Why I Lost Money Trading — And What It Taught Me About Real Investing

Jun 12 / Cayden Chang

Share this article:

In my early 20s, I lost money trading stocks. It was painful, frustrating, and emotionally draining. But in hindsight, it was also one of the most important financial lessons of my life.

I had paid thousands of dollars to learn technical analysis. Like many beginners, I was drawn to Japanese candlesticks, support and resistance lines, and the illusion of predictable patterns. The first night of class, the trainer drew a zigzag pattern and asked, "Buy or sell here?" Most of us chose "buy." We were told we were right. That night, I bought my first stock.

What happened next was textbook emotional investing. I checked the share price every hour. It dipped slightly and I panicked. A week later, it dropped significantly. I went back to class, hoping for answers. The trainer simply said, "Sometimes it happens. It's called a breakout."

Frustrated but still hopeful, I followed the next piece of advice: "Buy more." I did, and the price dropped further. Eventually, I was introduced to the concept of "cut loss." It sounded rational, so I sold. And right after that, the share price went up.

It felt like a cruel joke. But that experience taught me three key lessons:

1. Short-Term Price Movements Are Not Predictable

You may think you see a pattern. You may even act on it. But the truth is, short-term price movements are often random. This insight is supported by Nobel Prize-winning research.

2. Robert Shiller's Nobel-Winning Research Validates This

Professor Robert Shiller of Yale University spent his career studying asset prices. His work revealed that in the short term, stock prices are largely unpredictable. But over the long term (2-3 years), there is logic and a pattern to the movement—driven by fundamentals, not technical patterns.

3. Value Investing Is Based on Logic, Not Hype

Instead of chasing short-term gains, value investing focuses on the true worth of a company. It looks at earnings, cash flow, and long-term potential. And most importantly, it's backed by decades of data and proven results.


So if you're frustrated with inconsistent results from trading, or you've been burned like I was, maybe it's time to consider a different approach. One that makes sense. One that works.

Join Our Free Company Analysis Webinar

If you're curious about how we identify undervalued companies using real data, join our free Company Analysis Webinar. You'll learn:

  • How to read financial statements the way pros do
  • What indicators really matter when evaluating a company
  • How to avoid hype and spot real value
Reserve your free seat here.

Share this article

Spot Value Stocks Now

In this live session, you'll see a step-by-step company analysis demonstrated by Cayden Chang, founder of Value Investing Academy. 

Write your awesome label here.

Presented by Cayden Chang

Founder of Value Investing Academy and Award-Winning International Speaker, Lifelong Learner Award 2008, Personal Brand Award 2017


You will learn:

  • A deep dive into a fast-growth company case study.
  • The key financial metrics used when evaluating whether a stock has strong growth potential
  • Step-by-step guide on how to apply the Value Investing Methodology on real-life companies
  • The exact criteria that successful investors use when evaluating any company
  • How to determine the intrinsic value of a stock so you will know exactly when to enter or exit the market
  • How ViA Atlas Intrinsic Value (IV) Directory can get you started on building your own portfolio of superhero stocks, even for busy professionals without much time to spare.


Click the button below to reserve your spot now.