John Meli’s dad was a racecar driver. So John grew up believing that he had no limits. If someone else could do something—so could he. John worked in construction and things were going well until the recession hit in 2008. He went from making $16,000 a month to barely getting a neighbor to pay him $50 to paint a room. He asked some friends about the stock market and decided to give it a try.
He played around with penny stocks in the stock market. Then he got hooked on Forex. He put money into it without knowing what he was doing and he blew two accounts. But he emphasizes that he isn’t a quitter. He doesn’t give up. He believes if you are willing to walk away, you don’t have what it takes to be a trader. Successful trading requires people, regardless of their favorite trading strategy, to continue working to overcome obstacles and stick with their trading plan. So what path did he take to turn things around and become a profitable trader? Listen to this episode of How To Trade It for his story!How did John Meli find his ‘Winners Edge’? Learn more in this episode of the How To Trade It podcast! #stocks #stock #trading #StockMarket #Investing #DayTrading #StockPicks #Mindset Click To Tweet
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- [1:12] John’s backstory: construction to trading
- [5:30] The biggest challenges John faced
- [7:19] Dealing with discouraging losses
- [14:39] How Winners Edge Trading changed the game
- [19:26] How John manages multiple accounts
- [21:55] Managing accounts for cashflow
- [24:15] John’s trading strategy
- [28:38] John’s experience teaching others how to trade
Dealing with discouraging losses
John’s biggest challenge was trying to find somebody that would teach him how to trade. He thought he could do it on his own, but he kept losing. He just wanted to make $100 a day. But all of the trainers he came across were all a bunch of gimmicks. John had to stop himself from trading and switch back to demo trading.
John consistently lost money for four years. He’d make money here and there, then lose the account. He started seeing trades and found a way to make money. It would take all day to make $50 and then he’d lose it. He kept experimenting with the market, trading more, and would lose more. He wasn’t using a stop. He didn’t have good entries. He was teaching himself bad habits. The effects of trading psychology were beginning to take their toll.
He bought software that told him where to get in and get out. It recommended 5 trades to get into (and he was already in them way too early). But he ended up making $7,000. He was hooked after that. He never had a trade like that again, but it was enough to keep him going.
How John Turned Things Around: Winners Edge Trading
John took our Winners Edge Trading Course and saw how we did things. Our program uses a higher percentage to trade on accounts. So instead of trading 1%, he started trading up to 5% to use his small account to make money. His account started to grow. He learned that it’s all about money management.
Fast forward to now, and he’s been consistently profitable for 3 years. He wrote a trading plan with rules and stuck to them and it changed everything for him. He started journaling as well. He points out that most traders are rule breakers—and he was no different. He came in thinking he could break all the rules but found that he needed rules to be successful.
He started doing YouTube videos teaching people to trade. Teaching is what made him realize he needed to have rules to follow. It forces you to look at your own methodologies. How do you get in a trade? How do you get out? You want to teach what is proper, which keeps you from breaking your rules. You can teach yourself by critiquing everything you do. Look at the good and the bad and change the bad.Learn how John Meli turned things around with Winners Edge Trading in this episode of How To Trade It! #stocks #stock #trading #StockMarket #Investing #DayTrading #StockPicks #Mindset Click To Tweet
How John manages multiple accounts
John created a system that he uses to manage his money. Many people trade a max of $5,000 and can make $50-$100 a day. You can make some money, but it doesn’t feel like enough. So John added a second account. It allows him to continue making smaller trades, but he was able to make more money.
He started using trade copier software so he could use one master account with three accounts in it. So your $50 turns into $150 (if you’re profitable) but you’re only trading one session. John only trades the first 2–3 hours of the open session in London, Asia, and New York. He tries to stay away from everything else.
If he loses three trades in a row, he knows something is wrong and backs up. He’s not in sync with the markets. He points out that no matter how good your technical analysis is, you’re likely going to be wrong 25% of the time. 10% of losses are simple mistakes. So your entry points need to be precise.
Managing accounts for cashflow
John takes money out of one account (that he rotates) every two weeks to pay the bills. If he takes too much out, he doesn’t make as much and would have to go out and find a job to replace the money he took. He recently took on a kitchen remodeling job so he could add another 2 accounts. So he’ll have enough money to be able to get by and start putting money into a retirement account. What is John’s trading strategy? How has his experience teaching others how to trade made him a better trader? Listen to the whole episode to learn more!How does John Meli manage his trading accounts to maximize cash flow? Listen to this episode of How To Trade It to hear his strategy! #stocks #stock #trading #StockMarket #Investing #DayTrading #StockPicks #Mindset Click To Tweet
Resources & People Mentioned
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