This week on the SteadyTrade podcast: low-stress gap trading with Latoya Smith.
One thing leads to another! A few weeks ago, the SteadyTrade Podcast featured Jane Gallina, aka “Airplane Jane.” (Psst: Did you miss the interview? Check it out here.) Following the episode, co-host Kim Ann Curtin checked out Jane’s book about awesome female traders, and that’s how she discovered trader Latoya Smith.
Today, Latoya joins Kim and co-host Stephen Johnson. Latoya is a gap trader who likes to approach trading with as little stress as possible. Discover how she finds stocks and trades and how she’s found success in the market — all while raising young children.
Latoya Smith’s Story
Latoya comes from a finance background. She studied finance in college, and after she finished school, she wanted to put her degree to work. She worked with a custodial bank but found herself thinking there had to be some other option.
In 2006, she formed an investment club with friends. As a group, they’d choose stocks to trade.
As the treasurer, Latoya was the one who actually placed the trades. Over time, she started to notice that some of the price fluctuations could result in higher profits if they held positions for shorter time periods … That kicked off of her fascination with the stock market’s mechanics.
She started seeking out an education, and that’s how she found Tim Sykes. Like many of Sykes’ students (including Stephen!), she started out wary. But she was interested enough to check out his program. She immersed herself in the world of small-cap stocks and got into short-term trading.
Don’t miss Latoya’s incredible story of trading self-discovery … Like any trader’s journey, it includes the bumps along the way. But there was also a brief foray into real estate. Tune in to find out what made her decide to quit her job in 2012 to pursue trading full time.
Latoya Smith on Going Full Time and Developing a Strategy
Interested in quitting your job and trading full time? Don’t miss Latoya’s honest account of her journey from full-time work to the sometimes terrifying unknown world of trading.
She explains how it was very scary to give up “sure money” at her job, but why it was worth it in the long run. She wanted a happy place, she wanted her time back, she wanted to have kids … In short, she was after a different kind of life, and she thought she might find it in trading.
What about being a woman trader? No matter what gender you identify with, you won’t want to miss her uplifting and refreshing thoughts on why she never had reservations about being a woman trader in a male-dominated field!
She also explains how her strategy has evolved. She was making good money with small-caps, but it can be hard to control losses. It’s easy to lose money fast. And it can all boil down to a single press release.
She figured there had to be something more controlled. That eventually led her to her current strategy of trading mid- to large-cap stocks based on momentum.
These days, Latoya has “much more controlled risk” thanks to trading gaps. She bases trades on upcoming earnings or earnings reports, going in the direction of the gap. For example, a stock might gap up on earnings — and then it might be a good short into the fade.
Latoya’s transition of strategies wasn’t easy, though. She shares how at one point, she took time off from trading for three months to actually observe the market and perfect her methods.
She also talks about how she approaches the market on an up day, a down day, or a sideways day.
Best of all? She does it all in the morning. Yep: Latoya tries to be done with trading by noon so she can spend time with her kids!
What Helps Traders Succeed?
Listen up, traders: Latoya Smith has the goods on the characteristics that can really help traders get ahead.
Confidence, for instance, might seem like a no-brainer — but it’s not always what it seems. Stephen, Kim, and Latoya discuss the inherent self-confidence that’s necessary to succeed as a trader. It’s what will keep you going when times get tough … and times WILL get tough!
She also talks about the importance of a plan and why technicals matter most to her. She also offers vital tips for new traders about how to avoid “revenge trading” — when you’re mad you lost a trade and try to make your money back!
Connect With Latoya Smith
YouTube: The Profit Room
What Do You Think?
Curious about the episode, Latoya’s methods, or trading in general? Send us a line.
If we choose your question as an on-air topic, you could win a SteadyTrade mystery gift box. Leave a comment below or on YouTube!
Thanks for tuning in to the SteadyTrade podcast. Stay tuned for weekly episodes featuring the hottest topics for aspiring traders.
Love the episode? Please leave a review on iTunes.