From the “IT Guy” to a Day Trader

My Name is John Nav and I mainly worked in the Information Technology Industry. I started at the bottom as a Technical Support Specialist and worked my way up to higher positions such as Systems and Network Administrator with several Government Agencies as a contractor with Federal Housing Authority and Federal Aviation Administration in Washington, D.C. area.  

I also worked with several hospitals and companies like Microsoft and Intel in Seattle area. I have enjoyed my previous jobs and enjoyed every new and unique issues that comes up everyday. I have a Bachelors Degree in Information Technology and a Masters in Information Systems. I did not stop there and took my Masters in Business Administration in September of 2017 (and graduated on May of 2019) and this is where I was introduced to trading with one of my MBA classes (Finance Management).

Having no background in Finance, I studied and dug deeper about trading and came across with Warrior Trading after an extensive research. I was working fulltime and was also a fulltime student, during the time I was also going through the Warrior Trading classes; And with 2 small kids (4 years old and 5 years old during that time), that was not fun at all, but what drove me is the desire to learn more about trading.

Going Pro…Warrior Pro

I became a Warrior Pro Student and even an Inner Circle Student back in March of 2018.  I have attended the Inner Circle Conference in Orlando on September of 2018. During the conference, I met a lot of students and had mentor sessions with Ross and Mike. This was one of the turning points of my trading career.  They helped me understand my exits on percentage, especially stop loss. I started as a small cap trader and switched as a large cap trader.

I’ve Tried Many Different Day Trading Strategies

I studied Mike’s large cap course (in the Warrior Pro), watched the old classes twice and the new classes at least twice as well. I tried several strategies. I tried Mike’s Strategy with 20 ema on the 5 minutes and momentum trades at the open. I also tried Roberto’s Strategy with 13 ema on the 3 minutes and 10 minutes. I tried different priced stocks from $20 all the way to $300. And most of them did not work for me. And I realized that there was nothing wrong with Mike nor Roberto’s strategy and the main issue was my Risk Management (Ross put that Risk Management class in Chapter 1 for a Big reason) ? I was holding losing trades longer than I should and holding winning stocks like a hot potato and taking profits right away. All I have to do is, reverse this strategy, and I have to emphasize that this is easier said than done. And this is still a working process for me since my emotional intelligence was or still is sub-par. I continually try to improve my Profit/Loss Ratio.

After several trials and errors (I mean a lot of errors, mainly my risk management), I finally found my edge. I keep it so simple and yet effective for my style, personality and the way I trade.

  • I mainly focus on the $20 to $40 priced stocks.
  • I use the 13 ema, 20 ema and VWAP for the 3 minutes, 5 minutes and 10 minutes chart. I combined Mike’s and Roberto’s strategy and I call it a hybrid strategy of both great traders.
  • Bail out or Break out mentality – if the stock is not going the way I wanted or planned, then I take the hit and that stop loss.

Becoming a Warrior and Developing My Own Strategy

  • I stopped comparing myself to other traders especially with veteran traders like Ross, Mike and Roberto. When Ross or Mike post that $10K+ P&L, I should not compare that to my winnings. Those big wins comes with big losses as well, unlike for me, I could not afford those big losses.
  • I currently live in a small town in Nebraska (middle of nowhere, literally middle of the United States) where cost of living is so low that my daily goal is so small at $187 per day (around $4k per month) which is very realistic.  When I lowered my daily goal, I have better days than losing days since my daily was attainable.

 

In the last month I made 2.5 times my monthly goal and this month so far is also very generous for me at 2 times my monthly goal.

 

  • Tight stop and remain discipline for my trades (Risk Management) which is the hardest thing to do in my opinion especially in the beginning of my trading career.
  • I stopped trading after 12 pm est.
  • After hitting my max loss, I stopped trading for the day.
  • No trading after hours for earning reports.  I loss a bunch of money trading this before. The problem with this type of trades is, the stock moves so fast in one direction and sometimes reverse hard if the data was incorrect or the delayed reaction from other traders.
  • I keep a journal of my everyday executed trades and review them after I traded around 11:30 am est.  It is like the mid-day market recap of Ross, but nobody is listening except myself. I review my entries, my exits, what are my mistakes, did I over size on the share size, or stayed with my plan of being a conservative trader and what I can improve the next day.
  • I stopped watching my “Open/Unrealized P&L”.  I used to watch this a lot, and every time I see that green number in there, I took profits right away.  I learned this from Hulk.
  • After hitting my daily goal especially if it is more (e.g. 2x or 3x my daily goal), I stopped trading for that day. This is where it got me last year, even though I got my daily goal for the day let us say for example I am up $200, I kept trading and ending up losing that $200 and sometimes ending up negative for the day and/or paying more commissions in the end.
  • After hitting my daily goal, I still watch the market for price action and news until 12 pm est. and I call this “unpaid overtime” ?. I also come back at 4 pm est most days to watch the earning reports (no trading though) so I would know what are moving and would be possible for the watchlist for tomorrow. 

Meeting Other Inner Circle Students at their Hometowns

I travel a lot with my wife and two kids.  My wife’s work is so flexible that it allows us to travel several times a year.  Last year, we did 9 flights to other states. Every year (for 7 years now), we always visit Orlando for Disney World for the kids. During the summer we drove from Nebraska to Las Vegas, Los Angeles, San Francisco, Lake Tahoe, Salt Lake City and Back to Nebraska. We like to travel as a family, to visit new places, visit family, relatives and friends. We also like to try new food from local restaurants. Our goal is to visit all states, and we have visited 42 states so far ?.

Last year, I travelled and met several IC Students at their hometowns (that I met in the Inner Circle Conference in Orlando). One in Seattle, Jacksonville, Virginia (Washington, D.C. area) and I even met Hulk in Las Vegas.

Improvements and Future

I think I still have a long way to go as a trader.  I still have a lot of potatoes to eat, bacons to eat, and showers to take before I can really get there. I have a long way ahead of me. I want to stay consistent, conservative and stay with my plan. Maybe up my share size a little bit, but I want to learn more and continue to learn from other traders especially from the big guys.  Thanks to Hulk for helping me a lot for charting and mostly tight stops. Ross for providing that education for Risk Management and his very optimistic voice in the morning. (By the way Ross, I still remember telling myself, “first 5 minutes to make the new high” while I was mowing and doing other things?).  Mike for that session about percentage outs and setting up stop loss.  And most of all Roberto, who I have a very similar trading style and answers my questions almost everyday.

What I like most about trading is that, I am earning almost the same amount from my previous jobs with the flexibility of only trading or working in the morning. I can be able to pick up my kids from school, go to the gym, play some basketball, ran outside and do some volunteer work at Church on odd hours which I cannot probably do if I have a regular 8-5 job.

Cheers to my fellow Warriors! See you in the Chat Room.