Episode 27: Listener Mailbag

In each and every episode of the Steady Trade Podcast, we try to focus on a specific subject or theme that will further your trading career. But today, we’re taking a different approach and turning the microphone to you, our listener mailbag. 

In this episode, hosts Tim Bohen and Stephen Johnson are taking listener questions in our first “Listener Mailbag” episode. If you love this idea, you can get in on the action: go to our website, where you can record your audio and ask a question to be answered in a future episode (of course, if you’re shy, you can also send us a message).

Get ready for some great information, thought-provoking listener questions, and yes, even a deeply horrifying yet compelling rendition of Miley Cyrus’s “Party in the USA” by Stephen Johnson.

Question One: What is Your Advice for This Turmoil Market?

The first listener question has to deal with the extreme volatility that has characterized the market as of late. Times like these can be very distressing for traders both old and new. It’s hard to know how to contend with this volatility, and even the best-laid plans can be difficult to stick with when the market is in turmoil.

As Tim shares, a big part of the market’s volatility as of late has had to do with VIX ETFs. These ETFs can cause some craze moves in the market due to leverage and derivatives; Warren Buffet famously referred to them as “Weapons of financial mass destruction.” At this point, a lot of them have gone belly-up.

So, given this extreme volatility, what is a trader to do? Tim has been through times like this before, and has some sage advice to offer: his opinions may surprise you!

Note: want to jump into the volatile market without actually risking your own cash? Stocks To Trade has a paper trading module that can help you practice!

Question Two: How Do You Take Trading From Your Brain to Your Fingers?

No, we’re not getting weird here. This is actually a very good question: how do you take the intellectual know-how that you have gained about trading, and actually put it into action? After all, while the idea of making a plan and sticking to it is all well and good, but it can be extremely hard to actually stick with.

One important thing to know is that this is a universal struggle for traders, both old and new. Tim and Stephen have plenty of advice on the subject based on their past experience and share several techniques for keeping calm during your trading.

From simple techniques such as physically writing down your plans and keeping it in front of you as a tangible reminder to more involved techniques, you’ll gain insight and great anecdotal tips for how to stick to your plan in trading.

As your own boss, it can be easy to fall into the trap of freedom, which is intoxicating. And as traders and humans, we want to gamble. We want even more. However, the freedom is what makes it so important to keep things responsible.

Question 3: How Can I Control My Emotions in Trades?

This question comes from a fairly new but profitable trader. He began with a $2k account and has built it into a $14k account. While he is doing well, he struggles with controlling his emotions in trades.  

Once again, this is a fairly universal problem and challenge for traders, both old and new. Having struggled with this issue themselves, Tim and Stephen both have plenty of advice to offer.

As the hosts delve into this sticky issue, you’ll benefit from Stephen’s surprisingly insightful advice about hard work, repetition, and discipline. You’ll also gain some food for thought about how important it is to respect the risk and to keep yourself in check so that you don’t get cocky and start making bad decisions.

Ultimately, you need to be respectful of the process and remain vigilant about how you can move forward in a productive way as a trader.

Thanks for tuning in to the new, serial format for the Steady Trade Podcast! Stay tuned for weekly episodes covering every aspect of how to be a steady trader with long-term, reliable success!

Did you love this episode? Be sure to leave an iTunes review!