One of tech leads video from last year in may. Was this one, how i lost 350 000 dollars day trading and what i learned from it? And, oh, my god, reading this video title is already really painful. So many of you know that i watch a lot of youtube videos, that's not related to day trading. I watch some real estate, fitness filming, animation, comedy and some tech youtube channels as well.

I basically watch a little bit of everything. The only thing that i have zero interest of watching is makeup and super cars and one of the tech channels i've been following for a while is the tech lead? I watch him not because i care about coding, computers and all that stuff. That's clearly too smart for me to understand. One of the reasons i follow tech lead is because he speaks in a monotone for almost all of his videos.

One is that i had been new to the game and i felt a little overconfident and i was starting to make money right off the bat. And i thought that this whole thing and it's nice to listen to him. To cleanse my mind after a full day of hectic day trading in the market and one of tech leads video from last year in may, was this one, how i lost 350 thousand dollars day trading and what i learned from it? And, oh, my god, reading this video title is already really painful, not because losing 350 000 is a lot of money, but because he didn't put a space in between the word day trading. It's two words day trading.

This is really triggering a lot of my ocd tendencies. Let me make it really clear. I, like tech, leads videos and i've been following his channel for a long time. This video right now is meant to be constructive.

We're going to review tech leads experience day trading for over a year what he did well on as well as what are some of the mistakes that cost him to lose 350 000 dollars, and hopefully everyone here can learn from his experience. So, let's talk about tech leads journey day trading now in the video he shares that he was focused on trading commodities in 2014, specifically the etfs that was tracking the underlying price movements of these precious metals like gold and silver. Some of the tickers he was long were rja, slvr and rji and i'll be completely honest. Here i try to stay away from commodities.

I used to day trade, some gold etfs, such as jnag, jdst and dust, especially during fomc. These tickers make great momentum trades long and short, but i never hold them for too long, because, if we're day trading most of these assets are just trading vehicles. That's moving not because we believe in a long-term valuation of the company, or in this case precious metals. Tech lead has also mentioned in his video that the reason he had longed these commodity etfs is because they had a good run in the beginning of 2014, which is very true, and he was also using these positions as a hedge, as the us dollar weakens.

If you look at these charts for crude oil, gold and natural gas, the trend is certainly going up from january to june of 2014 until the trend reversed. Unfortunately, tech lead was caught in this sharp trend reversal in commodities, which he mentioned in his video. The commodities price shock of 2014, in which the global commodities prices all dropped around 38 between june 2014 and early 2015., i'm not here to dissect and analyze these price trends or the global economic factors that might have caused the crash. That, clearly, is not my expertise.

I'm just a day trader, not an economist, and that price drop was very similar to what we saw in late april this year, when crude oil went to negative 37 per barrel, no one could have seen that coming. But if you did, though, next time make sure you call me first but a mistake, tech lead made here was not because he was lazy and didn't do the work or the research. No, no, the guy did the work. I mean he was a senior level engineer who worked at google, facebook and other big tech companies.

I'm sure he has an iq above tesla's, stock, price, post, split and pre-split. While i always say most new traders entering the market fail because they treat trading as a get-rich-quick scheme and never bother spending a time and effort to learn the skill first. This was certainly not tech leads mistake, but the first mistake here was that he fought the overall trend of a stock from the video it sounded like he was swing, trading and joining big picture trends, which is a very viable strategy like he said, the global commodities Did have a great run in the first 2014 and it sounded like he was simply buying the dips to join the trend and going higher, and this is a strategy that works perfectly fine until the dips just keep dipping when trading intraday. We use higher time frames.

Such as 15 minutes 30 minutes will already charge to see the clear trend of the stock we always say in day trading. The trend is your best friend, but that also means when the trend reverses you better get out. If tech lead strategy was joining the trend on this multi-month swing, then he should be observing the weekly and also monthly charts using rja, for example. Here the first bearish sign was the weekly uptrend breaking.

The second sign was this lower high that cannot retest the previous high and then finally was a re-test of the previous low from the beginning of 2014. From a technical analysis standpoint, if a stock has completely given back its entire good bullish, run of six months from the beginning of 2014 to june, and now we're testing previous lows and making lower lows, this is extremely bearish as a swing trade. So this is the first lesson here: don't fight the trend, especially when it's a global decline across most commodity prices and really the real fundamental reasons are just too big for us little retail traders to fight against the second lesson here is: do not become too overly Confident with beginners luck, it's interesting that both the tech lead and, graham stefan, both had some luck, making money right away trading in the market, while i'm clearly the least lucky beginner trader here, because i never made any money in my first year day trading and in Hindsight, looking back now, that was a great learning experience, like i mentioned in many of my previous videos. Luck is not a consistent strategy that you can rely on, especially when you are a brand new trader and start making money right away.

It's very easy to feel. Like you know it all. You are right all the time and you own the market. If a trader made money early on doing these bad habits such as chasing breakouts, adding to a loser or holding and hoping, then of course he or she will repeat the same behavior again expecting to get away with it in the future until that luck runs out.

Being lucky in the market allows the traders to disregard the real foundation of day trading, which is risk management, and this is the third important lesson here from tech leads experience day trading. Yes, he did fight the trend and got caught on the wrong side, but he also didn't cut his loser. Instead, he kept it on and holding and hoping for too long. I'm sure beginners luck, like we talked about earlier, also contributed to the reason why he held on for so long.

Another reason was that he started doing a lot of research and reading into these news sites that are contributing to his thesis and his hope in commodities, and this is a very interesting thing to realize for all traders watching this. If you analyze your losers and your winning trades, you'll notice that you do a lot more research in the losing trades after you are already deep underwater, no really think about this and reflect on this fact here, because i've certainly done this myself. Some of my biggest losers in the past as a brand new trader, was holding onto these small cap turd stocks for way too long i kept on holding and adding to those losers and researching news on twitter, stocktwits and yahoo finance. Oh, this company is in the process of making new drugs.

That's going to cure cancer. I mean i'm low already i'm down a lot of money since five dollars, but i'm gon na be right. You're gon na be wrong. Just watch me become rich and hold on.

Oh jesus been there done that it's okay, you're, not alone. Here, i've done this in the past as a beginner trader on these trash stocks like saex, tops and gbr, and that's what we call in day trading doing the homework while back holding and it's from doing all these research. While he was underwater with a commodities position that the tech lead became too overly biased and held on to his losing positions until the end of 2014, which resulted in a big loss of 350, 000 350 000 is a lot of money for a new trader. To start with, this is why i always preach that, if you want to start day trading, yes, you want to start with a decent amount like three thousand or five thousand dollars to feel like you have a skin in the game and know that this trading account Is enough and worth it for you to manage your risk and limit your losses, but at the same time generally it's a bad idea for new traders to start with too big of an account, because you do need time to start learning the setups and the strategies And building your trading discipline and, most importantly, here how to manage your risk? If you cannot manage your risk on a small five thousand dollar account, you won't be able to protect your 100 000 account.

That's just the honest truth again. This video is meant to be a constructive review of the tech, leads experience in day trading. I'm sorry for his loss, but i'm sure he's made it back many times over as a millionaire by now, and i'm very grateful that he's sharing his laws on youtube for new traders entering the market to learn from make sure to check out tech leads original video Below, if you enjoyed this review, make sure to drop a like at the bottom of the video. Thank you guys so much for watching as always and the humble trader and i'll see you guys next week, hey guys thanks for watching.

I hope you enjoyed the video and the bad jokes if you want to see more day trading content, make sure to subscribe and follow me on twitter and instagram for more. If you'd like to trade with me daily and get my free weekend, watch list and trading journal make sure to check out the links below for more resources. Stay, green, stay, positive and i'll. See you guys next time,.