5 Lessons from Master Trader Jack Kellogg

You know about Jack Kellogg’s success.

He used the $10K he managed to save as a valet to invest.

He turned that into over $20 million.

But what many people don’t know (or forget) is just how hard Jack worked to get where he is.

And he’s STILL working hard to become an even better trader.

Source: Millionaire Media

This might sound odd if you don’t know all the ins and outs.

Jack is up roughly $700,000 this year (his estimate), but he’s taking some time away from trading.

If you’re an experienced trader, you might know why.

But if you’re new to this game, you might wonder…

“Why take time off if you’re up so much?”

Let’s dig right in…

What Was Your Biggest Loss This Year? How Did It Feel?

Jack: My biggest loss this year is silver for sure. I went from being up over $500,000 to in the red almost a million dollars on silver.

That felt terrible because it didn’t make sense to me. I hadn’t seen these kinds of supernovas before.

Then, unfortunately, it gapped down and cracked massively and I missed the trade.

Silver was down 35%+ in one day and I didn’t make $1 shorting it.

My take: You cannot outrun your risk management. I see some people saying, “Who cares what the risk is if you make money?”

You have to care, because on any play, especially when you’re betting big, it’s a very slippery slope.

What Do You Think About Fake Out Breakouts, Especially With Biotechs?

Jack: Biotechs have always been super choppy. I might be overall red on biotech throughout my entire trading career.

A lot of these biotechs, you can’t trade the price action that well. It’s more in the fundamentals.

So, if you’re a great fundamental analyst and you know what these companies’ agenda is, you’re able to trade with that agenda.

But in terms of buying breakouts, price action, using VWAP, support and resistance, volume…

These things are just choppy.

My Take: Specifically with biotech, you get these nasty candles. It looks like it’s breaking out, and that is the beginning of the end because these companies need cash.

So, any strength is sold into.

What’s Your Best Advice for a First-Time Trader?

Jack: As a beginner, you should try to soak everything up and learn as much as you can.

It’s going to save you money rather than wasting money donating to the market.

If you invest in yourself and in education, it’s going to pay dividends in the future.

My Take: Remember, you have to grow your knowledge account before you grow your trading account.

How Important Is It To Take A Step Back And Not Trade Sometimes?

Jack: No matter how good you are at trading, the market will always humble you. Or the market will change. Or you’ll go through some type of rough period.

I don’t know anyone who’s just breezing every single day.

Everybody needs to adapt and do stuff differently. A lot of people think that once they gain success, they’re never going to lose. That’s not the truth.

I’m having a choppy six months and I have to make adjustments.

My Take: Jack has made $25 million, but every now and then he has to step back (and every now and then I have to take a step back).

So, no matter where you are in your journey, don’t feel bad if you have to take a step back.

It’s far worse NOT to take a step back and think you have to size in.

Finally, I asked Jack to share his perspective on comparing yourself to others…

What Do You Think Of People Comparing Themselves To Twitter Traders?

Jack: It’s very hard to compare yourself to Twitter traders or people who aren’t showing their full track record.

A lot of these people hide their biggest losses. Or they hide their trades.

If someone says they never go through a bad period, they’re probably lying. You cannot learn from people who aren’t sharing.

My Take: Jack is one of the most successful traders in the world. He sees what’s good and what’s bad. He has perspective.

A lot of people think that traders on Twitter are making so much money that it’s easy. They feel like they’re doing something wrong if they’re not making money.