MODEL 5k and LOSSES:

The last 7 trades have been losers, of which 4 have been Lottery-Earnings, 1 has been CORE and 1 has been Lottery.  The net effect of these losses brought the Model 5k Portfolio total return down from 126% to 95%.  

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It troubled me that there were a few comments in the chat lamenting about the losses as well as trying to figure out what went wrong.  Let me speak to both.

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First, I warned everyone that losses would occur and that this would not be a straight line up.  That's impossible, even for me.  I understand frustration when a trade does not go the way we want and even more so when there are a string of trades that do that.  But I want to remind you that the same methodology that I used that produced LEN (+144% in 4days), CORN (+209% in 8 days), ORCL (+442% in 5 days) and a LOT of other winners, is the same methodology used on the recent string of losers.  Now, I blame myself for missing the outlook downgrades but even still, the recent losers had good to great probabilities.

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You cannot look at one or two or even ten trades - they are merely parts of the whole.  Just like there were runs of winners (seven in a row to start the month of May) and I did not get overly excited, having seven losers in a row does not get me despondent and looking for a new job.

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I want all of you to be very careful of what you post in Discord.  There is absolutely nothing beneficial to bitching about losing and in fact, it is detrimental to staying unemotional about trading.  The success we seek is to FOLLOW THE TRADE PLAN because by doing so we protect capital and have the opportunity to "stay in the game."  Plus, those members that were complaining are doing a great disservice to the rest of the members by being Debbie Downers.  Heck, some of the commentors didn't even do the trades!

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I understand frustration and what not.  But I expect us to operate at a higher level than the average retail moron.  Losing is part of the process.  It is a guarantee.  If a string of losses causes you to become overly down, then keep it to yourself and talk to me privately.  But don't affect others.  And frankly, if you have been position sizing correctly, those losses should not have had a large impact on your overall portfolio.

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You all know what I want to build: a community of successful traders - not a community of successful RETAIL traders.  If you want to be successful, then do what successful people do.

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As to the second point - I think its great to always look at what could have been done better.  BUT - if you decide to hold a trade longer than my exit, do not post the results.  Here's why: while YOU have the discipline and it is part of your plan, it is not part of the base methodology I am teaching.  If you are seeing something that can improve what I do, message me and let's review it.  But I am telling you this: holding beyond the original stop will eventually lead to losses and bad habits.  Trust me.  We MUST let our losers go and move on.

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It would be unfair if I didn't mention that I also saw many members moving on and taking the losses as part of the process.  Trollian, RegEx, 2Tix are just a couple that come to mind.  I know there were others that I am missing so to all of you who are elevating your mental game: GREAT JOB.  To those who were not: DO BETTER.

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Finally, I know the website sucks.  I am not a web designer so I thank you for working with me as I continually work to make it functional.  If anyone has web design experience, contact me!