-go to be a successful trader in the long-term. 

You can fall a million times, but as long as you don’t give up, you’re still in the game. And so is everyone else around you. Remember this next time you’ve had a red or a bad day. And of course, join this day trading community! My new videos get posted on my Youtube channel several times a week! Leave comments here or below the videos; I’ll be happy to chat with you!


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