My Trading Mentors or Teachers

From my personal experience so far, the greatest trading mentor I found is Trader Florida.

I don’t want to know his real name or who he is or whatever but the service he provides makes me feel like I am going to a trading temple or a church and that he is the pastor, in fact the one that truly cares about me. I have been through so many so-called trading champions on twitter; one of them turned a million to a trillion or whatever but they do not have time to truly care about what I am learning. They never ask me a single question or respond properly to my questions after being with them for several months. TF has live webinars and recorded videos, market reviews everyday.

Ask anyone who has been with Trader Florida, they will tell you a beautiful story about how he changed their lives. He is not just a trading mentor, but some kind of Gandhi or Martin Luther King. He inspires me, and pushes me to me a better human being, not just a trader. I don’t know how to say this but in him, I found an amazing individual who truly cares about shaping my future, not just help me make money short term. He wants me to understand the concepts and helps me define my life with the knowledge I gained through him. I love his sayings and my favorite is “When you know that you know, that’s when you truly know.”

For macro and real-time trade alerts, I like Northman Trader. What I like about NT is that he provides a solid macro picture backed with thesis and also affirmations to my convictions. NT also teaches about account strategy, risk and account management etc. I love reading his blog posts everyday. It just helps me see things differently and stay on top. His real-time twitter alerts helps me keep an eye on the market while I am at work, staying ahead of the curve. Always love his humor when I can understand what he is saying. Since I am not as smart,  I do feel lost often :) Overall, I love learning from NT and in my mind, he is second only to TF and  truly cares about teaching his members.

This is not in any way a recommendation for personal gain. This is just my experience. Sometime in the coming weeks, I want to write more about both of my mentors because I do think there is a lot more to each of them than what I just said. I will keep posted.

Notes of Jesse Livermore

One of the traders I admire told me to print Jesse Livermore Notes and read 100 times until it becomes part of me. Not quite 100 times yet but I did go through them. At this point, I am not sure if it worked for me but I could see that it will subconsciously help me become a better trader and act like one, at some point or another.

I believe this is extracted from Jesse Livermore’s book How to Trade In Stocks

Words of Wisdom from Michael Lamothe

Michael Lamothe is one of my favorite traders/mentor’s on Twitter. He has solid knowledge on trading and always provides valuable information for free on his website. I love going through his ‘State of the Market’ NewsLetter every week. It is people like this that keeps me going.

It’s just useless if someone is making millions of dollars and they don’t teach you the trade. All they do is charge a subscription fee and tell you the buy points. How long can that last right? Well, I agree that might work for people who are not interested in learning the art of trading but if you are interested in being a good trader, find someone who actually responds to your questions (at least on twitter if not via email). My sincere advice is not to blindly subscribe to some millionaire’s service and hope that’s the beginning of a winning strategy. From my personal experience I can tell you that you must find a mentor you respect and can answer your questions at least one a week or a month.

Here are the awesome trading rules from Michael.

1. Have a plan & stick to it

2. Have conviction to see the plan through to the end

3. Position sizing is very important for both limiting risk & maximizing returns. Have a sound strategy.

4. You never really know what is going to be the big winner. Accept it & follow the trend.

5. Stick with the leaders (PCLN, AMZN, LNKD, GOOG etc..)

6. Have a strong set of time test rules & then add to them as you gain experience.

7. Following 1-6 will solve most of your problems

Quote Of The Day: “Self-distrust is the cause of most of our failures. In the assurance of strength, there is strength, and they are the weakest, however strong, who have no faith in themselves or their own powers. ”

Technical Analysis on YouTube

I recently started watching videos on technical analysis on Informedtrades YouTube channel. Someone on twitter recently recommended and mentioned that it is one of the best resources to learn about technical analysis.

I learn quicker watching videos or hearing audio than reading books. So, this is perfect for me. What I also like it that these videos are 15-20 mins long.

As an aspiring trader, I don’t have much experience but one thing I can tell you is, these videos are extremely helpful in gaining better understanding of technicals. At least, I am more confident about charts now than before I watched the videos. After watching the first 3 videos, I decided to watch rest of all the videos.

The video series starts with Introduction to Technical Analysis and from there most of the videos have numbers to follow.

Quote of The Day: “Try to use difficulties, setbacks, and imperfections as a stimulus to creativity whenever they arise. When you feel trapped, like a fly bumping against glass, look for a novel solution. Fly some other way!” - Dr. Norman Rosenthal

Good Options Traders Familiarize Themselves With Greeks

When I started trading options few months ago, no one emphasized the importance of understanding Greeks and Implied Volatility. Perhaps these old timers I followed have an understanding and probably thought it as an obvious thing that new option traders should learn. It definitely was not too obvious when I am making money. The only time I started paying attention was when I started losing money though the stock price is moving up – could have been because of the decrease in Implied volatility post earnings, time decay/theta burn etc.

The single most important resource has been my personal options trading experience so far, observing that Greeks change with events, earnings, speculation, market (sometimes) and lot of other elements I don’t probably have understanding at this point.

The best resource I found to help me understand these greeks is a series of articles on Investor Business Daily’s options column. For your convenience I am providing the direct links here so you don’t have to go to the IBD and spend time navigating.

1) The “Greeks” – What Options Traders Need to Know Part 1 – Delta

2) The “Greeks” – What Options Traders Need to Know Part 2 – Gamma

3) The “Greeks” – What Options Traders Need to Know Part 3 – Vega

4) The “Greeks” – What Options Traders Need to Know Part 4 – Theta

5) The “Greeks” – What Options Traders Need to Know Part 5 – Rho

6) The “Greeks” – What Options Traders Need to Know Part 6 – The Greeks of a Straddle

I am not saying that you have to master the greeks to trade options but personally I feel by understanding them, I have better chances of taking calculated risks and could eventually become a better trader. It’s all about the time you spend understanding, investigating and learning through experimentation.

What I am currently doing as an experiment is observing the changes in greeks every single day for PCLN October 1000.00 Call Options. I created an excel spreadsheet to record the greeks every single day after the market closes. I will post my findings in few months.

Quote of The Day: “Look within to gauge your worth rather than depending on institutions or the opinions of others, for institutions rise and fall, and fashions come and go, but a good sense of your own value will see you through life’s ups and downs.” - Dr. Norman Rosenthal