Expert Trader: 30 Year Institutional Trader Shares How To Be Profitable

Peter tuckman is one of the most famous Traders on the floor of the New York Stock Exchange he's known as the Einstein of Wall Street Peter tuckman AKA The Einstein of Wall Street joins the podcast today now Pete has been a institutional Trader for well over 30 years on the New York Stock Exchange he started all the way back in 1985 now on this episode he gives us a breakdown of the history of the New York Stock Exchange and the evolution from pit trading to electronic trading now most Traders don't know and understand the history

of trading itself and Peter is the perfect Trader to give us that breakdown so in this podcast you are going to learn from a trading veteran and what he shares with us today will absolutely change your trading he shares exactly what losing Traders did decades ago which they're still doing to this day so you know exactly what to avoid unsuccessful day Traders love to blame everybody but themselves for losing money he also shares his thoughts on ICT Concepts and the whole algorithm narrative that is shared so much in the retail trading space People refer to

things as smart money Concepts and ICT concepts for example it's all he also shares exactly what it takes to be a professional Trader what would be your one key advice for Traders out there what would be your secret key if you will okay um now the podcast has taken a different direction we are bringing the very best Traders in the world world with verified results directly to you so you can accelerate your trading gain we have a lineup of absolutely incredible Traders from X pit traders to verified traders to this day who are trading in

Futures in options in Forex you're going to learn a wide range of strategies wide range of psychological tips that are going to help you to accelerate your trading experience and more importantly results now this episode is an incredible to start that Journey because you're going to get the history that is necessary and the lessons of the past that can be brought into the very present moment of all the trading that is going on today the majority of the retail space today is focused on Prop firms and that is no problem at all what they don't

know is the history of trading and how that can actually help them In this day and age when it comes to tackling the markets and that is why over the next month you're going to see some of the very best historical Traders some that are world famous and some that were the best of their times that you still haven't heard of and we're delighted to highlight them on this platform Now to celebrate this shift in the podcast our podcast would not be where it is today without our sponsors they are what allow us to go

to Wall Street and do this walk through with Einstein on the New York Stock Exchange so trade Zella for example is doing the very biggest sale it's ever done due to Black Friday so it will be on until Cyber Monday so you have 4 days from this release to get in on that the code is Black Friday 24 and that will essentially give you 50% off the premium subscription at just $25 a month on the annual plan so it's less than $1 a day for you to accelerate your trading so use the link in the

description below and the Code Black Friday 24 with that being said our other sponsor is Alpha Capital One of the best prop firms in the world currently who have paid out over 70 million to their Traders now also have a phenomenal Code for Alpha Capital at Riz 25 which gives you 25% off their two-step challenges now they also have Black Friday offers and they have recently launched one-step programs and three-step programs so make sure you check out their social medias for those codes as well as Alpha Futures which is also running Black Friday offers at

the moment and I just want to say a huge thank you to every single one of you out there we have just crossed 250,000 subscribers on the channel and that's thanks to all of you and our incredible guests talking of which it's time to jump into this podcast on the New York Stock Exchange with the one the only Peter [Music] tuckman the number one podcast in the trading space the fastest growing and that's thans to every single one of you [Music] Peter yes sir incredibly humbled that you invited us here to come and witness the

the New York Stock Exchange and being a veteran like titled almost the most wall Street's most famous Trader right you have over well over 30 years of experience I think what 38 years now 38 incredible and then some say 138 really I bet it feels like that after all the experience definitely and we want To just get some insights from you from your vast experience you know we have a lot of audience who are in the start of their Journey very near the start one two 3 years in especially on the retail retail side of

the space as well and therefore can we just start off with like why did you get into trading first of all welcome right I I love to do interviews and things in this room because I'm a I'm a history buff you know this has been my world for for 38 years plus and um so the power in the history it is the greatest financial institution in the world right when you think of trading whether it's day trading investing or anything to do with Finance this is the Hub this is where it all happened we're standing

here on the corner of Broad Street and Wall Street where George Washington was inaugurated president where the Federal Reserve is this is the street Wall Street used to be a wall and this used to be a canal connected to the base of Manhattan where in the 1650s the beginning of Commerce you know as the world started to open up you know boats used to come into New York Harbor I think it was called New Amsterdam Harbor at the time and they Would bring the Commerce whether it was tobacco or Lumber or whatever it may be

back then um on wheelbarrows or on boats up to a tree that was out front of this before the building was built called the Buttonwood tree and there was already back then in the 1650s Brokers people it was like the corner if you want to relate it to today's world it was the corner right where business May transpired we don't have to get further into it but you know and so there was already the concept of Brokers putting buyers and sellers together consummating a trade right the price of that depending on supply and demand as

we learn and which goes all the way to today's trading uh but how exciting that is for for us to be here you know at the crossroads of that history and then what ended up happening was that H went on from 1650 until 1797 with the Commerce and whatnot this building is built in 1903 the ceiling is all gold the if you look at this top piece there I don't know if the cameraman can get that but that pays homage this strip here those are tobacco leaves okay right so and then there are a number

of other things that sort of grasp the incredible history Of Commerce and finance and and the building of this country let's say um so that was exciting and then in 1797 they built uh they they made a thing called the but wood agreement it's upstairs May we'll be able I'll take you upstairs to see it it was a uh contract between 26 Brokers saying that going forward that we are establishing business practice going forward our word is our bond okay we do business at this price this way using these business standards Integrity is the key

to this game and so that started the the um the journey yeah right and um so that went on and then in 1850 they built a building here called the New York Stock and exchange it was the beginning of a housed uh brokerage uh establishment and then in 1903 they built this building so I say all this to say that there's a lot of history here this is the crossroad of everything that you know people love people people who are now day trading or trading the people who are in the beginning of their Journey as

you describe uh are fascinated by this place they love to come here you know and I'm really happy to show it to them it's my office right in a way and I am the ambassador of This place and I I am the Ambassador is because you know one of my big premises is I I you know it's not my line but it's a great line if you find something you love to do you'll never work a day in your life so when I my journey to coming here my parents are are immigrants they were uh

they're Holocaust Survivors they came here in the late 40s they met after the war their families had been decimated and uh they met in a displaced person Camp fell in love came to the states my father was a doctor and uh so I grew up here in New York City and um I had a really extraordinary upbringing um business was sort of felt like it was always going to be my calling I was an entrepreneur a hustler as a kid selling T-shirts at Grateful Dead shows and doing I was the doorman in Studio 54 I

done all kinds of fun things I owned a record store in bleer street I traded Commodities I was almost able to complete a MBA uh in the early 80s uh I ended up then going to uh live in West Africa the People's Republic of Benin for a couple of years uh where I did the accounting for a Norwegian oil company and then I came back here in 1985 and I was a kid I was 26 I think and um I W I got A summer job my parents said it's time to get busy let's you

know put put on your big boy pants let's get busy so I got a summer job here uh due to a connection that my father had he had a patient who uh was a part in a brokerage firm and um it was the 80s Wall Street was on fire uh I got so there's no training for this job being a broker on the stock exchange giving you the right to trade stock here you need to have a seat on the exchange historically in 1903 1366 seats were established like a taxi Medallion right and there are

a number of things in in in history in business where there's a limited number of Rights or a license or a lease to do something that's very exclusive so that's the seat on the exchange it's not a chair you can't sit on it but it does give you the right to trade so coming to Wall Street and in that period and going back to the 20s 30s and 40s everyone's dream is to become a broker yeah as I said there's no job there's no training to get that so everybody who came here and stayed here

started at the bottom of the chain right there there was a a um uh a sort of a cast system a support staff of the different Jobs that were here you had what was called a squad a runner and everybody was demarcated by a color jacket with a different different color and different numbers and different whatever so there were squads those were the runners when we were trading open outcry um we um would be in the crowd trading and we needed to get before cell phones or anything like that we would be they there were

phone trees all over the floor we'll sort of take a few shots of that afterwards to give people a breakdown because amazingly enough this room is not changed besides the ad of Technology the room has not changed in its concept the way it works the format for 130 years so that's exciting you know that that shows its Legacy and significance so Squad beginning of the beginning of the rung here you know you got a job here as a squad with your hope that you would then become a telet typist become a backup clerk a real

clerk a retail clerk an Institutional Clerk and a broker that Journey used to take 10 12 13 years because uh nobody left the job it was a great job you know um I got very lucky I came down here and the minute I walked in you know everybody has A different Comfort level of where what what they where they like to be in their work mode you know to sit with a coffee you know have a cigarette and read the paper and slowly wind into their day that's not me right I'm a guy who comes

out of the gate like a you know at a horse race and so when I came down here I was able lucky enough to get a job as a telet typist for cow and Company May 23rd 1985 I walked onto the floor and the energy and the adrenaline and the excitement and the chaos for me was just those are the qualities that make my brain relax it's not everybody's Journey but I love that stuff that's I thrive on that and also I one of my dreams was I love branding and and marketing and advertising so

as we look around this room you guys are seeing that now this is the most extraordinary uh you know for me those things are motivating right I think people need to also find keep your open look for the signs of things that get your juices flowing right that that's a big thing for me is you know opportunity is not going to find you hiding under the covers at home you know trying to figure out what your next move is go out There try things you know we learn so much more from failure and and stumbling

and getting back up you know the journey should be an aggressive Journey forward and so that's super important um so I started uh as a telet typist I did that until till the summer job was over and then I said this is for me I love this place and we everybody we got along well I was I had the right personality qualities for the place because it was wild and it was the 80s definitely okay so it was a wild and crazy human interacted uh open outcry paper right screaming yelling just like you see in

the movies it was real um place but for me that was like I felt I was at home uh so I stayed at and I asked for a job uh as a clerk or option clerk actually um so back in the day the way this room is broken down is on the outside of the room are the brokerage firms whether it was maril Lynch Smith Barney Morgan Stanley Wells Fargo whatever they were Goldman Sachs those would be there would be stalls with hundreds of telephones connected to trading desks upstairs whether it was down the street

or in Singapore okay and uh so if you worked for a brokerage firm there would be a t Typist there would be clerks backup clerks retail clerks and there would be the head institutional Clerk and then there were Brokers um who were house Brokers so um that's how the company runs so they were they were connected to their trading desks and the trading desk I mean people should know how the business used to run it still does to a certain extent except it's all obviously technology um but you know the decisions are made upstairs you

know portfolio managers and research and all that every company has them yeah they they are have assets under management or their proprietary Traders or their portfolio Traders or whatever it may be all that is upstairs and then in order to be at we are at the point of execution we're kind of the boots on the ground no disrespect to the military but so from our perspective uh we are we're in the room where it happens right where when you buy and sell stock all the order flow comes from all over the world and it goes

to the post the post is where market makers are so there are brokers there are clerks and there are market makers those are the three components in the old days there were many other Support systems before technology to create this room now there's a few but it's a little different because I can send a th000 orders out in 11 seconds so all that support staff and and Brokers this room used to have 8,000 people in itow now there's 600 right so the use of Brokers and use of support staff is much less yes so um

you know that was kind of the beginning of my journey I was very lucky the the road as I said used to take 10 to 13 years to become a broker from Squad if you were good if you thrived in this environment uh I was lucky one guy got fired one guy quit one guy died and I got moved up the the ramp I didn't kill him um and uh uh and I got my seat I got my seat on I believe it was April 9th 1988 and these are these are Milestones right right you

know people should know in their journey to whatever they want to become uh branding marketing advertising you know the cloud whatever it may be we should Mark the Milestones along the journey for a number of different reasons and this may end up being more of a motivational podcast than a stock podcast but for me that's super important because we if we find something where we're comfortable where where That really engages our brains you know they New Tropics is a big thing right now you know to find things that will help your brain you know work

on on 100% you know historically you didn't need additional supplements to make your brain work it was when you found something that was for you that that it engaged you in every possible way right that was that was the stuff that's the feeling everybody should be searching for and they should be search for it searching for it in trading right this is not a getrich quick scheme people should not be looking for the easy way out because we talked about it you know I I I I have a partner named David Green we run a

Trading Academy called Wall Street Global Trading Academy WS gta.com we have students from all over the world and we teach technical analysis I'm the motivator in Chief and he is the teacher he's an amazing teacher and um what we find is that you'll see young traders who you know will ask them how are you doing and they're going oh I'm I'm I'm batting 80% I said oh so then you must be flush you must be green and they said no no I'm down 6,000 I said well how is that possible well I had four winning

trades and I made $100 and I had one losing trade for $8,000 and I say well that's not a sustainable uh trading model you know we need to understand more of the nooks and crannies it's important to know that prior to 2020 there were barriers to entry of people who were not wealthy to trade the market you needed to be an accredited investor what did that mean that meant that you had to prove that the money you invested in the market there were no iPhones there was no trading apps there were brokerage firms you called

a brokerage firm you wanted to trade or invest you had to prove to them if you lost 100% of this investment yes it would have no effect on your standard of living for five years well nobody but rich people can do that right okay so that kept everyone else out that's the 1% and there was 99% who couldn't be in the market but suddenly something transitional happened on May 20th 2020 Robin Hood and the iPhone and the stimulus check and covid and everyone's sheltered and place at home and Reddit and Wall Street bets and the

internet blowing up and la la la and you suddenly had this perfect storm where 40 plus million new Traders came Into the market now look anybody who hit a buy button on May 23rd 2020 whether it was in a meme stock whether it was in any stock after the sell off from covid made money mhm if they sold their the stock when it went from 2 to 20 but there are probably 80% of the people who bought it at two it went to 30 and they never sold it because they told they were told on

the internet it was going to the moon and it went back to two and they still own it right eight out of 10 day Traders blow up their training accounts and are not successful at doing this that was my early part of the career I did get a seat my business has changed over for the years for for 20 plus years probably 30 I was an Institutional Trader I was an Arbitrage a convertible Arbitrage Trader I did risk Arbitrage convertible Arbitrage I worked at a number of different firms the qualities that I have that make

me a good Trader is I'm a good people person uh I'm good with numbers I think quickly on my feet and so my job those are the quality and I thrive on chaos and adrenaline Okay so um and that sort of brings us to you know how I got here uh my journey to getting here the journey that we where We get to you know some of your audience may be day Traders uh as a part-time thing but also the discipline and consistency to be good at it some of your people may go on to

become day Traders that's their job some may get into Finance forever some may be just investors and they have another profession the journey you should go as I said we learn more from our failures than our successes you know I I don't believe there's any door that you can't knock on in this world even though the world everybody's angry at each other and they hate each other I don't even know there's no word to describe how screwed up it is but um but anyway everyone's Journey um to their profession should be one of of excitement

and and happiness you shouldn't be at a job that you hatein and trading if you know the the and I can go way more into this but the there are success day Traders and there are nonsuccessful day Traders the qualities and the strategies that successful day Traders use are the exact opposite than the ones who are unsuccessful unsuccessful day Traders love to blame everybody but themselves for losing money the market maker he's out to get me he knows Where my stop orders are I hate him he's there to screw me you know the momentum guys

they're screwing me the fomo guys I bought it it ran up it came down if you're success and you're doing it the right way there's nobody to blame you should be empowering yourself that oh I was disciplined I did the right thing I had a plan when I got into a trade I executing a winning trade and executing a losing trade if done well is the same thing yes these are the skills it's a skill set and a mindset to be successful at day trading you know if everyone should go out and watch the original

Wall Street movie it's the story of Ivan bosi he's a famous speech greed is good that's how I got here and uh I'll pass it to you yeah definitely and I appreciate you going through all of that the history is incredible you know I feel like a lot of people look up to Wall Street but they don't know the history behind it but now they will so I thank you for for sharing that and you know some key things that you mentioned there obviously it's really interesting to hear that it wasn't really something you planned

in terms of trading corre it was like you know you came as for the Summer job and then the environment just took it took it you really resonated with the environment and um that's something we can really touch on in terms of the environment what were like maybe some key lessons that you took away from being in this environment that helped you as a Trader so let's be clear that um I work here and I trade for hedge funds and institutions I up until recently I never traded stock for myself okay because there was a

fine line between conflict of interest between me trading for myself and me trading for customers so I made a decision way back we I I am a regulated broker my badge number is 588 uh I'll show it to you downstairs it's the seat that I I I have to trade stock so that that's what I do for a living the world used to be I sort of Ed the analogy of a of a puzzle a board G you know a cardboard puzzle yes the world and the markets used to be a 250 piece puzzle you

know when you're a little kid you get a six- piece puzzle then 20 and as your mind grows and it has the ability to see things in in a broader broader scope you're able to handle a bigger puzzle well the world and the markets now are a way bigger puzzle I think We've gone in the last postco from a 500 piece puzzle to a thousand piece puzzle there are so many different economic and you know we have a we have 50 million new retail Traders we have the internet right uh we have free trading apps

we have the Market opening up globally anybody with an iPhone and $100 can trade stock there's fractional investing uh there's option trading there's Forex there's there there are uh ETFs uh if anyone doesn't know there's all the market is an amazing skill of searching for products to give people the opportunity to trade in the old days you you wanted to buy uh uh you wanted to buy a stock you'd buy one stock if you wanted to buy the if you like the sector well you had to buy a bunch of stocks in the sector well

now they created at the ETF which it may be an energy ETF or a sports ETF or a retail uh luxury ETF or whatever so the the market over the last century has built these financial instruments so that they there's something that you if you want to trade anything you can trade it um and that's amazing right that's brought in lots of different people people but what it's also Done is confused the currents of the market in the old days if if I was trading IBM because IBM was coming out with a new computer and

the earnings were projected to be good and they had I like the story I like the people I like the process and I like the future I would buy the stock the earnings were projected to be good I would own it the earnings came out the stock went up it was a beautiful day yeah well you have the option Market you have option layoff business you have long-term options leaps and beeps and scheps and all that other stuff and so the way the market moves the way stocks move with all the economic data with I'm

I'm a firm believer that postco the world has completely changed in so many different ways our mindset the way markets work the economic data you know so and I'm afraid people are also the media uh you know there's access to so much information yeah sometimes too much information is not a good thing right it's the same thing with day trading we recommend at Wall Street Global Trading Academy to not fill your charts up with hundreds of different indicators so that your chart looks like air traffic control during 911 right that's not The goal we use

the RSI we use pivot Points pivot Points are just on think or swim or interactive brokerage they are a a mathematical formula uh support and resistance and obviously uh uh moving averages right we use the EM uh uh uh exponential moving averages we think it's a better indicator so the qualities that I learn from here are never get emotional about money um think before you act read the room Avail yourself of all the information necessary as a day trader what's so important is that um in a market so historically markets used to move up and

move down at small increments yes there would be a crisis then things you know crisis of I've lived through the crash of 87 the bubble of 2000 the financial crisis of 07 covid and now you know the Trump era and now whatever's going on here those were crisises historically you would think that those were the worst times but historically every one of those crisises has been a better buying opportunity than selling opportunity that's something so contrarian thinking is something always Avail yourself of all the information don't get caught up in the scam and the rug

pulse do your own homework and Due diligence in a market that goes up and down thousands of points in a day you need to protect your and protect and identify your downside risk yes am I willing to to to uh risk $50 to make2 200 yeah all day long am I willing to risk 200 to make 50 not so much because if I have one losing trade I have to get four winners before I fing flat so these are the mindset in the psychology psychology is key so it's how you think how you act how

you react to things those are the things I've learned from being around people being part of a team yes right um listening would you say that's been a big part of obviously this environment though because there's a whole generation now Traders as you've mentioned trading from home with the the barrier to entry is so low and they spend most of the time if not all the time alone in their office by themselves God bless them I don't know how they do that and unfortunately it leads to bad habits because if you don't listen to the

right voice we all have two little people on our shoulders there's sort of the greedy emotional guy and then there's the one who's disciplined and consistent right and we are the Paradox and as a Day trader we may have a couple of we may may have a whole slew of people on our shoulders depending on how greedy how irresponsible how whatever we are and so um you know the Paradox is who do you listen to when you know it's to be a successful day trader is a is a is a powerful thing it is not

easy eight out of 10 people who do it do not succeed are the people who arrive to the exchange I would say probably more back in the day when you had all the people on the floor were there people in those scenarios where they would come and they didn't have what it takes and they would have to leave 100% this is a place where the the the um it was very apparent very quickly whether this environment was one you would thrive in or whether it would kill you and so you came in there no no

holes barred you you came here for a week a month uh you know a semester you knew if this was the place for you very quickly it's super raw it it doesn't you know it it's not hiding anything uh but I'm glad you bring reminded me of so think about 8,000 people was a different method of trading the research and the dissemination of order flow the interaction with other brokerage Firms it's important to note before electronic trading when things were done with open outcry most trades were block trades 5,000 shares 10,000 shares where the negotiation

to buy or sell stock between me as a broker representing my customer and the market maker the market maker being the pilot of the plane the one who's putting all the order flow together and then the negotiation of all the other Traders uh was our goal was to put on blocks of stock yeah like you walked into a crowd I had 10,000 to buy hey Joey what's going on the market maker and say Pete there's three sellers over there two buyers over there what does everybody want to do well I I got temp out to

buy aggressively and I have 10 that to buy with a $30 top what do you have to do I got 25 that to buy I'll go along Ong with the rest of the group and the other guys I got a firm $28 top half a million shares if it gets there I buy it and then you have the sellers the seller one is a goal one is limited one is aggressive and so we had a negotiation let's get some stock going here what do you want to do what's the first thing I'd say I'll pay

you know I mean you you've seen it In movies I'll I'll pay you know 30 and a half to 50,000 shares the seller say sold the other guy will go oh my God I'd buy stock I'll pay a half of 50,000 the seller behind them will go [ __ ] I just missed one I'll sell 50,000 there I'll sell that to you and then this Market maker who is there to in to put um add liquidity into the market and despair of volatility if there are two buyers in one seller he will sell it to

consummated a trade if there are three sellers two buyers he will buy it to consummated trade he's there to create a smooth and active Market to fly the plane and keep the balance and the turbulence from happening that's the good part of his job he's also the one who has to buy or sell the stock in absence of the public so during the crash of ' 87 at the end of a very bad day the market maker was the one who bought it at 120 at 100 at 80 at 60 you know and at the

close of business on October 7th or 9th I can't remember the day there were market makers who owned a lot of stock at a much higher price yes and they needed to be able to capitalize that and many of them went out of business definitely I was going to say do you Miss the those days do you miss that environment I would I would I would shoot myself in the foot to get those days back yeah I I don't I don't own a computer I don't like technology it's not it doesn't work with my brain

set I kind of I have a little bit of a spectrum brain so I see things in groups I'm a real humanist and a people person so I love that stuff um so I miss it deeply I love the chaos and the interaction the screaming and the yelling and the excitement of that I love the way the proex proex worked the negotiation you know it was wild I mean I can you know there were times where there are 40 people in a crowd you know and the war in Iraq broke out and we were buying

you know a tank company and you know it was before the internet so the dissemination of information was sort of along through a pipeline who got the info first and how did they want to react to it and so I mean you know and you'd be in this stock and your people would go off and you'd come here and you'd Miss some stock trading and you'd say I need you in the other room I need you to go buy me a half a million of Philip Mars over there something's going on And you'd you'd ask

the market maker to watch your order for you and you'd run to the other room and you'd start buying stock like crazy and you'd report it to the thing and you put your hand in the air and the squad would come and take the report and then you'd run back here and see how you're doing I mean that for me was like that was a great day you know I mean uh so I don't my my my skill set his people and and be able to just deal with the chaos but I have no um

not being invested invested in the market for me from 9 to 4 I don't care if the market goes up or down I'm a customer man I want to be able as transparent and give the information I need to to my guy or a woman and uh I want to give them the best price I can my fiduciary responsibility and uh so yeah those were the days uh it took me I was actually the last broker so the transition from paper two handhelds you know we've had many uh alliterations of the handheld computer on the

floor one of them was like a Palm Pilot if you'll remember that it was like a you know a little thing and then it grew to be a little square and then it could be now now an iPad um I was the last broker out of 1366 to relinquish their paper pad and pick up the they basically said Pete on Monday if you don't have a handheld computer you're out of business so I had to surrender and so uh yeah I'm a humanist at hard and I love that so you know how do I how

do I live with the new adopt things I come in here and I sort of and I that's important for people to know too that life is going to change business is going to change your environments are going to change right and I don't like change and most people don't like change but it's going to happen with you or without you and it's way bigger than you right so I I fought it for a while and I lost right cuz I I was not I can't me being the last hold out wasn't going to change

the way the business this was going to go so what did I do with the w with that I decided to Pivot pivoting pivoting is key in in life and in trading and in everything if one thing's not working pivot I I used all this the excitement in The Branding and the advertising to I'm on the board of many many different companies I'm a big supporter of women in business in my 55 years I've had an extraordinary wonderful long life way longer Than my years show and uh and so I've learned a lot you know

my recommendation to everybody is get a mentor get a coach listen to them find out find somebody who has what you want and go towards it don't surround yourself with people who are knocking you down who are not empowering you you should be you should be traveling with a pack of your peers who are pumping you up on a daily basis right I'm not a firm believer in um you know in dying with the most toys toys are fun but as I said to you so me interact with Kevin o I listened to him uh

one of one of my biggest uh pet peeves is that we invest in we we buy stuff and we don't buy stocks right when young people will ask me what's your best advice and I and so I heard Kevin say this line yesterday my line is invest in stocks not stuff he was saying the same thing he said our biggest enemy is our closet we've got a closet full of shoes and coats and [ __ ] we bought cuz we wanted it it was impulsive we'll never wear them or use them again and think about

it if I like so I always say to young people you know the iPhone comes out every year yeah if my iPhone 12 is not broken I don't need the 13 why Don't I go out and buy you know if you're a loyal customer to a to a to a a consumer good that you love that means you like the story you like the product you like the company right if you buy it we are the Lo most loyal consumer uh generation of all time yes so why wouldn't I hold off on my impulse to

buy the 13 for $1,000 and go out and buy four shares of Apple stock so at the end of the year I'll hopefully have have some assets I will have built a portfolio I will have invested in my future whether it's in SN sneakers do I need another pair of sneakers no buy some Nike and I'm not recommending any stock disclosure disclaimer um but think about that you know 99% of the stuff we buy yeah the minute we buy it it goes down in value yes and so buying something here uh chances are if you

do your homework it may go up in value and so you know uh that's one of the fun things that we need to do go ahead definitely and uh we'll just finish up with some key questions then go like you mentioned about technical analysis uh and you mentioned that EMA support resistance and there's a huge debate in the social in the social media side of the trading space in regards to like Technical analysis this style is better than the other people refer to things as smart money Concepts and ICT concepts for example what's ITC mean

it's like a fair value gaps and Order blocks and and it's talking about the algorithms it's all it's all that's the best that's why I want to ask you when you hear these things being someone who's actually on the floor you know and experienced and has the vast experience that you have what are your thoughts when you see these huge debates online about uh you know fairies if you will yeah okay so first of all I think it's important to know that actually you know trading um the trading that goes on here the the day

trading look so we are the end spot of all the day Traders yeah but historically day Traders aren't trading millions and millions of shares so a majority of the flow all all orders do end up here but the way we trade here on the floor even though all the order flow of every day trader in the world ends up here that's not a majority of the way things work so when we get order flow we don't use the the the decisions every every different kind of order has comes from a different place why Is that

person buying it did it come from some research are they buying it are they investing in it is there a long-term game is it a hedge against something else so what goes on here is not should not be thought of as as uh the the mind the day trader mindset yes as you described a day trader is someone who's sitting alone in a room with a couple of computers a couple of shekels in the bank who has sold a bill of goods that you could make a bunch of money on Wall Street if you do

this this this and this and then there's another guy who says no no no don't do that do this this this and this and then don't do that so there's a lot of good information and a lot of bad information there's a a concept on in the social media space and in the retail trading space that the market maker is out to screw you yeah that that don't use stop orders use Mental stops because the market maker sees your stop order he takes the stock down to take you out and then runs the stock up

let me be clear I've been here for 137 years I know market makers I deal with them every day they're trading millions and billions of dollars in shares every day the last thing They're worried about is a no disrespect today Traders whether you trade one share 10 shares or a million shares they have way more important things to worry about on their p&l and their performance than seeing your stop order and trying to sabotage you you poor little retail Trader so for the record this claimer disclaimer they don't that's not their goal I had a

day trader on the floor yesterday from uh Tobago from Trinidad and he was one of those guys who said he uses mental stops and um and why do you use Mental because the market makers out to screw me okay unsuccessful Traders try to find somebody to blame for their not for their La their failure go I know but you know you did you completely got to the point I was trying to get to which is like the reality you know all the feir mongering there's all the this is the best way this is how the

banks do it this is how the institutions do it the reality being exactly what you said there that's not the case they have much bigger things to focus on right so they right so that that's one thing that's super important to know but look there is there are many theories many many strategies there some are Good some are bad um fundamental analysis versus technical analysis some people think technical analysis works if I can share any thing that I've gotten from all my experience if you find something that works for you and works means makes you

profitable on a day-to-day basis what is a day trader a day trader is somebody who slices and dices trades to be to make money and be green at the end of the day the week the month I don't want to hear you are not successful if you made 50,000 today and then tomorrow you are down 80,000 or you are long a stock and you are up 30,000 uh uh in it and by the you turned a winning trade into a losing trade one of the great problems of the mark turning a winning day into a

losing day turn a winning trade into a losing trade not knowing when to stop trading when you're losing the psychology of trading anybody can hit a button anybody can enter a stop order but it's what you do when you get into a trade as I said executing a profitable trade and a bad trade correctly are the same thing it's following rules anybody who tells you they day trade and they never lose is full of BS a lot of people out there are showing you After Thea trades and there are guys who are doing pump and

dumps they just indicted this these guys on on Twitter space who created a huge Discord with hundreds of thousands of players it's an old Jordan balford Wolf of Wall Street pump and dump where they would create and they do it here every day it's being done there are Bad actors bad players right because everybody wants to get rich right so they're guys who create these huge discords they get a big Community they have a room on Twitter space they're all talking about trading the market then they will go out and buy a bunch of stocks

some of them penny stocks some of them cheap stocks they'll tell the community I like XYZ they'll Rush In And while you're buying it they're selling it yeah trust me they got indicted some poor schmeck got indicted for aund Mund million scam against retail Traders pumping dumping them I beg of you all call me email me DM me whatever you need to do there are more Bad actors in the space than good as I said the world we live in now and the market we live in now is a thousand went from a 200 piece

puzzle to a th piece puzzle you could be in a stock the earnings are out great guidance Great earnings great revenue and it goes down $50 one of the things that people need to note which has never happened before it's happened over the last five six years postco is that we've rarely seen a day where there's been less than a 1% move in the market and as much as a 7% move if you're on the wrong side of that kind of a trade it's very painful those are trades you may not come back from MH

so I beg people to um to do their homework do their due diligence learn how to day trade find something that works okay use stop orders I beg you when you get into a trade have a plan why ask yourself the first question why am I buying or shorting this stock did some Uncle Herby on the internet tell me to do it did I see on Reddit am I watching some internet Schmutz or out or does it set up technically there's only two reasons to buy a stock price action and technical analysis in this market

that goes down a th000 up a th000 in one day these are moves that used to take a generation to move unheard of to think that in the morning we are in a bull bull market and in the evening we're in a bare Market that used to take a generation to happen so if you're on the Wrong side of a day trade in a market like that you're screwed okay so have a plan when you get into a stock why am I buying or shorting the stock okay have an exit strategy have a stop order

on every trade you do you buy 100 shares at $50 and we believe on every order you do put in a stop order I mean I'm talking every order as I described to you before you can there are people who use a stop order sometimes and not and they lose 8,000 when they only made 400 no matter what you do have a plan when you get in the stock why because price action and technical analysis tells me to do it it's found its support and resistance it's a moving average trade it's a trend trade it's

a far from moving average trade it's a double but top double bottom whatever there are five really great technical analysis trades that we teach and then there are criteria that must be followed for each one of these trades and each one of the criteria must be fulfilled if you're in a trend trade a trend trade is when a stock is going up for more than 30 minutes m and it pulls back to the 9 or the 15 EMA you buy it okay and then you the minute you get into it You put a stop order

in 1% below the price of the stock if I buy a 100 shares at $50 I put in a stop order at 49.50 down 50 if it goes against me and it can do that very for any number of things somebody shouts some out on the internet a war breaks out the market turns South you know they have a bad Bond auction any millions of different a thousand piece puzzle worth of stuff can happen doesn't make me a bad Trader I got stopped out on the stock but all I lost was 50 bucks so if

it goes against me I'm out yeah okay never change a stop order never go oh it looks like it's getting to be I better change it to $48 never change a stop order strict discipline and consistency psychology of trading if it goes up to 50 and a half I immediately sell half of my position mhm I have money in the back Bank chaing trading from a positive p&l is the greatest confidence builder in the world I then move my stop order up from 49 A5 to 50 locking in Break Even how wonderful is that I

just made 50 bucks and now I cannot lose money on the trade what a great feeling okay this is the exact opposite posture than losing trades Traders do okay so you buy get into a stock for the right Reasons with the plan you put in a stop order if it goes against you you get stopped out goodbye good luck it's okay if I start making money I sell half of the trade 50% 100 shares I sell 50 up 50 cents I lock in a little money I moved my stop up to break even now I

can't lose money on the trade well now I can do anything I want we recommend we at 51 we sell 25% more of the trade we move our stop order up to 50 and a half locking in a half a dollar profit so I'm just I'm I'm riding pretty I'm mean I'm I'm driving down the highway in a Tesla no recommendation of Tesla uh but you know what you hear see what I'm saying yes as opposed to buying at 50 because somebody told me to having no stop order yeah it goes to 49 I say

oh [ __ ] I buy more yeah it goes to 46 I buy more by the time it goes to 42 I'm I'm down 8 Grand I'm nauseous I'm puking outside in the Wind and I sell it and inevitably it turns around and goes back up yeah and I got to find someone to blame for that shitty trade if you're averaging into a trade you're in a bad trade yes plain and simple so then once I've sold half of my shares at 50 and a half and 25% of my shares at 51 and I brought

my stop up to lock In a half a dollar profit then with the last 25% of the trade I put a trailing stop and if it keeps going up I just keep making sales along the way and get the most out of my winners MH and I lose the least out of my losers amazingly enough eight out of 10 day Traders will stay in a bad trade for hours and will get out of a winning trade immediately yes because they're in the trade for the wrong reasons they got into a winning trade by throwing a

dart at a board because they got lucky but in that mindset you're either going to be lucky for a dollar or wrong for $10 and that's not a sustainable freaking strategy for trading yeah fomo hype hope okay you not using stop orders are not sustainable trading strategies so imagine that I just described to you the two scenarios where I blew up my trading account or I made 250 bucks I'll live through that I'll get on now if I'm in a if I get in the trade and I get stopped out I said okay I go

to another stock it sets up technically Market tells me to buy it I buy it it goes against me again I get stopped out 50 bucks it happens the third time I have three losing trades three different stocks three the same stocks I've lost 50 bucks 50 bucks 50 bucks depending on how much you're trading 100 100 100 doesn't matter three losing trade rule I turn the machine off I go home I'm having a bad day yeah it doesn't make me a loser it doesn't make me a bad Trader I'm having a bad day for

whatever reason I walk away go to the beach have lunch with your your partner whatever move on yeah I will come back from a losing day but I will not come back from a Revenge trade day I will not come back from a major big losing day and my goal is for people to make small bits of money over the day the week the month the Year and have a a positive p&l exactly that's it exactly and we'll finish up with two final questions then one being uh you've mentioned obviously being here for the crashes

you know being here in this environment and what can you say in terms of like what the sort of tone in the room is when even that night like you said nowadays it could be a tweet it could be uh some sort of economic event it could be I think recently I saw one of your posts actually in regards to a fake AI picture that then had a little shift in the market and how people reacting and what's the tone like Especially let's say the big crash of 20072 2008 what was it liking here okay

it was unbelievable I and I I've often given talked about it about the different crisises going back to 1929 2000 uh 80 crash of 87 uh 20 2 2007 and Co and um each one of these crisises couple of things that that are important to know about them um each one of them had components that were different that made them happen and I'm happy to break that down to you what what they were but net net over time they were better buying opportunities than selling opportunities so I I mentioned the Wall Street movie is because

the original movie uh because Charlie says to Michael Douglas it's the story of Ivan bosi Ivan bosi was a corporate Raider who claimed that he was having premonitions about stock mergers and in fact he was getting inside information and he was indicted for $181 million uh I have a uh and spent a number of years in prison and um uh but anyway in the movie Charlie Sheen is is Dennis line who was the gentleman at Goldman Sachs who was giving him the inside information and Michael Douglas was uh Ivan bosi he said he he got

him into a trade and the trade Was going down badly he said Gordon never get emotional about money right you you cannot trade having an opinion you cannot trade with emotion you you're better off trading with greed than emotion okay because those are just not the right qualities we are firm Believers if look if I like a story a product a story a company uh and their future invest in the company but when you are day trading sometimes we don't even know what the stock is okay there are certain rules what stocks we will trade

minimum of a million shares a day make sure that the spread the the the room between the bid and the offer okay it's 30 cents 35 C it's uh 101 104 the larger if you're placing and dicing a market as a day trader if you're paying up a dollar the spread is wide there's no liquidity in the stock you're trading at a disadvantage immediately I want to be able to buy a stock very tight or short a stock tight so that if my premise is right I'm immediately trading profitably as opposed to chasing that I

already missed the move um each one of the crisises had a different component the crash of 29 people can go do their own homework the crash of 87 was very Complicated the market was at a high it was some things involved with insurance and whatnot but the the the the the environment was ripe for a crash and there were a couple of catalysts to the crash people can also do their homework there uh but think about it that was probably the largest percentage move yes on the downside I think of any of these crashes mhm

uh it was a different world it was a different time it was paper no technology you know stocks that were trading at 160 closed at 60 companies that were market makers and these names went B belly up out of business you know at the end of the night we got to clear up the uh the books if you didn't have the money to support your positions you went out of business yes a number of firms were able to buy up small companies that went out of business that day and they've done quite well over time

yes um but that was wild and crazy I was a clerk in the crash of 87 and it's a day I I will remember it was a a number of weeks but obviously culminating in the one day of the big uh Black Monday Black Friday Black Monday I don't even remember um but I remember it well because I had you know orders were coming they had Just developed a thing called The Dot system which was a a data order trade and there was a way of in the old days if you wanted to buy a

100 shares 500 shares a th000 or a million shares you called it down on a phone yes hey Peter buy me 2,000 shares of of IBM and blah blah blah well they devised a system where you had a telet typist upstairs input it and then we had this little machine and it would spit out the small orders they were called dot orders there were 100 share 500 share thousand share Lots the machine was spitting out orders that was retail order flow yeah was spitting I mean the machine was just like I was standing there with

orders coming out of this machine on paper like you couldn't even stop it I was like rip rip rip and I had a slew of what's called $2 brokers so brokerage firms have their house Brokers M and they have $2 Brokers that or commission Brokers that do overflow business yes it's a relationship thing so um I've been both I've been a house broker and I've been a $2 broker why is it called $2 broker but back in the day we got paid $2 for every hundred shares we traded okay now we get paid .001 mil

of a penny per trade So the business has changed a lot so I've had to uh pivot as I told you pivoting is important change is hard but it's you got to go with it so I had a slew of these commission Brokers I would scoop up hundreds of orders the guy would walk by me I'd hand it to him and he would just go in sell 500 sell a th000 buy a th I mean it was absolute Maya chaos and Mayhem and but amazing yes crash of the the 2,000 bubble was a little different

my memor is a little skewed of the time it lasted a lot longer it was it L us up to the crash of 07 because it was way more pervasive it was way more uh you know in the in the in the nooks and crannies of the market right it was the dot era right suddenly a new sector popped up everybody loved it it it was no different than a crypto or a meme or anything something new a new product's on the table everybody wants it they Rite it up from 1 to 500 Yahoo came

out at $3 it went to $450 and went to three the bubble burst right but everyone was buying it with abandoned they were getting emotional I got to Own It fomo Whatever was the early part of fomo was that like the tone in the room was it oh absolutely I remember the day In 2000 I don't remember the year but Yahoo was one of the first I guess uh tech companies that came out uh in the bubble boom and and um it was the day that it went from 450 to 3 to correct me if

my numbers are a little bit off it's it's it was many years ago but I was standing there and everybody had bought stock I I had never bought it but even whether you bought it for customers you bought it for yourself when you see a new sector come in and everybody was buying it right it was the bubble boom it was the tech boom uh and the stock went from 3 to 450 everybody owned chairs of Yahoo every Everybody your mother your grandmother or Brokers on the street people all over I mean it was the

beginning of that whole thing and Yahoo is just the name I remember and uh the day it went literally from 480 or whatever number to to virtually worthless yeah I was standing with a friend of mine who was a market maker not in Yahoo because I don't think it traded maybe it traded here and he was just sort of sitting in the corner with a big smile on his face and everybody who had invested in Yahoo was oh my God you know yesterday I was a millionaire And today I got nothing so I walked over

to him his name was Frankie Murphy he was a funny little kudin guy but super smart and he had had a big smile on his face I said everyone's freaking out here why are you smiling he said Pete I've been here a long time I'm a very disciplined investor he said Yahoo I bought it at 5 I sold it at 10 I bought it at 50 I sold it at 70 I bought it at 200 I sold it at 250 I bought it at 400 I sold it at 420 the minute it went to three

I was already out of the stock I had made $20 million and didn't care what happened MH okay so that was such a learning experience it's not how much money you make it's how much money you keep right we see it in day trading now and that was a perfect example of that mindset yes that the day that AMC went viral on memes right and I was we were trading it for customers it traded right here and it went from 20 to 62 after hours it went to 75 I was doing an Instagram live here

and everyone was saying hey MC going to the Moon you know a picture of the spaceship and you know and everyone's riding the wave and I said I'm begging you no one got broke taking a profit if you're in it and you Got a couple of points in it get out sell half do something walk in break get your break lock in your profits right sell half play with the bank's money yeah and they're going you're an old man you're a suit you know you you don't know you hate us you know you're the and

I said okay you know it's going to the Moon I said fine it may go to the moon but it's not going to the moon tomorrow I promise you it's going to go down before it goes up yeah and I literally was bered by thousands of people on Instagram live saying you're a you're a stodgy old man retire you little bastard right the next morning they issued a secondary or whatever it opened at 40 yeah right and it proved me right and I don't need to be right I just want to save people the pain

I if I can do anything to share my experience and strengths that I've learned to to get that so you don't have to go through that pain I've seen uh you know the Jordan balford line I've I've been rich and I've been poor and being rich is a whole lot better and so reach out to me even if you just want a phone call or advice you know to to to test something you're trying I'm available definitely I love that pleasure Buddy yeah M my pleasure it's one incredible incredible experience with Peter there aka the

Einstein of Wall Street wall Street's most famous Trader thank you as always make sure you hit subscribe we have so much more coming and we're breaking down the doors as I said thank you