Episode 66 ... Dan Shapiro (66:25)

Return guest (Episode 32)
First started looking at charts in 2003
Fast talker, native New Yorker? ... sounds remarkably like Joe Fahmy
Looks at 60 minute charts exclusively
Social media the best and worst thing for new traders
Most new day traders obsess over the one minute chart
Uneducated, underfunded, no-process bungee jumpers are down on the one minute chart
"Barry Sanders Effect" -- getting stopped for two yards twenty times a day -->
Instead you should wait for a hole to open up, run 60 yards
Most stocks are not tradable
Get rid of the social media noise
He's "not the sharpest tool in the shed" [sounds pretty sharp to me]
He's been trading since 1999, has a lot of screen time
Netflix and Tesla his two favorite stocks
Hasn't updated his eSignal in at least a decade
His charts are covered with squiggly lines: moving averages, Bollinger Bands, linear regression lines
You need to know where the bodies are buried (areas of supply)
Most traders don't know what they're being patient for
[Likes to use football analogies]
Stocks go from supply to supply (areas of support / resistance)
FANG (Facebook, Apple, (Amazon?), Netflix, Google) names are market sensitive -- is Netflix weak when the market is strong? Why?
Don't win the day, win the intervals of the chart
Is the trade worth it? Distance from one zone to the next large enough?
FANG stocks have great range and volume ... tradable [i.e., Usual Suspects]
Six years ago started doing live webinars
Looks through 500 daily charts every night, finds things "coming out of a range"
Writes down six to ten ideas every day
He'd rather drink cyanide than trade the pre-market highs and lows lists
Everybody wants to drive that fast car, but new drivers should drive slowly
Newborn babies don't come out of the womb running
How many horror stories are there of people shorting a pre-market screamer ("Flying Pig") and busting out
Trading should be boring
Watching six candles a day (60 minute charts) forces you to be patient
Doesn't want to be fighting a guy with a $2,000 account who is getting stopped out every two minutes
Traders have to be humble but also killers, willing to take food out of some other guy's kids' mouths
Don't turn a paper cut into a severed head
[He's a fun guy, fast talker, should be in sales, maybe he was, maybe he still is]
During monthly review, looks hardest at his losing days
"Don't trade like a putz" -- spot those days you were trading like a putz
"Ish happens" [instead of "shit happens" ... a Yiddish thing?]
Advice to new traders: don't be undercapitalized (and max risk should be 1% of account)
Trades only have three parts: process [method], tier size [risk management], result [trade management]
Don't risk $1000 to make $300
"Let me give you the reality"
Prop firms used to make so much money from commissions, they didn't care about how much risk people were taking
Only four or five major players left in the prop business ... it's dead
Game has completely changed -- no money left in commissions
The money isn't in commissions anymore, it's in "education"
Prop firms won't give you any capital now, won't let you trade any more than 100 share lots
Offshore prop firms are bookies
Avoiding "Pattern Day Trader" rule by going offshore to a "bookie" broker a bad idea
What's a good amount of money to start trading: A LOT
"You, my friend, are a commodity"
If you're doing millions of shares a month, you can negotiate a very low commission rate
"You are the rising star ... invest in youself."
Peter Luger doesn't serve his steaks on paper plates
You need screen time to learn what NOT to do, not what to do [yes, indeed]
Borrowed money from a loan shark to get his start [I'd like to hear more about this]
In 2003 he was at Spectrum Securities, bought out by Schonfeld Securities, met Dan Mirkin then
In 2003 he started using Trade-Ideas [should have Dan Mirkin on the show]
Trade-Ideas still cheap at $500 a month [it isn't that much]
He doesn't upgrade anything he uses, 2003 version of Trade-Ideas, ancient version of eSignal
Turned profitable after 2003, a coincidence with Trade-Ideas adoption?
Many years of desperate trial and error before he found success
Has no need to show off, hates the social media circus
You need to put in the time to learn how to trade ... people will doubt you and you will doubt yourself, but don't give up
"Some random avatar isn't a superstar, you are the superstar"
How does he have this level of energy? Lots of cocaine [he's a funny guy]
www.accessatrader.com
Twitter: danshep55