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Interview with Pablo Martinez Garcia # 3 WINNING TEAM LEADER

How would you describe your overall experience of the competition? Did you take it seriously or was it more a bit of fun for you and your team?

This time we have approached the WSDT in a different way. We have the experience of the last calls from the WSDT and this has made us face the competition differently. We have managed to keep the account until the last day, doing the best Trading that we could, with the aim of scoring.

It has been a complete challenge for us because although it is not scored by teams, we wanted to give the maximum value to the TradingCero Team members with the live shows that we do every day on YouTube, making them longer with the objective of having a place where they can share their analysis and operations for as long as possible during the competition.

What advice would you give to new traders who have tested the waters of day trading with you in the competition and are preparing to face the challenges of the real world?

These competitions are the perfect scenario for people who want to get closer to the world of Trading to do so without any kind of risk or investment. It is an excellent experience for people who have never done Trading on a professional platform like the one offered in the competition.

Once the competition is over the only advice that I would give a person who has never done trading in real life is to analyze the experience that they have had and if they liked it, take advantage of the Tradenet training packages on offer to get experience of an account funded by a moderate investment.

Did you change your business strategy to adapt to the competition? Did you take more risks, or play safer than you usually do?

Yes, of course. We established the risks for each operation and checked newspapers other than those that we normally have with the aim of making the most of all the Competition’s Trading sessions without being disqualified.

INTERVIEW WITH Ruben Cano and Oscar Malagon #2 WINNING TEAM LEADERS

How would you describe your overall experience of the competition? Did you take it seriously or was it more a bit of fun for you and your team?

The WSDT competition was a very interesting exercise with our community, because it allowed us to work together with them for a common objective.

The competition shows us once again that students must see the entire process, as a trading tutor you don’t lose anything by teaching and demonstrating by example, how you operate in real time, on the contrary, this allows you to create a community of excellent traders, something that we call collective intelligence.

Being a competition, the strategy regarding risk changes. It is easier to work a trading system for 6 days than for 1 year. This also demonstrates that the activity is a business, and the trading systems should be adapted to what is expected of it.

What advice would you give to new traders who have tested the waters of day trading with you in the competition and are preparing to face the challenges of the real world?

Our advice to the traders who are starting out in this business it to treat it as a company, day trading is the most difficult activity within all of the speculation styles, but as we saw together during the competition, it is very important that beyond trading tactics there is a method of working that allows them to get from point A to point B in a systematic and consistent manner.

Another piece of advice that we always give is “don’t carry out lots of different actions”, it’s better to stick to one individual event. In other words, it’s easier to be consistent if you trade every day, the same time, the same tactics, and the same action.

Did you change your business strategy to adapt to the competition? Did you take more risks, or play safer than you usually do?

This was our game strategy throughout the tournament, explain to the community what we were going to do in every hour of the session, but also teach them where they should be looking for these events.

Another thing that helped us a lot was to have an algorithm that told our traders when to continue trading and when they should stop, this I believe was decisive to keeping us in the competition.

Our trading room has at least 5 traders in attendance who do live trading, dictate live entries, and manage positions in real time. This was a very powerful tool for our team members as it meant that they aren’t going to war alone, they have company and advice in real time, from people who have already travelled the path that they want to walk.

Thus, in our trading room our team’s participants got quality investment ideas,
position management to minimize losses when something didn’t work, maximize gains when something worked, and not least, indicate when to stop trading and when to continue.

So, dear traders, how can we help you?
Greetings

INTERVIEW WITH Stelios Stylianou #1 WINNING TEAM LEADER

Another WSDT competition came to an end. This year, I chose not to participate myself with a competition account and focus on helping my students take the first place. And we did it once again. Like we did in every single WSDT competition one of my students took the first place. This wasn’t just luck. We provide our student with all they need to excel in daytrading.

If you are a new trader and you tested the waters with this competition, you got a real taste of what is like. If you really want to pursue this and excel in this field, I recommend to educate yourself, learn the ins and outs of daytrading and face it as a business. Learn and apply risk management rules in every trade. This will protect your account from blowing up. If you have a winning strategy, with risk management rules, you will finish every month profitable. That’s just math. The best way to start is to use one of Tradenet’s funded programs, where the risk is minimum for you. With these funded programs, you get enough buying power to get you started without the need to deposit $25k of your own money, like most brokers request.

Just make sure to follow this roadmap.
1. Learn a profitable strategy. Make sure this strategy gives you over 60% win rate.
2. Apply risk management rules to your strategy to protect your account. Know when to stop and when to take profit.
3. Start small with a funded program and don’t risk $25k from your own money. Trade your account as you would run a business. Know your numbers. Potential profit vs potential risk. Always have a max risk per trade and never break this rule!
This has been my passion for many years and I am really excited watching that new people discover the power of making money on their own terms. That’s what trading gives you. Freedom.

INTERVIEW WITH JOSEPH PRICE | #1 IN OVERALL RESULTS

Describe your strategy during the competition – did you have a plan, or decided to take advantage of the situation on the spot?

I had a plan to get a big win early in the contest and that is what happened. From there on in risk management was the key to my win.

What were the key factors, in your opinion, that helped you to achieve victory?

A black swan of a day in the market for Day 1 helped tremendously. Patience, risk management, and using my go to strategies were key for me.

Were there any key moments that set you on the path to win the competition – planned decisions, luck or crucial mistakes?

The first trades I took on APVO the first day were really home run trades and set my pace for the rest of the competition.

INTERVIEW WITH CHRISTIAN DAVID INGA CALVACHE | #2 IN OVERALL RESULTS

Did you have a plan, or did you decide to take advantage of the situation there and then?

I defined a trading plan whereby I established a risk unit of US$1700 per trade. If I had two stop losses, I would stop and stay within the rules. If, however, the result was positive, I continued for as long as I considered it appropriate.

In your opinion, what were the key factors that helped you to achieve the victory?

The key was risk management and complying with the rules of the tournament, that kept me in force throughout the competition. I also set a goal for the final balance and this is why I didn’t take any more risks at the end of the tournament.

Were there key moments on the path to winning the competition: planned decisions, luck or crucial errors?

Of course, there were key moments, which combined a bit of luck with planned decisions. For example, on the first day of the competition I made a supremely positive trade but as the platform failed, I couldn’t close it, and I ended up breaking even. They then informed us that they did not count this day and that they had postponed the beginning of the tournament. Later, everything was more grounded and as I said before, I fulfilled my trading plan without breaking any of the tournament rules.

For more information, follow the link:
https://youtu.be/wUIRI1tStoM

INTERVIEW WITH FRANCISCO JAVIER REINA VERGARA | #3 IN OVERALL RESULTS

Describe your strategy during the competition: did you have a plan, or did you decide to take advantage of the situation on the spot?

Yes, I had a plan. My plan was based on a daily risk of 3000 USD divided into 2 trades. Each one had a maximum risk of 1500 USD. My strategy was based on range breakouts and, to a lesser extent, on reversals.

What were the key factors, in your opinion, that helped you to achieve victory?

I think my success was based on following my plan 100%. I respected the strategy and the previously marked stops.

Were there any key moments that set you on the path to win the competition, any planned decisions, lucky strikes or crucial mistakes?

Yes, Day 5 of competition. I knew I had to wait for the opportunity to catch a trend, and that's what I did that day. I took full advantage of this trend, and, thanks to that trade, I got 27,000 USD which enabled me to move up to the top ranks.

How to choose the right mentor

Trade coaching is fast advancing. Like shepherds, most of the day trading mentors have blessed many with their advice and tutorials. Others haven't been so lucky with this aspect too.

These mentors have various educational programs and social media platforms that they use to communicate with followers to share their trading experiences.

But it might be difficult to figure which day trading mentor is the best fit for your needs.

Today, we will share some of the profound factors that you must consider before choosing your mentor.

Trading Style/Philosophy

Philosophy is the fortitude of day trading. Every day trader has some form of philosophy or trading style he goes with.

Like football coaches, every day trading mentor has their approach, tactics, and techniques. Every mentor draws this from years of practice and experience.

One of the major mistakes day traders make in choosing a mentor is not figuring out the trading style of the mentor.

Some mentors might be risk-takers, others might be the conservative type. Every one of them works.

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It is important because every style or philosophy must go with the trading layout.

Your budget or risk tolerance might not be parallel to the risk type of trading hence a mentor whose style centers on risk-taking might not be suitable for you.

Assess your trading style and match it with a mentor that fits in that sphere.

Trading Strategy

Another important factor is the strategy the mentor uses. Every mentor has his arsenal or warehouse of strategies he juggles according to a specific trading climate.

For example, Mentor A might like break-in/break out strategy but Mentor B might not like it.

This doesn't mean the strategy is bad or ineffective in general. Everyone uses what he feels is effective.

It is quite interesting to note that some of these mentors have used these strategies for a long time so much that it becomes a major trademark to their coaching style.

It is imperative to read on some of the major strategies. Select what appeals to you, then go for the mentor that tolls this path.

Otherwise, you would always have conflicting views with your guide which will affect your trades.

Don't Follow Blindly

The sure way to know something works is when you have tried and tested it.

For example, all WSDT mentors have happy followers who have tried or used their materials.

The sure way to know if their strategies and techniques really work is when you get the feedback from people who have tried and tested it.

Accessibility

Most mentors are not accessible and it is understandable to a point because some of them have a large number of followers.

It doesn't matter how clear their tutorial might be, there would always be a question you wish they could shed light on.

That is why most WSDT mentors give access to their live trading rooms, watchlist and other platforms where they reach out directly to their followers.

Giving a lecture might not be enough as some technical stuff has to be demonstrated while questions are being answered.

The strong link between demonstration, observation, and practice are important structures every mentor must have in place.

Are WSDT mentors professional?

So, how did we select mentors for WSDT?

We chose some of the best day trading mentors from a broad scope of qualities. Some of them have vast experience, some have unique approaches, some of them are stars among their communities.

A conglomerate of these intrinsic values and different styles of mentorship gives WSDT competitors the best options to choose from

In WSDT, mentors or team leaders have live interactive sessions with their followers. This personal interaction creates the avenue for a mentor- mentoree bonding, which is very healthy for effective day trading skill development.

So, we recommend you to look at the profiles of each WSDT mentor, check out their social media and subscribe to the ones that you found suitable for you.

Check them out:

Stelios Stylianou
Jerremy Newsome
James Mason
Ali Biggz
Pablo Martinez Garcia

Big trade sizes vs profits, is it worth the risk?

“Big risk yields big rewards.”

This quote is one of the commonest statements you would hear in the financial world.

This saying might have emanated from investments with some form of guaranteed returns, which makes sense. Unfortunately, this statement is not always true for day trading in a broader perspective.

The Volatility Factor

Stocks have higher returns and volatility when compared to bonds. This fact creates the impression that the bigger you go in, the bigger you earn. But this might be completely different in reality.

A very important factor you must also consider is that day trading doesn’t involve absolute returns and volatility. On the importance scale, your trade size outweighs your entry and exit when day trading stocks.

Your strategy might be efficient, but a large trade size puts you in a risk zone. Taking large trading sizes can blow your trading account quickly. Your position size is determined by how many shares you take on a trade.

Risk vs Volatility

Risk is split into two aspects, namely: the risk associated with your account and the risk associated with your trade. These two aspects are very important in terms of choosing an appropriate trade size. The risk associated with your account and the risk associated with your trade both converge on the volatility of the stock you engage in.

Many experienced traders try to avoid volatile stocks because volatile stocks are not stable. They can switch in any direction at any time.

It is advisable to put three things in check: your stop loss level, the resulting position size, and your risk tolerance level.

If you consider trading volatile stocks as a bumpy road, then smaller position sizes on stable stocks would minimize your risks and raise your chance of making profits.

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The Correlation Between Trade Size, Slippage, and Volatility

In the World Series of Day Trading, most mentors advised day traders to take it slow and small, especially for beginners.

Some emphasized that small spreads on large trading sizes can ruin your trading account easily.

Timing the market, getting the right fundamentals and technical analysis would be strong signs you must look out for in case you want to go in for a big trade size no matter how volatile the stock is.

Larger position sizes can be difficult to exit and it causes slippage. Slippage is when you get a different price than what you expected from an entry or exit.

Slippage is one main factor you must duly consider with high volatility stocks. When stocks become volatile, traders go into impulsive trading, piling up many stocks to get a quick profit.

This form of trading might work sometimes, but it puts the trader at a far greater risk. Don’t just buy a lot of stocks because they are cheap or their prices fell. In as much as you see this as a great opportunity, also take into consideration the fact that not every stock rises after the prices fall.

Some stocks can take months and even years to bounce back. Small trade sizes spread across consistent performing stocks is your sure bet for good earnings.

Final Thoughts

Your risk and reward parameters are what set the boundaries for your trading size. You can decide to go in for smaller trade sizes with large-stop loss or take large positions with smaller stop loss as a way of managing risk.

One of your main goals must be patience! Like a lion hunting a prey, wait for the right chance where the stop is small, pounce on it, and the reward would be good if everything works right.

The correlation between high volatility and returns should not be the only fundamental determinant in going in for trade sizes. Every single trade would have different parameters to assess risks.

Pros and cons of news trading

News trading is a huge umbrella that encapsulates several trading strategies. It is the core ideology of many trading strategies used in day trading today.

What is news trading?

News trading is riding on news that causes waves on the financial market. News can drive price movements up or down and this sets up a trend.

On the other hand, a trend can be generated by several factors of which the most fundamental is news.

Is news trading popular among day traders?

News trading is one of the most common techniques used by day traders.

Everyone is in one way or the other affected by what is happening around us, especially the financial market. It informs the day trader or investor and leads him in a certain trade direction which causes a certain trend of price movements.

Every day trader uses the news to trade in one way or the other. It is mainly because news generates trends in price movement as we stated earlier.

It is, however, a bumpy road to base your trading solely on this trading technique because it doesn’t thrive on solid technical analysis.

Let’s take a look at the scenarios of when to use this technique and when not.

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Is trading new and trends a good choice?

News trading is not a stable technique. It fits best into situations where there is major news hitting the market. To paint a better picture of how this technique works, let us see some of the pros and cons of it.

Pros

Quite simple to use

Unless you want to use news trading with other indicators, it is one of the easiest forms of trading techniques. Most beginners in day trading prefer this technique because it doesn’t demand much technical knowledge in a broader sense.

You just need to be well informed with news or reports from authenticated or trusted sources.

Quick profits

Most day traders use this technique to make quick profits from the market. Traders try to get the best out of it before the tides subside.

For example, ROKU was a major buzzer in WSDT I. The report on the company’s earnings caused an upsurge in price movement and trends.

So, competitors milked a lot of good profits from it during the WSDT.

Versatility

News trading can be used in various spheres and areas of trading. It is not specifically limited to day trading.

News affects everything in the financial market, because of this, news trading can be used in different types of trading, stocks, and commodities.

The versatility makes it a top choice for many traders who trade on different markets.

Cons

High risk

News trading is a high-risk type of trading. This high risk emanates from the fact that trading on elements can take a twist anytime. Sometimes predictions can be wrong and things might go south. It is certainly not for the faint-hearted.

Unstable or unpredictable market

As we explained in our first point, the market can take a swing at any time, and prices may move in the opposite direction. The instability of this type of trading is what makes it high risk.

Seasonal

Your chances of earning better profit will dwindle in certain financial seasons (nonfarm payroll, earning season, etc.) when certain reports ‘shake’ the financial market.

Most traders see this technique as the kind that you pick out of your pocket when the season is right.

Final words

News trading is a good fit for short, quick earning type of trading but it comes with great risk.

Another important fact to consider is that it is seasonal, so it is not very profitable to use it when there is no major buzz in the financial market. It thrives on an authentic voice’s prediction or anticipation of a major event.

Traders usually combine it with different trading strategies in major competitions like the WSDT to be on a safer side.

If you are a beginner, it would be an attractive side for you, since it requires minimum technical knowledge and skills to use it. But it’s also advisable to calculate the risks and buttress it with trusted indicators.

Gap up/Gap Down Strategy for WSDT

Gap up/Gap down strategy is a widely used day trading strategy that consists of two major components.

Gap up occurs when the market opens up, which is at a price higher than the previous day’s closing. Gap down simply means when the market opens at a price lower than the previous stock.

When does Gap up/Gap down occur?

Gap up and gap down primarily occurs due to a news event that affects the price movements of stocks.

Usually, when there is a gap up, day traders tend to sell their stocks. This means the gap that was created previously as a result of the price difference would be filled.

On the other side, if there is a gap down, the gaps would be filled because day traders usually want to buy these stocks. Gap downs usually increase the demand for stocks.

Gap up/gap down, as I hinted above, is fundamentally driven by news or major events that buzzes the stock market.

Gap up is also know as a bullish gap while gap down is known as the bearish gap.

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There are various types of gaps in the gap up/gap down strategy.

The types of gaps

Breakaway gap

This type of gap occurs during the commencement of a trend. The price breaks away and creates an interval from the previous closing.

There is more efficiency in a breakaway gap when placed side by side with the previous trend.

Runaway gap

The runaway gap happens during the middle of a trend. This indicates that there is more room for trade on the stock market.

Identifying a runaway gap can be done by analyzing the overall trend in the markets. It is more effective if it coincides with a breakaway gap. It is further ascertained by an existing trend.

The runaway gap should give you a further indication that there is more room for prices to climb up.

Running gap

This type of gap is a route to the final step. At this point, there is a gap created after the establishment of the trend.

This is very important because it indicates the last run before prices begin to merge. It can also indicate a change in the trend. This does not fully indicate that the trend will reverse.

Pros and cons of using the Gap up/Gap down strategy

Pros

  1. Gap up and gap down is relatively simple and easy to use
  2. Fits well in stable market conditions
  3. It is a good strategy when used to during a major buzz on the financial market
  4. It allows traders to build an automated trading solution based on market conditions

Cons

  1. Gap up/Gap down strategy cannot be used in every market because some of them run for 24 hours
  2. It is blunt when your broker doesn’t provide you with a good fill of prices
  3. Only stocks with good volumes are reliable with this strategy

How was Gap up/Gap Down used in WSDT

The gap up/gap down strategy was widely used in the WSDT. It helped competitors to gain a good grip on the market.

The market was quite choppy during the period in which the WSDT I was hosted. Competitors needed to use a strategy that runs well on such terrains, and Gap up / Gap down was a good fit for most of them.

The WSDT offers traders a good platform to connect with other day traders with varying trading experiences. It gives day traders a golden ticket to a myriad of opportunities for day traders to sharpen their skills and be mentored by world-class trading professionals.