In the fast-paced and ever-evolving world of trading, success is not solely determined by knowledge and experience, but also by understanding the human element. Today, we embark on a captivating journey into the life of Archimed La Luce (Creed), a remarkable individual who has made a significant impact in the trading industry. From humble beginnings to becoming a Principal Investment Officer at Quasar Markets, Creed's story offers valuable insights into the way of investing, reading the markets, importance of mentorship, continuous learning, and the psychology of traders.
Creed's remarkable journey in the trading industry highlights the importance of the human element in achieving success. From his humble beginnings to co-founding Quasar Markets, Creed's story exemplifies the power of mentorship, continuous learning, and understanding the psychology of traders. By recognizing that trading is not solely about numbers and charts, but also about the emotions and actions of individuals, Creed has made a significant impact in the trading community. Through his endeavors, he strives to empower traders with the necessary tools and insights to thrive in the fast-paced world of trading.
About Archimed (Creed) La Luce
Meet Archimed La Luce, affectionately known as "Creedmoor" in the financial markets. With over 10 years of experience in the industry, Archimed is a seasoned professional who has made his mark as the Principal Investment Officer at Quasar Markets Inc.
Beyond his role at Quasar, Archimed is also the visionary Founder of Nomadic Trading and Consulting, as well as The Copper Umbrella Fund. Through these ventures, he has created a legacy of success, fostering fruitful partnerships and encouraging like-minded experiences for both friends and clients alike.
Archimed's trading expertise spans across all asset classes, and what sets him apart is his deep understanding of human reactionary logic. He approaches trading from a psychological standpoint, recognizing the impact of human emotions on market movements.
What makes Archimed stand out even further is his open-mindedness and willingness to collaborate with new individuals. He is always excited to work with fresh perspectives and forge new connections, embracing the dynamic nature of the financial world.
Archimed La Luce "Creedmoor" is an emblem of wisdom and innovation in the financial markets, and his journey continues to inspire and influence countless professionals in the industry.
Contact Agnieszka Wood | Ahead Coach:
- Website: aheadcoach.com
- Twitter: @Ahead_Coach
- YouTube: @aheadcoach
- Facebook: Agnieszka Wood
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- LinkedIn: Agnieszka Wood
Contact Archimed La Luce:
- Mobile number: XXX-944-9666
- Quasar: www.quasarmarkets.com
- Consulting/Hedge fund: https://copperumbrella.com/
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Transcript
[00:00:04.170] - Agnieszka
I am Agnieszka Wood. Welcome to the Confidence in Trading podcast. Let me introduce my special guest on today's show, Creed La Luce. Hi Creed. Welcome to my podcast and thank you so much for making the time for this conversation. I know how busy you are.
[00:00:19.940] - Creed
I want to say, Agnieszka, thank you for having me on the podcast. I look forward to the questions and let's see how this conversation goes. I always love conversations that provoke thought overall.
[00:00:31.630] - Agnieszka
Totally. And that's exactly what this podcast is about and for. So Creed, you have a long list of achievements on your resume, especially considering relatively short time you are walking on this earth, which is really impressive, this whole list. Except for being a trader and trading coach, you do a lot of different things. I see many names on your resume: American Charging Solutions, the Copper Umbrella Fund, Nomadic Trading and Acquisitions. And I'm dying to hear more about all the things you do. I know that your current main role is principal investment officer at Quasar Markets. That's very exciting and I definitely want to hear more about that, especially how recent that initiative is. But the main reason why I'm so excited to have you here is because of one of your recent interviews. I listened to you talked about how to trade and how to perceive the stock market. And you mentioned that you are not trading the price action, but you trade traders psychology. And I thought it was such a fresh perspective and I'm so curious to hear more about it. Welcome to episode number 13, the Human Element in Trading. So, Creed, could you tell us a little bit more about yourself and all the things you're keeping yourself busy with?
[00:02:03.660] - Creed
I'll keep it brief for everyone on here. The thing about it is I came from humble backgrounds on a blue collar aspect of things and got involved with the market after pursuing some other endeavors. And what really led me to this is starting to understand where does the money come from and how does the money work. At the end of the day, we do not get a job because we really like it. You get a job to pay the bills overall. You get a hobby to enjoy things. Now, don't get me wrong, if you enjoy your job, that is another aspect. And like with trading, I eat, sleep and breathe trading. So I do enjoy my job overall, but at the end of the day, we have to pay the bills. And the ideology from it was, well, where is the money? The biggest wealth generator in the world is where the markets, global markets overall. So that's something I started to dive into, asking individuals and gathering something very important that I hope people from listening to this will go and search out, be it for yourself or something else, is mentorship overall. That is something I sought out very early on and starting to be, for lack of a better term, the dumbest.
[00:03:15.560] - Creed
Guy in the room that felt he had to ask 10,000 different questions, but knowing when to shut up and listen and making sure to take notes so I could go back and study the words, the phrases, everything that I heard. Because ladies and gentlemen, we've got to be frank. If someone has been in the markets for 15, 2025 years, they are going to say and do things that you have never been exposed to. It is your responsibility as a good student of the markets and of your mentor to go and do your own due diligence, your own research. Everything you learn is exactly like a trade. You need to do your due diligence on it. After several years of going through the markets, profitable trader. I was with a couple of different communities and I was an educator with the Bullish Bears for five, six years, something of that nature on there. And what I found very important and I would say to traders going through.
[00:04:17.150] - Creed
For this is that you should eventually become a mentor because it keeps you honest, it keeps you accountable to what you're doing. Because as a good human, as a good person, how can you honestly tell somebody to keep a stop loss when you yourself are not even keeping a stop loss? So that is something to keep in mind. After my time as an educator on there, right before the global pandemic that pursued, I had several individuals that asked me, hey, as we're learning to work within the markets, we have capital that we would love for you to work with. I tossed the idea around a little bit, but really wasn't sure if I wanted to manage money for people overall well enough. People said, hey, we'll do this, that and the other. And that's what actually led to the Copper Umbrella now TrailBack the nomadic trading and consulting that was part of the education sphere. Whereas the Copper Umbrella fund was a friends and family fund that was set up exactly for that friends and family. Throughout my career as an educator said, look, I either do not have time or I see that my journey is going to take time. Will you please work this capital for me
[00:05:28.890] - Agnieszka
Just to understand, how old were you when that happened?
[00:05:35.850] - Creed
20, 26, 27, something of that nature. So I guess we'll go ahead and let the cat out of the bag. As of right now, ladies and gentlemen, I am 29 years old and you'll hear everything else and I get it. Before you turn off the podcast, what the heck does this young buck know? Keep in mind that if you spend a decade plus doing a singular thing, trust me, you will learn the ins and out if you are a good student of that thing and desire continued progression. So that is something to keep in mind because I do know people that have been in a single job for ten years and be quite frank, really haven't done much. So that's something to keep in mind is that while age is a good determining factor, it should not be your finite factor on things.
[00:06:29.150] - Agnieszka
It's not just the time. Letting the time pass, but actually using the time to do to put effort into the right thing, right?
[00:06:38.050] - Creed
Agreed. Agreed. And we all have that time and I think that's something very important to keynote on is we all have 24 hours in a day.
[00:06:48.080] - Creed
How we choose to spend those 24 hours both for refreshment labor and education is up to us. So that is something to keep in mind. But anyhow, the fund itself came together, managed that money, still managing that fund overall and then was brought on by another company for an education aspect of things. As they had saw my path they wanted me to help build the community on it. Did that for about a year or so. And now I'm on to two things that were started this year on that the American Charging Solutions which is an EV company which once again most of my endeavors actually come from my friends and clients on there and even sometimes my mentors or mentees. And that charging stations, those charging solutions. People ask me what do you think of EV? What do you think about this? Can I take my money that I've made here and can we move it over here? So once again another business idea is born.
[00:07:46.750] - Creed
But now my big endeavor that is going on which I firmly believe that I am not one to gloat, which I know is technically gloating in its own with that comment but it is going to be the thing that I finally said look, I'm ready to go to the next level. And that was backed up by I didn't just come to that decision on my own. I asked many people that have 20, 30, 35 years in the market at Goldman, JPM, people that matter within the business know just somebody that's here's an idea and that is now that I am the founding investment officer for Quasar Markets. What even is that?
[00:08:32.130] - Agnieszka
That's what I wanted to ask.
[00:08:34.160] - Creed
Quasar Markets was the brainchild of myself and my two other partners on this and we've brought on other partners but it was our brainchild together on this. And what it is is it is the Amazon of finance. What do I mean by that? The Amazon of finance on this is that you as a trader right now, even myself before I had the fund, I had three, four, five screens with where is the flow, where's the order flow, where is my charting, where is my news, et cetera, et cetera, et cetera. And the thing about it is that we have now created something that quite literally does not just bring everything, it brings the true premium of everything into this platform so that the hit of a toggle you are able to add and remove it to your platform. But something that I find is very key. If you connect with one of our educators on there and you go, I really like the way that this individual trades, I don't know, monkey bars, order flow, whatever, will actually have a profile and you're able to select all of the stuff that they have so you know that you're not missing anything.
[00:09:45.180] - Creed
And that's a big thing. Sometimes teachers and I'm guilty of it too. What we'll do is we'll talk in a presumption that somebody knows this well, what we're trying to get out of this is there are no presumptions. We are completely agnostic to everything. All the information is there.
[00:10:01.240] - Creed
Even more so though, what we're providing with this is that as you as a trader create this as a business overall, that business for you is going to allow you to facilitate transactions in the world. If you want to buy a house, if you want to buy gold, if you want to pay for pizza down at the local diner, we have the capability to do that. But even more so, and where I come into things, not just on the educational side that I'm managing, but the funded trader program and the fund management program. Don't get me wrong, if you manage to make 30, 40, 50% in a month or even in a quarter, lock that capital in and make sure you keep your taxes in play with things, but then put that money into something longer overall. And that's where the fund management services come in is it allows people to have that ability to think about your future. We have one of the highest failure rates in any industry. In fact, when I went and looked it up earlier, it's over 92% of people that do short term trading. Short term trading being six months and under on a position has a failure rate of over 92%.
[00:11:13.030] - Creed
We are trying to flip that around with our requirements and you guys can keep an ear out for when we're doing more, but that gives you the high level view. But I will be managing the educational side and the fund investment side that is not just US based, we're global. We already have the handshakes in there. And in fact, I'm working with a wonderful firm out of Estonia there and portion in Germany that they have a beautiful seasonality profile for people who are one of those individuals that just says, you know what, I can't read market psychology or I do not want to learn to read market psychology. I want something that still gives me good gains, but is pretty robust. So we got a lot of fun stuff in the works.
[00:11:57.540] - Agnieszka
Wow, that sounds amazing. And also really very complex. Just looking at that from the perspective. Okay, so I'm a retail trader, right, that is struggling with consistency. At what time frame am I looking at that I can get on that platform and what can I expect? Is this going to help me to trade better? What is this going to do for me?
[00:12:20.290] - Creed
So as an individual, and we really.Have to break this down in the psychology. No one will ever be able to trade better without self input. Quite frankly. I could take an individual, drop them in the middle of Harvard, and if they did not take the time, even though they have all of the opportunity, if they did not take the time to best utilize that opportunity, they will never grow. That's just how that works. Right now for this platform, we will have everything launched, barring complications. We all know how Murphy likes to get with things. We're looking at about 90 days to have this up and running, and we will actually start the fund management services November, but bigger notoriety on it Q one of next year. Now, the best part about this, and I'll say this again, is the mentorship aspect of it. We have partnered with Prosper Trading Jerremy Newsom over at Real Life. We've partnered with ABAC Mundeum Capital, so many other people that it's not just about being able to get money to the trader, but you knowing how to go through the steps and processes of what is the best way to do this. I do not care if you're building a house, a birdhouse, or working at the local grocery store.
[00:13:45.900] - Creed
There is a standard operating procedure within the markets and risk management. And that's what we're aiming to do. If you happen to like Scott or one of the guys over there at Prosper Trading, awesome. You can go through that educational sphere on there and work with them. And then you say, okay, I only have $50,000 of my money and I really do not want to risk my full $50,000.
[00:14:11.180] - Creed
Cool. You're able to come to any of our funded trader programs that you feel comfortable with, be it Jerremy's, be it Scott's over at Prospers, be it mine here at the firm and go, okay, I want to have capital put to this. So you're able to spend $200, $500, a $1000, prove that you learned something through this education, and the only risk capital that you actually have up there is what you paid for the initial test, for lack of a better term.
[00:14:45.680] - Creed
Now, what I advise people to do.
[00:14:48.910] - Creed
In my opinion, is that it is a good idea to set aside what we would consider a one quarter tuition from a local college. What I mean by that here in the US. And in many other countries, you have technical schools and a lot of times those are somewhere between $3,000 to $5,000 for a quarter of information and technology on there. With that being the case, let's break that number down. Let's say you're going to do $5,000.
[00:15:17.220] - Creed
For easy on that. Just good easy number, I would say. Take $2500 to $3,000 of that and spend that money on information and education.
[00:15:28.890] - Creed
The other $2,000, there you go.
[00:15:31.950] - Creed
That's your initial cost for testing or your cost for the books. Oh, but nobody has to pay for testing. Well, yes, you do. Whenever you're getting state licenses or anything like that, you actually do have to pay for testing. So that is a part of everyday life, whether or not people like it.
[00:15:47.490] - Creed
But this day and age, it used to be who was closer to the exchange plus information. Now it is your inherent ability to.
[00:16:03.340] - Creed
Be able to receive, perceive and act upon the information being presented to you. That is why we've designed the platform. How it is designed is so that the only thing that would delay your information is, quite frankly, your Internet speed overall, because we have put in the partnerships in that. Hypothetically, if I don't know, there was a new strain of pandemic coming through the UK. And that news was to hit the global wires, boom, boom.
[00:16:32.690] - Creed
It is to your system how quick you process it and whether or not you're being responsible. My mechanics out there, you know, you're supposed to be wearing your safety glasses. Well, same thing. If you do not have your newsfeed up there, guess what? You're not going to see the news.
[00:16:48.480] - Agnieszka
Right
[00:16:48.840] - Creed
It's just not going to happen. So make sure that you do the due diligence and the prep for it and you'll be able to see that with the educators. There's live trading and all of that.
[00:16:57.560] - Creed
It's one of those things that we are trying to put legitimately trying to put as much material in front of the trader to go, okay, not analysis paralysis. You're actually going to have analysis. Action is what I'm looking for on this.
[00:17:13.760] - Creed
And there's a learning curve. I won't lie to you guys and gals on this one. If you were to sign on right now, in my opinion, to start to feel confident in what you're doing, on average, I think it would take someone around four to seven months to understand the platform, the trade, digest the information, and also get time behind the keyboard. That's the thing.
[00:17:46.560] - Creed
So many people just go, I read a thousand books, let me do it. I'll steal one from Dan Pena on this one. It was I would rather have someone that has had a hundred deals than read a hundred books.
[00:17:58.560] - Creed
Don't get me wrong, you need knowledge. You need books, you need mentors, but you have to actually get into the dust to understand what's going on.
[00:18:08.060] - Agnieszka
Absolutely. Knowing is not the same as knowledge, right. And you do need the action and the experience. That sounds all absolutely so exciting and I cannot wait until that's going to go live so we can all see and experience it. So let's talk about now about you as a trader, because all the things you're doing is very entrepreneurial. Are you more entrepreneur or do you see yourself more as a trader or both? What's the proportion?
[00:18:45.870] - Creed
So that's the funny part overall. Many people that I know that are within the markets, they had a few good wins, but they made their money off of taking those wins and investing them in other things. Startups, they didn't really make it purely from the market on that. Myself, ever since 2000? No, 13. Yeah, 2013, 2014, something of that nature, because it took me about a year to start to be profitable on that. So, as you guys see, I'm on the other side of the four to seven month statistic. It took me about a year. And when I say profitable, I mean paying my bills. I don't mean making $10 a year. I'm talking about you are able to withdraw money from your account and actually pay a bill. And actually, I remember my first bill.
[00:19:44.810] - Creed
It was a light bill when I had just finished university, and that was the big component of it. So myself, I draw my money from the markets. I have other investments, I have other things, but my money comes from the markets because I am purely a trader. And in fact, even right now, not my client accounts, but my personal account on this is probably the least amount of assets I've had in it because I have been distracted with trying to get this platform or not trying actually getting every day I have meetings about every 30 minutes or so getting this platform going. Overall, right now, I think I have.
[00:20:27.450] - Creed
Maybe actually, let me look real quick.
[00:20:30.270] - Creed
I'll tell you, I have nine. I have nine stocks, keep in mind. I have well over an eight figure account. That's the personal account.
[00:20:44.700] - Creed
And wow, that's sad. I really shouldn't have looked at that.
[00:20:49.630] - Creed
But that's the thing. You have to know when to stay out.
[00:20:52.080] - Agnieszka
That's for swing trading, right? Or is that long term investing, that's swing?
[00:20:56.450] - Creed
Okay, so that breaks up another part of it. If I was to look at my. So it is, in my opinion, as a trader, when you're working with this, you have to break down your idea, your trader psychology when it comes into this. And I've always said that you need to have about three to four accounts. You need to have an actively managed account, which is typically your day trading, and any trades that are under three to six months on that, for me, it's anything under three months on there. Now, if you have something that's a longer term idea on things, that's your long term account, that you'll typically only work with that account because you should have automated orders in it. Four to six times a year is the only time you should really touch that account. And you go through and it takes a while to get everything together. The other account that, in my opinion, people should look into is a dividend account. For that, the profits that you make from the day trade account, the short term account, go into either your dividend account or they go into your six month and longer horizon account on there. And I firmly believe everybody should have a 10,15, 20 year account that okay, at the end of each quarter, I take 5%, 10% of net profits and put that into the retirement account overall for that.
[00:22:17.320] - Creed
And there are several different Roths you can put up. And if you want to see a fun one, go look up what's called a backdoor Roth on this, and it allows you to do more than your standard Roth, and you can go down that rabbit hole. But that's the thing, is separate your accounts to meet your goals. Many traders and individuals have a difficulty.
[00:22:40.110] - Creed
With realizing that, okay, where do I want to be in three, five, or ten years?And in my opinion, do not make it finite, make it in the aspect of, I would like to be at this region, this area, and for me to accomplish that, I am going to set and do these things. Because you may hit a hurdle global pandemic, you may take a big hit in an account. You may have, unfortunately, a spousal loss or a friend loss or whatever things happen.
[00:23:14.830] - Creed
So you need to have goals, but you need to know what is a finite goal and what is an amendable goal overall. Because before COVID before even me starting the other hedge fund, I retired. I straight up retired. I said, you know what? I've made my money. I'm good. I can pay myself $50,000 to $100,000 a year, whatever I choose, and just go relax for a while.
[00:23:40.330] - Creed
Well, I did that for about four six months, and then everyone started asking me about the hedge fund, and I realized look
[00:23:45.140] - Agnieszka
The shortest retirement ever.
[00:23:47.850] - Creed
Yeah, retirement is not all it's cracked up to be, trust me. But I'm a little bit jaded in that as well is because while, yes, I came up from a very blue collar to give you ladies and gents, my graduating class was 22 people.
[00:24:02.480] - Creed
So I came up from a very small area to where people do not get to travel as much as I do. But thanks to the generosity of clients and to the fact that I was able to set money to the side, to be able to do is actually even this year and most of last year, I am typically either in a different country or a different region of the US at least one week out of the month, minimum.
[00:24:28.630] - Agnieszka
That's like a dream of many people, right?
[00:24:32.150] - Creed
Well, dreams are like support and resistance levels.
[00:24:39.530] - Creed
The intensity that people will hold them is completely different, and it actually comes down to the individual. I mean, even algorithms have a threshold within them. If you want to see a fun one, go back and look up the Thor algorithm for HFT trading.
[00:24:58.950] - Creed
It was, oh God, mid 90s on there.
[00:25:03.110] - Creed
I may be a little bit off on that date. And it was for UBS. And that's the thing, is those thresholds are different from everyone, so my dreams are different than others. I always joke that the next time I will retire is when I have 500 million in free cash flow. I will give away 450,000,000 of it, take another 50 million, buy an island and then just go away you know, because I like nice things. I have a paddock, I actually just ordered in a McLaren on there because I'm a car guy. For those unaware, one of my university degrees is for automotive restoration, but I'm not going out and doing that all of the time. I believe in goals. I mean, even this watch, this was actually one of my first goals. This is a chorus vertex. It's like 700, $800, but for someone, that is quite literally two weeks pay for some people in the world. So for me at that point in time, this was a big goal overall for me to get.
[00:26:08.620] - Creed
I didn't come from any of that. But now I actually just placed an order for another watch because I have to go to the UN in September. So your goals and dreams should and will change as you advance within your trading career and within any career, trading is just a tool to give you access to other things, be it the money or the knowledge of the markets. You may not be profitable in what you're doing with your trading because you just can't hold a stop loss or whatever, but you're still building your ability for analytics. Guess what, there's 10,000 plus other jobs out there for business analytics, market analytics, et cetera. So you're not wasting time. You may not have made money and you paid tuition to the market, but you learned a valuable skill on analytics.
[00:26:58.300] - Agnieszka
I love that point of view. I'm so curious about your opinion on that. Looking at the very high rate of failure, do you think it's even possible for a retail trader to live just off trading? And I mean, like for majority of people, right? And to become really rich, because paying bills, that's one thing, but I mean really built capital from just day trading, and I'm talking day trading, not the way that you're saying putting aside and investing and just day trading.
[00:27:33.520] - Creed
It's a little bit of a loaded question because first we have to define what is rich. Rich to me is different to rich to other. Rich to me when I started, rich to me now is completely different. I mean, I have numbers in my phone that are heads of state, president, stuff like that, which me just starting out as a trader, come on.
[00:27:54.950] - Creed
Rich to me was, oh man, I'm making $5,000 a month, this is awesome. So it's a matter of perspective yeah.
[00:28:02.350] - Agnieszka
That you can afford, I don't know, going on vacations a few times a year, having a nice car, like financial independence. That's what I mean rich.
[00:28:11.540] - Creed
Would it be fair for us to say what it would take to purchase freedom? Would that be a fair assessment?
[00:28:19.090] - Agnieszka
That's an interesting question.Yeah.
[00:28:20.980] - Creed
So if an individual said that the cost of freedom for them to do what they want, give to what they want, et cetera, is, I don't know $250,000 a year, pretty round number overall. And in fact, that would put you well within the top 3% of income earners of the US. That is not that difficult to do, especially if you keep parameters in play.
[00:28:48.390] - Creed
Creed what do you mean that's not that difficult to do? Well, keep it in perspective. If you have a million dollar account Creed how do I get a million dollar account? Funded trader program. You spend your $3,000, you prove you know what you're doing, blah, blah, blah. You take a million dollar account and you, at no point in time, have more than 1% allocated per trade.
[00:29:13.100] - Creed
Now, that's different from risk, that's full allocation, right? So that means that you're going to have $10,000 allocated to it. You take $10,000 and just use the spy for an example. Right now, the spy statistically, using the ATR average true range or average trading range on a 14 period time frame, lets you know that we on average are making about a 1% move, i.e. $4.
[00:29:38.410] - Creed
So you know you're going to make about $4 of movement in a day at maximum. Now, you know your max allocation. You know your highest probability amount of movement. If I was to buy in at the money, sell a vertical, whatever. Well, right now when we look at I'm actually looking at an spy, and granted, it is Friday, so don't take these numbers to heart. And at the money is going for about 80 cent. Okay?
[00:30:08.710] - Creed
So $0.80 on that. Let's just use a dollar for an easy number on there. Ten contracts will cost you a $1000. A 100 contracts cost you ten grand on ten grand for every $0.01 movement in the cost of that option is $1,000 profit to you.
[00:30:32.110] - Creed
Now, if we think about this and you think there are roughly 255 trading days in there, let's say your strategy is only 75% effective if you scalp three pennies on an options contract on that account using only the spy, not accounting for anything else, no wheel trades, nothing like that. You've just made about, what, $300,000 a year after taxes.
[00:30:57.230] - Agnieszka
Wow.
[00:30:57.880] - Creed
So it is 100% feasible to purchase freedom, but you will get in your own way.
[00:31:06.600] - Creed
Heck, I'll be quite frank, even with the accomplishments that everyone sees on that, and it's one of those things. I still get in my own way from time to time. And I'm fine with admitting that because my circle of friends around me, if I'm being too humble or too cocky they'll say, hey, step it up or bring it down totally overall. And that's something important.
[00:31:32.990] - Creed
Trading is lonely. The psychology of trading is only because what was it, about three months ago? Two, three months ago, like that? I was doing some zero DTES, and Janet Yellen came out and said something market trashed. Market just sank. In the course of, like, five minutes, we dropped about $5.
[00:31:52.080] - Creed
But guess what? I had a max loss on those zero DTES because by the time my limit order got well, it wasn't a full max loss, but it was a pretty heavy lot. I was doing something like 2000 contracts, so it would have been a total order of 4000 contracts.
[00:32:05.050] - Creed
I lost like 70 or $80,000 in five minutes. Now, be honest, there are not a lot of people that you can go to and go, honey, I lost $70,000 today.
[00:32:18.940] - Creed
I made it up the next two days on it. But could ask yourself sincerely, could you sit down with your friend or your coworker right now and go, man, I just lost 70 grand?
[00:32:28.680] - Creed
No, that's more than a lot of people's three year salary.
[00:32:32.010] - Agnieszka
For those unaware, I had a very similar situation. It was not because the market dropped. It was at the time when I was struggling still, like being silly and not keeping my rules, not putting my stops and hoping for the price to go back that one day. It was pretty intense. I went out after the market closed to a store, and I was coming back and I was walking with my husband and I was completely quiet. And he didn't know it yet, but I knew I want to tell him what just happened. And it happened that there was a Porsche parked, and I looked at the car and I said to him, I could buy this car with the money I just lost. Cash. It was so confronting to me because suddenly there was the money, the value that it's standing right here. And I would have never thought that this could have happened to me, that I would allow that. And that was a very pivotal point to confront myself with that it's like, okay, that's it. That cannot happen anymore. This was absolutely outrageous. So it's a big thing to actually take a lesson from it.
[00:33:47.930] - Agnieszka
And I know a lot of people who have lost a lot of money in the market that way.
[00:33:51.790] - Creed
Is it outlandish to say that it's almost better for someone to take a relatively account big loss early on, so you feel that sting. And actually this is something I do not believe I've shared on any other podcast until now, but about, I'd say about eight months into my journey, I actually became so numb to the wins and losses that I didn't even care.
[00:34:31.830] - Creed
Whether I won or lost on that or let me rephrase that, made a profit. Because won and loss really, it ties a word that doesn't need to be within your trading. But I did not care about the trade. I did not care about that. It was almost like going through the motions of making coffee. And at that point in time, I was still on not the size I put on now, but I was putting on 15, 20,30 contracts at a time. And I think the account was probably somewhere around something around 100, 150, something like that. So you start running those numbers, you go, wow, okay, you lose $5,000 on that account, you've just lost 0.7% of the account or whatever on there.
[00:35:12.100] - Agnieszka
Right.
[00:35:12.640] - Creed
So I actually had an instance to where I had to check myself and go, whoa, you just lost the equivalent of being able to take a trip to Jamaica on you, just for lack of better term, you just don't give a darn.
[00:35:29.970] - Creed
Overall, that's a problem. And that's something I have not heard.
[00:35:35.560] - Creed
A lot of other people or in fact anyone of the best minority talk about, is that some traders and some people, our brains get to the point of loss is loss.
[00:35:47.150] - Creed
There's a difference between an educated loss and you're being sloppy and slacking kind of loss, because you may have your stop loss in, you may go through that, but I would say you need to have about 5% to 7% emotion on a loss. And what I mean by that is that that emotion says something didn't happen. I feel a little something on this. I need to go back and look. And for any of my students, for any of my clients, my friends, et cetera, I've always advised in keeping an emotions journal. And I know for the guys out there, don't get me wrong, I've done a whole bunch of other stuff on that you got to keep. Mine own a ranch in Montana. There's not exactly a pansy aspect, but your emotions as a trader on there matter, especially when you're putting on real capital. I mean, I hate to say for those out there, yes, get started with $5,000, $10,000, that's great. But at the end of the market, you got to keep in mind that the markets are over $3 trillion. You could stack just the money from the forex market back and forth to the moon. I think it's something like 25 times or something like that. And that's just one market. That's not everything else. So you need to keep those emotions in check. And that's what I do when I'm trading the psychology of the market.
[00:37:15.470] - Agnieszka
I'm so happy we get to this because I can talk with you forever. I don't know how much patient people have to listen, but this is really so interesting. So, yes, tell me about the trading psychology, trading people and not the price action. What do you mean with that?
[00:37:29.410] - Creed
Yes, that's a term that a friend of mine coined a long time ago for me, actually, back when I was an educator on there. And he goes, So you're really not trading flow. You're trading emotions. You're trading people.
[00:37:45.660] - Creed
I went, yeah, I guess you're right. I guess I'm trading people.
[00:37:48.980] - Creed
And let's conceptualize this for a moment. What is the market? The market is nothing but an auction system, a tool that allows ideas to be facilitated in a solid object, such as money overall. Now, let's try and bring that in.
[00:38:10.270] - Creed
What do I mean by ideas? When a company is going up or down, and be it a commodities contract, a currency, a company, whatever, when it is moving, it is moving off of what? New information. And the people who are looking at that market reacting to that information creed. What about Algos? Guess what? Algos are programmed by people that put in parameters. Even the medallion fund. All those Those algorithms are adjusted with new information that is piped in overall. Some of the smartest minds are on that. But you know what they do? They're making adjustments, human adjustments.
[00:38:49.350] - Creed
Even AI run programs. What is it doing? It is compulating information that humans did. When the Nordstrom Pipeline blew up. Guess what? That was a human action that caused this thing that the AIS, the Algos as well saw.
[00:39:11.480] - Creed
So at the end of the day you cannot remove humans from the market. They may not be the one clicking the button to make the trade, but humans are the ones doing and making.
[00:39:25.640] - Creed
The actions that affect the underlying. So now we know every aspect of the market is affected by humans, even. If it's the weather. For those that say that, guess what? Weather goes bad. Humans are affected. They can't drive stuff. Humans. So when we get to the chart, now.
[00:39:47.630] - Creed
The common term on this, and you can go to the CMT and look this up as well, charted market technicians, not country music, television. You will start to learn about something called supply and demand zones. Now, you'll see this plastered all over 10,000 different videos, et cetera. And I buck the idea of supply and demand zones for essentially one reason. They try to separate what is going on. But keep in mind, for a market to do anything, there has to be a buy and a sell within this.
[00:40:34.080] - Creed
Otherwise, we're still in discovery phase of what's going on. When we reach these nodes, these pockets of supply or pocket of demand, they're the same thing. In fact, if you go and look at any of my videos on this or any of my material, I have written stuff out there. You can go find my PDFs and all that. I call them a business zone. Why? Because at this area, a demand came in for supply at this other area.
[00:41:07.640] - Creed
So as it was coming in and buyers step in, guess what? Supply came to demand. That's the only way that that transaction works, right? So it is a business zone, not a solely a supply zone, solely a demand zone. So now that we have that out of the way, we can start saying. To ourselves, okay, we now know humans affect the market.
[00:41:31.120] - Creed
We now know that these pockets are not separate. They are the same thing overall. The only thing is, is it above current price or below current price support resistance. That remains true.
[00:41:45.250] - Creed
We know that certain people for a fact prefer to only trade technology, biopharmaceutical, industrials. So you have a certain ideology in that market. Typically if someone grew up in rural. Idaho, what are they probably going to trade?
[00:42:06.080] - Creed
They're probably going to trade something around the agriculture section or they're going to trade something around technology. For those unaware, Idaho has a lot of technology in it. It's just kind of out there, a lot of servers.
[00:42:15.460] - Creed
But I digress, if you know that. That particular participant is in that background, that type of a previous education, that type of an ideology, then you're able to disseminate that.
[00:42:31.320] - Creed
Okay, these people have typically this type. Of a risk tolerance overall. So if we know that the people trading Caterpillar tend to be much more skittish from very volatile things, what's going to happen?
[00:42:51.580] - Creed
You're going to have a low ATR average true range. It is going to take more participation to break a resistance and it is going to be a better buying opportunity at support. So in typical as price descends down from, let's say the first of the month and gets to that lower business zone, what's going to happen? Oh my God, it's at a discount because I'm buying this for a long term move. Caterpillar is typically used for a dividend. Play on thing long term stop. So you now understand that participant, let's break it down again.
[00:43:29.240] - Creed
You know the humans that are doing it, you know how they're doing it, you know the way that they act and move within the market. So you as a trader staying agnostic to everything that's going on can go.
[00:43:44.470] - Creed
Okay, I know that these people in this market act in this way.
[00:43:50.650] - Creed
If on Apple I need 100,000 trades to break a resistance, okay, that's something where there's more volatility. But in Caterpillar I may need 200, 300, 400,000 and you're actually able to go back and see what the typical volume break is, find the average of what that is. There you go.
[00:44:13.780] - Creed
Now you have a number you can work with and say, okay, if I see more than 100,000 transactions at this area, so if it starts building up, 60, 70, 80, oh man, we're getting to that area, I should prepare to look for a break again. I'm a confirmation trader, not a presumption trader. I've presumed enough things in my life that have usually end up getting me burnt. I'll sacrifice the extra 10-15 cents.
[00:44:41.460] - Creed
Did they break it? That's just my thing. And once you see that volume building up and it confirms a break out of that resistance or support is holding. You're going to say, okay, the mentality of the participants has now stated that. At this business zone there is enough.
[00:45:03.440] - Creed
Participation and demand that they are willing to pay above this standard business price. Right in here. Example of that is if anyone has ever went for a limited edition, I'm going to be funny Beanie Baby furby, whatever, and they cost you $20. But all of a sudden you can no longer find your sky blue furby. Guess what? Instead of it only being $20, it's going to be 25, 27, 30.
[00:45:32.970] - Creed
Same with this. There is a finite amount of people willing to participate at any given time. That is a finite number. More people can come in, but there are only so many people in the market at that given time. So it's not like you can really. Work with a lot of that.
[00:45:53.670] - Creed
But you can see that. This number of people coming in has stated we are willing to pay more. What I like to look for is a standard breakout retest and it is why I utilize a specific candle called a Heiken Ashi candle on there HA candles for some other platforms. The HA candle is formulated through a sense of averages overall, as I discussed earlier on this. We have an abundance of individuals willing to pay more above this standard area. What I look for in the candles when I'm working for this is 60% or greater of the body of that candle, regardless of time frame. This works across any time frame, which surprised me, to be frank, when I started running the studies on it.
[00:46:45.240] - Creed
60% or greater of the participants have stated, yes, our average price will be above this standard. If true, what does that tell you? A majority of participants are willing to pay more so they break out.
[00:47:03.910] - Creed
We tend to see a little bit of a retest to the downside as people start to say, are you sure you want to pay more? Are you positive? Yes, darn it, I want more. Give me as much as I can have on this. The average continues to push on there. As the average pushes, you start to get that FOMO into this for all the people that were down here that said we are going to do the break, then you have the test. I like to look for a candle break or I'm sorry, a break of the high of the candle that broke the business zone.
[00:47:40.170] - Agnieszka
Right.
[00:47:40.580] - Creed
If that average is above that line. There, guess what, not all but a majority of the participants that stated, yes, we believe that there is more value to be had up here, so we are willing to take the risk of a purchase. Now in the idea that we can. Sell for more here, that's not me saying it. That's not me being looking at the market and form fitting data that is the True Blue transactions have stated, yes, we're willing to do this. The transactions that move within the market are direct representation of the humans, the idea, the psychology of the market. So I could care less if Apple comes out with the Vision Pro 37.
[00:48:28.610] - Creed
I could really care less because I'm able to see does the money of the market care?
[00:48:36.360] - Creed
I don't care if President XYZ Setter did this.
[00:48:40.650] - Creed
Does the money in the market care?
[00:48:43.660] - Creed
Because I trade a good account. I'm not trading a $7 trillion account, okay. I'm not trading the economy of Botswana. So you do not have the weight to really change that idea. Now, if you're running with Penny stocks and I actually did manage to do this with zero DTES on Spy one time because I fat fingered an order and I had something like I think it was like twelve or 13,000 contracts per side on there. You guys and Gals can go run the exposure on that one. I didn't mean to do it and I flipped it out really quick. It was a bad trade. I made money, but it was a bad trade overall, I digress.
[00:49:26.930] - Creed
You are not going to move the ideas of the market.
[00:49:29.880] - Creed
And if you can move the ideas of the market, you're not going to be on it.
[00:49:34.410] - Creed
Like, for myself, I cap myself at 25 million on an account. That's what I cap myself on on there. I've noticed that as I trade and do other things, I working with everything do not feel comfortable trading anything over that at any single point in time.
[00:49:50.160] - Creed
Overall, I know guys that trade larger accounts so that's the thing.
[00:49:54.910] - Agnieszka
Let me ask you about that. How did you build that immunity? Because a lot of traders don't have large accounts like that, right? And the process of sizing up requires building an immunity to your risk tolerance, right? How did you started build your risk tolerance? For example, let's say at the beginning, maybe you were risking, I don't know, $100 per trade, then maybe $1,000. And do you still remember how that process went or were you just like, I'm not thinking about that and doesn't do anything to me.
[00:50:34.380] - Creed
So this is the formula I use to build my account and what I've taught actually no. Now it's probably thousands of people, now that I really think about it, to build theirs and it's a metric that seems kind of odd because the words I use and you may have to slow down replay this part, but just bear with me. So let's say you're starting with a $10,000 account on there.
[00:51:03.810] - Creed
Realistically to see any type of progress that is appreciationable. Let's say you've already built a little bit. You've got your indicators, you got that, but you still got a 10K account.
[00:51:13.480] - Creed
Okay?
[00:51:13.750] - Creed
We're talking risk management here, right?
[00:51:15.980] - Creed
You would never allocate anything more than 10% of the account value to any singular trade so we would have $1,000. Creed why would you only allocate 10% when you have 10,000 to work with? Because anything can happen, especially in this market. So if that position you put on for whatever news comes out, you become unaccountable to what you're doing. Whatever, you take a total loss you only lost one 10th of the account.
[00:51:48.260] - Creed
And in this economy, $1,000 is $1,000. Don't get me wrong, I still argue over a $4 cup of coffee. But the thing about it is you can come back from $1,000 loss. It may take you a couple of weeks, but you can come back from $1,000 loss. Now, amongst that allocation, you're able to figure out your trading metrics, okay, I have $1,000 I can work with. With that $1,000, I'm expecting a $4 move in the market. My options cost is $2. i.e.I can purchase five contracts overall. Within that five contracts, I am willing to risk down to this level or above or take profit at this level.
[00:52:37.190] - Creed
And that's why for books and for lack of a better term, BS Media, the idea of, oh, we had a one to three or a one to six, I have almost never I had.
[00:52:50.810] - Creed
One trade on ReWalk that was actually a pure one to three. It's always like one to 2.7, one to 2.9, one to all this and trying to form fit a one to two, a one to three, anything like. That just doesn't work because we are in a market of finite numbers. 2.5437 is 2.5437 all day long, regardless of what it is. If you said, hey, I'm going to put a limit order into the market and get in at 250, your order fills at 249.98.
[00:53:27.000] - Creed
Guess what? You are wrong.
[00:53:28.800] - Creed
You did not get in at 250. It's not by much. Don't get me wrong. Yes, it is a nuance. But when we're looking at those numbers of I have a strict one to three, it doesn't work because that puts a finite in it.
[00:53:41.500] - Creed
What I do to change that up and to help build that account up is I go, okay, I have my $4 range to work with on here. My next resistance level, my confirmed resistance level is one dollars up. Oh, wait a second.
[00:53:58.080] - Creed
My next support level is a $1.50 down. Something's not right on this.
[00:54:06.880] - Creed
What I'm going to do is I'm going to wait for my 60% or better print above that resistance level because what happens now, okay, my second resistance can be dollar up, $2 up. But if I'm at a neutral area here now I set my stop at open. I have that one dollars move up on here. I've only got one dollars risk, true risk right in here, whereas I have another dollar and a half $2 move up, whatever that actual resistance is. And inverse, if you're shorting. So that's how you can do that.
[00:54:44.320] - Creed
Now, as you have those gains in your account, you go from 10,000 to12,000, you remove one percentage point. What I mean by that 10,000 – 10% is 1000. 9% of 12,000 is roughly 1000, 14,000 – 8%.
[00:55:08.340] - Creed
Continuing, continuing, continue until you're at PDT on there to, at which point, in my opinion, allocating anything more than 5% of account for a new trader and even an intermediate trader, there's no point to allocate anything more than five. Because once you get to PDT now you can start doing a bunch of day trades and you really need to hold that risk metric in there so you don't end up below PDT.
[00:55:35.550] - Creed
After 25,000, I stopped and stop whenever I'm teaching people on that, removing any percentage on it, because 5% of 50,000 is different from 5% of 25,000. So you're still growing how much you're allocating and working with, but the emotions attached to that are still the same.
[00:56:01.330] - Creed
And also I almost never look at my account.
[00:56:05.540] - Creed
In fact, pretty much the only time I ever see any account values on things are when I see my taxes at the end of the year, something like that. And that's the thing to keep in mind is even then I really don't look at it unless I get a margin call for XYZ reason on things. Like, I had a pretty big position on soybean a while back in one of my accounts, and soybean tanked.
[00:56:27.310] - Creed
It didn't do what it was supposed to do on there. And I ended up getting a small call on that because it was with a starter account. And I went, that's different I didn't even know the account was near anything like that.
[00:56:38.510] - Creed
So what happened? All right, send the money over, close the trade out, send the money over. Get over it, things happen.
[00:56:42.960] - Creed
And when you're using that type of a risk metric, it just really helps you accelerate things. Something that I would say to keep in mind though, is that to give you the best chance, once again, remove anything that has to deal with a notional value, convert it to percentages points, ticks, anything like that. And then even when you're journaling and keeping track of things, remove any aspect of money. Because as I was joking earlier, yes, I'll still complain over a $4 cup of coffee, but when you see that dollar sign, that pound sign, et cetera, it talks to our lizard brain and says, hey, you've made or lost this amount. And more people statistically have a problem with loss, and you generate more energy in your emotions from loss than you actually do in gains. And I think that's something really unique. So if you can remove as much as you can as a notional everyday reminder from your platform, your journaling, all you're doing is saying, okay, I'm just adding points to what I'm doing on this. I started the day with 5000 points, okay? The gamification of what I'm doing on this, and don't get me wrong. Trading is not a game. But think of it in that manner. At the end of the day, with everything I did, I'm now up to 5200 points. Or you know what, I got hit with a Whammy and now I'm down to 48 35.
[00:58:19.890] - Creed
And you say it in points, as we say with Affirmations and everything else.
[00:58:24.520] - Creed
As you say, so it shall be. Well, if you continue to think in that manner, yes, eventually you have to look at a number on things as far as a cash value, but while you're trading journaling all that, convert it into the points, percentages.
[00:58:39.870] - Creed
Because why add another emotional headache to this already very difficult thing that we're doing? I mean, as we said before, we got over a 90% failure rate on things, so why add that hassle? But that's the long way of saying how I did it and how I developed it and how I continue to do it. Because there's a very big difference in moving and working 10,000, 50,000, even $100,000 to when you get to the seven, eight, nine figure game on things.
[00:59:18.980] - Creed
Or let me rephrase that job not game job. There is because you start to reach an aspect to where you physically cannot allocate any more money to a trade. Otherwise you become the market. If you only have 100,000 people with ten shares apiece on there, guess what? You got a million shares.
[00:59:44.550] - Agnieszka
Right.
[00:59:44.880] - Creed
Cool.
[00:59:45.260] - Creed
If you decide to put in an order for 25% of that float overall, you're the big shark. Who are you selling to? Who are you going to be able to sell to? And you sure as heck are not going to be able to sell that whole thing at one point in time. So this is where you start to balance out and you start to go.
[01:00:07.090] - Creed
Okay, well, I've got a seven figure account. I only like to trade ten specific stocks. Each one of those things allows me.To only allocate, I don't know, 10,000 shares and 50 covered options on there.
[01:00:20.570] - Creed
Okay, you now know your basket. The good part about that though is that you can now average and get an expectation of if I know I have a 70% success ratio and this is my typical size overall, you can actually extrapolate out to give yourself the best bet of okay, I think I will make a million dollars this year.
[01:00:40.690] - Creed
At 70% success rate.
[01:00:42.640] - Creed
Man, for me to purchase Freedom, I need 2 million. I need 3 million. So what do you got to do? You got to go find another market. Well, because you have now created the strategy and honed in on your analytics. A person is a person. A trade is a trade. If you are trading a REIT or if you're going to purchase a house.
[01:01:08.710] - Creed
Guess what you got to do? Where's the resistance? I.e. what's the lowest point the buyer is willing to go on that house?
[01:01:14.660] - Agnieszka
Right
[01:01:15.080] - Creed
Where's the support base minimum.
[01:01:17.340] - Creed
So you take your skills that you learned over here, apply it to another market and start creating your other streams of income to go with it. The only thing I would advise against and this is just my own personal opinion on there, is if you are going to be a mentor and you can show and back and do everything you're going to do, charge more than $99 an hour. Because I really messed that up and that was my cost for those unaware.
[01:01:43.580] - Creed
When I went because I wanted to give everything that I could overall. But there was a cost. I only at one point in time charged $99 for my information and an hour of my time. I'm at a point now that I quite frankly cannot do.
[01:02:05.930] - Creed
That the value of the information and the amount of time or value that people are willing to put into it is directly correlated to how much that you cost. And I'm not about trying to make the money. I'm trying to make fact of, okay, you did such a good cost input on this that you're actually going to find value and succeed at what you're doing. And that's what I want more. I want more success stories from my students and I hate to say it.
[01:02:40.640] - Creed
But you do have to have a barrier of entry. Someone that is not willing to commit to what's happening. Don't get me wrong, you can trade the market as a hobby, as a game, binary options, stuff like that.
[01:02:53.820] - Creed
But if you're serious about wanting to purchase freedom then you have to make a commitment and you have to find good mentors. That is a non negotiable on there.
[01:03:08.160] - Creed
You have to stay committed and the time frame is different. The fastest I've ever seen anybody go from zero to hero was about two and a half, three months. And this is just someone that was a freak of nature and went, I'm trading one thing, only one thing and I'm always going to be looking at it when I get off of work. Okay, well guess what? Their 10,000 hours went to one thing very quickly because they weren't bouncing around.
[01:03:29.890] - Creed
They said it was a MACD. Yeah, they used a MACD and Heiken Ashi's and they only focused I think it was Apple, it was either Apple or amazon and that was the only thing. So think about it, that individual they're not hopping to different symbols, they're not changing indicators, they're not going through and looking at guru X, Y and Z. So you get two or three months on there. You've got let's say on the average 2000 hours on one stop, right? And one set of yeah, you're going.
[01:04:00.860] - Creed
To have some success. I'd be surprised if you did that's right overall on there. That's the long gambit about it and that's how I look at things when I'm trading people and understanding the participant of the market and it's difficult. On average I will trade about three to five equities at one point in time. I will put ES and SPX Nasdaq and QQQ whenever I'm trading those futures. I can also then have a trade initiated on the underlying because like we said before, you may only be able to put so much money into one specific thing. Well, if you know the Es, the SPX and the Spy move with each other, congratulations. They all run in correlation. So now you're able to devote three X capital. So you're not becoming the market, but you're still taking advantage of the same move. You can go and see this through many different things. Don't get in the bonds to begin with. I'll just be straight with that. In my firm opinion, you need to understand a regular market and quite frankly understand the options market itself and how to trade the options market before you get into bonds.
[01:05:12.090] - Creed
Because, and I know I'm going to get crucified for this one, but bonds are a much more sophisticated option is what they are. When you really break down the idea of them on a 10,000 foot overview, they really are just a much more sophisticated option. So avoid bonds to begin with. Once you understand terminology, you got some time in, you're showing a little bit of profit on stuff, then hop over the bonds because that opens up a whole nother thing that we can talk about later on on stuff.
[01:05:41.760] - Agnieszka
So the question on that not on the bonds, but options or stocks for someone who is still trying to build consistency.
[01:05:48.990] - Creed
How big is the account?
[01:05:52.840] - Agnieszka
On average let's say above the 25 so that you can actually day trade for day trader. Well, because that's the reason a lot of traders would go for options because they don't have such a big account, right? But imagine you do have it and you have the choice.
[01:06:10.550] - Creed
Standard leverage for a lot of accounts is two to three X. So you have 25,000 in cash. They're going to allow you 50 to 75,000 in purchase of stock.
[01:06:20.710] - Creed
So with that being the case, in my opinion and that's firmly what it is, if it is under $15, just do the stock because most of the time the options have no flow. Yeah, you get a little bit on NEO and sometimes you get stuff on Ford, et cetera.
[01:06:40.460] - Creed
But as a totality of stuff, if it's under $10-$15, just stick to doing the stock.
[01:06:47.670] - Creed
If it's over that and you start to see the flow of the options to actually have some good volume and that is dependent on each individual overall. And keep in mind, open interest is not volume. That's a big thing with options. Open interest just means the order is out there. Doesn't mean anybody's actually transacting with stuff.
[01:07:08.760] - Creed
So if it's over $15, there is good order flow within the volume, then yeah, go to options. Why not? As long as you're not seeing something like, okay, for the totality of the day, there were 400 options. So tomorrow I'm going to buy and at the money, and I'm going to buy 100 of them. No, I'm not going to become a quarter of the market overall. I might buy ten and look for a move on there five to ten. So now you have the issue of okay, well, I can only allocate five to ten on this. So you bring that up, you have it over in the window.
[01:07:42.010] - Creed
Automate your orders. It's the biggest thing. Automate your orders and then you can go, okay, well, I've devoted my capital to here. Let me go over this stock over here. So work in an area of prioritization. You can leverage your money better with options both ways, profit and loss. Keep that in mind. With stock, you're not at as much exposure as you are with the option and you can hold on to that stock. Whereas with the option, it has an expiration overall.
[01:08:17.430] - Creed
So I'm not saying to be a bag holder, but when you buy stock, you're also buying a little bit more time to maybe you missed an analysis or maybe there is a report coming out keep that in mind.
[01:08:30.260] - Creed
So if you wanted a nice hybrid covered calls, you get stock and you can work options.
[01:08:37.140] - Creed
That's actually a friend of mine, Jeremy Veerland. He puts one through there and he does a modified will strategy. And I've ran that strategy and eventually end up at net zero on your shares if you do everything right and takes a while, don't get me wrong, it takes like two, three months to end up hitting that but think about that. You purchased your shares and you saw that, let's say it's Ford. You purchased your shares, 100 shares here, and you have that option strategy, and you're just selling calls and puts both sides as you make that profit on there because Ford tends to stay in this range. Cool.
[01:09:07.170] - Creed
You're making $50, $100 per $100 on here, and it cost you $1,000.
[01:09:12.720] - Creed
By the time you have ten trades done, you're at a net zero on what this cost you. And you still have this to rent out for those covered calls. But you also own the stock, and it will pay you a dividend right later on. So now you made one transaction to buy the shares, but you're leveraging those shares three different ways. Covered call, cash, secured put, and then a dividend payment if it is a dividend stock. So there's a whole bunch of different ways to do that. So I guess it depends.
[01:09:46.630] - Agnieszka
Creed, we can go on and on. But knowing how busy you are, how much time I have taken already of yours. I am so grateful that you really were able to allocate this time for me and for my listeners because you have just given so much wisdom and so much knowledge and so many great not just tips, but really the way to how to see the market, how to set yourself up for success. This was wonderful. I want to ask you, can you point people in the direction where they can either read something from you or get more information or I don't know, you probably have a YouTube channel?
[01:10:29.560] - Creed
So, I do not have a YouTube channel right now, but you can find a lot of my old videos on Bullish, Bears, Money.Net, Anne Marie. I did a podcast with her as well. But honestly, I'm an open book, so you can find me over on Twitter. And if you want to get a hold of me for whatever reason, you want to talk about mentorship, you want to talk about getting with me on a deal to do either in the hedge fund or real estate stuff, whatever, I'm an open book. If I don't respond instantly, well, you guys kind of understand why, because, hey, I still got to trade. I got two Belgian Malinois. They ate me out of house and home. But you can find me on Twitter. That's the easiest place. And all of my website links and all of that are around Twitter. So nomadictrading.com. I'll do a fun one. I'll do a fun one, too, because I am who I am. And if you do enough research about me, you'll be able to find this.
[01:11:24.940] - Creed
So I will give the last seven digits of my cell phone number on this. You have to figure out the area code. Okay,
[01:11:36.670] - Agnieszka
I'm going to write it down.
[01:11:39.630] - Creed
The last seven 944-9666. Okay.
[01:11:46.240] - Agnieszka
Okay. So I'm going to post this number also under the episode in the notes so that people can figure it out, and then they can send you an SMS if they have a question.
[01:11:56.060] - Creed
And what I do, I have clients, I have friends, and that number is out in the ether, so it is possible to find it. But if I don't respond to you instantly, keep it in mind. I get a lot of different messages on stuff, but I am happy to speak with individuals. If you're serious, if you're wasting time, I'll block you. I'll just be straight with it. But if you're serious about things and you really want to have a real conversation, don't be afraid to reach out to me. I'm happy, and as I travel, I meet people all the time.
[01:12:29.810] - Agnieszka
Fantastic.
[01:12:30.490] - Creed
Happy to do that.
[01:12:31.320] - Agnieszka
Well, that brings us to the end of this episode, and I hope that this will help many traders who are listening to get some good perspective and also kind of look at their own way of how they perceive the market and how different you can do it. For me, listening to you was really eye opening that you cannot just focus on one thing, right, that everything is really connected to each other, and you have to see the broader picture of financing and really money management because you can be a good trader. But when you make that money, you have to know what to do with it in order to multiply it and to keep investing and having that broader perspective, broader view on things. And I really like the tip that you gave about talking about the money in points, right? That is just, I think, one little trick for your mind that will help you to disconnect a little bit better from that money value that a lot of traders associate with their own value and self worth.Thank you very much for that.
[01:13:57.560] - Agnieszka
So thank you again for joining us for this real conversation today. I really, really appreciate you sharing your insights and this very refreshing point of view on trading, trading psychology and human behavior. And thank you everyone for listening to the Confidence in Trading podcast. Make sure you visit confidenceintrading.com and grab your free copy of the Consistency guides with ten easy ways to improve your trading. If you enjoy my show, please review it and rate it on Apple podcast. And be sure to subscribe so you can come back for a real life conversation in the next episode. Thank you Creed for joining.
[01:14:44.750] - Creed
Thank you for having me on the podcast. And everyone make sure to subscribe. She's doing great work and I appreciate you opening the floor for me on this.
[01:14:54.200] - Agnieszka
Thank you, Creed. Until then, this is Agnieszka Wood from Ahead Coach. And don't forget, you too can realize your dream without losing yourself and your confidence in the process.
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✉ Contact me: launchyourlife@aheadcoach.com
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