our S&P is taken out this 85 in the I'm Stephen clay G and I'm the chief market
strategist of ticker talker and co-founder I've been trading for 36
years I settled on the floor the American Stock Exchange then went over
to the New York Stock Exchange and then went to the Comex and then to the Board
of Trade well I have five key words that I tell anyone who's trading I don't care
if you're a novice trader or even if you're a top professional where I come
from it's very simple it's got to be about consistency
number one is consistency I learned a great story about consistency from a guy
who was trading in the gold pit he was a clerk making $100 a week and he just got
married and he was having a baby and he knew that this was the only time in his
life that he could go from being a clerk to going into the gold pit to actually
become a trader in the gold pit on the Comex and as a clerk he was making $100
a day so a $500 a week back then and he then took the same philosophy into the
gold pit goal was to make a hundred dollars a day after one month he would
then bump it up to 200 so if he lost the hundred he stopped if he made a hundred
he stopped no matter what time of the day it was he took his trading cards put
in his pocket and that was the end of it so when I started trading upstairs and
for an individual at the time I decided tighten it up a little bit so I would
try to make a hundred dollars a day every week then bump it up and then bump
it up each and every week so after the first week 100 the second week 200 the
third week 300 and continually moving forward so to me that's the most
important thing as a trader you don't want to make a hundred dollars on a
Monday a hundred dollars on a Tuesday lose 500 on a Wednesday lose 200 on the
Thursday make a hundred on a Friday and overall your net net in the red for the
week and if you continue to do that you you know you'll just eat up all your
capital the second word that I tell everyone that's super important is about
discipline so the greatest story I have about discipline is I had three thousand
dollars to my name the first trade they ever did was an option that was on the
floor the American Stock Exchange and there was a stock that was right behind
me called American can it was a Dow stock and the stock was trading above 51
and changed I believe something like that and I bought an option it was I
think October and I bought a Feb 50 Cal so
call option is that you're hoping that by the time the some time between then
and February that the stock price would go higher and the Kuril option that I
bought at two and three quarters would be higher than what I purchased to that
the stock started tanking over the next couple weeks and then months and I think
it traded all the way down to forty one dollars a share and my three thousand
dollar investment was actually worth pennies because I kept on buying all the
way down utilizing the whole three thousand dollars and I would never
forget about a couple weeks before the option expired standing on the floor my
head in my hands and a guy patted me on the back and said hey kid go home you
can't turn the machines back on a week before expiration the stock remember
correctly my best recollection went from 41 to like 54 and at 3:45 in the
afternoon right before the markets were gonna close my father walked over to me
who was a floor broker he was a member and he said to me are you out and I said
I'm out because the stock was trading higher and I sold all my options out for
a pretty nice profit he said to me when I came on the floor the exchange on
Monday I found a penny face stop and I said oh okay he said what did you learn
from this I said whenever you have a losing trade you look for a penny face
up and he said no you never average down so to me that was again the fact that
preservation of capital I learned the hard way I got very very lucky and you
basically do not want to average down when you're wrong you're out and you go
back in you can always make it back up again and that was probably the greatest
lesson I ever learned my first trade I learned about discipline the third key
word is confidence that to me is like wake up every single morning and you do
this and trade the my own money for particularly my my whole life you don't
think about it you just go in and you're confident based upon the skills and the
tools that you have in front of you and that's what I built ticker talker for I
built ticker talker and I built all the technology here that's within ticker
talker to give the novice traders the retail trader is the most sophisticated
traders the proper tools within platform that I created the fourth word
is patience as you saw today there are some lows in the day and I'm very
patient waiting for the opportunity to address and wait patiently for those
patterns to set off and then the fifth key word is that you have to have the
passion the passion to do this every single day I'm 56 years old I have more
passion in me now than I did when I first started there's nothing greater
than at the end of the day talking to people and hearing you know their
comments and the trades that they did and how well they did and moreso how
they're learning and how they're fully understanding everything that I designed
in this room and then on the ticker talker platform so to me these five key
words are essential to be able to become a great trade