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.
JAKE: Hello mTradingMedia & Beyond the Trades!
Thanks so much for having me. My name is Jake aka @BehindTheBid. I’m also known on Twitter as @NasdaqCowboy. I host a live premarket show on YouTube every day called “Behind The Bid”. I’ve been a student of the market for over 11 years, and I find it more fascinating that sports, cars, gambling, or Netflix. Stocks, of course, are shares in companies, run by real people, covered by analysts, and supported by an ecosystem of constantly changing opinions. All of these things together move the price of stocks, which we are fortunate enough as traders to be able to try and predict. There is situations which arise each and every day that are fun to bet on or just fun to watch unfold.
QUESTION : What exactly is Behind The Bid and your vision for its future?
JAKE: Behind The Bid is a daily show on YouTube where I explain, rapid-fire, what’s going on in the premarket. I generally pick 8-9 stocks that are gapping up or down and explain what’s going on with them, their backstory, and the sentiment on Twitter (bullish or bearish). I think we can all agree that there is *a lot* of things going on premarket, so this is a curated list of the most interesting stories that I think will affect stocks. That show is live streamed every day at 8:20am ET on YouTube, or if you miss the livestream, it is archived on the YouTube channel to be viewed anytime.
QUESTION– How would you describe your trading style? How has it evolved over time?
JAKE: I love trading special situations. I love it when traders learn that there is a forward event happening because then you can make very smart bets. For example, GameStop $GME said in early January that they had 2 bidders who wanted to take the company private and that they would announce formal bids in mid February. The stock popped 15%, and several analysts upgraded the stock. Then over the next month, many traders debated whether or not anyone would actually want to take this struggling company private — many people think that GameStop will go the way of Blockbuster. So as a trader you can decide what you think will happen, and bet accordingly. In late January, GameStop announced that, in fact, no one wanted to buy it on agreeable terms and the stock dropped 25%.
Another trade as old as time is when stocks run into forward catalysts like FDA approval or partnership news, and that gives you a great opportunity to get short after the news is announced. Last year both Verastem $VSTM and AcelRx $ACRX ran into their FDA approvals and after the approval date of the drugs, both fell 50% in a few weeks.
Lastly, the news does affect stocks! When a CEO abruptly leaves a company, or a short seller research firm releases a damaging hit-piece, or a biotech gets some unexpected positive drug results, those stocks can run for days. If you can figure out the magnitude of the news as a trader, you can decide if you want to bet on this sort of post-event drift.
QUESTION – What good & bad advice do you hear often in trading?
JAKE: I think that each trader has a journey. You start your journey outside the trading community and then you likely find some marketing material that says trading-is-easy and you can get-rich-quickly. Then you lose some money dabbling for a few years and blow up a few accounts. Maybe you even try trading full-time and give it up. I would say the best advice I’ve heard is just to stick with it, and pay attention to the markets each and every day. I agree 100% with Bill Gates when he famously said “Most people overestimate what they can do in one year and underestimate what they can do in ten years”.
QUESTION – What are your favorite trading & non-trading books to read and why?
JAKE: I very much enjoyed Mike Bellafiori’s two books “One Good Trade” and “The Playbook” because they come from his real experience as a trader and a trading coach combined with the mentality of elite athletes.
QUESTION : What failure or setback in both trading and life have you experienced that has set you up for latter success?
JAKE: I have a gambler’s mentality, and a very high risk tolerance, which has gotten me in trouble more times than I can count. Several times I’ve risked it all, and sometimes lost it all. Some people have asked me how to mentally take on risk, because they are scared to lose, but I just don’t have that problem. My biggest challenge in trading and life has been to diversify my bets.
QUESTION – What advice would you give your younger self (both in trading & life) ?
JAKE : Community is important in trading. If you want to get better at something, you need to have peers to talk to about your ideas and your progress. I would tell my younger self to start reaching out to other traders sooner.
QUESTION: Thank you Jake for taking the time for our readers to get to know you. How can our readers contact you on social media?
JAKE: You can follow me on Twitter at @behindthebid or on YouTube at https://bit.ly/behindthebid