Rookie vs Pro Day Trader: 10-Day Head-to-Head Day Trading Challenge! transcript

in this rookie versus Pro trading challenge one of my own members has challenged me to a 10day head-to-head trade off to see who can make the most money so will I remain the reigning champ or will I lose my crown on day 10 this member has one of the best days of the year and the best day of his month and he's got a secret up his sleeve that does give him a pretty big Advantage so me are you ready yes let's do it so day one of the challenge did not start very well for me I had no trades the problem for me was I looked at the Gap scanner and the two leading gappers were both cheap stocks but Timmy doesn't mind trading cheap stocks in fact he has an advantage that I don't have because of the broker he uses so he went ahead and he traded some of these low price stocks and he got himself on the leaderboard day one trading ICU he doesn't trade pre-market he's going to talk about the reason in just a moment there's a very specific reason why he won't trade pre-market but as soon as the bell rings he takes his first trade on the dip on ICU and catches that first wave up and he locks up $1,475 of profit in less than 20 minutes of trading boom he's on the leaderboard for day one now what you don't know yet but I'll share with you at the end of this episode is how many trades Timmy took on day one his metrics from this challenge are are fascinating even though he learned to trade from me the strategy and the way he implements it is so different from how I trade today so on day two we both trade the same stock mdia it's the leading gapper in the entire market and it's the stock that I made the most on I finished the day green Timmy finished the day in the red so Timmy where did things go wrong on day two so day two I was up $1,000 and that's what's so tough about day for me and I was about to walk away and this is something that I know a lot of Traders do where you're like oh maybe I can just get a little bit more cuz what I had done is I took one trade lost a little bit and I was under a th now and as you can see from the NBA chart it kind of didn't have any more juice in it after that pre-market move so when the market open I should have taken what I could get and and ran away but instead I overated my welcome and I go from green to Red on it very unfortunate very frustrating day um and then I started over trading you know so then I took a trade I um I took some Trad on wbui a choppier sprader stock took some unnecessary losses and that's kind of how you can turn a good day into a bad day pretty quickly by just not following your rules right it's worse to go from up a th to Red than to just go red like I would rather just go down 500 bucks to start the day having never been green but when you go green and you have something and then you give it back it it's that emotional hit going you know you had something and now it's gone so day two for you um not a great day but only down 500 bucks all right so coming into day three Timmy is in the lead rookie versus the pro he's doing well and the problem with day three was we both went red day three for me the note that I had was I shouldn't have even taken a single trade because the leading gappers were terrible there was really nothing pre-market and then once the bell rang I just ended up getting chopped up on kind of not really good setups and I just asked myself why did I even bother trading so I went red down 500 bucks and Timmy did the same down about 500 day four Timmy is still in the lead and he comes out Swinging with a really nice I I was impressed this is a $1900 Green Day and I finished the day up only $250 this was another day where it was a penny stock that was on the scans I wasn't in love with it and I just couldn't get dialed in and this actually I think highlights the difference between the two Brokers that were using because Timmy is using thicker swim which is a commission free broker I'm using a broker that charges commission and when you're trading 10,000 share positions on a penny stock those commissions add up fast when you pay the ecn fee so Timmy give me your comments on the $1900 of profit on day four yeah day four was a stock right in my price range you know opened up around $2 um and we actually had some good volume good range you know this is one of the stocks that unfortunately had really tight halt bands but I'm used to that so I was trading around those halt bands you know basically buying dips out of the haltz selling rips um and for me only taking 3 to 5K positions um plus free commissions I was able to really capitalize off of a nice move um you know up 300% um or 400% I think at one point so really nice for me in my price range um a lot of a quality setups um but those Hall bands were tough all right so day five Timmy is in the lead but today day five we both trade the same stock it's a pre-market leader it's a really nice setup and I think on this day I overcompensated a little bit for coming up short on day four I hit it out of the park with a $5,000 Green Day but Timmy does pretty well too so Timmy give me your p&l for day five day five for me $1700 and that is majority coming from inm same stock we both traded um it was a lot bigger move premarket um out of the market open though some decent opportunities I was able to take advantage of that um when I actually was able to get $500 on something else um that Ross didn't trade another you know smaller price stock around $150 and I was able to kind of get a little bit of those gains back kind of get closer to him all right so on day five we're pretty much neck and neck I made up some ground but day six I don't like the Gap scanner and after a nice $5,000 Green Day I'm kind of content to sit back and call it a no trade day so just like day one day six my second no trade day of the challenge but Timmy he's in the weeds and he got some trade and he made over $1,000 so Timmy your comments on day six yes day six for me it was definitely a tough day but I was able to utilize uh free commissions again I traded over 500,000 shares um on stock beats the AI and L both the same price range and I was just trading opening surges trying to take advantage of extended dips you know it's just stuff in my strategy where I feel more safe a lot more less risk um when I'm taking those dip trades and I was able to get $500 on one stock and 750 on the other for $1,200 day so this again highlights the difference between the two Brokers we're using so Timmy's using thinker Swim free commission broker which is awesome the way the free commission brokers work they give you free commissions because they sell your order flow and when they sell your order flow to the wholesaler those orders do not necessarily go to The Exchange so the wholesaler will fill your order it can be a little slower than direct access routing in fact it is a little slower but the wholesaler can do something that the exchanges can't do they can split pennies that's right they can split the penny when you send an order to The Exchange the way I do if there's a 1 cent spread you've got a one-cent spread there's nothing you can do with 10,000 shares it's 100 bucks in the spread between the bid and the ask with the wholesaler they split that $100 four ways one way to the buyer one way to the seller they keep one way and the other way goes to the broker all right so now Timmy is getting not only free commissions he's getting price Improvement you know quarter Penny or you know more or less on every single trade he takes and that on 500,000 shares adds up so he's getting that price Improvement he's paying a sacrifice of a little bit of time takes a little longer to execute the trades but he's getting price Improvement and saving on commissions if I routed that same 500,000 shares directly to the market it would cost me 1,500 bucks $1500 that's just in the commission so I mean it actually shows that on this particular day if Timmy had taken the exact same trades with the broker that I'm using well that ,000 of profit he actually would have been in the red right and if I had taken maybe the same trade well I it was a no trade day for me so I guess it doesn't really make a difference but part of the reason it was a no trade day was because I'm always factoring in that commission issue again my argument here is that one of the things that we'll notice as we continue on with this challenge is that Timmy keeps his share size relatively small rather than taking a few big positions he's taking a lot of small trades that's a great strategy there's nothing wrong with that I've scaled up a little bit more so I take a lot less trades but I'm taking bigger trades and for those bigger positions being able to direct route my orders allows me to move in and out of the market with bigger size a little bit more carefully so for me I think that the execution speed plus the different routing options is an advantage that allows ows me to capture more profit to even in spite of the commission that I pay so now we're coming into day seven it's pre-market a stock has breaking news the news hits the wire I see the stock hitting my scanner and I slam the order I jump in I know this setup I know the stock type I know the sector and I know this is something that I got to size up on so I take that bigger size I have great executions I'm in really fast and I lock up $10,000 of profit my biggest day of the challenge and this is a trade that I don't think I would have been able to match if I was using thinker swim so Timmy on this day how did you do I was actually read about $200 on this day and there was really nothing for me to trade like we were saying previously I really only get that price Improvement when the Market opens so for pre-market and for a lot of these really nice moves you can get dollars per share on my executions on that it's tough I add definitely can't take 10,000 shares there's just there's no way I I can really do that um so for me and for my strategy with the broker that I'm at it was one of those days where I just had to try to get a little bit of money in the range but as I could see it wasn't going my way I I I bail quickly before I make it a really big red day right and this is one of those days where I say all right I paid some Commission on the $10,000 of profit I made but I'd rather have $10,000 of profit and pay a little commission than have nothing at all which is what Timmy and ended up having on day seven so coming into day eight I've pulled away a little bit in the challenge I have now taken the lead for the first time and this is another day where we both trade the same stocks we've got leading gappers they're super obvious I lock up a nice Green Day about $2,900 a profit this was a day that I got a little frustrated because I was up five grand and started giving some back and I said you know what I'm at a point here where I have a rule of thumb if I give back more than half my profit I've got got to walk away and that's after I hit my daily goal of 5 grand so I hit 5 grand I gave back 2,000 of it that was close enough and I said you know what I got to keep what I've left got left here and call it a day Timmy also finished the day in the green $417 of profit but he traded an astounding 500,000 shares of volume he was turning a lot of shares I mean Timmy is becoming the algorithm the number of Trades is crazy uh but you know it was a Green Day now we're coming to the end of the challenge day nine another no trade day for me third no trade day of the challenge Timmy didn't have a single no trade day he traded on Day N locking up just about $1,300 and now let's look at day 10 the last day of the challenge and one of the best the best day of the month for Timmy one of his best days of the entire year this was on October 31st Halloween and he locks up $4,000 of profit Timmy how'd you do it yeah this day was absolutely insane so $4,100 on 300,000 shares of volume and and sprc was really just downtrending after the open but I just knew in my eyes I've seen it set up a lot it was it was really opening at a spot where I thought there was good bounce potential so I was able to get in all those dips two to 3,000 shares and really really aggressively trade the range right and that's kind of where those free commissions come in again instead of just taking the dip at the bottom and waiting for a nice 30 40 Cent bounce I'm kind of taking 5 cents 10 cents 3 cents you know and taking that price Improvement as well um and in the first 45 minutes of the day locked in that $4,100 and I called it a day a nice Halloween for me and a nice end to the challenge and I traded the same stock sprc on that day again same as uh day eight I was up 5,000 but gave back a little bit of profit finished the day at 3,400 a green day and this marked the end of the challenge all right so the challenge is over but we got to get into the analytics on the metrics of how we performed Timmy finish the challenge with $11,500 impressive but he wasn't able to take my crown I finished the challenge $222,700 bucks pretty good both of us honestly I was really impressed Timmy did really really well far better than I expected for well a fairly new Trader he's still pretty pretty new in his learning curve but here's something really interesting Timmy took 1,163 trades in 10 days days and I took just 56 trades so I only took 56 trades that's five trades a day for 10 days Timmy's taking over 100 trades a day trading 700,000 shares a day which a as we already know for my commissions at 0.3 per share that would cost me like 1,700 bucks a day in commission but man Timmy you are the algo I mean you are buying selling buying selling buying selling we don't even need algorithms anymore cuz there's so many Traders like you trading with free commission just getting getting in getting out getting in getting out scalping the range and the fact is 5 cents on 3,000 shares 150 bucks you do that 10 times in one day you've got $1,100 right I mean it adds up quick so I I I'm I'm impressed I really am impressed you did a phenomenal job in this challenge how do you feel like the challenge went for you I feel like the challenge went really well I I kind of played my strengths taking a lot more trades than Ross and being able to trade every day cuz for me I'm pretty much always finding opportunity is just trading price action it may not even be a setup it may be more just price action on the level two for me like he's saying it's almost like an algorithm I'm trading you know certain setups it's like microsc setups that you know I've just gotten accustomed to um by by this strategy and uh it definitely can't you know get those big big huge winners but for me definitely keeping the lights on and uh wouldn't want it any other way you're definitely keeping the lights on you're doing really well so your average winners are about $77 your average losers were $56 and your accuracy is 48% the one critique that I was thinking as I looked at those metrics is how can we get that accuracy 10% higher 55% can we get it up to 60% because I I mean not to say you're not doing well but if you could get that accuracy a little higher it is only going to help I finished with 56 trades average winners $800 average losers $400 accuracy 62% which is a 2 to1 profit loss ratio 62% accuracy for me that's actually a little low I've been averaging 68% on over 24,000 trades over the last 7 years so my accuracy was a little lower during this 10-day challenge I did have three no trade days which I wasn't expecting uh but what do you think you could do to get your accuracy bumped up just a little bit I think like we were talking I think it was day two and day three where I ended up going from green to red just over trading overstaying my welcome is something we do a lot as Traders and you know we all fall victim to it sometimes so you know I think you had a couple days where you were at 5 grand and ended like 3500 we all do it I did it much more than I needed to going completely from green to Red on those days and without those you know really dumb trades to be completely honest um I think my accuracy would be a lot higher plus you know with my strategy you can definitely over Trade A lot it kind of comes with the territory by being as actively as I am um trading so you got to be very cautious to to know when you're emotionally hijacked and when you're taking more trades than you should and and it's not a setup that that you would normally trade so it's a fine line for sure now how long have you been trading let's so tell everyone how long have you been trading technically I first started looking into trading in 2017 I joined uh Warrior I think it was 2018 or 2019 um so I've been in the trading game for a long time got profitable in 2020 and uh really this year I've really found my stride uh blowing my past two years out of the water um back when I first met Ross you know I feel like I was like a little just like a little puppy and now I'm I'm I'm getting into that you know more of like a medium-sized dog and I'm coming for him I'm coming for him you are you are and I cannot wait for you to become a million-- Dollar Trader I mean this is the thing that I say is that there there's sort of these phases of trading you've got your beginner phase where you don't know what you're doing most beginner Traders lose money and then you had the phase of being a break even Trader all right being Break Even is a milestone you might not think it but it really is cuz then you're not losing money you're holding your own you're treading water and then from there it's just that slow transition to losing a little bit less to having those big red days spread out a little bit further and you start pulling away and you start pulling away after you know it could be a period of time of that slow Ascension you start building a track record that creates confidence and now you start scaling and you right now are in the very beginning of starting to pull away and that is exactly the road map as they lay it out and had to day trade the plain truth number one it's getting you ready for day one sim then it's break even Sim and then once you have consistency and confidence it's scaling up those of you guys that haven't already gotten a copy of my book make sure you grab it it is a number one new release over on Amazon but you can find it Barnes & Noble pretty much anywhere this is going to get you ready for that first big milestone which is day one sim day one sim that's where it starts is there anything during this challenge that you wish you had done differently I would say those two red days that I had in the beginning I wish I would have just stopped right we're in a market like you were saying it's a bare Market you got to take your gains and run and overstaying your welcome is not something that you can do you know every loss and really the mistakes they amplify in a bare market so you've got to be very very cautious and uh I fell victim to a couple really unfortunate um you know mistakes but you live you learn we take that into the next TR and so tell us what time of day are you primarily focusing on trading nowadays I'm primarily focused on just trading that first hour or two I'm out by around my time 10:00 a.m. 11:00 a.m. at the latest and I'm able to go my other businesses and do other other things I need to do and that's the beauty of trading you can have multiple income streams and you know as you Traders we are entrepreneurs so it almost goes hand in hand businesses you know you run multiple because trading is a business all right so give it to me straight you're a warrior Pro graduate trading my strategy did Warrior Pro work for you absolutely what Warrior offers is in terms of the chat room the scanners the other members and everything involved it's a great Community to learn how to trade and to really you know get that learning curve to go parabolic like we always want as Traders now you know by saying that just like any type of you know trading course you see a bunch of them out there you know this one though you know is definitely legit I'll say that but nobody's going to make money doing any course 100% of the time that's just kind of how it works you have to be you know you got to take that information and and mold it into your own strategy cuz as Traders we all trade just a little bit differently and really that's kind of the goal of being a Trader is to not just follow exactly one person but to create your own strategy based off of all the other positive influences that you have around you and warriors a great great place to have a lot of those positive influences and have a lot of great information at your fingertips I think the job of traders in my position who have a lot of experience is number one to share the strategy that works for me it works for me doesn't it's going to work for other people but if you want to learn it makes a whole lot more sense to learn from someone that actually is doing something that that works and then you take that now you have the pieces you're like okay maybe I'm going to make my own you know sort of adjustments the way Timmy trades in a free commission broker and has scaled it up and that's totally fine but all those building blocks they came from someone who did all the heavy lifting before now Timmy also has a YouTube channel and we'll put a link down in the description that you guys should check out cuz he's starting to do the same thing that I was doing when I was getting started which is you know just putting some content out there talking about Recaps what's working what's not working so you know you guys should check it out if you're interested I appreciate that Ross I appreciate you having me here it's been a beautiful 10 days and hopefully we can do another challenge here and maybe I'll beat you we'll see if you like this challenge make sure you hit the Subscribe button hit the thumbs up and let me know in the comments who you think I should battle in my next challenge