Our guest today is Nico, known as @ InefficientMrkt on Twitter, a day trader in the fast lane. He focuses on trading low-priced stocks that have a tendency to move fast and far — with almost 90% of his positions on the short side.
The primary reason I have Nico on the podcast today is because he has a story which I know many traders will be able to relate to, in one way or another…
To make a long story short, Nico first got into trading in 2007 and quadrupled his starting capital in the first year of trading. For the next seven years, Nico slowly bled his trading account and has just recently found his groove.
Our discussion centers around Nico’s journey and development as a trader, and how he was able to become a full-time trader in what used to be just a pipe dream.
What’s Covered in This Interview:
- Nico tells us how he acquired a taste for capital markets when he took on a trader as his first client in a software development business.
- How turning a $20k profit in his first year was actually the worst thing that could’ve happened to Nico, transforming him into a “junkie at the slot machine.”
- The way Nico sustained a seven-year consecutive losing streak and the rare moments of profitability which motivated him to continue trading.
- The breakthrough moment that made Nico realize that a change needed to happen. Hindsight is always 20/20 — Nico shares how he could have become profitable trading even sooner.
- How a momentum trader does it on the short side, as well as the accompanying risks of low-priced junk stocks.
- The huge factor in turning Nico into a profitable and less reckless trader was to openly share his PnL and become involved with a community of traders.
Links and Resources:
- EP 082: Futures Trader 71 – We mentioned this episode in our discussion of alternative ways to measure your progress aside from PnL. Futures Trader 71 has some great ideas.
- @InefficientMrkt – Give Nico a shout on Twitter about the episode and follow him!
- darwinex – Darwinex backs independent traders with talent who lack sufficient capital—scale your trading career from a side-hustle to a professional business.
