Interview with Alex Sposito - 23-Year Old Successful Trader

by | Dec 18, 2018

Investors Underground is home to so many amazing traders. Behind each of these traders is a unique story: a journey of evolution. Every trader starts at square one and goes through similar trials and tribulations. The path to success is paved with hard work, failure, and adaptation. For the most fortunate traders, this path eventually leads to consistent profitability.

Today's story is about Alex Sposito, a 23-year old finance major at Auburn University. Alex has been interested in trading stocks since 2014 when he was introduced to the stock market through a stock picking contest in economics class. Since then, Alex has become more and more engaged in the markets and is quickly making a name for himself.

Check out the interview below to learn how Alex found consistent profitability, his recommendations for new traders, and his aspirations for his future in day trading.

Interview With Alex Sposito

Key Takeaways

  • Alex is a 23-year old trader who has quickly learned the key lessons that lead to trading success
  • You will never make consistent profits by following other trader's alerts. You need to strive for self-sufficiency.
  • Paper trading is a good educational tool, but much different than normal trading. Paper traders don't have any skin in the game, and may be surprised by the emotions that come with trading real money.
  • Analyzing your trades is the best way to refine your trading strategy. Review the results of your trading history and figure out where you are making your money. If done right, this can help you identify your best setups so you can focus on your highest probability trades.
  • Planning is a huge part of trading. There's no greater feeling than watching a plan work out perfectly.
  • Traders should avoid biases. You may be 100% right about a company (i.e. fraud, undervalued, etc.) and the stock can still humble you. Don't let your biases affect your trading.
  • The process of scaling up is slow and gradual. You need to see consistent results and then you can slowly start increasing size.
  • You need to have a maximum set risk to avoid potentially catastrophic situations (i.e. always cut losses at $5,000). No one likes taking losses, but this rule can protect you from taking even bigger losses that may jeopardize your trading career.
  • Traders shouldn't be afraid to use small size. Every trader wants to see big profits, but capital preservation is a big part of trading. Using small size when you're less confident can help you protect your account.
  • Small gains add up over time. If you look at most successful traders, their career P&L is built from small wins and small losses. It's not comprised of a few "home run" trades.
  • Start networking with other traders. Building a solid trading network can have a major impact on your trading. You can learn from others, share ideas, and build a support system.

 

6 Comments

  1. Great Wish 73 year old can emulate you

    Reply
  2. This is a great interview. All the "key takeaways" summarized is worthy of note by Rockies like myself. And I continue to be impressed by Cam, a very skillful interviewer indeed. Thank you.

    Reply
  3. Amazing interview and excellent tips!

    Reply
  4. Thanks Cam and Alex - great content like always.

    Reply
  5. Yep. Bias KILLS!

    Reply
  6. I like paper trading. The money is unreal and the borrows are free and always available, but that is not the point. What I like is that by following a trade through gives insight about how the market and stocks work in the real world and how to lose. It is s like comparing apples and oranges. I get it, no money is made, but you get to see the beast from up close. I dont know, I like it. Ít relaxes me.

    Reply

Submit a Comment

Your email address will not be published.

Related Content

15 Trade Management Tips to Improve Your Trading

15 Trade Management Tips to Improve Your Trading

Trade management is an important part of the trading process. It's not enough to have an effective strategy - you also need to execute that strategy properly. Think of this distinction as the difference between creating a well-rounded business plan and actually...

Adapting to the Market - 8 Practical Tips for Traders

Adapting to the Market - 8 Practical Tips for Traders

The stock market is constantly changing. If you are fortunate enough to find success as a trader, you shouldn't get too comfortable. A strategy that works for days, weeks, or months is not guaranteed to work forever. Career traders who achieve long-term success...

14 Tips to Improve Your Trading Mindset

14 Tips to Improve Your Trading Mindset

Your mindset is an important part of your trading. How you think will impact how you trade. Your mindset will ultimately determine what you focus on, how well you learn, how you react to trades, and so on. Today, we are going to discuss some quick tips to help you...

The Process Behind Trading Success - Nate Michaud on SimCast

The Process Behind Trading Success - Nate Michaud on SimCast

https://www.youtube.com/watch?v=yaHEIFvHh5g Topics Discussed Long Trading vs. Short Trading (and Where Nate Makes More Money) Using a "Macro Mentality" in Trading Scaling in and Out Around a Core Being Early vs. Being Right Why Day Trade vs. Invest? Finding The Best...

Trading Insights from Career Traders - Interview With Nate and Cody

Trading Insights from Career Traders - Interview With Nate and Cody

Topics Discussed How Veteran Traders Manage and Deal With Losses The Role of Discipline in Trading and Life When to Trade & When to Take Breaks Adapting to Changing Market Trends (Figuring Out What Works) Recognizing Your Strengths and Weaknesses What Contributes...

13 Tips to Minimize and Prevent Trading Losses

13 Tips to Minimize and Prevent Trading Losses

How much higher would your trading profits be if your losses were cut in half? How much higher would they be if you only lost half as frequently? Most traders focus on chasing profits and forget that minimizing losses can have the same net impact on your bottom line....