The Steady Trade Podcast Season Two Prize Winners! You know how movie sequels are always flashier than the original? Likewise, the Season Two Giveaway of the Steady Trade Podcast features a ton more bells and whistles and even more great prizes than the first season!

In the first season of the Steady Trade Podcast, hosts Tim Bohen and Stephen Johnson focused on the basics of how to become a successful day trader. In Season Two, they built upon this foundation and offered a myriad of other trading resources, including a historical look at the earliest day traders and interviews with some of the hottest rising stars in the trading world today. No matter what the subject of the episode, you as the listener always learn something that will make you a better and more well-rounded trader. But as a more tangible reward, to close the second season, Tim and Stephen once again offered an incredible giveaway.

The prizes. This season, the prizes included:

A MacBook Pro + 3 months of stocks to trade
An Apple TV device + 3 months of stocks to trade
An iPod touch + 3 months of stocks to trade
An Apple Watch + 3 months of stocks to trade
A $100 gift card + 3 months of stocks to trade

A Stephen Johnson pillow case + 3 months of stocks to trade

…and then one incredibly lucky listener won the Grand Prize “Greedy Little Bastard Package”, which included:

A MacBook Pro
An Apple Watch S2
A Stephen Johnson pillow case
A Three Month subscription to Stocks to Trade Pro

The lucky winners. On Tuesday, Dec 12, 2017, the winners were contacted. Per the rule, the winner had to be present to collect the prizes in question. Here’s a roundup of the lucky winners, in order of contact:

1. Kerry: Already a Stocks to Trade Pro member, Kerry is just a part time trader who is figuring things out, but he’s loving the journey. Along with Tim and Stephen, he discusses the art of letting go of trades: what can happen when you get greedy, and the potential pitfalls of holding on to a position for too long. Kerry’s going to up the ante on his trading with his prize suite: he won the MacBook pro and will receive a 3 month extension on his Stocks to Trade membership!

2. Bryan: Based in BC, Bryan began to dabble with stocks while working at a welder. As you’ll learn from his story, he’s the epitome of “keeping it steady”; with time and effort, he’s now become a full time trader. Find out the unexpected way that cannabis stocks have boosted his bottom line! Bryan’s going to be styling with his excellent prizes: an Apple TV device and a 3 month membership to Stocks to Trade.

3. Nathan: Looking for a better quality of life,Nathan began to take up day trading. He’s inspired by the fact that it can allow him to live the lifestyle he wants and make money, and has loved the podcast–particularly Tim and Stephen’s witty banter. Along with the hosts, he discusses risk management and focusing on “green” trades. He’ll have the time of his life (get it?) with his prizes: an Apple watch and a 3 month membership to Stocks to Trade.

4. Fidel: “Do you feel lucky?” starts Stephen when Fidel answers the call. Yes! A new trader, Fidel considers himself in the “learning” phase of his career, and Tim and Stephen discuss why watchful waiting is important for new traders. Fidel learned about the Steady Trade Podcast via Tim Sykes, and has enjoyed Stephen’s videos detailing his trials and errors (lots of errors) as a trader. He’ll be able to listen to the podcast on the go with his brand new iPod Touch, and will also enjoy a 3 month membership to Stocks to Trade.

5. Patrick: This dude is pretty excited to hear from Tim and Stephen: “This is like a dream come true, I can’t believe I’m talking to you right now!” is how he begins the conversation (related: they both like him instantly). Patrick started with a $500 account, which he quickly blew by getting into the market too fast and too aggressively. Having had that experience, he’s ready to back up and actually learn the art of trading along with the Steady Trade Podcast. He can recoup some of his losses with his first prize, a $100 gift card; the second prize, a 3 month membership to Stocks to Trade, will help him find his way as a trader.

6. Tanner: Having only recently joined the Tim Sykes Millionaire Challenge, Tanner is a new trader and eager to learn. While he’s a little down in his accounts at the moment, he’s studying every day and absorbing the lessons from podcasts and videos and DVDs on a daily basis. He’s resolved to make a trading career work, and is lucky in that he has a great support system. Tim and stephen offer some uplifting words and anecdotal stories about how long it took them to be in the green. Then they offer something he can really hold on to: a Stephen Johnson pillow case, the ultimate good luck charm! Tanner can’t wait to cuddle and talk about stocks with pillow-Stephen. Oh, and he also won a 3 month membership to Stocks to Trade!

7. Vernon: Trading isn’t always easy. As Vernon’s tale unfolds, many traders will relate to his story. He often finds himself baffled by the market, and struggles with consistency as a trader. This starts an eye-opening conversation with Tim and Stephen about finding your way as a trader, and how to move forward in the best way possible for future success. His prize, a Stephen Johnson pillow case, will undoubtedly help him on his journey; so will a 3 month membership to Stocks to Trade.

8. Romina: She owes it all to Stephen! Romina credits Stephen as a big source of motivation for her trading. Inspired by his honest, humorous approach, when she saw his videos, she thought “If he can do it I can do it!”. Since July, she’s gotten serious about trading. She’s been studying religiously and is looking forward to investing in the tools that she needs to take her career to the next step. Well, it won’t be as much of an investment as she thought, because happily, she’s this season’s “Greedy Little Bastard” winner! Romina will win the ultimate prize package, including a MacBook Pro, an Apple Watch S2, a Stephen Johnson pillow case, and a Three Month subscription to Stocks to Trade Pro.

Congratulations to the winners! Stay tuned for upcoming episodes of the Steady Trade Podcast, which is graduating from seasons to serial episodes! Starting soon, the podcast will be released weekly, with more great features to come!

What was your favorite part of Season Two?

The post The SteadyTrade Podcast Season Two Prize Winners appeared first on SteadyTrade.com.

Welcome to the season two finale of the Steady Trade Podcast! It’s a great time to reflect on how the podcast has grown and evolved, and to think about what everyone (hosts and listeners alike) has learned.

In the first season, hosts Tim Bohen and Stephen Johnson focused on educating investors on the basics of how to be a day trader. While much of the education was directed toward the new trader, there was a lot of wisdom well worth visiting or revisiting for even trading veterans. In the second season, Tim and Stephen have taken a more elaborate approach, offering a little bit of history with our Jesse Livermore episode, a bit more context about the life of a day trader by interviewing some of the most successful traders in the circuit right now, and we also got into the market mechanics, breaking down pump and dumps and more and explaining how different market scenarios “work”.

In the season two finale, Tim and Stephen take a look at the ten commandments of keeping it steady, which build upon everything you’ve learned so far and offer some important insight for traders. You won’t want to miss this wisdom!

But first, an announcement

Tim and Stephen have loved approaching this podcast in a curated season format. However, now that the show has a strong foundation, it’s going to transition to a more regular maintenance schedule. From now on, instead of featuring blocks of episodes as seasons, the show is switching to a weekly format. This means that there will be a new episode each Monday for you to learn from and enjoy. No season breaks! Eventually, there will be other new features, including live events on Fridays; this is the podcast’s response to listener feedback and requests!  

…and, an optional drinking game (optional)

“I’m better drunk than sober”, says Stephen, referring to his trading (and, you know, everyday) lifestyle. Not to veer into after-school special territory, but this podcast’s recording actually had to be delayed because on the scheduled date for recording, Stephen was, well, wasted. In a roundabout way, this leads to a great idea from the hosts: why not play a drinking game along with the podcast? As long as you’re not driving or operating heavy machinery, take a drink every time Bohen says “ironic” or “ironically”. Have aspirin on hand because you’ll need it in the morning.

The Ten Commandments of Trading Steady

To cap off the second season, Tim and Stephen have organized ten tips for being a successful trader. Keep it steady, baby! You can expect wisdom, drinking games, terrible Austin Powers impersonations, and more, but here’s a sneak peek:

1. Thou Shalt Create a Daily Trading Plan. Are you a gut instinct guy like Stephen, or are you a planner? The hosts offer tips for how to create a plan, breaking it down in simple steps.
2. Thou Shalt Follow Your Daily Trading Plan. Tim and Stephen offer examples of the calamities that can occur when you don’t follow your plan.
3. Thou Shalt Forsake Thine Impulses to Violate Thine Plan. This builds upon the prior two Commandments, and explains how to stick to your plan.
4. Thou Shalt Journal Thine Experiences. It’s true: logging your trading successes and failures can help you advance faster. Stephen is actually a pro at this, and divulges some of his secrets.
5. Thou Shalt Not Neglect Thine Physical and Mental Health. You need to optimize yourself mentally and physically. Tim and Stephen talk about how important this self care is to help you maintain energy and find success.
6. Thou Shalt Be Consistent Each Day. This is particularly applicable for part time traders; Tim and Stephen discuss tips for how to be consistent and why it matters.
7. Thou Shalt Continue to Study and Learn. Learning the basics and calling it good isn’t good enough. Tim and Stephen discuss why committing to a lifetime of learning is the biggest asset to your trading career.
8. Thou Shalt Befriend and Interact With Other Traders. No trader is an island. By having a buddy, a mentor, a group, or all of the above can really fast forward your career; Tim and Stephen discuss specific examples of how teamwork can improve your income.
9. Thou Shalt Know Thine Tools and Optimizeth Them. Tim and Stephen talk about how to use the tools in front of you. This includes literal tools such as your trading platform, and how to learn from your experiences and turn them into “tools” to build future success.
10. Thou Shalt Keep it Steady. You can get started as a trader pretty easily and quickly. But does that mean you should start spending money right away? Tim and Stephen discuss why the “Steady” approach is best.

Win big!

Don’t think we’re leaving you empty handed this season! Season two’s giveaway offerings include incredible prizes such as a Stephen Johnson pillowcase (and, you know, other things like a Macbook pro, an Apple TV device, an iPod touch, an Apple Watch, a $100 gift card, and 3 months of Stocks to Trade). Just like in Season One, there’s also another “Greedy Little Bastard” prize, which includes all of the aforementioned items!

Visit our giveaway page for more information!

The post The Ten Commandments of Trading Steady appeared first on SteadyTrade.com.

One of the biggest goals of the Steady Trade Podcast is to help you realize your trading goals. We want take you from wherever you currently are in trading, whether you’re a newbie or an investor who wants to change to the day trading track, to where it is you want to ultimately go in your career. As part of this mission, we occasionally bring in guests who have found success in trading to help inspire you to pursue your own goals.

As success stories go, it doesn’t get much more inspiring than Super Trader Steven Dux . Still in his early twenties, Super Trader Steven Dux has already earned $1.3 million trading penny stocks in less than two years. In this episode of the podcast, hosts Tim Bohen and Stephen Johnson interview this trading phenom about his meteoric rise in the penny stock world, how he did it, what he still needs to learn, and what keeps him going.

A disclaimer

Remember: this is the Steady Trade Podcast for a reason. We try to focus on ways to find consistent, steady success in trading. As such, it’s important to realize that every journey is different. When listening to interviews like this, do be inspired, but try not to compare yourself to the trader in question. There are all sorts of variables involved in every trader’s process and success, and you need to keep your own expectations realistic.

Stephen Dux’s path: humble beginnings

Stephen Dux began his trading path began in early 2016, when he started out trading ETFs with a friend. After a few small wins, he decided that he could make some serious money if he got his act together. After going down the Google wormhole, he came across Tim Sykes on social media. He was initially skeptical that Tim’s offerings were a scheme, but after buying a DVD and checking things out, he became convinced that trading penny stocks was worth a try. He was intrigued by the volatility and action of trading penny stocks. The fact that you can make a lot of money in a little amount of time didn’t hurt, either.

Figuring it out

Stephen Dux loves strategy games, and he began to look at trading penny stocks from a game player point of view. The psychology if the stock market is similar in many ways to strategy, and it “clicked” pretty fast for him. Early on, as he puts it, “I got lucky”. In spite of poor risk management, he began to make gains pretty quickly; his first big profit was an incredible $12,000. Yeah, hosts Tim and Stephen (Johnson) are willing to admit that they’re a little jealous of that one.

Shaping a strategy

Not to make you feel like a slacker or anything, but in addition to being a superstar trader, Stephen Dux is also a student. While studying engineering and accounting doesn’t necessarily inform his trades directly, he has been able to apply some of the principles of his education to trading. In particular, one of the key aspects of his approach to trading is looking at it from a strategic standpoint. In the podcast, he talks about how he tracks different sectors and catalysts to decide how and when to trade. As Stephen Dux acknowledges, he’s not the best at managing risk, so having a strategy is very important for him, and has been a key factor in his success.

The king of the spreadsheet

Another big factor in Stephen Dux’s success is his incredible spreadsheet system. Among certain circles, Dux is known as the “king of the spreadsheet”. He maintains thousands of spreadsheets which help him track patterns, which allows him to plot strategies and execute trades. As the interview unfolds, you’ll begin to realize how intentional his methods are, and how his success is very much due to careful monitoring and planning versus some random fluke trades.

Moving forward

After spending time talking about how Super Trader Stephen Dux has attained and is maintaining his trading success, the conversation shifts to future plans. And Stephen has some incredible things in the pipeline.

For instance, those spreadsheets? Stephen would rather not deal with those thousands of spreadsheets forever, and so he’s working on engineering an AI system that can pore through his research and execute trades for him. Host Stephen Johnson may not be able to help with the algorithm for such a program, but he’s quick to create a name for it: the Duxinator.

Stephen Dux has also been working on developing DVDs of his own to educate and inspire new traders. In the podcast, Dux and hosts Tim and Stephen discuss what viewers can hope to learn from the lessons.

Win big!

Don’t forget: there’s a giveaway in the works! Season two’s giveaway offerings include incredible prizes such as a Stephen Johnson pillowcase (and, you know, other things like a Macbook pro, an Apple TV device, an iPod touch, an Apple Watch, a $100 gift card, and 3 months of Stocks to Trade). Just like in Season One, there’s also another “Greedy Little Bastard” prize, which includes all of the aforementioned items!

Visit our giveaway page for more information, and stay tuned for Episode 6!

The post Super Trader Steven Dux appeared first on SteadyTrade.com.

In Season One of the Steady Trade Podcast, hosts Tim Bohen and Stephen Johnson offered a foundational education on important things that every new trader needs to know. In Season Two, they are continuing to build on that education by teaching you what you need to do to springboard from education to actual trading.

One of the main things you’ll need to successfully transition from student to day trader is a strong understanding and mastery of patterns. While to a certain degree this is something you’ll learn over time, there are several key patterns that repeat themselves so frequently that you need to know about them. One such pattern, and the subject of Episode Four, is the pump and dump.

What is a pump and dump?

This jitter-inducing term is thrown around a lot in trading. But what exactly does it mean?

In essence, a pump and dump is a controlled inflation of a stock’s price. Typically, it’s engineered by individuals who have access to a lot of the stock and want to raise its value. However, the actual production will likely involve many players; it might be initiated by a shareholder, but then executed by promoters.

They will knowingly inflate stock prices through various promotional efforts (the “pump”). Once the stock’s value has been raised considerably, the aforementioned individuals unload the stock rapidly and in great quantity, earning profits for themselves but overall lowering the value of the stock for the others who bought in and helped raise the price (the “dump”).

The evolution of pump and dumps.

When many people think of the pump and dump scheme, they think of a boiler room format, a la The Wolf of Wall Street. However, pump and dumps aren’t always quite so blatant, nor are they conducted by smooth-talking salesmen in dimly lit boiler rooms.

In the 90s, pump and dumps migrated to the internet. Emails, chat rooms, online forums, and hard copy mailers would be used to inflate the prices. Today, pump and dump inflation efforts might be conducted via internet channels and social media channels. Because of this, it’s not always easy to instantly pinpoint what is and what is not a pump and dump.

Identifying pump and dumps.

Identifying pump and dumps isn’t always as easy as it sounds.Promoters have gotten smart to the fact that a big and rapid spike is a red flag. As such, these days, many pump and dumps are engineered to “walk” or have a more gradual price raise. Basically, they want to keep people in until they are ready to sell.

In the episode, Tim and Stephen offer some specific tips on how to identify pump and dumps, and offer advice on how they have changed over the years. They also offer tips for how to get an edge on it so that you can begin to follow a successful model for trading pump and dumps and formulating a plan.

Using pump and dumps to your advantage.

In the podcast, Tim and Stephen talk about successful traders like Tim Grittani and Tim Sykes have used pump and dumps to their advantage. They discuss specific approaches and ways in which these traders have gained an edge which has helped pump and dumps make them money.

Do you want to use pump and dumps to make money? Time, technique, and lots of research are necessary to make it work. Tim and Stephen discuss the pros and cons of working with pump and dumps and offer some great advice for how you, as a trader, can consider if this is the right direction for you.  

Remembering your foundation.

Tim passes on a saying that “Markets can stay irrational longer than you can stay solvent.” Remember: you can be right about identifying a pump and dump. However, unless you get in at the right time, you can lose a lot of money. By remembering your foundation and following Tim and Stephen’s tips to figure out a specific plan, you can reduce the risk that comes with investing in pump and dumps.

Win big!

A new season of the Steady Trade Podcast means an all-new giveaway, including a Stephen Johnson pillowcase (and, you know, other things like a Macbook pro, an Apple TV device, an iPod touch, an Apple Watch, a $100 gift card, and 3 months of Stocks to Trade). Just like in Season One, there’s also another “Greedy Little Bastard” prize, which includes all of the aforementioned items!

Visit our giveaway page for more information, and stay tuned for Episode 5!

The post The Strange Truth about Pump and Dumps appeared first on SteadyTrade.com.

Episode Two of the Steady Trade Podcast features Tim and Stephen interview with trading phenom Roland Wolf. The interview was too good to cut short but too long to share in a single episode, so we broke it into two parts.

In Part One of the episode, Tim, Stephen, and Roland speak frankly and extensively about Roland’s ascent to trading success, critiquing and commenting on his progress and offering great suggestions for how new traders can use his experiences to their advantage.

In Part Two of the episode, the three traders delve deeper into Roland’s career advancement and how he became a mover and shaker in the world of day trading, and also address some powerful lessons he’s learned so far in his career.

The Italian Job: a pivotal career moment

Bromance, career development, and advancement. For Roland Wolf, a trip to Italy for a trading summit hosted by Tim Sykes proved pivotal in his career. For one thing, he was surrounded by traders, which was a new experience. Not only was he able to meet one of his trading idols, but also to connect with a lot of like-minded traders.

Trading can be a fairly isolating profession, and it can be difficult to truly connect with others when you only know them by a screen name. It was also in Italy that Stephen and Roland began what can only be called a storied bromance!

In the interview, all three traders discuss one of the big advantages of going to conferences and the power of connection with other traders. More than mere networking, they are like a vacation, therapy session, and career boost all in one!

Trading lessons you can’t buy

As the interview progresses, Roland shares with Tim and Stephen some of the lessons he’s learned so far as a trader. Among them:

• The importance of studying. For Roland, studying didn’t come quickly or naturally. This is partially because he’s a busy guy: he has a wife and children, and when he started trading, he even had a full time job! But now, he sees it as a vital part of his process because he’s seen the results it delivers. He’ll literally wake up at 4:30 in the morning to fit in studying and research time. Even if you have to get creative with your timing and end up tired for a while, it’s worth taking the time to study.
• It’s not luck. At first, Roland thought it was luck that kept him winning in the market. He no longer believes that. Yes, he has a talent for picking great stocks, but it’s only been through augmenting that natural talent with education and research that he’s really been able to use it to his reliable advantage. In the episode, he shares his thoughts on talent versus the results delivered by consistent screen time.
• It’s not just about money. To really gain success as a trader, you have to develop a passion for the process. Anyone can work to make money in the short term, but as Tim Bohen says, “Are you willing to sit at that effing computer for 12 hours per day?”. Adds Roland, “If you don’t really enjoy it and you’re not passionate about it, what’s the point?”.

Roland shares his secrets

To finish out the episode, Tim and Stephen get down to nuts and bolts. They quiz Roland on his methods, including what indicators that he looks for.

They also get real, talking about the best and worst trades Roland ever made. Yeah, he’s had a few: with win rate of about 64 percent, he acts as proof positive that even hotshot traders don’t get it right all of the time. However, as the traders discuss, this doesn’t mean you can’t be profitable.

They also discuss Roland’s most reliable setups and how he approaches a trade. New traders will benefit from his universal tips that can be employed by traders at any level.

Moving forward

As the interview comes to a close, the traders discuss Roland’s next steps. At the moment, he’s beginning to contemplate short selling, but he’s in no big rush to rock the boat. Ultimately, much of his success has been thanks to his contrarian tendencies, and so he’s cautious in the bull market. Ultimately, he wants to be consistent and safe in his trading.

They finish out with Roland sharing some wisdom and goals for the road, and there may or may not be a fade-out montage with Stephen and Roland double-dutch jump roping into the sunset as the interview comes to a close.

Win big!

A new season of the Steady Trade Podcast means an all-new giveaway! Visit our giveaway page for more information!

The post Super Trader Roland Wolf Part 2 appeared first on SteadyTrade.com.

Many of our listeners are aspiring or new traders. While learning the basics of trading is important for those who are just getting started, it can be difficult to figure out how to apply this knowledge. As such, it can be extremely inspiring and helpful to learn by hearing the stories and experiences of traders who are “in the field” so to speak.

Learning from the anecdotal experiences of others can be a great way to give you, as a new trader, ideas for how to apply the trading basics you learned in Season One of the Steady Trade Podcast. In Season Two, Tim and Stephen will be offering more interviews with established investors to help inspire your continued growth as a day trader.

Meet Roland Wolf.

In Episode 2, Tim and Stephen conduct a two-part interview an incredible up and coming trader who is regularly netting over $1,000 per day: Roland Wolf. In the trading world, Roland is one of the fastest-advancing traders Tim has ever seen, having turned $4,000 into roughly $300,000 in profits in just a few short years. Just in case you didn’t already hate him, he’s also handsome, smart, charismatic, and well-spoken: a quadruple threat!

Prior to pursuing day trading, Roland was a professional soccer player who regularly traveled to far flung destinations like South America and Europe. After suffering a terrible ankle injury in Croatia, he suddenly found himself 24 years old and rudderless, without direction and without a career. Looking for investment opportunities led him to the work of Tim Sykes. After reading through Tim Sykes’ free e-guide to trading penny stocks, he decided to give it a go.

Getting started

When Roland started his trading career, he didn’t really know what he was doing. He was overwhelmed, and felt that he couldn’t get his finger on the pulse. In essence, he found himself chasing leads: chasing the scans, chasing alerts, chasing leads, and stumbling for direction. As host Tim says, “it’s like stepping across a minefield”.

In the interview, Tim and Stephen discuss with Roland how this time was painful yet important: it taught him many of the things that clearly were not going to work, and he was able to shift his mindset to focus on what was going to make him rich.

Gaining traction.

As the interview progresses, you’ll learn how Roland progressed from being directionless to getting himself in gear. He recognized that on an intuitive level, he was good at choosing stocks. From there, he began to maximize his trades by pursuing what was working for him. Being under PDT at the time, his situation and budget made working with overnight holds his bread and butter.

Working this way, he was able to gain a strong sense of consistency and to really begin to learn how the market worked. In retrospect, working small was a good thing: it allowed him to refine his work and it kept him from doing too much too soon. As Stephen adds, this echoes one of the best pieces of advice he received when he was starting out: “just find one or two setups and focus on them”.

Breaking through

So what was the tipping point that took Roland from figuring things out to big time success? In a word, education. When Roland first started, he was in essence winging it. Sure, he was watching Tim Sykes’ informational videos, but he wasn’t really putting a lot of emphasis on learning the mechanics of the market. After several rude awakenings (including a would-be $5,000 day that fizzled into a $200 payout), Roland realized that to really take his trading to the next level, he needed to invest in his education.

It was this education that helped Roland really begin to make money. He’d always gone against the grain with his trading, but now, he was able to do this in an actual, intentional way. In the interview, Tim and Stephen discuss the importance of learning the rules before you break them.

Success

As part one of the interview draws to a close, Tim and Stephen begin to focus on analyzing Roland’s success. In many ways, Roland’s success has come from focusing less on the actual amounts he’s earning and more on his performance as a trader. Ultimately, this is what will set him up for long term success.

Roland also shares some of his personal secrets to success, including how to find an edge, his research style, why he’s wary of breakouts, and how he maintains his cool. He also shares tips for his quick, under 5 minute process to determine whether or not a stock is worthwhile!

Stay tuned for part 2 of this incredible interview, where Tim, Stephen, and Roland continue to talk shop and offer actionable advice for new and aspiring traders.

Win big!

A new season of the Steady Trade Podcast means an all-new giveaway! Visit our giveaway page for more information!

The post Super Trader Roland Wolf Part 1 appeared first on SteadyTrade.com.

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Sometimes you’ve got to look to the past before you can bravely forge into the future. With that in mind, our new collection of episodes commences by hopping in a time machine and going back in time: all the way back to the turn of the 19th century (yes, that’s the 1800s-1900s) to explore the life and work of the man who is considered the very first day trader: Jesse Livermore.

While times have changed quite dramatically since Livermore’s heyday, there are an unbelievable amount of lessons that we can still learn today from his work. In the episode, Tim and Stephen explore those lessons and how they can inform your work as a trader in the modern era.

Who was Jesse Livermore?

Jesse Livermore, who was eventually nicknamed “Boy Plunger” owing to his tendency to go heavy on the short selling side of things and pull big profits, got his start as a trader in his early teens. Today, we have StocksToTrade and many other resources at our fingertips. However, in the late 1800s, things were a little different. Jesse’s first job was as a runner at a brokerage firm: he would literally confer with the person who was receiving stock information via telegraph, and write the information on a large board for investors to view.

Without a full understanding of what stocks even were, Jesse began to notice trends in the numbers he was posting. Without realizing it, he was doing intuitively what day traders are still attempting to master today: noticing and identifying and following trends. Eventually, he decided to start betting.

Bucket Shops

There was no WIFI in the 1800s (the horror!). As such, the way that investors could trade was a little different. Lacking a position in a brokerage firm, speculators would actually gamble on stocks in establishments known as Bucket Shops.

A Bucket Shop was really a type of gambling establishment, where individuals would bet on stock prices, but did not actually buy or sell the stock. Basically, you’d put money in the “bucket” and if the stock performed as you bet it would, you’d receive a payoff. It was kind of like betting on horses or dogs at the track, but with stocks.

While a Bucket Shop could be seen as a predecessor of the “Boiler Room” made so famous in The Wolf of Wall Street, they differed in that the bets didn’t actually affect the price of the stock.

It was in these Bucket Shops that Livermore began his career. He was rewarded: by the age of 15, he had made his first thousand dollars. A thousand dollars would be a cash cow to a teenager today, so imagine how incredible this would have been circa 1900!

In the episode, Tim and Stephen discuss the progression of Livermore’s career and how over time he would have a big effect on the market and would gain (and lose) millions of dollars over time.

Key lessons from Jesse Livermore

After discussing Jesse Livermore’s fascinating story, Tim and Stephen delve into the lessons that can be learned from his career. Here are some of the key lessons we can learn:

1. The money is real: Perhaps due to the fact that he gained success so early, Jesse had a problem with perceiving the money he traded as being “real”. Actually, this remains a problem for traders today; Tim and Stephen discuss how to avoid this common trading mistake.
2. Do your research: Jesse Livermore states that when he was certain that a stock would go up or down, it typically performed as he predicted. The problem is that this certainty doesn’t come without proper research. In the episode, Tim and Stephen offer tips for psychologically and practically preparing yourself for trades by doing intelligent research.
3. The trend is your friend. Jesse Livermore learned the hard way that if he tried to fight the trend, for instance by shorting a stock that was trending up, he would lose. He did in fact lose a lot of money during his career and was even borderline homeless at times. In discussing this idea, Tim and Stephen offer specific tips on how to go with the flow of a stock.
4. Be your own trader. You can learn from every source possible, and should, but ultimately, to be successful as a trader, you need to take the time to learn the rules and develop your own style. Jesse didn’t depend on anyone else’s tips and was very much an independent trader. Tim and Stephen delve into this topic, offering tips for striking the perfect balance between consulting sources and educating yourself but also making your own decisions when it comes to stocks.
5. History rhymes. History doesn’t repeat itself exactly, but as Tim often says, it “rhymes”. Basically, you can learn from your own past as a trader and let it inform your future. This is a lesson that Jesse Livermore learned, and one that Tim and Stephen discuss in greater detail in the episode, offering constructive tips for improving your trading by keeping records.

Incorporating Jesse Livermore’s lessons

Even though Jesse Livermore is long gone and traded in a different era, there are things that hold true even after all of these years and the technological developments that have occurred since his time. Stocks change, technology changes, and there are new developments all the time. But human nature and the market don’t totally change. Therefore these lessons still ring true and can very much improve your trading today.

Win big!

A new season of the SteadyTrade Podcast means all new prizes! Stay tuned for our official announcement about the Season Two Mega-Giveaway . Also, stay tuned for the next episode, where we will feature an inspiring trader interview!

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