Introduction
In the high-stakes world of price action trading, few traders blend discipline and strategy like Nick Kasnett. A veteran of the military turned full-time trader, Nick made over $100,000 in his first year of trading—starting with just $5,000. His journey wasn’t linear, but his transformation from an early success to enduring losses and mastering his mindset offers powerful lessons for every aspiring trader. In this exclusive QnA, pulled directly from his podcast interview, Nick shares how his military background, psychological edge, and commitment to technical precision fueled his success.
Trader QnA Section
When did you start trading, and what got you interested in the markets?
I first started when I got out of the military, which was in 2013. I was working in finance while I was in college—I got hired by Merrill Lynch on the financial advising side. But I quickly realized it wasn’t for me. I was much more focused on the portfolios and what clients were invested in. I’ve been interested in the stock market from a very early age, but I was in a field that didn’t focus on it directly.
How did you get into actual trading?
After a few life circumstances, I was led to discover Tim Sykes around 2015. A friend recommended him because he knew how passionate I was about markets. I joined his room and he gave me the basics of market function. But after about a year and a half, I realized I needed a community that better served my needs. That’s when I found Investors Underground in 2016—and that’s where my career really started to take off.
You mentioned early success. Can you share an example?
I started with $5,000 and grew it to multiples of a hundred thousand within my first year of trading. That success made me think I had this figured out—like, ‘This is easy.’ But my second year wasn’t as fortunate. I took losses I had no business taking, mainly due to lack of experience, mirroring other traders, and not finding my own niche.
What changed after joining Investors Underground?
I immediately connected with Nate Michaud, the leader of Investors Underground. We had very similar trading styles—especially a short bias—and I was already thinking the same way. After about a year and a half in the room, he reached out and asked if I wanted to be a moderator. It was perfect because I love teaching, mentoring, and explaining my thought process.
How did your military experience influence your trading?
I served as a sharpshooter and sniper. In sniper school, if you miss repetitively, you’re out—you don’t get second chances. I tie that into trading: you have one shot. Where are you going to hit the target? I get a certain number of shots. If I miss, I’m on to the next. That discipline, selectiveness, and calm under pressure transferred directly into my trading.
What’s your trading strategy?
I’m very much price action based. I’m more short-biased than anything else, which I’m actively working to balance because adaptability is key. The market’s always changing—if you don’t adapt, you die. I’ve learned to take longs based on pure price action even if I initially thought it was a short. A big issue for new traders is sticking to a thesis when price action goes against them. That leads to holding losing trades overnight or adding to losers—which is one of the worst things you can do.
What advice do you have about using hard stops?
For anyone learning this game: use hard stops. Don’t even play with mental stops. After years in the market, when you understand how stocks move and key levels, you can widen your range. But algorithms outperform humans because there’s zero emotional attachment—they get out when they’re wrong. So many people with mental stops move them—10 cents, a dollar—just not adhering to their rules. That’s a slippery slope. Hard stops keep you safe, in check, and give you a foundation to build on.
How difficult was it to accept losses?
There’s a difference: you can have a good setup and take a good trade, but the market goes against you. That’s part of the business. You can’t beat yourself up. You took the shot, it was a good shot—it didn’t work. That doesn’t mean you traded poorly. I only feel losses when I traded poorly—when I got in my own way. That’s when it hurts.
Can you share an example of a costly mistake?
A classic one: adding to a losing position and swinging it overnight. You develop a bias—’This doesn’t make sense; it’ll come back down.’ But you’re not even trying to make money anymore—you’re just trying to break even. That’s dangerous. For me, if you’re wrong, you’re wrong. There are so many opportunities every day. The most important thing to me is buying power—cash is a position. If you don’t have buying power, you’re overleveraged and missing opportunities.
Do you trade every day?
No, I don’t. You don’t need to. Overtrading is a big problem—sitting there thinking it’s a money machine and trying to turn $10K into $20K. Most people end up giving back profits. Not everyone can trade all day and make money. There are plenty of people who make $5,000 in a few hours. Compounded over a month, that’s a year’s salary. Greed takes over, but mastering your emotions is key.
Did the military really teach you discipline, or was it the market?
Honestly? The stock market taught me more discipline than the military. Basic training ingrained discipline, but trading showed me that if I don’t stay disciplined, it affects my life in a terrible way. If you think you’re disciplined, try trading—it shows you real quick how much you don’t have.
What do you wish you knew earlier?
I needed to go through what I went through. But I’d say: treat your first four years of trading like grad school tuition. People spend $200,000 on a degree with no immediate payoff. If you’re consistent for four years and use hard stops, you can lower the tuition. By year four, you should be able to pay it off.
Can you describe going through ‘the ringer’?
I used to short small caps—low-float, Chinese names, Israeli names—stuff I’d never touch now. One day, I was up several thousand, short 20,000 shares with what I thought was good padding. I didn’t think it’d gap up. I wake up—the stock is trading at $70. It opened from $10 to $70 overnight. No warning. That’s when I realized: no matter how disciplined you are, risk can’t always be controlled—especially with foreign companies that pump stocks. I avoid them now. That loss taught me an invaluable lesson. It stung. It put me out of the game for a bit. But if I’d been short 100,000 or 200,000 shares? I’d be owing my broker. I’m glad it happened when it did.
Key Trading Insights from Nick Kasnett
Nick Kasnett’s rise from $5,000 to over $100,000 in his first year wasn’t magic—it was a mix of early momentum, harsh lessons, and deep self-awareness. His journey reflects a truth many traders ignore: real success comes not from winning every trade, but from surviving and evolving through losses.
- Start with a small account and prioritize consistency over home runs.
- Join a community that aligns with your trading style—Investors Underground was pivotal for Nick.
- Discipline is learned through pain—financial losses teach deeper lessons than any book.
- Use hard stops religiously, especially as a beginner.
- Cash is a position—preserving buying power is more important than chasing every move.
- Adaptability beats ideology—market conditions change, and so should your strategy.
Nick Kasnett Strategy
Nick Kasnett’s trading methodology is rooted in precision and adaptability. While he began as a short-biased, high-conviction trader, years of experience taught him the value of flexibility. Below are the core strategies he’s mastered.
Price Action-Based Entries
Nick relies heavily on clean price action, especially at key levels. He watches how stocks interact with prior highs and lows—even from 24 hours ago. If a stock bounces or rejects a level consistently, he treats it as a high-probability entry or exit point. This sniper-like approach ensures he only engages when the setup aligns perfectly.
Short-Biased Bias with Long Flexibility
While naturally inclined to short, Nick evolved to take longs when price action demands it. He warns against rigid theses—new traders often ignore red flags because they’re emotionally invested in a trade idea. His rule: follow the tape, not the ego.
Gradual Position Sizing
Instead of all-in entries, Nick takes a starter position. If the trade moves in his favor, he adds—methodically and only based on technical confirmation. This allows him to manage risk while capitalizing on strength without emotional overcommitment.
Nick Kasnett Tools
Nick’s success is backed by the right tools and communities that reinforce his edge in the market. He emphasizes learning from top mentors and leveraging platforms designed for active traders.
- Investors Underground – primary chat room, watchlists, and mentorship
- Tim Sykes (early learning resource)
- Cobra Trading – preferred broker for fast execution and short locating
- X (formerly Twitter) – @KfirCapital for trade ideas
- Instagram – @NKazz2 for personal insights
Common Trading Mistakes to Avoid
Nick’s journey is defined by the mistakes he made—and survived. Here are the pitfalls he warns against.
- Adding to losing positions out of ego or denial
- Swinging losing day trades overnight hoping to break even
- Overtrading just because you’re at the computer
- Ignoring hard stops and moving mental stops
- Chasing volatile small-cap stocks, especially foreign ones with pump risks
- Developing rigid trading theses and refusing to adapt
Conclusion
Nick Kasnett’s story is not about instant riches—it’s about resilience, discipline, and the relentless pursuit of self-mastery. From a $5,000 account to over $100,000 in profits, his journey proves that success in price action trading is earned through experience, not luck. Whether you’re just starting or rebuilding after a loss, his advice on hard stops, adaptability, and emotional control can change your trajectory. Follow him on X @KfirCapital and in Investors Underground to see his strategies in action. Have a takeaway from this post? Drop it in the comments below—we’d love to hear how you’ll apply Nick’s lessons.