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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Episode 007 : Brian Lee – Professional Gamer to Star Trader

Brian Lee, a trader based out of California, has had a very unique story in terms of his trading career and how he has found consistency. From being a professional gamer out of high school to finding his love for trading stocks, he has gone through a lot to get to be where he is at today. Though when he started trading he was technically over the PDT, it took him time to find consistency to start truly growing his account to be over the PDT for good. In time, though, he has grown his account quite exponentially and is well over the PDT.

Personal Background

As mentioned, Brian started off as a professional gamer out of high school. He mentioned to us that he would often sit in his house for hours on end playing video games knowing that he wanted to do something with it. The game he and his eventual team trained for was called DOTA 2, and while at the time there was a $1,000,000 prize pool, it was unheard of for American gaming teams to be invited to this tournament. With that being said, the team that he built made a name for themselves being named the eighth best team in the world.

Though they proved many people wrong, they fell short in the tournament and lost to another team. It was after this point that Brian realized he wanted to do something different – he had made it as a professional gamer, but it was time for something that he felt he could do long term. It was at this point in time that he discovered day-trading.

How Did He Get Started?

Brian mentioned to us that he had a lot of rules coming into the game. Though he papertraded for quite some time and did feel like that was time wasted, he had a lot of rules after realizing how much money could be lost. Instead of adding to losers, he would cut them off quick for a small papercut if anything, and let his winners run for a 3:1 r/r. Once he became confident in his trading strategy, which is primarily short-bias at this point, he began to see exponential gains in his account. With these gains, Brian realized that this is something that he could possibly do fully time.

Unfortunately, Brian’s father passed away which put a damper in his trading career. Because of this, he took some time off to be with his family. One of his concerns was that he felt as though he would come back to trading and haven forgotten his rules, but instead, the exact opposite happened. He realized the value of money more than ever now and knew that if he wanted to continue to do this full-time, that he would have to take this extremely seriously to ensure his success. After coming back from this family tragedy, he was back swinging in full force with a lot of momentum and continued to hit it out of the park. This too helped his account to see exponential gains.

Did He Ever Have Drawbacks?

Every trader has a time in which they have some drawbacks, and when Brian began getting to the point where he could use enough size to affect the short-term market, he saw that he was taking losses due to slippage; an issue that he has never had to deal with before. Furthermore, during the run of the weed-sector, he had taken some losses that if they went uncontrolled, could have led to a blown-up account. Brian took a step back and sized down, refining his strategy and adapting to the market to help him get back on track.

After being back with a new set of rules, Brian has continued to grow his account to a place where he is comfortable with the size he is using and having a very systematic strategy – something that he feels is very important to become a professional and successful day trader.

Advice for Newer Day Traders?

Brian mentioned to us, like many other traders we have talked to have, that psychology is everything in day trading. Handling emotions is one of the single best ways to become a successful and consistent trader. To him, this means having a very strong understanding of risk reward, because if you can find a winning strategy and have a very strong risk reward, this will allow you to cut losses right when you need to, and let the winners run enough every time so that your account can grow. To Brian, he mentions that risk reward and understanding how to properly use it for his trading was how he became so successful and recommends that newer traders work to have a better understanding of this.

Closing Thoughts:

Brian Lee was a great person to talk to regarding trading and learning the psychological aspect of it. If anything, risk reward and understanding how to systematically trade seem to be one of the most important aspects of how Brian has found success, and it is clear that he recommends this to be the way for new traders to find consistency. Also, Brian also tells new traders that he does not recommend beginning with paper trading as many other due for the simple fact that it does not teach people how to deal with emotions, which again, are among some of the most important aspects of trading.

Overall, Brian wants to let the listeners know to take singles when they are there, and to work on finding a strategy that works for you. If you can master the psychological aspect of trading, consistency will come. We had a great time interviewing Brian and would love to have him again some time in the near future. Thanks for reading!

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Episode 006: Jack Kellogg – Welcome to OTC Land

Jack Kellogg is a very interesting young trader (20 years old), having only gotten started trading at the age of 18, he is now profitable over $100,000 from OTC trading profits. He started off first by trading low float runners, but quickly found out that he excelled in the OTC market as opposed to listed NASDAQ stocks. Foregoing the opportunity of going to college, he realized that he could be in a much better position if he stuck to trading. He used his mentality of excelling both at sports and video games as a mindset to move forward, and as of today, Jack is a profitable trader who has made it over the PDT.

 

How Did Jack Get Started Trading?

Like many other traders, Jack found out about day-trading through friends and Timothy Sykes. While he did have a small E*TRADE account at the time of him starting his journey, he rarely traded with it and instead spent his time studying videos by Tim Sykes, of whose courses he ended up purchasing.

When he felt as though he had learned enough information from the content offered from Sykes and the DVD’s available on his site, he began short-selling Gritani’s overextended gap-down strategy on lot floats. However, commissions ended up eating away at most of his profits as he was not using large size.

Fast forward a few months, and ticker $HEAR came around. A lot of people at the time went short on this stock, and Jack was one of them. While he did not disclose the amount of money he lost on the ticker, it was enough to make him reconsider his strategy.

Why OTC’s

After taking a loss on $HEAR as aforementioned, Jack began talking to some other traders, one of which traded the OTC market and seemed to be doing pretty well for himself out in Michigan. After some talking, Jack decided to take a visit out to his newfound friend in Michigan and watched him trade. After seeing him make good money in the short time he was out there, especially with seemingly little risk, Jack decided to learn the OTC market himself.

At the end of August of 2018, Jack took $29,000 and threw it in an E*TRADE account to start trading the OTC market. It was right around this time that the marijuana sector began to run. While Jack did not get to trade this, he got to learn from the sidelines.

 

Jackaroo on Profit.ly

Come the next month, and Jack had made $2500 consistently every week of the month of September which led him to his first $10,000 month. To Jack, this was proof that he could do this full-time. While the next few months were a bit slow, he still trended upwards. A few months ago, Jack decided to move out to Michigan to live with his friend and trade together with him. Come February of 2019, and Jack had a $46,000 month. While March was a bit slower for Jack, he has been focusing on taking singles and preserving his capital.

Does Jack have an OTC strategy?

Jack trades OTC’s in a very simplistic manner, simply trading OTC breakouts day-in and day-out. He mentioned to us that it is very important to start in early, looking for runners on the day and simply buying in on dips. Sometimes, he will look to take some profits before the breakout in case it does not end up breaking out at all so that way he has a safety cushion if it is to fail.

In terms of what he looks for to trade, he simply is looking for running OTC’s that have are trending up on the daily and on a 15-day 15-minute chart. Those stocks that are looking to break out to new levels are ones that he keeps focus on and will look to add on dips when he sees necessary. Something that is very interesting about Jack’s trading style is how simplistic it is in manner. While most of us when we first started trading were told to just buy the breakouts, this was not something that was extremely feasible in low-float land. A lot of stocks are heavily manipulated, and with so many people short-selling now, buying the breakout on NASDAQ’s is not as easy as it used to be. However, in OTC-land, this is not the case and according to Jack, it works very well. Again, though, Jack does buy dips before the breakout as well.

How Does Jack Track Data?

While Jack used to simply track strategy when he first began, he started realizing that it was more important to him to only track the plays that he takes. He does this because while strategy is important, he also notes that there is not a whole lot of point in tracking trades you are not taking. The strategy you are using applies to the trades in which you take, so tracking your own personal win percentage and how you do makes the most sense in Jack’s eyes – at least once you have found a strategy that works for you.

Wrapping Things Up:

Jack was a great interviewee to have on our show this week. He trades in a very simplistic nature and has found success in an often-overlooked market – the OTC market. Though, he has shown up that with enough time and dedication to your passion, it is possible to turn your dreams a reality.

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Episode 005: Harry Hoss – Always Adapting and Getting Better

In this week’s episode of Beyond the PDT, we had the pleasure of interviewing Harry Hoss, a current Twitter sensation in the day trading community. After having found recent success with a strategy he learned in My Investing Club, he has been helping other new traders to learn and use the strategy to find consistent profitability – the same consistency that has allowed Harry to trade full-time for a living whilst still being in school. Needless to say, this was one of the best interviews we have had yet here at Beyond the PDT, and if any up-and-coming trader can help you to get to consistent profitability, it very well could be Harry Hoss. Listen to the full episode below:

For those who don’t know, Harry is a young day-trader from Canada. Because of this, he has never technically been under the Pattern Day Trader rule, but he has proven to be able to take a very small amount of money and grow his account exponentially after finding consistency with his trading style. After his newfound success, he has been helping other people all across the internet by teaching them his style of trade

 

How Did Harry Get Started Himself?

Harry has a story much like a few other prominent traders in the trading community – he started off trading because of an injury that kept him from being able to do anything else. At a relatively young age he was faced with a major decision; sit inside and do nothing while he recovered from his concussion or take this time to learn a new skill that could help him in the future. As legend has it, Harry found some free videos and information online that led him to start learning how to day-trade, and just like that he began working on the art of trading.

In this interview, Harry also tells us that when he first began trading, he was not in any chatrooms. He was not learning from anyone else besides the internet resources he had for free (be it YouTube videos or through the ideas of some people on Twitter) and his own mistakes. Through his own trading, though, he eventually began to see success in time and after having taken some losses due to inconsistent trading.

 

When Did Harry Begin to See Success in His Trading?

Very few day-traders see success in the early stages of their trading careers, and Harry was no different. He started off very short-biased, simply shorting low float runners because they are up too high, as many people think as they begin to short-sell. However, one of the main issues that he had was that he was not tracking any kind of data; be it technicals or fundamentals. In time, though, he began to realize the power that fundamentals played on the movement of a ticker. After seeing the power fundamentals had on these low float stocks, he began to track data on them and how they moved the stock. He noted that it was around this time that he began to see early success in his trading. At this point in time, Harry was primarily a short-seller still, and while he did not get rich off of his short-selling, he tells us in his interview that it did help to pay for his University.

 

Why Did Harry Switch to Long?

After seeing the recent massive runners in the low-float land, it seemed difficult to ignore the possibility of trying to long. After having joined MIC, Harry learned a lot of strategies taught by the moderators of the room, one of which being the “first bounce” strategy. This is the strategy that has ultimately made Harry as successful as he is today. The premise of the idea is that there are key levels on a chart where low-float runners should fall back to and bounce before continuing their run. Through a lot of studying of the strategy, Harry has been able to identify areas of the chart where the stock should bounce off of its first pullback, and generally looks to take long positions in these areas (contingent on the tape and level II backing his justification.)

 

Harry’s Trading Advice to New Traders:

One thing that appeared evident throughout the course of this interview was that Harry has always been big on studying. He told us about how when he joined MIC, he went through every single one of Bao’s tweets (one of the owners of the room, and a very successful trader on Twitter) and studied why the first bounce strategy worked when it did. Furthermore, he also told us about how much time he has put into watching Level II and the tape to see what stories it told beyond just the candlestick movements. It is clear that this hard work he has put in has been extremely vital to his recent success as a trader.

Because of this, he encourages people who are just getting into trading to study. One of the most important things that he thinks new traders should study is the level II and the tape, which can be done through screen recording your day, or by going onto YouTube where MIC has posted free content of a day full of Level II and tape reading. By doing this and simply getting the screen time in, he suggests that any new trader will be able to find some kind of an edge.

On top of this, he also encourages new traders to study the chart. As mentioned earlier, by simply going through and looking at Bao’s charts, of whom he learned the first bounce strategy from, he was able to find a lot of success in his trading. For new traders who are working on learning a strategy, he suggests that looking at charts when the strategy worked and when it did not work is important so that you can learn “the why” behind the strategy.

 

Closing Thoughts:

Harry is one of the most unique traders we have had on out podcast thus far. Being as young as he is, as well as still being in University, it is extremely rare to see this level of success. Nonetheless, he has proved to all of us that with enough hard work and determination, regardless of one’s age or where they are at in life, that they can make something of themselves. After this interview, Matt and I both decided to look a bit more into the first bounce strategy, and we will be the first one’s to tell you that it is a great strategy for both new and experienced traders alike. Thanks to Harry, a lot of new traders are able to find a strategy that is relatively simple to follow, and with the right amount of studying into it, one that has the potential to yield some great success.

Overall, we are very happy to have had Harry on this week’s episode of Beyond the PDT. Be sure to tune into next week’s episode and blog post as well, as we have another great interview in store! For more Episodes of the show, click the logo below!

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Episode 004: Dan Irish – You Just Have to Stick With It

In this week’s episode of Beyond The PDT, Bryce and Matt had the pleasure of interviewing Dan Irish, a rising young trader who has been struggling during his trading career over the course of the past couple of years. With that being said, after taking a $14,500 loss of his $30,000 account right out of the gates, Dan has grinded back and is finally back over the PDT after having found consistency in his trading.  There is no question that Dan has what it takes to make a name for himself as a trader, and it is all a result of hard work and determination.

Listen to the full episode HERE:

 

Dan Did Not Follow the Crowd

One of the things about Dan that stuck out to us is how Dan got started trading. After deciding that college was not for him, he decided to stick his feet into playing poker (of which he still does to this day.) He liked the fact that it was a very statistical game, and while there is always some luck involve, there is a way to get better. While he was slow to start finding success, over the course of two years of his playing he eventually was able to take $50 and turn it into over $40,000. While he mentions that this was not a plethora of money to make over the course of 2 years, it helped him get by and allowed him to save up enough money to be over the PDT when he first started trading.

 

How Did Dan Get Started Trading?

Dan learned about trading after having been playing poker for a while. Something that Dan realized about trading is that it too was very statistical based, and he knew that with enough hard work that he could turn the odds in his favor.

His discovery of day-trading came from Tim Sykes, and Dan mentions that he learned of all of the free content that Tim puts out on the internet and immediately went to absorb it, with one of the most useful pieces, according to Dan, being the Trader Checklist: a free video guide.

After soaking up as much knowledge as he could, Dan decided that it was finally time to put some real money into trading and funded his first account with roughly $30,000. Unfortunately, Dan found himself going in with far too big of size on plays that he had little experience dealing with. Within the first few months of his trading, Dan had turned his $30,000 account to under $15,000 – a discouraging blow. In fact, he was so discouraged at the time that he thought trading might not be for him, and he decided to step back for some time and really study the market.

For a few months, Dan paper traded until he found a strategy that worked for him, and after a lot of time in front of his computer screens, he decided to start trading with real money again.

This time around, Dan had worked hard to understand what it would take to make money on a consistent basis. You can see his equity curve on Profit.ly here to get an understanding of what it took for him to get back to above PDT. Over the course of the past few months, he has been grinding consistently, not using too large of size, and working on getting the meat of the move in order to secure his gains. This is something that Dan has found vital in growing his account back to above PDT so that he is not to risk too much money while still being able to see consistent gains.

 

Advice to New Traders

Dan mentions later in the episode what he would do if he were in the position where he had to start all over again. He makes it evident that paper trading is something that he can attribute to his success, and by using StocksToTrade, he was able to paper trade real time to practice his strategy.

Furthermore, Dan talks about how big discipline is to his trading. In the beginning, he struggled greatly with overtrading because of a lack of discipline. While this is not always going to be an issue for those who are under the PDT, there are cases where new traders may decide to go with an offshore broker where they have not only full ability to trade when they please, but also with leverage. Dan’s advice is to make sure to trade the setups that work for you and to not trade out of boredom. Also, regarding discipline, he tells us all to make sure to stick to the plan. Everyone should have some sort of plan before they enter and get scared out before the plan has time to work or exit too early because they are up a little bit. Instead, be discipline and let the plan work out, and if it is clear that the plan is not going to work, then cut losses.

Check out more episodes of the Beyond the PDT Podcast!

Closing Thoughts:

Dan’s story is one of the most unique and inspirational ones that we have seen. He was in a place in which many would have given up. While he was close, he stuck with it and made it back to profitable and above the PDT. While this is all recent, we expect to see Dan continue to make something of himself in the months and years to come. For those who want to follow Dan’s story, check him out on Twitter here.

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!

Bob Knight – The Bottom, The Top, and the Rest In-Between

This week, we had the pleasure of interviewing Bob Knight, better known on Twitter and Profit.ly as Turbo Bob. Having been a successful trader for the past 20-30 years, Bob has a lot of experience in the markets. With this experience, he decided that he wanted to begin to teach other traders leading him to become a part of Turbo Trading. Since the room launched, he has helped guide a number of other traders within his community, alongside his moderators, to help work on getting traders over the PDT.

Listen to the full episode with Bob Knight HERE and sign up for the TurboTrading Giveaway!

How Did Bob Get Started?

Bob got started in the market back in the 1980’s, initially as a stock broker in Canada in his very early 20’s. At the time, he was living at a ski resort and decided to that it was time to make something of himself. After borrowing a suit from his dad, he decided to interview at a local brokerage firm, and as luck would have it, he got the job. From there on, he never looked back and had a life revolving around trading.

During the course of his time at firms, he started off doing what many would consider “pump and dumps” today. However, back at that time, these types of plays were very popular and widely accepted as the way people traded. With that being said, there came a time in which Bob was ready to start trading on his own. He came to this realization during the financial crash of 2008 while on a phone call with his brother. Financial analysts were telling the world to sell their stocks, but Bob knew that it was likely the bottom and the best time to start buying. After he was right, he realized that there was money to be made simply trading the markets himself.

After coming across some big names in the day-trading world through online promotions and whatnot, Bob decided he might want to try this out. With that said, he was never a “day-trader” as many would call it, rather, he had more of a swing-style from the beginning. Nonetheless, it was at this time that Bob decided to trade in this style and for himself.

Bob’s Trading Philosophy:

There is a lot that Bob attributes to his success as a trader. Including, the knowledge he has gained about the markets in the past working at his firms, or lessons that he has learned afterwards, but one of the main philosophies that he follows regards the way that he sells. When Bob enters a position, he makes it an effort to sell his shares in chunks – he is never looking to top-tick per se, because he realizes that this is near impossible to do consistently.

Instead, Bob mentions that he makes it an effort to sell some at the bottom, some at the top, and the rest are sold in between. Of course, this does not mean that he is looking to sell at the bottom because he wants to take a loss, rather, he will sell off shares of his position as it nears his price target, and after it hits his price target he may hold some. Inversely, if the price dips at some point he may look to get out of his position slightly as well, hence the idea of selling some at the bottom.

In essence, his idea is that one should never dump all of their shares at once – especially with the swing-type style that he trades. Rather, locking in gains on the way up is the best way to go about it because if the stock continues to go up, you still have some shares left to lock in the gains.

Bob’s Advice for New Traders Regarding Trading Style

In Bob’s trading room, Turbo Trading, he and his team work to teach their community something different than a lot of other’s teach; do not trade the volatile stocks as a new trader. He mentions this because he feels as though it is one of the easiest ways to lose money right off of the bat. His idea is that when one is trading in the first 10-15 minutes of the day, especially as a new trader, they are at high risk of getting dumped on. Instead, he recommends that if a new trader is going to be trading these lower float stocks to wait for a few minutes and attempt to let a trend develop. In the podcast, he mentions, “you can always get in on the first pullback.”

Again, though, Bob teaches a style that has suited him better in the past – trading stocks that are not as volatile. His style of trading revolves more around being in a position for the course of a few days, weeks, or sometimes even months. It’s all about riding the trend, and he mentions that this is not as easy to do with volatile stocks. While his swing-style may take a little bit longer, Bob mentions there is less risk involved especially for traders who are just beginning.

Bob’s Thoughts on the PDT

It should not come as a surprise that Bob is not a fan of the PDT. However, seeing as Bob grew up and still resides in Canada, he has never personally had to deal with the PDT for his account. With that being said, he does not think that it is a great way to protect traders. In his words, the PDT is “a complete travesty for traders.” Bob believes that beginning as a trader is difficult enough and being stuck in a position because the trader cannot break the PDT is absolutely absurd.

In his opinion, beginner traders may be better off looking for an off-shore broker so that they are not forced to be subject to the PDT. Of course, this comes with risks in itself because of the possibility of overtrading and paying high commission prices, but in the same breath for those traders who are able to stay discipline, it serves as a great way to get around the PDT when starting off.

Closing Thoughts

In this interview with Turbo Bob, we were able to talk about what types of strategies Bob thinks work for new traders. However, we were also able to talk about Bob’s life and what led him to become a full-time trader, and now a mentor for new traders as well. For those who are interested in learning the type of trading the Bob has used to become successful, check out our giveaway for one free month of access to Turbo Trading!

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!

Tyson Muse – Fuel Your Racecar

Welcome back to the second episode of Beyond the PDT, in which we had the pleasure of interviewing Tyson Muse, a professional trader based out of Arizona. In this episode, Tyson told us about his journey, how he got where he is today, as well as advice to new traders and moderately experienced alike who are working towards a consistent trading career to help get beyond the PDT! Listen to the full episode:

How Did Tyson Get Started?

Tyson got started at a young age after learning about the markets from his father, who invested in large-cap stocks for a long-term return. Through here, Tyson began to dabble in day-trading and trading on a more short-term basis. He began by finding a mentor in the options market, but after watching his mentor take a one-million-dollar loss during the 2008 market crash, he decided that the options market may not be for him.

When deciding to start swing-trading equities, ranging from mid-caps, large-caps, and even small small-caps when the opportunity arose, he started with a small account. Like many traders, he blew up a few of his small accounts, but then once he found consistency with his small $4,000 account, he added in another $50,000 to his account to take larger position sizes. After finding this consistency, he has not turned back and has continued to grow and use trading as one of his sources of income ever since.

Tyson’s Trading Mentality:

Let’s be honest, everyone wants to hit the next home run with their small account – the trade that will turn their $3,000 account to $25,000 overnight so they can finally get over the PDT. However, trading with this mentality is what causes many people to blow up because when trying to get these astronomical returns, risk is generally thrown out the door which is what leads to some pretty massive losses, of which can be detrimental to any small account.

Hence, Tyson has a very simple trading philosophy – work for 1% every day. This 1% applies to your trading account, and the goal should be to grow your account be one percent every single day. Through the power of compounding, this would turn a $10,000 account into a $121,000 account by the end of the year. Assuming the trader loses 1% a day, this would bring the account down to $800 by the end of the year. So, assuming a trader is able to stay consistent, that would be the potential of a $111,000 gain.

Tyson’s theory is that when he is up over 1% on his account, he sells a portion of his position to lock in his gains. He will sell the rest of his position ideally at a higher price. To Matt and I, this idea of 1% a day is more than just a solid guideline for growing your account, but if followed, it also helps to avoid FOMO. Say that one day you place a trade resulting in 5% growth on your account – this could technically mean you could take the next 4 trading days off. The idea here is that you should really only be trading the best setups (which we should all strive to do anyways) as opposed to taking debatable trades to try and make a few bucks. At his very core, like most experienced traders, Tyson is big on trading discipline and believes this is what will help traders finally get over that hump of consistency.

Tyson’s Trading Strategy:

Generally speaking, Tyson is a swing-trader as has been mentioned. With that said, he has a unique style of trading that is heavily reliant on news. He views news as his fuel for his car – without that fuel, the car (stock) is not going to move. From here, he uses technical analysis for entries and stop losses.

Regarding his strategy, he uses this news to find stocks that day-traders are going to trade on the day that it gaps up. As many know, these low-float gappers are heavily traded in the morning and sometimes throughout the day, and then within the next few days after short sellers come in and volatility is lost, the price settles back down to a normal price. This is when Tyson strikes so long as the news justifies it. Ideally, the stock will bounce back after falling because the news is great and the main reason for the price fall was because of the initial spike in volatility. From here, Tyson will enter his swing position and sell as it either grinds back up, or sometimes will sell into another spike as day-traders start heavily trading it again.

Again, this is another great way to avoid FOMO on the first day, as there is a very good chance the stock will drop relatively rapidly. Instead of getting dumped on, Tyson’s idea is that with good enough news, the best time to buy is when the initial wave of day traders forget about it, and others start buying it based on the news.

Tyson’s Thoughts on the PDT:

Very much like many traders we have talked to, Tyson does not think that the PDT is a good idea at all. While there are instances in which it disables overtrading, there are other times where it does not allow traders to get out of a losing position because they would break the PDT. Furthermore, it encourages traders to use offshore brokers, of which offer larger leverage than a new trader should usually be using, as well as heavy commissions.

Overall, it appears evident that Tyson thinks that the PDT is more of a hinderance on new traders, particularly because of the fact that it does not allow traders to cut losses, than it is beneficial.

Closing Thoughts:

Through this interview with Tyson, it is obvious that discipline is one of the most important aspects of trading for him. While there are strategies that he has and setups he looks for, none of them would work without proper trading discipline. Unfortunately, this is one of the hardest aspects of trading to learn, but with hard work and time, it is possible. Make sure you check out Episode 001 – Introducing 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!

 

Beyond the PDT: The Introduction

Welcome to the final trading frontier – “Beyond the PDT” – where we interview those who have made it beyond the PDT themselves through hard work and determination. We know that if they can do it, so can anyone, and through these interviews we hope to get an inside view as to what it took them to break through the ever-so imminent barrier of the PDT.

Who Are We?

Our names our Bryce Tuohey and Matthew Monaco, and we’re two college students who decided to pick up day-trading ourselves and have been working hard over the past few years to make a name for ourselves. Matt began trading towards the end of his senior year of high school and into his freshman year of college as he sought a way to become financially free at a young age. I (Bryce) met Matt during my sophomore year of college through some mutual friends, and instantly we bonded over our love for hard work and aspiring to take a different path than the rest. Personally, I worked as a freelance writer, and still do, which is something that I love because of the freedom and flexibility it gives me. Watching my peers bust their ass for minimum wage inspired me to find a different way to make good money, and that was my first way of doing so.

After getting to know Matt, he talked to me about his interests in day-trading, and instantly I was all ears. Not because of the fact that I was looking to get rich quick by any means, but to me, it seemed to be the greatest way of finding a way to become financially free. Over the past year-and-a-half, I have been working on finding a strategy that works for me. After all of this time, I have finally found something that I feel has the potential to be profitable if I am able to stay discipline and hope to be over the PDT by the end of the year.

Matt, on the other hand, has been trading for about two years now, and over this time he has gone through a lot of different strategies and systems, and after meeting a mentor who has helped him refine a strategy that works for him, Matt hopes to be profitable and above the PDT by the end of the year.

Why “Beyond the PDT?” What Makes us Different?

Unlike other trading podcasts, we want to get to know not only those traders who are immensely successful, but also those who are just beginning to find success and consistency who have just made it beyond the PDT. We have all heard some of the most successful traders out there, be it through Twitter or other forms of marketing. With that, we all know their stories as well, and while they are nothing short of extremely inspiring, not everyone is going to be a top-notch trader overnight.

Hence, we decided that looking for those who have been working hard for quite some time to finally be profitable and consistent may make for great people to talk to. Matt and I feel that we are intermediate level traders, of whom could really benefit learning from those who have just recently made it out of our own shoes. Hopefully, you feel the same – our goal is to deliver you content of people that you can relate very well to – those who have been in the game for quite some time trying to figure out how to get it right and have just recently made a name for themselves.

Hopefully these are not people you have heard of before. The idea is that these are different people than you may have listened to, and they may very well have small followings on social media. Nonetheless, their story may be even more powerful to someone like you, or us, because they too were in the same position we are all in right now: trying to find a way to make it beyond the PDT.

With this all being said, we also are making it a goal to talk to those who you likely have heard of, because we feel that their stories are just as important too. While you may have heard their stories through other social media platforms, we strive to get updates as to where they may be now and learn from any mistakes they may have made recently, or inversely learn from recent success.

Our Thoughts on the PDT

As you can imagine, we are not exactly fond of the PDT. Matt and I have both had very different experiences with the PDT, mainly because of the difference in the way that each of us trade. Matt currently is more focused on swing trades, as the PDT made it very hard for him to focus solely on day-trading. Even still, Matt has been forced to change his style because of the PDT after having broken it five different times over the course of the past two years with a number of different brokers. Needless to say, Matt does not like the PDT at all.

I am also no fan of the PDT, as I feel that it forces newer traders to find ways to try and go around the rules, be it through the use of an offshore broker or by opening up a number of different accounts to have multiple day trades. I personally opened up an offshore account where I was encouraged heavily to overtrade, costing me a lot in commissions because I hoped of hitting it big with the use of 6:1 leverage. This is not what new traders need at all, and I highly encourage that traders who are just beginning do not use this leverage, as when used without proper trading discipline, it can be very deadly.

To this, I will be the first to admit that account blowups are inevitable. As a beginner, everyone makes rookie mistakes, sometimes mistakes so large they blow up an account. The goal for new traders or those struggling to find consistency should not be to make big wins, but rather to keep the losses small. I don’t know about any of you, but I would personally rather go back and forth between making and losing $100 a day, than to make $250 one day and lose $500 the next.

What to Expect in the Coming Weeks?

From me and Matt, you all should expect a lot of great episodes that will give you insight as to how the elite traders, as well as those who are finally breaking through to the next level think. With our interviews we hope to help both ourselves and you learn, so that we can all become better traders together.

Check Out Episode 001: 

 Episode 001 Details

By working hard and learning every day, we hope to help you 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!