Saturday, November 19, 2016

Interview with Beard of Wall Street @BeardOfWallSt



Welcome to Chedsblog!   
-Helping new traders avoid my old mistakes-

OTCBB Pennystock trading article topics include:

Reading financials and filings
Market makers 
L2 and chart analysis
Understanding the competition
Using social media to trade
Price and volume study
Bankroll management
Game theory
Sub .01 low float setups
Interviews with influence makers

OTCBB Penny Stocks Trading Market Makers L2 Charts Technical Analysis Financials Learning Discipline Networking Planning Bankroll Management Taking Profit Paper Trading Options Nasdaq NYSE Small Cap Stock Picks Alerts Bashers Growth Pennystock Sub Penny List Stop Loss Top Hot






Background information:

The following is from initial work with GOLDEN HOUNDS for an interview that never took place, and thus I am grateful to share with you some additional insight for this interview.

Political view- New world order doesn't look so much like a conspiracy theory anymore. I vote for myself
Hobbies- fishing, music, writing, teaching otc sheep how to survive on their own in my private chat, hiking, skiing, skydiving, cooking, shooting range, outdoors, anything that puts my mind to work
Fav sports team(s)- NJ Devils, Jacksonville Jaguars, Manchester United
Fav music- Anything that involves real musical talent and creativity
Fav movie- Super Troopers
Fav food- the edible type
Fav vacation- Costa Rica

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Here is an article Beard wrote and shows you a little bit about his philosophy on the OTC:
"Why I chose to focus on low floaters"

Beard - I am not here to convince anyone to switch strategies or their approach on how they confront trading penny stocks. I simply hope to help you think outside the box in anyway possible.

I am sure many of you have been there - you might be up 50% one minute and down 25% the next. The joy/fear of low floaters can be a very stressful thing. First and foremost, I suggest those who cannot watch L2 on a very strict schedule, should not just jump into low floaters as they can be brutality volatile and rewarding at the same time. Nothing is more discouraging than hindsight with a taste of “woulda, coulda, shoulda”.

I want to give some insight and thought “outside the box” that might help explain why I choose low floaters.

Many of you know that I am not the typical OTC trader. I have come a long way to figure out my style and every month, new variables I notice force me to readjust my strategy as it benefits my approach.  This is often shared ONLY in my private chat.

I choose low floaters because it is a lot less difficult, stressful, and annoying to watch. Also, as much as some hate to hear this, it is a lot easier to help your position out if you understand what I mean.

The timeline might not be suitable for most but there is a reason I have a watch list that I share in my private chat. I actually watch these tickers drop down and take note to which market makers are most active. This is something vital that I will not go in depth but I can assure it that it is better to be patient than to follow someone else.

Watching low floaters helps me understand which market makers are up to what and when it might be the right time to buy. More than likely you will find a lot of chatter on a ticker via social media that might be “too early” – and I will be honest, sometimes being too early can mess with your whole approach. Just like how sometimes “too thin” of a stock might slow down MoMo dramatically due to flippers flipping on each other.

It’s nothing personally when I don’t respond to questions on your thick piggy. It is just something I am comfortable and acclimated with (low floaters). I advise everyone reading this article to find their own approach that fits their lifestyle and not to rely on other people when trading… ESPECIALLY penny stocks.

The information is out there.

-B.O.W.S.
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INTERVIEW PREFACE - CHEDS' THOUGHTS

Beard has always been kind to me. He is a very strong trader and does not tweet or message board that much, but when he does it is quality content. He is someone I look too as he does not spend his time trying to slaughter sheep, rather he stays under the radar and does his thing, and is influential. Good dude for sure, and it was my honor to have him for this interview.


QUESTION 1

CHEDS - How did you get started trading?

BEARD - I started in college when I realized I wanted to make some extra money without doing anything illegal.

CHEDS FOLLOW UP - And how did you do when you were first starting out? Were you profitable right away or did it take a few years?

BEARD - I was not profitable right away but eventually when I found my way into some pump/boiler rooms (about a year into trading), I was hooked because it was quick and easy flips. My first account was through “Zecco” – now known as “TradeKing”, and most of the tickers have been deleted from my portfolio. The only ones still there are the small cap tickers I bought. That being said, it took me about 2-3 years of before I started to understand the game and find my style.


QUESTION 2


CHEDS - Why do you focus on OTC versus other exchanges? Do you play options as well?

BEARD - I focus on OTC because of where I started trading – college. Most college kids are usually struggling financially and I convinced myself to go straight towards crazy volatility in hopes to get rich quick (like most OTC traders). I play small caps here and there but I have a yet to produce a method/style that is suitable for me.

CHEDS FOLLOW UP - Why do you think you have been struggling with your method on Small caps.  Not enough sample size or just havent found that right groove? Also, tell me a little bit more about that volatility you said you "went straight towards". What is it about the volitility that suits your style?

BEARD - In terms of Small Caps, to be honest, I just have not put in the time and effort. In regards to volatility: To me low floaters often create the best volatility and this is often because the company or third party debt/notes/shares have not entered the market yet. Low floaters (for me) are a lot easier for me to understand via price action/L2 and I found the volatility was mostly created by retail. One of the scariest things to me in OTC is not knowing what intentions are going through the head of a big note holder or company that might be wanting to “raise capital”. The thing I realized about low floaters is that usually they were in the process of being diluted by the company and/or 3rd party but sometimes have limitations. The OTC is not what it used to be when I started. There were weeks where you could easily see 3-5 1,000% runners in a week, with liquidity.

 QUESTION 3

CHEDS - Who are some of your mentors and traders you look up to?

BEARD - Anyone who thinks outside the box and/or does this full-time. I like looking up and listening to the guys/gals who bring insight on the mental part of trading.  In OTC, you never know who is going to give you a tip on the next winner. That being said, my real “mentor” was blowing up my first 2 accounts. I hate to say it but losing a bunch of money at first was probably the best thing to happen to me.

CHEDS FOLLOW UP - Having lost all that money "blowing up" 2 accounts, what would you say is a lesson you took from that to be a better trader?

BEARD -  Don’t trust anyone.

CHEDS FOLLOW UP - Tell me more about "the mental part of trading". Is that knowing the meta-game, who to trust and who is behind which play, or is that mastering your own approach and staying to discipline. 

BEARD -  The mental part of trading to me is more about avoiding mental/physical stress. I have never had a “desk job” and to me, this is something I am not acclimated with. Anything from staring at the screen too long, bad posture, over trading, being gullible, and everything in between. Believe it or not, I have alarms on my phone to remind me to step away through out the day. Sometimes I just get in the zone and forget there is an outside world.


QUESTION 4

CHEDS - What is the best advice you can give to new traders?

BEARD -  Don’t trust anyone in OTC, find a style that works around your life, and learn to manage money that is suitable to your current portfolio(s) situation.

QUESTION 5

CHEDS - What are some of the most important tools you use for trading -- Hardware and software

BEARD - Charts, level 2, price action, reading filings, and understanding the storyline – in no particular order. Every ticker should be approached differently. If you have time to day trade and/or flip, e-trade pro and equity feed are great.

CHEDS FOLLOW UP - When you say every ticker should be approached differently, is this more of an intuition thing or is that based on the "starting qualifications" of a play, SS, liquidity etc

BEARD -  This would definitely be more of an intuition thing and just becoming familiar with price action and volume. Recognizing what potential type of play it can be is also vital for me. Charts are your friend and so is L2. Sometimes both of them do not mean anything if the right momo/catalyst comes to play.

QUESTION 6

CHEDS - How do you do your research to find new tickers?

BEARD - http://OTCmarkets.com  and intra-day scanners with the right settings

CHEDS FOLLOW UP - Do you have any hard rules you like to follow? For example not entering a play with less than X liquidity, or bigger than X AS?

BEARD -  When the OTC is more on the il-liquid side, I tend avoid tickers that some traders are mentioning. Some have the same patterns to dupe sheep into slapping their shares for a quick flip. I also try my best not to trade anything I did not find scanning myself. I am sure we have all been there where twitter/IHUB can create more hype than there should be. 

QUESTION 7

CHEDS - What are some of the most common mistakes you try to avoid making?

BEARD - Over trading is definitely my most common mistake. I try to hold under 8 positions at a time (not including bags) but sometimes the psych part of trading comes to play and I think everything is fine one minute while the next day I am stressed.

CHEDS FOLLOW UP - Is 8 tickers also a good number for you to hold so you can give them enough attention and watch all those L2s? Tell me more about the psych part of trading, is it that you dont like missing out on plays or just mad at yourself for making mistakes?

BEARD -  8 tickers is just what fits nicely at my trading desk with my screens haha. But yes, 8 tickers is more then enough to stress me out.

The psych part of trading is just taking a breather from all the “noise” that comes with trading. Starring at numbers and letters all day makes me feel like I am watching the Matrix. It is a lonely job too – there is not a lot of social interaction other then social media and chats but that does not suffice at times.

QUESTION 8

CHEDS - What kind of fishing do you like to do and where?

BEARD - Deep-sea fishing (depends on the season) out of NJ shore is my most frequent stop (convenient) but I try to go fishing anywhere I travel to.

CHEDS FOLLOW UP - Any fresh water fishing? Or just Saltwater....   I love fishing myself, very peaceful.   And, like trading takes patience.

BEARD - I love fishing. Salt, fresh, or fishing on bid. Saltwater is my preference because here in NJ, the largest fish to eat are obviously in the ocean.
QUESTION 9

CHEDS - How many times have you been to Costa Rica?

BEARD - Once but I plan I going there again in the next couple of years.

QUESTION 10

CHEDS - How do you approach bankroll management? Position sizing?

BEARD - This has only become a bit more important to me in the last 2 years and every ticker I approach is different but normally I limit myself  $5k for OTC. I am not a whale and if I hold something with that much money in it, I try to make sure I am watching the ticker at all times. That being said, some of my biggest bags have over $5k in them because of me being sloppy on entry/DD.

CHEDS FOLLOW UP - Why the 5k limit, should it not be based on a % of the daily traded volume?  Or is that just your hard limit. I think its good to have a cap - Also, those plays you are holding big bags 5k+, what were some the DD mistakes you made to get stuck? Do you have any rules to avoid making a "sloppy entry" as you put it? 

BEARD - $5k limit is just something that I feel should be my limit until my portfolio is bigger. Money management is important in this game. I like to load channels/ranges and averaging down is something that I do often and is necessary for me. As for rules avoiding sloppy entries, it is usually me just realizing I need to be a little more patient.

QUESTION 11

CHEDS - Do you like to listen to music while trading? Watch TV? or do you try and stay focused

BEARD - I always listen to music while trading. It has become a necessity for me. Metal/Djent, 70s/80s rock and 80s/90s hip-hop are my “go to” genres. I don’t watch TV unless its hockey/football.


QUESTION 12

CHEDS - Whats your favorite price range for a ticker, trips, teens, .01?

BEARD - I love watching these POS drop under 01 and create a bottom while understanding everything that is going on with the ticker - from why it is dropping to understanding the debt. 001-0035 is my favorite but not always the friendliest for traders.

CHEDS FOLLOW UP - When watching these tickers under .01 forming a bottom, what are some of the key things you look for?

BEARD -  Which mm’s are bringing it down and why. Where the selling stops and where there is most interest on the bid. 


QUESTION 13

CHEDS - Can you tell us a little about your experience on the "dark side" of the OTC?

BEARD - The dark side is how I blew up my accounts. It was not a good time in my life but somehow came to be an advantage to realize how professional and non-professional boiler rooms/groups work. Believe it or not, creating charts was something we did well. Understanding L2 was something that I did not understand for about the first 4 years of me trading OTC.

My experience has made who I am today. Without being screwed over, I would not be able to recognize what really goes on in the dark side.

CHEDS FOLLOW UP - When you say 'creating charts', are suggesting there are groups out there than intentionally move an OTC chart one way or another? Also, what are a couple of tricks you learned from being with the dark side that you would share to new/starting traders, things to watch out for?

BEARD - Without a doubt there are groups that intentionally move a chart a certain way for their own agenda. If you have a group in cooperation with each other, wash trading while keeping the money and shares within the group is most common as they slowly stair step it up/down. End of day paint jobs are usually a must to create the right candle.

For new traders under PDT restriction, sign up with more than 1 broker. It might be the loophole you are looking for in order to trade 1 ticker as often as possible without being limited.



CHEDS FINAL THOUGHTS

I am very thankful to Beard for taking this time to talk with me and share with us some of his knowledge. I hope this interview offers some good insight into the mind of an experienced trader and will in some way help new traders avoid old mistakes. #chedsblog


Welcome to Chedsblog!   
-Helping new traders avoid my old mistakes-

OTCBB Pennystock trading article topics include:
Reading financials and filings
Market makers 
L2 and chart analysis
Understanding the competition
Using social media to trade
Price and volume study
Bankroll management
Game theory
Sub .01 low float setups
Interviews with influence makers
OTCBB Penny Stocks Trading Market Makers L2 Charts Technical Analysis Financials Learning Discipline Networking Planning Bankroll Management Taking Profit Paper Trading Options Nasdaq NYSE Small Cap Stock Picks Alerts Bashers Growth Pennystock Sub Penny List Stop Loss Top Hot