IT Software Specialist
But was Edison a stock trader?
Probably not. However, when you examine how he approached his work, you’ll quickly see that in many ways, he thought like a successful stock trader.
To Edison, every failure, no matter how costly, was a success because it increased his knowledge or advanced his understanding in some way.
“Results!”, he is said to have exclaimed when challenged, “Why, man, I have gotten lots of results. I know several thousand things that won’t work.”
Many of the world’s wealthiest traders would identify with Edison’s mindset. They’ve achieved success by treating every loss, like the great inventor’s failed experiments, as a priceless learning opportunity.
With this attitude, every trade is not just an opportunity to make money, but a standalone test. Every trade gives them a chance to gain more knowledge and improve their understanding of how the market works. Also, what their chosen indicators are telling them about it.
It’s this kind of analytical attitude which has influenced electrical engineer Wellington Rodrigues’ development since his first days as a trader. Finding early on that his assets were not growing as quickly as needed to achieve his goals, he started searching for better alternatives.
The solution he eventually found was options trading, an instrument he freely admits he knew nothing about until he recently discovered Total Alpha.
Brazilian native Wellington Rodrigues has been working as an electrical engineer in Memphis, Tennessee for five years. Recently, he began looking into stock trading as a means of making faster progress towards his goal of financial independence. Since he started trading with Jeff Bishop and Total Alpha, Wellington has enjoyed some significant wins. More importantly, he is rapidly acquiring the knowledge and skills he needs to eventually escape the stress of his current job position and become a full-time trader.
Now, options are often regarded as risky, particularly for beginners, but with the right systematic approach, there’s no reason why options can’t be traded safely. Moreover, from Wellington’s perspective, options also offer a unique opportunity to grow a trading account very rapidly.
Working with Jeff and Nathan, he has already scored some impressive, confidence-boosting wins including: 78% on video streaming company Roku Inc. (ROKU), 78% on CostCo (COST), 51% on the SPDR exchange-traded fund (SPY), 50% on Kirkland Lake Gold (KL) and 26% on the renowned Sotheby’s auction house (BID).
The variety of stocks which Wellington has successfully traded emphasizes the point that, unlike the value investor, the technical options trader doesn’t need to have specialized knowledge of particular market sectors or companies operating within them.
All that’s necessary for success is a thorough understanding of the indicators you are using and the ability to apply them dispassionately in even the most stressful live trading situations.
“I’m trying to achieve financial independence, so I can avoid the stress levels that come with a demanding, fast-paced job.”
Wellington has experienced his share of losses, too. Paradoxically, it’s his attitude towards these losses, which provides the best predictor of his future success. “Learn with every single win,” he says, “but most importantly, learn with every loss, as well.”
In contrast, many new traders hoping to survive in the markets regard their losing trades as entirely negative experiences. They see losses as emotional wounds that need to be endured and recovered from as quickly as possible so the trader can return to the markets with renewed optimism.
Of course, it’s true that traders who hope to survive in the markets need to learn to accept with equanimity the losses which form an inevitable part of any trading career. They also can’t allow emotions like anger and frustration lead them to break important risk management rules.
As essential, as emotional discipline is for traders, it’s only one step on the long road to mastery. Like an engineer sifting through the wreckage of a burned- out machine, the high-performance trader wants to know what went wrong and why. She also wants to know if there was anything she could have done differently to bring about a different outcome.
In many cases, the answer will be no. The set-up in the market worked many times before; the trade was entered at the right time according to the strategy being used. It’s just that on this occasion, things didn’t work out; the market did something different.
And that’s okay. It happens. The smartest thing to do is to shrug it off, learn whatever you can, and start looking for the next opportunity.
On the other hand, if you’re meticulous in your analysis, you can find trades in which it’s clear you did something wrong.
“I chose to join Total Alpha due to the fact that Jeff Bishop has skin in the game, unlike most services out there.”
It may be that on closer inspection, the indicators were not telling you what you first thought. Perhaps if you’d looked at another indicator, it would have told you that the momentum behind a move was not as strong as you first thought.
Alternatively, maybe you made an emotional decision to exit from an apparently losing trade just before it turned in the direction you had initially expected.
Or, perhaps you got greedy and stayed in after hitting your target only to see the trade turn against you and wipe out your profits.
It’s this kind of cool, collected analysis which Wellington brings to his trades and which has already enabled him to identify the timing of his exits as a weakness he needs to improve. Fortunately, he’s always eager to learn more.
He knows that understanding the reasons why a particular set up was a good opportunity, or why a specific trade failed, is crucial to achieving his goal of trading independently. And it’s this which he identifies as the key benefit he’s gaining from his sessions with Jeff and Nathan.
“My recent wins include ROKU +78% in two days COST +78% KL +50% SPY +51% BID 26%, and the list goes on.”
As Wellington puts it: “I can say that Total Alpha has helped me lay a solid foundation for my success by providing not only the education resources but the “why” on selecting the trades, including in-depth information. I can say that I’m a better trader today than I was yesterday, and ever before in my life.”
With understanding comes confidence, and Wellington is confident that he’s on the road to financial independence. However, as a good engineer, he’s also realistic about the time needed to bring any big project to successful completion.
That’s why he calculates that it will take him two or three years to acquire the knowledge he needs to quit the stress of his job.
Unlike many people who daydream about financial freedom, this young trader also has a clear idea of what he’ll do once he reaches his primary goal.
He puts it like this, “I want to be able to be more emotionally present for my family, donate part of my gains to help kids without families, and be able to become a full-time trader soon.”
Given his systematic approach, no one at Total Alpha will be surprised when Wellington’s dreams become a reality.
Do you have a Raging Bull success story to share?
IT Software Specialist