Warrior Trading Creator Shares His Formula for Trading and Life

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Balance is something Warrior Trading founder Ross Cameron has been thinking a lot about lately. At times in his life, he confesses he hasn’t had it. He freely admits he’s of a personality type that can become laser-focused on a task and might not come up for air often enough. But you don’t have to make his mistakes. Here’s what Ross Cameron has learned about trading and life.

 

Ross Cameron Asks: How Much Is Enough

Recently, Ross Cameron was talking to his son about saving. He asked: What does the chipmunk have to do to get ready for the winter? To which his son answered, “Save acorns.”

“I said, ‘That’s right, but how does the chipmunk know if he saved enough? Because he doesn’t know how long the winter is going to be. It could be a very long winter, it could be a very short winter. If at the end of winter, he has used every last acorn, it is not an effective plan.’”

As a trader, Warrior Trading’s Cameron thinks there’s an instinct to save and save because hot streaks have to tide you over.

“You can adjust your cost of living and adjust your lifestyle to the peak market. Because then, as soon as it cools down, you’re going to be dealing with stress and pressure. And so I always encourage traders to seek supplemental forms of income because the more they can supplement their income, ultimately the less dependent they become on trading as their No. 1 primary source of income, because when that is the case, they have more pressure,” says Cameron, who has found with a lot of his Warrior Trading students that those who have been the most successful have multiple streams of income.

“I think that their success can be attributed at least in part to the emotional disposition of the trader — maybe even more than just the skill and the knowledge that you need.”

Cameron adds that to be able to let a loss wash right away and say, “Yeah, it happens,” is a solid mindset to have. It keeps you stable in the highs and the lows.

“Traders who get emotionally impulsive and desperate — like, ‘I have to make this money by the end of the month to pay my rent.’ feel pressure,” says Cameron, admitting some people thrive under pressure but not everyone.

 

Consistency Is Key

While it’s true you can’t time the market and you never know when there’s going to be a hot stock that your schedule doesn’t allow, trying to be consistent in when you trade is a good way to keep your life balance and your income flowing.

“For me, I don’t trade in the afternoons. So whatever happens in the afternoon is sort of irrelevant. But if I traded afternoons twice a week, I could find myself getting very frustrated that I keep having the misfortune that those are the afternoons that nothing’s really happening,” Cameron notes.

“Trying to adopt a consistent schedule is important. And if that means you’re in a hot market, you say, ‘You know, this is the market where I should trade until the 4 p.m. closing bell of regular trading hours or until 1 p.m. to give the opportunity for late morning action.’ Or, ‘This is the market where I really think I can be wrapped up by 10:30 and go do other things.’”

Either is OK and helps traders deal with performance anxiety, says Warrior Trading’s Cameron.

 

Understand the Return on Your Investment

Return on investment is something Cameron has been thinking about quite a bit over the past year.

“In the really hot markets of 2020 and 2021 before things cooled off in 2022, the ROI per hour for my time, sitting in the chair trading, was very high. My daily averages were high, my average winners were high, my accuracy was about the same as it is now but just the average winners were so much bigger,” says the Warrior Trading founder.

“So that was a time where the opportunity cost of, for instance, bringing my son on a camping trip and taking a whole week off might have been $50,000 or $75,000. It was significant enough that I was thinking it could change his life more if I can make this money now while the window is open and be as efficient as I can and capture a profit.”

But when the market is slow, Cameron sees an interesting paradox.

“There is sometimes a belief that once I hit my daily goal, I should just walk away. So if I hit my daily goal in three minutes, I should walk away because if I walk away when I’ve hit it, then I don’t risk losing it and giving it back,” says Cameron. “And then on the flip side, in a cold market, I can’t leave the computer until I’ve hit my daily goal. And what it effectively ends up meaning is that traders trade for a long time during cold markets that have relatively low hourly ROI because they’re churning away trying to get up to this daily goal.”

For Cameron, there needs to be a balance. But it’s sometimes difficult to find.

“You have to make use that when things slow down — because inevitably they do — you reward yourself for the time you spend digging deep,” says Cameron, admitting it can be a hard balance to find. “Last year, we were in a bear market so I felt I didn’t deserve to take a vacation because I hadn’t had a good enough year. But in fact, the ROI on my time was very low. This can be a time where it really makes more sense just to do an hour or so of trading and then recharge my batteries.”

What’s the secret formula for life and trading? Warrior Trading’s Ross Cameron says it’s knowing how much is enough, staying consistent, and understanding the return on your investment when it comes to your time management.

Disclosure: This is sponsored content. The sponsorship may include but is not limited to, payment for article placement to the publication, compensation to the writer for their time, or other arrangements.

Disclaimer:

The content of this article is for informational and educational purposes only and should not be construed as financial advice or as a guarantee of success in day trading or any other form of investment.

Day trading involves substantial risks, including the potential for significant losses. Results can vary greatly, and past performance is not indicative of future outcomes. Readers are encouraged to conduct their own research and to consult with a qualified financial professional before making any investment decisions.

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