Episode 38: Michael Goode
The show has gone all over the spectrum with our interviews, featuring brand new traders like Jude, as well as traders who have been at it for years like Phil Goedeker. Today, we’re featuring an interview with someone who has a long history of trading penny stocks: Michael Goode. Michael has been trading penny stocks for even longer than host Tim Bohen, and he has plenty of stories to tell about how his trading has evolved over the years and what he believes the future of trading holds.
On The Steady Trade Podcast, we love teaching new traders about how to get started with trades, trading setups, and how to slowly but steadily gain success. And to keep aspiring traders inspired, we occasionally feature interviews with traders at different stages of their careers.
As a trader, Michael’s been around for a long time. He began trading in 2004, when he found himself on the receiving end of inheritance money. A grad school student at the time, Michael reasoned that he was well-suited to reading and studying, so why not learn about investing and make use of that windfall money?
So began Michael’s journey as an investor. One of the first stocks he wanted to get involved in was a penny stock that took him down a very winding road of lies and fraud. This so-called “pump and dump” phenomenon intrigued him. He began swing trading pump and dumps, building on his position with each trade. While the way he’s traded has changed over the years, he’s never lost his passion for trading.
What’s in a pump and dump?
Michael is a connoisseur of the pump and dump; it’s how he began to make his fortune as a trader. Along with Tim and Stephen, Michael talks about what makes a pump and dump, identifying them, the science of them, and how they are ever changing. They also talk about how short selling has changed over the years, and how it used to be the “wild west” but how in this day and age, methods and techniques have changed considerably.
That Tim Sykes thing
In the episode, Michael dishes on a pivotal moment early in his career as a trader, wherein he put up a blog post declaring that trading guru and phenomenon Tim Sykes was BS. Interestingly, this led to some incredible career opportunities as it opened up a dialogue between him and Sykes, and Michael eventually ended up signing on to the Tim Sykes Challenge. In the episode, you’ll find out what happened next in Michael’s career!
Michael’s advice for becoming successful
Throughout the episode, you’ll receive plenty of valuable nuggets of wisdom from Michael Goode about how to become a successful trader, including:
- Don’t become complacent. Soon after Michael transitioned into full-time trading, he experienced a massive $90,000 loss. While this was horrible emotionally, in the episode he divulges some of the powerful lessons he learned from this experience.
- They can’t all be home runs. Michael believes that early on as a trader, you shouldn’t even expect to be profitable. In the episode, you’ll learn his advice on how you can minimize losses by starting small and building up.
- Master one setup at a time. Work on mastering one setup at a time so you can really figure out your personal trading style. In the episode, Michael, Steve, and Tim talk about specific advice for determining what your setup might be.
- Track your trades. Michael breaks down each trade and keeps track of it by strategy. Looking at this data over time gives him a personal chart to analyze. As you’ll learn, this helps him (and could help you) determine what is and what is not earning money.
- Be adaptable. In the episode, Michael talks about how it’s so important to be able to evolve as a trader. The market changes, and so will you, over time. By being adaptable, you’ll be better able to ensure your personal success over time.
Fun and games: In the episode, you’ll also enjoy a Tinder-inspired challenge called “TIMber” created by Stephen and inspired by Tim. Suffice it to say: you must listen till the end!
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