Am I Losing Money Trading?
Have you ever asked yourself, "Why do I keep losing money in the stock market? Is maybe trading a losing proposition?" Now, June was tough, no doubt about this. June 2020 was tough to trade. And since I'm 100% open and transparent with you, I shared the results in my last video. So let's just
go back and show you what I did. I was showing you that I am trading a rather small account publicly here. And on this small account, it's a $20,000 account you see that I was down $1,917, $1,917. So, almost 10% and it seems that this prompted one of my viewers here to leave a comment. This is the last video
that I did. I clipped the comment and highlighted a few things because it's really important. So Paul says, "Markus, your win rate is too low to make money and this confirms why trading is a losing proposition," and it keeps on and you see I highlighted here where he says, "You are providing proof that using technical indicators and systems taught by most gurus do not work." So you can read the comment yourself underneath that video. So this is where he says, "So this trading game is a scam that no one wants to share with the public."
Okay, Paul, no one wants to share with the public? I share my results publicly and as you can see the last video that you have seen and others has 2,452 views. Anyhow, so I, of course, had to respond to Paul and said, "Paul, I kind of disagree." While the spreadsheet is only for the month of June, and I told a little bit more about my results.
And this is where Paul keeps saying, "Well, Markus, excellent results for April and May because the overall market rebounded. However, under normal conditions like in June." Okay, so, Paul, let's back up here for a moment and then we take a look at this. Normal conditions like in June? Here you see the S&P 500 so June starts right here. So you think,
Paul, that these are normal market conditions? No. Normal market conditions is when the markets are trending. These here are normal market conditions. You see, if we just scroll randomly back, you see the markets like to trend.
This is normal conditions. And yes they trend to the upside and they trend to the downside. Going sideways like this is not a normal condition. So let's just be clear here and let's call it what it is, let's keep it real. Anyhow, so Paul goes keeps going on, so I again, Paul believe that you're wrong there.
So Paul then says, "Big pros 90% of the time trade only buy calls or puts. This is reality," as Paul likes to say. "And this is why the JPM, JP Morgan's, and GS, Goldman Sachs make money at their desk every day." Okay, so I just want to show a few things, I want to share a few things with you. I want to share my real results on one of my accounts and this is the account that I trade publicly here on YouTube together with you.
Now, I have a total of eight accounts, I recently counted. So I have eight accounts, this is only one of them. So this is where I have a smaller account of $20,000 and another one that I trade publicly where there's $25,000 in there. So these are the smaller accounts. Now, I want to show you
exactly what happened here. So I pulled the account statements. So this is the first account statement and this is for April. Now, again, we're talking about the second quarter here. So we're talking about April, May, and June. So, April, as you can see here, the results that I received, achieved on this account was $4,854.34.
OK. So what about results in May? Again, showing you real account statements, this is, again, one of my accounts because I keep it real I mean, I have nothing to hide here. I'll show you openly what happens here. So in May, I made
$8,522, you see it right here and 13 cents. Now, the results in June, I haven't received the June statement just yet. It seems to take a couple of days until it is posted in my account. But hey, I told you, I keep a log where I know exactly where I stand. So in June, I was down $1,917. Okay, so let's write this down. Nothing to hide here, I'm
telling you the good, the bad, and the ugly. Yes, I mean, April was good, May was awesome and June was meh. Didn't go that well. So let's just take a look
at this. So the total here over the past three months is $11,459. And again, these are accounts in one account is $20,000, this is the account that I traded in April and May.
And then towards the end, no, $25,000 was in there. You get the idea. So let's just do some quick math here, because I want to prove Paul wrong, because, Paul, I don't think that you're right here. So if you're dividing this by $25,000, this means 45.8%. So let's just round it down and let's say I made 45% in three months and this is trading publicly here on YouTube. You have seen it.
Now, if I could keep this up, if I could keep this up that would be 180% per year. I mean come on. This is insane. I'm great, no I'm not great, I'm a good trader I have been doing it for a long time, right? So 180% per year, I'm not achieving it, usually I'm between 100% to 120%. So I mean, I'm not even expecting the 45% in three months. You see, even with a losing month here, still, it worked really, really well.
But hey, this is where Paul says, "This is reality and this is why JP Morgan and Goldman Sachs make money over you and me." So I'm going to TradingView and let's take a look at JP Morgan. And what we want to do is I'm going to switch to a monthly chart because I want to see how well did JP Morgan do for the past quarter, shall we? Hey, by the way, is this helpful thus far? Are you enjoying this? Because if you do, before we move on do me a favor and click on like really quick so that I know that you're enjoying this because then I'll keep going and I'll show you exactly of why I believe that Paul is wrong, why I believe that small traders like you and I can run circles around the big guys. I'll show you what the big
guys did last quarter and I'll show you what exactly you need to succeed. So if this sounds good to you do me a favor and click on like really quick. OK, so but let's go back. So let's talk about JP Morgan and again, I switched to monthly charts. So we're looking of what did they do from April 1st till June 30th? And as you can see, they are at 9.9%. So let's say 10%
for the quarter. So results from the "big guys," yeah the ones that always make money at their trading desk every day. So JP morgan around 10%. Now you see this where I also believe that there are bigger guys. Let's actually take a look at Warren Buffett, right? So Warren Buffett, as you know, he also has a publicly-traded fund it's Berkshire Hathaway.
So let's take a look at BRKA and let's see how Warren Buffett has performed in the last quarter. So we will do the same thing here. We look at monthly charts. We go from April 1st until June 30th and what do you know? 1%. I mean, is Warren Buffett a good trader? He's more of an investor, right? But I mean, many are, and I'm pretty sure that Paul would agree that Warren Buffett he's the big guys who always make money.
Well, Warren Buffett made 1%. And again, this is based on the return of the Berkshire Hathaway account here. Okay, now let's take a look a little bit more of the big guys. So you see, Paul, this is where I want to show you results of BlackRock, for example, because BlackRock is American global investment management as you can see, and it is the world's largest asset manager. So they have 7.4
trillion dollars in assets under management. So they're running circles around Goldman Sachs and JP Morgan. But so let's take a look at these guys, okay. So they obviously are managing money that's what they do for a living. So, Paul, you might think that they have the best tools ever, right? So let's take a look at their results over the past quarter or even over the year.
So these are their funds I'm on their website this is BlackRock.com. These are BlackRock's investment funds. And you see, we can take a look at year to date their top funds. I mean, this is a fund that has 65 billion with a B, 65 billion dollars under management. And thus far for the year, they lost 11.52%. So
as you can see, these guys lost 10%. Here minus 3%, minus 11%. So if you look at BlackRock, I would say they're probably down around, what? 10%? Thus far for the year. I couldn't find the quarterly data, but I hope that Paul and everybody else who is skeptical, can you really make money with trading, I mean, you would agree that it's safe to assume here to say that, OK, we're probably down 10% for the year thus far. Again, couldn't find the quarterly.
Paul, let's, let's go back, let's take a look at this, what we have here, right? And now look at my results. So, again, I also want to be absolutely clear. My results are not typical at all. I'm really, really good at this because I've been doing it for a long time.
And yes, I do have losing months, it happens. But you see, overall, if you take a step back and look at the quarterly performance, I'm still doing really, really well, I'm outperforming the big guys. So anyhow, let's take a look at this. This is where Paul said, "This is reality and this is why JP Morgan, Goldman Sachs make money," actually. So I told them, "You know what, dude? I disagree with you." I really went into a discussion.
And he says, "So JPM and Goldman Sachs will always make money over you and me." Well, if this is true how come that I'm running circles around them? Anyhow, so okay but it gets even better. So because now it gets really, really good. As you can see, I'm having fun with this. I appreciate the comments. I can understand that people are skeptic. And now Paul gets really, really bitter and very, very skeptical here.
This is where he says, "All the knowledge shared to the small traders are for them to lose money." Okay, so he's kind of implying that what I'm doing here on YouTube, what I'm sharing is for you to lose money. And I don't know about you, I mean, you tell me, what is your feeling? If you have watched any of my videos, do you feel that I'm sharing this so that you lose money or that you make money? If you think that I'm sharing this to for you to make money, click on like, do me a favor.
But hey, it gets really, really good right now. And then I'm also sharing the three things that you need in order to make money in the markets. But here, okay watch this. "You should know by now, most of the gurus are teaching nothing new and selling services to make money.
If they can consistently make money trading, then they would use their time trading instead of teaching and collecting money. That is a fact." Well, Paul, I again want to prove you wrong. So first of all, if you have been following me on this YouTube channel, then you know my trading style and you know that I'm trading for maybe 30 minutes in the morning and that's it.
So, Paul, what am I supposed to do all day long trading? I mean, if I would trade all day, I would probably lose money. I mean, the best guys, that's what they do. They put on a position and let them run for a few days here. But, hey, since you are kind of attacking me and saying that I am just sharing knowledge and selling stuff to make money, I'm going to prove you wrong. Okay, so here's the deal.
I thought it might be fun for you to see my W-2. Yes, I mean, obviously I do have an education company. It's called Rockwell Trading. And yes, I am receiving a salary from my own company.
So let me share this with you. And I hope that I blurred out the right things that I can share this with you here. So as you can see, this is for 2019. It is 2020 right now. As a compensation from this company, from Rockwell Trading my company, I receive $25,988. However, out of these, $18,461 was withheld for taxes.
So this means that as a salary from this company last year, I made a whopping $7,527. So, Paul I don't know about you, but my living expenses are slightly higher here. In fact, my living expenses are around $12,000 a month that's the lifestyle that I personally enjoy. Anyhow, so now, of course, Paul or any other skeptic might say, "Well, hold on.
This is only your W-2. You might have taken distributions from your company." And you know how this works, right? You know that many CEOs, they only get $1 because then they get a lot of distributions. Hey, before I show you how much I got in distributions, are you enjoying this? I mean, I want to be as transparent as possible with you. And also, I am not here to sell you anything. I am not here, my life won't change whether you invest in the software or not.
But it makes me happy to see all the comments that are flying in here where you say, "You know, this is super helpful," this is helping you in your trading. Where you're using the tools and strategies that I give you to make money. Anyhow, okay, my CEO in the company is probably gonna kill me, and so does my accountant and probably everybody else, because what I'm about to do is probably absolutely stupid, but I'm doing it anyhow.
I'm going to show you the balance sheet of Rockwell Trading for 2019. This is the balance sheet for my education company, Rockwell Trading for 2019. And as you can see, owners equity, owners equity.
This is, on this row, it usually shows you how much money I would receive, but I'm contributing. Current year for 2019 I put $643,980 into Rockwell Trading. And the year before, in the years before, I personally, from my own money, put $690,000 into the company.
So I'll come back to this here in a moment. I am not taking any money out of the company, I am putting money into the company. So as you can clearly see here and I mean, I don't think that we are a public company, but I'll be happy to show it to you. Over the past few years, I put close to 1.4 million dollars, 1.3.334 million dollars
into Rockwell Trading to develop the PowerX Optimizer, to develop the tools, the program, the software to have a team here for you. Now, you might say, "Well, that doesn't sound smart. So maybe you won't do it for very long because maybe you don't like to have a company that is not making money, but it is losing money." But here's what I want to show you. Have you heard about this company, Tesla and the owner, Elon Musk? Tesla is 10 years old.
Tesla first started trading in July 2010 so it's exactly 10 years old. Tesla to date has not had a single profitable year. So why is Tesla worth so much? See, Elon Musk who founded Tesla got 160 million dollars when he sold PayPal and he put most of it right into Tesla. Why? Because he's passionate about it. And I'm the same way.
Doing this here, being on YouTube for you, showing you, being as transparent as I can and showing you exactly how much I'm making, how much I'm losing, what Rockwell Trading the company is making. And yes, right now I am putting money into the company because I am on a mission. This, this here is my passion project. And if you haven't experienced it by far that I love doing these things, then you need to watch some more videos here, anyhow. So I'm absolutely OK if I'm not taking any money out of Rockwell Trading for the next 10 years, right? I mean this is where I'm pretty much like Elon Musk. I'm nuts, but this is what I want to do here.
And again, I want to show you also a few things of what you need. But I want to show you one more Skype that I recently had with my head coach, Mark Hodge. Let me just come back here. So, as you know, last week I took a few days off, so I decided a few days off, so, therefore there was no Coffee on Friday last week.
And I really wanted to completely disconnect and not do anything for Rockwell Trading, for the company, for just two days, for just two days. However, on Friday, this was the second day that I took off. I texted Mark and I said, "Good morning," so this was last week, "spending a few minutes on the computer to place trades," because that's what I always do, I always place computer and the trade.
And I ask him, "Hey, any idea why this wouldn't happen?" And I say, "OK, I answered my," I had a brain fart, it happens, right? And so Mark is asking, as you can see, "Having fun with your break?" And I said, "Not really. I think I'm addicted to Rockwell." And Mark says, "Whenever somebody is concerned about lifetime," lifetime updates for the software, for example, "I'm going to share this." Anyhow, I thought
this was funny, I hope that you find this entertaining. But, hey, let's talk about, because the topic of today is, Why do I Keep Losing Money In The Stock Market? Hey, by the way, if you want to support me in my mission and if you found this entertaining and also if you like the transparency that I have, do me a favor and share this video. Share it with as many people as possible so that they see what we are doing here because I believe that you and I, we are on a mission here. And the more people we can reach with this of keeping it real and showing it is absolutely normal to have losing month.
It happens to the best. Not saying that I'm the best, but I'm usually pretty good at this, anyhow. So let's talk about right now the three things you need to succeed with trading, okay? Because I think that this is really important. Number one, here's what you need. You absolutely need a trading plan or a trading strategy.
So what does this do? A trading plan or trading strategy tells you exactly what to trade, it tells you exactly when to enter and it shows you exactly when to exit. Now, you have seen my trading plan. I'm showing it all the time here on YouTube, so by now you probably know it. Here is the other two things that are super important that you need. Number two, you need to have the right tools.
And you know the tool that I use is the PowerX Optimizer. So the PowerX Optimizer is a software that makes my life much easier and answers exactly these three questions. So let's just stick here with the tool for one moment before I reveal the third thing that I know to succeed with trading. You might know lemonade
stands, right? I mean, lemonade stands let's talk about this. There are professional lemonade stands. You're probably more used when you think "lemonade stands" to this one. Take a look at this, everybody can open a lemonade stand, right? And how much are they asking here? $0.50. Now, with the professional lemonade stand, how much is a regular lemonade? $3. Now, does this look more professional? Do they have more professional tools than this lemonade stand? See, what I'm showing you here applies to all areas of life, whether you have a lemonade stand or give you another example here as well. So if you want
to make more money, you need to have the right tools. I mean, don't bring a knife to a gunfight. I mean, yes, absolutely, we are competing with traders at Goldman Sachs, at JP Morgan, at BlackRock and all the other hedge fund companies.
So you want to have the right tools, professional tools that help you in your trading. And I want to give you another example where not only do you need a plan, again, this is for everything, everything that you need, you need to have the right tools. Especially right now as we are all stuck at home. See, when your mom chooses your haircut so you can either do this or you can have a professional do your haircut.
Now, I personally get my hair cut. I know it looks like I never get it cut that I just grow it out, but no I do get haircuts and this here is actually Brian Charles, this is the hair salon that I go to. Anyhow, you get the idea, right? So you want to have the right tools because I don't want to look like this. Anyhow. So what is the third thing that you need here? And the third thing is the right mindset. And here's an important thing, I want to share this with you.
What you believe to be true is true for you. So let's go back to Paul because we started with Paul's comments here. So if we look at Paul's comments and Paul says, you know what? "It is never, ever possible for you to make money with trading." I disagree, but if this is what you believe then Paul I don't think that you will ever be successful as a trader.
If you believe that you can't win this game, you won't do it. Also, if you don't have the right mindset and if you let one losing month, or we have a few losses in a row, if you let this destroy your trading career then you go back to working for the man. I mean, I left IBM. I was working for IBM, I was working for the man, as you know. And if I would have quit trading after one losing month, I would still work for IBM.
The last time I had a regular job where I worked was in August 2002, 18 years ago. So you gotta have the right mindset otherwise, you'll never succeed with trading. Now, this is why for everybody who does have the PowerX Optimizer we do have a private Facebook VIP group. And in this private group, this is where I'm active, my head coach Mark Hodge, where we help you through difficult times, right? I mean, sometimes you might have a losing streak, it happens. It happens to the best, it happens all the time. So you want to have people who are supporting you.
Hope that helps and we also do have a Mastermind group, a private coaching group, so where people work directly with me and most of my job here is giving you the right mindset and saying, you know what? You're doing good. Just keep doing what you're doing or no, there's a few things that you can improve here. Hope that you enjoyed this video. I know that was a little bit longer, but I wanted to make sure that I'm really being as open and transparent with you and that I'm debunking the myth that is out there that you can't make money with trading. Again, June was tough, absolutely agreed. But always keep in mind what you need are these three things.
You need to have a solid trading plan. You need to have the right tools without the right tools, remember the haircut, right? You will never succeed. You need to have the right tools, professional tools that help you here. And then, of course, you do need the right mindset because if you don't have the right mindset, even the best tools won't help you. Hey, as you know, I
am on a mission here so if you would do me a huge favor if right now you could like this video and you could also share this video with as many people as you can, right? Because if you enjoyed this and if you like this transparency, share it with others. Let others know that it is possible to make money with trading. Let others know why you and I, why we are crazy enough to trade, why we are doing this because trading is a marathon and not a sprint. This is why it absolutely makes sense to look at your results over the last quarter and not only over the last months, over the last week, or even worse, over the last trade. Hope it helps and
if you enjoyed this video there's probably a few other videos popping up right now. If you do see this video, click on any of the ones and I'll see you in the next video.
2021-03-15 07:04
