How to Lose $250,000 in 2 Years
Now, some might say it’s hard to lose $250,000. But it’s actually far easier than you might think. Take Debt Kid’s story, for example. He "managed" to lose that much in only two years.
With that in mind, let me offer four unexpected rules that could help you achieve record losses practically overnight…
Rule #1: Ignore money management rules.
The most profitable traders use rigid money management rules that dictate when to get in and get out of trades. To lose money, you must ignore money management rules entirely.
Do not diversify your trades. Placing 50% or more of your entire trading portfolio is recommended for big, easy losses. When you find a good loser, double down to accelerate the process.
Rule #2: Don’t use stop loss orders.
Stop loss orders are over-rated. Instead of automating your exits, just wait for the latest headline news in the WSJ or IBD. If things are looking bad for companies you’re trading, get out… maybe. Don’t call in your trades until you’ve lost at least 20%, preferably more.
Rule #3: Cut your winners short.
Are you in a winning trade? Take profits fast. You don’t want the price to gap up or get away from you. Look to make no more than 1% or 2% on any given trade. More than that and you’ll be jeopardizing your losses. Remember, we’re trying to lose a quarter milion in two years. Time’s a ticking!
Rule #4: Ride your losses for all they’re worth.
Are you in a trade that has gapped down? Is it sinking like a rock? Good. Ride that baby for all it’s worth. Make every effort to time your exit with the bottom of the price movement.
To maximize losses, try to find securities that are in a perpetual down cycle. You don’t want anything rebounding unexpectedly and erasing the losses you’ve worked so hard to achieve.
These four rules are imperative if you want to lose money fast trading the markets. With the proper practice, you too can lose $250,000 in two years or less.
Best regards always,
[Disclaimer: Obviously, this post does not offer any advice you would actually want to follow. It is entirely tongue-in-cheek. Do the opposite of what this post recommends to minimize losses and potentially maximize gains.]