You’ve never met a trader like Chris Morales aka “Tango Baker” before.
As his nickname implies, he’s both an accomplished dancer and baker (though not at the same time.) In recent years, he’s added trading to the mix.
Today, Chris Morales joins SteadyTrade co-hosts Kim Ann Curtin and Stephen Johnson to talk about how he got into trading, what strategies he uses now, and how he stays sane while trading and helping run the family bakery!
Traders of all levels will love hearing his unlikely yet inspiring story. And of course, there’s his take on how trading is a lot more like tango dancing than you might realize.
The Unique Trading Story of Chris Morales
Tango … baking … trading?
As odd as the combination might seem, these seemingly contradictory life paths are the result of a little serendipity. It’s also due to the professions of his respective parents, who were not a couple during Chris’s upbringing.
Since the 1970s, his father has run a popular Albuquerque bakery. Through the bakery, he’s been on the Food Network and featured on several other media outlets.
As for his mom? She’s a trained belly dancer and dance teacher. When she decided to add tango to her repertoire, Chris became her partner by default. As it turns out, tango was a great way to prepare for a future in trading.
According to Chris, learning to tango is an ongoing process. Just like with trading, you’re always learning and constantly refining your art.
Unlike say, line dancing. Chris describes tango as an “active communication between two different people.” That’s a lot like trading … You have to constantly adapt to the market.
Chris Morales: From Baker to Trader
While working in the family bakery, Chris struck up a friendship with a regular customer. His pal was a part-time professor of accounting who’d mostly spent his prime years as a school teacher. He was also an accomplished trader. And according to Chris, “he even looked like Warren Buffett.”
On his schoolteacher’s salary, he got involved in average cost investing — and by the time he passed away, he was worth about $30 million.
This customer was Chris’s first trading teacher. He showed him the basics of how to read a stock chart and how to execute an order … analog-style, with a check!
This initial interest in trading led Chris to look for more information online, and he came across Timothy Sykes. He figured that he didn’t have as much time to amass a fortune as his mentor, so maybe penny stocks could speed up the timeline.
Getting Started in the Markets
When Chris Morales started trading, he knew it was going to be a challenge. He’d struggled with a learning disability, so he knew he’d have to work “ten times harder” than anyone else. But he had faith that it would get it over time.
His dedication didn’t go unnoticed. He gained attention in the community as an up-and-comer, even capturing the interest of SteadyTrade co-host and SteadyTrade Team lead trainer Tim Bohen.
Making It Happen
Trading is no joke. As Chris puts it, “It’s about the journey of self-enlightenment, the journey of yourself, and facing a lot of your personal demons.”
He thought he was pretty mentally solid before he got into trading — but suddenly, everything was laid bare. Trading provokes different emotions because it’s faster and more volatile. There are highs from making money and lows from losing money.
No doubt, it’s a lot different from his bakery job. Baking is repetitive and follows a routine … Trading, not so much.
A Strategy With Splits
Chris has a strategy that involves trading splits.
With stocks, there are two types of splits — forward splits and reverse splits. Reverse splits are a condensation of the number of shares while raising the price per share. This captured his interest. He started to notice that reverse splits followed patterns.
He also started to get interested in what Kim refers to as looking “under the hood.” He really dug deep into SEC requirements, as well as Nasdaq and NYSE listing requirements. In his research, he observed how the market is governed for poorly performing stocks.
According to Chris, once you understand the rules, you understand the currents controlling these stocks and what’s necessary for them to grow.
Traders won’t want to miss his clear explanation of how reverse splits work and how traders can use this dilution to their advantage. Seriously — be prepared to take notes!
Developing Mental Strength
No trader should miss this, newbie or accomplished. Because developing the necessary mental strength for trading is key.
Whether you’re on a high or a low streak, you’ll be subject to powerful feelings that Chris says act as a “conduit to your own trading.” You’ve gotta get in touch with those emotions!
To close out the interview, Chris gives thanks to some of his biggest inspirations and teachers:
“I want to give a big thank you to Tim Sykes for getting me started on this path. I want to thank Roland Wolf and Mike “Huddie” Hudson for tying all the loose ends together. And a special thank you to my man and brother through this journey, Kenny aka VitaminK … Lots of whiskey and nights reading SEC filings together. Whenever I fell down you always picked me up.”
How to Connect With Chris Morales and More
Check out the following links for how you can follow Chris and for his top trading books and resources…
Follow Chris Morales on Social Media
Trading Books Chris Recommends
“Sold Short: Uncovering Deception in the Markets” by Manuel P. Asensio and Jack Barth
“PIPEs: A Guide to Private Investments in Public Equity” by Steven Dresner and E. Kurt Kim
(As an Amazon Associate, we earn from qualifying purchases.)
Auspex Research. Note from Chris: You don’t need an Alpha membership — skip those links.
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