The SteadyTrade Paper Trading Challenge is heating up!
Earlier this month during our “High on Weed Stocks” episode, we announced the first contestant to be eliminated. The rules have also changed: To keep things interesting, everyone’s paper trading balance was lowered to just $1,500.
So … how are the remaining contestants faring with the new rules in the progressing challenge?
In today’s episode, host Stephen Johnson catches up with his remaining Challenge contestants, Liz and Jude.
Note: This is a great episode to watch on YouTube because Stephen offers up some great technical analysis lessons for both of his trading students that will prove helpful to traders of all levels!
Update on Raging Bull Liz
Stephen notices right away that Liz is lacking that special glow.
What’s holding her back? A little devil called the PDT.
During the last team update episode, she was a front-runner, scalping like the world was going to end the next day. But since the Paper Trading Challenge rules changed and she’s working with a smaller account now, some of her swagger has swiped left and she’s feeling the burn.
Liz’s $1,500 account has diminished below $900. She’s rattled: Recently, she tried to short with unsuccessful results, and accidentally bought rather than sold on her last day trade, effectively locking herself into an unwanted position.
Liz has lost some of that initial confidence, confessing, “I’m wrong; I don’t know what I’m doing.”
Update on Conservative and Spiritual Jude
Since Jude lives in Canada, the PDT rule doesn’t apply to her IRL trading, so it’s been an interesting thing to learn about in the Challenge. Actually, she likes it, because in her words, it “forced me to focus on trades that were good.”
However, they haven’t all been good. She had a great trade with a trending hemp stock, but then tried to re-enter a position with the same stock shortly after and it didn’t work too well.
The lesson Jude is trying to contend with? Not letting the wins get to her head, because that’s when you start making mistakes. Or, as Stephen says, “Try to not let the highs be too high and to not let the lows be too low.”
Ultimately though, her trading technique hasn’t changed much regardless of the account size. She’s still being cautious. She tries as much as possible to keep it real but also to keep an eye on how this could apply to reality.
Papa Bear Stephen’s Trading Wisdom
Prepared to be amazed by some insightful lessons that Stephen imparts during the episode.
He gets extremely hands-on with both Liz and Jude’s trading charts, offering praise on what they did right and constructive criticism on what they could have done differently or could change in the future.
Traders of all levels and account sizes will benefit from these observations on entry and exit points, and why it’s so important to look at the chart very closely and to evaluate things like risk/reward and trading volume for the stock in question.
To round out the episode, Stephen, Liz, and Jude talk about potential goals for moving forward, including:
- Looking for the support. Why is it good to buy close to support? Stephen addresses this, saying why it’s a good technique and why you need to watch your exit points too.
- Discipline. No doubt about it: Trading requires strong discipline. They discuss tips and tricks for staying focused.
- Taking it to the next level. As both contestants improve at learning how to read charts, they’re entering what Stephen calls the “next level of trading”… a time when working on your trading psychology is super important.
- Quit chasing. Oh, it can be tempting to chase the shiniest, brightest stocks. However, you need to do your research before pulling the trigger. Or, as Stephen puts it, “You will lose and lose and lose until the pain of losing makes you learn.”
- The big picture. It’s another common trader mistake: focusing too much on one indicator or aspect of the setup but not backing up for the big picture. Stephen offers great tips for overcoming this common trading issue!
Got a Pressing Question?
Hey, got a question for Stephen, Tim, or any of the contestants? Visit the “submit your audio” portion of the website to ask us anything.
Thanks for tuning in to the SteadyTrade Podcast. Stay tuned for weekly episodes featuring the hottest topics for aspiring traders!
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