This book is in the Market Wizard format as the author interviews successful and profitable traders at many stages of their journey. Most traders in the book trade six figure accounts and some are millionaires. Many of them trade penny stocks, but are sensitive to the volume and understand the dangers involved in that market, because most of the companies are scams and the pump and dump is the primary reason that these stocks rising quickly. You will also get great insight on successful methods and tactics from many popular traders on Twitter.
Here are some key takeaways I got from the interviews in this book.
- The author Brady Dahl has excellent interview skills that likely stem from his professional television writing career.
- I felt the authenticity from the contributing traders as they discusses the amazing emotional highs and lows that come from trading with a big account.
- The traders in this book were not afraid to trade big and risk losing big when the odds were in their favor.
- Many of these traders had life changing profits that enabled them to be financially independent.
- They all had specific edges for how they traded and specialized in specific price patterns, setups, and markets.
- Technically, traders on Twitter can’t give out specific stock recommendations unless they have specific professional certification called a Series Seven (although some people work around this with disclaimers).
- One trader setup multiple trading accounts when he started out with a small amount of capital to avoid the pattern day trader rule, which states that if you have less than 25,000 dollars in your account, you can’t have more than three day trades a week.
- Nate from Investors Live openly shares how he was fined from the SEC for promoting stocks he was buying, and what he learned from it. Today he trades a lot of NASDAQ stocks and is trying to get comfortable trading larger while growing his capital.
- Many of the traders suffered significant drawdowns and lost money because they traded too large and didn’t cut losses.
- Most of their friends and family don’t understand their careers, what they do, or how they are able to make money.
- For the traders in this book, trading is a passion and and a sport. They continue to trade and set higher financial goals to constantly challenge themselves.
- There are many ways to trade profitably. You have to find the style, method, and edge that fits your own personality and risk tolerance levels.
- Money is just a tool to allow you the time and energy to devote to achieving a happy and balanced life; it will not create your happiness for you.
I enjoyed this book. It gave me a look inside the world of active traders that were able to stick to their goals until they achieved life changing profits. Great job Brady Dahl on Momo Traders.
