How do you become a bad trader ?
I’ve read countless guides on how to become a good trader. Honestly, I even write similar long-reads myself.
Still, even after reading Munger's sacred texts, taking Alexander Gerchik’s courses, we keep making mistakes.
And we’ll keep making them, because we’re impulsive monkeys with zero self-control and discipline.
So, I’ve decided to flip the script. Today, I’m going to teach you how to become a bad trader.
Doubt Yourself
The first and most important step to becoming a bad trader is to have low self-esteem and constantly doubt yourself.
Let’s face the facts: you missed your chance to make millions during the most obvious and easy bull run in history, while everyone else was getting ridiculously rich. So, you must be a total idiot.
So, don’t believe in yourself. Look in the mirror and admit you’re not great at trading. If you hit a take profit, it was luck. If you hit a stop, it’s a reflection of your skill. Any doubts about that? No, it’s just a fact.
Never pat yourself on the back for profit. Instead, keep whining about how much you could have made and how you missed yet another opportunity. Always exit a trade too early and enter only when it’s already too late.
Make a trading plan, but when it’s time to execute, just freeze up and be scared. Don’t forget to regret not taking the position later on. And don’t hold back on calling yourself a complete coward, because let’s be honest - that’s what you are.
Don’t Plan Your Trades - Trade Impulsively
We know markets are irrational. They answer to no one, and price action is more random than predictable.
On top of that, let’s not forget about the whales and Market Makers out there, whose main goal is to hunt your stops and eventually wipe out your $250 account.
So, what’s the point of planning if everything’s stacked against you? Why limit your losses when the Market Maker will just spot your stop and push everything in that direction? And take profit? The price will get close, suddenly reverse, and stop you out anyway.
So trade impulsively. It’s all random, really. Just remember to revisit the previous step and doubt yourself before every trade.
Before jumping in, let the price go to the worst possible entry point and then pull the trigger!
Surround Yourself with Noise and Distractions
The internet is an amazing tool. Thanks to it, you have access to quality information that could actually help your analysis. You’re literally in a better position than a millionaire trader from 1987.
So, make sure to drown out this advantage in a flood of useless data. Read the opinions of brainless analysts, scroll through dumb memes, follow the latest Twitter drama, read influencers trying to sell you junk, and most importantly - surround yourself with people who think exactly like you.
The right environment will reinforce your biases, even if you’re completely wrong !
If you see a different viewpoint that contradicts your own, just ignore it. Worst case, use it as proof that you’re not thinking like the herd.
Spend as much time as possible on social media and YouTube, not on charts or researching promising new projects. After all, your time is totally worthless.
FOMO
Remember this: the market will never give you a second chance. Missed an opportunity? Might as well quit trading, it’s over.
The next trade is the trade of your life. No question about it. You’ll never see a setup like this again.
Remember, everyone else is making money. Everyone except you. So don’t wait - jump into some random illiquid trash and don’t think twice.
Yes, you’re late, that’s a fact. But everyone’s saying there’s still another +50%, +150%, and we’re just getting started before the real takeoff.
Forget that markets have been around for centuries and constantly create opportunities. Your one and only chance is right now. Make sure to go all in with the right position size.
Buying the top? That’s your move. ATHs are always just around the corner, it’s only a matter of time.
Alright, so we’ve settled the basics. You’re broke, insecure, and, of course, late to the game. What else is new?
You don’t have enough money to trade, while everyone else is trading with $1,000,000 and making $1,000 on the slightest price movement.
But wait - you can just borrow money, and then they’ll have to play by your rules. Make sure to use leverage and borrowed funds to ramp up your risk.
You need to max out your position so that every tick against you brings your account closer to complete liquidation. But remember, every tick in your favor will make you rich fast. That’s what should drive you.
And remember, the insane volatility isn’t your fault; the market’s just out to get you, targeting your liquidation. Always blame the market.