Sean Twizer reviews five mistakes that delayed his path to a seven-figure portfolio: constantly changing position size, ignoring stop-losses and take-profits, blindly following others' alerts, chasing tops instead of riding momentum, and making reckless YOLO trades. He stresses consistency, preset orders, and learning from others without copying them.
Chapters
In this video, I'm going to show you the 5 biggest mistakes I made before becoming a profitable trader, all from the beginning to where I am today, which is currently managing a 7-figure portfolio. Number 1 is going to be changing lot size, or the sizing of your positions, essentially. Think about it this way: even if you have your risk-to-reward ratio dialed in, if you change your sizing every single position, you're not going to be successful in the long term. And the reason for that is really simple when you think about it. For example, one trade works when when you invest 20% of your portfolio, but then 5 trades don't work. When you invest 10% of your portfolio, your risk-to-reward ratio and lot size are fucked up, and in the long term, you're not going to sustain profitability and you're not going to be able to make it. What actually helped me a lot is setting up a lot size for the entire month. For example, let's say my portfolio was $100,000. What I would do is take 5% off of that, and for the entire month, no matter what, I would work with that sizing because that way I'm always consistent with the amount of money I put in the stock. Moving on to number 2, it's not setting stop losses and take profits and not sticking to them. We've all been there that the stock hits our, like, take profit and we don't take profit for some reason because we think it's going to go up. You either get the results you want or you don't, and that's it. You just need to move on. If you trade a market that's relatively liquid, just set your orders beforehand and that's it. Move on. After the trade finishes, you can analyze. But honestly, sticking to my plan was one of my biggest downfalls. Like, I had days that I had like tens of thousands of unrealized gains that I didn't sell because I thought like the stock is going to continue going up. Like, It didn't, but because I actually worked on that, my losses are way, way smaller now and my profits are way, way better. And I have never been this consistent. The third mistake is for the beginners, and I was like that when I first started out too. It's listening to other people's alerts. No one cares about your money. The only person that cares about that money is you, and you need to behave that way because of that. Just following someone else without realizing why they do what they do is straight up gambling. Now, I don't say do not take inspiration from other traders, and you can learn a lot from other traders, to be honest. Like, I picked up most of my knowledge from other traders. But even when you do that, you need to understand one key principle: it's for educational purposes and not for making money purposes. If you actually want to become a profitable trader and consistent, You need to understand why you do what you do like they do. If not, you're just going to lose up all your money. And I know what you're thinking, oh, they know better than me. Okay, that's fine if they know better than you. You can use their like alerts as a guidance, but you never, never, never, ever want to base your entire thesis and your game plan off of someone else because that way you don't become better. And you're just staying mediocre. Number 4 is chasing bottoms and tops. Oh, honestly, in the last video I showed you my strategy, which is actually really, really simple and helped me make a lot of money. And right now I do not chase bottoms, I do not chase tops. I'm just looking for movement to start occurring, and I'm joining the momentum. Do not try to find the pivot points. You're not going to dial it down and nail it down every single time, and you're just going to get upset and you're going to get manipulated. Honestly, it's really, really more simple to join the movement and the momentum of the stock than just finding the bottom or the top. Like, I see so many traders struggle with this. You don't need to catch the bottom, you just need to make money. And number 5, and probably the biggest one, is gambling and YOLO trade. Look, you're in this game for making money. And you're not going to make money from one stock and just suddenly become a multi-millionaire. That's not how it works. How it works is simple little gains one day, every single day, compounding to actually make a large sum of money. Before I was a 7-figure trader, I was a 6-figure trader, and I was a 5-figure trader. And actually, I started with 4 figures, and I went through that entire process in order to get where I am right now, and I am still working towards 8 figures and 9 figures. You need to understand this is a journey, and you cannot just skip through all the steps you need to actually become a profitable trader. Because let me tell you this, if you're going to make money off of one trade which is going to change your life, you're going to lose it like 99%. And if you don't believe me, look at lottery winners, like statistics. Most of them lose their money really, really fast. You should understand this shit takes time, and the only way to make that process faster is actually finding someone who could teach you whatever they do and save all the mistakes they have done in the past. If you enjoyed this video and you actually gained some valuable insights, I would love for you to drop a comment down below and subscribe to the channel and let me know if you like this type of videos that I, I just sit down and talk with you guys. Anyways, see you in the next one.
