who's ready to rock today fire nation jlv here and welcome to entrepreneurs on fire brought to you by the hubspot podcast network with great shows like success story podcast today we'll be breaking down how to quit your job and become a full-time day trader with minimal risk to drop these value bombs i brought todd rampy and eo fire studios todd teaches stock options to newbies his simple tsl method turns the table on the market reversal con game professional traders use every day to fool people so that you can profit and today we'll talk about how to become a confident consistent trader we'll talk about the most complicated strategies and why they are a complete waste of time and a simple trading method that todd has used for 24 plus years and so much more and a big thank you for sponsoring today's episode goes to todd and our sponsors the best podcast listening app in the world is here and it's called podopolo visit podopolo.com download the app mention jld or eo fire when you sign up for a free account and start listening now that's p-o-d-o-p-o-l-o.com success story hosted by scott d clary is brought to you by the hubspot podcast network the audio destination for business professionals success story features q a keynote presentations and convos on sales marketing and more a recent episode on how to protect your business in times of crisis is a must listen listen to success story wherever you get your podcasts todd say what's up to a fire nation and share something that you believe about becoming successful that most people disagree with do something that you really like and then figure out how to do it in a way that is is just slightly different so you have something unique and because a lot of people think that oh it's the same old mousetrap well it really isn't if you can if you have something unique about it and you can talk about that and show that uniqueness it will set you apart we're talking about how to quit your job and become a full-time trader with minimal risk and i'm going to get into this because i know a lot of our listeners are stuck in that nine to five that eight to six that seven to seven they're in that cubicle maybe even right now fire nation you're in that cubicle and you're kind of swatted over because you get your earbud in and you want people to walk by and see you're listening to this episode right now but one thing i really like about you todd is that you have this belief that almost anybody can become confident consistent when it comes to trading and you can identify three to five low risk high probability trades every day and that's you fire nation that you can do that when you're that confident consistent trader regardless of the market condition we all know the market condition as we're speaking right now is quite questionable so tell us more how can fire nation become confident and consistent and identify three to five low risk high probability trades every day no matter the market condition well first of all i'm going to work a little bit backwards from what you said about the market right now being a little bit crazy what people don't realize is when you trade options you can make money if the market goes up the market goes down and you actually make more money in a bear market now people scratch their head wondering how that's possible you know how can you sell something that you don't own don't worry about that the brokers handle the transaction but let me give you a quick a little analogy you know the if you're sitting in a movie theater and the usher walks in and says hey there's free hot dogs in the in the concession area you know a good portion of people are going to get up and go get that free hot dog but if the usher walked in and said fire everybody's running for the exit and that's kind of what happens in the bear market it's called panic selling people get nervous they want to protect what they have they don't want to lose any more so they panic sell so i just wanted to address that during this um you know market that we're in currently i mean today september 29th that the market is down facebook's way down as a matter of fact every time i do one of these um i like to take a trade that day put it on my facebook page so that people can people can see that i actually practice what i teach and i put that trade on there this morning i took a trade this morning go watch that video if you like now um how do you identify those trades those three to five low risk high probability trades you have to follow the smart money the smart money is a description of the professional traders the professional traders lead this market and they do it intentionally they've been doing it for years and years and they'll continue to do it so how do you do that you have to figure out a way that you can see their intentions right before they take action and i had the good fortune to be taught this method from a gentleman that i refer to as my seven figure mentor and this was in 97 or 98 i can't remember which year but he taught me how to how to see what they're about to do and be able to get in and get on for a short ride and he used to say another way he used to say this it's todd we are the pilot fish on the whale's back jump on for a short ride but get off with a profit before that whale can hurt you because if that whale decides to reach you're not coming back up so it's you know be safe about it and the way to do that the way to spot these three to five low risk high probability trades is the way that i teach my students using my triple sync logic software and it allows us a very simple three-step manner to to see these and leave all of the all-called average trades the ones that have that you know not such a great high probability of returning a profit leave those for everybody else you know i have a phrase that or saying that i like to describe the way we do this is we get paid for being patient we wait for this everything to set up and we only get into the trade when those conditions are met so it's a pretty simple process and one of the things that um that you said john was that i have this confidence i can take anybody off the street and teach them how to do this 100 without a doubt you don't need any experience you don't need a wall street uh wall street experience you don't need an iv league education you don't need any of that and you also there's a misconception that you need to have deep pockets you need a lot of money to do this and that's simply not the case most of my students start with an account that's between five and ten thousand dollars they're just going for a few hundred bucks a day until they get the hang of it then they can scale so you get you know there's you can get into this with a very low cost and learn this method learn my method obviously i'm biased uh learn my method within about 60 days and be self-sufficient so it's not that difficult to to um to get out of that grind that you just described you know people that are hunched over listening in their cubicles i you know i'm 57 years old i haven't worked for anybody since i was 25 and i got one day and said i'm done with this corporate life called my boss i said i'm done and that was it so freedom to me is you know i'm mixing a lot of things here my answer but freedom to me is the most important thing and i love this your podcast you know the entrepreneurial spirit and people really need to do something and they need to take action because you know every day that you procrastinate in my opinion you lose a day of freedom fire nation there's so many takeaways i hope that you were getting from everything that todd just shared one thing that i just wrote down because i thought this was so awesome is that you are getting paid for being patient you're getting paid for being patient not for being first not for being greedy not for like just jumping on this and doing the next thing whatever you're being paid for being patient so think about that now let's talk about a really sneaky tactic that professional traders use to fool the public that's us fire nation and profit daily what is that tactic that is the market reversal and the market reversal is done by the pros every single day in every single stock that has their attention what do i mean by that i mean that they don't pay attention to penny stocks these are professionals with they got three trillion dollars invested in the market that they have to buy and sell in order to generate a profit and they're not going to do that with a company that just came out with the latest widget and it's on the market for 10 cents it's got to be a stock that has volume and volatility so when they decide to move the market it is because they're scaling all of this money this incredible amount of money into the market and out and they're picking the pockets of the retail trader now the retail trader is me it's everyone that's a non-professional the person sitting at home trying to make a living or you know trying to trade from their their home computer so the market reversals happen on a regular basis like you know we said in just a few minutes ago three to five times a day per stock so you know we watch four or five stocks every day it's the same ones facebook apple nvidia we watch a couple of etfs etfs are exchange traded funds and one of those is the spy another one are the queues and we like those because they they they cycle a little bit slower it's good for the new trader to pick up and they just have incredible volume and there's there's incredible opportunity every day in those markets and again if you just sit back and be patient you will see that the smart money does this on a regular basis and we follow we need to look for four separate patterns that give us a heads up that it's about to happen and all you need is a few minutes prior to them sailing in or sailing out to participate and make your profit fire nation i hope you're realizing that this is a real game that's being played on a daily basis if you don't know the rules how can you ever expect to win and that's we're talking about right now and so what if we just wanted to test this out we're like okay this sounds pretty interesting how do we get started how do we grow a small trading account you know if we don't have an ivy league education or wall street experience if it's just fire nation our listeners they're like you know what i can dedicate some time to this you know maybe have five ten fifty thousand dollars that i can you know start with what does that look like well first of all you you know as i said before you just mentioned again that you do not need any experience i will give you my personal experience i squeaked through high school i was a terrible student doesn't mean that i'm not smart just i just did not mix with high school uh never went to college and but i have this you know i've always had this desire to have freedom and i'll take a little side track here for a second when i was a kid my mother asked me what do you want out of life and i thought about it for a second i said to be content and she said what do you mean by that and i said i just want to feel like i am where i am supposed to be all the time and comfortable with it and a lot of people think money equates to uh happiness it doesn't but as prince said it'll pay for the journey and i love that line um so so how you know again you know my experience with starting out i didn't have any trading experience i went to an expensive seminar 100 of it was over my head i flew back home to boston where i'm from and and i thought boy that was a total waste of a weekend i have no idea how to do this so so what you know how can i do this so i started studying and looking around and doing what everybody does you know doing their research and i figured out well i actually met my seven figure mentor's brother and that's a whole other story i don't have time for right now but i convinced him to teach me how to do this and i realized that that um keeping things simple we've all heard that acronym a million times you can't keep it simple student is what i like to say and you're laughing because you know what most people say you know when i flew out to see him the first time i wanted to impress him with my taking the initiative and all that so i read a bunch of books on trading options and i got there and he said um he said do you want to become an expert in options or do you want to learn how to make money trading them and i went wow i said i want to make money trading them he said put the books down sit down i'm gonna show you how to do this it's a very simple step-by-step process as i said and anyone can learn how to do this so how do you do this with no experience well first of all obviously i'm going to direct you towards my website wealthbuilders institute.com because we take at the the beginning the absolute you know zero experience and teach them how to do this we also take people that have been trading for 20 years and reprogram their thinking because most of what's out there unfortunately i'm in a business where there's a lot of snake oil and uh most of what's out there is nonsense again i'll be nice and and it's a waste of time and waste of money even though i had my seven figure mentor i still personally went out and spent forty thousand dollars on other things indicators programs whatever thinking that it would give me a slight edge and help me in you know my trade total waste of money all that information is sitting on a computer in a closet in my house and i don't think i've turned it on in 15 years again keep it simple learn how to do this in a way that follows the smart money it's like the old line of you want to become a millionaire well hang around with a millionaire you know mimic that person you want to become the world's greatest ditch digger go hang out with the world's greatest ditch digger you know it's not that difficult to figure things out i started a couple of businesses by just looking at other other people and seeing how they do it and i go i can do that i can do it better now when it comes to trading you have to rely on yourself and the only thing that you have to wrestle with every day as a trader are two emotions fear and greed that's it if you let either of those get a hold of you you're going to turn into a gambler we have a method that is it is incredibly strict if you do as i said earlier if you do not see these three key things set up you do nothing you sit on your hands again we get paid for being patient so anybody can learn how to do this i have 100 confidence in that because i've got i don't know probably between four and five thousand students at this stage and the percentage that say they can't do it is very small i've talked to a gentleman who's in his early 80s he's like look i want to keep my mind sharp i want to do this you know a few days later he says you know what i think i'm gonna go back to watching tv and putting around the house you know i understand that but anybody that wants to become an entrepreneur i think this is the world's greatest business you know trading where can you trade from anywhere in the world with an internet connection when you're in puerto rico how many people would love to live where you live and make a living my wife and i moved to mexico for four years lived on the beach while i was trading because i didn't like the weather where we lived in the u.s at the time i'm like let's get out of here i can trade from anywhere in the world i said here's my idea let's let's go someplace where we'd like to vacation so when i'm not trading we're at that spot and so let me jump in here because there's one question that keeps coming up for me i think a lot of listeners probably too is how much time are you recommending that's the average person spending on an average day of course there'll be things and factors that make things different but like from everything that you teach and you see if people are just going to implement your strategy and do what you were doing what is the hours is like 9 to 11 a.m or is it you know like you need to be in front of it for the entire time the stock market's open like what does that look like specifically very common question i'm glad you're asking you know the market is open and i'll talk about east coast time you know new york stock exchange 9 30 a.m to 4 p.m realistically you only need to do this for you know two to three hours a day the morning is the best time i would i tell all my students to avoid trading the last hour but the short answer is you only need a few hours a day that doesn't mean that the traders knock off after a few hours but i think the new student should get in make a make a little bit of money put it in their account grow their account so they're trading the house's money i call it your stop building your stop loss bank because you want to make some profit to cover future losses that way you're not reaching you're not digging into your initial investment but the time you know two to three hours a day typically in the morning um and and some people only trade for a few you know a few days a week so but then again you get people like me that once you get into it it's like when friday comes along you go ah shoot it's a weekend you almost get this opposite feeling i don't have that anymore this is years ago it's like tomorrow saturday i can't trade you know um but you don't need to invest that amount of time okay we've got a lot of cool things coming up and we're gonna be answering a lot more questions that i know you're having floating around right now in your head when we get back from thinking our sponsors ready to ditch your subpar podcast listening app and download an app that has every feature you want and need with more great features being added all the time the app is podopolo and you can download it for free and start listening right now at 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you feel out of sync like you and the rest of your team aren't on the same page and when a team is disconnected your customers pay the price if the software you're currently using is sharing out of date data on your business or your customers that equals trouble or maybe you feel like your software is making it impossible to see the full picture if that's the case then listen up customers end up bearing the brunt of this disconnection being a great customer experience is lost sometimes forever ready to get your team on the same page HubSpot transforms everyday conversations, strategic decision-making sessions, and everything in between into moments customers feel good about. With a lovingly crafted suite of tools, you can seamlessly connect to your team so everyone has access to the same data, and you're able to focus on what really matters, your customers. Learn how HubSpot can help your business grow better at HubSpot.com. So, Todd, one thing when I was doing my research on you that I liked, you're a simple guy.
You like simple things, and you believe that most complicated trading strategies are a complete waste of time and effort. Speak to that. I think they're designed to complicate the student so that when they don't work, the trading educator that sold it to them can not take any responsibility. And here's the thing.
If you're looking at, I'll talk about an oscillator. If, you know, virtually every trading platform, the charts that we see the price bars and the indicators on, they all come with built-in indicators, and a lot of those are oscillators and moving averages. So if you have a choice of 10 different oscillators, and you put them all on your chart, they're giving you a slightly different picture of what's taking place in the market 10 different ways. Now, I don't know about you, but I don't want to look at 10, you know, it's like walking into Home Depot or Lowe's looking for a color that you want to paint, and you look at 52 different shades of blue.
It's a little overwhelming. You know, show me three different colors, you know, maybe four different shades of blue so I can pick. Not all that, because then I start getting confused. And I think that happens to most people.
And it's almost like the statistics of what people do with self-help material. They buy the CDs. I'm dating myself here. You know, they buy the product, and they go home.
They're all excited. They go home. They put it on a shelf, and they never open it. And when traders get a lot of the information that's out there, they realize that it's not that easy.
Okay, let me break an error, because I know what you're saying here. Complicated, bad, simple, good. So I want to get to the good part, which is the simple trading method that you've used now for over 24 years. Like, let's just get to the good stuff.
It's called triple sync logic, and the name came from, we look at three separate charts. The indicators are identical on all three charts. So we're just looking at them in a slow, medium, and fast snapshot of the current market. It's when they all line up.
That's the second name, sync. When they all line up, that's when we decide to, that's when we take action. And the, you know, the logic part of it is just another way of describing computer code. So we follow a three-step method where we need to see our oscillators in a green buy zone or a red sell zone.
We talk about keeping it simple. They're color-coded. Green is up. Red is down.
Green is long. Red is short. We then look for a couple of patterns. The patterns are where the key, in my opinion, a huge portion of why this is so successful is that it's the patterns that confirm that the smart money is in play.
And then we use one of my proprietary indicators that tells us with a green dot or a red dot that pops up on the chart that says there are more people interested in buying at this particular time than they are selling. Now, if we're going short, we're interested in seeing that red dot. So that's it. It's the oscillators in the buyer sell zone.
Two patterns. Green dot confirming the trade. Click the mouse. Get in.
Manage it. Now, let me add one thing to it. A lot of trading educators leave the trader hanging. They don't explain, and this is incredibly important, they don't explain how to manage the trade once they're in.
And I've asked thousands of traders, literally thousands of traders, this question, what do you do once you're in? And they kind of shrug their shoulders. Let me answer it for you. You stare at your P&L, right?
That's your indicator. Well, that's not an indicator. Just because you made a little bit of money or lost a little bit of money doesn't mean you get in or you get out of the trade. You have to have rules to stay in.
We teach our students exactly what to do so that they know when to get into the penny of the price of the stock and when to protect themselves, move that protective stock to a break even to the point where they're in a free trade, meaning they can't lose. And we tell them exactly when to do that. All of my students follow the exact same formula because it works. So let me get this straight.
There's something along the lines of renting stocks for less than 1% of the price of the actual shares. This is kind of where it gets a little less simplistic, at least to me. Like, what does that mean and how do we actually do this? 22 years ago, I started trading day trading stocks along with what my mentor taught me.
And I was trading it with a pretty sizable account and I was buying the actual stock. It wasn't until I learned about leverage that I was putting way too much money on the line or needing to come up with a bunch of money to make a significant profit. So to answer the question of how can you rent stocks for less than 1% of their share prices, that's exactly what I teach my students. It's the importance of leverage where if you look at, let's just pick on, let's choose Facebook stock.
And Facebook, let's say it's $150 a share. Well, if you were to buy 1,000 shares, you need $150,000. And I like to ask this question, you know, by a show of hands, who has $150,000 lying around to speculate on Facebook right now? You know, very few, if any, hands are going to go up.
Now, what if you could rent the same 1,000 shares and do it for about $2,500? Well, first of all, you know, that's kind of a rhetorical question. Of course, I'd want to do that. The second thought that pops into most people's heads is, I don't believe you.
How can you do that? How is that possible? Well, we trade the weekly options. They expire every Friday.
And because we get in and out of our trades on average within 45 minutes or so, we don't care about what the price of Facebook is going to be tomorrow or next week or next month. You know, there are three types of trading. There's day trading, swing trading, which is when you hold for a few days to a couple of weeks. And then there's buy and hold, which is what everybody knows.
You know, it's what you're in your 401k. You know, I hope it goes up. That's where most people have their money. That's where most people either do well or they do poorly, but they do it as a huge group.
Day trading is completely different where we care about the value of Facebook over the next 45 minutes. And what I teach my students is because the smart money is getting involved, they typically move that stock in a repeatable cycle. And that repeatable cycle is about a dollar. So we might get in and Facebook's $150 a share.
Moves a buck. Now it's $151 a share. And we get out with our $2,500 investment with about five or six or $700 profit. Now, I'd like to talk about 10 contracts, which is what the $2,500 investment is because everybody can do their own math.
Somebody with a ton of money can trade a hundred contracts. Obviously, that's $25,000 and the return is, you know, it's all equal. But the ability to rent the stock is done through buying the option. And the key is buying the weekly option because they move, they give you the biggest bang for your buck.
They move the farthest, the quickest, and deliver a much, much higher than average return. Again, I took a trade this morning. You can see it on my personal Facebook page, which I keep open. And I recorded it, put it up there.
I took a 10 contract trade, it was a $4,700 investment, and I made $3,000 on the trade. Now, I don't know what that is percentage-wise. I don't care because when people talk about, wow, that's an 80, who cares about that? That's just, you know, that's just promotion.
The fact is I'm controlling 1,000 shares with less than $5,000 and was able to pull a $3,000 profit out of the market on that one trade. Now, that's a little unusual because the average return on our trades is somewhere around $500 on that $2,500 investment, which is still off the charts percentage-wise. So that's what we do. We control 1,000 shares.
And that 1%, by the way, comes from the invested amount in the option versus having to buy the actual stock. Fire Nation, some of your heads may be spinning right now with this opportunity. And, of course, you're going to learn on where you can find more information about this. But, Todd, before we get there, give us just one takeaway.
What's the key thing you want to make sure Fire Nation gets from our entire conversation today? If you're interested in doing this, understand that it's not a race. This is a market that will be here forever and ever. I asked my mentor when I was visiting with him one time, I said, how long do you think this will last?
Because certainly everyone's going to figure this out. And your little secret here is going to, you know, go by, you know, fall by the wayside or however the saying goes. And he just kind of shook his head. And he said they've been doing it for years.
They will continue to do it for years because the retail public, again, that's the non-professional, will always make the same mistakes over and over again. They're easy pickings. So when you get into this, when you decide to do this, again, don't complicate it. Follow something that is very simple and understand that it is a commitment, but it doesn't require this.
You know, people get into it and think, hey, you know, if you want to become a millionaire by next Thursday, you know, it's not going to happen. You want to really, you should realize that this is the best business in the world and it takes a little bit to get good at. But it's not this incredible fast race. Just take it easy.
Go at your own pace. I've got students that come out of the gate and do incredibly well after three weeks. And others that take three months. And I can't tell you why.
I have no idea what the difference is. You know, I don't think there's any difference in their intelligence or anything. It's, you know, some people pick up things quicker than others. But you'll get it.
I guarantee it. And we offer live coaching every week. All of our students come to classes for those. So we get you right, you know, if you go off track a little bit, we get you back on track very, very quickly by answering your questions immediately.
Well, let's get to it, Todd. Where does Fire Nation go to find out more about what you have going on? Two places. You can go to TradeWithTodd.com, that's two Ds, or WealthBuildersInstitute.com.
Fire Nation, you're the average of the five people you spend the most time with. And you've been hanging out with TR and JLD today. So keep up the heat and head over to EOFire.com. Type Todd with two Ds in the search bar.
His channel page will pop up with everything that we've been talking about here today. Links to everything. And Todd, one more time, those two URLs. WealthBuildersInstitute.com and TradeWithTodd.com.
Todd, thank you for sharing your truth, your knowledge, your value with Fire Nation. Today for that, we salute you, brother. And we'll catch you on the flip side. Thank you very much.
I appreciate it very much, John. Hey, Fire Nation, a huge thank you to our sponsors and Todd for sponsoring today's episode. And Fire Nation, are you ready to rock your very own podcast? Check out our free podcasting course where I will teach you how to create and launch your podcast for free.
FreePodcastCourse.com. That's FreePodcastCourse.com. I'll catch you there or on the flip side. The best podcast listening app in the world is here and it's called Podopolo.
Visit Podopolo.com, download the app, mention JLD or EOFire when you sign up for a free account and start listening now. That's P-O-D-O-P-O-L-O.com. Success Story, hosted by Scott D. Clary, is brought to you by the HubSpot Podcast Network, the audio destination for business professionals.
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