First Trade was very lucky I think I made 10,000 in one trade. Really? Yeah. I think I with $25,000 Yeah and and the next few weeks instantly 50% down. And this is all your first year of trading or how long dides it take for you to eventually become profitable? 6 months, 6 months? Yeah, 6 months.

Uh I Think the fastest approach to trading is to look at other people's mistakes because what whatever mistakes they made I might run into it later. Um, everybody know that I made 6 million on the on the first day, I made three M 3.5 million on the following day and I made a 9 or 3 million on the following day after the 3.5 million. So that week total, I made 17 million I think oh my God I don't ever focus on how much money that was generated by trading I want to perfect the system Okay, make sure it hits the maximum performance of all the patterns that I track once I reach 85% I'm creating trading Hi! Have you ever wondered how much money a retail Trader can make in a single trading day? In this episode, we have a very special guest The Man of Mystery Stephen Ducks Ducks is a verified Trader and he holds a record for the highest P&l in a single trading day in 2022, making over $6 million trading dwac in one day. I Personally have a lot of respect for Ducks.

He's very young, but he has matured as a Trader and master the Arts of trading penny stocks using psychology and statistics and extreme discipline. In this video, you're going to learn Steven's approach to trading smoke cap stocks using Trader psychology, Steven's various methods of tracking statistics, how to recognize patterns and capture High profitability trades, and how to avoid over trading. Make sure to hit the like button and join me today for a very insightful conversation with Steven Ducks! Welcome to the humble Traders Podcast Stephen Hello you are a really famous Trader on Twitter and YouTube and you are really famously known for that I Think was the Dwac where you make six. Was it $6 million in one day? Yeah, right.

So I think a lot of people know you for that and of course a lot of other profits you've had over the years. If we could tell audience how this year treating you so far and how are you adjusting to the market, this year is not as good as 2021 2022. The beginning of the year was okay. Uh, since ever since uh May and June I mean the later this year is not very active.

Yeah, and uh, this year's Market has been uh has been okay, uh, profitable and not making as aggressive as money as uh compared to 2021. Uh, still up in the seven figures. Um, and the lower seven figures. okay, not crazy high, approaching eight figures.

Um, but volume has gone down about 90% 80% compared to 2021 and 2022. The market is become much more competitive compared to the last two years, especially on the short side. Um, as we know that shorting has 90% or or has much higher winning percentage compared to buying, so majority of the money are H or held by shorts Setters and so if Shorts Setters are trying to Pile in into a ticker and there's not many Longs in there, so there. uh, first short Setter cover and second short Setter cover above that so it will cause a massive parabolic uh as we saw in like Top Mhm.

So from my understanding is you're predominantly a short seller, right? Okay, I do want to ask you a little bit later on about like specific short strategies you're doing and how you're using your statistics to track those High odds as you call it. Um, but that's take a step back. How did you get into trading in the first place and how many years have you been trading now I got into trading when I was 19. So the the freshman year of college, how did I get into trading you in school? Yes, uh I don't have a very good family history but uh okay uh so at that time my mom and dad are going through divorce.

um so I was just trying to solve some of the financial pressure from my from my mom's side and uh I used my uh tuitions as my base money to trade which is about which is 25,000 Yeah so um first of all, I I think at the very beginning I lost half of it and then then I borrow some money from my friends. started again you have rich friends. not rich friends. but I had to pay interest on that money.

So so okay, so um, but uh and they started again. uh that's where I went from I think 27,000 to 900,000 first year, then uh, second year was 2.7 million. third was I mean goes up from there. So so you were trading with your tuition money and then eventually once you start making money is that how you paid for your school for the rest of the college or did you drop out of college I mean still in school and pay for the tuition of whatever the money I made from Trading Okay and what was your major? uh, engineering? Oh I was going to guess either like mathematics or engineering? uh, chemical engineering chemical? Okay yeah, so what what did you aspire to be at the time when you were still going through school? uh I mean I like engineering I like very statistic based.

so a major and I chose engineering and the reason why I went to engineering I want to more Focus down into nanotechnology, nanot technology. Yeah okay, uh at that time we're focused on nanot tubes I think but uh, then um I shift my focus more into trading afterwards. So okay, so how did you I understand you were trying to make some money to help out with a family. So why Trad in stocks and how did you discover stock trading in the first place? Okay so yeah so um well first of all, 25,000 is not a lot of money.

First of all, as an international students, we don't I mean our commun communication skills are not very good compared to the the natives people in here. Oh like in terms of English in ter yeah in terms of English So trying to do the the talk businesses or like real estate you have to communicate with other people so that's you know. a big I say shortage for for some people like us and we also came in as a F1 student. So you can't really have a job but only in campus.

you only can have a job in campus. Okay yeah, I remember and you're making about like $6 an hour or $7 an hour so that's not efficient. Um and with 20 5,000 I look through pretty much all of the Uh industry and the only one you can make money is trading to um uh using small amount of capital to get over 1,000% or 10,000% return. That's where I looked into it and I see a lot of potential into it but I also see a lot of risk so just let need to take a bit.

I I I was also international student in the state I went to school school in Florida uhhuh so at the time I was I discovered trading around the last year so senior year but I didn't actually trade because I didn't have the money but I was like trying to save up from like my $7 an hour like on campus job but that helped me save us so that brought back some good memories. Yeah yeah I mean yeah. similar. similar to boat.

So you found out about trading stocks. mhm. Did you start with like with day trading right away or did you invest or you know people do like a dividend investing or swing trading or did you just dive into the wild wild west of day trading? Not. oh pretty much straightforward into day trading.

The first ticket I traded was ETF I think it was okay. uvxy I mean it's ETF but uh, that's the first trade made $20 but uh, good job and uh I mean there's bunch of trading histories that have I think ad that straight Pretty pretty much straightforward into day trading and uh, the first trade was very lucky I think I made 10,000 in one trade. Really? yeah I think I with $25,000 Yeah oh okay. I think I had a uh I think a $3,000 position.

Okay so tiger went like 300% then I made 10,000 I think the trading could be that easy. So oh okay and and the next few weeks instantly 50% down. I mean TR on some stupid tickers and over trading. Were you following alerts at first or did you actually like try to learn strategies and trade? I don't follow alerts and I I uh I I want to learn strategies because I Look in this industry a little bit differently because I see well in trading industry.

If you if you make money, somebody else is losing money right? So zero some game. Yeah Very simple concept. Yeah so um that means if you're following alerts a lot of people going into one directions that means the if 90% people in the trading industry are losing money yeah 10 10% are making money. that means uh, majority of the you know you have to go opposite of the what the majority go.

So I start going the opposite Sid of shorting alerts. Oh so you start out a contrarian from like very early on when people are like pumping what those alerts you were shorting them I'm shorting them yeah oh you fig that. I was super early Yeah I mean very beginning of my career I started making like 20% 30% again I mean then you start not that start not work doesn't Well you start to not work as well because okay um my size is getting bigger and there's not many people chasing alerts anymore and the stock becomes very liquid so it's hard to get out. Uh but uh that's where my first I would say 50,000 40,000 Oh so you started trading pretty big size, almost right away, then right cuz you mentioned you were taking $3,000 3,000 shares, $3,000 worth of positions.

Yeah, okay I guess you were trading with a 25 $27,000 account to avoid PDT Yeah and how often were you trading since you didn't have the Restriction of PDT Were you still trading every day? Not trading every day? Okay, um, but when there's a play I'm in there so it's still overtrading. but uh, I think I was making about four to five trades a week and did you dive into full-time trading or were you still I Guess you were you managing the classwork and trading on the site? Yes, yes, pretty much. TR how did you find the schedule? then I mean not I mean look at the phone during class I mean other other than the exam, but you know, just look at the phone during the class. uh, using TDM trade and not anything.

Oh okay, and how did that work out? Trading on the phone does not work very very well. Okay, slow and uh. first of all, it's slow. Second, it's I mean take a while to put in limit orders and limit orders.

Yeah yeah, so it's not quick at all. It was sometimes you miss I miss couple thousand dollars just just trying to get out at one point and 10 second later you know we're 10% down and this is all your first year of trading or how long did it take for you to eventually become profitable. 6 months, 6 months? Yeah, 6 months Mhm. That's really, really fast.

Uh yes, because uh I look at so I think the fastest approach to trading is to look at other people's mistakes because what whatever mistakes they made I might run into it later. Defitely so I look through Gran's entire trading record yeah and I think was uh, on the Tim side of the student they have their record on U on profit I think was a very early stage of trading and I was also looking at uh, investor underground and other people you know people on Twitter they talk about their trading and poster profits I I don't typically look at their wins I only look at losses and I want to be able to even though they don't post the entry and exit chart but I want to be able to guess where where they short it is I see where where they got, uh, where they exited or uh, maybe they made a huge M mistake they continued to add and eventually got BL out the position. So all those mistakes are very valuable experience for me. So that's when I become very, uh, profitable because I actively avoiding those mistakes.

Yeah you you, you're really young, but you're also really wise. A lot of people who start out trading they want to see like the flashy Pnls a big profit, but you were looking the opposite. You're looking at people's losses and looking at learning from their mistakes. Yeah, um and also I know that there's three base factors.

First of all is human mistakes. That's number one you have to fix. Okay, number two is Um, patterns come from psychology because if you're making money, that means other people are making mistakes and you know how stock it really is. It's really emotional driven.

Yeah, so psychology is very plays very big part of. uh, in trading, so understanding the people that's going the opposite directions. or um I mean they're behind the computer clicking the Button making mistakes. so you have to understand their psychology first.

and third, you have to use your statistics Theory to back up the psychology side. Um, then with those three combined then it's instantly profitable. So but it take it take a while. take a while to get those three thing lined up together.

How long do that take you? 6 months? Really? you? you everything clicked just like that in six months? Yeah. Oh wow. So what kind of? Statistics I Know you mentioned that earlier in the beginning? How what? What were you tracking to realize? Okay I need to focus on this one strategy or these two strategy. What kind of specific criterias were you looking at? First of all, I mean when I went, went in there, it's it's A.

There's a lot of stuff to track you can't you? most people go in with Okay, well there's a lot of stuff I have no idea what to track right? So you start narrow stuff down. Let's say we have a ticker that's 20 million market cap 3 million float. uh very similar action. put them together how much they traded, uh to see there's any similar actions or similar Behavior or if it's going parabolic or start going M midday or Gap up in the pre market.

Uh so pretty much you want to categorize very similar Market very similar Mark uh uh float. Um, and the gap of percentages? uh, categorize them into one section. Try to find the conclusion of if volume changed what happened, if flow changed what happened so you you kind of put a fixed criteria on All U pretty much everything and uh, there's only one factor that's different I see so you will be able to kind of tell. Okay next time.

similar flow, similar market cap if the volume is different I'm supposed to do this I see so you need a massive amount of Statistics to find uh I know I have I think at beginning I 25 sections Okay with market cap between 0 to 10 million FL between 0 to one uh Gap up over 50% or market cap between 0 to to 20 or float between 1 to three. See, this time is different but with gap up percentage with 50% so you only have the flow difference I see and once you only have the flow difference uh with very similar volume throughout the day so you can kind of see what. How much did the spiking percentage changed? Oh so that's one method of how to figure out what to track. Okay let me sum up that really quick cuz you just mentioned a lot of things I Want to make sure audience understand your method ex.

the first method you mentioned really clearly. So essentially you're trying to find the first method that say you narrow down let's say 10 stocks that you know are low flows. They have similar volume and then you look at different categories like the volume, pre-market volume you know percentage Spike after open and you look at what they have in common. Yeah, and what's the outlier criteria? Whether it be super low float or super high volume that cost potentially have caused that one stock to Stand Out Among the most? Yes, Oh okay, got it.

Okay, uh. first criteria and second is you second way to be able to track uh, statistics is you want to focus on volume specifically because people are behind computers trading the tickers right? So every shares they trade means one shares and well, of course there's Alos and H found involved in there. But you have to think there's one thing that the Hedge found that won't do is they take the entire the flow. So basically they buy the entire flow.

Okay and first of all they have they have to file to the SEC. That's very that's you know, not very convenient. That's what they what they don't want to do. And second, you want to.

If you want to pump the stock, you don't want to own the entire flow because eventually once you sell, you're basically uh, playing with yourself. Yeah, there's no one else to sell to, There's nobody else to sell. You need the liquidity so you do not want to occupy the entire floor you want to retail to go in there. Yeah, and pump the stock up.

And they sell into the retails and retails loses money. So once you track enough multi- rers, there's actually a very, uh, similar number that how much money can retail put into a ticker Okay, based on float or market cap based on market cap. Okay, yeah so uh, that's another way to track statistics based on how to really short into multi owners. So in that case that say, hypothetically speaking, your second method just mentioned.

let's say based um I don't know 50 mil market cap retail can only. let's say from that tracking retail can only get up to you know 10% of that market cap and then that's the ideal time to short. Uh yes, yes, but more more accurately. Uh, do you want to be more accurate is you want to use the volume uh times the average traded price on that day? If it meets the threshold of how much money that retail can pour into stock, that means stock will go down next day.

Uh, because basically the stock has reached the maximum threshold that retail can push up to the maximum maximum percentage? Yeah, yes. Oh interesting. I never thought of that way or dollar amount there. There's a lot of uh I can go Uh, so I I'll do three.

Um, there's another way to track statistics. mean uh, which I personally use which will be volume comparison is that you want to. Um, so there's three different uh uh categories you want to do. You want to track? First of all, is uh, to be able to correctly track in resistance? Okay, and lot of people see.

Okay, well there's a resistance that traded 50 million volume on a price of three and uh, next time I want to short against with that $3 resistance, right? Okay, and so let's see. For example, let's say uh, 50 million Vol That means five people. Let's say five people bought stock at three two mon later stock instantly dumped 90% Everybody wants to get out because well, if I get out, I'll be down %. What's the point of me selling right now since I'm already down 90% So the first reaction that when stock pushes back two three, right, everybody wants to wants to sell.

Okay, that's their instant reaction. That's human psychology right there. So and but here comes a problem because we're dealing with low floats. So if the stock only have 3 million float and has 50 million volume in there, and that doesn't mean that there's 5050 million resistance in there cuz there's only 3 milon volume, 3 million flow.

Sorry. Okay, from previous let's say uh, chart the resistance from like weeks ago. Yes, doesn't have that much volume is what you're saying. no, doesn't It doesn't have the flow in there, doesn't have 1550 million flow.

Okay, so if you want to, let's say one one. Um, every share is a back holder. 15 million shares means 15 million back holder. But if there's a 15 million shares, only 3 million flow, there's only 3 million back coders.

Okay, does that make sense? That makes sense. Yeah, so uh, next time when you try to short into resistance, that's the statistics You want to track because you are shorting a 50 million resistance, but there's only 3 million backers in there. Okay, so there's a very possible chance that stock can push through that resistance because there's only 3 million flow. Oh I See So a lot of people trying to just short based on how much volume uh, that? that's against the 15 million.

That's a very interesting statistics to track. and um, it you can. Once you track that statistics, you can help you avoid a lot of traps traps see. So I think the first two method you mentioned helps you find a potential short entry.

The third one helps you avoid getting squeezed. Yes, Okay, yeah. oh thank you for sharing that there's uh, there's many, many, many uh uh stuff that I I mean I came up in the last couple years. What about you? Are you tracking any kinds of stats yourself? Make sure to share with other Traders Down below is that: Do you think that's the reason why you pretty much stick with small caps? Cuz when it comes to large cap stocks, there's a lot, A lot less of these in inefficiencies, right? And a lot of the patterns.

the stats you track. do they apply to other kinds of stocks? No, they don't. Uh, the limitation is uh, well, except 2021. But the limitation is you cannot go beyond market cap that's above 300 million initial initial market cap.

So if the stock starts to spike starting with 300 million market cap then doesn't work. Okay, but start less than 300 million. let's say started around 100 million, then goes all the way to couple billion. It works.

Oh so you're talking about let's say the first day of the run where the stock already started from. Yes, Oh so anything about 300 mil that doesn't count that still categorize a small cap, right? Yes, still categorize, but you just won't trade it I just won't trade it. Oh so how you pick your stocks to trade is by volume and the market cap has to be below 300 mil? Yes. Oh okay, and what kind of volume are you looking for when you are scanning for stocks to trade each morning? Uh, really depends I mean volume highest.

the higher, the higher the better. Okay, Uh, I mean I Do avoid first. Green Day Very crowded volume. Okay, avoid that type of tickers.

Uh, but once they exhaust their volume, then uh, higher the volume the better? Yeah, Okay, what about percentage? Gapper percentage? Um, is there a point of like too high or like too low. If it gaps above 200 I would say oh well. It's probably more ridiculous when it's gaps above like 500% then it looks a little bit fishy to me. Um, but the ideal range should be between 100 to 150, 100 to 170? Yeah.

percent percent. Oh okay, like it has to have gapped up that much for you to be interested in trading them. Not interested, but more comfortable trading. Okay, I Gap up 500% I'm still interested in trading them I'm just want to be a little bit cautious on how to size in.

Okay, yeah. so I I Get that You know 100% gainers are very normal in 2020 and 21. But how what about in 2022 and 23? How are you selecting stocks? Then do you change your criteria? There's still gappers that's above. Um, 20? 100% Okay, very few? Yeah, very very.

Uh, we have. Let's see. Mmv, that's one. Mhm.

When kep 200% then? um yeah, not many. We had VC IG and all those biotechs that only gapped up like 80% So yeah, above 100% is my highest winning percentage. Okay, less than 70% if it doesn't have a resistance and on first screen day. And it's a Biotech? Yeah, that's that's a noo for.

Oh so you also don't want to trade, Try to avoid biotechs. Yeah yeah. okay. Is there a reason why.

Oh, every time when I trade Biotch I lose I mean it's and ATT Track statistics on I Still lose. So I've been fighting Biotch for many years now and uh, it's sometimes you win, sometimes you lose, but by the end of the day you lose money, right? and and uh, doesn't really matter. We are going short we going along. Yeah, Biotches are very hard to predict.

They do not follow small cap stati statistics at all. Oh interesting. So not only do you track those individual stocks or sectors or like the individual stock criteria, you also track your own performance. Trading these stocks.

Yeah. I track everything. Yes, okay, how much the stock will drop to at what percentage to what scent I can get to that sometimes? Yeah, that's how I' be able to bottom tick and top tick a ticket. Oh so what's like the a general formula you use to find the the top tick and the bottom tick.

And there's no general formula. It's based on different patterns. Okay, yeah, every pattern has its own top tick and bottom tick. Tick? Uh point.

Oh okay, let's talk about your F favorite pattern. Do you have one right now? Uh, favorite pattern? probably This year it's first red day. okay, um. highest they can drop other than IP Other than IPO IPO will be a little bit different.

Uh, but not IPO multi owners. The percentage that can drop market cap that's initially below 100 million Flow below 5 million under 10 million. That work too. Uh, the Ne: The average fading percentage for first red day is negative 26% Average Okay, second day 15% and the time typically drops to is 10:30 So once you once reaches okay 10:30 a.m.

that's typically the lowest point. Oh, after the first red day. So typically you want to hold it overnight with a gap down next day, hold on until 10:30 then you cover it. Yeah, Okay, so these are ways that's like for this particular pattern.

The first red day, That's how you find your exit. Yeah, how do you find your entry Now entry is the method that I talked about. Uh, maximum volume on retail or maximum dollar being traded on the retails. Oh I See do is that your favorite pattern this year Has that? How How is that one pattern been performing for you this year? It's still perform great.

It just the statistics keeps changing. There's the that's flowing in the retail Market keeps changing Yeah uh in 2021 was 1 billion Inay mhm in I think like Htz was something like that Herz yeah yeah I mean not. Herz is a billion dollar cap so it's doesn't count that doesn't count but for lower cap the it's 1 billion. Okay and for 2023, it's only 200 million so we can see that how much you dropped w a huge drop.

So we just talk about your favorite pattern. What's your your biggest win ever on that specific pattern and your biggest loss. We can cover that the first red day or I guess what? The most memorable winner and the most memorable loser that You' ever had. Winner! It's Dwac.

Dwac m Um everybody know that I made 6 million on the on the first day I made three 3.5 million on the following day and that 9 3 million on the following day after the 3.5 million. So that week total I made 17 million I think oh my God uh or from shorting that stock right? or from shorting DW and there's another ticket I followed with it I forgot what's the name It was a sympathy play. Okay I went from I think went from Uh 40. no it was around 52 I showed it around 48 covered at 28.

so it's it was a sympathy play of Dwac. Okay, uh uh. the most memorable loss? Yes I do remember one. it was a Biotech.

uh oh okay. 1 minut Flo 13 million flow uh I think it didm the uh maximum retail number. okay and uh, you squeezed above it typically I size in pretty big once it once uh it meets the retail number I see because that's high winning percentage Yeah that's when the com losses and the liquidity was not very great. so so so and it took a long time to exit.

That's why. Okay I think the highest was a million dollar loss. Yeah 1 million. Okay, now that's why you kind of crossed out Biotech from your trading list forever.

Blacklist Now yeah yeah Black List Oh okay I mean up to dat has still I don't know because biotechs like they have, they they do Gap very often they Gap 100% 200% sometimes and when when there is no play going on like you know in the last couple months and everybody has attempt to trade that and everybody tempting. Yeah, everybody's getting squeezed. So um, um, to be a very consistent profitable Trader Yeah to be to stay alive in this industry, you have to be super disciplined. So yeah, yeah, I noticed that you don't trade every day like most Traders do.

How How often do you actually Place trades in a given month? Uh, 3 to five or 3 to a week? Oh no, not three to five in in the recent months. Three three trades to four trades a month. Okay, yeah. typically one trade a week.

Oh wow, sometimes not even a trade. Yeah, do you believe in well, do you practice what? Um is also a term that we recently learned from Uh. Lens Bret Brin Sorry, keep on. Uh, Mispronouncing his name, he's mentioned this term called exponential bet sizing.

Basically, do you size the same across all your different patterns or do you have certain ones like your favorite one that you would use more risk on? Oh yeah, that's compound compound growth is. Um so uh, I have all the patterns winning percentage down Mhm. Some patterns has 70% some some some patterns has 80% 90% The higher the winning percentage is. that means bigger size for me.

Okay, and how do you allocate that? Let's say the basic average is that's just use for a simple simple number a thousand. So then that's say that's the average, right? Let's say anything. with 60% win rate, you use an average of $1,000 risk. And how would you use that for your Um 90% win rate or your 80% win rate? Um, patterns like, what? what number would it be 10x 10x? Oh okay, yeah.

so if so average I'm using 100K 200k positions then and yeah, the best it would be 2 million. Highest that size was 17 million was crazy. 17 million shares traded not a$ 17 million position. Oh okay, and how do you scale in because I Understand once you're starting take taking these like massive sizes, how do you scale into your position? Uh, how do you scale in Parts by parts and has to be under 1% of the volume? Yeah yeah.

Okay so let's say for example, for a stock, your max size will be. Let's say in this example, 100,000 shares and you just divide it up into 10,000 share Lots or maybe 20,000 share Lots 50 50. Yeah, the bigger the positions, Maybe you have to break down a little bit more, but yeah, under $1 million, it should be two. Okay, two entries.

Oh okay, maybe three. Yeah, do you think new Traders should learn about scaling as well? Or they should do one entry. one exit, one entry, one exit. Oh, it's the most efficient is one one enter and one exit.

one go. Oh okay so you never started with like you know, let's say divide it into two halves and then just add and add and then two exits. Uh, sometimes you will turn into add and add and add and blow up. Oh okay yeah, but it happens a lot to a lot to Traders.

Oh yeah. Well basically in that case, they're not adding to Winners they're adding aaging down to a loser. Yeah, a lot of people think that, uh, add into winners carut losses into losers I Disagree with that. You have to know exactly where you enter, exactly where you want to exit.

and before you enter the trade, you should know that how much you will will lose if you fail. So we mentioned that about your most memorable loss. So when you take these big losses, is it usually from slippage or or was everything calculated beforehand? Everything calculated Really? Okay I Already know that million loss was coming. Oh okay, because it's a biotech and you were sizing in, that is your A+ setup.

Yeah, so you willing to risk a bit more? Yeah, okay I see you just shared some really good tips for a lot of the new be Traders Basically you recommend one entry in one exit out. Yeah, yeah, don't over complicate this. Uh, maybe two. maximum two.

but I recommend one in and one exit. Oh okay and we also talked about statistics and tracking. Do you think beginners should be tracking like you are? or they should simplify things Or how how would you recommend them to approach tracking? Well, first of all, for people that come to trading, you love trading I Love trading I Love to win. Yeah people, some people come in for trading that they want to make money.

So either way you want, uh, you want to win. So you whatever do whatever that makes you want to win I can guarantee you that tracking statistics will make you win more. So okay, uh I recommend track as much as you can. uh do the method that I recommend the first method which finding out the outliers.

okay um and to see what's the uh Factor that actually affect the stock push uh, fading percentages or pushing percentages? Um, then you will start finding your entry from there. So I think a lot of beginners also suffer from struggle with overtrading and how do you think they should? Is there any way in which they can utilize tracking statistics and help them avoid? You know, overtrading these like random setups. Yes, there there's one way. I Found out I was very helpful and they should be The golden tips.

Uh for not making stupid mistakes on over trading. Okay well I to be honest I Over trade Uh I see I even over trade I Sometimes you know hate myself over trades because you know nobody wants to make stupid mistakes and wasting money on on. you know something that you shouldn't do. Everybody does I Don't think there's as long as you're not an algo, everybody make overtrading mistakes.

So uh. first method which will be the most important one is you want to track. Well, first of all, find your pattern, Find out the statistics, Find out the average winning percentage act. Find out.

uh, the average, um, profitable percentages. So let's say this pattern average profit. You can profit around 15% 20% Okay, find out the frequency. how many times happens a year generate a sheet that using a fixed size.

So let's say every time when this pattern appears I'm going to size in $5,000 I'm going to make $1,000 on the trade. Uh, this pattern happens 50 50 times a year, 60 times a year you can generate a number MH Uh, how much you can make a year? That's your expected return. That's true. expected return.

Okay, so every time when you sit in front of the computer in the morning every day, look at that number first. Okay, look at it first, right? this is how much I'm gonna make a year. So I'm not gonna make a stupid mistakes here today. I See and it works very well.

Oh okay. Okay, let me repeat that one more time. So you basically find out for each individuals, they should find their own strategy and find the average winning percentage and their average return Like you know, 20% return? whatever. And they put in the account size and use that the account exposure and you have to calculate how much potentially they can make in a year After learning about how frequent that pattern happens.

Yes, and use that number. be it 100,000 or 50,000 Use that number as an inspiration to stay disciplined and stick with that strategy. Yeah, that's amazing I Never heard of this this method I mean I came up with myself because I was over trading. Yeah Oh and that did help you focus on like your A+ strategy.

Yeah, always focus on long-term Once you look at a number it make automatically trans transition your mind from shortterm to longterm. I Think what a lot of people do is like they scalp around. when there's no like perfect strategy, they scalp around to make a $50 here and there and they forget about the big picture here. I I'll share a story.

Um, so overtrading. Uh, in the first two years I was making 900,000 a year and I think the second year was 2.7 million and every time every year I'll go into my uh account statement and look at what I traded. What? What? I'm supposed to trade. What? I'm not supposed to trade.

Okay, now there's some losses that I'm supposed to lose. That's okay. yeah, but you you have to recognize what you are supposed to lose, what you are not supposed to lose. So once I filtered what I'm not supposed to do is I can make 4X of the money that I made Oh wow that year.

So basically that's where I started to do the method that I yeah, wow and like especially and it's 4X it's not even something equivalent like one to one. it's one to four. Yeah. and also I see it as a challenge because um so basically I the method I use for all the patterns they will generate a number.

Let's say are you supposed to make 20 million this year? Yeah, every time I can only hit 30% High highest I hit was 37. Okay, not even close to 80% to 90% to the full maximum performance that supposed to do as the perfect robot. So yeah, so is that what you're trying to aim for? You're trying to reach a closer to closer to that 100% potential. Yes and every time I see 30% 30, 37% I I Keep I have a really close friend I Talk about trading.

but I keep calling myself garbage Trader because I can only hit 30, 30, 37% Yeah, in a way you kind of treat trading as a game as well. Oh yeah, yeah, yeah, it's a game. Now that you made so much money. does the meaning of do you think money loses? its meaning, doesn't lose, lose, its meaning it.

Uh I don't ever focus on how much money that was generated by trading. Okay, now it is I'll say not the priority. it is the first. first will be the the thing that I told you is I want to perfect the system? Yeah, um I want to be able to ttic bot and tick.

Okay, make sure it hits the maximum performance of all the patterns that I track and if I reach that goal I had I had myself a goal for for myself once I reach 85% I'm quitting trading Really? Yeah, so so so. but it was never 85% but I think you might eventually get there I don't think so really I don't think so. Last year you did 30% this year, you say you're doing 37. No, the highest highest was 37 in 2021.

Oh okay. so in a way, if if you never get to 80% you never quit trading as well. No no okay I don't think I'll ever ever get there. I mean last year was uh, that this year was only 20% Even worse last year was last year was sick.

It doesn't count. Yeah 2022 was like 29. So it's is that kind of what keeps you going as well waking up in the morning each day cuz you're you're here on the West Coast right? What time do you wake up 5:30 Okay, 5 to 5:30 Uhhuh And then you like scam for stocks and what what's your routine like after you wake up 5:30 what's your routine? Uh, look at that stocks if there's nothing, play some video games. Okay, it's I don't want to look, stay there and stare at the stocks and you know thinking about some overtrading strategy.

So yeah, um yeah, if it fits the criteria, fits the criteria. If it doesn't, you know, have some fun play some video games. Do you ever revisit and look at the scanner midday and see if there's opportunities or like if you don't see anything by 6:30 that's it for the day. Uh, no trade after 1200? That's okay.

no trade after 11: suppose and that's 11:00 A.m. Uh West Coast time or 11:00 A.m. Market time Market time Market time. Okay, 1130 a.m.

Oh okay, what do you do for fun Sten Do you look at spreadsheets and math and numbers for fun on your downtime? Oh I play a lot of video games. Oh okay yeah um I played Starcraft 2 uh for many years. Okay and before I I was mainly focused in trading I got into a uh World Series Championship oh you tra trading uh not trading Pro playing pro not playing pro but but uh my skill is approaching to Pro oh okay yeah I got to highest I got to was round of 64 World Series Championship yeah but how come you didn't pursue it I didn't cuz trading makes more money that that's true. Well a lot of pro players they G Pro Gamers they make a lot of money too.

but you know, like they get paid at like 50 mil like the ones who win. Yes well I mean most of it. U it's not the price they uh they promote either they they Market they're the marketer of their game. so oh they get paid that way.

Oh okay I mean that that game gives me a lot of benefits. Uh, first of all is psychology. Second is hand speed. Oh clicking buttons clicking buttons I will be able to borrow like shares within point for 30 seconds.

You can have hot Keys set for that too I know but like you back in the days manually. Yes I can do very quickly. Okay yeah so Starcraft got you to think about to to train I guess your mouse click speed. Yeah and and you mentioned something about trader psychology with is buyers or seller? How how does that game help you start thinking about it that way.

The game itself is very competitive. It's one one versus one. So I have an opponent that's on the opposite on the opposite of my side. Yeah and first of all, you have to scout, have to guess his strategy and according to his plan, you have to make defense defense plan.

If his plan changes and you got it around then you lose. So it's basically a counter psychology game back and forth back and forth until you win. Yeah so and and also uh, it cor it what you are thinking with your hand, you don't misclick, you don't do anything. Uh, you know if you make a mistake mistake on misclicking, you lose the game too.

Yeah so um and it's always high focus during the high focus moment you have, you have to also think about the counter strategy for from for other people and um I think it's very simil to trading very intense moments and also be able to think clearly, be calm, figure out you know you don't First of all, you don't misclick so can figure out what they're thinking to to be able to build a counter strategy against them. So so you kind of have to think about their potential couple steps after and think about if he does that, then what are you going to do? Yes, the the I forgot who told me this but trading is basically a bunch of if and then statements like if stock ABC does this, then this should happen. Yeah, is that kind of how you kind of start thinking about trading? Uh yes, yeah. I know you used to live in Ohio Is there a reason you decide to move to California to pay more taxes, not pay more taxes? But uh, there's better food here that's for sure.

Yeah, um. a love food. Uh I don't like waking up earlier but um, better weather I I don't like cold weather I think I told you I hate cold weathers. Um and uh yeah, that's pretty much it.

That's pretty much it and we have a different life experience I don't I'm not planning to live in California forever. Okay, so oh, were were some of your family out here as well? No no, just you I have a brother Uh, when when it's currently going to school in uh, used to go to school in Florida now in Connecticut Oh okay. older or younger brother younger 10 years younger? Oh okay, yeah. so you're the eldest of the family.

Do do you think he look up to you as an example? Oh yes he does. Yeah, yeah. would you want him to get into trading? No. I asked people that a lot A lot of people.

uh I mean I believe I to I taught a lot of students I believe you also taught a lot of students. Trading is not for any everyone. I believe that too. Yeah, you have to have that very very good personalities.

That's number one. Number two: Be able to uh, handle trading. In a different perspective. A lot of people go into trading with the gambling mindset.

Yeah, yeah, I mean every time you gamble, every time you lose, it's that's the rule. Yeah, speaking of gambling, you're Chinese were both Asian stocks. Like trading stocks or investing in stocks or even research searching stocks in. Asia There's like a negative stigma was was your family ever concerned about what you're doing back then and you my dad was my mom wasn't okay.

Um, because whatever they experienced early in their age, they don't want their child to go through the same thing. They also suine stocks. Uh, do they? Yeah, stocks is something that they don't want their child to go through because they took a lot massive loss in their earlier age. So um, that's how parents teach their student.

Oh, teach their child to. You know, go through their life. I mean not just stocks. If they, uh, you know, made some mistakes in any other industry, they wouldn't want their child to go through that.

Yeah, same again. Do you think they're proud of what you've accomplished? Uh yes, yes and no no it's I did not beat my own game Yes is uh um of uh I mean have made some histories trading as a retail Traders MH uh highest profitable oh highest p in one day I guess yeah uh probably throughout the year too. Uh but uh yeah do you think if I know you're doing this for the game Now if if I say I I tell you today or starting tomorrow you trade you can trade. you see all those number but those numbers are not real money.

meaning you will make zero dollars whether you're up a million or down a million from Trading Would you still be trading? I I wouldn't payer trade Okay to be honest because first of all, uh I hate people calling me paper Traders At the very begin beginning of my trading career I was posting pinl on on twitters and everybody calling oh paper trading Paper trading oh I hated that and uh then I started posting my account statement. Here's my account statement you can go ask D or you can ask the owner of The Brokerage and uh and I mean they can verify if it's real or not. So then that's I mean I I I Don't like people calling me like oh, you're trading fake money so it's yeah but I I was asking cuz you treat trading as a game and you're just trying to get become a better Trader if you cannot make actual money from Trading Would you still wake up every day at 5:30 to scam for stocks to go through that routine of tracking executing your A+ strategies? Would you still be doing this game? I mean I will probably do a very similar game that makes money. Okay, so making money is still important I mean it's important.

Double win. Yeah. um where do you? What do you buy with your money? What do you place your all the profits? What do you do to diversify? diversify? Uh most recently, uh, you can buy T- bills. I mean very very save 5% Yeah um and I trade stocks and I don't I don't I mean I don't like long-term stocks I don't know why you don't Oh, because um I mean the most recent statistics on overall economy doesn't seem very good.

Okay, looks like there's a massive recession coming. Yeah and uh, we have all kinds of bubbles. Um so everything's a bubble now. Yep and there's going to be a large pullback.

So cash is Keen right now and okay, wait until the market drops and potentially buy some diff. Okay you. so you don't believe in real estate like watches like any alternative? Investments Uh, real estate goes as same as stocks long term. Oh okay.

I'm surprised cuz Chinese people usually like to buy real I Mean yes yes, I do like real estate but they don't perform as aggressive as okay as uh trading. So whatever you have available typically for for a method of trading is when I see a good play I wire money in and I trade and wire it out. Okay so this way you make sure that if you make a stupid mistake, you don't blow up your account. That's very smart actually.

and uh, as long as you trust your trading skills I would prefer cash. Oh okay, yeah, your approach is very similar. we we just talked to Tim Sykes the other day he has all his cash according to him in like a money market. he doesn't do any.

Investments no cars, no nothing. Yeah, do you invest in cars? H yeah I have a few cars but okay, they're not investing thing. Oh okay, they literally just buy them because for fun. What are your current life goals? Cuz you're so young, you're like 28, 27, 28 and you achieve so much what's next for you for Steven Ducks next is probably hedge fund.

Yeah okay, um and I saw a number that I could potentially make and in 2021 and I think I can get there once the market is back. of course. um, it's 200 million. So my goal is 200 million a year as a retail Trader or as a hedge fund Trader retail.

Okay, hedge fund. maybe a little bit different. Yeah I think hedge fund or the depends on how much money you have under assets under management. But uh yes.

Okay yeah. but do you think once you start a hedge fund or if you do, do you have to trade differently? Maybe I Don't know. Never never start the hedge funds so we'll see. Okay, that'll be very interesting.

Yeah yeah, uh. probably start small I Don't know. Hedge fund is a little bit different because you don't take you, don't take away all all the money that you make. Mhm.

It's Investor's money. It's Investor's money. So you are charging little bit of commissions and very small percentage of how much money that was made. Maybe it was not very.

Maybe it's not worth it. but it could be a good life experience. So you try that out. you're doing the this just for the game.

Now by by by when you do that. I Can I can tell other people I was a hedge fund manager? You can say that yeah but yeah. good life experience. Could try it out.

Thank you so much sharing with us all your tips and strategies. Where can people find you? Uh, they can find me at Steven Duxi Du.com Okay so where does ducks come from That's not your real last name right? It was my first three letters of my name. Du D Do do she show x I u x Oh oh they're missing the you Yeah oh show do show do she do x I A n do X yeah it's the first three letter of my name. Oh okay, do you like ducks? Interesting name I mean I think it kind of stuck I mean it doesn't doesn't bother me Yeah yeah, did somebody mispronounce and got stuck? is what? I mean Oh no no no Oh okay okay yeah and then ever since everybody called me dgs Yeah yeah well thank you Dougs for being here today and sharing so much with our audience.

I No problem if you enjoyed our conversation today and learned a lot from Steven Ducks Make sure to hit the like button down below and you can check out even more interviews with other. Pro Traders over here.