Angelo, known as Shark Trader, shared his journey of tripling his salary through trading, which led him to leave his government job. Initially, he engaged in high-risk trades and lost significant money, but he learned to adopt a more cautious approach. He now focuses on technical analysis, particularly in gold trading, and aims for consistent portfolio percentage gains rather than specific profit targets. Angelo emphasized the importance of surrounding oneself with professional traders and learning from both online resources and in-person meetups. He also highlighted the value of risk management and avoiding high-risk trading behaviors.
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.
I held on a lot of weed stocks, and I did a lot of earnings plays with Fang stocks because the group that I was in, we were all strictly stocks. So, that’s how I got into it. I tried to dabble with Forex, but I just couldn’t. And then soon, that’s when I met two guys that did gold, and I kept in touch with them, and that’s how I got more into gold like later on. I think stocks is what kind of converted me to gold because of the, I guess, the people that I was associating myself with at that time.
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.
You could say they were risking, they were willing to risk 75% of their account and willing to be on a drawdown and keep holding it.
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.
I was looking more for a company that was ready to pretty much blow up, like the weed stocks, for example.
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.
How to Trade Gold in Forex
My most important one is probably, I guess, really small after what happened, how much money I lost and everything. Yeah, I trade probably a micro lot with a $5,000 trading account. So okay, and I don’t go by profits, I go by percentage on my portfolio. So on my portfolio, I try to aim for 10 to 15% on gains for the month. I don’t aim for, let me make $1,000, let me, for me, it’s, let me make 10% of increase on my portfolio.”
- 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
“I’m thinking not like Wall Street, but more like the lady who taught me how to trade. I kind of want to trade like her. She trades pretty low risk, and I guess she’s my role model on trading compared to the guys that I was with before.”
Okay, do we have maybe a specific number of trades you make per day, or let’s say a magic number? Two or three, that’s it. Why three max? I guess just to keep it at a minimum
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.