Two Millionaire Day Traders Share Their Secrets

all my friends are good losers like it's it's good to surround yourself with good news you know it's true i mean if you're a good loser you're going to be successful yeah it's very true welcome back everyone to be the trader today we have a very very different episode we're out here obviously on the lake got nate from investors underground cody aka ostok trader if you're not sure where they are you need to go check them out on the previous episodes they've been on the show we've talked about their background but we're at lake today because nate bought this white board and we went to try it out so you need to check this out you're basically flying so i'm going to share some of the crashes that we did when we're trying to get on it so throughout the show so that way if you're curious what it looked like when we ate it you'll see it but to get this thing going really i just want to bring up the topic of just as simple as big picture topics like when i say a word whatever comes to your mind first to start talking about whether it was something that was a struggle whether it was something that you really loved whatever it is start there so the word of taking losses part of the game it's gonna happen yeah yeah part of it part of the game that's probably best way i would say it right there accept it i tweeted something maybe like last week and like all my friends are good losers like it's it's good to surround yourself with good news you know it's true i mean if you're a good loser you're going to be successful yeah it's very true why why is that though i think it's a mentality thing i don't know it's like if you can accept that you can lose life is a little bit easier you know in a weird way what separates the people that can versus you know the ones that want versus the ones that haven't can't won't is you know the only thing that kind of separates you is being able to control those losses and uh you know as long as you can control the laws finding good trades is not the issue it's what you do when you're wrong that's going to set you apart that's going to i mean my journey there's a lot of ups and then down ups and then downs and i was a very very good trader but it was always like that one trade that would bring me right back so it's like okay i'm a mediocre trader really really really good mediocre trader so being able to control those you're able to see a much different kind of p l curve by minimizing those laws that makes sense what would you say when i say the word discipline gotta have it yeah say it kind of goes hand in hand with the losses like i feel like if you can accept losses you're probably pretty disciplined it's hard for me to trust anybody who's always one during their life too as well it's like if you've never had a struggle in your life it kind of sets you on a different field as everybody else where you know i respect people more that have lost during their life because yeah it just makes you stronger you know in a way i think discipline is is you don't even have to focus just on losses right it could be in your life eating right training right and you know like i've talked about it helps trading right so the more discipline that you have in your life not just in trading it's all going to kind of trickle down and and help you as a trader so you do believe that if you're if you can be disciplined in some area it will trickle down or help you in other areas absolutely definitely more disciplined more consistent less variables uh because you need to be able to come each day kind of prepared and not have to deal with this or that or like all these different things i mean if you're rushing to the desk and you get into a trade you're just not ready for it same thing you know one of uh we went to the super bowl a couple years ago and one of the best traders i know didn't trade monday it's like man there's some good setups i'm going to trade i ended up losing that day and it's like i went to bed at 4am you know it's like what am i even doing and i wasn't prepared i didn't have good discipline and here he is he's just like sleeping like a baby still not losing any money yeah relaxing living his life because he planned on he basically prepared himself right too yeah i'm not doing anything tomorrow so that just makes me think about the next word preparation most important yeah like what do you mean like what's most important about by prepping what what part specifically everything typically i think even if even if you don't trade anything that you're prepared for you're still prepared because you have an idea of what the market cycle is doing what's hot what's working what's not um and and the more you prepare the more look you might not be preparing for tomorrow but when you see that come in three days four days next week you're already there you're already prepared so that's why they're consistent going through you know scans and like cody has this laundry list of different sectors and when he starts to see maybe one or two um you know kind of start to go he's prepared he brings up that list and he's like all right well i'm going to buy all these when nobody cares about them because these ones are starting to lead and they're going to care about them in a week or two yeah yeah or even a few days in this market sometimes but even to play on that point like i haven't traded a whole lot the last six months so i'm not prepared i don't know what really the market cares about you know so it even takes like a week two weeks to just be like all right this is this is what the market cares about like i'm so out of tune right now because it's taking like the first break in years that i know he hasn't so yeah i'll give you another example too and i'm just kind of like i'm gonna live life right now and then i'll focus again it's important otherwise you're never gonna do it and you know my a good buddy of mine held her um you know he was he's a general contractor and he had been doing you know okay and then covet hit and you know nobody wants you in their home you're not gonna be doing any general contractor work and his trading just took on another lift and it's he's more prepared seeing the screen time you know being actually at the desk and just that general sense of preparedness versus all right i'm going to trade real quick and then i got to go and do this i'm going to do this then i got to go do that no you're actually there you're seeing it you're absorbing it and it may not seem like a big deal or a big big thing but you're taking on a lot more information than you realize it's a huge and you are applying it to your decisions that you make because the market evolves over time and like little changes here and there and then if you don't pick up on those then like your setup may have adjusted a little bit it still works but it just changed a little bit and you might be trading improperly if you're not coming to the market with a full scope exactly he's been finishing up a project right now to give you that the same example and so he's been a little it's he's done on monday and he's pretty pumped about it but he's been kind of yeah you know the last couple weeks and you know he's excited to get back to the screen time because it does it 100 affects you and you're not as prepared as you think you are when you actually see see the screen and you're part of it yeah but what about like because i know you like you mentioned earlier that you like to take time off and you like to take breaks right yeah so when you come back how are you coming back are you just jumping in ready to go or no even i've noticed even like the few weeks that i've come back where i'm like i'm gonna be at home for two weeks it took me almost the entire two weeks to be like i know what the market kind of cares about now and i'm leaving so it's like the next the last like three days of the week it's like do i really want to pay attention because if i put a bunch of positions on i'm just gonna be like what am i why am i doing this because i'm gonna be gone for a week yeah so it for me it takes at least a week uh like the first day i came back from i remember where it was uh probably somewhere in mexico like the first two days i don't think i took a single trade i just watched to see what the market cared about what news events lead moves and absorbing yeah like you just have to digest what like for me a lot of it it's news kind of related stuff i found that like if i see some headline and the market reacts or doesn't react it kind of gives me an idea right nobody cares about this nobody cares about whatever this is going on or you know whatever it's related to it kind of gives me a clue as market doesn't want to take any risk in that department yeah just move on to the thing that is actually moving i feel like you read more than you trade sometimes like you read it i mean realistically i mean look at everything like the nfts or the uh the shroom stocks whatever all that kind of stuff it's just like two three years ago like we were talking last night like no one cares and he's like no i'm not crazy i promise and now we're like damn he was early and then he just nailed it yeah it's weird because i i think that as you can as you get older and you progress i think i think you just figure out what you're good at and you just ignore all the stuff that you're not like biotechs i am horrible at them i don't i have no idea what drives the move and maybe that'll be something i focus on later but on that note too you suck at summers yeah exactly summers i'm horrible every p l curve has always been this huge clothes yeah yeah it's weird every end of the year but it's like i'm tech focused so like i've always loved technology i'll buy the coolest drone i'll buy just to test stuff out yeah it's the same probably the same reason i got into nfts i wanted to just test out that's a crazy drone by the way yeah and that drone is super fun we'll link it below later lock in on a target it just follows you yeah so it's an a it's an ai drone that follows you like a target that you can you know it's pretty sweet the footage is amazing and you'll be shocked we'll probably post some clips of it what's interesting is that you said you come back and maybe two full days just watch were you always that way or or how did that come up i think it was just a progression because previous years it was i'm here to make money like i always treat it as like a job like once the clock started i got to try to make money but once you have like such a big padding and i know nate's talked about this over and over again in the past this you just kind of treat it a little bit different like do i really need to take a trade at 9 30 or do i want to you know well for me it's 6 30 7 30 but you know do i want to go have breakfast or something but i'm almost always there for the open but i almost never take a trade in the first 10 minutes unless specifically now it's an option i think the last like two three years you've gotten a lot better listening to like the warning shots yeah like before you have a 118 positions maybe it'll be good maybe it won't i know it's not good and then you give back a good portion but i feel like every time you get that first warning shot you're like you know what screw it yeah i'm out pretty much and then you take off time and it was probably the best decision and you know before you try to fight it you're like all right yeah like even the last one like i just it's almost like you wear yourself out too if you did fight it and then when a good time comes you're kind of like mentally exhausted so it's just like tougher to go yeah and i think my wife can attribute this i think it's probably my mind probably just gets sick of listening to the same one-hour mix for eight hours a day for like three months straight and it's true like i'll listen to the same one hour youtube mix of music the entire day and then i'll do it again the next day the next day until i get sick of it and sometimes the last three months what about risk for me i would say i'm very risk averse but when i see the right things it's peddled in the middle and i'll just i'll probably start buying more things than i should and i think even nate knows that where like if i see one thing move i'll buy like 20 different stocks related to it and whether i'm right or not you know i'd rather kind of be first because then it's then your risk is it's kind of set at that bottom level because if nobody's touched it for like two years i'm basically buying the bottom no matter what and if it doesn't move i know you know you take on a position with a set risk you kind of jump in all right i'm willing to lose 20 30 50 whatever yeah you start with that and then if it starts to go you're able to scale a lot faster than somebody else because i'm like oh this is right or i'm wrong i'll just take it off but that's kind of how i've just evolved over the years and i think it takes a lot longer than people think to figure this out just because everybody's different but you're never really going to get it in the first like a year and a half too some people might like prodigies i guess you'd call them but i think for most people you gotta just do it for like five years yeah but even even prodigy even it yeah i mean at some point you gotta get smoked yeah i mean you have to get whacked yeah at least a couple times 100 and and there's always that next one that next potential i mean obviously it's about minimizing them but you have to to understand how you felt at that time so that next time you get that feeling you know what to do you know what to do you know most of it most of the time or the most the reason people blow up is because it's like ah you're never experiencing to see what it does mode like we talk about all the time but like you haven't experienced it and like how much higher can it go you know all those questions a lot higher exactly so another five times ten times you have to experience that it's just part of the game and i mean every single great trader i've known has gotten smoked in a bad way so you know if it hasn't happened yet i mean congratulations but at some point it makes you a better trader and yeah you know when you're facing i think it helps with risk discipline losses you know you you never want to go back there um and and you get comfortable taking them and you can write down all the rules that you want for risk but until you experience it it doesn't matter yeah because it's like that's like hardcoded in your brain and your emotions risk is like risk is an easy thing to control uh if you have a problem with it like for me you know if if i was a stubborn trader like i i'm not anymore i mean knock on there's no wood here there's a rock you're standing on it that's not that's that's fake one but um but uh you can put it back stop you know so you know there's a there's a number that's gonna keep you in the game there's a number that's gonna keep you uh comfortable to come back the next day you know and if you're gonna take a a month or a week two months or a quarter whatever a summer yeah summer's worth of work back in one trade yeah you know you can prevent that by locking yourself up like max stop on money and then you can't trade the ticker the rest of the day and that's a great thing to do because it's those ones that get out of hand you know when you don't respect your risk and then you're okay i'm i'm here now like and then you start getting all emotional you start you know you don't really have a game plan and then they rock it and so if you can just cut that out if i did that with all the biggest losses i've had i mean i'd probably better better sit more cash you know what about though when i what about emotions control them yeah this is the only word that came to mind was control them like what do you mean when you think of that when you say control them like cause some people would say like you can't control your emotions what do you mean i don't think you can carry any emotions that you've had like in the last 24 hours into the next day you know i think that like if you've had you got an argument with your spouse or your girlfriend or whatever like if you take that into your the computer and the setup and you're just going to trade horribly because that's going to be all that's on your mind so it's the best to just avoid for at least for me if i'm ever in that situation which is very rare that i just i won't just won't trade because i i've learned from previous stuff in life to just don't let emotions control you because that's the worst result you're gonna have trading is a little weird though because it does like play into regular life too right and it's like yeah you know we're going on vacation like nate are you excited like you haven't even like the more highs and the more lows you have the worse of a trader you're gonna the more you know aggressive the wrong time all these different things are gonna come in you're gonna be a worse trader so as you control those it also comes into you know your daily life which you kind of have to figure out too yeah because it's like are you excited yeah i think i am but i love the chat both went to when i said emotions y'all both went to like anything it was not really trading it was just like emotions in general like if you're in a fight or if you had an argument with someone or feeling some type of way any type of emotion doesn't have to be trading related can really interfere with your training so that's that's neat to hear that you guys both went there like right away because it just shows that i mean that's happened to me for sure where i got in the fight maybe with my wife at one time and then i in my head maybe i'm just like upset and you trade different and you might make some mistakes so it's interesting you guys both went there because immediately i'm sure the audience is probably thinking emotion has been trading but it's it's probably could be worse if you you know because now you have something tied to it so and the market doesn't give us yet yeah the market doesn't care i don't care and so like if you're going to try to take your frustrations out on the market good luck yeah well speaking of frustrations when i say frustration what comes to mind i shouldn't have sold so early probably for me yeah shouldn't have sold so early yeah yeah i mean look yeah there's been a lot of those opportunities like gme and uh you know things like that where i'm sized very nicely sized and so yeah you just it goes up 20 bucks real quick and you're like this is the greatest trade i've made and i'm all set with it and then it goes 120 dollars i'm like well wait yeah that was such an idiot i guess no and then you step in front of it and give a little bit of it back and you're like i all i had to do was just i used this example i just needed to take beckett for a walk yeah like literally and it could have been a multi-eight-figure type trade no it's not it's yeah it's crazy and becca is becca is his dog so just fyi you're warning who the heck is beckett all right now what about failure embrace it i mean yeah i mean you got it for me i i think everybody's gonna fail at some point i think um [Music] i think it's it's being able to combat that being able to come back not give up keep going and and uh i mean i failed and you know i had to rebuild from from zero i think cody's like a really good example of like multiple times and really close like i'm down to the felt again yeah but you know it's it's like that mentality not to give up and um but you also have to like have some responsibility as far as like what got you back there what created this uh because a lot of people don't spend the time at kind of like looking at how they got there again yeah and you've got to avoid that and the the more things that you avoid just like even if you've never had a huge loss you're gonna have one but you have to have that because it's just you're just at some point it's gonna come yeah better to happen sooner than later so you know hopefully you're established you're on you know you've got kids and all this stuff and all of a sudden you're like oh yeah right isn't good but i'll probably butcher that quote but like what there was a saying it's like thomas edison you know didn't fail 2 000 times at making light bulb you know he found out two thousand different ways how you don't make a light bulb until he did so it's like failure is just it's gonna be something that you're gonna experience and if you just let it take the most you're probably just gonna give up and you weren't meant to succeed in the first place yeah hesitation i'm hesitating i know i don't know the first the first words that came to my head was buy more because whenever i hesitate it's usually the trades that are the best ones and i don't know why that is but if i if if i just hesitate i'm like maybe i should maybe i shouldn't those are almost always the ones who are like i should have but it's always the ones where i'm like yeah this is gonna work and i mentioned this before yeah this is gonna be a great trade and it never works yeah but i found my hesitate i would almost go opposite and the only reason is because if you hesitate you're unsure like put on a feeler like get familiar with it um rather than hesitate and maybe i will oh that was a bad idea at least you've got partial position yeah but yeah i mean if it hits cody's list then just go over it if you hesitate and it's on his list fine tune with the market it's a little different so make sure you don't just like oh don't hesitate every time you feel hesitate buy more like don't do that like just you think of what works for you have traded for at least 10 years work i would say that because i've had a lot of experience that i know it's just a gut instinct for me like i trade because the book i don't i've read it before it's the inner voice of trading and there's also a bunch of other ones i could even name them off but like i trade a lot out of my gut instinct you know i've trusted it my whole life and it hasn't really served me too wrong so yeah i have like a rule like the third or fourth time cody tells me to buy something i buy it i ignore him the first three or four times that is very accurate actually what about the journey don't think it's going to be straight up in a straight line you know yeah again it's going to be twisted turns and it's going to be all over the place and it's going to take you places you don't even expect especially emotionally and does it ever feel like it's more of a coast maybe later on but definitely not and like there's always a certain like monetary point i think everybody tries to get to for me like my intention from the day one was i did not want to work for somebody and i wanted to just have freedom so once i hit a certain point in my head at the beginning that i said i was like i'm gonna take time off and just be free because that's what that's why i got into it in the first place so and to lose sight of something like that is i think is really important you know um it's like the movie 21 where the guy's like i'm doing this just to pay for grad school or whatever medical school i don't know if you guys have seen that big or not but he ends up making like 400 grand or something like that from the mit blackjack thing and the girl asks him why you why are you still here if you've already done what you originally set out this entire journey for and he's like well because now i love it and i want more of it yeah i think you kind of have to always remember why you did it in the first place it makes sense yeah and if it's always monetary based i mean you'll never it's a just a bad goal it'll never be saturday it's such a bad goal yeah because it's always going to change you know once you get to certain levels it's your life's going to change your thoughts are going to change your you know everything that you especially if you improve your lifestyle yeah and do that you wanted to get here you get there and then it's now you like start to enjoy maybe the finer things and then you get to here and then you get to hear maybe you don't yeah but maybe you get there and it's it's you know it's not what you thought and then you're feeling even more lost you know you're looking for a different purpose things like that so i mean if you're always trying to get to x it's just such a bad way to go in my opinion and i think you know i've said before you know time fixes everything too as long as you're like this is where i want to be this is where i'm working towards and and you've got those kind of goals um i think that's fine but if you're if you're always focused on x it's just yeah i don't think it's a good way to go i agree but what about when it comes to goals as a new trader i'm just curious now the whole idea of you know you had a goal i don't know if this was your goal at that time but you said you mentioned there was a number i wanted to reach when i reached that number i was like okay let me start doing what i want to do did you have that goal from the beginning and and because one says maybe not think about the money so much so what are good goals to maybe think about i think it was like a mental thing it was like when i felt like i didn't need to be at the market every single day like i knew there would be that point whether it was the money or whatever it was i just i knew there'd become a time where i felt like i had achieved enough to just step away to make sure i wasn't number one addicted to it because that's that's a real thing but yeah you know i there was that moment in time where i was just like you know what i i've made this big mistake where i give back like 20 of everything i made and i just decided at a certain point i'm like i'm comfortable with what i've made i'm just gonna cut it before that happens i'm just gonna i'm gonna take it and run and then i'll come back to it i'll enjoy life a little bit and i've enjoyed it for the last six months and and i think you get bored with the certain things that you do over time too so like i don't remember who you even said to me but you'll get bored of traveling you'll get bored of sitting on the beaches you'll get bored of of all these different things that you like to do more than likely and it's the one thing that you really like to enjoy so i know i know i love trading because i haven't get them ten years so i know i'm going to go back to it yeah like it's obvious by the way cody's talking about getting bored of traveling he's literally not taking a cruise three weeks next year the rest of the week keeps cruising wow i was saying like in terms of goals at the beginning you know what i'm saying when you're when you first started like goals like that like what kind of goals were you thinking or at that time like were you thinking a monetary goal or were you thinking absolutely it starts off monetary goal yeah i i definitely think that and you you know everybody just wants to become a millionaire you know yeah you want to get to 100k and then 200 500 and just you know it but it exponentially grows right because it goes 100 200 500 million 5 million 10 million 20 50 100 and you can see that it starts to jump yeah and so if you're always getting there you're never gonna get there and all of a sudden you're gonna be 75 years old and you'll be like where'd my life go yeah so i mean look that's that is for some people some and that's fine if you're like totally cool with that that's that's great but i think uh i think a lot of people's perspectives change when they have kids um and you know look when you're when you're doing this for 15 years i mean it's also very hard to kind of change that you know and like he's taking time off that's great that's something i've worked it's been my like goal like uh you know but like 2019 2020 i mean i completely failed at you know taking off one time yeah uh this year i'm doing it this year i've done it i've taken off more half days yeah i did it on friday you know it's like it's saturday or time by the way on friday texas time um but i think it all just changes and you start to think about um different types of of goals and and like we've talked about i reached out to greg after like january and february which was i pretty much did my 2020 year in 2021 january and february and it was just a weird feeling and i called greg and i'm like because i i know he's been there he's done extremely well i'm just like i don't even like i'm so confused right now and like what's the purpose like where am i going with this and i think that's why like we do these kind of things um the traders for cause when we go out to vegas meeting people seeing people come from nothing turning into great traders and then turning into somebody that you know they probably don't know themselves yeah yeah and and i think that's more the the i think that's that's the greater purpose the the yeah i don't know i get more out of that than being like oh great i got a good trading day yeah somebody else killing it you you you text me one day and say you know i made x on this best trade ever that's better than any pnl that i'm gonna have on you know any given day like that's yeah i get a lot more out of that that's awesome that's all well before we start to wrap this up though i i want to ask you what do you what do you guys think is and it's so hard i know i don't train so complicated i know training there's so many things not just one thing's gonna help someone but i'm very curious on if we had a trader here right here brand new and they were like like what do i need to look out for know yourself before you start doing it like know who you are as a person can you go a little deeper in that kind of like have an introspection session before you actually like get into it especially if you get into it early with a lot of money you don't know what you're doing uh because i started from like small it's like when i learned i lost i mean big to me but it was over overall in the game you know nate was laughing at it as far as like my losses so it was like but to me i was like that's money you did it right though yeah i mean it was i'd rather fail small than failed big early and after me worked back every year he was going through the motions on nothing tiny 10 to 50 shares yeah he's like just 28 bucks yeah down 11. today you know and and you know it was funny and like how serious he was taking it and i was like this kid's passionate about it yeah um it's one step above paper trading right because you're actually going through the motions getting those orders doing stuff but what if he did that with 25k lost it 25k lost i'd give up immediately probably and yeah you know then you're out then then you're out of the game and you gave up because you you know you just tried too aggressively too fast you can there's so many ways to try before actually doing you know and and i don't know what's the the fastest way to to make a hundred grand is what start with 200 or something like that you know start with a million i think the quote is like a million the fastest way to bitcoin right but yeah i think there's bring it down a little bit time aspect too like if you're starting with like a large amount or x amount realize how long it took you to save that amount and then watch how fast if you start losing how that'll affect you because if it took you you know five years to save 50 grand and you're like oh i'm going to trade with this and you lose 10 grand in the first like week how's that going to affect you mentally you're probably going to be like wow that was that was a year's worth of money that i just said i think a lot of people put like a um value but like you know rent or like they put some type of um physical monetary yeah to what they're trading and could have bought a car with this money the further you can disconnect from your account your account value p l swings unrealized realize the further you can disconnect the better trader you're going to be because it at the end of the day it's it's can't things like that yeah you're letting the trade work and it's a plan and you have to take on that risk and that's trading is about risk taking on risk and i mean if you're always like oh my god i'm down my rent like i can't like how can you how can you focus how can you do that i think it's a kenny's rogers song where it's like don't count your money when you're sitting at the table it's the same same kind of thing like don't necessarily always put the money as far as like what you're looking at as far as like p l's that type of thing yeah just don't you have to detach from that thing completely so in that old song it's like don't count your money while you're sitting the table because you should be focused on other things not how many tips you got in front of you stop looking at other people's journeys and their piano everyone's different crap i mean you mentioned it on you know at that prior episode with tim yeah and you're like i'm influenced by people and you know if you notice that then just cut it out look somebody's always going to make more money than you yeah yeah i mean it's a fact your best day your best day guess what you know somebody else made 100 times more than that yeah you know and uh it is what it is and so it's your journey and you just have to be able to control it yeah cool well look guys i appreciate y'all so much for being here making this happen and if you like this content make sure to like subscribe and then check them out their links are going to be below in the description thanks again and come back next time

Channel: B The Trader

Views: 521,307

Keywords: day trading for beginners, day trading strategies, learn to day trade, stock market for beginners, how to trade penny stocks, how to trade penny stocks for beginners, day trading tips, learn to trade penny stocks, learn how to day trade penny stocks, nate michaud, investors underground, nate michaud interview, day trading, stocks, stocks to buy now, trading strategies, millionaire mindset, millionaire secrets, millionaire traders, 7 figure trader

Id: ic0IhIan8Js

Length: 31min 36sec (1896 seconds)

Published: Mon Oct 04 2021