I Wish Someone Had Told Me to Stop

If you're trading with money you cannot afford to lose, then you will not win.

It's that simple. Read that sentence again.

And if you think you are trading with money you can afford to lose, but then find yourself stressing about a drawdown, that's a powerful signal your subconscious is sending you. That stress is telling you this is money you cannot actually afford to lose.

If you're trading money you cannot afford to lose, close all positions, move completely to cash, and stop trading.

This forced stop doesn't mean it's permanent. And perhaps that's what hangs people up—the fear that stopping means quitting forever. It doesn't. It's just temporary until you're in a place where the money becomes money you can truly afford to lose.

This mental shift can happen several ways.

It can happen as a result of saving more money outside your trading account, taking pressure off your day-to-day budget. It can happen when you develop a strategy or risk management plan that risks less money per trade and puts less of your total account at risk. It can happen by finding another job or side hustle that brings in consistent, reliable cash flow—ensuring all your bills get paid and savings happen automatically.

Whatever you need to do, stop trading first. Go to cash. Then figure it out.

I wish this was advice I'd heard early in my trading career. There were definitely times I should have stopped trading and spent time shoring up my finances and my confidence. I would be light years ahead of where I am now had I taken the time and effort to do this.

The pressure of trading with scared money creates a vicious cycle. You make emotional decisions because losses hurt too much. You cut winners early because you're terrified of giving back gains. You hold losers too long because realizing the loss feels like admitting you can't pay your bills. Every market move becomes existential.

This isn't trading. This is survival mode. And you cannot think clearly in survival mode.

You will lose.

When you're trading money you can truly afford to lose, everything changes. Losses sting, but they don't threaten your livelihood. You can follow your plan because you're not constantly second-guessing whether you should even be in the trade. You can let winners run because you're not desperately needing to lock in every dollar of profit.

You trade from a position of strength rather than fear.

The market doesn't reward desperation. It rewards patience, discipline, and clarity. You cannot have any of those things when you're worried about making rent.

I can't change my past. But I hope I can help someone's future—someone who needs to hear this message right now.

Stop trading. The market will always be here and ready for you when you come back. Stronger, mentally prepared, at ease, and trading from a position of strength.

Sean McLaughlin | Chief Options Strategist, All Star Charts