The principles of money

90% of traders lose 90% of their money in 90 days

90-90-90 Rule

My Origin Story

When I became interested in the stock market, I read mostly about these major success stories.  People turning $1000 into $1,000,000.  Or Warren Buffett’s strategy of buying businesses and becoming a mogul.  What I gathered from those stories was that you needed big strategies to get big money.  I didn’t have the time to become a day trader because I have a job and a family that demands my time.  I started out investing in marijuana companies.  It was a growth industry that I (still) believe will be profitable, one day.  I researched a company that I wanted to invest in and bought 100 shares.  After a few months the stock was trading 9x for what I bought it for. I was hooked. I watched the stock every day and read anything that was written about it.  The company bombed earning after earning and the stock price began to drop. I ended up selling at a 4.5x profit.

The Downfall

It became an obsession.  I jumped from marijuana to tech stocks and watched my account balloon. Then in 2022, I lost about 90% of my trading account.  I had to take a hard look in the mirror and examine who I’d become.  Trading stocks had become an addiction.  It created a lot of stress and anxiety when trades were going against me.  It was no longer about retirement; it was about the thrill of the win.  I had moved from investing in growth companies to speculating. I knew terms like double peaks and moving averages.  Signs that I was moving into trading territory.

What I Know Now

I thought I had investing knowledge. The truth is I just got lucky with a bull market favoring at times marijuana and tech companies.  Thankfully, I’ve kept my personal investment account and retirement accounts separate. My original desire to pad my retirement account with personal investments was born out of fear.  I didn’t think that my contributions would be enough to comfortably retire early.  I disregarded the power of compounding. I kept moving the retirement number up.  I was operating with a lacking mindset.  It caused me to become greedy and want more. 

An Investor Reborn

I knew I no longer wanted to be glued to the screen stressed out over a trade that had loss 10%.  I value peace and order in my life.  Watching endless stock market content was in direct opposition of my values.  After taking a year off, I came back to the stock market with a long-term view.  I am embracing the slow path and can still reach retirement in 15 years.  I had to acknowledge my past behavior.  I had to learn to stop moving the goalpost and enjoy the journey to my destination. I based my new and realistic retirement numbers off of Investor.gov’s retirement calculator.  They have great financial calculators free for use.  This is a great resource to help you find how your investments can grow over time.  One book I recommend is The Millionaire Next Door by Thomas J. Stanley and William D. Danko.  This book helped me to see that I didn’t need big wins and plays to become wealthy.  There are average Americans who are millionaires with regular jobs like mine.  

Take Back Control

Trading was a time-consuming, stressful, unprofitable activity for me.  Through self-reflection, I was able to change the way I think about investing.  Take some time to think about your investments and if they are bringing you peace in your life.  If your portfolio is stressing you out, step away. Take that time to reevaluate your motives.  Come back when you are ready and take back control of your investments.