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00:00 Trading reveals the real you.
00:01 You can think, okay, I don't care about money,
00:03 I don't care about emotions, I can control myself.
00:06 You start trading and it's like you're completely naked.
00:09 You really see who you are.
00:11 Becoming a good trader will also help you
00:13 become better at different things in life
00:14 because managing your emotions, controlling yourself,
00:17 being more patient, think about all the areas in life
00:19 this could help you as well.
00:20 - Want to learn how you can make your money work for you?
00:25 Today's guests will share one way you can make that happen
00:28 and how to progress through the five stages
00:30 of your money journey.
00:31 KB, how's it going?
00:33 - Good, how are you?
00:34 - I'm good, I'm glad to be here in my studio in Brooklyn.
00:37 I don't get to record a podcast in person too often,
00:39 so glad to be here with you.
00:41 But let's kick things off with an easy question.
00:43 Just go ahead and introduce yourself,
00:45 but let's spice it up a little bit.
00:47 Can you also share an interesting fact about yourself
00:50 that most people wouldn't know?
00:51 And I'll go first with that part
00:53 'cause that's always the tough part for me.
00:55 I have not seen any of the Godfather movies at all, ever.
00:59 So that's my interesting fact.
01:00 I'm hearing some groans from our listeners already,
01:02 but I've just never seen it.
01:03 I'm sure it's great, haven't seen it.
01:05 How about yourself?
01:06 - So KV Dima, a full-time options trader
01:08 and futures trader recently,
01:10 have been in the industry for about nine years now.
01:13 And then the last two,
01:14 we have also gone into the coaching space
01:16 where we also help individuals get into trading
01:19 and also create wealth through trading.
01:20 A fun fact, I would say a fun fact
01:22 about the company's name as well,
01:24 it is very difficult to spell Elyrian Trading,
01:27 but the Elyrian comes from Europe.
01:29 So I'm originally from Albania.
01:31 Not many people know Albania,
01:32 so I want to put it in the map out there.
01:35 I was born in the village of just 7,000 people.
01:38 So that was literally all the village had,
01:40 came from there, now in New York, here in Brooklyn.
01:43 So happy to be on the podcast with you today.
01:45 - There's probably more than 7,000 people on this block.
01:48 - Probably, probably, yeah.
01:50 - But let's talk about day trading first
01:53 because a lot of people are interested in it,
01:55 but they might be afraid to try it.
01:56 And on my end, when I do day trading,
01:59 that's me messing around in Robin Hood,
02:00 buying like AMC stock or something like that
02:03 and seeing what happens with it, not like real money.
02:05 But how did you get started with day trading?
02:08 You started in this village of 7,000 people
02:10 and now you're a day trader.
02:11 What was that progression like?
02:12 - So I moved into the capital, capital of Albania,
02:15 went to high school there.
02:16 During my years of high school, a cousin of mine,
02:19 he was very, very interested in the online space.
02:22 - So you have cousins here in the studio.
02:23 Is that cousin here?
02:24 - Yep, one of them is right there.
02:26 - All right, shout him out.
02:28 - Here you are.
02:29 - There we go.
02:30 - So he introduced me to a couple of different things,
02:33 trading, e-commerce, coding.
02:35 So I tried a couple of different things
02:38 because I was really, really into math.
02:39 I was like, okay, I like these numbers in finance.
02:42 Let me see if I can do this.
02:43 I wasn't gonna become a math professor,
02:45 seemed too boring to me.
02:46 So no offense to all the math professors out there,
02:49 but I wanted to do something different.
02:51 So I went into trading.
02:53 I was about 14, 15 years old back then.
02:55 And since then, everything has gone into trading
02:58 and the finance journey of mine.
03:01 So started back then learning from others,
03:03 learning from people online because that's all I could do.
03:06 And then I moved to New York when I was 17 on my own.
03:09 So I was like, okay, the community that I had there,
03:13 there was not many people who are doing day trading.
03:16 It's not much in the culture, just like it is in the US,
03:19 maybe here in the US.
03:20 If you have kids, you give them a stock
03:21 as a birthday present or something.
03:23 That wasn't the case back then.
03:24 - I haven't done that yet, so thanks for that.
03:26 - So that wasn't the case back then.
03:28 So I was like, okay, I have to put myself in a position
03:30 where some people could help me
03:33 or show me how I could do this.
03:34 So moved here when I was 17, went to college
03:37 here at Baruch College in New York as well for finance.
03:41 I was like, okay, I like what's going on.
03:42 Let me see if I can make this work.
03:44 In finance, in college,
03:46 graduated with a business degree there.
03:48 And through the years, I was testing a couple
03:50 of different things, right?
03:51 Because there's so many things you can do,
03:52 even just in trading, but also the finance space.
03:55 You hear a lot of things, investment banking,
03:57 sales and trading, wealth management.
03:59 And all of this relates to the finance industry,
04:01 but you have to pick one.
04:03 It's like, okay, let me go with sales and trading.
04:05 And I was like, I don't know anyone in New York, right?
04:08 I just moved here.
04:09 Who's gonna open that door for me, right?
04:11 I networked the hell out of my college years.
04:14 And that's the benefit of being in New York, right?
04:16 There's so many people that you can network with.
04:19 And that's what I did.
04:20 Probably grew my network over 800 people on LinkedIn
04:23 back in college, just those years in college.
04:26 Because I was like, I just need one yes
04:28 that's gonna open the door for me.
04:30 And I got that, landed my first job on Wall Street.
04:33 And that's where I would say everything
04:34 kind of started for me.
04:36 - How'd you get the first yes?
04:37 I mean, you don't have to say the person's name
04:38 if you don't want to, but like,
04:39 what did you say when you reached out to them?
04:41 What was their response?
04:42 What happened next?
04:43 - Basically, I was reaching out to mainly people
04:45 that I could make a connection with.
04:47 It was gonna be Baruch graduates, right?
04:49 Or people from Europe,
04:51 because that's the culture I connected mostly.
04:53 So it was mainly people, Albanians, Polish, Italians, right?
04:58 That maybe were born here or moved like I did,
05:00 that kind of understood the struggles.
05:02 And I would recommend that to everyone
05:04 who's trying to network, find people that you can relate to,
05:08 because those are gonna be the people
05:09 that understand you the most.
05:11 So I networked with a lot of different people.
05:13 Some said yes, some said no.
05:15 Some it was a maybe, right?
05:17 But it took about two years in total,
05:21 just going into coffee chats.
05:22 And I would say, do not be afraid to reach out to someone
05:26 that's gonna be either a managing director,
05:28 a vice president, and so on.
05:30 Even though they are high up there,
05:32 they were in your place once, right?
05:34 They started from somewhere, so they will understand you.
05:36 And especially those will be the people
05:38 that are gonna help you the most,
05:39 because they have that position,
05:41 so they have more reach, of course.
05:43 - Yeah, and that's a good lesson for all our listeners,
05:45 because often there are mentors out there
05:47 who could help us, but you assume,
05:49 well, they're too busy, they're gonna say no.
05:51 Yeah, a lot of them are gonna say no,
05:52 but to your point, you just need one yes.
05:53 So if you just get that out of your mind,
05:55 you can move faster and learn from these individuals.
05:58 But before we started the chat, I looked at your Instagram,
06:01 and I saw this one post that stood out to me.
06:03 You said there's a five stages of a money journey,
06:06 and I wanna unpack that, because for our listeners,
06:08 a lot of them, the first stage is spend money,
06:11 make money, save money, and then they're like,
06:12 all right, I'm done, right?
06:14 So what stages did you, do you mind walking through
06:17 the stages that you defined in this post
06:18 that you had up there?
06:19 - Exactly, so mainly when people think about money,
06:22 they say, I wanna make money.
06:24 That's the first step.
06:25 They don't think about the other four steps,
06:27 and I think that's what stops a lot of people
06:29 from getting what we call financial freedom, right?
06:31 Getting that generational wealth.
06:33 So first step is making money.
06:35 Second step is saving that money,
06:37 because a lot of people, especially when you're first
06:40 starting out making money, when you first get your job,
06:42 your first six figure job, right?
06:43 You're making more money, now you're spending more money.
06:46 So you have to save that money, and a lot of people say,
06:49 okay, it's better to make more money than save it,
06:52 but when you first have just one job,
06:54 that's all you have, right?
06:55 So you should save as much as you can.
06:57 Working a second job, yes, it's gonna be beneficial,
07:00 because now you can save up more,
07:02 but I would say saving at least two to three years
07:05 should give you a good buffer to actually start something,
07:08 and that's the next step where you actually
07:10 start investing, right?
07:11 So you wanna invest that money into different assets, right?
07:14 Either that could be stocks like we do,
07:16 that could be stock, that could be real estate.
07:18 There are a lot of other companies as well out there
07:20 that do, I would say, small-scale real estate.
07:23 So you don't have to have millions and millions
07:24 to invest in real estate.
07:26 There are companies that, I wouldn't call it crowdfunding,
07:29 but it's sort of like that in the space
07:32 where you invest even $500, for example,
07:34 and you have a small, small percentage
07:36 of that real estate there.
07:37 - Are you buying a piece of the Brooklyn Bridge?
07:40 - I wish, I wish.
07:41 So as investors, we have to look at,
07:44 okay, the returns, right?
07:45 With this 500, let's say we have $500.
07:48 What can we do with this, right?
07:49 If I invest this into stocks, how many years
07:51 will it take for me to get 1,000 out of this?
07:54 Or if I invest this into real estate,
07:56 if I invest this in a small business,
07:58 whatever that is, just invest that money.
08:00 Once you invest that money,
08:01 then we have to multiply it, right?
08:03 Because the whole part--
08:04 - We're on stage four now?
08:05 - Yep. - Okay.
08:06 - So stage four, multiply the money that we invested,
08:09 because if we're not multiplying it,
08:11 then it's not really an investment.
08:13 You're not gonna have investments
08:15 that are gonna be right all the time.
08:16 Not every investor is gonna have bad investment.
08:20 Warren Buffett and every one of the big guys
08:22 is gonna have bad investments,
08:24 so don't try to be right all the time.
08:27 But investments that do not work,
08:28 cut them off, then try new ones.
08:30 We are trying to multiply the money
08:32 that we saved from step two,
08:34 so we can maintain it in step five.
08:37 Now, a lot of people make money,
08:38 and we're going back to step one,
08:39 like making more money and spending, right?
08:42 So when you're in step five,
08:43 now you're making money, you have invested it,
08:45 so you have cash flow coming in.
08:48 Can you maintain it?
08:49 We've seen a lot of people,
08:50 either even those that win the lottery, right?
08:52 The Parabola or something,
08:54 they win the lottery and they go bankrupt,
08:56 because they cannot maintain that.
08:58 So it's always good to look at, okay,
09:00 how much money is coming in,
09:01 but also how much money is coming out,
09:04 because that's the only way we can grow.
09:06 And going back to generational wealth, right?
09:09 That's the only way you can pass that wealth
09:11 to the other generations that are coming through, right?
09:14 Kids, grandkids, and so on.
09:15 Just like all the famous people do as well,
09:17 you have basketball players,
09:18 they open multiple businesses, franchises, and so on,
09:21 because they know they can't play basketball forever, right?
09:24 They know they have to pass something
09:25 to their kids and other generations.
09:28 - Let's do this.
09:29 Can you bullet point the five steps,
09:31 just like the step one, step two,
09:32 because I know people are scrambling
09:33 to write it down right now,
09:34 but do you mind just bullet pointing that real quick?
09:36 - So make money, save money, invest the money,
09:40 multiply it, and maintain it.
09:42 - Got it, awesome, thanks.
09:43 So it's funny you mentioned
09:45 even investing a small amount of money, right?
09:47 It doesn't have to be a lot.
09:49 Years ago, I don't know when,
09:50 I started this Acorns account,
09:52 and I think with Acorns,
09:53 some of the money you have in your bank
09:55 gets automatically rounded up,
09:56 and it goes into Acorns, or whatever it is,
09:57 I can't remember,
09:58 but I was looking at my phone the other day,
10:00 I'm like, why do I have this app on my phone?
10:02 Like, what is Acorns?
10:03 I forgot about this.
10:04 I looked, and there was like $5,000 in it
10:07 that's been just building up over the years,
10:09 and I don't think I'm putting that much money into it,
10:11 so it just showed me the value of compound interest
10:14 and actually being patient with your investments,
10:16 whereas the ones that I have in my Robinhood app,
10:18 every day, I'm like, what's going on?
10:20 - You're panicking all the time.
10:21 - Yeah, and it causes, to your point, that panic,
10:24 so it was good to see that,
10:25 but let's keep unpacking this,
10:27 because there are myths about entrepreneurship,
10:29 so it's like, or about investing, sorry,
10:31 like you're gonna go broke, that's one myth,
10:33 you're gonna make a bunch of money,
10:34 that's another myth, potentially,
10:35 but I saw another post of yours that said
10:38 there are three myths about investing.
10:40 Do you mind sharing those and unpacking those as well?
10:42 - Yep, so there are a lot of myths when it comes to trading,
10:45 and I believe a lot of myths happen
10:47 just because there is no barrier to entry.
10:50 Everyone can open a brokerage account
10:52 as long as they're over 18.
10:53 You can pull out your phone, especially these days,
10:56 with all these apps, Acorns, Robinhood,
10:58 all these apps that make it look easy,
11:00 sort of like a game as well,
11:02 but you don't realize it as well,
11:03 like you're putting your hard-earned money into that,
11:05 so it's not really a game,
11:06 even though they make it seem like wages
11:08 because they want people to come in,
11:10 use it, and so on, feel user-friendly as well.
11:12 - So I'm getting played?
11:13 (both laughing)
11:14 - Didn't say that, didn't say that,
11:16 but we have to be careful where we are investing as well,
11:18 because as I said, it is our hard-earned money.
11:20 But going to the myths, I think the biggest myth
11:23 is that it will be easy, right?
11:26 Because especially with the online space,
11:28 everyone now is acting like they're making millions
11:30 and so on, especially during the GameStop, AMC,
11:35 type of period two years ago, right?
11:37 Two or three years ago, it seemed so easy.
11:39 You just buy something and it goes up.
11:41 Especially the market these days,
11:43 it is not gonna be that easy.
11:44 There's a lot of fluctuations,
11:46 and there's a lot of other different factors,
11:48 because right now in the stock market especially,
11:51 you have to be aware of what's happening
11:52 with economics as well,
11:53 what's happening with interest rates,
11:55 what's happening with inflation,
11:57 unemployment rate, and so on.
11:58 If you're not aware of these facts,
12:00 then it's gonna be difficult.
12:01 So one of the myths, you're gonna make money real quick,
12:04 it's gonna be a get-rich-quick scheme,
12:06 it's not gonna be like that.
12:07 I wanna say also, not to panic viewers,
12:09 but 80% to 90% of traders fail over the long run.
12:12 - Damn, okay. (laughs)
12:16 - There's not been an official study made on it,
12:18 but that's kind of what some of the statistics
12:20 that are out there.
12:22 Just because some of them are not patient enough,
12:24 they don't give it enough time, right?
12:25 They try it for a couple of months, and then they quit
12:28 before actually giving it enough time.
12:30 And we give time to everything else.
12:32 You wanna become a doctor, it's gonna take you probably
12:35 the longest amount of years.
12:36 You wanna become a firefighter,
12:38 it's gonna take you a lot of years,
12:40 a lot of exams, practices, and so on.
12:42 So it takes years.
12:43 Trading, it should take months and years as well,
12:46 depending on how fast you are with it.
12:48 So going from the myth one, get-rich-quick,
12:50 the second myth is that it's gonna be easy
12:53 and anyone can do it.
12:54 We just said 80% to 90% of traders fail,
12:57 not everyone can do it.
12:58 Even though you can learn about trading
13:00 and there's a lot of good information out there,
13:02 it also depends on us as individuals, right?
13:05 Because there's a lot of psychology and mindset
13:07 that goes into it that a lot of people forget about it.
13:10 I would say 80% of trading is actually the mindset
13:14 and psychology of it.
13:15 20% is actually learning the charts,
13:16 learning the technicals, learning the financial space,
13:19 but 80% is how you can control yourself.
13:22 If you're not an individual that you can control
13:25 your emotions, you're very hyperactive,
13:27 it's probably not gonna be the best for you.
13:29 Because especially when you put your money on the line there
13:32 now you're panicking, your emotions get in,
13:34 your hands get all sweaty, right?
13:35 So it's not gonna be for you.
13:37 So figure it out, you can give it a try,
13:39 see if it works for you.
13:40 If it doesn't, I wouldn't go too deep into it as well.
13:43 Because as I said, we are risking our own hard money,
13:46 so it's not gonna be the best.
13:49 - And just to be clear, we're talking about day trading,
13:51 not investing in general.
13:52 So the 80, 90% is day traders failing,
13:54 not all investors are--
13:55 - No, and we can talk a little bit about investing as well,
13:58 but yes, that is day trading.
14:00 The third myth is that trading is same as gambling.
14:03 We hear this a lot of times after people try it out,
14:07 they quit, they're like, eh, that was gambling.
14:10 Or if you tell someone, okay, I'm day trading,
14:12 they're gonna be like, oh, that's just gambling,
14:13 leave it alone.
14:14 There's a lot of differences behind them.
14:16 I'm just gonna say one, gambling,
14:18 it is just based on luck.
14:20 Trading, you're actually doing an analysis on it, right?
14:23 Is there risk involved?
14:24 Yes, but just like everything in life,
14:26 there are risks involved everywhere.
14:27 Are we gonna call everything in life risk as well?
14:30 Or gambling?
14:31 No.
14:31 And just to put out the differences with investing,
14:34 you talked a little bit about compounding and all that.
14:37 That's something I recommend everyone do.
14:39 If you can take your trading profits
14:42 and put them into long-term investments,
14:44 that's what we do,
14:45 that's what I recommend my clients do as well,
14:46 because day trading, going back to basketball,
14:49 you can't play basketball forever
14:52 as a professional athlete.
14:53 And trading as well is gonna get exhausting,
14:55 especially when you grow up, grow up, grow up.
14:57 If you keep day trading every day, it is exhausting.
14:59 So you want that passive income there.
15:02 So that's why you use the income from trading,
15:04 put that into long-term assets, and use compounding.
15:07 Everyone can do this.
15:09 Looking at the stock market over the long run,
15:11 it's gonna make you money.
15:12 So looking at a period of 20 to 30 years there,
15:15 it makes you money on average, right?
15:17 If you want to get your money out next year,
15:19 there's a lot of factors that go into it.
15:21 But if you can be patient 10 to 20, 30 years,
15:24 it's much better to keep that compounding there
15:26 and just leave it there.
15:27 Let it sit, don't look at it.
15:29 - Like my $4,000?
15:30 (both laugh)
15:31 - Yeah, don't look at it on a daily basis,
15:33 because it's not gonna change that much, right?
15:35 You want to have the compounding effect.
15:37 And I tell people, at least 10 years,
15:39 you're gonna start to see that compounding effect,
15:41 but 20 is the main spot that you should look at.
15:44 - Got it, so we have to leverage that.
15:45 Strategic patience that I talk about so often.
15:48 And after listening to some of what we said so far
15:51 with 80 to 90% of people failing,
15:53 some people might think it's way too risky to even try this.
15:56 So what would you say to them
15:58 to perhaps change their perspective?
16:00 - I'm gonna say this.
16:01 It will be risky if you go into this without education.
16:04 It will be risky.
16:06 If you start with the right education,
16:07 with the right information,
16:08 and then go and try it out, then yes.
16:11 A couple of different ways you can mitigate that risk
16:13 is one, you start learning the right information.
16:15 And then when you start actually day trading,
16:17 start with what we call paper trading.
16:19 So you're not actually risking your money.
16:22 It is fake money,
16:23 but you're actually stimulating the market.
16:26 So you could do the same trades.
16:28 You could look at the same charts.
16:29 It is just not your money.
16:31 - Whose money is it?
16:31 - It is just fake money.
16:32 - Okay, got it.
16:33 - No, you're not risking anyone's money.
16:34 - Is there a loophole I didn't tell about?
16:36 - It is just fake money.
16:37 It's called like computer, computer.
16:39 - Got it, got it.
16:40 - Just in GTA, for example,
16:42 it's not your hard-earned money there,
16:43 but you're still earning it, right?
16:45 With that capital, you can start testing out the strategies,
16:48 testing out what you have learned.
16:50 But also keep in mind that there's gonna be a difference
16:53 when you actually start with your real money
16:55 because now those emotions kick in.
16:57 But to mitigate those risks,
16:59 definitely start learning the right information first,
17:02 and then also start paper trading.
17:04 And then when you start with a real account,
17:06 always tell people this,
17:08 start with money you can afford to lose.
17:11 Because you wanna see how it feels
17:13 with a real account with your own money.
17:14 And I tell people, especially if you are in the US,
17:16 where there's a lot of opportunities to work,
17:18 two jobs, three jobs, as much as you want to,
17:20 you can make money if you want.
17:22 If you really want to, you can work harder,
17:24 work harder, work harder,
17:25 and put more money into that account.
17:27 But just because you have more money
17:30 doesn't mean that you're gonna become a better trader.
17:32 So it's steps, learning, practicing,
17:36 and then going into real trading.
17:37 With money you can afford to lose first,
17:39 just so those emotions are not as difficult.
17:41 If you can afford to lose $10, then play with that size.
17:45 If you can afford to lose $1,000, play with that size.
17:48 - You know what's interesting,
17:49 I wish I thought of this years ago,
17:51 but maybe you could just drive Uber
17:53 or deliver for DoorDash and take all that money
17:56 and put it into day trading
17:57 or investing in one way or another.
17:58 Because you're like, hey, I have this nine to five
18:00 that covers everything else,
18:01 I'm just driving around right now,
18:02 trying to make some money to experiment with.
18:04 - Especially these days as well,
18:06 where the work from home kind of space is growing a lot.
18:11 So I would say those people have more advantages
18:14 because you can work from home.
18:15 If you don't have a meeting, for example,
18:17 you can mitigate those tasks and be like,
18:19 okay, I'm gonna trade these hours
18:20 because I know I can do my work
18:22 in the next couple of hours.
18:23 So if you're working from home,
18:25 if you're in the West Coast especially,
18:26 so West Coast, the market opens at 6.30 a.m.
18:30 We can talk a little bit about my strategy as well later on,
18:32 but we usually just trade the first one hour
18:34 and a half in the market.
18:36 So you're done by 8 a.m.
18:38 And you can continue doing your work,
18:39 your nine to five, your business, whatever.
18:42 So I would say West Coast has the most benefit.
18:45 I have a lot of clients in the West Coast
18:46 just because of that.
18:48 New York market opens at 9.30,
18:49 so you're already at your nine to five
18:52 if you are in the office.
18:53 But yes, working a part-time job like Uber, DoorDash,
18:56 and so on definitely helps,
18:57 especially having flexible hours.
19:00 - So it's interesting, you're done in like 90 minutes
19:02 and then you're on your way.
19:03 - Some days even 60, some days 60, 90, it will depend.
19:07 But we like to cut it off at 90 minutes
19:09 and that's also kind of like discipline for us as well
19:12 because you're spending a lot of time on the screens,
19:15 it's exhausting, and I tell people as well,
19:18 if you are day trading the morning, so the open,
19:21 it's gonna be a lot of volatility,
19:23 so it's gonna take a lot of energy.
19:25 And I tell people there's a peak that happens
19:27 with our energy as well.
19:29 So you start the morning, you're fresh,
19:30 you just woke up, you have a lot of energy,
19:32 and you're spending one hour and a half in the screen
19:34 without doing anything else,
19:35 you're just looking at the charts up, down, up, down,
19:37 up, down.
19:37 After one hour and a half, you've spent a lot of energy.
19:40 If you don't take a break or just go for a walk,
19:44 eat breakfast or something,
19:46 you're not gonna have that same energy
19:47 or that same focus anymore.
19:49 So even though you think you can take the same trades,
19:51 probably not, you're not gonna be as focused.
19:53 - You've been mentioning it a few times,
19:55 but controlling your emotions as a trader,
19:57 how can one do that when they're seeing their money
19:59 to go up and down during that 90 minute period?
20:01 Like what are some techniques you would recommend?
20:03 - Yep, so first one, as we talked about earlier as well,
20:06 trade with money you can afford to lose.
20:08 That way your emotions are not as much in the game there,
20:11 because you're like, "Oh, I lost $10, I'm fine with it."
20:13 But then if you see negative 1,000 there,
20:16 and you're not comfortable with that
20:17 because probably it took you a week to make that,
20:19 you're not gonna be a good trader,
20:21 because as I said, your emotions kick in,
20:24 you're not feeling the same.
20:25 And a lot of people have this issue
20:27 where they can make a good trading plan pre-market
20:30 before the market opens.
20:32 As soon as the market opens, they shut down.
20:35 They shut down completely because they forget their plan,
20:38 and they do things that they wouldn't have done
20:40 if the market was closed.
20:41 So that kicks in because they are not managing the capital
20:44 they can afford to lose.
20:46 Second thing is try and become more aware
20:50 of your emotions and your psychology.
20:52 So that could be done in different ways,
20:54 meditation, going to the gym,
20:57 doing something that feels good for your health
20:59 and for your body, so that way mentally you're clear.
21:02 You don't have that issue where you focus
21:04 on different things as well,
21:05 especially with your personal life.
21:07 With your personal life,
21:08 if you have things happening externally,
21:10 it will affect your trading, whether you like it or not.
21:13 So controlling those emotions is good to also understand
21:17 when to step out.
21:19 Okay, I have this happen to me, my girlfriend dumped me,
21:23 I'm not gonna trade this week.
21:24 Because you're not there, you're not there even,
21:26 though you can make a good plan, you will not be there.
21:29 I tell people this as well, keep a journal.
21:31 So a journal, just like we do with other things
21:34 in life, keeping a journal, or in business as well,
21:36 do that for trading as well.
21:38 I got in this trade, I lost this amount of money,
21:40 and also have a notes section that you can talk about
21:44 what trade that was, but also how you felt.
21:46 That is key there, how did I feel this week?
21:50 Okay, I was sad because this and this happened.
21:53 And then you can see and understand,
21:55 okay, these weeks I do good,
21:57 these weeks I do bad, and why?
21:59 That's the only way we can become better,
22:01 and then if you wanna take psychology classes for trading,
22:04 there's a lot of services out there as well.
22:05 We don't offer any, I want to do some psychology trading
22:08 as well sometimes, because we're all humans, right?
22:11 There's always gonna be times,
22:12 no matter how many years you trade,
22:14 there's always gonna be times where you have
22:16 a downside scenario where like, okay,
22:18 I don't know what's happening to me, you need to reset.
22:20 And that's probably in life as well, or in other careers,
22:24 you probably need to reset sometime,
22:25 or just to take some time off.
22:27 And I tell people this as well, if you see that
22:29 you are not managing the trades correctly,
22:31 and that your emotions are getting in,
22:33 take a week off, take two weeks off,
22:35 reset, come back in the game.
22:37 - It's interesting because the reason why I wanted
22:39 to talk to you is because I think all entrepreneurs
22:41 should be investing to an extent,
22:42 because your revenue's gonna go up and down, right?
22:45 But if you can invest or do day trading,
22:47 even on days when your main business is failing,
22:50 you can still get wins elsewhere,
22:51 which I think makes sense.
22:52 But some of the advice you're giving
22:54 is just good life skills in general, right?
22:56 I mean, if you're stressed out, back off, and exercise.
22:59 - It's very interesting, I tell people this.
23:02 Trading reveals the real you.
23:04 You can think, okay, I don't care about money,
23:06 I don't care about emotions, I can control myself.
23:09 You start trading, and it's like you're completely naked.
23:13 You really see who you are.
23:15 And I tell people as well, becoming a good trader
23:18 will also help you become better at different things in life
23:21 because as we talked about, managing your emotions,
23:24 controlling yourself, being more patient,
23:26 think about all the areas in life
23:28 this could help you as well.
23:28 - Parenting?
23:30 (both laughing)
23:31 - Yes.
23:32 - That's the first thing that comes to mind for me.
23:33 - Especially the patience part.
23:34 - Yeah, yeah.
23:35 So let's get a little bit tactical.
23:37 I don't want you to give away all your secrets,
23:39 but do you mind sharing some parts of your strategy with us
23:43 as well as your prediction for the future of day trading?
23:46 - Yep, so mainly I focus on risk management.
23:49 I am not those type of traders that I'm gonna tell you,
23:52 okay, I have an 80% win ratio, 90% win ratio.
23:55 It's very difficult to do that.
23:56 Even if you look at the statistics,
23:58 good traders that are making money through the years,
24:00 they have a 60% win ratio.
24:02 And the reason that they have that win ratio
24:04 and they are able to be successful
24:06 is because they manage the risk,
24:07 which is a thing that a lot of people cannot do.
24:11 Because you can have five green days
24:13 and then on the sixth one, lose everything.
24:15 That's not risk management.
24:17 You can have a couple of red days,
24:19 a couple of green days, and still be green.
24:21 What I aim for is 60% win ratio
24:23 and one to two risk to reward.
24:25 So I'm risking $1 to make two.
24:27 If I can get more than that, I'm happy,
24:29 but that's the minimum I would go.
24:31 If I don't see that there, I would not enter the trade.
24:35 So that's where everything starts, for me at least.
24:38 And then the system that we use,
24:40 we mentioned earlier as well,
24:42 we like to trade only the first one hour
24:43 and a half of the market.
24:45 That's where the biggest volatility will be.
24:47 Is it more risky?
24:48 Yes, but there are more returns.
24:50 So if you can learn and prepare for it,
24:53 and it's gonna definitely take some time,
24:56 but that will make you the best returns in the stock market,
24:59 that first one hour and a half of the market.
25:01 In terms of system system,
25:03 I've rarely, rarely used any indicators.
25:05 And talking about the future as well,
25:08 I mainly focus on price action.
25:09 Price action is just understanding the chart.
25:11 So if you understand how to read the chart,
25:13 how to read the volume,
25:14 understanding where buyers can step in,
25:16 sellers can step in, that's all you would need.
25:19 But because I know that this could be a bit difficult
25:21 for people that are just starting out,
25:23 or even for me that I have been in trading for years,
25:27 sometimes I don't have time.
25:28 I don't have time to do my analysis.
25:30 So I was like, okay, how can I automate this process?
25:33 And we're seeing a lot of automation happening,
25:35 not just in the trading space, but overall.
25:37 I'm not gonna be the one that's gonna say,
25:39 okay, I want to leave my trading
25:40 in the hands of robot or an AI.
25:43 I don't think I will be able to do that.
25:44 There are services out there, I just don't believe in them.
25:47 What I've automated is the analysis part.
25:49 So preparing for a trade.
25:52 That's what we've done, we've automated a couple of levels,
25:55 a couple of lines in the chart where you can understand,
25:57 okay, when to get in, when to get out,
26:00 and use those for risk management purposes as well.
26:02 We've been doing this for two years now.
26:05 So we launched our first one a bit two years ago,
26:07 and then our second one this year in March, I believe.
26:11 And it's been helping, one, save time for our clients,
26:14 and also be more accurate with those levels.
26:16 Because now you can feel a little bit more confident, right?
26:20 Because it's something that is proven there.
26:23 And the good thing about these automated systems
26:26 is that they will always, always move with the market.
26:29 So what does that mean?
26:30 If the market changes next year, it will adapt to it.
26:33 And if you don't adapt, you die, right?
26:35 That's the famous quoting, same with trading.
26:38 I like to look at the market, see how it's moving,
26:40 see if I can find different tools
26:42 that will help us find an edge.
26:44 If you're just doing whatever everyone else is doing,
26:46 you're probably not gonna be successful
26:47 because that way everyone would be making money, right?
26:50 And it's trading, it's the stock market.
26:53 There's always gonna be a loser,
26:54 there's always gonna be someone who wins.
26:56 That's how those transactions go.
26:58 If everyone's winning,
26:59 there's not gonna be someone on the other side.
27:01 So the stock market would feel that way.
27:04 That's why I said I don't believe much
27:05 on automating the full system.
27:07 - Yeah, I feel like there are people who are thinking,
27:09 oh, I can use ChatGPT for this, it's gonna be amazing.
27:11 - I tried it, I tried it.
27:13 I told you in the beginning that I was testing
27:15 coding back in high school.
27:17 I still have some of those skills,
27:18 and that's how we were able to do this.
27:19 But I tried ChatGPT,
27:21 it doesn't work as good as people think it does, right?
27:26 Now, if you know coding and then can use ChatGPT,
27:29 it's gonna give you a rough script.
27:31 But if you know how to modify,
27:33 then yes, it's gonna save you a couple of hours or so on.
27:37 But to just use ChatGPT, copy that, use it,
27:40 I wouldn't recommend it, especially trading,
27:42 which it's your money.
27:43 - They make stuff up sometimes, too.
27:45 So I would not trust that with my financial fortune.
27:48 But based on what you're saying,
27:50 I'm sure a lot of our listeners are interested
27:52 in learning more about day trading.
27:54 So where should they start?
27:56 And I know we have a masterclass about that,
27:58 so I'm giving you the green light,
28:00 just please give us all the information on that masterclass.
28:03 - The first thing I tell people is education, right?
28:06 There's a lot of free education online,
28:08 but I tell people this as well.
28:10 When you go on YouTube, it's gonna take you half an hour
28:13 or one hour for you to actually understand,
28:15 was that information the one I was looking for or not?
28:18 So you're just wasting time.
28:19 And I wasted time as well when I first started out.
28:22 I was watching YouTube videos, buying courses and so on,
28:24 just trying to absorb as much information as possible,
28:28 kind of be a sponge there.
28:29 But I was like, I could do this better,
28:31 so that's why we launched a masterclass.
28:33 It's completely free, and it's about roughly 90 minutes,
28:36 and it shows you, okay, the basics, right?
28:39 Where you should start, how to open a brokerage account,
28:42 the basics of stocks and options,
28:44 and also kind of the systems that we use
28:46 and you could use as well.
28:47 That way, you're not wasting time, right?
28:49 Because you know, okay,
28:50 this masterclass is gonna be worth it,
28:51 and also you're getting the information that you need.
28:54 I don't have to spend one hour to tell you what a stock is.
28:57 It's gonna take you 60 seconds.
28:59 If you go, what is a stock on YouTube,
29:01 it's gonna take you an hour probably
29:02 to really understand what it is.
29:04 In a two minute time, it should be enough.
29:06 So I tell people, start with information,
29:09 start with education.
29:10 Be careful what education you're learning,
29:12 because with clients over the years,
29:14 I've also come to a conclusion
29:15 where I had to unlearn some of the information from them,
29:19 right, because you learn something different,
29:21 but then it's completely different.
29:23 Now I have to unlearn that information.
29:25 So if you're starting from zero,
29:26 I would say you're in a much better position
29:28 than someone that has been, you know,
29:30 trying to make it work for a while,
29:31 because you're starting from zero,
29:32 you get the right information,
29:34 and you can start right to it.
29:35 But going to the masterclass,
29:37 as I said, it's completely free.
29:38 It's gonna take you roughly 90 minutes,
29:40 and it's also gonna show you about our system.
29:43 If you are looking to get into the system,
29:46 we're more than happy to get people on calls as well.
29:49 Like if you wanna have a call with me
29:50 or one of my teammates and discuss any opportunities,
29:53 I'm happy to offer that to any of our listeners
29:55 so they can see if it's the right fit for them or not.
29:59 We don't wanna work with people
30:00 who it's not gonna work for.
30:02 If they think it's gonna work for them,
30:04 happy to talk with them and discuss more
30:06 of what's the different ways they could put this to use,
30:09 and also the goal, right, getting that generational wealth
30:11 and that financial freedom.
30:13 - So where can they find this course?
30:14 What's the URL?
30:15 - They can go onto my Instagram, @tradelikekv.
30:18 Simple, tradelikekv, two letters there at the end.
30:21 They can find my masterclass on the link in the bio there.
30:24 - Awesome.
30:25 Last question, I'm gonna make this kind of a tough one.
30:27 What is the book that you recommend the most to other people?
30:30 It can be about anything.
30:31 Doesn't have to be about business or trading.
30:32 Like what book do you recommend the most?
30:34 - I'm gonna recommend the trading one,
30:35 but not the technical one.
30:36 It's gonna be "Trading in the Zone" by Mark Douglas.
30:39 As I said during this podcast as well,
30:42 a lot of trading is focused on psychology.
30:45 "Trading in the Zone" is gonna talk
30:46 about psychology and trading.
30:48 And if you reread it, I've probably read it
30:51 like eight times by now,
30:52 just because it gives more information to light.
30:55 So "Trading in the Zone," if you read that,
30:57 and you also start learning some of the technicals,
30:59 that's really all you need.
31:01 - I'm gonna ask one more tough question, I lied.
31:03 So going back to the person you were in high school, right,
31:06 or actually before high school,
31:07 when you're in this town of 7,000 people
31:09 and just wanting something more out of your life,
31:11 and just wanting to change your circumstances,
31:14 how close is your life now
31:16 to that vision you want to live in?
31:18 And what is next for you?
31:19 What else do you want to accomplish?
31:21 - It's very close, it's very close.
31:23 And I think the biggest benefit to me was I started early.
31:25 So if you're still in high school, college,
31:28 this is the time to start.
31:29 We have clients who are in their 30s, 50s, and 60s,
31:32 and they are welcome to start as well.
31:34 But especially when you're young,
31:36 you have the time and you can take more risks.
31:40 You don't have a family to take care of,
31:41 you don't have kids that are crying all over the place.
31:45 So you have the time and you have the risk.
31:47 The only thing missing is money, the capital.
31:49 But that's something that you're going to make
31:51 as you first go into the job world and start working.
31:54 So you have the time, you have the space, go for it.
31:57 But it's very close to it.
31:58 I would say the next steps are going to real estate,
32:01 probably starting a family as well.
32:03 So that's kind of the next big steps.
32:06 But so far, happy.
32:08 But to everyone out there, just keep on pushing.
32:11 It's not going to be easy at first.
32:12 Do not go into trading thinking,
32:14 I'm going to make money the next month.
32:16 Go with the mentality that I'm not going to make
32:18 any sort of money for the next six to 12 months.
32:21 If you go with that mentality,
32:22 your expectations are much lower.
32:24 So even if you make $100, you're happy.
32:26 But if you go with expectations,
32:28 by the end of the year, I'm going to make a million dollars,
32:30 and then you make 100,000, you're still unsatisfied.
32:34 You made six figures, right?
32:35 You should be happy because it's only taking you an hour,
32:37 an hour and a half a day.
32:39 So go with low expectations and just keep pushing.
32:41 - And that applies to entrepreneurship as well.
32:43 So thanks for this.
32:44 - Definitely applies to entrepreneurship.
32:45 And entrepreneurship, very tied to trading.
32:48 I tell people, treat trading like a business.
32:51 It's going to be a lot of ups and downs.
32:52 You're not going to make money every day.
32:54 It's not a salary.
32:55 So definitely treat it like a business.
32:56 Just like we have KPIs in business,
32:58 we have KPIs in trading.
32:59 And it's going to be slow growth at first,
33:01 but then we have that exponential growth,
33:03 just like businesses have as well
33:06 when you are consistent enough with it.
33:07 - Awesome.
33:08 Well, thanks so much for being on the show.
33:09 I appreciate it.
33:10 - Thanks for the time.
33:11 Thanks for having me here, Terry.
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