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 Broda (@Broda1995). Broda has been trading for many years and has worked on a strategy that has made him consistent and successful and also has shared his knowledge with those around him.
AP: To begin, could you tell us how you got into trading?
I started out originally investing in ETFs and growth stocks as a teenager with money handed down to me. Whilst doing so, I started to look through how the funds and stocks move and found a love for charts from this. From there I moved to more actively swing trading large caps stocks. Eventually, I moved to day trading around 6 years ago after coming across CamTheMan and joining Noremac Newell Trading. Then eventually moving to Mullins Trading Academy as a department head for swings and futures.
AP: Where do you start when looking for a new swing trade? And has a bearish market affected this process in 2022?
So, I often start by looking at market sectors and or commodities to see if there are any themes or breakouts in the overall sectors. If there are, then it’s a case of comparing all the charts in that sector to find those which are best set up. For more conventional small cap swings I have 5 or 6 main scanners for stocks, depending how the market has been playing (continuation of trends, breakout trades, bottom bouncers etc). Usually, I will go through all of these 3 times a week – examining upwards of 1000 charts.
The market has been a struggle for conventional swings, but there has been a lot of joy playing the short side of trends. My biggest rule for my community right now is “if there isn’t volume there, why would it come?” and I think this speaks volume for how we must look at swing trades currently. Join trends, take profits fast and don’t buy in the hope of a move.
AP: How do you setup for day trades and what are you trading?
For the most part, I’m trading ES (S&P500) futures in my day trades. With the leverage involved there, it is a lot to go through in terms of planning and analysis to make sure you are on the right bias for the day, even before the chart starts moving. I’ll spend my morning examining sectors; FAANG, bonds, currencies, gamma exposures and volatility components to try to see what the market is thinking.
After I have a rough idea of each, I’ll bring up my three ES charts: active trading (volume and market profiles, levels, MAs etc), auction theory chart (balances and their profiles) and finally the weekly and monthly profile chart to find my key areas and trade plans from those. Considering I trade mainly auction theory with a Wyckoff twist to it, a lot of planning and patience is needed for these trades. If there is nothing there yet, scalp mode!
AP: What psychological aspects of your trading did you have to change to be consistent?
You know, I’m not the biggest believer in the psychological aspects of trading. I feel mainly what people claim to be psychology concepts are, at their core, a lack of planning and trade structure. Whether that is “weak hands” or greed, holding too long or not long enough is due to a lack of an exit plan – and exits are equally as important, especially in futures. I think the one aspect, however, would be people burning themselves out. Have a goal, hit you goal, leave. Don’t burn yourself out examining every tick of movement in a day. When you do that you lose your freshness and that’s when you lose money.
AP: What do you think is the biggest mistake that retail investors make in the stock market?
Trading before they know how to trade. Simple as that. If someone doesn’t know what they are doing, hasn’t developed strategies to maximise the set ups or learned the rules to be profitable, they will blow up sooner or later. Learn how charts move. Find a way to play it and back test that method as much as you can until its perfected. Only then can you be profitable in the market. Sadly, education usually comes after big losses and a lot of heartache playing the market like a casino.
AP: Why do you trade? What is your goal?
Honestly, it’s the challenge for me. Being an engineer and being determined to win at everything I do has driven me this far in the market. For me, its not about the money or the lifestyle. Its about doing what so many tell us we will not be able to do. Since joining MTA however, I’d say this goal is equally matched by wanting that for others too, educating and helping my community to reach their goals in this career path – whatever they may be.
AP: If you could give one bit of advice to a new trader/investor, what would it be?
Work out how you want to trade, find someone you admire that does it similarly and just watch them. Absorb everything you can from what they say and do and eventually turn that into your own methods and practices. Don’t follow blindly but learn and adapt. Be your own trader.