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.
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!