All language subtitles for 3-Swing Trading for Beginners w_ Jerry Robinson of FTMDaily - YouTube - English

chat with traders episode 1 the biggest

secret of the best traders in the world

is that they're just like everyone else

however they've worked hard to learn the

markets and discover what works and what

doesn't but how can you hear about these

journeys and getting on the strategies

and tactics they use you can do it by

listening to chat with traders here's

your hosts air in five fields

a traders welcome to the very first

episode of chat with traders I'm your

host Aaron fire field man I'm so glad to

finally be launching this podcast I

originally had the idea for this around

I know the halfway point of last year

and now we're a few days into 2015 but I

wish I could have had this tea sooner

much sooner but better late than never

right like I mentioned I'm Erin and I'll

be your host from here on in so to give

you a rundown on who I am and why I felt

the need to launch a podcast for traders

I'll tell you a little bit about myself

so I've just turned 24 and I'm living in

Brisbane City Australia late 2012 I

embarked on a journey of learning how to

trade it started with a little curiosity

but quickly escalated into a mild

obsession

I saw trading as an opportunity to

create serious wealth without being tied

to any one location not to mention the

small amount of startup capital required

minimal ongoing costs and best of all no

exchange of time for money for me

trading just ticked all the boxes after

nearly running with technical analysis

I could see the logic of trading

patterns and trends therefore this was

the path I moved on I knew this was

something I could learn but I also knew

to do this well it was going to take a

lot of hard work and determination not

one to shy away from a challenge I began

building my knowledge on how to read

charts in particular studying the

methods of 1900s Wall Street legend with

him Gann if that name doesn't ring a

bell

Gann was essentially a swing trader with

a big focus on repeating ranges of price

and time during this time I opened a

$5,000 account and have been reasonably

active ever since but the truth is I

haven't seen great success well not yet

anyway

but because I've developed this passion

for trading I haven't been discouraged

by this if anything are more determined

to make it work in fact that is

partially my reason for launching this

podcast while interviewing successful

consistently

operable traders I aim to fast-track the

learning curve not only for myself but

every other trader facing similar

challenges while that's the big one

there are another few reasons why I

launched this weekly podcast that you

should know about one this platform

gives me the ability to personally

connect with traders just like you so if

you would like to connect or just say

hey that would be really cool catch me

on twitter my handle is at chat with

traders or just shoot me an email Aaron

at chat with traders calm that's double

a ro n at chat with traders calm to

hearing about the journey and stories

from proven traders are inspiring

insightful and show us what is really

possible 3 this podcast is an ongoing

free and valuable resource that I truly

hope will help you to continually learn

more and grow your account for through

the podcast I hope to attract a trading

mentor who can see I'm serious about as

Steve Jobs would say making a dent in

the universe so I think that sums it up

pretty well as you can tell this podcast

is undoubtedly targeted towards

entry-level traders and I hope this will

soon be considered as a staple for your

progression on the other hand I also aim

to entertain the veteran traders who

understand the Great's never stop

learning because as we know the market

moves money from the hands of the

uneducated to the educated to stick with

me as I deliver in-depth interviews with

the ones who have learned how to beat

the market as I reveal their journey of

ups and downs top trade advice and open

our minds up to new strategies and

winning tactics and also promise to mix

it up you'll find some guests I have on

are very well known for what they do and

some will be underdogs those who are

undoubtedly killing it and have a lot of

knowledge but not necessarily in the

spotlight to make sure you never miss an

interview there are two things you can

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for every episode there will always be

show notes available at chat with

traders calm in the show notes you'll

find a brief overview of important

lessons and takeaways from within the

interview plus any links and resources

that might have been mentioned now it's

important I say this and the supplies

going forward too

I want to hear from you I want you to

tell me what you like about this podcast

and what you don't like if you feel

there is any way this could be better or

you want the answer to a certain

question or if you think someone would

make an awesome guests for the show

please tell me your or feedback will

help me to deliver better interviews and

essentially better value to help you I

know my interviewing skills were a

little rough around the edges right now

but understand I've never actually

interviewed anyone before now so that's

something new for me and it's also

exciting but I promise I'm quickly

getting better with each and every one I

do however your feedback will be

genuinely valued right enough of me

rambling let's get to the metres episode

and the reason why we're all here and

that is to hear from today's guest he's

an active trader author serial podcaster

and the founder of FTM daily he is Jerry

Robinson Jerry takes us through his

early experiences of trading and how he

got started then leads us into how he

trades and shares what works for him we

also discuss specifically the things

entry-level traders can do to improve

with the experience and success Jerry

has extracted from the stock market over

the years he was the ideal guest to

launch

I found Jerry gives a lot away in this

interview and was really open in the way

he answered every question so I

encourage you to listen closely and

absorb what you're about to hear

again I'm Aaron Fifield and this is chat

with traders here is today's guest Jerry

Robinson hey Jerry thanks for making

time to come on the show it's really

great to have you here yeah it's great

to be here Aaron thanks for the invite

now you're welcome so now it came to

hear how you got started and the reasons

behind it so tell us a little bit about

how you got into trading and what was it

that appealed to you I was really young

I was in my very early twenties whenever

I first got started trading and I was

working at my very first corporate job I

had a friend who was a trader I mean he

was at you know a trader I mean I I

think he was brand new at it but he was

doing really well he had kind of

developed a system where he was using uh

moving average cross overs or he was

using uh I think he was also doing price

over moving average cross overs and and

he was really happy of course this is

the late late 90s I mean mid there's

like 1997 so you could throw a dart and

make money you know in the stock market

um and so I really got excited when I

saw him making money at trading and I

thought gosh if this guy can do it I

know I can so I started studying a

little bit about trading read some books

on it uh got really excited about

trading and then I jumped right in and

as I mentioned we were right here at the

end of the 1990s so stocks were going

crazy there's a dot-com bubble and so I

started making really good money and uh

uh you know I thought I kind of

developed an Adonis complex I didn't

think I could lose money and you know I

had some moments where I did lose money

and what I did it really hurt it wizened

me up and I think you you really aren't

a trader until you've had a really bad

loss you know you've got a BA and I

don't suggest that everybody go out and

lose money but what I mean is is he it's

almost your tuition on Wall Street

you're gonna have to lose money and you

know what I still lose money to this day

seventeen years later

Aaron I think most people is certainly

at least in the blogosphere when you go

out and you look at some of the

different trading services and whatnot

they tend to play that down they they

play it down they really talk about how

much money you can really make in

trading but they fail sometimes to

mention to you that part

making that money is losing money and so

uh you know losing money was a real big

important step I think for me uh I got

started I got like I said back in the

mid 1990s

and I haven't ever looked back I mean

there's been probably periods in that 17

years where I haven't traded as

regularly a lot as I do now or did at

some points but yeah I absolutely love

trading I think it's what I think it is

probably the best business in the world

I like that great answer so when you got

started how did you what were you sort

of your first steps did you immediately

open a trading account and just dive

right into it or did you start paper

trading did you build you know no yeah I

recommend people start paper trading I

did and I just jump right in both feet

with a Scottrade account I didn't have

much money though I only had I think

like $700 when I opened my account and

so you know I had very little money to

get started uh lost half of it you know

pretty early on but but then started

making money and yeah so I started with

Scottrade I I still like Scottrade I

still have an account there I used

mainly today there's a couple of

different brokers that I really like

Interactive Brokers is a really good one

it's nice and cheap I mean if price is

really your big thing Interactive

Brokers is a pretty cool place etrade he

trades really expensive but you know it

offers you Aaron it offers you access to

so many different international markets

that you can't normally get access to

through most platforms so if

international trading is important to

you then etrade you know offers a really

cool thing like that but yeah I got

started with Scottrade just at seven

hundred bucks and you know it's amazing

what you learn over the years and how

you can turn a small little measly

amount like $700 and - you know parlay

it into a fortune and I mean I think

that's what many people think of when

they think of trading they they know

that it's a level playing field anybody

can succeed if they apply themselves and

you don't have to have a ton of money to

do it you just have to have

little bit of money and a lot of Drive

and a little bit of knowledge yeah will

said so what would you say with some of

your you know you main early setbacks or

failures like what sort of things did

you find yourself struggling with and

yet in your early days ah well I tell

you what happened initially to me was I

would start when I first started trading

out I mentioned I didn't paper trade so

I would just go ahead and trade a stock

and not really knowing what to expect

and the first thing that I first lesson

I learned really hard was not to listen

to other people's ideas now I don't mean

informed traders I'm talking about the

average person at work or a co-worker or

you know a an uncle at the Thanksgiving

dinner you know I mean you just want to

avoid taking those kinds of stock picks

from people also stuff on TV

I mean you listen to some of the stuff

on TV and you hear different things you

know I think it's really important for

people to have a system and most people

don't and that's why I think most

traders don't succeed is that they don't

really have a set of rules or parameters

that they stick to and that's one of the

hard lessons I learned early on Aaron

was that you just got a you've got to

have a system you just can't take stock

pics from people now if if your system

generates the stock picks well then

that's a whole different story I mean

that's what we've created you know we've

created a system that I've been using

now for a long time and it generates

stock picks based upon those parameters

based upon those rules and if you have a

system like that that's one thing but if

you just got an uncle you know like I

said sitting at the dinner the dinner

table telling you why you should buy

this one stock you know you've got to do

more due diligence than that I've said

you got to be gonna be careful he

listened to oh so important and that

that was one of the hard lessons I

learned and then and then just to go on

Aaron another lesson was after I lost

money in the markets you know during

that time I noticed that I had a hard

time pulling the trigger

so I would at first I was gung-ho I just

jumped in both feet you know put my

money in started going real crazy made

some money lost some money but after I

had a good law

boss one time I was like 19 late 1997

early 98 had a pretty big loss and I I

failed to put my stop-loss order in

where I wanted it to didn't fully

understand how they worked its it gapped

down my stop-loss didn't even you know

matter at that point uh because it was a

stop limit order long story uh it ended

up really hurting me and after that I

had a real hard time just jumping back

in like I did and that was good in some

respects because it caused me to think

about things before I jumped in but it

also kind of paralyzed me and that's one

thing you can't have as a trader you

can't second-guess yourself you've got

to have a system and you've got to work

that system and you can't be afraid you

know and so I think overcoming the fear

of actually putting that money into the

market and just trusting my gut

trusting my system trusting what I was

doing you know that took a little bit of

time I know there's people who've been

trading for some time who still have

that problem you know they have a hard

time pulling the trigger because they're

fearful that they may lose money and

you've got to overcome that yeah I think

there's some really good points you make

you know I'd like to sort of dive into

those little deeper and a little bit but

um I mean you're obviously doing quite

well with your trading now but before

you got to that stage was ever

appointing a journey when everything

just clicked and you just sort of knew

that you were going to make a success

trading we knew you're on the right

track and doing something really well

yeah I think so I mean I think you know

it took a long time to really develop

and hone down a system I use technical

analysis predominantly to find my entry

point I use fundamental analysis to

usually sort out the stocks that I'll

actually put my money into but then I

use the technical analysis to filter

them down and figure out okay which one

is the right one to enter right now

right because you may have a universe of

great stocks but but knowing when to buy

them is the key when you're a trader so

I use technical analysis to do that and

technical analysis at first was

intimidating to me because I didn't like

math I never was a math you know fan and

as I stuck tat charts I just had kind of

a fascination with them began to study

them and yeah there was a moment Erin

where it clicked where I was I still do

this to this day when I first got

started I would print out charts of the

stocks that I wanted to trade and the

stocks that I did trade and I would go

back and I would just literally draw on

them I would draw trend lines on them I

would try to find you know here's where

I bought here's where I sold and then I

would try to figure out what happened on

the chart that I lost money or what

happened on the chart that caused me to

make money and I think after doing that

for about a year I really began to feel

confident the other thing that I did was

I really began to focus upon as my

account balance grew I mean this is hard

to do when you have a small account

balance because when you're just

starting out like me you know whenever

you have just like $700 and that's all

you've got you have to hit a home run on

every stock so you have to take these

wild you know risks in order to make

money otherwise you're just kind of

spinning your wheels paying trading

costs so I think when you don't have

very much money uh you know you're more

prone to take a lot of risks but as my

account balance grew I began to focus

instead on more blue chip stocks stocks

that I could buy in Aaron and then go to

bed and not worry about waking up the

next morning and finding out that they

went bankrupt you know so I started

focusing on those stocks mainly and then

what I did was I really began to focus

in on just a handful that way I would

know when something was different about

the chart so I I boiled it down that for

a long time all I was trading with three

stocks I was trading BP oil company I

was trading Altria ticker symbol mo mo

and then there was another styling was

no it was a at the time it was TV Guide

I don't think they're they don't they're

not around anymore in that same form but

it was TV GI a or something like that

well anyway I just traded those stocks

and I looked at their charts every

single day and I would notice that if

they opened up in the morning that they

would you know that the stock would do

something and if it opened down in the

morning there was a 60 or 70 percent

chance it would do this later in the day

and so I just came to know those stocks

real well knew their charts I knew their

behavior I knew their volume levels I

knew when volume was unusual so I could

take advantage of that and that's really

when I started to really get my stride

and I think that all traders go through

a process like that where you first

start out and you're willing to trade

anything that moves anything that'll go

up just let me trade it but after a

while you realize that that's kind of a

losing game in the end you've really got

to develop a niche or you've got to

develop a strategy or we talked about

earlier a system that works and for some

people that's just honing in on a

handful of stocks or maybe a certain

industry I have a friend who just trades

cloud-based Internet companies that's

all he wants to do and the he fee and he

knows those companies and he knows which

ones are the best and he likes to trade

those I have another friend who only

trades energy and not even energy stocks

just oil and natural gas that's all he

trades and he knows those markets very

well so you know he can make money at it

but he but he can't really trade some

other stocks I mean he knows how to

trade but he probably wouldn't be as

much of a success had he tried to just

trade stocks he focuses upon one or two

things and does it really well and

that's the beauty of trading you don't

have to be a master of all of these

different stocks and know everything you

you really just focus on a handful of

stocks or maybe an industry or a sector

and just really become good at it and

anybody can do it so that's something

you would suggest to sort of pretty much

every inch level trader is just to pick

a few stocks and get to know them really

well before sort of branching out and

sort of putting the hands into a whole

lot of pause yeah but but you know I

don't think that's realistic I think

most people need to kind of have that

wild experience at first where they kind

of just get out there and they just you

know kind of I don't think it's natural

to start that way I think they should

kind of have their normal you know

natural entry into trading but I think

over time if they've been doing it for a

little bit of time I think that's the

wise

to do its now let's pull back now let's

take some of that knowledge that we've

learned and let's begin to apply it to

specific stocks or specific sectors and

you know what be like warren buffett and

focus on what you know i mean if you I

was working in fact I was working at TV

Guide uh whenever I was trading that TV

Guide stock so I knew the company I knew

I began to watch it and it began to

break into a a channel where it would

bounce back and forth in the channel so

it would go from like a mere 48 dollars

down to 42 and then as soon as it hit 42

on the chart it would always go back up

to 48 and then as soon as it hit 48 it

was like a ceiling it would come back

down to 42 and I can't remember it was

like two years where I just played that

back and forth and then it broke one

time then it went down below 42 and then

I had to figure out what to do so you

know but that's the kind of stuff that

you do when you're focusing upon just a

handful of stocks and you begin to

notice patterns like that and that's

where the money is yeah that's great so

um typically spiking before you enter a

trade what are you looking for I mean

are there certain patterns or signals

what are the sort of things that get you

excited about a trade to get into it

that's a good question uh well when it

comes to day trading and I don't do much

of that anymore Aaron we were talking

about that earlier and I just I don't do

a whole lot of trading uh daily or day

trading I guess intraday trading it's

just too stressful I've done it in the

past I can you can make money doing it

but you can make a lot more money a lot

more money if you position trade

position trading is different from day

trading in the fact that day trading

you're trying to exploit a minuscule

part of an existing trend I mean you're

just literally scalping profits out of

it you can make money but but for the

person who doesn't have a huge balance

account balance they need a a bigger

return in order for the money to make

sense or the return to make sense so

position trading is where you identify a

stock that is poised to begin an uptrend

and you take a position beforehand

now it's really difficult to do it's

hard to find bottoms but that's

speculative type of trading and then of

course there's swing trading swing

trading just simply takes advantage of a

position or of an existing trend but for

a longer period of time than a day

trader does so I myself a swing trader

and a position trader I'll give you an

example like right now this is probably

of course this uh this show will be

dated by the time many many people are

watching it or listening to it so this

isn't really a great example but I was

giving an example now is that one

particular commodity that I'm bullish on

right now is corn corn has been beaten

down so hard on the charts and by

looking at it I've decided to take a

position in corn for a for about a

period of about 12 to 18 months so

that's a position trade it's it's

basically a trade where I say okay all

of the geopolitical forces and all of

the economic forces have driven this

price down and I believe that it's

oversold and so I'm going to step in and

I'm going to place a trade and I'm going

to buy it

and I'm going to believe that over the

course of the next 12 to 18 months is

going to be much higher than now that is

not a swing trade that's a position

trade a swing trade would be something

where I see an existing trend it's going

up and your stock is just going up and I

just hop on and ride the train higher so

a swing trader sees the train moving and

hops on the position trader sees this

the train in the in the station still

and he gets on before it even starts

moving he stands to make the most amount

of money if he's right but swing trading

is can be just as lucrative if you know

how to do it properly yes he mentioned

position trading sort of range between

twelve to eighteen months sort of that's

the sort of the time you're holding it

for how long would you say your your

hold and typical sort of swing trait for

just on average you know usually I mean

I've I would say my typical swing trade

or anywhere from one week to five weeks

somewhere in there

usually five six weeks is about the

limit but you know the truth of the

matter is is that lately we've been in

this market that just knows no bounds it

just keeps going higher and higher and

higher and so in a case like that you

don't want to cut your losses or you

don't want to cut your gains short you

want to let them run you know that old

saying you know let your winners run and

cut your losses short is so in this

environment yes

typically I'll only hold for five or six

weeks but if the trend is still moving

in my direction all to stay in it and

I'll just continue to raise my stop-loss

I always trade with the stop-loss learn

that early you know don't trade without

a stop loss and so I'll raise my

stop-loss or use a trailing stop loss

but I'll let the stock continue to go

higher and a lot of those swing trades

by the way got stopped out in this

recent market pullback and that's okay

you know because then it's just time to

take more positions exactly now that

that's well said so you mentioned

earlier how you sort of these days using

technical analysis to sort of time your

entry into a trade and fundamentals sort

of give you the reasons for entering

that could you just sort of share a

little bit more on sort of may not know

it's quite a broad topic but what

fundamentals sort of influence your

decision

oh yeah well you've got to focus on

earnings earnings drive prices I mean it

literally is what drives prices in the

stock market so earnings per share

earnings per share growth growth and

earnings per share that's huge so seeing

a company that is consistently growing

earnings on a quarterly basis every

single quarter that's what you want to

see look you know you're in Australia

I'm in I'm in the United States you know

in my country there's probably 55 - well

if you add in all the penny stock sirs

there's thousands but there's you know

on just the average US stock market

there's about five to six thousand

stocks that are traded at every single

day just the regular stock exchanges and

if you look at those stocks

many people are willing to trade any of

them I'm real real picky about what I

want to trade

and I think I always encourage traders

to be very picky and the way that you do

that is you look for strong earnings

right not every company has strong

earnings so you want to look for

companies that have strong earnings

growth and you also want to look for

companies that have strong revenue

growth and profit growth but also return

on equity is one of the big factors that

I look for I learned that from Warren

Buffett not personally but through a

book and a Warren Buffett you know talks

about the importance of return on equity

also one of my biggest influences was

William O'Neal who started the paper

investors business daily he's written

the book how to make money in stocks one

of his primary criteria for a good

growth stock is a return on equity above

15 to 25 percent somewhere in there so I

like to screen stocks out for return on

equity around 25 percent if possible I

like to look for earnings per share

that's earnings that are accelerating

profit that's accelerating those are the

main things that I look for here okay

that's great so people who are just sort

of or traders who are just sort of new

to the market and that's the thing

what's the easiest way where they can

access that sort of information hmm yeah

there's some really great sites for free

y charts dot-com why just just a letter

why it's an unbelievable site for free

they've really been kind of locking a

lot of it down lately but Y charts calm

you can go there and you can graphically

see every stocks p/e ratio the revenue

growth their earnings growth the return

on equity you can just charge it all out

and it's all free and you can set up a

free account there another great site to

check out for good fundamental growth

stocks is Zacks calm Zak's calm they

actually assign a proprietary ranking to

every stock one being strong Buy and

five being strong sell it's a scale and

I look for number one number two stocks

at Zacks

so what when I look at a stock and I'll

screen it I'll typically you know find a

stock that meets my fundamental

parameters and then I'll check and see

what's Sachs saying about it and and

what kind of ranking does it have an

investor's business daily you can find

investor's business daily online it in

investors dot-com and I look at those

free tools and I just try to find out

you know what's the overall analysts

sentiment on the stock how's the

earnings growth on the stock what are

people saying about it and so I look for

that those are really great sites white

charts calm Zak's calm that's za c KS

calm and investors calm those are all

some great resources okay goodbye we'll

put a put links to those in the show

notes below this episode and we'll

definitely check those out now just

moving back a little bit when you were

talking about trading plans earlier I

sort of want to dive into that a little

bit more so I mean I know a lot of

traders especially the more experienced

ones also talk about trading plans so

what does a trading plan mean to you and

what should entry-level traders do to

create one mmm that's a really good

question whenever I was younger my

grandfather who served in the war the

Great War though or the world war two I

told me that it was important when you

walk into a room to know the exit and I

always used to think he was paranoid but

it's a very true statement you gotta

know the exit when you walk into some

place you know and I that applies to

trading especially uh most people don't

realize that you make money when you buy

not when you sell that is a that is a

point that is so important I think for

traders to understand you have to buy

right in order to succeed at trading

it's when you buy when you place that

order that is the moment where you're

making money because if you buy wrong

you'll know it quickly if you buy right

you you'll also know it quickly and so

it's important I think to know your exit

what's your exit strategy never walk

into a stock and not know what your exit

strategy is a good exit strategy has a

dollar amount

so in other words if I buy a stock at

$30 typically my own personal trading

philosophy is that I don't want to lose

more than you know eight to ten percent

on a stock at any time under any

circumstances I'm just not willing to

there's very very few instances where I

will the few instances were all take a

larger stop-loss than eight to ten

percent is when I make a pretty big

speculative move say on a little penny

stock and I'm only throwing a small

amount of capital into it okay maybe

I'll lose the whole thing maybe I'm

wrong but for the majority of my trades

I don't want to lose more than eight to

ten percent and I stick that in my

stop-loss order immediately after I

place the trade so I think having a

system is part of your trading plan you

know hey I'm going to buy the stock am I

going to buy it on a market order or am

I going to buy it on a limit order or

and then you decide that and then once

you get in you place that immediate

stop-loss order and then you decide to

yourself how much do I expect to get out

of this profit potential is an important

part of the equation whenever you are

placing trades you should know

approximately what you expect to earn

from the stock before you buy the stock

you have to know that because if you

don't know that then you don't know if

you're making the best decision because

part of the reason why we trade is we

trade for profit and if I have four or

five different stocks to choose from I

want to choose the one that has the

greatest risk reward ratio and so I'm

looking for the stock that has the best

profit potential for the least amount of

risk so you have to know all that before

you jump in if you're just again if

you're just jumping in because yard it

on TV or because you read it in the

paper it's not a good reason and you may

be buying the right stock but you may be

buying it at the wrong time so the

trading plan really is all about making

sure that you have a systematized

approach to your trading and you don't

buy the wrong stock at the wrong time or

there even the right stock at the wrong

time yeah I think you made some really

good points that Jerry

it's awesome so I mean we might have

already covered this a little bit but um

where do you often see entry-level

traders slipping up and what would you

say to them I mean I know you deal with

quite a lot of entry-level traders

through your your training and that sort

of thing so I mean what sort of issues

do they face that come up quite

regularly

that you see I think probably probably

knowing when to sell knowing when to

sell I mean when you get into a stock

and it goes up right you buy a stock and

it goes up and you're excited you've got

your stop-loss there and it's you know

it's up a little bit I think sometimes

new traders especially and even you know

those of us who've been trading for a

long time sometimes it's easy if we

don't have a plan to get confused and

get emotional when the stock goes up 10%

we think to ourselves oh this is great

well surely it's going to keep going up

and then it goes back down and you you

lose all your money that you all the

gains that you had made so I think it's

important that you don't ever let a gain

turn into a loss you can do that through

stop-loss orders but I think that's

probably one of the things that

discourage a lot of traders is that they

don't know when to sell they're either

too timid or they're too greedy and

that's really it's a hard lesson to

learn it's it's one of these things that

you just have to learn through

consistently doing it and using a system

so again when I when I enter a stock I

typically have a profit potential that I

have in mind and I have my stop-loss and

I know all those things right when I buy

the stock because I immediately place a

stoploss order and then I begin to watch

that stock and if it gets up let's say

that I plan on making eight percent from

that stock well when it gets up to eight

percent I'm moving my stop-loss up

really tight because I don't want the

market to tank the next day just all of

a sudden in my stock and all my gains

that I work so hard to get now they're

gone right now it's back down to zero

and I'm flush again that's terrible and

so now you want to lock in those gains

and that's why you need to know your

profit potential

so again if if my profit potential on

the stock is eight to ten percent I

expected to go up by that much then I

want to watch that stock and when it

gets up to that level I want to choke up

that stop-loss and keep it real tight

that way if it does fall back I still

make money and I would say for most new

traders that I encounter usually

figuring out when to sell is usually the

hardest thing and you can overcome that

with a system that's really what you

have to have you have to know what would

cause me to sell what would that be what

are the what are the sell signals and if

you don't have any of those then you're

going to lose money you know so you've

got it you've got to have some sort of

warning system built in that you can

refer to that can be a moving average

crossover it could be RSI you know some

something happening in the RSI it could

be it could be a stochastic move I mean

there's so many different things that

you can look at that will give you an

idea that maybe it's time to bail on the

stock you've just got to have that in

mind and have that up front so you don't

lose money great great so I've heard you

saying before on our quote trading can

be learned by anyone willing to put in

the effort and the time what is it that

you believe stops majority of traders

from making that huge success no system

they don't have a system Aaron they they

are attracted by the amount of money

that they can make they're attracted by

the lifestyle the trading affords I mean

I gotta admit trading is nice I mean the

lifestyle is very very very good when

you're when you succeed as a trader you

have the ability to work from anywhere

in the world I tell you this is a

disapper Senora

one of the very first traders that I met

it left and left this lasting impression

on me in fact this might be the most

motivating thing that drove me to become

a traitor was I met a he's an older guy

oh he was probably late 60s and he was a

traitor and he had a yacht and he lived

on his yacht

most of the time I like five or six

months out of the year and he had his uh

family you know as his wife and the

grandkids and they'd all go out sailing

on their yacht and stuff dude doing

things and he would trade in the first

few hours of the morning and he would

close his computer by the end of the day

and he was about by the end of the

morning and he was done and he would

just he would trade like Walmart he

would trade IBM he had a lot of money

and he would use options and different

things and he would just make you know a

thousand two thousand dollars a day cuz

he had a lot of money and just you know

when IBM or Walmart moves 10 20 cents

and you have a lot of money in it you

can make a lot of money so it was very

low-risk

very low-risk trading and I saw what he

was doing and I thought you've got to be

kidding me this is fantastic you know

because I was working a slob job and you

know just I just it was not I was not

very happy and I thought man I've got to

make my life something like this well

you know trading now with all of the

internet and all the computers and

everything that we have now you can do

this from anywhere you can do it from a

yacht you know out in the middle of the

ocean you can do it from you know from

from from your house and your pajamas I

mean so trading is really really sweet

in that respect people see that errand

and they get caught up by it they get

caught up by that and they they forget

that in order to get there they have to

have a plan right they got a plan to get

there and so I think many times people

are very excited by the dream or by the

vision of what life could be as a trader

but they just don't build this the

bridge to it and they take the hard

thought you know set forth the hard work

that's required to get there and again

what that means is when you start losing

money in a trade cutting those losses

and then you're going to buy another

stock and if you start losing money

again you cut the losses I went through

a period where I lost money for about a

year it was the worst time in my trading

career I mean I could not make money to

save my life it was unbelievable or I

had my system too but still I was very

frustrated and I almost threw in the

and I think back at that time oh my gosh

what if I had done that and that's one

of the things I tell new traders is that

do not give up if you really want this

if you really want to succeed if you

really want to have that lifestyle that

you have in your mind you cannot give up

you have to continue and when you lose

money you've just got to lick your

wounds and keep going but if you stop

trading then it's over you know it's

over now I will say this if you if you

don't have a system that's not my

recommendation to you because you're

just going to keep losing money here's

the thing to remember about Wall Street

the guys who are on Wall Street in New

York City these guys are smarter than

you and me and everybody that we know

put together right and if they're not

smarter than us they're certainly more

uh slippery than us that's a that's a

code kosher way to say it they they are

what they are it's a very dirty game

trading and so they see guys like you

and me coming a mile away when we come

in and we type in we we want to order in

a hundred shares of a particular stock

they know exactly who we are and they

know how to shake us out and take our

money so that's why it's very important

for the average trader who's out there

to to have a system to not give up - to

understand that he has to have some

knowledge that he can't do this without

gaining some some experience and

knowledge and did you know Aaron there's

a lot of seminars out there there's a

lot of coaching programs out there and

many of them were thousands and

thousands and thousands of dollars I've

never done any of those and I succeeded

I don't my saying that you I'm not

saying that you you can't make money

using those I'm sure I know you can but

I think when I say system what I mean by

that is that read through many different

books read through different trading

books notice what people use for trading

strategies and start using some of them

and find out which one works for you

really sit down and take the charts that

you've traded and draw on them print

them out and draw on them look at them

become intimately familiar with the

tools of your trade and just realize

that it's

going to take time it's going to take

time I unfortunately there's been a lot

of TV infomercials and websites out

there that make it sound like you know

anybody can make a million dollars

overnight by trading this one little

stock that you don't know about but I do

so give me money and I'll tell you which

one or two that does not it doesn't work

that way that just doesn't work that way

unfortunately you've got to have a

system if you want to do this long term

of course not that's really well put

Jerry now you touched on a little bit

there some like to dive into a little

bit more especially since you've went

through that year we you know lost money

consistently the emotional side of

trading so how do you manage emotions

and I mean what gives you the confidence

to keep on executing trades after a

losing streak I mean even just a few bad

trades I mean it can be hard to sort of

push the button and get back in like

what gives you the confidence to keep

pushing on and and know that your system

is working and how do you know when it's

broken yeah it's a great point I think

what gives me the confidence now is not

anything to having to do with the stock

market I mean I you know from a economic

standpoint I am of the opinion and the

persuasion that this market is

completely bogus I mean it's all all

funny money that's been created here so

I'm not confident in the market itself

what I am confident in it are many of

the companies that I will invest in for

example the United States of America is

18 trillion dollars in debt that's just

on you know that's the that's the big

public debt if you look at unfunded

obligations they have a hundred and

twenty seven trillion dollars of debt I

mean they're never going to pay it off

you know and so in my mind companies

like ExxonMobil or um you know or

Chevron these big oil companies to me

these companies will outlive nations

like America I mean these companies are

sitting on huge piles of cash they don't

need America to sell oil they can sell

to anybody who boo breeds and who needs

it so to me I think of these companies

and I see how much cash they

and I realized that by trading these

types of companies as long as I use a

system that works I'm going to make

money because those companies will still

be around and because I use stop-loss

orders I also know that my my losses

will be limited you know if I do have

losses and you know after trading 17

years I've only been been really a stop

loss is really only not worked for me

probably I can count on two hands

usually from operator error but a stop

but a good stop loss set properly will

almost always save your hide as long as

it's not some strange anomaly where the

price just gaps down something severe um

and besides if Walmart stock or if BP or

if ExxonMobil gaps down guess what it

comes back so in many in many ways you

don't have to lose money unless you just

have to have that capital and you have

to sell so those are those are some of

the things I would think of you know

regarding that okay awesome so just one

other thing I'd like to touch on and

that some tracking progress and

reviewing trades I mean is this

something you do or maybe you did it

earlier on and how important is this for

me be traders or is it a little

overrated well uh I think I think I

think sometimes it's it's a little

unrealistic to think that you know

you're going to have enough time to do

all of that but I I do think that it's

very important and I still do it to this

day as I mentioned is to always know why

you lost money in a trade or always know

why more importantly perhaps why you

made money sometimes when we make money

we'll we'll chock it up and just you

know consider ourselves great and move

on but but we've but we don't stop to

really think now how did that happen

right out of those stars aligned how did

how did I make that money and because

when we lose money I think we all know

we need to figure out how that happened

because we don't want it to happen again

but likewise when you make money you

want to make sure you understand so you

can

make that happen again and so I would

say that probably one of the smartest

things that people can do um

if they're not afraid of charts and if

you're afraid of charts you know trading

is a probably not the best thing for you

because that's really what you're

trading I mean sure you can train on

fundamentals and sure you can just trade

on some of those things but I think

you're really crippled especially in

this market because again it's so

manipulated so you've really got to see

the chart you've got to see what you're

buying and you've got to see where it's

at so I would say that you know focusing

upon printing out charts looking at them

maybe I ought to print them out but just

really pay close attention draw on the

charts really look at the charts and

understand and I think one of the most

important things the biggest thing that

ever happened to me in trading was

understanding trends that was it you

know all markets and you know this Aaron

all markets go up up down or sideways I

mean that's really all it is and so when

stocks overall like when the S&P 500 for

example is in an uptrend three out of

four stocks are going to follow that

trend if a market is trending down three

out of four stocks are going to follow

that trend so if you're trying to go

long in a market that's going down you

just you're just you're giving your

money away and if you're trying to short

when the markets going up you just given

your money away so you've got it you've

got to understand trends and ride the

trends and I think understanding how

trends operate being able to draw a

simple trendline on a chart all of those

things you know they seem simple but a

lot of traders I've met don't know how

to do that so I think those are some

really important things print out those

charts find out why your trade didn't

work by looking at the chart try to find

similarities and your losses and

similarities and your gains and try to

learn from them yeah very well said

great advice this so Jerry that's sort

of bringing us towards the end of the

interview and again thanks so much for

coming on the show and showing so many

incredible insights

so let's go to the closing bell and I'll

hit you with a round of questions we are

still where I guess so the first one

would be what's the best piece of advice

you've ever received got you think yeah

uh best piece of advice I've ever

received

uh let's see well um probably too well

you know I would say uh would be to uh

to follow the money uh you know duh if

you want to know the truth about

anything you just gotta follow the money

you know don't pay attention to what

people say do pay attention what people

do and when it comes to stocks it's the

same thing you know if you want to know

what's really happening in stock you

know pay attention to what the insiders

are doing pay attention to what the

institutions are doing follow the money

and you'll find out what's really

happening awesome

what is the number one trading resource

you couldn't live without mmm I would

have to say couldn't live without

uh probably an outside resource that I

that I haven't created for my own self

an outside resource would be probably

investor's business daily I read that

religiously every day it's a really good

newspaper and they they keep track of

the what they call the IBD 50 the

investor's business daily 50 and there's

50 different stocks in there that are

the hottest fastest growing growth

stocks and it's just like a it's a great

list of stocks to start your trading

watchlist from so I start my morning

with IBD I like it I've been reading it

for a long time it's a great paper great

name one book you believe is a must rate

for any tried it just starting out I

would say how to make money in stocks by

will O'Neal I think I mentioned that

earlier but how to make money in stocks

by will William J O'Neal he puts a ton a

ton of charts historical charts

throughout his book and shows you how to

tell a good chart from a bad chart and I

think being able to understand how to

when you can look at a chart and just

look at it for five seconds and know

several things about the company your

a very good place and I think that's

where I think that's where that book can

take you you can read that book and

learn how to read charts and that to me

was the big difference that allowed me

to make more money was understanding how

to read charts like I show not

everything you do now what would you

have done differently come day one um I

would have I would have been more

probably autonomously and I think here

this is a that's a really good question

Aaron gosh if I could go back and do

something different I would have

certainly been more uh wise in trying to

seek out counsel and trying to seek out

a mentor I really just kind of ran out

and did it on my own I was fortunate in

the fact that it turned out well but a

lot of people don't most people are

casualties so I would have I would have

searched out somebody who could have

helped me I would have turned to

somebody and and the people I did know

who were trading they were kind of knew

like me so they really didn't have

anything to offer me so I would say

finding a mentor getting a coach

something like that that's that's

probably what I would have done

differently if I could go back great

advice Gerry all right so that brings us

towards the end of the interview so do

you want to share with the listeners a

little bit about when you trigger

trading system and also share with us

where we can find out more about your

services and connect with you surely

absolutely we we started a brand new

trading system in May of this year or

earlier may 2014 and it's called trigger

trade Pro and they can find it at

trigger trade Pro dot-com they can go to

your website and find the link there but

the the the system in essence provides a

set of technical indicators that we have

finagled and we have created our own

system using proprietary indicators

and when all of the indicators indicated

by we bye

and then when all of the indicators

indicate a sell we sell and it has

worked out very well for me over the

years and I was finally I'm not a

software developer I had to find people

who knew what they were doing and I had

to figure out it was a big laborious

process but we finally got it out there

now and we have uh you know subscribers

all over the country here in America

seven countries around the world now and

we we put out daily trading ideas every

single night we have a nightly trading

report that lists usually about a

hundred to 150 stocks that we're

watching for that next day that you can

analyze that night before and in all of

these stocks or stocks that are

triggering within our system they're

getting ready to trigger so that is a

trigger trade procom that's where they

can go to find out about that we also

have a free trading podcast at trigger

trade report com they can just go there

and download the free podcast we just do

a teaching podcast there for brand-new

traders

great and you've got your on Twitter as

well yeah yeah yes twitter.com forward

slash FTM daily is art was our twitter

handle okay great all right

thanks again Jerry and we look forward

to catching up with you soon it was a

great great honor I really appreciate it

thanks a lot thanks a lot Jerry you've

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