published-date Published: March 21, 2024
update-date Last Update: June 28, 2024

How Angelo Tripled His Salary Through Trading and Left His Government Job – Astronaut Auditorium #7

Angelo a.k.a Shark Trader guided us trough his initial success story when he tripled his salary and decided to quit his Government job, planning to go for a world tour for a year.

 

Insight into the target market and stock companies

Trading with Weed Stock and FANG Stocks

Weed Stocks are the growth stocks of various companies in the cannabis industry. Angelo decided to invest and trade with weed stock companies because they were garnering a lot of attention at that time and chances of profitable returns in this market are high, allowing him to triple his salary in a short time period.

He further mentioned investing and trading with FANG stocks (four powerful technological companies of America, including Facebook, Amazon, Netflix, and Google). This was the turning point in his trading career when he experienced that much money.

He joined many trading groups and the interaction with experienced members gave him a detailed insight into where and how to invest and locate profitable opportunities.

Connection with reckless company results financial losses

Angelo shared how his association with reckless people in different trading groups led him to lose a major portion of his account within six months after the initial success of tripling his income.

They made high-risk trades, willing to risk 75% of their money. Moreover, the reckless trading during his world tour caused him great financial losses, such as jumping into the standard lot sizes and not doing the technical analysis.

Strategic alignment after mentorship

Angelo’s mentor, who first introduced him in trading, pinpointed the reckless behavior in trading and advised him to realign his strategy.

His mentor made him realize the pitfalls of high-risk trading, convincing him to go for a more conservative approach. Entering the market with the mindset of get-rich-quick can backfire on you if the company ends up crashing later on.

Crucial insights and learnings

Angelo illustrated that the most significant learning throughout this phase is to trade small.

“I trade a micro lot with a $5,000 account and I don’t focus on monthly profit amount, but prefer to go by a percentage on my portfolio.”

He stated that I try to attain a 10-15% increase on my portfolio rather than aiming to get $1,000 in my account. High-risk trades make you more reckless, causing liability and high-loss chances.

Angelo’s trading framework

  • Angelo affirmed that he always tries to risk 10% of his account and go for two or three trades a day, feeling happy over small gains and securing assets.
  • He shared his trading approaches as being a technical trader, he focuses more on technical analysis of the chart and looking for the patterns, concentrating on the breakouts or price movements through identified support and resistance levels.
  • Owing to this, he reflected on avoiding the new-based trading to minimize the risks and looking at the high time frames, like daily, weekly, or monthly, as he usually trades gold.
  • When marking the chart, make sure that the level has been tested twice to locate the upcoming price action. He showed his chart live in the podcast and marked the multiple time tested levels, ranging between 2057 and 2053 and 2049 where he found a nice breakout to the downside.
  • You can zoom into the smaller time frames, such as 1 hour, 15 minutes, and 5 minutes to look for the reversal and volume of the candle.  You can also look for the candle wicks to locate bullish and bearish areas in a smaller time frame.
  • You will get more scared of the trading if you continuously chase the news, so it is better to stick to the technical analysis. The disciplined technical analysis is crucial for risk management, offering more profitable opportunities in the market.

Trend analysis and trading strategy

Angelo answered some questions related to using the trend indicators and trading strategy in the podcast with Antonio. He illustrated that he uses the 200 moving average (MA) to see where the trend is moving or the price behavior over time.

If the indicator line is below 200 moving average, the price is moving down, showing the bearish trend. He explained that he looked for the shorting opportunity or the swing trading.

However, the line above 200 MA shows the upward or bullish trend in the market indices, providing better opportunities for buying.

How to identify fakeouts and when to enter the trade

Angelo narrated his strategy to identify the fakeouts and how he entered into the trade.

  • Zoom out of the hourly chart and zoom in the 15 minutes charts to get a broad view of the candle wicks.
  • A black or filled candle shows a bearish or selling pressure with the long wicks on the head, while the hollow or white candle indicates the bullish or buying pressure with the long wicks on the base.
  • If the candle shows the bullish pressure on the 1 hour chart, wait for the retest of two or three more candles before jumping into the trade, ensuring the breakout and avoiding the fakeout.
  • He further suggested a tight stop loss if you spot the pressure on the wicks, shielding against the potential losses in case of fakeouts.

Angelo’s practical lessons and tips for the traders

Angelo shared some of his practical learning during the course of his trading career, especially during the hard phase of potential losses.

  • Create your demo as it is your live trading account. Try to bring realities as close as possible and apply all your strategies and ideas on the demo chart to see how it works out.
  • Don’t get yourself involved in high-risk trades because you will end up losing all your saved money.
  • He shared a very captivating quote: “Who you surround yourself with is what you become.” So, always try to find the company of professional traders to adapt good techniques and learnings. Meet-ups with full-time traders can bring good results in your trading plan and outcomes.