LoneStock Trader, More Interviews

LoneStock Trader Interview

Lonestock

QUESTION – Thank you for taking the time to participate in the Q & A
session. Before we start in detail. Would you like to share with
everyone who may not know, who you are, what you do, where you live and
what trade room (if any) and where you can be found everyday.
FRED LONESTOCKTRADER – Thanks for having me on.
So, I’m Fred. I’ve been trading US stocks for 10 years. I’m currently living in Thailand.
I don’t run any service, nor trading room, but I have a website on which
I share some knowledge from time to time: http://www.lonestocktrader.com. You
can also find me on twitter (@LoneStockTrader).

 

QUESTION – Do you trade full time? If not, what do you do for a
living? What got you into trading? What are your trading and life
goals?
FRED LONESTOCKTRADER – Trading’s been my only source of income for the last 5 years. Ha! What got me into trading… Well, I guess, like everyone else, the
allure of easy money. Didn’t know it was going to be the hardest easy money I’d make.

In term of goal, we’ve come up with a list of cities around the world
with my wife. We’d like to try and live at least 6 months to a year in
all of those different cities, learn new cultures, new languages, new
skills, making tons of new friends and helping locals.

I order to be able to so, I’ve a dollar figure in mind which would allow
us to put this plan into action. The deadline is 2 years which is
doable. And if not reached on time, ready or not, let’s go anyway 😉
QUESTION – What failure or setback in both trading and life have you
experienced that has set you up for latter success?
FRED LONESTOCKTRADER – My biggest setback was losing $700k or 70% of all the money I had at the time. I became a millionaire before turning 30, by luck. I was working in a
company that got acquired, and I got a small share of the deal.
My banker started “managing” my portfolio but the financial crisis
struck in 2008 and I quickly discovered that he had no idea on how to
make money. And neither did I.

The worst thing that can happen in trading is starting with a big win. I
started with a huge $100k profit in one trade and that gave me the false
sense of belief I knew what I was doing. And after a while, that huge loss hit me like a freight train.

The hardest part was that I had already gotten used to the idea of not
having to work anymore in my life. And in one day, I shattered that
dream.

But this really pushed me to do whatever I needed to in order to not
have to work a regular 9-5 job.
As cliche as it sounds, I made me discover that you can make yourself
whatever you want to be, as long as you put in the effort.
QUESTION – Outside of trading, what strange or unusual habit do you
have and enjoy?
FRED LONESTOCKTRADER – Hmmm… Strange habit… Not sure.
I do sometimes enjoy having a drink alone at a bar which might seem
weird. I’m a sucker for Manhattans and Old Fashions.

 

QUESTION- How would you describe your trading style? How has it
evolved over time?
FRED LONESTOCKTRADER – I’m a semi-discretionary techno-fundamentalist trader. Sounds like a mouthful I know. My entries have some discretion in it, such as a chart pattern, or a great industry theme. But my exits are systematic.

I almost never trade ETFs. I try to catch individual stocks starting a
new big move fueled by kick-ass earnings/sales growth (or expectations
of it).

I work on improving my strategy almost everyday, using my past trades to
find better exit rules, refined entry criteria and better postilion
sizing.
QUESTION – What exactly is LoneStockTrader and your vision for it’s
future?
FRED LONESTOCKTRADER – When I started LoneStockTrader.com, I wanted to help the many struggling  traders understand how to reach profitability through my own experience. So I wrote an ebook and quite a few blog posts.

Now I’m thinking of teaching my trading strategy and how to improve
one’s trading through post and real-time analysis.
But I’ve been slacking in that department since it is a lot of work and
time spent, time that I’m spending working and improving my own edge.

 

QUESTION – What advice would you give your younger self (both in
trading & life) ?
FRED LONESTOCKTRADER – To my younger self, I would tell him: “you can learn anything and acquire almost any skills you put your focus on.
Every single one of your problems has been solved by someone else who’s
written a book about it. Learn to love reading, for it’ll put you ahead
of 99% of the people.”

 

 

QUESTION – What good & bad advice do you hear often in trading?
FRED LONESTOCKTRADER – A good advice I hear often is “trade small”.
One of the main reasons traders blow up is because they are trading too
big. And trading too big can turn ANY positive expectancy strategy into
a losing one.
So they are trying to grow their trading account faster by trading too
large, which in turn makes it impossible to actually grow an account.

A bad advice I hear often is “find a trading strategy that suits your
personality”.
The issue with this is that very few know themselves well enough in
order to do so.
It’s a trial and error process. My advice would be to learn as many
different trading strategies as you can and, once you have good overall
view of all the main different trading strategies that exist, create one
that makes sense to you.
QUESTION – What are your favorite trading & non-trading books to read
and why?
FRED LONESTOCKTRADER – My favorite trading books are the ones that inspired me, that showed me what’s possible to achieve with a lot of work and focus. Those are the
books that kept me going after each setbacks:

“Insider Buy Superstocks” by Jesse Stine

“How I Made $2M in the Stock Market” by Nicolas Darvas

“Reminiscences of a Stock Operator” by Edwin Lefevre

The Market Wizards book series by Jack Schwager

My favorite non-trading books are:

​”Mindset” by Carol Dweck – This book teaches you how to reframe your
thinking so you’re able to learn anything, to acquire any new skills.

“Atomic Habits” by James Clear – Learn how to create new good habits and
get rid of the bad ones in an almost effortless fashion

“Rich Dad Poor Dad” – Quit being the consumer, the sucker, and get into
the investor’s mindset

“Secrets of the Millionaire Mind” by T. Harv Eker – Discover the
limiting beliefs that keep you from making money

 

QUESTION – When you have lost your mojo or focus (both in trading and
life), what do you do to get back on track?
FRED LONESTOCKTRADER –  Beer/Wine/Sake/Gin/Whiskey/….

Then Post-analysis. Just reviewing my past trades allows me to see right
away what mistakes I make over and over again and how can I improve my
trading.
When you do post analysis, you can’t rationalize anymore. Your own
mistakes are undeniable. That’s possibly why so many traders are not
doing it.
But every single time I do that exercise, I discover ways to improve my
trading.
Also, I love doing things others don’t like to do. That’s my clue that
I’m on the right path.
QUESTION – If you could have a big billboard with your favorite
saying or message on it, what would it be.
FRED LONESTOCKTRADER – Don’t be too quick to judge. A mind is like a parachute. It works when it is open.

 

Thank you Fred for taking the time for our readers to get to know you. A fascinating interview to say the least. Wish you nothing but continued success!

1 thought on “LoneStock Trader Interview”

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