The Stock Trading Reality Podcast

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OptionSellers.com Roasts Its Client Base. Let's Learn! | STR 195 Dec 10, 2018

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We are trying something new, so your feedback is certainly welcomed and wanted! In this episode, Chezz and I discuss a recent event that caught fire in the headlines. Perhaps you are aware, but if not, the website OptionSellers.com got extremely careless with their client's money and ended up creating a massive… we'll call it… "problem"… for those who trusted them. The entire topic created several rabbit holes of learning and consideration that I believe we can all benefit from. Whether that be for someone like myself where the lessons learned are a "reminder" or for new traders that may never have considered the discussion points we talk about. Bottom line, I believe this format has some potential in the future, so I hope you enjoy and get something from it. Like I said, your feedback would be much appreciated.

Week One: Annihilation. Then What? | STR 194 Dec 03, 2018

Show notes

We're back with another classic tale of getting punched in the teeth as a rookie. Thanks to our guest, Blake (those of you in the chat room community will known him as 'ElkTrout'), and his openness, we are given an insight into the dangers of approaching the market in… unwise….ways. I've met Blake in person on a few occasions and he's a class act who knows what it takes to work hard and fight back. Sure, he self admittedly didn't get started in the smartest of ways, but he also didn't play the victim card. What did he do? How did he bounce back? That and much more in our nugget-filled discussion with Blake. Let's get to it! Notes: Today we talk to community member Blake who goes by ElkTrout in the community. His work was mainly seasonal at the time so he decided to look for some ways to supplement his income in the off season. This led him to investigate trading, mainly penny stocks. After doing initial research on trading via Google, Blake stumbled upon a few teachers but was able to discern who was genuine and who was trying to sell the 'get rich quick' lifestyle. His short stint trading penny stocks lasted 3 weeks before he decided this wasn't a long term strategy. Blake decided to mainly focus on options trading. Initially he did not do very well since he wasn't fully understanding of the greeks involved in how they are priced. He also skipped paper trading because without any money on the line he did not treat it realistically. Blake also knew that various paper trading platforms gave unrealistic fills. Something that he struggles with is his actual lack of emotion regarding his losses. Losses impact him so little that he pays very little attention to it which can lead to ruin if not checked. Blake recognizes this and checks on his performance weekly. Quotes: I found myself dreaming of being rich from buying a penny stock or two and watching it go to the moon. If you're dumb enough to buy into that you deserve to lose your money, kind of like trading. The first week I got annihilated. I guess that was part of taking my lumps and learning along the way. My chart vision is pretty dialed. I can be confident in that and make trade plans based on them. When you follow through on your ambition it will create consistency.

Don't Be Too Hard on Yourself. Welcome Back Zep! | STR 193 Nov 26, 2018

Show notes

Before we hosted this discussion, our guest from the community, "Zep" (same name in chat room), sent us a lengthy email that had me quite nervous. I don't want to offer up any spoilers, so all I'll say is that while we as traders certainly need to strive for the best and hold ourselves accountable, we also don't want to go "too far" in accountability. It's a fine line for sure and an interesting gray area of the market and personal growth as a trader. I thoroughly enjoyed this conversation as it allowed us all a deep dive into trader psychology and the angle of personal accountability. Notes: Today we catch up with community member Zep. We start off talking about his current trading issues, mainly being his consistency. With his schedule as a musician it makes it difficult for him to maintain a normal schedule. Zep wanted to focus on directional trading but the problem was the hours he works. After talking with some community members he had his eyes opened up to the practically 24 hour futures markets. This gives him the ability to trade past normal trading hours. A problem Zep has been dealing with is taking his profits too soon instead of letting them go to a logical target or trailing his winners. His goal is to make fewer trades and stay in longer. Most of his current problems come from his mental state. He knows how to trade well but the emotions cause him to make costly mistakes. Now he has a certain rule set regarding when to stop trading for the day. Another thing Zep has to work on is accepting that there is no 100% hit rate in trading. He needs to be more accepting of the uncertainty that trading entails. His trading strategy is sound but he is continuing to work on the mental side which does take everyone a different amount of time. Quotes: My overall problem has been consistency. There's a variety of reasons for that but consistency is what I'm going for. I like directional trading because you can make good gains. I've been trading more to survive than to grow. Not that I don't want to grow… If I start out red, it's a different mindset. It's a lot harder. It's a total mental thing. I had to go through this... The first couple of days I was beginning to question my ability. Links: https://claytrader.com/podcast/episode040/

Get Out Of Your Comfort Zone | STR 192 Nov 19, 2018

Show notes

This is one of my all time favorite episodes. I don't want to offer up spoilers, so all I'll say is that if you ever find yourself feeling sorry for yourself or letting the victim card mentality "sneak in", remember our guest, "Zee". Zee is a member of the chatroom and someone I had the pleasure to meet at our Florida meet-and-greet event. I still remember talking to him in person and being blown away by his story and genuinely motivated and inspired. Those are not empty words either… in fact, I found his story so inspiring that I invited him over to my other podcast, The Money with Clay Podcast for a more in-depth discussion of his life as a whole. Like I said, I'm not giving any spoilers other than saying, if you need even the slightest bit of inspiration or motivation, Zee's story will provide it for you without doubt! Let's get to it! Notes: Today we interview community member Zee. In 2012 he came to the United States because things were not going well for him in his home country. Since he only knew a little English, he had to start with some humble jobs. After a little bit of time he truly got on his feet. Zee started a family and a business. Now that he had extra income every month he learned about trading from a coworker who was using Robinhood on his phone. Zee realized that there was no need to rush into trading and throw money at something he didn't understand yet. After looking at various trading teachers, he ultimately chose to go with the University program based on all the content included. Since his work is mostly seasonal, he had time in the off season to study the material. He is big into tracking his trade statistics. Journaling is crucial to see where he is currently falling short or excelling. Zee also has a morning routine that he credits for giving him the energy to tackle the markets. Discipline has been a common theme in Zee's life and this has definitely helped him trading too. Being competitive can cut both ways but he has been able to use that competitive nature in a positive way to push his growth in the market. Quotes: When I was 16 I realized that my life wasn't going the right direction. It's not that I did anything wrong. It was just the setup. I figured out later that he wasn't really into it. He was just gambling. I had a lot of energy. I didn't jump right into trading. I wanted to jump start trading by focusing on my education. It works for me personally. It gets me out of the comfort zone. I don't want to be someone who just sits around and does nothing. I think I'm not great at my trade management. I try to increase my patience when it takes a while to get to my target.

The More He Learned, The More He Realized | STR 191 Nov 12, 2018

Show notes

This episode brings us a great talk with community member Anthony. While he's not completely new, he is still on the journey. His original idea was to use trading as supplemental income but realized that there is a lot more potential there. As Anthony kept learning more about the markets he realized that he had a lot more to learn. He spent a good amount of time reading books and watching video online about the topic. He also realized that there was more opportunity in the US market versus the Canadian market. Currently he is focusing on trading strictly in the morning while maintaining his regular job. While he aspires to trade full time he realizes that it would be irresponsible to quit a steady job before he's truly proven he is consistent. These are all just some of the talking points we hit. Let's get to it! Notes: Today we interview community member Anthony. While he's not completely new, he is still on the journey. His original idea was to use trading as supplemental income but realized that there is a lot more potential there. As Anthony kept learning more about the markets he realized that he had a lot more to learn. He spent a good amount of time reading books and watching video online about the topic. He also realized that there was more opportunity in the US market versus the Canadian market. Currently he is focusing on trading strictly in the morning while maintaining his regular job. While he aspires to trade full time he realizes that it would be irresponsible to quit a steady job before he's truly proven he is consistent. Anthony is focusing on getting licensed in Canada to manage others money if he so chooses. Ultimately this will be an option he can choose to utilize if he would like. Options in the job market is always a positive. Similar to any profession, a key to progressing forward is the ability to recognize your strengths and your weaknesses. Anthony is familiar with where he is falling short but also realizes what attributes help him make money on a regular basis. Quotes: I do feel comfortable trading on my own but I'm not comfortable making alerts for other people. I was watching for news that would move the price. I was using line charts at this time too. One day I bought in the first 5 minutes and then it just dropped. I thought 'it will stop, it will stop, it will stop.' I gave back all my gains from the prior week. I'd say it's close to 50/50 but I let the winners ride and cut the losses. Sometimes I still rush into trades and I need to work on that. I also need to spend more time on education.

$1,000 Gone in 2 Weeks. Then What? | STR 190 Nov 05, 2018

Show notes

Nothing like watching $1,000 disappear down the toilet with the time span of two weeks. Have you been there? I know I have when I first got started. In many ways, it's a rite of passage to watch your own money go "poof" when you first start trading. It does not need to be that way, assuming you take the proper steps, but most people (again, myself included) don't take the proper steps and experience pain. Fellow community member Diego shares with us his initial impressions of the market and how he thought it was all gambling. The mindset lead to headaches up front, but what did Diego do to make changes? How was his journey since pivoted? We talk about that and much more thanks to the honesty and bluntness Diego is willing to provide. Notes: Today we speak with community member Diego. His introduction to the market was fairly recently. He thought that putting money in the market was the equivalent to gambling until he started to do some research. He funded a $1,000 account with the idea that if he were to lose it all it was no big deal. That account had a short life span of about 2 weeks. He attributes this to the large commissions that his offshore broker was charging. Diego opened another account with more capital with a slower growth strategy. Unfortunately that sneaky voice of greed in our heads led him to think that this slow growth was not fast enough. Trading was meant to be the bridge between the money he had currently and the money required to invest in real estate where he lived. While everything was on target it was just not at the speed he wanted. After investing in his education and learning more about options trading, he thought this might be a better use of capital. Ambition cuts both ways. Since Diego wanted to fast track his progress he was consuming massive amounts of education in a very short period of time. He gave himself 6 months to get 'educated' but only made it 3 weeks before live trading again. Clay and Chezz suggest that Diego focus on advanced options because it sounds like it would suit his personality the best. Quotes: I didn't know what made the prices go up or go down. I just heard the horror stories of people losing a lot of money. All the videos I watched were successful videos… they showed you what happens when you win and I thought I could duplicate that. Those greedy voices in my head told me that I could be growing my account faster if I was past the pattern day trader rule. I've alwys been the guy to wing it. Do some research and I'll be able to pick it up after a little bit. Looking back, that's not the right approach to the market. As soon as I got into a trade I'd basically forget everything I learned and ride the high…

Leaving a Job to Pursue Trading | STR 189 Oct 29, 2018

Show notes

We cover quite a bit in this discussion with fellow member Keith (same name in the chat room). We once again see that "free" is not actually free when it comes to YouTube videos and also how strategy hopping works and the hinderances it can create. The overarching point of context here is that Keith left his full time job to focus on trading, which, is a gutsy thing to do. If you are thinking of doing the same, or perhaps already have, this discussion will give you some great insight into what has happened and will probably need to happen. Let's get to it! Notes: Today we talk with Keith who goes by the same name in the community. Unfortunately he invested in some penny stock guru which didn't ultimately lead to anything but it did spark his interest in the markets. After buying and holding some mining stocks, Keith realized he needed to learn from someone who knew how to trade. This would require more than just watching people on YouTube. He enrolled in Claytrader University and left his job to focus on it solely. Even after going through the courses, Keith realized he still needed to focus on his consistency. This is a function of the emotions that play into trading the market. Discipline is crucial for the type of trading he is working on. Keith has tried a few different styles of trading but recognized that he needed to decide on one and give it a real chance. Considering he works 30-40 hours a week, he noticed that he should focus on longer term swing trading. Quotes: I never took the time to go into fundamentals. Now it's just all charts. I don't have the patience for anything long term. Now I drive Uber and Lyft. That was my plan going into it… having some kind of consistent income as well. I don't want to be a strategy hopper. I'm getting more comfortable with it as time goes on. Links: https://claytrader.com/videos/risky-trader-goal/

Get Good at the Basic | STR 188 Oct 22, 2018

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One of the great things about the market is the lack of age requirements. If you have a passion and want to embark on the challenge, then let's go!, it's open to everyone. In this episode, we sit down with Adam (chatroom alias "EwokAvenger") who is still in college. I first started back in college so I always find these journeys interesting as I can normally relate to many aspects. The part that always surprise me is that even though I'm "older" now, there are still many things you can learn from someone who is technically younger than I am. As a small example/spoiler, I really enjoyed his logic and reasoning behind his strategy towards ensuring if does not get himself stuck in the "education loop" like many do. Adam is a young guy with lots of upside, and it was a beneficial discussion so let's get to it. Notes: Today we talk with Adam who goes by EwokAvenger in the community. While he is still a student, his college education is focusing on business and finance to ultimately become a financial planner. Even though Adam has formal training regarding general market principles, he wanted to turn trading into an additional income stream. This type of education will also have value in the field he ultimately wants to work in. He decided to dip his toe in the trading education waters by trying some low cost courses. Adam decided if trading still appealed to him after that he would invest in the University program. Just as planned, he learned some basics but wanted to take it to the next level and enrolled in the program here. Adam set an arbitrary timeline for when he wanted to start trading live. We speak a lot about how some goals are very risky. The reason he set this target date was to ensure that he didn't get caught in a permanent education loop where he would never put on a live trade. One of the keys to success is determining your end goal and designed a plan to help get you there. While there is always twists and turns, being as best prepared as you can will give you the best odds for success. Adam is well on the path for multiple aspects of his life. Don't be afraid to fail. Quotes: I have a very good online BS detector. I remember seeing some gurus' and realizing they were just selling something. Clay talks about the education aspect of trading, not the lifestyle aspect. That makes more sense to me. If you're day trading, not refining your skills, and your trades are not getting better, it's time to step back and look at the bigger picture. Get good at the basics. That's my style. Once I see its working I can then add to it or expand and develop. I have a literal checklist. I'm an Excel fan.

Learning to Think Different | STR 187 Oct 15, 2018

Show notes

My world was unexpectedly turned upside down with this discussion. I'll admit, at times my views can be quite rigid; however, hearing this person's story has shown me I maybe need a different approach at times. With all that being said, the pathway and moral-of-the-story was once again the same (and yet another data point): no excuses! Our guest, Ethan ("qualia" in the chat room), had an upbringing that caused him first need to do some heavy lifting in order to change his mindset, but after doing so, he's built himself a nice life and is now expanding into trading. The trading journey is still young, but given his mindset with his work ethic sprinkled in, there's no doubt he's going to be doing great things. I truly enjoyed this discussion and I know you will too. (in fact, I enjoyed it so much I also had a longer discussion with him on my The Money with Clay Podcast) Notes: Today we interview community member Ethan who goes by qualia in the chat rooms. While running his business in California, he met a broker who actually cared and tried to help his clients outperform the market. After looking at all the fees, Ethan wondered why he shouldn't just buy stocks himself. Considering his upbringing, he realized that he had conflicting thoughts about money. This has led to swings in his income over time. He needed to change his thinking and this would ultimately be the turning point for him. After visiting some friends down south, Ethan realized that his money could go much further in the real estate market there over the California market. After getting established at their new home, Ethan decided on a date to which he was going to enroll in Claytrader University. Now that his finances were in order, he spoke with a broker friend of his and realized that he could learn how to do this himself. Regardless of his new plethora of knowledge, the next hurdle to overcome is the emotional side. He knows what he needs to do but it really counts when the rubber meets the road. Quotes: Somehow I got in contact with a broker and this guy was so caring. He always made sure he was helping his clients. Thinking differently was like an exercise and building on it one small step at a time. We had some friends that lived down south. I could start up my business again and I could buy real estate very cheap. People use brokers because they are afraid. They don't want to do it. They want to put it in the hands of others. I actually have to sit down and make a plan and test that plan until I know it works. That's the hardest part.

A 73% LOSS Wake-Up | STR 186 Oct 08, 2018

Show notes

It's different for everyone, but many times, the wake-up call in regards to, "Hey, slow down!" comes in the form of a nasty account fire. Thanks to some very honest candor on this episode's guest, Josh, we all get to see (or reminded of) how dangerous the markets can be when approaching them without an actual plan. Sure, it never feels random at the time while everything is playing out, but just because things seem to be going okay does not mean you truly have a logical plan in place. From where Josh started to where he is now is night and day; however, he still has room to grow and plenty of things to work out, including trade management which we dig more into with some live coaching. Josh is a solid guy who offers up many things that others may not disclose, but in doing so, he helps bring a very realistic light to the pitfalls of trading. Notes: Today we talk with community member Josh. His introduction to the market was during his time in the military. At this point in his life he did not have any time to spend getting educated further on market principles. Josh's friend was big into marijuana stocks. This was toward the tail end of the big pot stock run that happened 4+ years ago. Following his advice he took his account from 300 dollars down to 80. This is when he realized he wanted to learn from someone who knew what they were doing. After investing in his education he began to practice. He waited until he had over a 50% success rate before he decided to fund a live account. Since he has a full time job and doesn't have time to focus on the charts all day, Josh decided to swing trade using the daily chart. Currently Josh is struggling with management of trades. While he has a great hit rate, if you trail your stop too tight you are hurting your overall profit by cutting good trade ideas short. After digging into his feelings toward money, Clay determines it might be best for Josh to reduce his position size. This should help him stomach losses easier and hold winners longer. Quotes: I tried to trade a couple. One worked. Another I had to hold for about a year and a half. Originally I tried using the 15 minute chart and riding it all day long but that didn't work. Now I use the daily. I had more success with the breakouts instead of the pullbacks. I kept getting whipsawed out of the pullbacks. It makes sense but I have to get over this mental thing I have about it. Nobody likes to lose but I don't go crazy if it goes against me. Discipline, consistency, and don't cheat yourself.

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