In our TraderTalk series, we interview some of the most interesting and best performing investors from the worlds of social media, CopyTrading platforms, traditional asset management and private traders. Below are the insights from Lunar Aces (@LunarAces), a popular trader among the Twitter community.

Ace has over 8,000 followers on Twitter. He has developed a consistent system and often shares his insights and trading techniques with others.

AP: To begin, could you give us a bit of background on how you first got into trading/investing?

A few years ago I stumbled upon investing during my first year of university, but due to related financial obligations, I had to step away fairly quickly. Fast forward and during my third year of university, I was trying to find a way to help my parents financially and also escape the 9-5 loophole everyone in my study of engineering was going to get sucked into. I ended up stumbling across some Twitter personalities and got dragged into the realm of trading. I had an immensely lucky trade off the bat and doubled my investment in a mere few days and realized the endless possibilities that trading harbored and fell in love with it ever since.

AP: What does your day-to-day routine look like in running a portfolio?

I primarily day trade stocks, more specifically large-cap options, so my day-to-day routine consists of waking up shortly before market open to chart out common tech tickers I’ve made a watchlist of. During this, I look for the same setups over and over again and focus my list down to a few tickers with the best risk-to-reward and proceed to execute when my edge is present during market open.

AP: When looking at a potential opportunity in the markets, what filters do you apply?

Above all, the immediate filter I apply is sentiment. If there are external economic, financial or federal events that may affect price action, I tend to trade slower on such days or at least until the events pass. Beyond this horizon, I have two main forms of trading – 1. Supply and demand, and 2. Breakout trading. For the former, when scanning for plays, I’m looking for fresh supply and demand zones on larger time frames such as the 1 hour or 4 hour chart and utilizing Volume Price Analysis (VPA) for confirmation. For breakout trading, I utilize naked price action and trend/momentum indicators such as the 9/20/200 EMA, as well as VWAP.

AP: Talking about opportunities, what opportunities and conditions do you think 2022 will present to traders?

I personally feel trading has become more accessible than ever for newcomers due to the plethora of readily available resources and access to mentors willing to help. It feels as if anyone, regardless of their age and background, can come to the market and learn to trade, and that financial freedom is within grasp for anyone willing to work hard and not give up. As for greater market outlook, I don’t partake in speculation, but it seems small caps have been taking an absolute beating for a while now. It’ll be interesting to see how and if small caps heat up and the opportunities they may present.

AP: Are there any psychological aspects of trading that you had to change to grow your progress?

I definitely had to make sure my head was clear when trading. Coming to the markets with emotional baggage from your personal life is a one-way ticket to losing capital. I think it’s a very big hurdle for people to overcome that trading is more of a psychological and discipline-based endeavor than it is else. I’m a perfectionist in some areas of my personal life, and bringing that trait to the market was a no-go because the markets are one area where you have to be willing to take losses and accept the fact that you’re wrong and can be a lot of the time. You can try and fight against this all you want, but the market will humble you very quickly as it doesn’t care about your feelings. The sooner I accepted this and began to work on taking calculated losses and minimizing them as much as possible, the smoother my growth became.

AP: What do you think is the biggest mistake that retail traders make in the stock market?

The largest mistake that retail traders make in the stock market is sizing up too quick relative to their trading knowledge and risk management. Most people come to the market with luxurious dreams of financial freedom, so they ignore the fact that $100-500 a day is more than a lot of professions make in a year. The desire to make millions immediately thrusts people into oversizing with zero risk management and this is where the endless cuts in their portfolio begin. Then follows the oversizing to make it back and this endless cycle of bleeding doesn’t end until they’re wiped out and have a negative impression of the market.

AP: Why do you trade? What’s the motivation?

My parents. I began trading wanting to give them financial relief and that still hasn’t changed even a bit. I couldn’t care less about what I could do with the money, and while of course it can provide me a comfortable, free and relaxing life, it’s them I first and foremost want to give all these things to for everything they’ve done for me.

AP: If you could give one piece of advice to the traders and investors reading this, what would it be?

Don’t rush the process and don’t overthink it. Trading was never meant to be extremely complicated. Find one or two strategies that win more often than they fail and just execute them endlessly. The best trading is supposed to be boring. It’s supposed to be an objective setup that you can replicate over and over again, nothing fancy. If you engrain into your head that trading is a game of probabilities and not perfection, i.e. your winning trades just need to outweigh your losers, you’ll quickly realise the market can provide you financial freedom like nothing else ever will. Past this, don’t ever give up. Learning the ins and outs of trading the market will be toughest thing you ever do, but it’ll be the most worthwhile once you figure it out. Anyone can do this, including you. It’s about heart.

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