Recognize opportunities and remain disciplined for long-term success in trading.
Identify high-probability moments in the market by recognizing unique setups and aligning with strong stocks or indexes.
Manage emotions, stick to a trading plan, and avoid irrational behavior driven by fear or FOMO while trading.
Deep dives
John Carter's Trading Career and Success
In this episode, John Carter shares his trading journey and highlights his success as a trader, particularly in options trading. He emphasizes the importance of recognizing opportunities in the market and staying disciplined in order to achieve long-term success. He discusses his approach to trading psychology and highlights the significance of being present and aware of our emotions while trading. Additionally, he talks about the challenges and opportunities presented by the current trading environment.
John Carter's Approach to Big Trades
John Carter shares his experiences with big trades and explains how he identifies high-probability moments in the market. He discusses the importance of recognizing unique setups and aligning with the behavior of strong stocks or indexes. He uses examples such as Tesla and Google to illustrate the potential opportunities provided by stocks with high short interest or specific behavioral patterns. Moreover, he emphasizes the significance of risk management and recognizing when a trade isn't working.
The Role of Psychology in Trading
John Carter emphasizes the psychological aspect of trading and its impact on trading performance. He encourages traders to be aware of their emotional responses and survival instincts that may influence their decision-making. He underscores the importance of sticking to a trading plan, managing risk, and avoiding irrational behavior driven by fear of missing out or holding onto losing trades. He highlights the need for traders to be comfortable with being uncomfortable and to maintain objectivity while trading.
The Difference Between Trading Stocks and Options
John Carter points out that trading options can be more complex than trading stocks, but it offers more flexibility and potential for higher returns. He explains the basic strategies of trading options, such as buying calls or puts, debits spreads, and credit spreads. He suggests that traders should start by learning how to trade stocks first and then gradually incorporate options trading into their strategies, focusing on simple strategies that align with their directional views.
John Carter's Approach in the Current Market Environment
John Carter discusses his approach to trading in the current market environment. He highlights the importance of adapting to changing market conditions and being flexible in strategy. He suggests that day trading may be more suitable in the current market, given its choppy nature. He also emphasizes the need for risk management and aims to make consistent profits instead of seeking big trades in this market.
Returning guest and options veteran John Carter has become increasingly aggressive with his trading tactics, and as a result, has booked a multitude of large profits during the past few years.
In this sequel to the popular Episode 69, John speaks on having surpassed the career milestone of 30-years trading—and how it’s groomed him to maximize recent market opportunities that’ve been present.
More specifically, John recaps a mega options trade ahead of GOOGL earnings, then proceeds to address; trading psychology, taking a holistic approach, navigating markets in 2022, favoring tangible assets.
