Mossy Trades: A Journey from Corporate to Trading Success
Introduction
Welcome back, everyone! Today is a special day as we have Mossy Trades with us. Mossy shares her trading journey, from her early days of exploration to finding success in options trading.
Getting into Trading
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Mossy first explored trading in May 2018. She had no idea where it would lead but wanted to learn something new.
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She saw people investing in the market and wanted to be part of those conversations.
From Investing to Day Trading
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Initially, Mossy started with investing, buying stocks here and there.
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Realizing that with her account size, investing would be a long-term goal, she switched to day trading.
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She learned about day trading through YouTube videos, watching other traders and realizing it could be a viable career.
Learning Resources
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Mossy found YouTube valuable but had to sift through the content to separate the useful from the "BS".
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She also read a lot of books, which helped her gain a better understanding of the market.
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Spending screen time looking at the stock market and its daily movements was crucial for her learning.
Identifying Useful Trading Content
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Mossy advises staying away from showy trading content that focuses on material gains.
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Instead, look for videos that focus on education, such as trading strategies and basic concepts.
Leaving the Corporate World
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Mossy got a degree in nursing but realized it wasn't for her. She then switched to IT and worked in the corporate world for three to three and a half years.
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She found the corporate routine unfulfilling and wanted to find a career path that gave her more freedom.
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She explored various options, including real estate and YouTube (on the beauty side), before finding trading.
Trading as a Career
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Mossy didn't expect trading to become her main career but is happy with where she is now.
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She emphasizes that trading is not something she's passionate about but something she's good at and that provides her with an income and free time.
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She enjoys helping other traders and sharing her knowledge.
Books That Helped
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"How to Trade the Stock Market" by William J. O'Neil was Mossy's first trading book. It covers everything from A to Z about the stock market.
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"Understanding Options" by Michael C. Thomsett is recommended for those getting into options trading.
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Al Brooks' books on price action are also highly regarded by Mossy.
Price Action Trading
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Mossy now trades mostly based on price action. She focuses on support and resistance levels, trends, supply and demand zones, and volume.
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She believes that understanding price action is the key to successful trading and that technical indicators can be misleading.
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She used to rely heavily on technical indicators but realized they didn't work for her.
Transitioning to Options
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Mossy found that options trading was a better fit for her with a smaller account size.
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She believes that options offer more opportunities for capitalization but also come with higher volatility.
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She carried over many of the lessons she learned from equities trading, such as understanding price action and support and resistance levels.
Advantages and Risks of Options Trading
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Options trading allows for limited risk, as the maximum loss is limited to the amount invested in the contract.
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However, options also have an expiration date, and the closer to expiration, the higher the volatility and the greater the risk of losing value.
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Options trading requires a good understanding of the Greeks, implied volatility, and time decay.
Overcoming the Learning Curve
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Mossy advises taking the time to learn about options trading and understanding all the factors that can affect the price of an option.
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She suggests starting with a small account and gradually increasing the size as you gain more experience and confidence.
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She also recommends finding a trading strategy that works for you and sticking to it.
Trading in a Bear Market
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Mossy shares that this year has been one of the hardest for trading, even for experienced traders.
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She had to completely change her trading strategy to adapt to the market conditions.
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She emphasizes the importance of being able to adapt to changing market conditions and not being stuck with one strategy.
Dark Moments in Trading
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Mossy recalls two dark moments in her trading career: blowing through two accounts when she first started and having a bad month in February this year.
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She emphasizes the importance of not taking trading losses personally and not letting them affect your personal life.
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She also recommends taking a break when you're feeling overwhelmed and coming back to trading with a fresh perspective.
Building Confidence and Discipline
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Mossy believes that confidence and discipline are the keys to successful trading.
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She had to work on building her confidence by seeing her trading strategies play out and trusting herself to take the trades.
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She also had to work on being more disciplined and following her trading plan.
Risk Management
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Mossy's view on risk management has changed over the years. She used to have very little risk management and would trade with large position sizes.
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She now realizes the importance of risk management and uses it to protect her capital and her mental state.
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She recommends using stop-loss orders and taking profits at predetermined levels.
The Importance of Mental State
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Mossy emphasizes the importance of being in the right mental state before trading.
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She refuses to trade if she's having a bad day or if she's feeling stressed or distracted.
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She recommends taking the time to meditate and clear your mind before trading.
Finding a Trading Strategy That Fits Your Style
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Mossy advises finding a trading strategy that fits your personality and lifestyle.
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She's impatient and likes instant gratification, so she chose scalping as her trading strategy.
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She recommends considering your risk tolerance, time availability, and trading goals when choosing a trading strategy.
Conclusion
Mossy Trades' trading journey is an inspiration to anyone looking to get into trading. She shares her experiences, lessons learned, and advice on how to be a successful trader. Remember, trading is not easy, but with the right mindset, knowledge, and strategy, it can be a rewarding career.
Where to Find Mossy Trades
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You can find Mossy Trades on YouTube at @MossyTrades. She has a lot of trading content, including options trading strategies and tips.
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You can also follow her on Instagram at @MossyTrades for more trading updates and insights.
Giveaway
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