40 Trading Lessons from 20 Years in the Market (2025 Edition)

If you’re looking for real trading wisdom that comes from two decades in the trenches-not theory, not fluff-this is it. I’ve blown up accounts. I’ve made millions. I’ve coached over 7,000 traders. These are the 40 lessons that have stuck with me through bull markets, bear markets, and everything in between.

Whether you’re feeling stuck, overwhelmed, or just one breakthrough away, this cornerstone guide is designed to meet you where you are. The 40 lessons are not just a collection of wisdom, but a practical roadmap organized into 5 key phases that every trader, regardless of their experience level, goes through:

Let’s dive in.

Phase 1: Mindset — The Foundation of a Trader

1. If It Ain’t Tight, It Ain’t Right

Every great breakout-whether it’s Nvidia, Tesla, or SMCI-has one thing in common: tight price action. Your 9 EMA should be curling right under the breakout point. Loose patterns = failed trades.

3. Cut Losers Fast

Dead money is no money. Opportunity cost kills traders with small accounts. There’s no reason to be in a dead trade when other setups are running.

4. Let Winners Run

Hardest lesson for many. Use higher highs/lows, EMAs, and scaling out to stay in the trade. Train yourself to ride the waves, not bail early. This one was the hardest for me. If you take profits all the time, you’ll miss out on these huge winners. If you hold the big winner, that’s the stock where you made good profits and then gave them back! I like to be dynamic with my sales rules. I use a reasons-to-sell list that has 10 different factors that could cause a stock to sell. If we use a standard “hey,” and we hit resistance, we will miss out on many big runners.

5. Three Taps Are for Winners, Two Taps Are for Losers

Most successful breakouts test resistance at least three times. Two taps usually lead to double tops, not clean breakouts.

6. Trade Stocks in Play

News + technicals = fire. You’ll get bigger moves and more predictable follow-through. A pure trendline without volume or catalyst is weak.

Phase 2: Setup — Your Bread and Butter

8. No Setup, No Trade

This is gospel. If you can’t name the pattern, skip the trade.

9. Respect Risk Before Thinking About Money

The only way to stay in this game for 10+ years is to control risk. Period.

10. Use Hard Stops, Not Mental Ones

Mental stops are a lie you tell yourself. Hard stops remove emotion and allow you to stick to your process.

14. Understand Risk vs Reward Math

If your stop is $1, you’d better be aiming for $2–3+. Never take 20 cents profit on a $1 risk. That math doesn’t work.

15. Trade the First Hour

The first hour is where the magic happens. My superpower? Preparation. I wake up, walk the beach, run premarket scans, adjust my list based on gaps, then narrow from 30 names to 6–12. Then I log into TC2000, mark my key levels, get on Zoom with my students, and start attacking the open. This is where I make my money.

Phase 3: Execution — Where Money Is Made

17. Know Your Strengths and Weaknesses

Be honest. If you suck at pullbacks, don’t trade them. Master one thing before branching out.

18. Earnings Season = Opportunity

Some of the biggest trades I’ve ever taken came from post-earnings setups. AVGO. Tesla. Palantir. Learn to love earnings season.

19. Let the Chart Tell the Story

News, opinions, social media-ignore it. Follow the price. Patterns don’t lie.

20. Protect Your Mental Capital

If a trade stresses you out, you’ll make mistakes. Avoid setups that drain your energy.

21. Review Daily, Weekly, Monthly

Daily = journal. Weekly = P&L and pattern analysis. Monthly = strategy and performance audit.

22. Let Patterns Come to You

Please don’t force it. Hot stocks provide multiple trading setups each day. Wait for the clean one.

23. Volume Confirms the Move-But It’s Not the Move

If you buy because of volume, you’re the last man in. Use volume to confirm, not to enter.

Phase 4: Management — Stay Alive, Stay Profitable

24. Pyramid Like a Pro

Only add to winners with new setups. Don’t just pile on. Each add = a new trade.

25. Cash Is a Position

When in doubt, sit out. No setup, no stress.

26. Diversify, But Don’t Dilute

Spread your risk across 2–4 trades. More than that? You’re overexposed and underfocused.

27. Adapt to Market Conditions

In hot markets, you can trade more names. In choppy ones, trade smaller and tighter.

28. Don’t Copy, Learn

Take what works from other traders, but develop your voice. Great traders don’t follow-they lead.

30. Position Size Intelligently

Size your positions based on both the setup probability and your account risk. Don’t go heavy on B+ setups.

31. Maintain a Daily Prep Routine

I’m not the best trader. But my routine, done every day for 20 years, has kept me in the game.

Phase 5: Mastery — Stay in the Game for Life

32. Respect Overnight Risk

2025 showed us how tariffs, elections, and rate hikes can ruin swing trades. Don’t get smoked holding bags overnight.

33. Focus on Liquid Stocks

Avoid illiquid garbage. Stick to names with 5–10M+ in daily volume. Less slippage, more control. Focusing on liquid stocks gives you more control and confidence in your trading journey.

34. Master Your Emotions

Blowups happen when emotions take over. You’re only as good as your psychology.

35. Backtest and Forward Test

Yes, backtest. But also forward test. 2025 is filled with AI, algos, and freaky price action. Old patterns need new verification.

36. No Home Runs Needed

Stack $500 and $1,000 days. You don’t need the unicorn trade to make it.

37. Continuously Level Up Mindset, health, psychology-keep improving every quarter. You are the edge. Embrace the power of continuous learning and adaptation to stay ahead in this ever-evolving Market.

Mindset, health, psychology-keep improving every quarter. You are the edge.

38. You’re Not Trading Charts-You’re Trading Your Dreams

We all want freedom, revenge vacations, and to prove the haters wrong. But the chart doesn’t care. Keep it technical.

Want to Turn These Lessons Into a Profitable Strategy?

39. Learn From Those Ahead of You

I’ve taught over 7,000 traders. The ones who stuck to the process, reviewed their trades, and managed risk are the ones still here.

40. Invest in Your Growth

Get mentored. Join a community. Don’t go this alone. Trading is too complex to understand in isolation.