Episode 017: JTrader – A Trader’s Path to Overall Success

In this week’s episode of Beyond the PDT, Matt and I had the pleasure of talking to J Trader. He is a very well-seasoned veteran in the trading community and has been trading for nearly 20 years now. With all of this experience, it is clear that there are a lot of great bits on knowledge to be picked up in this episode.

However, as I say every time, it is nearly impossible for us to fit everything into just this blog post. If you have time, be sure to check out the full episode which can be found here. These interviews have genuinely helped both Matt’s trading and mine, and we think that there are great lessons to be learned regarding risk management, discipline, and even some trading strategies you may not be familiar with. We hope that with these episodes, we can help you in your attempt to make it Beyond the PDT.

How Did J Trader Begin His Trading Journey?

Having been involved with trading for so long now, it made us wonder as to how he actually got into it to begin with. Because of the time frame, he did not have a lot of resources out on the internet which made it much harder for a lot of people who wanted to start trading back then to get a true start at it. However, J Trader was in a relatively unique situation in which his parents were both involved in the markets having worked for some large firms in New York City when J was very young.

Upon moving to Rome, J Trader would walk with his father down the street and every so often they would stop in front of screens that had tickers reading on them. His father would tell him, even when he was only 8 or 9, that he needed to learn to invest when he got older. Around the age of 19, J Trader began versing himself in the markets with the help of his network, and from there he became who he is today.

What Types of Stocks Does J Trader Trade? Does He Have a Bias?

J Trader tells us in this interview that he does not play one particular type of stock or one setup either. In fact, he even tells us in this episode that he plays options as well and over the course of his 20-year career, he has traded a number of other markets. At the time, though, his primary plays are both in the options market and with small cap, low float runners. The reason for this is because he – like many of us – love the volatility that come with these small cap plays.

It is the same reason that he trades options frequently as well, though, as there is the potential for a lot of upside when the opportunity presents itself. When it comes to options, he particularly plays stocks like TSLA, AMZN, NFLX, etc., of which have a lot of volume and decent range on the day.

That all being said, there are times when he plays large caps as well. The reason that he tends to stick to small cap low float stocks is because of the volatility that comes along with them. However, this is not to say that large caps do not get volatility and when they do, J Trader will play them as well.

Regarding J Trader’s bias, he does not have one that he focuses on 100% of the time. Because of the nature of low float stocks, we know that most of them fail and the inevitable edge is generally short (when patience is able to be attained.) That being said, it is also clear that there can be a very strong edge going long when these low floats have news. Seeing that J Trader has been doing this for such a long time now, he has recognized how to attack both long and short with these low float runners and is able to play both sides of the run.

Does J Trader Have a Strategy?

As Matt mentions in the beginning of the episode, J Trader has what he calls his “J Lines” of which are a particular and undisclosed indicator that he uses to gauge some of his trades. He has not told us whether or not this is the only indicator he uses, nor has he told us if this is his only strategy. However, they are simply a set of lines that have the ability to give confirmation and a set/defined risk level to play off of.

Furthermore, by using these lines he is able to develop the bias that he would like to use for the particular trade. That said, this is the same way that a lot of people use something as simple as VWAP – they are nothing more than a set of indicators that work for him.

Exclusive Beyond the PDT Merchandise 

Psychology and Small Account Advice

J Trader and I have a very similar outlook on discipline when it comes to trading. This is something that I have even posted about on Instagram within the past few weeks. The idea is that finding success in trading simple comes down to your mindset. Hard work and consistency are what makes a strong trader, but this is hard to do when you do not work hard or have consistency elsewhere in your life.

Like myself, J Trader works out quite a bit. I personally like to think of this as something that is very similar to trading. A lot of people want to do it for fast results, but they do not know how to stay consistent with it. Furthermore, some people may be great at going to the gym every day but have an awful diet and are not disciplined in that regard. It takes working hard even when you don’t want to in order to find success in something like working out, and J Trader tells us the same is applied to trading.

Those who can find consistency elsewhere in their life paired with hard work are likely to have a better shot succeeding at trading because they will know how to apply those same values to their trading.

For small account growth, J Trader tells us that it is something that is very possible. However, because of the short-term mindset, people want to grow their $2,000 accounts into $1,000,000 accounts which is simply not possible. Instead, he recommends that we all look to take those small accounts and turn them into a more achievable number such as $10,000, and from there turn that into $20,000, etc. With time, goals will be achieved.

 

Closing Thoughts

Simply put, this was a fantastic interview. There was so much great advice that was given throughout and it is one you are not going to want to miss. J Trader is so experienced, and we feel that there is a lot that can rub off on you if you are able to apply what he has mentioned to your trading. We hope you enjoyed this week’s episode and that through these interviews, we are helping you find ways to make it Beyond the PDT!

Like our podcast and our blog? Have any comments, questions, or concerns? Let us know what you think by filling out a comment below or by sending us an email!

 

Episode 016: John Papa – Maximum Logarithmic Scale of Wealth

John Papa is a very well-known name in the trading community as a new trader who is beginning to find true success in his trading. While he did go through a bit of a losing streak during his first 6-7 months trading as many new traders do, he learned the power of tracking data on his trades to help him better his trading ability in the future. Being about 2 years into his journey, he has found a lot of recent success after having developed a number of strategies to help him diversify his trading overall.

In this episode, we talked to John Papa about how he got started, what he does to become more consistent, how he sizes, and the different style of trades that he plays. There is a lot to learn in this episode and we highly recommend checking out the whole episode if you have time!

How Did John Papa Begin Trading?

We have talked to many traders in the past few months who were introduced to the market by Tim Sykes, and John Papa was no exception. In the beginning, John thought that Sykes looked to be a bit sketchy in the sense that he was always promoting a lot of materialistic items. However, after some time, John realized there was likely validity to making money in the stock market and decided to give Sykes a try.

However, in the very beginning (for the first few months of his trading journey) he tried to simply follow alerts for trades and make money that way. Of course, as many of us know, that simply does not work out for any extended periods of time. It was right around this time that John began to realize that he was going to have to put some serious work in if he wanted to find success.

In doing so, he began watching a lot of videos that Sykes had available on his site and learned a lot from the videos by Tim Grittani. While he was beginning to learn a lot, he also was trading a lot of different setups for no apparent reason. It was not until he began to focus on tracking data that he would see changes in his trading.

How Tracking Data Helped John Papa to Become More Consistent

In this interview, John Papa tells us that the tracking of data allowed him to see what setups were working best for him. Because he was trying to trade so many different strategies and was not doing a whole lot of tracking when he first started, he had no way to see what was working for him and what was not.

With time, he began by tracking very simply data such as the time of the day that he entered, the prices of the entries and exits, and whether he was long or short. Eventually, he began tracking the setup that he was trading to see what worked for him. This allowed him to find the setups that were making him not only the most money but were delivering him with the highest win percentage.

How Does John Papa Trade Today?

In this episode, we talked a bit about some of the styles that John trades frequently. Overall, he has four main strategies that he looks to use; a long and short setup on OTC stocks, as well as a long and short setup for NASDAQ listed stocks. With that being said, we really focused on his long setup for listed stocks in this episode, of which he learned from Roland Wolf’s DVD.

The setup essentially involves finding recent reverse split stocks, as these are normally the ones that will look to release news and drive their price up. What John does with these recent reverse split stocks is simplistic in nature but takes a lot of work to find the perfect setups as well as great timing to ensure that there are good entries and exits.

While we did not go too much into the strategy in terms of the specifics in the episode, the idea is that John has a list of stocks that he is watching for after digging through some filings that have recently gone through reverse splits. When he has a good watchlist, he will then look to buy in the premarket if and when they release news. It allows him to get in with relatively minimal risk with very high returns. If you are interested in learning more about this strategy, click here.

 

Exclusive Beyond the PDT Merchandise 

John Papa’s Idea on Sizing

John has a very interesting take on sizing. While many of the traders that we have talked to in the past have essentially said that you should begin sizing up with experience, John Papa uses the Kelly Criterion for his sizing decisions. Unfortunately, that could be a whole blog article in itself for those who do not know what the Kelly Criterion is. That being said, if you want to learn more about the Kelly Criterion, click here to read up on it.

The reason that John uses this is because it allows his results to be very consistent. Think of it this way – if you have high conviction with one trade and use massive size but it does not work, you are going to take a massive loss. On the other hand, if you don’t have much conviction on another trade and take small size but end up with a massive percentage win, it is going to bring about skewed results. To this, John believes that the Kelly Criterion has helped him to remain consistent in his trading and uses it to this day to determine position size based on his account.

Closing Thoughts

This was a great episode regarding a different aspect of risk management and learning how John Papa looks to take his trades. This is one of the most interesting views on sizing that Matt and I have heard yet and it is absolutely something that may benefit some new traders.

On top of this, John gave us some great insight as to his trading strategies. If you want to learn about all of the strategies that were mentioned in this episode, be sure to check it out and give the whole thing a listen!

Episode 015 : Madaz Money – Two Dimensional Trading

Madaz is one of the most consistent traders in the game with one of the greatest stories we have heard yet. He started off like many of us, as will be talked about to follow, and has made a name for himself on Twitter because of his consistency and transparency. For those looking to learn a bit more about Madaz, check out his website or his YouTube channel as there are a lot of great lessons to be learned from both his chatroom and his videos. While no one episode will make you a successful trader, learning the lessons from all of these episodes and some top-level traders may help you to make it Beyond the PDT.

Who is Madaz Money? How Did he Get Started?

Again, Madaz is one of the most well-known traders on Twitter because of his insane consistency in the market. Furthermore, it is even better than he started trading like many of us – working a full-time job wanting more. As an engineer graduating from college during the 2008 financial crisis, he was not making as much money as he was hoping to. With that being said, he had a friend at work who was into the stock market who seemed to be doing well for himself. This was the beginning of Max’s journey.

While his friend happened to end up knowing nothing about the market, and appeared to have gotten pretty lucky, Madaz knew there was a way to learn. After studying charts and working on his trading game for a few months, he began to find some consistency. At the time, he grew his $6,000 account, of which was under the PDT, to over $40,000. This is tough for a new trader, but it is possible and Madaz is living proof.

At the time, though, he ended up taking a massive loss, bringing his $40,000 account back down near where he started. Many people would have given up at this point, but he knew that this was nothing more than a setback and that trading was a true possibility. The loss taught him discipline and from there, he grew his account to back over the PDT and never looked back.

What is Madaz’s Style?

Another aspect of Madaz that is very well-known is his extremely unique style of trading. As a day-trader, we have a few options. Some hold their position for hours and even may be swing traders, and others are scalpers, being in positions for a few minutes to an hour. Madaz, on the other hand, is more of a micro-scalper, sometimes only being in his position for a matter of seconds.

The reason he does this is to capture the meat of the move and to ideally minimize his risk of halts and other news events that may mess up the trade. Because of his style of trading, he is very reliant on Level 2 and the tape. We wanted to get some insight as to what he did to learn it and got the answer we were expecting – tons of screen time. Very similar to those like Harry Hoss, he recommends recording your screen and playing it back at lower levels during big moves to see the change in the action and simply train your eyes. With time, you will begin to see differences in how the stock moves based on the L2 and tape.

The NoBlowUpChallenge

Madaz made a name for himself on Twitter after starting what he called the NoBlowUpChallenge after a large loss last year. Within the course of 2 days, Madaz lost over $100,000 due to revenge trading and using too much size. That said, he still ended the year green and simply worked on sizing appropriately which has helped him tremendously in his consistency. This has been something that I personally (Bryce) have used to help find consistency as of lately, as oversizing makes the trade too much about the money and not enough about the quality of the trade.

After starting the NoBlowUpChallenge (rules that he still uses to his trading to this day), Max has found tremendous consistency – he even went on a 40+ day green streak earlier this year. When he realizes a shift in the market again, he will begin sizing down until he sees the setups that work for him.

Journaling Trades

Madaz told us in this episode that he is a big proponent of journaling your trades. This is how he has found consistency in his trading especially as of late, as it allows him to see where he is making mistakes and allows him to adjust. It was actually because of his journaling that he was able to create rules for the NoBlowUpChallenge. After seeing the mistakes that he made over time that created such a large loss, he knew exactly what he needed to change in order to find consistency.

At the very least, journaling trades allows traders to see what they are consistently doing well and what they are not doing well with over the course of a long period of time. For those who are able to have the discipline to make changes based on this, they are likely to find success.

Some traders are proponents of tracking data, and while Madaz is also big on tracking data on your setups, it seems that the best data to track may be your trading habits. At the end of the day, any setup can work, but your ability to follow your rules is what is going to make you money in the long run. Journaling your trades will allow you to see what is working and if used correctly, can have a HUGE impact on the success of your trading.

 

Closing Thoughts

As I’m sure you see, we talked a lot about consistency in this episode as well as journaling. The two are clearly correlated for those who are able to understand their mistakes and learn from them, and Matt and I think that this can have a huge impact on your trading. Both Matt and I have seen a great change in our trading because of the psychological changes we’ve made and have been able to stick to simply from learning from top-level traders that we have talked to and hope you are all able to as well.

Madaz was a great guest to have on and seeing as he is one of the most consistent traders in the game, we feel as though there is a lot to learn from in this episode. We had a pleasure talking to him and hope that you all could learn a lot too!

Like our podcast and our blog? Have any comments, questions, or concerns? Let us know what you think by filling out a comment below or by sending us an email!

 

 

Episode 014 : Ricky Analog – The Dark Side of Fundamental Analysis

Ricky Analog is often known on Twitter as one of the most well-versed traders for his understanding of fundamental analysis. He also is one of the traders at StockTraders.net. Although we went into this interview expecting him to be a fully fundamental-based trader, we learned that fundamentals make up a mere 10% of his overall thought process on a given trade, with technical making up about 90% of his trading. With that being said, he tells us why he feels as though fundamental analysis is still vital for his trading, as well as how he got started trading out of college.

Overall, this is an episode you are going to want to listen to if you have the time to! While these blogs help for a quick recap, the lessons learned in these episodes far outweigh the knowledge we can portray in our blog posts!

Who is Ricky Analog?

Ricky began trading about five years ago now after having created a passive business that him and his business partner have been working on since college. The type of business that him and his partner run is online retail, doing a lot of business through Amazon’s FBA program. However, once the business started generating passive income for him and his partner, he decided that he wanted to try something new. Because of this, him and his business partner funded a $10,000-$15,000 E*Trade account but blew it up very quick during the first pot stock boom.

After they blew up this account, his partner decided he did not want to continue trading but Ricky wanted to keep learning about trading because of the possibilities it could bring him. For 2.5 years, Ricky was an unprofitable and inconsistent in his trading, but after learning a bit of fundamental analysis during the second half of his first year and learning from respectable traders, his trading vastly changed.

How Did Ricky Learn Fundamental Analysis?

After joining a trading room – the Spartan Trade room to be exact – he learned from some of the good traders in there that fundamental analysis has a lot of value. He would ask some of the traders in the room how to read filings but was given very short answers that did not provide a lot of help initially. However, he told us that these short responses forced him to learn on his own and that he owes a lot of gratitude to them for forcing him to learn on his own.

This goes back to a very important idea that many times new traders fail to understand. There is no shortcut to success – most new traders are expected to be given the holy grail, but even when you are given a successful strategy, very rarely does anyone use it correctly without putting in their own work to refine it. For Ricky, he learned filings by simply reading thousands of them over the course of his trading career. After seeing the same words and filings enough times, he began to understand what they all meant. If you are interested in getting a very solid start to learning fundamental analysis, consider checking out Ricky’s YouTube channel, where he has a number of in-depth fundamental analysis videos!

Why is Technical Analysis More Important in Ricky’s Trading?

When he explained this to us, he made it clear that this applies mainly to low-float stocks. Understandably, as many of us know, these are junk companies who usually have no real business and are burning a lot of cash. Because of this, they need to raise money through offerings and through being able to exercise their warrants, so they will release press releases to pump the price of the stock up in order to get out of their positions or to file offerings.

However, this does not mean that the areas in which these warrants are able to be exercised will act ass resistance. While this does help to give Ricky a bias on a trade, technical analysis will always give a better idea for intraday action. Very rarely do one of these low-float junk companies become a real company, so fundamentally, it can be assumed that the price will fall. However, technical analysis will give a better understand as to where the value of the stock is going to be throughout the day.

Ricky’s Tip to Becoming Consistent

When we asked about how he recommends new traders start off, Ricky told us that he recommends taking data on every single trade you take. This is no new news by any means – we have talked to a number of other traders in the past who have highlighted how important it is to track the trades you take. He recommends looking at the strategies that are working for you and focusing on those – much easier said than done, of course. With that being said, by getting as much data as you can on the trades you are taking (and properly applying it to your trading), you should be able to work on finding consistency in your own trading.

Closing Thoughts

Ricky provided some of the most insightful information we have heard yet. Again, if you have not had time to listen to this one, it is not one you are going to want to miss. While we went into this interview expecting Ricky to be very heavy on fundamentals, but we learned that technical analysis is still a massive part of his trading.

We had a great conversation with Ricky and absolutely learned a ton. Hopefully through episodes like this, you are all learning a lot too!

Like our podcast and our blog? Have any comments, questions, or concerns? Let us know what you think by filling out a comment below or by sending us an email!

Episode 013: Agent 47 – Keep Your Guard Up

This week’s episode of Beyond the PDT was another great one, where we got the pleasure of speaking with Agent 47. Agent is a trader with the MIC group and has found consistency in trading nearly everything that is running. Simply put, Agent plays stocks that have volatility, be it low float runners, large caps with earnings, or anything in between. Needless to say, he is a successful trader who dropped a lot of great nuggets throughout the episode. Matt and I found one of the best lessons he had to be learning to de-associate trading with money. Once he was able to forget about the money aspect of trading, he was able to focus more on taking trades for the purpose of taking good trades as opposed to taking trades for the sole purpose of making money.

Like in our last episode with Tim Bohen, Agent 47 tells us that he uses trading as another stream of income – he is not necessarily a full-time trader. That being said, they have both shown us that it is possible to trade as well as have other ways of making money. However, the real matters talked about in this week’s episode were heavily based on trading psychology, which is ultimately what makes a successful trader. If you have time and have not already, be sure to give this week’s episode a listen!

Who Is Agent 47?

As mentioned earlier, Agent 47 is a member of the My Investing Club, which has presented us with a number of successful traders to talk to in our past episodes. While he had a bit of a rocky start with them, not knowing if he wanted to continue being in a chatroom, he soon realized that there was a lot of valuable information being brought in from strong traders that he could be learning from. Low-and-behold, he began learning different methods of trading from these traders and was able to expand his trading palette.

Moving on to the personal side of Agent 47, he is a trader originally from Pakistan who moved to Norway to study at university some time back. He went to school for finance as the school he attended had the number two business school in the country of Europe. As with many of the other traders we have talked to who have also been finance majors, it has helped them in trading in some way or another, whether that be by being able to understand stocks better from a fundamental standpoint, or simply by having a better understanding of numbers and the market in general.

While we never really got into what Agent 47 does besides trading, he does have other streams of income on top of trading as well. This is something that has helped him to be able to detach himself from money a bit, as he knows he will be able to still have money coming in if he was not to be successful trading. We will get into this a bit more in the following, but this is something that has helped him to become a consistent trader.

 

How Did Agent 47 Get Started Trading

When Agent first got into trading, he was not as well-versed as he is today. Small-cap low float stocks were not something that were in his arsenal. In fact, when he first got into the market, he was purely interested in long-term investing, which is the same way that a lot of us first began trading. However, once he began to see plays that would make large intraday moves, especially earnings plays, he realized there were other ways to make money in the market.

Because of this, he first started off trading large cap’s earning plays for a while, but then through learning about other types of short-term trading, began to trade whatever he saw that had volatility. The reason he began trading faster moving stocks, he says, is partially because of who he is as a person. “I am not the kind of guy that could play GTA, I’m more of a Modern Warfare kind of guy.” What he meant by this is that he simply is not a patient person, as many of us aren’t, and this has had an impact on how he trades.

Fundamentals and Technical Analysis

Being a finance major, it is expected that Agent 47 has a decent understanding of fundamentals. Because of this, we asked him how much technical analysis versus fundamentals impacts his trading decisions. His response was simple, but very important. While fundamentals do play a large role in the overall price of the stock, that does not mean that the stock price is going to be representative of its fundamental value on an intraday term. For stocks that Agent swings, he says he uses a bit of fundamental analysis to get a gauge as to where he thinks the fundamental value of the stock is going to be over a period of time, but during the day, momentum traders have the ability to take the price of the stock far away from the fundamental value of it.

For that reason, Agent says that during intraday trades, fundamentals are not as large of a contributor to his decisions. That being said, he is not by any means saying that fundamental analysis is not important, rather, that technical analysis to him is simply more important in terms of intra-day trading.

Psychological Aspect of Agent’s Trading

In terms of psychology, this was one of the more interesting interviews we have had so far. Agent 47 told us about how he typically only trades for about an hour a day, and in order to stay fresh and on top of his game, he likes to break his trading into different intervals of time. Instead of looking at his trading as a one-hour block of time, he breaks it up into 15-minute intervals. From what he mentioned, he got this from the idea of boxing and how it is broken up into rounds, and that he looks to do the same thing with his trading. After every 15-minute interval of time, he takes a step back and refreshes his mindset. If he took a bad trade in the first interval, the next interval was a time to look at his next trade with a fresh mindset.

Closing Thoughts

This episode with Agent 47 was a great one that both Matt and I were able to take a lot away from. The information he dropped in this episode was extremely important for all traders who are looking to find consistency in their trading to hear, and if you have not, definitely be sure to check out the full podcast episode. We look forward to bringing you next week’s episode with Ricky Analog, where we will go into more detail about fundamental analysis!

Like our podcast and our blog? Have any comments, questions, or concerns? Let us know what you think by filling out a comment below or by sending us an email!

Episode 012 : Tim Bohen – Supplemental Part-Time Income

Tim Bohen is the head trader at StockstoTrade Pro, a cohost of the Steady Trade Podcast, and one of the owners of StockstoTrade. With his heavy background in the market, he has found a lot of success both trading as well as teaching others to trade. In this interview, he tells us about not only how he got into trading and what he does, but also about how he teaches others to trade. Furthermore, he goes into detail about how he thinks of trading as something that should be used to supplement income as opposed to doing it full-time. While we all realize that there are a lot of full-time traders, he simply believes that the capital made from trading can and should be used to either supplement other income, or to create other streams of income.

How Did Tim Get Started Trading?

Like many of us, Tim had some interest in the stock market from an early age. After having founded a successful business back in the 1990’s and finding success in the late 90’s to early 2000’s, Tim decided he wanted to get into trading stocks after he had some more time. Not really knowing where to go, he started watching CNBC and attempted to invest long-term. However, he realized that he would only see a few percentage points gained on his account every year if he was lucky, and sure enough, the financial crisis happened in 2007-2008 which brought a lot of volatility to the markets.

Tim then realized that this volatility had the potential to make people a lot of money who understood what they were doing with it. After doing some searching on the internet, he came across Tim Sykes and became one of his first students. This all actually came from an Amazon suggestion for Tim’s book, but after having read it, he learned that there were cheaper priced stocks that were very volatile. From here, he then learned how to short-sell through Tim Sykes, and from here, used trading as a way to supplement his income, only truly trading part-time. For him, this was the best way to not only grow his account and live the lifestyle that he desired.

Tim’s Role in StockstoTrade

As of 2016, Tim Bohen has been a big part of StockstoTrade, being one of the lead traders over there. Because of his success as a part-time trader, he wants to teach others to be able to do the same thing. While it is many of our dreams to be a full-time trader one day, the fact of the matter is that many people do not have the means or the knowledge to be able to do this full-time. Especially for those who want to trade but have a full-time job, it is near impossible to quit that until you have found massive consistency in your trading.

At StockstoTrade, Tim teaches people that they should be “busting their asses” at work while they learn to trade. Again, the idea here is that Tim wants people to know that successful trading does not have to be done full-time and can even be done at work. However, this does not mean that work should not be taken seriously either. It simply means that you do not have to give up your primary source of income to become a successful trader.

Tim also highlights that he feels as though something that is lacking with trading platforms is the lack of education. StockstoTrade is something that is more than just a charting program, and Tim tells us that he does two webinars every day for those in the StockstoTrade Pro program. He does this in order to deliver some kind of education to those who are looking to be a successful trader while still having a great platform to trade with.

For Those Under the PDT

Like me and Matt, we know that many of you are trying to grow your account from under the PDT. However, this is something that is very difficult to do, and is also a reason that Bohen mentions that it is near impossible for a lot of people like ourselves to become full-time right out of the gates. Being a full-time trader while under the PDT is near impossible as well as it is to grow your account from under the PDT and then become a full-time trader. While it is not impossible, and Tim mentions that there are unicorns, it is simple not something that everyone should expect.

However, for those who are looking to grow their account from under the PDT, Tim says that they should have a very growth-oriented mindset. This does not mean to hit for home runs and look for exponential growth on one trade, but rather to have a very strict and precise process to your trading. With only a few trades a week, you need to make sure you are trading the best of the best setups, and this means that it is much better to take a few small winners than to take a huge loss that kills all of your growth.

Advice For New Traders Today

Back when Tim Bohen first started trading, he was a very short-biased trader. However, the same is not to be said today. While he still will take short positions, he also realizes that for new traders especially, the edge is on the long side. This of course does depend on the type of stocks that one is looking to trade, but with a lot of low-float and OTC stocks, there has been a lot of edge longing recently.

This goes back to some of the past interviews we have had lately with a lot of new traders having found the OTC market and making money with simple OTC breakout plays. The patterns are working very well right now and there is some volatility that is beginning to pick up in the OTC market which is great for those who are just getting into the game.

Shying away from strategy, Tim also suggests that new traders who may be struggling to find consistency take a step back and learn the processes and strategies that work best for them while they save up some money by cutting expenses. Even saving a few hundred dollars every month will give a couple thousand by the end of a year to be able to trade with and also gives the trader a lot of time to study and learn.

Closing Thoughts

Matt and I had a great time talking to Tim about what he does and his thoughts on trading as a whole. It was a very unique perspective coming from a successful trader that trading does not need to be a full-time focus necessarily. In fact, he recommends that people trade part-time until they have the means to go full-time as well. This should give a lot of people hope, though, in the sense that it is possible to find success in trading even while being at a job and having other commitments. Of course, we all know it is not going to be easy as there are a lot of commitments that need to be made such as learning, studying, financial means, etc., that go into finding success. Nonetheless, we learned a lot of great information in this episode and hope you did as well!

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Episode 011: James Freedlender – Side Chicks and Fantasy Orders

It is without a doubt that James was one of our most interesting interviewees thus far. Having started in a much different fashion than most, James knew out of high school that college was not for him and took it upon himself to make his own business. During this time, he learned the power of patience and discipline, of which taught him a lot of lessons for trading as well. Stating that he treats his trading like his business, he has found a lot of recent success since joining MIC and is now a consistent and profitable trader. With the lessons he has talked about during our interview, we hope they can be a part of what helps you to make it Beyond the PDT.

 

Who is James?

James Freedlender is a 25-year-old trader who has found recent success since joining My Investing Club. However, aside from his trading he also runs a successful old-fashioned, high end men’s barber shop. He tells us in our interview that he felt many people were not able to find the same barber shops that their parents grew up with since many people are turning to places like supercuts or simply going to salons, and because of this he came up with a business model revolving around these older style barbershops. Finding success in this he has opened up a number of other locations and is looking to continue scaling at a reasonable rate that works for him.

As a trader, James focuses on a few different strategies revolving mainly around low-float stocks. However, he has mentioned that a lot of his success would be by shorting overextended runners, but not on the first day. His primary goal would be to find what he calls “side-chick” plays, meaning ones that had run the day prior but also ones that have been forgotten about. Many times, day-two movers will spike the second day, especially if gapping down in the pre-market, only for them to fail because of shorts loading the boat and bag-holders getting out of their position. James takes advantage of these side-chick plays that people often forget about to make his money trading.

What Has Contributed to James’ Recent Success?

In My Investing Club, they preach something that a lot of people should work on taking advantage of; Trading Accountability Buddies. Known as TAB, these trading buddies essentially help to review trades and keep each other accountable for the trades that they have made. James has a TAB in the group with a trader named Davone, and after having both learned from each other and talking with each other, they have been doing well as of recently. In fact, James recently went 32/33 for green days, something that he has never done before. Before joining MIC, James was consistently losing money, but since, he has been profitable and is doing very well.

Other Factors of Success:

Besides having simply joined MIC and having a Trading Accountability Buddy, there are other factors that James attributes to his success. One of them is that of having fantasy orders, which is essentially an order placed at a price that may be unrealistic, but if it does hit that area then he will be very happy with the price he paid for the stock. Essentially, this is a great way to avoid FOMO and lower the risk in a trade drastically. Often times, new traders have a price they want to get in at but are not able to allow themselves to wait that long to get in a trade, and more often than not they get out near the price they should have gotten in at, only to see the stock end up moving in the favor they wanted it to.

However, James also tells us that discipline is among one of the most important things that he has learned. Of course, part of this is from having had his business, but the example he talked to us about that really hit home had to do with sizing up. He notes that one of the most important aspects of success is using appropriate size and realizing that size is earned. This is a marathon, not a sprint, and this means that size should only be added when consistency is there. He views his business inn the same manner, realizing that it is producing enough funds to open a lot more locations, but also realizing that he is not in a spot where he feels the business is ready to open all of those. As time goes on and he proves to himself that he will be able to continue to do business at the same pace, he will then look to add locations. The same should be applied to trading, and that when one finally begins to see consistency is when they should look to start sizing up.

Closing Thoughts

James was a great interviewee and is one we look forward to hopefully talking to again in the future! He is a very genuine guy who seems to enjoy going out of his way to help others along their journey. If you have not yet, be sure to check out the full episode at BeyondthePDT.com as this is one you will not want to miss. We hope this taught you a bit about discipline and risk management and can’t wait to see you guys in the next episode!

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Episode 010 : Timothy Sykes – Testing, Refining & Optimizing

For those who are not familiar with Tim Sykes, he is one of the most successful day trading mentors on the planet. After starting with his Bah mitzva money back in high school during the dot com bubble, he made over one million dollars by the end of his freshman year of college. From here, Tim continued to trade but also realized that he wanted to teach people the art of trading instead of trying to only trade. From here, he has created a number of millionaire students, and over the course of the past month or so, he has created six figure traders.

During the course of this interview, we decided to change up the type of talks that we had. As opposed to asking him about his trading career, we wanted to focus more on what it takes to become a successful trader in his eyes. After having created a number of traders who are able to trade full-time, it seems that this episode could be much better off looking at what his criteria is to become successful.

Image result for timothy sykes

What Does Tim Preach?

With years of experience in the field of teaching students how to day trade, it is clear that there are some commonalities of his teachings that he sees. With his successful students, he notes that they do everything they can to become successful. This is no surprise, but he mentions to us that his top students watch his video lessons and study chart patterns day in and day out in order to make it to the top. However, with that being said it is important to note that he does not want students to simply copy the teachings and expect to be successful – rather, he wants his students to use these video lessons and study as a way to build their own strategy and find a niche. Those who look to simply copy trades and strategies without working on it themselves are not going to be the ones who will make it as full-time traders.

Building off of this, Tim also mentioned to us that not everyone is going to want to be a day trader, and that is okay too. The reason that Tim teaches trading is because it is a scalable strategy to make a lot of money if done right. For those who can find their passion and find a way to make consistent money with it (good money), that is what they should do. He uses the example of people who drive Uber every day in hopes of becoming financially free or being able to work for themselves. Sure, this is a way to add some wallet padding money, but this is not a way for people to live a full-time lifestyle. When asked about patience in terms of making money and finding success, he responded, “A lot of people are patient driving an Uber every day, but they’re never going to get rich because they are not following a strategy that allows them to get rich.”

The point of this was to demonstrate that when trading with a small account in the beginning, Tim would rather see one of his students be making $50-$100 dollars a day and then moving up to a larger account to be able to make $1,000-$2,000 per day. Again, the idea here is that it is a scalable strategy that allows for people to grow their wealth at an exponential rate if done correctly and with the right amount of discipline.

What is the Importance of Studying?

Tim is a big proponent of studying the past not to necessarily predict future price action, but instead to understand what could and should happen. By understanding how similar stocks have reacted in the past, it is much easier to play them according and cut off losses quick if it is not working in your favor.

Essentially, and pretty clearly, Tim thinks that studying – whether that be through watching his videos or by simply watching the markets – is the key to success in trading. This is no new news by any means, and we could not agree any more. Some people learn at a much faster rate than others, but you will get out of trading what you put into it. Even if you feel as though you have not been able to find consistency after months or years of hard work, keep studying and eventually it will pay off!

Cutting Losses Quickly

Sykes is often known as a more cautious and impatient trader. This is because he would rather see his students take a paper cut loss and still have the funds to trade months or years in the future than hit for home runs and take a massive loss that disables them from being able to ever trade again. In the beginning, he recommends keeping losses and risk extremely minimal and cutting off any sort of trade that does not work in your favor, even if that means cutting before you are able to let the trade work in your favor.

The idea here is that after cutting losses enough and then consistently watching the stock do what you wanted it to do that you now have a few options. One of them could be waiting for a little bit longer to take the entry, and the other could simply be learning to take appropriate risk. The point of this is simply to teach new traders how to take small losses as opposed to not understanding risk.

Closing Thoughts

This was for sure one of our most fun interviews yet, all the while remaining very informative. We had a great time interviewing Tim and feel as though there are a lot of good takeaways for new traders in this episode. Thank you all for supporting the podcast and we are really excited to keep it going!

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Episode 009: Kyle Williams – Trade Well, Not Your PnL

In this episode of the Beyond the PDT podcast, hosts Bryce Tuohey and Matthew Monaco interview Kyle Williams. Similarly to our last couple episodes, Kyle is primary an OTC trader because he has found the market to be more welcoming than the NASDAQ market. However, Kyle mostly shorts old fashioned pump and dumps and overextended OTC runners. Mastering these two strategies has allowed Kyle to become a consistently profitable trader.

Who is Kyle?

Kyle is a college student just like Matt and I who found trading back in 2016, and like many people, started through Tim Sykes. When he first began trading, he had barely even studied but decided to hop right into it. Right off the bat during the course of the first few months, Kyle lost a bit of money (25% of his account at the time) due to a lack of preparation for the markets. He would trade blind and rarely study, but he soon realized that if he wanted to be successful at this that it would be appropriate to study up. After taking these losses, though, he began to absorb as much knowledge as he could and within the next 12 months, he became a profitable trader who was seeing consistency in his trading.

As of current, Kyle is a college student enrolled in a finance degree. He told us in the beginning of the episode that while he thought finance may help him in his trading, he has realized that it is not doing much for him. That being said, he still enjoys the subject and had planned to work at a brokerage firm for some time after college if trading wasn’t going too well for him. Luckily, at the rate Kyle is going, he plans on being able to trade full-time after college instead of having to go out into the working world. At the moment, Kyle has just surpassed $60,000 in trading profits, but it should be noted that the past few months of his trading has been where he has seen true monetary success.

How Does Kyle Trade?

Like the past few interviews we have done, Kyle has found his success in the OTC market. Again, for the same reason that our other interviewees have found success, he believes that the OTC markets are simpler in nature and easier to trade because of their slower moving action. When he first started off in his trading career, he was looking to long OTC runners, but he quickly realized that his key to profitability was going to be shorting them instead. Furthermore, he also realized that he needed to stick to a defined number of strategies instead of just playing something because he liked the look of it.

Kyle’s first glimpse of profitability came when he started shorting OTC supernovas, sometimes even on the way up. The way he would do this is by confirming that it was a pump-and-dump. For those pump-and-dump plays, he pays close attention to how many days its been running, the size of the float, and simply ensuring that it truly is a stock that is being promoted. Because of the fact that it is hard to get shares to short for these runners, he has to short them on the way up, but he does so with small size so that he can afford to be down.

For those runners that are not OTC pumps, he will wait until the backside is confirmed for the most part and short the dump and do his best to long the panic. With these two strategies, Kyle tells us that he has been profitable. As of today, Kyle has worked on playing some NASDAQ’s as well, and says that roughly 20% of his trades are on listed stocks. Part of the reason for this is because the OTC markets are not always hot, and when there is not a sector to play or any kind of momentum then it is very rare for there to be a viable play.

What Has Kyle Attributed to his Success?

While talking to Kyle, one this appeared very evident; he is extremely patient. He mentions to us in the episode that Kyle would rather be late and right about your trading thesis than early and wrong, and using this to his own advantage, he makes sure that the stock is going to do what he wants it to do before simply entering the trade and hoping.

Building off of this, Kyle’s patience also allows for him to be able to not play stocks that he knows are not going to make him money. A lot of new traders have the mindset that if they are not making money then they are losing. Kyle on the other hand is able to mentally realize that even is he is not losing money that he is doing better than the 90% of traders that are losing money. Having this mindset is very important and while it seems simple, it is often much harder to put into practice than new traders understand.

Kyle’s Tips to New Traders

Overall, it is clear that Kyle has found success because of his hard work ethic and his patience. He emphasizes a number of times throughout the interview that his patience is what has made him a successful trader. Also, though, he tells us that too many traders trade for the sole purpose of making money, and while this is ultimately the end goal, it cannot be the beginning goal. One of our favorite quotes from the episode was “trade well, not your PnL.” Essentially, the point here is to trade your strategy and do not worry about the money. There is always time to size up when you prove that you can be consistently profitable, but do not go into a trade for the sole intent to make money doing so.

We had a great time interviewing Kyle and hope that you enjoyed this episode. He offered a lot of insights as to what works for him, and hopefully these will be able to work for you too. Matt and I are excited to follow Kyle on his trading career and wish him nothing but the best of luck moving forward – hopefully we will be able to talk to him again in the near future as he continues to crush it!

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Episode 008: Dominic Mastromatteo – Let’s OTSwizzle

Dominic is another OTC trader that we have had the pleasure to interview who shares his simple, yet effective strategies and mindset that he uses to excel in the OTC market. Like many of the other OTC traders we have heard from and have talked to, he mentions that he believes it is much easier to trade the OTC market than it is to trade the NASDAQ. The reason for this is because it appears to be much more reliant on technicals than on fundamentals, which makes it much easier to gauge as to whether or not it is a good idea to be in a trade. In this week’s episode, Dom walks us through some of his setups, how he got started, and where he is at today.

How Did Dom Get Started?

Dom mentioned to us that he had a lot of time, as he was doing school online as opposed to going to a physical university. This allowed him to take a lot of time to focus it on something that he wanted to excel in himself as opposed to a different career path. While his friends and even family at points judged him for wanting to pursue trading – something he lost money at when first starting – as opposed to making a steady income at a full-time job. He also mentions that his dad played a big role in helping him get started with the Tim Sykes DVD course, as well as fully supporting the idea of him trading full-time. He saw the upside potential that trading had and believed that Dom had what it took to do this full-time.

After purchasing Tim Sykes’s DVD course, Dom tells us that he would spend upwards of 17 hours a day studying during some points, be it through watching the market, tracking data, and studying the DVD’s and other content. He mentions to us that he largely attributes this hard work in the beginning to his success now.

When Did Dom Start Finding Success?

Like many, Dom was not profitable right off the bat. He was trading anything and everything and did not have much of a strategy to back up his trades. He was trading OTC stocks and listed when he first started, up until the first half of 2018. It was not until he went through and started tracking his trades that he realized he was losing money on NASDAQ stocks, while making money trading OTC stocks. Furthermore, NASDAQ stocks made up 40% of his trades, so he knew he had to cut this out.

From there, he began focusing primarily on OTC stocks, and while he can make money on OTC during a given point in the week if the setup presents itself, he makes the bulk of his money with sector momentum in the OTC world. From here, Dom has found consistency in his trading and has done quite well for himself. While he does tell us that he struggles to adapt to changing markets at times, especially when a sector is starting to die down, he mentions that this is what he is working on in order to continue to improve his trading style.

What is Dom’s Style?

Dom is primarily a long-biased trader in the OTC markets, primarily buying the breakouts of OTC runners. Using this style, he buys the breakout of a stock after it consolidates knowing that it would likely gap up again the following day. This happens a lot during a sector momentum in the OTC market. He then mentions to us that he was able to keep his risk relatively small buy only risking a green-to-red move, and that the majority of these stocks that he would play would be a first green day play off of a runner.

Going back to a point that he made, though, about the style he uses, it is imperative for this style to work that one has patience. Many people are consumed with buying the breakout as it breaks, but Dom realized that when an OTC breaks out, that almost every time it is going to pull back and consolidate throughout the mid-day. Towards the end of the day (2:30-3:30 as mentioned by Dom in the episode) the stock will likely begin to pick up some momentum, and as it begins to heat up again, Dom begins to buy in this area. By the end of the day, if it closes strong, Dom swings overnight and sells into the gap-up the next day. He calls this strategy the OTSwizzle, a very creative name that Matt and me absolutely loved.

Why OTC?

In terms of what Dom suggests that beginners start with, for one reason in particular – he finds it much easier to trade. The reason for this is because, as aforementioned, technical analysis is the main reason for these moves. He also talks to us about how this is simply not the case on listed stocks and says that if you were to have a strategy solely based on technical analysis in the NASDAQ market over a six-month time frame, that it likely would not work out too well. In the case of the OTC market, technical analysis is far more important in terms of predicting the next move of the stock.

Closing Thoughts

It is clear to us that through Jack’s episode and Dom’s episode that OTC stocks trade much simpler than many NASDAQ stocks. Because of this, Dom and Jack have both recommended that beginning traders start off learning the OTC market, and if they want to later go onto listed stocks then at the very least, this serves as a great way to learn technical analysis. Of course, Dom mentions as always that risk management is important, but because of the way these stock trade, risk levels are usually much more defined.

Overall, we had a great time chatting with Dom, and we hope you guys had a good time listening. Stay tuned for next week’s episode and thank you for all the support thus far!

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