What Tech Things You Need To Trade

Let's break down some of the techie barriers where trading is concerned, shall we?

You don't need an IT degree or 6 supercomputers. You don't need to stare at charts all day. And you don't need some trading signal service that tells you what trades to make (how could you ever rely on that long term)? 

This episode talks you through the exact 4 things you need: a computer, trading software, a broker and some data. I give you exact names and who to use. Plus I talk through how much money you can start trading with.

If you want to learn more, come and join me at the Proven Predictable Profit Trading livestream Party. It's happening this week... make sure you're on the list to get all the info plus special access to replays if you can't make it live.

Head to mswealthy.com/trading

xo

Simone

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My name is Simone Mercer-Huggins. I am an investor and trader, and so far I've built over seven figures from the ground up. And now this community is doing the same. The Ms. Wealthy movement is here to share tools, resources, strategies, and support on all things, financial freedom tune in for everything, money investing, mindset trading and everything in between. If you want to be a powerful player in the wealth creation game, you're in the right place. So welcome to the kiss, my money. Okay.

Hey, a really quick reminder, before I jump into this episode that I am talking about trading, not investing. Remember, there's a huge difference. If you want to know the difference. If you're unsure, you can scroll all the way back to episode nine on this podcast where I talk through the difference. And you can kind of determine whether it's for you. If you are already an investor, or if you know enough about investing to know the difference, then definitely tune in if you have any interest in trading at all. But I wanted to make sure that caveat is put out there because this is way more complex, way more detailed and a totally different strategy as a trader. Then if you are an investor, okay, are you guys ready for this week's PPP trading potty. If you haven't been on Instagram lately, or if you haven't seen the socials, I've been talking about the PVP trading live stream potty that is happening this week.

And I hope that you can come and join me cause I'm going to be diving into a lot of stuff. I have been a trader for the last six to seven years of being profitable since I started, uh, because I learnt the PPP way. And if you are unsure about what that is yet, it is essentially the predictable proven profitable method. And I use those three words in different sequences, but really it doesn't really change anything. It's essentially, if you are not trading in a predictable, profitable, proven way, then you're gambling. And I am willing to put my full conviction into that statement because I know a lot of traders that really, oh my God, so many just lose money. And so many don't trade with a proven predictable or profitable method that discretionary traders or they read charts, or they try and predict, or there's just a lot of guessing going on.

Sometimes they make money and sometimes honestly that's worse because it just gives them the false sense, whatever they just did worked. And the actual stat, the truce stat around numbers is that about 3% are actually long-term profitable as a trader. And I believe it because the number of day traders that well, I put an inverted commas day traders and inverted commas for X traders because they, a lot of people do try. Um, but they don't actually have a method that don't have a proven method. And there's a lot of trading teachers out there, unfortunately that, you know, try and sell you on their forks or day trading strategy, but they make more money actually selling it than doing it very few, uh, transparent and very few actually show you real results. Most of them just make money from on selling or locking you into the, um, either the broker or the trading platform that they use, or, uh, they make money off commissions from encouraging you to use leverage, which is pretty risky.

If you don't have a proper proven strategy that is profitable. And then they like a lot of commission off you and then you end up blowing off your account. So I've spoken about that in past episodes. I'm pretty sure about this episode today is about the things that you need to become a trader just to like break down some of the myths around it. But I wanted to also make sure that you are registered for the PPP trading live stream party. It's a mouthful. So the proven predictable profitable trading live stream party is happening this week. Make sure you are on the list, just go to Miguel. he.com/trading because I'm going to be giving everyone the inside info. And if you want to join the program that I talk about, you know, I'll tell you more about it. Once I kind of do a little bit more info around exactly what is the PPP method, but if you do want to actually learn how to trade profitably predictably and in a proven way so that you can actually make money and actually be in the 3% and I'm not blowing smoke up your to, for the lack of a better term.

Um, but if you do want to learn that methodology and that way, then I'll also be sharing a very special offer that will only be limited for a limited time from the first day that I go live in the PPP trading livestream party. So make sure you're registered for that. But I wanted to talk about really today what the four, the four main things, ah, that you need to have as a trade-off because there's a lot of myths around this. So one of the myths is you need a lot of money and that's not true. You can actually start with a lot less, so you can start with $500. If you want to, as a trader, ideally you kind of start off with a few thousand, honestly. Um, but you will need a couple of other things which I'm going to talk about now. So that one was quick.

That's how much money do you need? Sorry. So to Buster, the myth of, you know, you need tens of thousands of dollars. I started with 10,000 as a trader about six or seven years ago. But if you know my story, then you would know that I was an investor for years before that. So I learnt the investing game. I learned if you know, financial foundations, I learned exactly how to manage my money. I was confident with, um, how I managed money and giving my money purpose. And I knew exactly how the financial markets worked because I understood it as an investor. Then I learnt trading. And then from there I learned to paper trade. So I took my trading strategy that was proven, that was predictable. That was, I knew it was profitable and I paper traded it. And basically that just means you go live with it.

So you pretend, so you have your broker account and you pretend that you're making trades and you record them just in a pretty standard Excel sheet. Um, and you track them and you can just do this for one to two weeks and just go through the motions of, I would bought it this press. Um, I followed my trading system because this is what it told me to buy. Um, you know, maybe a week it tells you to sell maybe two weeks later, you're still in every single position that you bought two weeks before, but it's really just going through a process of feeling confident about the decisions that you're making, you know, kind of like ironing out any kinks in the trading strategy that you're using. Um, just getting used to market volatility and market movements. So I paper traded for a little bit. It wasn't very long.

It's only a couple of weeks and then I started properly trading, but I started with $10,000, but you don't have to, you can start with 500, ideally two to 3000 is what I like to see most people starting with. I only say that because starting with $500 is difficult to diversify with, you're starting with 500, um, particularly with broker fees and depending on where you are in the world, most brokers in Australia for example, have a minimum of 500. I know that Sunburg is in the U S also the same, but even if you're paying five to $10 per trade, then that's still quite a lot. And you're going to see a lot of volatility with that amount, but I don't want that to stop people to starting to, if you are confident in your system, if you've learned how to build your own trading system, um, I don't want that to stop you if you left well, have 500 drills and ready because you can still get in and start with that.

Okay. So let's talk about the other things that you need. The other things that you need is a computer. So a lot of people do ask me, can you trade with just your iPhone? And the answer is no, at least the PPP way, the trading strategy. So when I say PBP, it's proven predictable profitable. And what that means is you have a trading strategy, you have a system. So a system basically just means you have these rules, a, B, and C tells you to buy D and E tells you to sell. And these rules means that you can back test in a trading in trading software, and you can look at if it's a proven system that is profitable and you can predict what happens in market shifts in market movements. Like when there's a sudden pull back or we see a correction or we see a bear market.

So it's very predictable. What happens. It's very predictable in terms of your returns, very predictable in terms of any drawdown. So what draw down is from the very top, like the peak of your profit, but unrealized profit. So just because like say you started turning with $10,000 and it went to $15,000, but you had an exited those positions that were still all open positions, meaning that we're still in the market because your trading system didn't tell you to exit, because why would you cut your losses, right? Or, sorry, why would you cut your profit off the knees? Why would, why wouldn't you just keep leaving your profit to keep growing? So say it got to 15,000, and then we had a massive drop in the market. And it went to 13,000, which that's a fairly big drop for only a $15,000 stock portfolio. But if it dropped to that, then the drawdown is $2,000.

So that might be too much for example. But the point is that you can design a system that is within the parameters of what you're comfortable with. So you can go, well, I only want a system that is going to see a drawdown of 10% or 20%, or I'm okay to see 30%. So you can tinker with this in back tests and design something that is predictable. So then if anything would have happened in your trading that was outside of those parameters, then you can go, okay, well something's wrong. Or I need to relook on my system, but only then can you go? Something's happened. But this is outside of what was predictable for my system. So I've been, like I said, I've been trading for a while now. And I would still consider me as being like a fairly new trader, like to me, six or seven years, isn't that long.

But, um, my system is still, has still performed for that period of time within the parameters of what is predictable and what I expect it to do. So it's also proven I've tested it on different markets. I know exactly what, how it works. And that's obviously I know exactly how profitable it is. So to trade a trading system and to have those elements, have it be predictable, have it be profitable, have it be proven, you have to have a system that you can test and you can't do that on an iPhone. So you need a computer because you need the third component, which is trading software and trading software. Doesn't appear on an iPhone. Unfortunately it's a little bit more in depth than what you, what iPhone can handle. And it would be very difficult to actually look at all of the stuff that you need to look at when it comes to a trading system that you, in, that you put into the trading software.

Um, so you have to have a computer for that. So trading software is what allows you to check if your trading system is proven predictable and profitable, and this will tell you things like how profitable is it? Like I said, um, you know, what are the predictable areas that I can expect from the system? And, uh, trading the trading software allows you to scan thousands of stocks and test your system against it. And this is what is probably the most powerful differentiator between someone that picks stocks or is just, you know, it looks at charts and someone that is predictably profitable in a proven method that works it's by having a trading system that you test with trading software, essentially you back test it. So you'd take your system, you put it into the trading software and it back tests across tens of thousands of stocks across any market that you want.

And it tells you if it's profitable, how profitable it is, what to expect. And there is no way that you could do this. If you were picking individual stocks, or if you were, what is called a discretionary trader, where you're just looking at one stock chart, you couldn't possibly put this against the tens of thousands of stocks that are on the market around the world. Like you'd be here until you're 70, and that would just be for one day, and then you'd have to do it again for the next day across thousands of stocks, which is why trading software is so powerful. So you can get all types of different trading software, there's multi charts, trade station, ninja trader Amy broker trading books, like there's heaps of them. I personally use a trading software called multi charts. It's fantastic. The customer support is great. The, uh, you know, what you can actually do in it is quite advanced.

A lot of people use Amy broker. It's one of the cheaper alternatives available trading blocks is probably the, one of the most advanced. I'll talk more about this in the PVP trading party. Um, and I'll talk more about the program that I, you know, and the offer that you can join if you want to join the program and learn to trade. Um, and the recommended for that program is actually Amy broker, because there's a lot of coding support and done for you, trading templates, essentially trading systems that are already created for you. And it's done in Aimee broker. So really it comes down to the best decision for you. There's no right. One. There is like, I really need to be clear about that. There's definitely no right. One. There's no like that this trading software is going to make you more profitable. No, uh, it's just the one, the right one for you.

When I did my research as a trader, and it's really important that you do your own when it comes to trading, like you need to be a hundred percent confident that you are the one in control because you are, you're the one that's going to be looking at your trades every day. And when I say every day, I don't mean like for eight hours a day, cause we're not here to be day traders. We hit a B end of day traders or end of day data. Um, but you're, you're the only one that's going to be controlling that. So you need to be confident in the software, but Amy broker is great to have a little bit of a poke around and I can talk more about it in the PVP trading live stream party. And you can DM me questions if you want to as well.

And then when I talk more about the program, you'll get more info about like what's in the program and how many trading systems that you get it's done for you and all that kind of stuff, and some options as well with the offer, but that is the software options. And then you need a broker and that's the fourth component. See how it's not that complicated. So the broker is something like E-Trade fidelity in the us and Australia. It's like silk wealth will CMC their best one globally that I think is fantastic is one called interactive. Brick is, and that is the trading broker of choice for professional and advanced traders or even intermediate traders. And ideally it's the one that most people use because it's the lowest cost. It's the most accessible in terms of trading global markets. So for you, for, for anyone that wants to grow as a trader and have a broker that accesses global markets at the cheapest possible price, and that is the best broker, but there are a few requirements with interactive brokers.

Like you need to have a certain net worth, you need to have, um, a certain level of liquid assets. And depending on where you are in the world, it's a little bit harder to open an account, but there the broker that I certainly love, I think that it's the best for anyone that wants to be a long-term trader, but you can start with any of the others. There's nothing wrong with them and you can always, um, transfer your positions if you want to change later. Right? And then the final thing is a data feed. So I said that there's four things and there kind of is for practical things. And the final part is how much money you're starting with. But the fourth, like actual physical practical thing is having a data feed. And that just means you put that. That's just means where you pull the data from, and there's heaps of different data providers.

Um, and depending on what trading software you use, they have preferred, or they have the best set up. Um, it's honestly super easy, but basically that just means that's where you pull up all the data for the market that you want to trade. So at the end of the day for you, wherever you are, you literally just press a couple buttons and press download data, download the data for the day from the thousands and tens of thousands of stocks for the market that you want to trade and you can trade multiple markets. And it does it within a few minutes and then you're done and it just automatically puts it into the trading software. And then if you have money for that day, then that's where you start then starting your trading process. So you look at your positions, your open positions and you go, okay, what happened in the market today has any triggered any stop losses.

So do I need to exit any of them? Um, do I have additional funds to trade? So I'll run the scan and does my trading system tell me to buy any additional stocks? Obviously, if you don't have, um, additional funds and if all of your funds are already allocated to positions, like you already have stocks that's used at all of your trading money, then you won't need to run that trading scan. You only need to run that scan if you have money to actually buy additional stocks with. Right. And so that whole process from downloading the data that takes a few minutes, then it's checking the open trades and you know, that's can take, depending on how many trades you have, if you're trading with a smaller account of like a few thousand dollars, and you might only have three or four, but if you're trading with a lot more than you might have like 20 or 25 stocks, right?

So you check your open positions, that'll take you again. It'll take you like three to four minutes, probably less than that. If you have four positions or it might take you like 10 to 15, if you have like 20 to 25 positions check, if you have, if you need to exit any, or if you have exited any with current stock losses that are in the market with your broker, and then you run the trading scan, if you have funds and then you place your orders in your broker, if you need to buy any stocks and that's it. And so that whole process takes 20 to 30 minutes. If you have only a few positions and no funds, it'll literally take you probably less than 10 minutes, maybe even five minutes, that whole process from start to finish, um, at the end of the day. So that means that you you've used all of the things we've spoken about.

You've used the data feed. So you've got, you've downloaded the data. That was the final one we talked about. That's one, you've used your computer, obviously because the trading software is on it. So that's two and three and you've used your broker that's number four. So obviously then two, the money component comes into it. And that's just based on how much you're starting with and how much you continue to add. So that whole process is actually pretty fast. It's not about you sitting in front of the computer for like hours on end and watching the markets and whatever you might be in positions for days, you might be in positions for weeks. You might be in positions for months, and you might exit a bunch of positions all in one week, but that is really up to the trading system that you implement. You might have a longer term trading strategy.

You might have a shorter term trading strategy. You might have two of them. You might try different markets. You might have, you know, a trading strategy that only is activated in a bear market. For example, you might trade only a long-term bull market trend following strategy. It really does come down to the strategy or the system trading system that suits you and your personality and you as a trader and what you want. Here's one for you. You can also trade a system that is weekly. So instead of doing this, that process that I just spoke through once a day, and obviously you would only do this every day, the market is open. So this is say you were just trading the U S market. You would only do that five times a week, Monday to Friday, if you are trading, um, both the U S and the UK market, you would do that six times a week because of, um, uh, time zone changes.

It probably crosses, oh, I'm pretty sure it crosses over. Um, meaning each market is still only open Monday to Friday, five days a week, but because the time zone differences on a S uh, like on a Saturday, that means that the Friday market is still open and vice versa and same for Australia. So it means you only have to do it not in every single day of the week, or you can also trade a system that is weekly, meaning you do it once a week. So I'm going to talk more about the different systems and the information and how to get access to some of these kinds of things that are already done for you when I do the PPP trading party. So make sure you're registered, and I hope to see you come to that. And particularly if I want you to come live, because I want you to ask as many possible questions as you can. And as you want, obviously you'll get way more learning if you're there live. And you're asking those kinds of questions, because there's so much to cover. If you haven't already guessed, all right, head to Ms. wildly.com/trading to register for that. And I hope to see you now.

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