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40 Trading Lessons from 20 Years in the Market (2025 Edition)
By Kunal Desai, Bulls on Wall Street
If you're looking for real trading wisdom that comes from two decades in the trenches—not theory, not fluff—this is it. I've blown up accounts. I've made millions. I've coached over 7,000 traders. These are the 40 lessons that have stuck with me through bull markets, bear markets, and everything in between.
Whether you're stuck, overwhelmed, or just one breakthrough away, this cornerstone guide will meet you where you are. These lessons are organized into 5 key phases every trader goes through:
- Mindset
- Setup
- Execution
- Management
- Mastery
Let’s dive in.
Phase 1: Mindset – The Foundation of a Trader
1. If It Ain’t Tight, It Ain’t Right
Every great breakout—whether it’s Nvidia, Tesla, or SMCI—has one thing in common: tight price action. Your 9 EMA should be curling right under the breakout point. Loose patterns = failed trades.
2. Don’t Marry Your Stocks, Just Date Them
Stocks don’t love you back. I had a student, Tom, who lost $5 million on UVXY because he was married to a bearish opinion. He ignored price action and held a decaying instrument while the market rallied. We aren’t paid for opinions. I would call this man literally everyday and just tell him to think about what he is doing and everyday it would be the same damn answer! Hey the economy is going to crater I have to hold this through! We’re paid for pattern recognition and timing. Learn how to avoid this mistake here.
3. Cut Losers Fast
Dead money is no money. Opportunity cost kills traders with small accounts. There’s no reason to be in a dead trade when other setups are running.
4. Let Winners Run
Hardest lesson for many. Use higher highs/lows, EMAs, and scaling out to stay in the trade. Train yourself to ride the waves, not bail early. This one was the hardest for me. If you take profits all the time you see these huge winners pass you by. If you hold for the big winner then thats the stock that you had good profits on and gave it back! I like to be dynamic with my sell rules. I use a reasons to sell list that that has 10 different factors that could cause a sell in a stock! If you just use a standard hey if we hit resistnace we sell we will miss so many big runners.
5. Three Taps Are for Winners, Two Taps Are for Losers
Most successful breakouts test resistance at least three times. Two taps usually lead to double tops, not clean breakouts.
6. Trade Stocks in Play
News + technicals = fire. You’ll get bigger moves and more predictable follow-through. A pure trendline without volume or catalyst is weak.
7. Align With Market Stages
Momentum stocks die during bearish cycles. You must adapt. In 2025, we’ve already seen small caps double again once cycles flipped. This post breaks down how to trade small accounts through cycles.
Phase 2: Setup – Your Bread and Butter
8. No Setup, No Trade
This is gospel. If you can’t name the pattern, skip the trade.
9. Respect Risk Before Thinking About Money
The only way to stay in this game for 10+ years is to control risk. Period.
10. Use Hard Stops, Not Mental Ones
Mental stops are a lie you tell yourself. Hard stops remove emotion and allow you to stick to your process.
11. Master Flag and Opening Breakout Setups
Flag patterns and OB setups are clean, repeatable, and easy to define. Read more in our 21 Principles post.
12. Avoid Overtrading
Call out your pattern before entry. Boredom trades destroy accounts. If overtrading is your weakness, read this.
13. Journal Everything
I use TradeZella, but use what works for you. Connect the data to the outcome and track your edge.
14. Understand Risk vs Reward Math
If your stop is $1, you better be aiming for $2–3+. Never take 20 cents profit on a $1 risk. That math doesn’t work.
15. Trade the First Hour
The first hour is where the magic happens. My superpower? Preparation. I wake up, walk the beach, run premarket scans, adjust my list based on gaps, then narrow from 30 names to 6–12. Then I log into TC2000, mark my key levels, get on Zoom with my students, and start attacking the open. This is where I make my money.
Phase 3: Execution – Where Money Is Made
16. Don’t Chase Extended Moves
If the price is too far from the 9 EMA, you’re late. Pullbacks are your entry. Chasing = pain.
17. Know Your Strengths and Weaknesses
Be honest. If you suck at pullbacks, don’t trade them. Master one thing before branching out.
18. Earnings Season = Opportunity
Some of the biggest trades I’ve ever taken came from post-earnings setups. AVGO. Tesla. Palantir. Learn to love earnings season.
19. Let the Chart Tell the Story
News, opinions, social media—ignore it. Follow price. Patterns don’t lie.
20. Protect Your Mental Capital
If a trade stresses you out, you’ll make mistakes. Avoid setups that drain your energy.
21. Review Daily, Weekly, Monthly
Daily = journal. Weekly = P&L and pattern analysis. Monthly = strategy and performance audit.
22. Let Patterns Come to You
Don’t force it. Hot stocks give multiple setups a day. Wait for the clean one.
23. Volume Confirms the Move—But It’s Not the Move
If you buy because of volume, you’re the last man in. Use volume to confirm, not to enter.
Phase 4: Management – Stay Alive, Stay Profitable
24. Pyramid Like a Pro
Only add to winners with new setups. Don’t just pile on. Each add = a new trade.
25. Cash Is a Position
When in doubt, sit out. No setup, no stress.
26. Diversify, But Don’t Dilute
Spread your risk across 2–4 trades. More than that? You’re overexposed and underfocused.
27. Adapt to Market Conditions
In hot markets, you can trade more names. In choppy ones, trade smaller and tighter.
28. Don’t Copy, Learn
Take what works from other traders, but develop your own voice. Great traders don’t follow—they lead.
29. News Moves Markets
Use Benzinga, Tradexchange, Twitter. News and sentiment drive price in the short term.
30. Position Size Intelligently
Size your positions based on both the setup probability and your account risk. Don’t go heavy on B+ setups.
31. Maintain a Daily Prep Routine
I’m not the best trader. But my routine—done every day for 20 years—has kept me in the game.
Phase 5: Mastery – Stay in the Game for Life
32. Respect Overnight Risk
2025 showed us how tariffs, elections, and rate hikes can ruin swing trades. Don’t get smoked holding bags overnight.
33. Focus on Liquid Stocks
Avoid illiquid garbage. Stick to names with 5–10M+ in daily volume. Less slippage, more control.
34. Master Your Emotions
Blowups happen when emotions take over. You’re only as good as your psychology.
35. Backtest and Forward Test
Yes, backtest. But also forward test. 2025 is filled with AI, algos, and freaky price action. Old patterns need new verification.
36. No Home Runs Needed
Stack $500 and $1,000 days. You don’t need the unicorn trade to make it.
37. Continuously Level Up
Mindset, health, psychology—keep improving every quarter. You are the edge.
38. You’re Not Trading Charts—You’re Trading Your Dreams
We all want freedom, revenge vacations, and to prove the haters wrong. But the chart doesn’t care. Keep it technical.
39. Learn From Those Ahead of You
I’ve taught over 7,000 traders. The ones who stuck to the process, reviewed their trades, and managed risk are the ones still here.
40. Invest in Your Growth
Get mentored. Join a community. Don’t go this alone. Trading is too hard to figure out in a vacuum.
Want to Turn These Lessons Into a Profitable Strategy?
✅ My top 3 strategies (ORB, flags, earnings breakouts)
✅ Full risk management training
✅ My personal trade routine
✅ Trade Live Each Day
→ https://bullsonwallstreet.com/live-60-day-bootcamp/
About the Author:
Kunal Desai is the founder of Bulls on Wall Street and one of the most experienced trading mentors in the world. With over two decades of experience and 7,000+ students trained, his mission is simple: teach traders how to build real skills, not hype. You can find him trading live inside his Bootcamp daily.
