Out of the Ashes: Flight of the Phoenix


If you experience a Stop Out and see the aftermath in your account, this is how your eyes feel…

Margin call warning!

ZOMG!!! I should have opened a demo account!

Why does my stop loss keep getting hit!

The cartoon with the giant teardrop was from the lesson: What is a Stop Loss?. The look on that girl’s face and that ridiculous teardrop cracked me up. :laughing:

After I drew that cartoon, I went back in my notes and took photos of my favorite cartoons so I can post them here to remind me of what I’ve accomplished and what I’ve learned. If I still make the terrible mistakes from these funny cartoons, I’ll call myself the worst trader alive!

I’ve gotten back into drawing because of these cartoons I copied. I used to draw a lot when I was a kid. My favorite comic book characters to draw were the Teenage Mutant Ninja Turtles. I’m drawing again for fun and to get better at it.

"The saying, ‘Live to trade another day!’ should be the motto of every trader on Newbie Island because the longer you can survive, the more you can learn, gain experience, and increase your chances of success.

This makes the trade management technique of ‘stop losses’ a crucial skill and tool in a trader’s toolbox."

I like thinking of the things I’m learning from babypips as skills I can develop and tools I can have in my trader’s toolbox. I’m looking forward to improving my skill in using stop losses and using the other tools in my trader’s toolbox when I start my demo account around February 2024.

I completed lessons 320 of 361. I have 41 lessons to go before I start demo.


You’re a lot smarter than I am. I didn’t stay in demo long enough, and I suffered for it.

Great job. Keep up the good work!


Keep at it bro!

P.S. - Love the little comics

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haha, you’re learning something that wasn’t taught in the School. At least one perspective anyway.

Yup, super important. Position sizing along with what your stop loss is (or isn’t). Biggest things I learned this year. Add in account size/funds for trading. You need enough cushion in your account down the road to be able to take multiple trades and or a string of losses. Of course, if you’re sticking with 1-2% risk per trade, you should be fine with whatever account balance you have. I started with $30.

Keep up the learning!


Expecting Failure

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"Like anything else in trading, setting stop losses is a science and an art.

Markets are dynamic, volatility is well… volatile, and a rule or condition that works today may not work tomorrow.

If you continually practice the correct way to set stops, record, and review your thought processes and trade outcomes in your journal, then you’ll be one step closer to becoming a professional risk manager!"

I like this definition of traders as professional risk managers. Another word for professional risk manager is gambler. :laughing:

It made me think about how much I’m going to suck at trading for several years before I ever become a pro. I’m expecting to make mistakes and fail a lot before I master the art and science of trading.

I learned how to use stop losses and how to scale in and out of trades, but that doesn’t mean I’ll do it right when I start trading. It’s going to take a lot of steps before I become a professional risk manager. I expect to be a trader that sucks for a long time.

"A friend of mine who is very wealthy said if you never bet your lifestyle, from a trading standpoint, nothing bad will ever happen to you, and if you know what the worst possible outcome is from the outset, you will have tremendous freedom."

"If you treat trading like a game, because that is what it is, then you will find there are a lot of variations in trading, but a good process will work over time and you will get rich if you stick with it."

I got lucky with the random quotes from the lessons this past week. I got two different quotes from Larry Hite that were relevant to the lessons I completed.

I found tremendous freedom in knowing the worst possible outcome for me as a trader. I’m going to suck for several years. I look forward to it. I expect it.

I’m not going to get sad, upset, or miserable about it. Since I’m going to suck for a while, I might as well have fun with trading by treating it as a game.


I love the out-look this provides.

We’ve got a long road ahead of us and a large portion of that will more than likely suck :laughing:

But I have no doubt you plan on forging the path ahead.

Awesome progress dude. Cheers :beers: :beers:

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We might as well have all the fun we can even though it will suck. :partying_face:

Cheers :beers:

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Almost Ready to Lose All My Money

I finished the lessons in Undergraduate Senior. My training is almost complete. Will I become part of the 95% of new traders who end up losing all their money? If I do, I will only have myself to blame for not applying everything I learned.

"The forex market is like a schizophrenic patient suffering from bipolar disorder who constantly eats chocolates, experiences extreme sugar highs, and has volatile mood swings all day long."

This quote from the lesson called Be Careful! Currency Correlations Change! is so funny. It made me laugh out loud and think of this picture.

Say hello to Little Miss Forex Market.

I’ll keep this image in mind when I deal with the volatility of the forex market. Maybe it won’t be that bad if she takes all my money. :sweat_smile:


Why set your expectations so low for yourself?

Be careful about seeking others who have lost, so that you may find comfort in your losses. Sometimes, we laugh about our losses because we are scared to try only to fail again. It would be too invalidating for us.

Discussing losses with others should be constructive, in my opinion. It shouldn’t be about seeking solidarity in bad trading.

Eagles don’t fly with sparrows, and peacocks don’t stroll with chickens.


There is a method to my madness. I’m using this principle: “Avoiding stupidity is easier than seeking brilliance.”

This principle is also called inversion. Inversion is solving a problem by thinking backward instead of thinking forward. It’s based on the wisdom of Charlie Munger who said the following:

“It is remarkable how much long-term advantage people like us have gotten by trying to be consistently not stupid, instead of trying to be very intelligent. There must be some wisdom in the folk saying, ‘It’s the strong swimmers who drown.’”

“All I want to know is where I’m going to die, so I’ll never go there.”

The quotes might not make sense at first, but there’s profound wisdom in them. Inversion is a counterintuitive principle that seems to be not constructive or productive, but it is actually useful and effective.

Check out these articles if you want to learn more about inversion:
Inversion: The Power of Avoiding Stupidity (fs.blog)
Avoiding Stupidity is Easier than Seeking Brilliance (fs.blog)

I love that quote and the rest of the wisdom you shared. Is that an original? You’re a good writer. Have you thought about starting a blog or writing a book? I think you have what it takes to be a successful writer.

I aim to be like the eagle or peacock (seeking brilliance) by starting and focusing on doing everything to not be like the sparrow or chicken (avoiding stupidity).

It’s easier to identify all the stupid mistakes I want to avoid. It’s also fun to laugh at myself so I shame myself to never make those stupid mistakes.


Nope. Sorry.




:fire: All you pimps all over the earth! Rock with this!

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Slowing Down

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I completed two lessons this past week. The 5 Deadly O’s of Trading was one of the longest lessons ever. It took me a few days to read and take notes.

Both lessons were fun and funny. I kept laughing out loud throughout the lessons. It looks like the School of Pipsology is going all out in these lessons for the Graduation section. If you want a good laugh, check out these lessons.

I’m slowing down and taking my time with these lessons. I’ve also been coming up with a detailed plan and strategy for my trading and my life. I’ve never really taken the time to plan out what I want to do and who I want to become. I’m slowing down to make sure I build a solid foundation for my future.

I used to do things on a whim. I did what was exciting to me. When the excitement faded, I went to the new exciting thing. There is a saying in trading: “Plan your trade and trade your plan.” I’m applying that to my life. Plan my life and live my plan.

It took me over two years to get to this point where I have 25 lessons left. I joined Babypips on a whim but stuck around because of what I was learning. One of the most important things I learned by taking the course was to commit myself to something instead of going from one thing to the next.

A lot has changed in me and my life in the past two years because of the knowledge and wisdom I learned from the course and the forums. One thing that won’t change is my commitment to changing myself and my life for the better.

May we all have a blessed and prosperous 2024! :partying_face:


Baby Steps

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I got through 10 lessons this past week.

I like this quote from the lesson Tips for Forex Trading Beginners:

"As a beginner, you’ve taken your first steps towards learning the basics of forex trading.

But it only gets harder from here. Just like learning how to walk, you have to take baby steps, and in between, you will fall, but you get back up and press forward."

I look forward to the journey only getting harder from here. I’ll enjoy every step of the way just like I’ve been enjoying every step I took to finish the School of Pipsology over the past two years.


The only **hard part,**is overcoming our humanness.

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The past week went by fast in the School of Pipsology because the lessons were shorter. I only have two lessons left to go.

I had fun completing the Personality Quizzes.

Quiz: Which Trading Style Is Best For You?
You are a Swing Trader

Quiz: Which Currencies Should You Trade?
You should trade the MAJOR currencies.

Quiz: What Is Your Level Of Trading Experience?
You’re a Total Forex Noob!

Quiz: What Is Your Trading Style? Discretionary? Mechanical? Both?
Mechanical Trader

Quiz: What Kind Of Mechanical System Suits Your Personality?
You should trade a trend following system!

Quiz: What Is Your Attitude Towards Risk?
You are a conscientious person.

Quiz: What Kind Of Stop Suits Your Trading Style?
You should try volatility stops!

I spent time researching about algorithmic developers and quant traders because I learned that I should be a mechanical trader.

I decided not to open a demo account. I want to focus on learning how to code for trading. I also want to learn the math that quant traders use.

I think I’ll get better results in trading if I have these coding and math skills. I want to automate my trading as much as possible while using the math that quants use. Being an algo developer or quant trader is more suitable for my personality.

This question and answer from a quiz is one reason why I want to be a mechanical trader. I have to keep my inner wild child in check. :laughing:

I was looking forward to opening a demo account, but I don’t care about it as much anymore. I’m more interested in having the coding and math skills of an algo developer and quant trader.

I’m excited to finish the School and start learning these skills. I’ll work on Python, C++, Statistics and Probability, and other interesting subjects. :nerd_face:



I didn’t have a beer or 12 after finishing the School of Pipsology last Monday, January 15. :laughing:

I did celebrate by having my own graduation ceremony at home. :partying_face:

I gave myself my diploma:

That’s about a thousand pages of notes I wrote from the School of Pipsology.

I watched the commencement speech by Charlie Munger on YouTube and took notes for fun.

These are the core ideas that helped him to be happy and successful in life:

Get what you want by deserving what you want. Deliver something valuable that people will pay you for. People who have this ethos win money and respect.

There is no love like admiration-based love.

Wisdom acquisition is a moral duty, not something you do just to advance in life. This means lifelong learning. Nothing served him better in life than continuous learning. What got Berkshire through one decade wouldn’t get them through another decade if Warren Buffett wasn’t a learning machine.

Learn the big ideas in many disciplines and apply them. It’s fun and it made Charlie Munger rich. The drawback is that you can know more than experts and it can offend them if you share your knowledge.

Have a multidisciplinary attitude. Cicero said, “a man who doesn’t know what happened before he was born goes through life like a child.” Learn these ideas in such a way that they are a mental lattice in your head, and you can use them every day in your life.

“I wanna know where I’m gonna die so I won’t go there.” Solve problems with inversion. Look for the things that go wrong and avoid them. What will fail in life? Sloth and being unreliable. Avoid sloth and being unreliable.

Avoid extreme ideology of any kind. You can ruin your mind with extreme ideology. “I’m not entitled to give an opinion of any subject unless I can state the arguments against my position better than the people who are supporting the other position.”

Be aware of your own self-serving bias as well as the self-serving bias of others. Don’t overspend income even if you are entitled to do so. Envy, resentment, revenge, self-pity are disastrous. Self-pity is a ridiculous way to behave. Get out of yourself. The tendency to serve yourself is foolish. Allow for the self-serving bias of others. Appeal to their interest and not to reason.

Don’t be in a system with perverse incentives. Avoid perverse associations. Don’t work with someone you don’t admire and don’t like.

Maintain objectivity. Pay special attention to disconfirming evidence for ideas you are attached to. Use mental checklist routines to avoid errors.

Be non-egalitarian. Get the best people to do the most important things and don’t let unqualified people have important roles and responsibilities.

Intense interest in a subject is indispensable to excel in it.

Have a lot of assadoity. Sit on your ass and do it.

This world we live in isn’t the highest form civilization can reach. The highest form is a seamless web of deserved trust, not much procedure just totally reliable people correctly trusting one another.

Go through life anticipating trouble. Life has terrible, unfair blows. Some recover. Some don’t. Every misfortune is an opportunity to behave well and learn something. Use the terrible blow in a constructive way. Ponder the life of this man and his epitaph: “Here lies Epictetus, a slave, maimed in body, the ultimate in poverty, and favored by the Gods.”

Holy moly! It took me two years to get here, but those two years were just the first few baby steps in my journey to become a trader. The battle has barely begun.

I’m grateful to babypips and the community for helping me get on this path of endless learning, improvement, and discovery.

"The most important thing you can invest in as a forex trader is your TIME! Every single trading day is a learning experience and if you stop learning, then you will never become a truly successful trader."




What’s next for you?

PS. I had heard a story about a guy who was a high school dropout. Eventually, he went back to get his GED, then went on to college. It took him 12 years to get his 4-year degree. Again, 12 years to get a 4-year degree. He had all kinds of hurdles.

But eventually he got it. Then he went on to get his masters degree. He explained that he hated school, but he wanted to make changes in his life. In the end he got his doctorate degree.

I just wanted to share this story with you.

Thank you. Thanks for the story and thanks for your journal and others posts in the forum that helped me to stay on track and complete the course.

What’s next is more studying. I’m working on becoming a mechanical trader. I’m fascinated with coding algorithms and EAs to automate my trading. It’s like real life magic where I cast spells with code to make machines do the work.

I’m also learning some of the math quant traders use. I’m trying out the possibility of becoming a quant trader for a hedge fund.

If I like it and get good enough from studying on my own, I might go back to school so I can get a Master’s in Financial Engineering that’s required for working at a hedge fund.

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