The Rational Investor was a game-changer for me, unlocking the secrets of managing money like a Wall Street pro.
Early Trading Mistakes
In early 2019, I joined The Rational Investor (“TRI”) community, a decision that marked the turning point in my tumultuous trading journey. Before that pivotal moment, I was just another speculator caught in the frenzied crypto bull market of 2017. My adventure began in the summer of 2017 when Bitcoin was a mere $3,000. Enthralled by the digital gold rush, I rode the Bitcoin rollercoaster to its then-peak of $20,000, only to plummet back down to where I had started without taking any profits. And it wasn’t just Bitcoin; numerous altcoins – which I now refer to as ‘shitcoins’—filled my portfolio showing zero returns. My buying strategy was unsophisticated, often making purchases at the top and watching their value dissolve to nothing.
The madness didn’t end there. Once, a friend’s hot tip on a new crypto token, XRP, had me buying in $0.20. As its value skyrocketed to $3, greed took the driver’s seat; I failed to cash out, and the subsequent fall back down was a harsh lesson in profit-taking—or the lack thereof. Like many novices, I was struck with the affliction of greed, unable to recognize the right time to exit.
My initial foray into trading more than a couple hundred bucks actually began a decade earlier, in 2008. At a trading conference, I won a book on futures trading, and fueled by enthusiasm, I immersed myself in its content. I eagerly funded my trading account with $10,000. Yet, my lack of experience led to a gradual drain to nothingness—I had blown up my account. But back then, being single and holding a well-paying job, I quickly replenished the funds. Inspired by reading Reminiscences of a Stock Operator, which details the life of legendary trader Jesse Livermore, I attempted to emulate his strategy of adding size to winning trades. This approach swelled my $10k to about $160k, only for me to witness a $60k loss in just two days. Devastated, I stepped back from active trading, recognizing a critical gap in my skill set. I was only successful if the market was going up and not truly how to trade sideways or down markets.
Turning Point with The Rational Investor
Fast forwarding back to my rollercoaster in crypto, I subsequently and thankfully came across Davinci Jeremie, an early Bitcoin advocate who, back in 2012, encouraged everyone to buy at least one Bitcoin when it was only a few dollars. While I missed his advice in 2012, I thankfully took his advice in 2019 and sought education at The Rational Investor, where Davinci had honed his trading acumen.
Despite my initial hesitation, I purchased the level 1 course; this proved to be the best investment in my trading education. At the time I purchased the level 1 course, the cost was $1,000 (prices have since marginally increased and remain a great value) and I can readily attest I have made more than $100,000 in trading profits (100x return on the cost of tuition) from my lessons at TRI. This education has been invaluable. I wish I had come across The Rational Investor’s trading courses years earlier versus wasting $100k to attend a top 10 business school where I only learned financial theory. The Rational Investor reshaped my approach to trading from a casual hobby to running my portfolio like a trading business. They taught me about proper position sizing and entry/ exit strategies tailored to my personal trading style.
The beauty of TRI is that while all students take the same curriculum, we are individually attracted to different trading approaches, and we come out with our individual styles and business plans. Over these years I have grown as a trader, shifting from mostly trading crypto to buying options, to now primarily selling options.
I have remained adaptive, ensuring my strategies stay resilient through the ever-evolving financial landscapes. This adaptability and disciplined approach have been constant, no matter how my trading preferences have changed over time.
The impact of this education extends beyond my trading screen. The skills and confidence I gained allowed me to secure a home for my family and provided me with the financial security to know that even in the event of a job loss, I have the means to support my loved ones through trading. Further, the Rational Investor community, ever so supportive, is always there, ready to provide insight and advice, through its trading rooms.
The money spent on The Rational Investor’s courses is, unequivocally, the best money I have ever spent on trading education. It remains one of the best-kept secrets in the world of investing. My journey from financial ruin to a place of stability and growth has not only changed my portfolio; it has changed my life. Happy trading.