What this Blog is?
Again I never decided to become a Trader. I simply just never stopped learning. In December of 2018, the idea of a blog came to mind, and I took action. I did not hesitate. Something inside me told me that I should create a Blog tracking my Process en route to becoming an Elite Trader. This Blog is just that. I write about Stock and provide Video Recaps. The main mission is to track everything along my Trading Process with the goal of you learning something along the way. Understand that what works for me, may not work for you. Therefore I highly encourage you, in the beginning, to be like a sponge, then focus your area towards a specific Niche. Transparency is the Goal. I am not a Master of the Markets.Nor am I your Guru. I am a Student of the Markets. I provide Weekly updates in my Trading Process. Along with Trade Recaps, Daily Recaps, and much more. I am not a professional I am just an ordinary guy obsessed with Stocks.
What this Blog is NOT?
I want to make my point clear. I know that there a lot of Websites that proclaim they have an instant strategy that can make you the next top Trader. If you are looking for a consistent and learnable strategy I highly encourage you to look elsewhere. I am not a Guru. If you want to learn from an individual who has a Consistent Track Record I highly encourage you to look elsewhere. I will be fully Transparent. I have not reached a state of consistency. The purpose of this Blog is to catalog my Process Towards the state of Consistency!
Why the Blog?
The Blog came to mind when I was laying in my bed one night. I was just reflecting on what could I do better to prepare myself for the future. I always loved to write, but I was always afraid to show my writing to others. I was letting FEAR make the Decision. Once you become fearless life becomes limitless. I know that there will be doubters out there, but writing about my Obsession makes me fulfilled. The main mission of the Blog is to share my Trading Process along the way towards Financial Freedom. This Blog is not just about stock, it's about Life In general. I want to have an impact on others. Yes, the main focus is on the Stock Market, but I'm not a GURU, so I can talk about whatever I want. My main Objective on every post Transparency! If you want to learn from a Master of the Markets, I am not the guy. I am a Student of the Markets. Being Transparent is not a fan favorite in this industry. but I am not afraid to share the truth. If you want to learn from those who have a solid track record, I would highly encourage you to look elsewhere. I am just a 20 year old, Obsessed with the Markets. Yes, I do hope you can take something away from my Blog or Video Lessons, to help you in some manner. The main reason why I make Blog Post and Video Lessons are because of it all repetition. When you teach something, you get to learn it Twice. Believe me, you think I do all these posts for Fun? NO, I am just bored and obsessed. I know that no one reads my blog post. and there is a reason for that. I have no Track Record. The only way we judge our success in the Markets is how much money we make, and I fully understand that. Once more I never got into this game for the Monetary Value. Yes, Money is nice, I am not going to tell you I don't trade for the money. I would be lying. Money is the sole objective or in other words the OUTCOME that every trader wants. 90% see the Outcome and the 10% who succeed focus on the PROCESS. When I wan introduced to this game, there was no turning back. Enjoy the Blog and Good Luck with your Trading!
Again I am not a Guru. I am not a Master of the Markets. The main mission is to provide content that will help my readers from the lessons along my Trading Process. What works for me, may not work for you. Don’t play follow the leader mentality. Learn from my successes, but most importantly my failures. Yes, failure is what gives success its flavor in the end. Secondly, within the content of this blog, I will be as Transparent to my Readers. Transparency is key, to create an environment that you can learn in. Video Lessons along with Blog post are intended to help my Readers in some Manner. If you want to learn a consistent strategy I highly encourage you to look elsewhere.
I always had a curiosity for the Stock Market. Since I was a Freshman in High School. I could remember my Teacher every day made us keep track of the major Indices. It would only take until my Freshman year of College of when I took it as a part-time "Hobby." Note I would later realize that It's, not a Hobby it's a Business. Like most, I started out I gravitated towards the Blue Chip stocks. At the time the only concept I understood was the common theme "buy low, sell high", I did not know that Shorting even existed. During this time, I was still a full-time student on top of being an Athlete. I still remember it my routine. Every morning and evening I would see how the Overall Markets were moving. Again this was the Fall of 2017 going into Spring of 2018. At the time I considered myself more of an Investor. I had no idea what Trading or being a Trader was. I was not doing my due diligence in my Freshman year of college , because I treated the Stock Market as a "Hobby." Fast forward to the Summer of 2018, which is when I found what Volatility meant. Tim Sykes is the first individual whom I stumbled upon, and I still remember to this day. I discovered Tim through YouTube. Once I watched the first Video from him, I was immediately hooked. It's hard to put it into Words, but I knew this was meant for me. From July 2018 to January 2019 everyday I was like a Sponge. I was absorbing all the information I could about Day Trading. During this time I did not return to College, so I took 6 months to focus on my Obsession. Believe me, my family thought I was crazy, they still do. There were countless nights that I would be up past midnight studying and wake up in time for Market Open the next. The Idea that 90% fail and 10% succeed always stood with me. I knew that I had to increase my Odds of Success in the long run. Understand that this is, not a direct cause and effect, just because I studied did not mean I would become a consistent profitable Trader. It increased my Odds. To this day, I still consider myself a Student of the Markets. Every day shows a mere reflection of our level of development as an Individual. I want to remain Open Minded and not let my Ego get the best of me. In Summary, I never decided to become a Trader, I simply never stopped learning. I firmly believe that trading is if not the best business in the World. Trading is the only profession in the world where there is a level playing field. Anyone can do it, all you need is Grit and Persistency. I firmly believe that the vast majority of individuals come into this for the wrong ideas. 90% of focused on the Outcome, while the 10% lean towards focusing on the process. Yes, Trading offers what most if not all of us have been denied in our entire lives. Freedom of Expression! For the first time in your life, you're the Boss, you're in complete control. It's a gift and a curse. The gift is for the first time in your life your in complete control, and the curse is you must take full responsibility and accountability forever decision that you make. If there is anything I want you to know is that I never thought about Trading as a get rich quick scheme. I knew that lasting success takes time. Focus on the Process and the outcome will come naturally. Week 71 and I am still focused on the Process every day. I will always remember why I got into Trading.
My Track Record can be found HERE. Once more being Transparent is the theme. As of writing this, I have no Track Record. I have no state of consistency. This Blog is intended to share my Process along my path towards becoming a consistently profitable Trader. This Blog is NOT intended to share a strategy that you can trade with. Once more I am not a Guru or a Master of the Markets. I am a Student.Money isn't everything, but its the only thing people keep track of.
My Trading Process
Note what below is what works for me. Everyone has their own unique personality. Don't play follow the leader mentality. What works for me, may not work for you. It's not an exact science. I look to update this section as I evolve as a Trader. I must adapt in pursuit of success.
Before entering the Trade
1) Start with Why: Before going into a Trade ask yourself what's the reasoning. Why do I want to take this Trade? If your answer is, because you want to make Money then you will be fighting an uphill battle. Those who are fixated with placing a Trade for the Monetary value are Focused on the Outcome. On the contrary, you should be focusing your attention on the Process to get towards the Outcome. If you can't answer your reasoning for taking the Trade, then I highly encourage you to pass on that trade. Fear of Missing out is the main psychological hurdle that impacts a lot of Traders. Still to this Day I am a victim. Understand, just because your a "Trader" does not mean you have to trade every single day. Trading randomly will only lead to random results.
2) What's the Worst Case Scenario: In my opinion, the only goal for a Trader is to stay in the GAME. The common saying goes "one trade won't make you, but one can break you." Risk Management is my main emphasis. Before going into the trade ask your self what's the worse case if this goes against my Thesis. When is the best time to plan an Exit of a Trade? Right before you get and, right when you enter. When I walk into a building, the first thing is that I look for is the Exit. Don't bet all your chips at once, going for home runs is not the right mentality.
3) Risk Management: Does the Trade present ideal Risk to Reward? Does the trade present enough volatility. If you’re going Long, Ideally you want potential range towards the upside. While for Shorting you want range towards the downside. Once more the only goal is the Stay in the Game. I never recommend going all in, don’t bet all your chips. As Larry Hite once said “If you don’t bet, you can’t win. If you lose all your chips, you can’t bet.”
4) Position Size: Determining the size of your trade a vital component before placing the trade. In my opinion, position sizing is highly overlooked by most Traders. They let FOMO put on the trade, by just placing wish orders. Again are you going to treat this like a Business or Hobby? The choice is yours. The size of your position affects everything, the psychological components as well the risk management of the Trade. So how do I determine my position size? There are 2 main components in my Trading Process to determine the size. These 2 components will be different for every trader. We all have different risk thresholds, along with different account sizes. First I ask myself how much am Dollar value am I willing to lose if the ODDS go against me. This is going to be a specific Dollar Value. Second, based on the chart where is my mental stop loss would be. For example, if am looking to go Long XYZ @ 2.45 and I place my mental stop loss @ 2.30. That would be a .15 cent risk. With that example, let’s say I am willing to lose $200 on this Trade. My position size would be 1,333 Shares. Let’s do an example of the Short Side. If I am looking to Short XYZ at 5.75 and I placed my mental stop loss @ 5.60. With $200 at risk and .15 Cent gap that would be 1,333 Shares. This is my Trading Process. I know that you have commonly heard the 2% Rule. Meaning that you can only bet 2% of your trading account on any given trade. I am not saying that it is not applicable to Trading, because it is. I just take another route. Another note, using this method Ideally you must have enough funds in order to take the Trade. For Instance, going Long 1,333 Shares @ 2.45 translates to roughly $3,270 of Market value. Going long you need enough Buying Power to execute the Trade. While Shorting you can use Margin. As well most brokerages offer leverage. Once more I am not a Master, but I would be wary Trading with Leverage.
2 Major Beliefs that I Live By.
These two beliefs I picked up from Blair Hull, who was on Chat with Traders. I highly encourage to give in a listen.
1. Have a Competitive Advantage over your Competitor: Once more the common saying is that 90-95% of Traders don't find a state of consistency within the Markets. What are you going to do to separate yourself from that large category? What's your advantage over the 90%. I have not mastered the Markets, every day shows a mere reflection of our level of development. Every day I look to build upon my Edge. Everyone has their own unique Edge. What works for me, may not work for you.
2. Outlast your Competitor: Risk Management is paramount in my Trading Process. You must have a positive expectancy in your Trading System. Once more your goal everyday trading day is to stay in the game. I know that it's though seeing all the other Traders post their Profits, but once more we all start somewhere. Learn to filter out the noise, doing so will help you in the long run. Don't try to go for home runs, take it one trade at a time. Slow and steady wins the race. Another note is that many give up before they reach their full potential. Don't fall into at category, a winner never quits.
Focus on Risk Management, then focus on Trading. Stay in the game.
I sound like a broken record, but Risk Management is a vital part of my Trading Process. I firmly believe that risk management is highly underutilized. I am not a Master, I have not mastered the risk management aspect of Trading. I understand that it's a vital concept understand in order to create a state of consistency within the Markets. When you first starting out as a Trader you may not have a System, so my advice would do stay in the game until you find it. Just like going to a casino, when you lose all you money. Go home, come back when you have more money. Same with trading, when you lose all your money, go home. Therefore I would recommend starting out small and growing your account organically. Take it one trade at a time. Only bet what you are willing to lose. Everyone will have different risk thresholds. Before going into every trade, I ask myself how much am I willing to lose if it goes against my thesis. sound like a broken record, but Risk Management is a vital part of my Trading Process. I firmly believe that risk management is highly underutilized. I am not a Master, I have not mastered the risk management aspect of Trading. I understand that it's a vital concept understand in order to create a state of consistency within the Markets. When you first starting out as a Trader you may not have a System, so my advice would do stay in the game until you find it. Just like going to a casino, when you lose all you money. Go home, come back when you have more money. Same with trading, when you lose all your money, go home. Therefore I would recommend starting out small and growing your account organically. Take it one trade at a time. Only bet what you are willing to lose. Everyone will have different risk thresholds. Before going into every trade, I ask myself how much am I willing to lose if it goes against my thesis.
Find your Niche as a Trader, or in short, find your personality.
Jack Schwager said it best, "Aspiring traders need to understand that the quest is no a matter of finding that one approach that unlocks the secrets of market success, but rather finding an approach that fits their personality." Don't have a follow the leader mentality. Learn from other Traders, in order to build upon your methodology. At the beginning that is the best time to absorb all the information that you can. Build a strong core for your trading career. As you develop as a Trader you will find out thought success and failures where you stand.
Think in terms of Odds and Probabilities.
Trading is NOT about being right or wrong. It's not called Predicting, It's called Trading. Avoid feeding your EGO. Most traders avoid taking small paper cut loses, simply because they want to avoid being wrong. Stop trying to be perfect, forget what others think about you. It's your process, not there! Practice makes progress.
Never play follow the leader mentality.
Since I first began trading this is one concept that I have ingrained in my trading process. Being apart of various chat-rooms I understand the temptation. Avoid the FOMO. Use networking with other traders in order to learn from their success and most importantly their failures. Attempting to follow alerts will not create a state of consistency that you are striving for. Simply the markets move to quickly in order to play follow the leader. Yes, there are chat-rooms out there that their sole purpose is to "get the stock up" and then "sell-out", but those will not benefit you. Again ask yourself do you want to be apart of the 90% or the 10% club. Are you going to treat this as a hobby or a business?
Track Everything, and Refine Overtime.
Grant Cardone said it best "Be obsessed or be Average,It's your choice." As Tim Sykes commonly says you must think of yourself as a Scientist. The Stock Market to me is like a puzzle, which I am trying to solve. I know that the puzzle is unsolvable, and that is what fuels me. What are you doing outside Market hours? In my opinion Screen Time isn't enough, you have to do what the 90% are unwilling to do. Do your due diligence, once more are you going to treat this as a hobby or a business? There is no secret formula for how to track your statistics, everyone has a unique personality.
Always define the Risk before entering the trade. Admit Accountability.
This one again ties into Risk Management. The best time to plan an exit of trade is right before you get in. COMMON SENSE Right, but common sense is often not common practice. Why is this? The best traders consistently predefined their risk before entering a trade. Only the best traders cut their losses without reservation or hesitation when the market tells them the trade isn’t working. And only the best traders have an organized, systematic, money management regimen for taking profits when the market goes in the direction of their trade.” The typical trader won’t predefined risk of getting into a trade because he doesn’t believe it’s necessary.” Don’t believe that you know what will happen next.” If you don’t set risk, you're assuming you know the outcome. You may know the outcome of the pattern, but not YOUR TRADE. Predefined the risk of every trade is hard for most because that assumes that the Trade might not go the way. They can't afford to be Wrong. Again Never Trade with that Mindset. It's not about being right or wrong. It's not called predicting its called Trading.
Adding to losers is wrong, but typically done. Why? Ego.
Adding to losers is WRONG but typically done. This one ties into EGO and the Idea of Wanting to be Right. Admit when your wrong. When your Adding to losing position your Thesis is busted. Get the Hell out! Yes in some situations you can manage to add to a looser and manage to come away with a profit. More Often than not in the long run that will not help you. It only takes one trade to WIPE you out. Remember that your job as a Trader is to Stay in the GAME. Admit defeat. Lose the Battle to Win the War. It’s far easier to get in a stock than it is to get out. There will always be another trade, but you have to stick around in order to trade them.
Two quotes that I've ingrained in my Trading process.
"If you have a losing position that is making you uncomfortable, the solution is very simple. get out, because you can always get back in. There is nothing better than a fresh start." Paul Tudor Jones
"The elements of good trading are: cutting losses, cutting losses,cutting losses. If you can follow these three rules you may have a chance." Ed Seykota
Don't Get Greedy. Pay yourself as the market makes money available to you.
Enter the Answer to your Question here. Be thoughtful with your answer, write clearly, and consider adding examples. This can help your visitors get the help they need quickly and easily.
Let Winners Ride, cut your losses.
Again your job is to stay in the game.
Don't bet all your chips on one single trade, don't risk potential disaster.
In short one trade won't make you, but one trade can break you.
Don't Revenge Trade!
This one is a major problem for most. Revenge trading will often lead to a major disaster for small accounts. The typical trader who loses money on the given trade will often feel sad or mad. This lead to the trader feeling like the Market harmed them and feels like the Market was to Blame, the Trader feels like the Market owes the trader. WRONG. The Market does owe you a damn thing. I always here in chat-rooms. My Broker won't let me trade this ...I could not get executed...Look Any degree of blaming means you have not accepted the reality that the markets owes you nothing, regardless of what you want or think or how much effort you put into your trading. Take full responsibility. Admit that you're wrong. Forget your EGO. Again emotions copulated with unlimited possibilities create an environment that many of us are not able to handle. Don't let emotions change your risk Management. You will be forcing trades that are only acted out based on your last loss. Learn to Transition into the NOW MOMENT. Focus on the NOW of Trading. NOT the PAST. The absolute moment of Trading. Price Creation.
Understand that Loosing is an Essential part of this Game.
Again losing is a vital part of a trader. How you deal with a loss is key. Are you going to let a loss carry over to the next trade, or are you going to be in the Now Moment? Again a Loss is never a loss unless you learn something from that loss. Take a lesson from that loss and move on. It’s just a dam trade. Again I tell myself that I am really great at losing. I lose well. I know what I will lose when I trade. Cut loose quickly and set a predefined risk and you will be fine. If you try to avoid taking a loss, you are going to be fighting an uphill battle. The key is to minimize the losses and maximizing your winners. That is how you survive in this game, slow and steady wins the race. Be able to outlast your competitor in Trading.
Quotes from Market Wizards
"Learn to take a loss. The most important thing is making money is not letting your losses get out of hand." Marty Schwartz
"Because they would rather lose money than admit they're wrong. What is the ultimate rationalization of a trader is a losing position? I'll get out when I'm break even. Why is getting out even so important? Because it protects the ego. I became a winning trader when I was able to say, To hell with my ego, making money is more important." Marty Schwartz
"I handle losing streaks by trimming down my activity. I just wait it out. Trying to trade during a losing streak is emotionally devastating. Trying to play "catch up" is lethal. Ed Seykota
Be in the Now Moment.
"The best traders are in the “ now moment” because there’s no stress. There’s no stress because there’s nothing at risk other than the amount of money they are willing to spend on a trade. They are not trying to be right or trying to avoid being wrong; neither are they trying to prove anything. If the market tells them that their edges aren't working or that it's time to take profits, their minds do nothing to block this information. They Completely Accept what the market is offering them, and they wait for the next edge.” Learning how to train the mind to stay properly focused on the “now moment opportunity flow” is a lifelong process. But with Perseverance and Consistency, it can be achieved. The best Traders are in the “Now Moment”; they don’t let previous trades interfere with the current one. They Completely accept what the market is offering them, and they wait for the next edge. These are gifts from the markets. This one is a very hard concept for many to understand. Being in the Now Moment means that there is nothing interfering with the current trade. FORGET the PAST. FOCUS on the NOW MOMENT. For Instance, many traders carry over a loss to the next trade. WHY! It’s just a fucking loss. That trade is in the past, let it go. FOCUS on the NOW MOMENT of TRADING. Focus on absolute price creation. Watch this video of John Rambo from Chat with Traders to get the full picture.
Put the stock into Context. Why...How...What?
1) Focus on Big % Gainers: This one should the obvious one! I know too many people that focus on non-volatile stocks! And it blows my fuck-en mind. Understand that you need Volatile stocks, yes they are riskier than your higher blue-chip stocks, but again the higher the risk, the greater rewards. Understand that trying to grow small accounts with Blue Chip stocks is going to be more difficult. Focus on the Big % Gainers. And no excuses, People always say I don't have access to the Big % Gainers. That's Bullshit! It's called fuck-en Internet! Yes, having platforms like StockstoTrade or Equity Feed gives you an edge over others, but it comes at a cost. Again ask yourselves, are you going to treat this like a Business or a Hobby! 90-95% of traders try to be coupon clippers. Fuck that! It's all Market Tuition! If you are cheap and don't have anything, there is still plenty of sites that give you the big Percent Gainers. Such and Yahoo Finance, or Finviz.
2) Focus on Tickers that find your Niche as a Trader: Once you find the Big % gains, understand that you don't have to trade all of them. I'm not saying you can't, but in my opinion, prefer to select the one with the highest odds. Again Trading is a unique industry, cause what works for me may NOT work for you! It's not a direct cause and effect. Don't play follow the leader mentality! Focus on you. I know that in every beginning you may not know what your set-ups are, but that is why I an advocate for paper trading. Test and refine overtime in pretty of success.
3) Put the stock into the Overall context: When I see a stock that interests me, I take the overall context. Why How What. I want to get the overall sentiment of the stock. Again I focus on the TICKER NOT THE COMPANY. Nate said it best "Trade the Ticker". I am not saying to ignore the fundamentals, because that does matter, but again PRICES MOVE BEFORE FUNDAMENTALS...PRICE ACTION IS KING. Firstly I look at the Chart, Look left to predict the right as Nate would say. At least I go back 1 year, the main thing I am asking myself is "Has this Stock ran in the Past." You must always respect former runners, they can always run again, it's in their DNA. As well as volume and how the Trend has been up to the time looking at it. The chart is not everything but is a major factor, it's Pattern Recognition. Secondly, I ask Why is this stock up? Again I don't primarily focus on the news, but it's still apart of my process. Ideally what interests me are Partnerships, Earnings, Hype Plays, and Bio-Techs. Again I am not going to go over each of these, cause I can do a whole post later. Thirdly I since we trade the most volatile stocks, I check the FLOAT. The total number of shares that can be freely traded at the Market. Again the Float is never going to be exact, but you can get an idea. How do I find the Float? Look in the OTC Filings! Keep it simple guys and gals! I go back to the recent 10-Q / 10-K and use CTL+F and type the phrase "outstanding." You should be able to see it pretty quickly. On some occasions, I may use a 424B form since that is where the Offering Price and Diluted properties can be found. The FLOAT is a Major Factor for us Traders. Think in terms of supply and demand. When there is a low supply with an excess demand what do you think will happen! Look at $SES $BIMI $BNGO $OPTT $BPTH $DRY $SHIPS $IGC $NBEV $WWR $TOPS the list goes on and on. I categorize a low float stock that is under 10 Million, but again it's not an exact science. Next, I check out the Filings for any skeletons in the closet. Understand that we are trading the worst of the worst. What I am looking for? Ideally, I am looking for any potential Dilution. The same process as with the Float, I use the Command Key and search for key Phrases. For example, Offering, dilution, warrants, ATM ~ at-the-market, Unregistered Sales of Equity and Use of Proceeds. I typically go back for their recent 10-Q / 10-K. As well I am looking for any 424B Forms or an S-1. The S-1 is a shelf, if a prospectus, it's not live until the 424B if filled. Again this process may seem like it takes a while, but rinse and repeat and it becomes second nature. I don't spend too much digging since the more I investigate the more likely I will add to my confirmation basis. Ideally 10 min Max. A quick note, be very cautious is you attempt to Long a stock, that has a history of conducting Toxic financing in the past. Just like you, These "Companies" goal is to stay in the game, by any means necessary. So I do encourage you to just check you the flings if you do intend to Swing a Long overnight. Lastly, the most important indicator that I use is the PRICE ACTION! At the end of the day, the only thing that matters is the fucking Price Action! What does the daily trend look like? What day of the week is it? What's the volume? Price Action is KING!
4) Always Know the WHY: Again we all know what we do, but most do not know WHY. Trading Randomly will only lead to Random results. It all goes back to finding your niche as a Trader. If you ever feel uncomfortable in stock, I would encourage you to simply exit. It's much easier to get back in that it's it to get out. Fuck your EGO! Avoid any rationalization.
5) You don't have to Trade every day: This one is very underutilized. Look I don't look to Trade every day. I don't wake up expecting to Trade, I have a game plan yes. But again I will only act if those indicators are hit. As well depending on what the Big % reveals. If there is nothing that fits my personality, then I simply do NOT Act. I don't Trade to Stay Busy, trading to Stay busy will cost you money. Again is this a HOBBY or a BUSINESS to you. It sounds counter-intuitive, but trading less can help you in the long run. Trading is reality is Boring, I am like a Lion, I only come out when I see a baby gazelle. Or a Gimme Set-up.