Episode 66 ... Dan Shapiro (66:25)
- Return guest (Episode 32)
- First started looking at charts in 2003
- Fast talker, native New Yorker? ... sounds remarkably like Joe Fahmy
- Looks at 60 minute charts exclusively
- Social media the best and worst thing for new traders
- Most new day traders obsess over the one minute chart
- Uneducated, underfunded, no-process bungee jumpers are down on the one minute chart
- "Barry Sanders Effect" -- getting stopped for two yards twenty times a day -->
- Instead you should wait for a hole to open up, run 60 yards
- Most stocks are not tradable
- Get rid of the social media noise
- He's "not the sharpest tool in the shed" [sounds pretty sharp to me]
- He's been trading since 1999, has a lot of screen time
- Netflix and Tesla his two favorite stocks
- Hasn't updated his eSignal in at least a decade
- His charts are covered with squiggly lines: moving averages, Bollinger Bands, linear regression lines
- You need to know where the bodies are buried (areas of supply)
- Most traders don't know what they're being patient for
- [Likes to use football analogies]
- Stocks go from supply to supply (areas of support / resistance)
- FANG (Facebook, Apple, (Amazon?), Netflix, Google) names are market sensitive -- is Netflix weak when the market is strong? Why?
- Don't win the day, win the intervals of the chart
- Is the trade worth it? Distance from one zone to the next large enough?
- FANG stocks have great range and volume ... tradable [i.e., Usual Suspects]
- Six years ago started doing live webinars
- Looks through 500 daily charts every night, finds things "coming out of a range"
- Writes down six to ten ideas every day
- He'd rather drink cyanide than trade the pre-market highs and lows lists
- Everybody wants to drive that fast car, but new drivers should drive slowly
- Newborn babies don't come out of the womb running
- How many horror stories are there of people shorting a pre-market screamer ("Flying Pig") and busting out
- Trading should be boring
- Watching six candles a day (60 minute charts) forces you to be patient
- Doesn't want to be fighting a guy with a $2,000 account who is getting stopped out every two minutes
- Traders have to be humble but also killers, willing to take food out of some other guy's kids' mouths
- Don't turn a paper cut into a severed head
- [He's a fun guy, fast talker, should be in sales, maybe he was, maybe he still is]
- During monthly review, looks hardest at his losing days
- "Don't trade like a putz" -- spot those days you were trading like a putz
- "Ish happens" [instead of "shit happens" ... a Yiddish thing?]
- Advice to new traders: don't be undercapitalized (and max risk should be 1% of account)
- Trades only have three parts: process [method], tier size [risk management], result [trade management]
- Don't risk $1000 to make $300
- "Let me give you the reality"
- Prop firms used to make so much money from commissions, they didn't care about how much risk people were taking
- Only four or five major players left in the prop business ... it's dead
- Game has completely changed -- no money left in commissions
- The money isn't in commissions anymore, it's in "education"
- Prop firms won't give you any capital now, won't let you trade any more than 100 share lots
- Offshore prop firms are bookies
- Avoiding "Pattern Day Trader" rule by going offshore to a "bookie" broker a bad idea
- What's a good amount of money to start trading: A LOT
- "You, my friend, are a commodity"
- If you're doing millions of shares a month, you can negotiate a very low commission rate
- "You are the rising star ... invest in youself."
- Peter Luger doesn't serve his steaks on paper plates
- You need screen time to learn what NOT to do, not what to do [yes, indeed]
- Borrowed money from a loan shark to get his start [I'd like to hear more about this]
- In 2003 he was at Spectrum Securities, bought out by Schonfeld Securities, met Dan Mirkin then
- In 2003 he started using Trade-Ideas [should have Dan Mirkin on the show]
- Trade-Ideas still cheap at $500 a month [it isn't that much]
- He doesn't upgrade anything he uses, 2003 version of Trade-Ideas, ancient version of eSignal
- Turned profitable after 2003, a coincidence with Trade-Ideas adoption?
- Many years of desperate trial and error before he found success
- Has no need to show off, hates the social media circus
- You need to put in the time to learn how to trade ... people will doubt you and you will doubt yourself, but don't give up
- "Some random avatar isn't a superstar, you are the superstar"
- How does he have this level of energy? Lots of cocaine [he's a funny guy]
- www.accessatrader.com
- Twitter: danshep55
