Here we have our second trader to follow across 2019. Aaron Oetting is better known for his role in running a successful, and very niche, wedding cake stand eCommerce business.
However, after looking at the bigger picture Aaron realised he needed to open up another stream of income to secure his financial future. He chose the stock market.
In today’s interview we hear what Aaron has learned over the past 13 months (lessons we can all benefit from) and how he’s positioned to make 2019 the year it all comes together.
To help Aaron along the way, I’ve paired him up with Jerremy Newsome who’ll be mentoring him over the year.
We hear from Jerremy near the end of the interview and the approach he’s taking with Aaron.
Podcast Interview
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Watch Their First Mentoring Session
Jerremy’s been kind enough to give us a ring side seat to his first mentoring session with Aaron. Here’s just one of the comments about how insightful it is:
“This video is an absolute gold mine.”
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Key Lessons
- [11:55] I will say the hardest part of the whole process of trading was the very beginning and I don’t think that if I hadn’t had somebody who knew what they’re doing that I can ask the dumb questions of, I never would even get to the starting box.
- [14:54] To me, learning the differences in someone who has a trading skill vs investing was a huge twist.
- [24:24] I was really interested in the idea of you buy low and you sell high.
- [26:41] The real guys are trying to catch the momentum up.
- [28:30] For me what was always interesting was that the market wasn’t necessarily about how much the thing is actually worth but it’s how much people believe it to be worth.
- [31:10] So when it hits just under the support line, everybody else is getting stopped out then you can jump in and it’ll go back up.
- [38:07] I’m not trying to make money, I’m trying not to lose money.
- [38:20] We’ll celebrate bigger the trades where we didn’t lose than the trades that we made more money.
- [40:39] That ability to control your emotions is not taught in school and is the most important aspect to success in some ways.
- [41:33] I truly believe that any strategy can make your money, you just have to figure out the edge.
- [42:29] I think the hardest thing is you need to quickly identify your own personality and how it’s gonna match up with the strategy.
- [43:07] You need to learn one specific thing really well … don’t try to get it all at one time.
- [48:49] One of the most important and viable things we can do in trading is go back through our system of trading and just review what went right, what went wrong, and what we can do better.
- [31:10] So when it hits just under the support line, everybody else is getting stopped out then you can jump in and it’ll go back up.
- [38:07] I’m not trying to make money, I’m trying not to lose money.
- [38:20] We’ll celebrate bigger the trades where we didn’t lose than the trades that we made more money.
- [40:39] That ability to control your emotions is not taught in school and is the most important aspect to success in some ways.
- [41:33] I truly believe that any strategy can make your money, you just have to figure out the edge.
- [42:29] I think the hardest thing is you need to quickly identify your own personality and how it’s gonna match up with the strategy.
- [43:07] You need to learn one specific thing really well … don’t try to get it all at one time.
- [48:49] One of the most important and viable things we can do in trading is go back through our system of trading and just review what went right, what went wrong, and what we can do better.
Aaron’s Trading
- He trades the Stock Market
- He’s a swing trader by necessity
- He’s been trading actively for the past 13 months
- He’s looking for upward channels with strong momentum upwards and buying the pullbacks
- He did 10 wins, 11 loses and 4 break evens last January
- He sticks to a 2:1 Reward-to-Risk ratio
- He tracks his trades using spreadsheets
- He tracks every stock that drops more than a 10% gap down every day
- He uses the FINVIZ screener to find potential stocks to trade
- He looks for stocks with over $2 that have an average volume of over 100k in an upward strong pattern
- He has 20 to 25 stocks on his watchlist
- He has a new rule that he’s not going to buy on red candles or sell on green candles
- He uses the 3-day, 8-day and 200 moving averages just to look for general momentum
- He also uses VWAP
