The first thing you really need to know and understand is that the algorithms control the stock market. The algorithms think you have to think like a criminal. Is that H The stock market works. Okay, please tell well I'm not saying everybody's a criminal.

don't get me in trouble. but what? I am and I'll give you a real secret about this place down here in the day. Okay, one of the most successful trades out of any trade that has ever taken place in this building. I Am here at a New York Stock Exchange today right here on the balcony today.

I'm going to visit a 40-year veteran trader who used to work on the floor of the New York Stock Exchange Over the last few decades, this Trader has worked at several major Financial organizations and witness the evolution of trading. Join me today to meet Richie Nasso in this video. You're going to learn how he got into the New York Stock Exchange his background and career through the evolution of trading, his experience working here at a New York Stock Exchange Pro tips about risk management, trading strategies including entries and exits for Traders today and even more tips about risk management Trader Psychology and discipline. So please join me today and make sure to smash the like button and that's go.

What's up? Traders I'm here in the New York Stock Exchange with Richie Nasso hey Richie how are you today? Wonderful! Shay Thank you so much for having me thank you if you could tell audience briefly uh, what kind of Trader are you and what did you used to do here on the New York Stock Exchange oh my God uh I mean coming back here brings out memories that you can't even imagine. Uh I walked into this building as a as a runner uh making $60 a week and uh, got myself into an area where I will humbly say uh I was one of the most powerful Traders down here I started my business trading One stock and that was IBM IBM just one stock One stock in the beginning. And to put that in perspective, uh IBM was 19.78% of the S&P 500. Yeah, today's biggest component is Apple at 4.78% So my customers uh, we controlled from One customer yeah, who happened to be Stevie Cohen the owner of the Mets from one customer I built that up to 30% of the volume a day and the most important stock emotionally and every other way that you can imagine.

And the trading experience from that yeah is incredible. And how many years were you working on the floor here? Well I mean I started on the floor and I I'm almost embarrassed to say this. in 1965 making $60 a week you know and so I spent I was here to 2,000 Okay, and uh, you know in between that I started two broker dealers open up an office in London open up an office in Switzerland and C to in I did not have a retail client and C to the largest institutions in the world. And what was the largest order you executed in one day? Oh my God.

Well I executed the first program trade orders in the history of the New York Stock Exchange and there was uh, 10 million shares involved in that. Oh wow at April 19th 1983 if you want to put that in perspective. Wow. okay uh, you know I had 5 million shares of every S&P name to buy Market on close and of course the other side of the trade added up to almost 10 million shares.

Oh and what? what? What's your education background? Did you have any former education in Um in finance? I Guess no I was just a kid that grew up in a very tough neighborhood in New York City and uh, had a you know gambled on anything my whole life. basically. So my my background is high school I graduated high school and and that's it. That's the end of my background.

my gut feel yeah and how my how my being took to the gambling aspect of this place was extremely important. Yeah to be able to be ambidextrous and have 10 or 20 orders in my hand at every different level? Um, really played out very very well for me. As crazy and as basic basic as it may s, it was extremely important for what I developed. Yeah, tell us a little bit about what your routine was like working as a floor broker here.

I Uh when I had my European offices I started I I left my home at like 6:00 a.m. in the morning. came here. uh, got went to my office I had an office right now right across the street and started reaching out to my European clients and and do it.

What? What? What business owners do with their clients and then you know, studied a financial study? What's going on? Study what's going on around the world? Yeah I mean this is a business where you have to prepare. It doesn't really matter what level you're at folks from a retail. Trader There are no shortcuts in this business. you have to learn and you have to put in a time to learn or else you know it is a too difficult of a situation and too difficult to beat this market.

And then what do you do after the open till close? you know what I do is concentrate on the order flow. I was is entrusted with millions of shares of stock at my discretion from the likes of Vanguard to the likes of the IBM company itself for their corporate repurchase order and so I would watch the technicals on the big board that's displayed right there. That's the only thing we had. no Bloomberg machines.

No nothing. You didn't have the Bloomberg terminal back then? No, No, okay Bloomberg I we nobody knew what Bloomberg was except a very rich person for Traders watching this video right now. Now if they want to eventually do what you did as a floor broker here on the New York Stock Exchange What do you recommend them to do? What study like? How should they work to get here? I Mean you know there's not one factor involved in learning this business. Okay you? you? You know you need to study charts.

You need to know technicals. Uh, you need to know emotions. You need to know psychology. I Mean uh.

and you. The first thing you really need to know and understand is that the algorithms control the stock market. The algorithms, not the big institutional players, not the huge hedge funds. Not anybody.

It's the algorithms that control the market. What do I mean by that? Well, it's very, very simple. You have premium in a market on a day-to-day basis, premium level. and you have discount levels.

And if the market is moving up towards a premium level, yeah, the algorithms are going to go to that area. Oh I see to create liquidity. Okay, conversely speaking, if the market is coming down and the direction is lower, the algorithms are going to go. They're going to go to that discount area.

And they're going to create liquidity. Oh, and they're going to create volatility to get the fractions moving. You know some of the biggest trades are failed. breakdowns I Hope I'm not getting too technical.

Oh, that's okay. some of the big, some of the big viewers need to learn this. Some of the biggest trades that I make is buying against technical areas that are collapsing. Yeah, that's when you should be buying and everybody else they're pushing out of the marketplace.

Sorry you my Lamborghini How dare you I touched on Lamborghini I'm sorry you got to be against the grain in the stock market today. Okay you, you don't want to short a failed breakdown in a technical area. You know want to buy a break out in a technical area? You want to do the opposite in those particular areas. I mean that may be too technical I'm sorry if it is, but that to me if you understand.

if you hear what I'm saying and think about what I'm saying, it will help you down the line dramatically. Thanks for sharing so much tips. A lot of technicals with our um audience watching this. So how does that relate to how you are personally trading today? Are you using more technicals and what kind of asset classes are you? Trading Nowadays Yeah.

I mean I trade the es future Market only I I've traded Uh, billions? Seriously? billions of shares of stock I I I Just don't see the value in buying 500 shares of Microsoft at $330 a share to try to make 50 cents. That's not what I do. That's not the way I think this. Market should be navigated I mean I have different accounts but I I I don't trade some accounts I just have you know income stuff in and blah blah blah.

but I trade the Es future Market on a day-to-day basis only I RAR have positions going out at night sometimes I do depending. Oh okay last night I did okay last night I did I was I told you earlier I was long S&P micro contracts 5 of them only because of the huge sell off yesterday. Yeah and you know I get up this morning, got dressed to come here and meet you and before I did I hit sale sold I see up 11 and A4 handle. It was a quick 250 bucks and that's it I paid for my trip in by car.

Okay but anyway I Trade The Future Market only I Think it's a place to be, especially for younger, younger, not younger so to speak, but traders who are starting out and trying to learn this business. Uh, the Es future Market be becomes incredibly liquid. Uh uh. You know you can trade the the main contract, the mini contract.

It's called for $225,000 a contract. yeah or you can trade the micro contract for about 45 50,000 a contract and air liquid or the NASDAQ futures which a little bit Wilder uh or the Ym which is a little bit Wilder But the future markets provide liquidity and nothing can happen in the stock market without affecting the future markets and how do you help the Traders you trade with? Whether it's futures or any asset class, How would you recommend traders to deal with psychology and managing their emotions? Yeah, uh. emotions are a whole deal. You need to stay centered.

Stay centered. You know. Uh, if you get yourself in trouble and everybody does, and whether you're long and it's you're getting killed, or whether you're short and you're getting killed, whatever it is, yeah, you can get yourself out of it. You can get yourself out of it.

But if you're not focused, if you're not centered, yeah, it's going to be very difficult. Think you have to think like a criminal a criminal? Is that how the stock market works? Okay, please tell I'm not saying everybody a criminal, don't get me in trouble. But what I Am. But what I am saying is you have to think like a criminal.

Okay, because if you think like a criminal, the emotions will not get the best of you. If you can figure out what they're trying to do to make you emotional I See all right, what they're trying to do to make you emotional. All right. you're going to be way ahead of the game.

So I have a question for you. So there's um, there's a lot of saying online retail Traders Saying that. Oh, the market makers, you know are there. They see your order flow, they see, uh, your stop losses and they they intentionally take you out and then swipe the swipe it back up.

Is that true or not? 100% Okay, 100% And That's part of the thinking You: does anybody know whether that's the case? No. But can you see the reaction from these levels and know that is true? Yes. and I'll give you a real secret about this place down here in the day. Okay, one of the most successful trades out of any trade that has ever taken place in this building is when stop orders are touched off.

people are protecting themselves. They don't want to lose money. Where is the biggest most successful trade I would venture in this place over the years is when you participate against stop orders. So if the stop orders are touched off and they have to sell down, you want to buy that every time.

or if the or if the stop orders are on the way you want toell that time you want to be on the other. So what you just said is what you just said. It's 100% accurate and sometimes in our proprietary charts yeah it will touch it off and we have a certain sound associated with it. and when it ERS St T got taken out and when you hear that, close your eyes and buy them or close your eyes and sell them.

Oh okay, that's a secret strategy right there. Yeah it. I'm telling you that's proprietary stuff. Where is it based on folks? It's based on what I Learned here as a kid.

That's where it's B Based on this is a real Uh Wall Street and New York Stock Exchange Uh experience here. and uh, this is enough. These are like some really really juicy tips. Um, okay.

so any other tips that you have for Traders watching this? how should they get started? Let's say they're a brand new. Trader They're navigating the markets today. How? what kind of tips do you have for them? Yeah. have to be able to manage your risk.

Okay, you really have to be able to manage your risk. So people ask me all the time. Well, how do you manage risk? What are your parameters? There are no parameters. It's relative to the situation.

The market is is a chameleon. It changes colors by the second so there is no way. But everybody's tolerance is different. Everybody's Market uh bank account or or Market or um.

investment account is different and so it's all relative to what your tolerance is and you need to know You need to know your personality. I See every Trader that's starting out needs to understand their personality cuz it's going to come through and it's going to be the difference between you winning or losing when you're risking your own capital. I See, kind of understand what their own risk tolerance is like right? Let's say I can only take $100 risk I should trade differently than someone who risk like 10,000 That's it exactly. And and I'll say something something else.

Okay, don't put all your eggs in one basket on a particular trade. Yeah, single entry trades will kill you. Oh okay, because if you're trading, think about that. Let me just say it again.

single entry trades will kill you is cuz everybody buy a low for the day and feel comfortable. No, so you have to have a little more ammunition if you're too early on the trade to bring your average down. I See, Okay you? Okay, single entry trades will hurt you every time. So it sounds like you're recommending our traders to have use a entry system where they scale into Trad slowly to build a decent average.

Let say around the level you were looking at. Absolutely yeah. So my level this morning I don't know where it is right now. My level this morning was uh, 4366.

It broke that level. Oh okay, it broke that level. But let's just say and I'm looking at it in hindsight now folks. I Put these signals out there last night, so you know, but 4366.

So let's just say as an example of what we're talking about, you buy 4366. Wonderful. It's a it's a very major technical support area in the market. Okay, but now wait a minute.

Um, I'm a little early. Okay, there some other people selling and they're knocking it down Number two I will not not average down down a handle or two. Okay, you got to spread it out. So you bring your price, you bring your point.

You bring your price down. You can't bring your price down. if you're trading a future Market or anything by a small amount, you got to spread out where your second entry is or else you use the first entry and play it out the way it is. I see but don't Bunch together the second entry.

Okay, if you're early, this is the same way with taking profit as well. You know taking profits. what I like to do is I'm right. yeah I would like to put 75% of my profit in.

okay I like to take 75% of my profit off. Oh okay, you scale out off and and I like to keep the other 25% and let it run up. Oh so you Trail it on the way I I Trail it and then I I follow it with stop orders and at the end of the day if I'm right and this is running and it keep and it's running and I'm feeling real good I Lock in money I make these trades riskless if I'm right riskless I See Yeah, so like if if it does go higher, you make even more money and it doesn't you have a stop so you don't lose money I don't lose money and I I could lock in two or three handles I can lock in an amount of money again. it's according to you know, everybody's perseverance.

Uh, you know, maybe maybe they got killed yesterday and they want to make some money and put it in a bank. You know I mean it's everybody's different with that. Okay, but there's certain rules of money management that you need to adhere to and you need to have a tolerance for how much money you're willing to risk on a trade. Yeah, and that's important.

So if you're willing to risk $250 on a trade fine, then protect yourself down $250 But you need to know this before you make your initial bet. I See, because if you don't sometimes if you don't give it enough room, if you don't give the trade enough room to develop, you know you could be wrong and right at the same time. I see, well, like it can, you can get take out, you're wrong and then the trade ends up working your favor exactly your favor. So it's very important to identify those areas that make you comfortable.

But it again, you need to give the trader. uh, some time to develop some. Sometimes you can't just be SC afraid out of it. Let's take a step back.

Um I Know we talked a lot about trading. What's your opinion on investing? Should people watching this? What brand new Should they start with trading or investing? What's your thoughts? Yeah, well look I mean I've been on both sides of the fence as as I mentioned, I' I've traded literally billions and billions of shares. Billions. Yeah and right now I think the way to be and I know people think Oh day Traders day Traders I Don't believe that at all, right? You know my company is named Lpq Limited Exposure Prevent blowups which is the one thing every Master Trader will tell you.

If you can prevent blowups, you're way ahead of the game. That's why I developed this country this company. I'm a firm believer that day trading can be conquered I See it. I Do I do it every day my partners and I do it every day.

My subscribers are off the charts happy because of the plan we put in place. So I'm saying to you this Market is very volatile and to try to learn on the fly with this kind of action going on and volatility, it's very difficult. Listen, this could change but as of now and from in a foreseeable future day trading this Market is the way to be and that's my opinion. So you you don't believe in uh, Buy and Hold or like long-term investing I mean you know dividend paying stocks obviously I'm an owner of IBM Acting very, very well.

The yield is almost 5% Why would they want to buy the stock market if you can get 5% for nothing? When they and when they're making you crazy, those are some of the things that I look at I'm saying what do I want to buy this for? What do I want to buy that for? What do I want to buy up this kind of capital I Want to keep the capital moving and I think that day trading this Market is the way to do it in the environment that we're in. Richie Do you have any me final messages or tips for our viewers watching this right now? Yeah I mean limit. Limit your risk, limitate your exposure put in your work you have to put in your work. The putting in the work prepares you and gives you the confidence level that you need to to Really tackle this Market every day.

So it it. it is not a it is not a Sprint This is not a Sprint If you want to roll in this market, it's a marathon and you should be conscious of the fact that it's methodical. Don't think that there's any, you know. Uh, Getrich quick schemes here in the stock market.

it's not, but a lot of young people coming in. uh, you know, word them. M everybody's got something to say. Oh I made this Oh I made that You don't know what they made? Okay, you really don't know.

but I tell you that you need to be prepared and you need to study. And there are a lot of ways you could do it. Okay, but don't think you're going to come in here and get rich quick doing. Do doing this because they'll chop you up.

They'll take you money for sure and and they'll and Shay you she know that better than most. They'll take you money humbled after all. Yeah, thank you very much Richie My pleasure. Thank you so much I appreciate it and uh, good luck to all you folks out there.

Thank you for the thank you for this. If you want to see even more of my interviews with experienced Traders and fluid Traders check out this playlist over here.