This week, we’re mixing things up. Instead of your regularly scheduled Steady Trade Podcast, we’re bringing you a special episode to explore a big event in the world of trading this week: Stephen’s Emotional Blow-up.
This week, host Stephen Johnson had a public trading meltdown, resulting in controversy and much speculation about his future as a trader. This may be one of the most important, episodes yet, wherein Stephen, along with co-host Tim Bohen, discuss the emotional side of trading. This episode gets pretty raw and approaches trading psychology very honesty. It’s something that every new trader must hear!
Stephen’s emotional blow-up
This episode was recorded on the fly, only about 24 hours after Stephen’s emotional blow-up. Everything is still quite raw, but that’s why it’s important to address right now. In a nutshell, here’s what happened:
Stephen suffered a series of losses. These losses have been documented in several recent episodes, which can be found here and here.
Then, last week, things seemed to be back on track. It had started out as a green week, and Stephen was finding consistency in what he thought was a new reliable setup.
He was up $600-700, but then, after a few good trades, he did the unthinkable: he broke the rules, broke the pattern, and didn’t cut on time.
Basically, Stephen broke his mentor Tim Sykes’ cardinal rule: he didn’t cut losses quickly.
Tim Sykes took notice and called Stephen out on his behavior. Let’s just say that Tim Sykes doesn’t like it when students don’t follow the rules, particularly the most important rule!
It snowballed, and Stephen began to think the unthinkable: “maybe I should quit trading.”
What resulted can only be called a Twitter war. Stephen received an overwhelming amount of feedback from all sorts of traders, ranging from viewers of his YouTube channel to trading celebs like Roland Wolf to even his mentor Tim Sykes.
Lessons to be learned
Through his experience, and through the controversy raised through Stephen potentially quitting trading, there are many lessons to be learned in the episode, including:
- If you don’t think you’re in for pain with trading, you’ve got another thing coming. Tim and Stephen talk about the very real emotional and financial pain that comes along with the adventure that is trading.
- It can be very rocky. As Stephen says in the episode, “Sometimes you hate yourself, sometimes you lash out on other people, sometimes you have arguments with your mentor…sometimes you’ll threaten to quit.” These crazy things happen when emotions get involved in trading.
- Trading can be cruel before it is kind. As Stephen observes in the episode, “Trading is the best thing in the world to achieve, but one of the hardest things to manage to do.”
- Learning from your mistakes is extremely hard. If Stephen keeps on making the same mistakes, does that mean he’s not learning from them? Not necessarily. In the episode, you’ll learn some proactive steps that traders can take to break free from the terrible (yet common) cycle of making the same mistakes over and over.
- Trading is hard. There’s no doubt about it: trading is an emotional roller coaster. Tim and Stephen talk about this in a very real and raw way that will prove helpful to traders at all levels.
- Respect your mentors. Twitter war aside, this experience has reminded Stephen of the good things that Tim Sykes has taught him, and reminded him of some of the basics he must keep in mind to move forward.
Is it a happy ending?
Well, is Stephen quitting or what? Throughout the episode, you’ll see Stephen explore the pros and cons of sticking with trading. You’ll listen as he and Tim evaluate his passion for the process and what he has built so far in his trading career. So what will he decide? Listen to find out Stephen’s next steps.
Let’s keep it Steady!
Do you have a question for Tim and Stephen about the episode, or another trading topic? Visit the “submit your audio” portion of the website to ask what’s on your mind. You may be featured in an upcoming episode!
Thanks for tuning in to the Steady Trade Podcast! Stay tuned for weekly episodes focusing on topics relevant for aspiring traders!
Did you love this episode? Be sure to leave an iTunes review!
Great podcast on the emotional ride of a day trader. I have experienced some of the emotions but not in the severity that that Stephen but I am aware that they could be coming. I am a student of day trading and hope that I always will be.
Good Luck Stephen, I hope you find the discipline that you need to be successful.
Every hero in all of history has suffered enough to seriously feel like quitting at least once in their life. And you, Stephen Johnson, are definitely a hero! You have taken on so, so much in learning to trade alone. Add to that that you have a paying job and all the work involved in documenting your entire journey (i.e., your amazing transparency)! You are an absolute treasure! THANK YOU FOR EVERYTHING!!!
Another very important lesson here. Thank you, both!
In support of Stephen:
This was one of the most real talks I have heard in a long time. Hats off to both of you. I am also a challenge student that is in my 10th month. I am at a break-even point financially, however, I am improving my skills like Stephen. I just finished reading a book that is truly a great help with your emotions. I suggest Stephen get a copy. It is best read after you have traded for awhile and lost significantly a few times because it will help you understand what you are doing well and poorly. It shows you how to catch/manage yourself and gives good examples which after a year of trading you will appreciate.
The book is The Disciplined Trader: Developing Winning Attitude by Mark Douglas. I am retired (68) and have lost $1 Million in Real Estate, had many setbacks and lived to tell about them. Stephen remember this: Stay the Course. Each day and every day “Begin Again”. Best wishes. John Lannon (PortTack321).
Best episode yet! I can relate with Steven, you just feel so bad, because you did it again, and you try and try but yet it happens again. So thank you for allowing me to know that Tahiti’s normal. To master self discipline is the true journey of becoming a successful trader, not the money.
Inspirational!!!! You guys are partners at work and friends at action. A real friend will yell at you and try to bring you back from whatever situation you are in. You guys are a great team. Tim Bohen and Sykes are great mentors. Stephen, you are very lucky to have them a call away and work with them. Please keep recording your journey, it will definitely pay off soon. IMHO looking from outside the lines. The best traders I have seen online and Twitter took 2 to 7 years to figure out trading. I yourself pressuring of maybe comparing yourself to some outliers making it in a year or less like Grittani, Dux, or Roland. I could be wrong on my opinion but there are lots to learn on this episode, thanks guys.
Hi guys, I have watched all the Podcasts and they are all great but this is definitely the best one. When I saw the tweets from Stephen saying he was quitting I was thinking noooooooo. I am only new 6 months into the challenge and as I am trading small I have never experienced highs or lows yet but I really look up to Tim S, Tim G, Michael G, Mark C, Dux and Huddie but I really look up to both you two guys Tim and Stephen who take time out of your busy schedules to help all us traders and for that you guys get the greatest respect from me (as well as all the other gurus).
I am so happy Stephen is continuing and I believe in the future this will be a great story to look back on, maybe a turning point for Stephen and a fantastic lesson for us all not to quit ever on this marathon journey.
Thank you Tim and Stephen
Hi guys, I have watched all the Podcasts and they are all great but this is definitely the best one. When I saw the tweets from Stephen saying he was quitting I was thinking noooooooo. I am only new 6 months into the challenge and as I am trading small I have never experienced highs or lows yet but I really look up to Tim S, Tim G, Michael G, Mark C, Dux, Roland and Huddie but I really look up to both you two guys Tim and Stephen who take time out of your busy schedules to help all us traders and for that you guys get the greatest respect from me (as well as all the other gurus).
I am so happy Stephen is continuing and I believe in the future this will be a great story to look back on, maybe a turning point for Stephen and a fantastic lesson for us all not to quit ever on this marathon journey.
Thank you Tim and Stephen
Thank you very much Mick!
Thank you for openly sharing this story! I needed to hear it, as I have recently “justified” bad moves in my mind when trading, and I’ve suffered the consequences of not following the plan. I appreciate the advice given in this episode, and I’m looking forward to the next one!
Thanks Jo Ann!
So heartening, I think a lot of traders feel this way at some point. So glad you both do share your experiences.
Thank you Shorty!