[INTERVIEW] Paso Milak's Incredible Journey to Trading Success

[INTERVIEW] Paso Milak's Incredible Journey to Trading Success

Interview Highlights

I highly recommend listening to the full interview. It's one of the best ones we've put out to date. Here are a few notes from the interview.

Paso's Journey to Trading Success

  • Paso has been trading for about 5 years
  • He came from Bosnia to United States as a refugee during childhood.
  • Paso went to law school and dropped out freshman year after realizing it wasn't for him.
  • He got a job at a pharmaceutical company after dropping out.
  • Paso realized he made more money in stock (from stock options) than from his salary. This is how he became intrigued by the markets.
  • Paso quit his job so he could pursue day trading. He thought “buy and hold” would be simple after seeing the returns on his stock options.
  • Paso started trading, got lost in another chat room, and found IU a month later.
  • Paso had a lot of pressure to perform, as both he and his parents were out of jobs at this time.
  • Eventually, he had to get a job in sales again so he could get more capital. At this point, he switched to part-time trading.
  • He still struggled to find consistency for 2 years
  • Paso's first big win was 100k on a swing trade. This was the start of Paso's massive success.
  • Paso began to develop consistency, but still struggled with bigger losses. He would make 2-5k/day for a few days  in a row and then lose bigger money on another trade. His goal was to eliminate losses and let the wins accumulate.
  • Paso has been trading full time for the past 2 years

Paso's Trading Process

Paso has a unique trading process, based primarily on simplicity. Here are some of the details.

Trade Criteria

  • Paso looks for opportunities where sellers become exhausted, allowing for a trade reversal. 
  • He is primarily interested in stocks that gap up or down
  • Paso focuses on the "big money" in a trade. He prefers to pay attention to institutional buying vs. retail.

Building Watch Lists

  • After market close, Paso reviews news and financials for companies making headlines. 
  • Paso analyzes charts and takes notes on the stocks he's reviewing
  • He will draw out support/resistance lines on a chart BEFORE entering a trade.
  • Paso will limit his watch list to 2-3 stocks (1 top, 2 secondary)
  • He will analyze pre-market activity the next day to finalize his game plan

Main Analysis Tools

  • Paso keeps things simple!
  • His main indicators are price, VWAP, and Level 2
  • Paso uses the support/resistance lines guide his trading.

Trade Management

  • Paso is focused on the bigger picture in a trade
  • Level 2 is one of his main analysis tools (alongside charts)
  • He will block out small orders on Level 2 so he can focus on the "big money."
  • Paso will start with a smaller position (relatively speaking) and build up from there.
  • He will leave room for up to 3 adds on a position (i.e. adding more shares)

The Importance of Routine and Discipline

  • Paso follow the same routine every day. He is highly disciplined and treats trading like a real job.
  • Paso is an early riser, starting his day at 4:30AM.
  • He will go to the gym first thing in the morning (from 5-7AM)
  • Paso meditates for 5-10 minutes in the morning
  • Paso doesn't accept calls before 12 (unless it's an emergency) so he can stay fully focused on the markets.
  • After the market closes, Paso takes some time to wind down. He enjoys spending time with family.
  • Paso is in bed by 9-930PM so he can come to the market prepared the next day.

Paso's Tips for New Traders

  • Always have a plan before entering a trade.
  • Don't follow random alerts - it won't work.
  • Don't jump in on random trades - you will get in trouble.
  • Focus on a single setup that works well for you.
  • Trade small and trade consistent. This is how you develop a skillset without blowing up your account.
  • Trade every day and be involved. Participating in the market every day helps you understand trends, how the market is behaving, and more. 
  • Becoming a consistently profitable trader takes time. Stick with it. It will come together.
  • Surround yourself with other successful traders. The lessons you can learn from the experience of others are invaluable. 

5 Comments

  1. Congratulations to you sr. You are to be commended. This is what the American dream is all about.

    Reply
  2. Good, common sense, & disciplined. But difficult for new traders, always the way until settling down.

    Reply
  3. That interview was very clear, professional and edifying. Very timely encouragement for me. Thank you for sharing.

    Reply
  4. Very good interview. It just shows that dedication to this craft will eventually pay off in time.

    Reply
  5. Amazing.

    Reply

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