Chatting with a 23-year-old Stock Trading Millionaire interview
"A stock trader or equity trader or share trader is a person or company involved in trading equity securities. Stock traders may be an agent, hedger, arbitrageur, speculator, stockbroker. Such equity trading in large publicly traded companies may be through one of the major stock exchanges, such as the New York Stock Exchange or the London Stock Exchange, which serve as managed auctions for stock trades. Stock shares in smaller public companies are bought and sold in over-the-counter (OTC) markets. " - wikipedia
Yeah, it’s a lot of people get that idea very confused. They Confuse me with the stock broker. But there’s a huge difference between them a stock broker somebody that allows that kind of purchases shares for you. You give them a call they purchase itself for you and stock traders somebody who does it themselves, you know for him or herself. Yeah, you’re like buying and selling stocks like the same day, right?
Ah, not always I’m sometimes buying it and holding for two three weeks. Sometimes I’m buying it and Buying the same day selling it the same day. It’s just different strategy some days. I’m day trading some days I’m swing trading it just it all depends. How old are you? I’m 23. Oh Wow
So this could be 23 year old. Are you a millionaire?
Yeah, this would be the title then. So basically I started trading when I was 18. That when I first got into the market and when I first started I literally had no idea. What I was doing was just like hey, I want to dabble into stocks. I want to make money and I know so many people make money off stocks. Hmm
So I was like, let me jump into it I had about 20 grand saved up at the time and the money I had saved up. What I did was I put all of it into the market without having any knowledge. So I took all my monies rusty. Yeah, but at the time, you know, you’re young you kind of wanna you think you know it all.
So I’m like, oh, I know everything I know what I’m doing. Let me just take all my money and dump it into the market.
Okay I dumped in too much was that how much is what how much did you have that you 2010?
That was all the money. I had to put one every day exactly everything Wow. So now once I put everything into the market. Next thing, you know is I made a few trades. I remember the first stock I bought was JCPenney. So the first trade I made was around It was it was a January because that when my birthday is and I turned 18 I opened up a brokerage account and I bought JCPenney and I made 25 hundred on that trade so now. After that, I kept taking all my money and dumping it into one stock. No risk management not okay. Hold on. Why did you choose JCPenney? Absolutely, no reason. I just saw the stock and I was like, oh, I think it’s a good buy and I bought you spam. Why did you think it was a good buy?
I just looked at the charts and I had no idea what he was telling me but I just felt like it was a good. Buy and I and I put money into it anyone else. Yeah, like with me not knowing anything I see like what it’s normally and if its low then I’m like, alright, it will probably go back up. It was something like that because I know retail at that at the time was having a huge problem. Retail was falling. So I was like aha JC Penney. They’re never gonna go down. Let me buy them. So I bought them and next thing, you know. They went up two days later and I made about twenty five hundred bucks and you sold it. Yeah, and I sold that made twenty five hundred bucks now. Oh you put 20k into one stock Wow and it went up I think interesting new percentage and as they went up it might before you when I’m twenty-five hundred bucks is the fee what were you doing trade?
What I Scottrade Scottrade Okay, that like one of the many yeah Scottrade. They got bought out by teaching now, but at the time, you know, it’s like $15 per traders. It was seven seven dollars of trades 7 2 by 7 to sell. Okay, no percentages or anything. No, no, no. No, okay. There’s no just seven seven four. Yeah, that about us when you’re 18 Yeah, so I’m in high school right now. Cuz I like I said, I have an early birthday. So I just made 2500 off one trade. Yeah, so now I’m like, wow, I’m in high school. I made 2500 Oh man. This is it.
This is what I’m gonna do for the rest of my life and it kept going well for me. It was all beginners luck
So my account went from the 20 grand to 35. Okay a matter of two months. Then you put 35 into one thing everything into one thing. I knew no risk management. I’d had no idea what I was doing. So it was working for me right like every book I’ve read on it says don’t do that don’t
Exactly, but I didn’t read anything. I just dumped my money into that one stock over and over again
The suns like too good to be true. Yeah, and then I mean obviously everything that too good to be true goes downhill. Okay, so now once I built my count to thirty five thousand in two months. What do you think happened? Next you the loss at all? I lost it. All everything went down everything everything went downhill in a matter of six months bad trade here bad trade there bad trade here bad trade there and everything just went down and my account finally hit about 2000 bucks. Okay in a matter of four or five months and now once that happened.
I know so many people that actually make money off stocks. So let me actually keep focusing on this. I didn’t know what I was doing. So now let me take a step back and actually try to learn the right way. Because in the stock market, there’s always a winner and there’s a loser. So if I lose 2,000 you made two thousand. So it’s like you’re kind of taking my two thousand from me and the broker just makes his or her Commission. So I was like, okay. I lost it. Somebody beat me they beat me at the game. So I just need to get better Yeah, so now long story short. I for the next six seven months.
All I did was I was focused price Li just on the market. Okay, I just focus. Directly in the stock market how its moving. I was watching YouTube videos, whatever. I was watching. I would apply it with real money. So yeah, you got down to two thousand. You’re like 19 or still 18 still 18. Okay. Um, did you ever have a job?
Uh, yeah, I was doing delivery at the time. Okay, so starting from 2000 you worked way back Oh, yeah, so starting from 2000. I worked my way back up, but I Started my account in the next January when I was 19. Hmm. But now when I restarted my account I started with started with 5,000 okay, so I saved the money I had 5,000 and now when I had 5,000 I kept trading and he put it all into what. Now I was a little bit smarter. Okay. Now I knew what I was doing, huh?
So instead of me putting all 5,000 into a trade, whatever what I was doing was I was taking smaller positions Hmm, the purpose of that was for me to learn I was like, You know instead of me putting 5,000 and losing five six percent Let me only put a thousand now if every five six percent on a thousand fifty sixty bucks. But Im getting the learning learning experience, okay?
So now once I started doing that I gave that about two three months and. I would learn so many new things on my own like, oh, wow when this line crosses that line the stock moves up Yeah, when this goes here the stock goes down. So I started picking up all these things as I was reading books because I was reading and then I would apply it Wow. Now as that started going more and more I was like I need more money Hmm. So the best one of the best things I ever did was I open up a credit card when I was 18, so. When I opened up the credit card, they allowed you to have balance transfers. Mm-hmm. So what I did was I took a cash advance check which it’s only a 3% fee. It’s not like 25% fee. There’s a three percent fee. You don't pay for 18 months. So I took that and I had a twenty thousand limit. So I took fifteen thousand out of that. To put it into the market Okay, because I was like I was like I need more money. I five thousand is enough. I need to diversify our map my account and things like that.
So once I took all of that amount, I just started training my first year wasn’t the greatest I made money
But I think it was maybe I made around 20-some thousand. It wasn’t this is all short-term stuff all short-term Yeah, all short-term and now you’re a millionaire. Yeah, it took me. Three years by twenty twelve million. Was there any big break like where like Yeah, I have you a good I had big breaks with gold last year gold. Yeah in 2017. Ah gold this ETF for gold. Mmm. They were spiking up like crazy. I remember it went from like 18 bucks to 80 dollars in a matter of a month. So every day I would be trading it Wow.
It would go up and I was margining the whole trade margin is when you borrowed the brokers money. Why was it going up? You thing? I it was going up at the time. I don’t remember. I know the US dollar was taking a hit. I don’t remember the exact reason it was I was going it was going up. But I know the US dollar was taking a hit. There’s a lot of stuff going on with the feds and yelling and interest rates, which was so many factors. There’s a lot of factors. Yeah, but it was just on a solid uptrend. So I was like just buy it is always a gamble at the end of the day. Not really. It’s not a gamble. That where a lot of people are wrong. They think stocks are gambling but the way you have to look at it is you have to look at it from. An aspect where how much you’re looking to lose and how much you’re looking to make?
Right. So now think of it like this, let’s say you make 10 trades, right?
You make the total 10 trades each trade. You have a ratio of three to one. Meaning you make 3,000 you’re right and you lose $1 when you’re wrong Okay. So now then out of those 10 trades, even if you’re right only three times you make nine. And usual if you’re wrong, I mean you lose seven you see what Wall Street. Yeah. Yeah. Yeah, that broken, right?
Wolf of Wall Street is yeah. They’re brokers. And oh, yeah. Yeah, they just. They don’t care whether it goes up or down there. They just get the Commission exactly like that That was how they made McCaughey part.
Yeah, but yeah, he so but he you know, he claims no one can knows whether it’s up or down Its relatively impossible for you. Don’t know if it stocks when we go up or down Yeah, so the whole concept of it is to manage your trade. Yeah What do you think of Bit coin I?
Think personally, I think it has it has long-term potential. Mmm. I just think right now Crypto is being used more. So as a way to make money Yeah, and as a form of currency, of course, you know, so with that being said there’s too much fluctuation is going on but I do think crypto itself will be big and I think one of the biggest reasons is blotching. Block chain is enormous. Yeah. Yeah. Well
Do you think Bit coin will eventually replace the dollar?
I don’t know if there will be Bit coin cuz I don’t see anything special about Bit coin, but I do believe. Long run crypto will have a place in the market. I don’t know if it’s gonna replace it. I think it should because the dollar just value just keeps going down. So it’s relatively that where the dollar keeps going dollar’s value keeps going down inflation. If you look at what the relic could have got gotten you a hundred years ago poster now again, it’s insane. Yeah, interesting. Do you think the banks will regulate Bit coin banks. That the biggest problem banks don’t want Bitcoin or crypto to be a big thing. Right?
But I Personally feel like it just eliminates so much stuff like paying fees it’s like you have to pay fees to take your own money out and. Banks don’t have control which is the biggest thing that they’re facing which is why they will try to regulate Yeah, but it’s just tough to see how they’re gonna regulate it. Yeah. Yeah because its blocked chance. It’s like that the weight of the other way exactly the way they did I know change try to. Regulated was they weren’t allowing any transactions to Cohen base go through them. Mm-hmm. So they have they have contact.So if coin base is one of the brokers to you know, buy bitcoin and stuff.
So if you made a transaction to put money into coin base, they would block it. Hmm I don’t know if they’re doing that now, but I know they did that a few months ago. Hmm. Do you own a Bitcoin? No, I have like coin I have ripple and I have you doing Bitcoin. I don’t have any Bitcoin one week. I’m not a big fan of Bitcoin the rock star, isn’t it?
It is the rock star but a long term, I don’t see anything special in it. Hmm. I Feel like the biggest ones probably gonna make it. It’s like, oh not in the long run it’s probably I personally feel like it’s probably gonna keep going up and then. You know eventually once it does come become a form of quantity, I don’t see anything special in Bitcoin. Well, what difference does it make its all electronic, right?
Yeah, but some of them is some of them are quicker Some of them have more features more benefits things along the lines of that. Mm-hmm. What’s the best book?
For someone just getting in for them to start one of the dead folks I read was. Trading for a living. I don’t remember the authors name. Okay. Trading for a living. Yeah, I think that actually a very good book
I'll link that in the description is actually my very good book with my Amazon link Yeah, that actually a very good book train you have a million dollars in cash or assets or now stocks right now my brokerage account. I have 600 in my brokerage account from building that up and I constantly keep taking it out now, I have other cash that I’m sitting on. Mm-hmm where I’m looking to invest but now this is my dilemma with investing right now, I personally feel like the markets going to crash well within the next year or two.
Doing all right, and I feel like it’s very extended. So what I want to do is I’m trying to accumulate a lot of cash. Yeah, and. Save it purchased, you know a lot of stuff at that time. How why do you think is gonna crash? I just feel like it’s very extended. It’s for extending yourself out like it’s kind of like a
Extent, what’s I mean?
So we we’ve went through we went through cycles in the market where. You know when the market runs for a very long time it needs to pull back or come into recovery mode recession. But not a session, but it needs it needs to come into mode for recovery mode that hasn’t happened but now the factors I think that going to drive us into hitting recession or - one is. Student loans. Yeah student loans are it’s a very high and they’re not. Yeah, I don’t see them getting paid back. There’s no jobs out there for them to get paid back. Yeah, and second auto loans auto you can literally anyone can go buy any car without having any proof. It’s the same thing that happened with the housing market in. Oh seven, you know you dent need to provide proof of income and proof of employment anything. So people are. You know putting on more depth on them and they’re purchasing these vehicles which is kind of out of their reach.
So I feel like that market is kind of. Oversaturated so then were gonna need another bailout from the government. Uh, We got to see what’s gonna happen, I just feel like it’s everything is building up. And as soon as one thing is pulled out anything’s gonna fall anything. That like I Ivan Were so a year two years and this is a crazy part. I think the only reason it hasn’t happened sooner it’s because of Trump Wow, I think Trump has been doing a great job with the. Like Peter car. Yeah. No, I don’t know agree with a lot of stuff he does but with the economy. I think he has been bringing it up.
You know, if you look if you know this with the market and housing market, everything’s been going up. That a great office. Yeah Hmm. What are some I guess techniques. So some techniques that I feel like a lot of people mess up on. Mm-hmm is people go right into indicators. Such as the RSI MACD and they look at that to buy or sell stock. I think you should gather as much as information as you can from the chart. Mm-hm and see the trend. Stop see what direction the stock is going yet, like did a feeling so it’s kind of like this. It’s kind of like this. Right and this is like the easiest to explain it. So think about it as in you’re driving from here to New York. Right, so if you’re driving from here to New York.
You’re gonna take breaks, right? You’re gonna because it takes for three days, I think Mm-hmm, right, so you’re gonna take gas stops. You’re gonna start to sleep and things of that nature. I Stock is very similar. You have to understand where its headed. You have to know. Hey the stocks headed from here to Miami here to California. I mean here to New York here to Philadelphia. Whatever. What is the trend? What is the direction the stocks going yet?
How do you know where it’s hurting?
All right, when you look at the chart it shows you if it’s going up or down so there’s really three directions. There’s an uptrend meaning starts going up. There’s a downtrend meaning the stock is on its way down and there’s a sideways trend and use trading between a range Okay. So once you understand the overall. Trend of the stock. Mm-hmm. Now your job is to focus on when it’s gonna take a break. Yeah' When is it gonna pull over for a gas stop when is again?
Uh, but when is the person gonna sleep when is when its stopping to sleep for quite some time?
That the next step. You have to look at what people do is they look at look at the RSI or MACD or technical indicators, but they don’t know the trend. They don’t know where the car is going Yeah, if you know where the car is going. It makes the whole process that much easier you think Tesla will keep going up Teslas very tricky. Yeah, very tricky very tricky because um Elon was very tricky. Yeah. He just started some shit like a week ago Yeah, he made that he made the tweet. Yeah, the tweet is uh,
He’s gonna get in trouble for that. I feel like he shouldn’t he can’t really make that tweet. He couldn’t put that tweet out. I didn’t even see the tweet. I just saw like an article. He just wants to go private private. But you can’t announce it because now what if they really are going private let you say hmm. It’s gonna boost up the stock price to four or fifteen or whatever. He’s taking in private at so now. Anyone can literally buy the stock and make money off it if they go private Wow, which is why he shouldn’t have made that tweet Yeah, it goes against SEC rules for him to do so
SCC.
SEC there, they’re like the cops of the stock market Wow. What are some no nose for SEC like insider trading? I had biggest one insider trading, uh People get two people to do it people get away with it. Well, that a big no-no Yeah, you can go to like prison. Yeah, a lot of people have you done any shady shit. I Don’t know.
Yeah, great. Great place to ask that. Yeah a lot of ah No, I’ve gotten there’s actually a funny story about that. There’s actually a funny story about about that thing with the company. I’ll talk about it right now. Mmm-hmm So, yeah, actually I didn’t do anything shady, but I did get into trouble for something. So this was two years ago and there’s a company called Sun works right there. They they work with solar solar panels and snoring so what I did was I was invested into a stock and the company was getting a
project from Fresno a ten million dollar project Mm-hmm, but nobody knew about the project. How did you know, so now I knew that they're bidding with the city.
They’re bidding with the state. So if you’re bidding with the state or city, its available to the residents
Right, so I figured that out that it has to be somewhere out there. So I kept digging digging I made accounts in this and that to you know. Get access to the bidding portal and I finally got access. Right and I saw that they actually benefit ten million and they had the job. Where I messed up was I actually posted it on Stock Twits so Stock Twits is a Twitter for stocks, stock trade Yeah, so I posted it on Stock
Twits.
Now what happened the people on Stock Twits started calling him Fresno They started saying hey when were not there gonna win the job. When are they gonna get the project and now they got fed up with it. Because they’re dealing with the public company so they cancelled the contract. Now as they cancel the contract the stock plummeted. Yeah, and now I get a call one day from this CEO of the company. Right his name was Jim. He...and I remember I was driving and I get a call from like a California number and I’m like California and I pick up he’s like hey. This is Jim. Is this Umar speaking? This is Jim from Sun works Yeah. Hey Jim. He’s like yeah how you doing?
How’s everything? I just wanted to update you about Fresno. You know, were still working with them, but you know, please stop posting stuff. It’s like it’s really getting to them and they’re there. They’re probably not gonna give us the project if they keep getting bothered. So, please stop putting information out there and please don’t tell anyone I even called you so. That was really it but that that wasn’t anything with SEC but uh that that turned out to be a huge thing. How did you first hear about some words? I was just trading it just popped up you scanned. So you do something called scanning when you scan you’re looking for certain indicators certain stocks?
So when I was scanning some Brooks popped up. Yeah as it popped up was it kind of like a penny stock?
No it was. This is thing with penny stocks lot. Uh The actual term of penny stocks or any stocks under $5, right, right. I look at penny stocks anything under a dollar. So it just depends on where you’re going
And with the stop is priced around 250 280 at the time. So technically yes, it was a penny stock. But in my book it wasn’t couldn’t you like post like, oh, I think. So and so is going down on stock twits and be like not a better sell like people do that.Try to get people people do that. why if you’re somebody that gets influenced by others easily Yeah, stay away from stock - it’s okay. Because now if you’re going to stop - its you’re gonna see crazy comments. Hey, the stocks can go to 10. The stock can go - ah, yeah, so anyone can say sure Yeah, so what’s the point of stock twists?
There or there is that 10% Of stuff that that is valuable out of the hundred Yeah, there’s very few stuff that is value like somebody does research and they find something so they post it. But it’s very little stuff. So it sometimes what did you go through it with your knowledge. You can come filter out all the bad stuff. You have any other investments? Uh
I have stock market lab I am working on an app. I do have money, you know into tech stuff that I don’t make no I really can’t speak about right now. Okay, they are like I’m trying to get into tech industry. Its related to investing know. I want to make it like it just a simple like blowing up insane I have like a like eight YouTube friends that have their own like a little game app
Yeah, there’s this that app call. What’s that? What’s that company called? Twitch. Twitch is blowing off
Yeah, but just blown up. I’d still need to get into that which is its insane for unit. Twitch man. That something else.
Hmm, you have some stalking twitch note. Which is owned by I believe Twitter know Amazon Amazon owns him Amazon owns twitch, okay. They the Amazon bought at twitch. So Amazon owns. And so if you own twitch you own Amazon. Yeah Amazon. I heard took him like 10 years to be profitable. No, they were profitable all the time. Only thing is they would take the profits and reinvest it right all in a research and development. You have some stock in Amazon. I traded it, but I’m not really I don’t long-term.
I’m not even anything long time right now. How did you find me through just three?
