Teri Ijeoma, Invest With Teri:
- Uses the trading platform, TradeStation
- Not a fan of RobinHood because she likes to use charts and RH charting is not as strong. Somebody can use that as a beginner's source. But then when they're becoming more professional and want to make daily income, you gotta have good charting.
Seena: How many hours a day should you work on this?
Teri: In the beginning, I say about 4 hours max. You'll spend about an hour at night looking at your charts. And then during the day, in the beginning of the market. And at the end of the market, you'll want to spend about an hour. And then, if you can, during the day, just check your phone and see how the stocks are doing. And then, as you become a better trader...I trade with less than 2 hours a day.
Teri: In the beginning, I say about 4 hours max. You'll spend about an hour at night looking at your charts. And then during the day, in the beginning of the market. And at the end of the market, you'll want to spend about an hour. And then, if you can, during the day, just check your phone and see how the stocks are doing. And then, as you become a better trader...I trade with less than 2 hours a day.
Karen: How many stocks are you looking at everyday?
Teri: My watchlist, is about 30 stocks. Get really familiar with a few. And then you can make money on those same stocks forever, once you're good at those. I've kept that same stock for about 10 years. I've interchanged some every now and again, but I have a watchlist of about 30 that I'm real familiar with.
Karen: If you have a 401K and you're self-employed, you can set it up where you pay yourself, and also dollar for dollar, put money in a 401K that gets deducted directly.
Teri's secret tax tips:
We changed somethings into a C-Corp. So, people should look at that, if they have a small business. Because C-Corps are taxed at 21%. Yes, down the line, you'll have to be taxed again. So, do be mindful, you will end up probably paying more because you have to pay yourself. But, in the meantime, check out C-Corps vs. S-Corps. S-Corps are nice too because you get to do payroll.
We changed somethings into a C-Corp. So, people should look at that, if they have a small business. Because C-Corps are taxed at 21%. Yes, down the line, you'll have to be taxed again. So, do be mindful, you will end up probably paying more because you have to pay yourself. But, in the meantime, check out C-Corps vs. S-Corps. S-Corps are nice too because you get to do payroll.
Partial shares?:
Teri: I don't mess with partial shares. That's not my lane. I'm very much..."By the whole thing."
Teri: I don't mess with partial shares. That's not my lane. I'm very much..."By the whole thing."
(caller recently transitioned from her corporate job of 10 years; questions about her 401k funding and also a lump sum from the company that she departed from; what should she do? first steps?:
Teri: First, open a self-directed IRA, so that you can move some of those funds from your old 401K and start trading them. But, I do not recommend that you move it all over. Start with a small amount. Then, take the class. Get good at trading that small amount and then, you're going to make it grow. Then, you can start adding to your account. So, to open an account at TradeStation, we usually start at like $500 and then you can start playing in the Simulator, while your practicing. Start there. And then, start moving more of money over into that self-directed IRA.
One thing that I will tell you, is that a self-directed IRA, can not use margins. A lot of my students are able to make bigger trades because we are able to use the bank's money. Which means that we are able to use 4xs our cash amount to trade with. So, at some point, if you want to, you can move to an actual cash account vs. an IRA. So, that you have that flexibility too.
Karen: Isn't that a risk, using 4xs the money that you have in because they can call that money in at any time?
Teri: It is. But, that's why we do our risk management. One of the things that we calculate is our quantity size and we look at our risk tolerance. Which is, I don't want to lose more than $200. And then we divide that by the actually risk that we calculated in the chart, and then it will tell you how many shares that you can trade. If the number of shares that you can trade, allows you to use some of the margins, then you can go ahead and use it, because you still know that you've already calculated in your risk.
Karen: How do you keep people from getting greedy?
Teri: That's when you have to stick to a trading plan. One of the biggest things to being a good trader is discipline. If the opportunity doesn't present itself, if the reward-to-risk is not there and it's not 3 to 1, then you can't take the trade. Period. No matter what it looks like.
We have to wait and be patient and let it come to us.
We have 7 steps that we do, every single time.
We have to wait and be patient and let it come to us.
We have 7 steps that we do, every single time.
(caller; Jonathan):
If someone is not using TradeStation, is there a platform where they can get charts from that is not connected to a brokerage account or something of that nature?
If someone is not using TradeStation, is there a platform where they can get charts from that is not connected to a brokerage account or something of that nature?
Teri: Yes. Investing.com is a good platform. You can use charts there. CNBC Network has a good app where you can see information about the stocks. I love having a watchlist on CNBC because that gives you news. They send you notifications. Both platforms are free.
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