Teri Ijeoma: Start Trading Today | E141
Teri Ijeoma: Start Trading Today | E141
Have you been wanting to start stock trading, but have no idea where to start? In this episode, we are talking with Teri Ijeoma, professional day-trader, entrepreneur, and Founder of her own business trading course Trade and Travel. Teri has been working in the stock market and day trading for over a decade and is infamous for making over $1000 in a day. With more than 10+ years invested in trading education, courses, workshops, having spent thousands of dollars, with a lot of trial and error, Teri developed expert strategies and proprietary intelligence that fast-tracks the learning journey and earning performance. In 2018 Teri was named Entrepreneur of the Year by National Black MBA Association, and was the Grand Champion of Teachable’s 2019 Creator Challenge. In today’s episode, we discuss Teri’s career journey and how she went from being an Assistant Principal for an elementary school to earning over 6 figures as a self employed entrepreneur. We also get a crash course from Teri on how to start trading in the stock market, investing, and brokerages. Finally, we talk about the personal and emotional side of investing, and the importance of investing in ourselves. If you’ve been wanting to learn about the stock market and trading but don’t know where to start, you do not want to miss this episode!
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00:43- Teri’s Career Path and Journey to Teachable
05:30- Teri’s Best Day Ever in Stock Trading
06:28- The Importance of Investing in Ourselves
9:25- The Difference Between Trading and Long Term Stock Investing
15:06- Where to Find Teri’s Course and What It’s About
17:38- How We Can Get Started with Trading and Brokerage
24:38- The Difference Between Stocks and ETFs
27:30- How To Pick a Stock
30:50- How to Hedge Our Risk When Day Trading
33:46- The Emotional Side of Trading
34:41- Risk-to-Reward Ratios
37:57- Teri’s Secret to Profiting in Life
Mentioned In The Episode:
Teri’s Free Webinar https://www.etf.com/
Trade and Travel Youtube
Trading Simulators Teri Recommends:
#141: Start Trading Today with Teri Ijeoma
[00:00:00] Hala Taha: You're listening to YAP Young And Profiting Podcast, a place where you can listen, learn, and profit. Welcome to the show. I'm your host, Hala Taha. And on Young And Profiting Podcast, we investigate a new topic each week and interview some of the brightest minds in the world. My goal is to turn their wisdom into actionable advice that you can use in your everyday life.
[00:00:25] No matter your age, profession or industry. There's no fluff on this podcast and that's on purpose. I'm here to uncover value from my guests by doing the proper research and asking the right questions. If you're new to the show, we've chatted with the likes of ex FBI agents, real estate moguls, self-made billionaires, CEOs, and best-selling authors. Our subject matter ranges from enhancing productivity, how to gain, influence the art of entrepreneurship and more if you're smart and like to continually improve yourself, hit the subscribe button because you'll love [00:01:00] it here at Young And Profiting Podcast.
[00:01:03] This week on YAP. We're chatting with Terry Ijeoma. Terry is a professional day trader entrepreneur and founder of her own business trading course Trade and Travel with more than 10 years in trading education courses and workshops, she's developed expert strategies that fast-tracks the learning journey and earning performance of investing.
[00:01:23] In 2018, Terry was Entrepreneur of the Year by the National Black MBA Association. And she currently has the number one course on teachable. In today's episode, we discuss Terry's career journey and how she went from being an assistant principal to earning multiple seven figures as a self-employed entrepreneur.
[00:01:42] We'll also get a crash course in how to begin trading in the stock market and get her one-on-one investing tips. We closed our conversation, by talking about the personal and emotional side of investing and the importance of investing in ourselves. If you've been wanting to learn about the stock [00:02:00] market and trading, this episode is a great place to start.
[00:02:05] Hi, Terry, welcome to Young And Profiting Podcast.
[00:02:08] Teri Ijeoma: Hey, Hala. How are you? Thanks for having me.
[00:02:11] Hala Taha: Of course. I'm super hyped to talk to you today and you are the number one teacher on Teachable’s, which is amazing. You are a seven figure trader. Which is a very huge accomplishment and I can't wait to get into all your stock tips and everything like that.
[00:02:30] But first I want to talk about your journey, because I find your journey super interesting. We always talk about something called skill stacking on the podcast. And I feel like your story is a perfect example of this because you were in education and then you leverage those skills. Once you started to learn how to invest, and then you started your course, that kind of merged everything.
[00:02:51] So walk us through your career path. How did you gain all these experiences and skills to then finally come out with this course? That was a huge success. [00:03:00]
[00:03:00] Teri Ijeoma: Ooh. I like this topic of skill stacking. I have so many cool skills. Okay. So I actually first learned about investing in high school. Many people don't know that, but I went to this program in Chicago called Lead and they introduced us to the Chicago stock exchange.
[00:03:18] So I remember in high school. Google my senior year, Google IPO, or had their Initial Public Offering. And it was $83 a share. And I remember going to my grandmother like granny, we got to buy this stock. And she's what are you talking about? Maybe we didn't have any money. We didn't know what to do. So we missed out on this great opportunity to get in, say Google at $83.
[00:03:39] Now it's over $2,000, but ended up going to college. I still like, you know what, I'm going to figure this thing out. So went to MIT and interned on wall street and said, okay. Now I'm going to get it. I'm finally gonna learn girl, they don't teach you nothing in your internship. We were we were looking at spreadsheets and all this stuff, and I still didn't know how to actually
[00:04:00] And even after college, but went on this whole different trajectory. I went into management consulting in consulting. We I say we, but it's really just me in consulting. One of our clients was teach for America. And that's when I got into education, went on a completely different path. So for a little while, it was like, okay, that finance stuff, it's cool over there, but I'm all about, education, equality.
[00:04:24] And I want to have all the kids have equal opportunities. So went down this whole path, which led me to be an assistant principal of an elementary school. So I'm thinking, okay, I'm going to be in this school forever girl. Then I ran into the boss from hell and was like, oh no, I cannot do this.
[00:04:44] And honestly, Working in schools, it's hard. And so I'm not going to say like anything bad about her, but I do think that she just was like the most nitpicky boss ever. I would cry every day in the bathroom. I would cry on the way to work. And it
[00:05:00] wasn't just me. Like the other assistant principal too, would be in the bathroom crying.
[00:05:03] We'd read, like taking turns. And then at the end of the day, like I have to go over our misery stories. What happened to you today, girl? Oh, did that happen, girl? This happened to me today. So it was just a really toxic work environment. And I
ended up deciding, you know what, I need to leave. I got to quit this cause I can't die here.
[00:05:22] I can't be this unhappy. And I was gaining weight. I was just, I was stressed out to the max and that's when the investing came back around. I had been doing it. I didn't tell you this, but like around 2010, when the stock market fell, I had started trading as a side hustle. And so while I was in education, it's still been like a hobby.
[00:05:42] So when I decided to leave the school, it came up as let me just see if I could use that to be my main thing. All I need is $300 to replace my income. Let me just see if I can $300 a day. Yes. Ma'am $300 a day. All I needed was that to replace my. So started [00:06:00] trading. I'm still at the school still hating it, but I'm trading on the side.
[00:06:03] Like I'm gonna be out of here one day. Y'all y'all playing with me. Don't ask me no questions. And I started actually getting to my goal. I started hitting $200 a day. Then it was $300 a day. Finally got to a place where I felt comfortable quitting my job as assistant principal. And I just started traveling all over the world and trading stocks.
[00:06:23] And that's literally how I got into trading.
[00:06:27] Hala Taha: It's so cool that it was so organic and you just leveraged everything that you knew, the fact that you were trading and traveling that you were in education, and you knew how to teach students. And you had experience there and you knew all this investing information and you put it all together and you put out a course and it's a massive hit.
[00:06:46] I always talk to people that like, there's no such thing as an overnight success. This reminds me so much. Our stories are totally different, but they're so similar in the same way, because it's like I picked up pieces and then came out with a marketing and podcast agency and it blew up [00:07:00] because when you have all the right skills and you've done it before yourself, it's just so much easier to start a business.
[00:07:05] So kudos to you. That's awesome. Okay. So let's just give people some foundation in terms of like how much money, we're talking about when it comes to the type of money that you're making from trading. So what was your best day ever?
[00:07:21] Teri Ijeoma: Ooh, I actually had my best day ever recently, like a few weeks ago. And this is actually like the beginning of when I was about to premiere the docu series.
[00:07:32] I have a docu series that you're actually coming to speak at part of the panel, but I made a million dollars, 83,000. It's 1,000,080 $3,000 in one day. Trading stocks. Wow. I made it on Amazon.
[00:07:46] Hala Taha: Oh my gosh. That's crazy. That's amazing. Using Amazon stock. So guys, she's not playing, like she knows what she's doing.
[00:07:54] We're going to pick her brain. Okay. So one more like intro question. I heard [00:08:00] that you spent $30,000 on a course and you paid it on your credit card when you were in this job that you hated, because you wanted to educate yourself enough, to be able to do this for real. And you knew that education was the path.
[00:08:14] So talk to us about the importance of investing in ourselves, because a lot of people would say $30,000 no way, but what's the benefit of investing in yourself in that way.
[00:08:24] Teri Ijeoma: Yes girl. At that time, I didn't have $30,000 to spend. I was only making $60,000 as assistant principal. So this 30,000 per class learn how to invest was half my salary.
[00:08:36] But what's so important is some people are like $30,000. Terry, what are you talking? But just think about it. I invested $30,000 back then, and yet I put it on a credit card because I didn't have that kind of money, but I said, I'm going to learn this skill and I'm going to pay myself back. But now I just made a million dollars in a day.
[00:08:54] So that $30,000 investment, has led to me having the skillset to make a million dollars in a [00:09:00] day. And not only can I make that one time, I still have the skillset, so I can do that over and over again. And it might not be a million dollars in a day for some of the people on here. Oh, my God, this doesn't even sound real, but just imagine if you made $200 a day.
[00:09:15] That's a thousand dollars a week, $4,000 a month. And then you times that by the year now this $200 a day is now $48,000, extra a year because you have this skillset and he keeps on giving back. So I think that was the best $30,000 that I ever could have spent. And of course now I'm teaching the course and I wanted a little bit more accessible, so I'm not charging that much for it.
[00:09:40] But I think that. It's worth more. It's worth more than the 30,000 I spent because you can always keep using it and keep getting that return.
[00:09:49] Hala Taha: Yeah. I feel like people don't realize that the ROI of learning a new skill literally lasts forever and you can keep using it building on it. And I think sometimes you don't need to pay for a course.
[00:09:59] You could just [00:10:00] intern for free somewhere. And it's very similar to taking a course that you get that information and you put your time investment. So if you don't have the money you can put in the time to which people don't really think.
[00:10:12] Teri Ijeoma: It's about learning that skill set. Once you've learned the knowledge, nobody can take that away from you.
[00:10:17] Like it's not going anywhere. It's locked in your mind and you can use that in so many assets. Like even now, when we talk about the skill building or what did you call it? Skill, skill stacking. Stacking those skills didn't go anywhere from educating and from education world. I learned how to teach then from I worked in operations.
[00:10:35] I learned how to make things work well, and they make things seamless and low, like very efficient, low effort, low energy. Right now I'm in this course where I'm teaching people how to trade and guess what? I'm using my education and my operations. So those skills last forever.
[00:10:51] Hala Taha: Yeah, 100%. So I know we have limited time and I really want to pick your brain on stocks, trading, all
[00:11:00] Really just get all this amazing information out of your brain and into my listeners hands. So let's first start off with the basics. A lot of people think about stocks. And I have a lot of folks coming on the show and they talk about long-term investments, with stocks and they always say, you don't want to trade.
[00:11:19] You're never going to win. You just want to play it safe. Put your money in SMP index funds or buy in whole. But training is totally different. So explain to us what the difference is between trading and long-term stock investing, and then what you think the benefits are of trading as opposed to buying and holding.
[00:11:39] Teri Ijeoma: Sure. Let me use the analogy of real estate because many people understand real estate more than stocks. So it really be the difference between someone who buys a house and keeps it longterm versus a flipper. So you get the house, you fix it up and then you sell it real quick to make a return or the person with the longer-term house.
[00:11:57] They may have renters and just wait for the value [00:12:00] to appreciate, but both of them are still investors and neither one of them is wrong. They're just doing it for different goals. That's the same thing with short-term investing, versus long-term investing. Honestly, as an investor, I'm still investing in high quality, really great companies.
[00:12:16] The same ones that a longterm investor would invest in. I'm just getting in and out of them because I have a goal, whether that's a paid off my student loan debt with trading, I had a goal. I need to make certain amount of money each week so that I can put it towards my debt. Or I bought a house with trading.
[00:12:33] Hey, I have a goal. And even for when I was first leaving the school, I needed $300 a day. So that was my goal. Anytime you have a shorter term goal, you can use trading for that. And it's not, like we said, it's not bad or any worse than long-term investing. It's just different.
[00:12:51] Hala Taha: Okay. And then what's the difference between a regular trader and a swing trader.
[00:12:56] Teri Ijeoma: Great. So there's different timeframes of how long [00:13:00] you hold a stock if you hold it for one day. So say for example, I get into Amazon today and I sell it today. That's a day trade. Some people are day traders and that's all they do. Then if I get into Amazon today, but I hold it even just overnight, one day, that's a swing trade.
[00:13:16] You can swing, trade or hold a stock up to a year and still be considered a swing trader. So if I get out of it in two weeks, two months, three months, I'm a swing trader. Oftentimes swing traders do super well, because you can still take advantage of the quicker movement for your goals, but you hold onto it a little longer, so you can actually make some good returns.
[00:13:39] Hala Taha: Okay. And would you recommend a beginner start off day trading or swing trading or long-term investing.
[00:13:46] Teri Ijeoma: Honestly. You can do all three. I don't think you have to choose. That'd be like going into a candy store and being like the only thing you can eat are butter. Girl, eat whatever you want to eat. But I'm a technical analysis trader and I look at charts and that's what I use to [00:14:00] dictate. How long I keep a trade.
[00:14:01] If I get into a trade at a certain point on the chart and it says, wait until this target, if it takes a day to get there, then I keep it a day. If it takes two weeks to get to my target, I keep it two weeks. So it's not like an arbitrary time that I'm picking. I'm actually more so going by the data of a stock chart that tells you the pricing.
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[00:18:04] So I know that your big thing and what you're known for is people trading stocks as a side hustle, basically, or to help them get out of there.
[00:18:13] Like eventually make it a main hustle, but a lot of people start as a side hustle. So let's talk about the time commitment. How long does it take to learn how to trade and then how long do you have to do work every day to let's say make $300.
[00:18:28] Teri Ijeoma: Great question. So it doesn't take long to learn. I have a course called Trade and Travel and it's eight week program.
[00:18:34] So it takes you eight weeks to learn, and then you can start trading. And we actually start trading in like the second week. So you're trading right away and practicing and becoming better. But I do say it takes about a year to become consistent. I don't want anyone to think this is a get rich quick type of thing.
[00:18:51] No, this is the same thing as if you were going to any school and learning a new skill. If you're learning a new language, if you're trying to become a doctor like anything. Where it [00:19:00] takes a skillset, you gotta learn for a while and practice, that's the same with trading eight weeks to learn, but then give yourself about a year to become consistent.
[00:19:08] And then when we think about like how much time. I think my students would do well if they did maybe an hour per day of studying, at least at nighttime, what I would do is when I got into the bed each night, I would pull up my watch list of companies that I'm checking out. And I would look at their charts at night and then I would see if there was anything that I would want to do the next day.
[00:19:30] And then when I was assistant principal, I would check in the morning time. I'd make a meeting with myself. Don't tell nobody. I made a meeting with myself and then at lunchtime I would check my cell phone. And then right before the market closed around the time that the kids were getting picked up, I would check one more time.
[00:19:45] So it doesn't take a lot of time to like actually check and monitor the trades is just give yourself some time to do homework.
[00:19:51] Hala Taha: That's super interesting. Cause a lot of people I think might get intimidated by this, but when you break it down that way, it doesn't seem so difficult. I'm [00:20:00] actually, really, I want to take your course.
[00:20:01] I'm like super hyped about it. I used to do long-term investing. I pulled all my money out when COVID happened in March and I was doing really good, but I was more of a buy and hold or maybe I guess I was a swing trader. I would just change
things around every few months. So maybe that's technically a swing trader.
[00:20:19] Really interested in your course. So tell us about your course, where can people find it?
[00:20:22] Teri Ijeoma: Sure. And Hala, I just want to make a point of that. Oftentimes, people do say that you should be a buy and hold investor, but then you have things like March of 2020 when COVID happened and the whole market falls, and a lot of long-term investors saw their accounts go down.
[00:20:37] 65% and yes, they can say if you just held onto it, it came back up to where it was. But as an active investor, we're a little bit more flexible, so we can actually take our money out, get back in when it's at the lows and then ride that higher and make some additional gains. We wouldn't just have to wait until our money came.
[00:20:57] So I think that you're a great example of someone who, you [00:21:00] were in it for the long haul and then you saw something happen to your account in March. So I think that's a great example. And then you asked me about the course, right?
[00:21:09] Hala Taha: Yes. Tell us about where people can find the course, because I feel like it's super valuable and if there's any like discount, my listeners can have. Let us know.
[00:21:17] Teri Ijeoma: Yes. So find the course at tradeandtravel.com. And I actually say that's a free webinar. I'm going to give your listeners a free webinar, to first learn how I teach people to make a thousand dollars in a day. Cause there's four set things that you have to be good at. Like one, you have to be good at picking the right companies.
[00:21:35] Cause that's a downfall girl. When I first started, I picked all the wrong companies. You can't be good if you're picking the wrong company. So we start there, then we go into risk management and know one of the biggest fears that people have is losing their money. So I actually teach you how to protect yourself from losing.
[00:21:52] So we talk about things like there's an order type called a stop loss. How do you put that in it, takes you out of the trade. If your money starts going down, [00:22:00] or what about checking your reward to risk ratio in advance? We talk about that and risk management. Then we go into charting, which I told you before is like, how do you find the right price to get in and the right price to get out?
[00:22:12] Because there been several great companies where it just wasn't the right time. Even Apple, Apple's a great company, but there've been times where it was like, it fell right after you got in. So you can figure that out by reading charts. And then we go into a trading plan to take all the emotions away, like so that you're not staring at your phone all day or nervous.
[00:22:32] If you have a checklist, which I give all my students, it's a trading plan, then you can take the nerves away. So I have a free webinar talking about all those things at tradeandtravel.com.
[00:22:44] Hala Taha: Amazing.
[00:22:46] Thank you for sharing that with us while we still have you for about 20 minutes. So I am definitely going to ask you about a lot of those things that you just mentioned.
[00:22:53] Let's start about how we can get started. First thing we got to do is open up a brokerage account. Is there a platform
[00:23:00] that you recommend in particular?
[00:23:02] Teri Ijeoma: Yes. There's one that I use. And a lot of my students use it's called trade station, but I actually am going to recommend a couple of new things to your audience, because I think like you guys deserve the best.
[00:23:13] So there's a platform called trading view. It's free and you can also do it, use it as a simulator. So you can do practice trades on it, and it's called tradingview.com. So check that out and then you can connect it to your brokerage. So even if you're using a different broker, you can practice in trading view and then press go and it will execute in your brokerage account.
[00:23:36] So I really liked that tool. There's another tool. I like that a simulator as well. It's called Rapunzl R A P U N Z L. They don't spell it all the way. So that's why I spelled it out, but they let you practice with $10,000 of fake money, but you can actually practice trading in there as. So I think actually referring you to brokers is great, but I also think letting you know about
[00:24:00] simulators, where you can trade with fake money is even more important because I want you guys to practice before you just jump in and start trading.
[00:24:08] Hala Taha: I think that's amazing advice. I didn't even know that they had simulators. That's really cool. So something else that you taught me is about margin accounts. I was listening to you and I heard that you recommend, opening a margin account. So can you explain what that is?
[00:24:23] Teri Ijeoma: Yes. So this is risky. I'm putting that out there from the jump.
[00:24:28] This is a little risky. However, it is so essential. This is one of those things where nobody tells you it's even a possibility, until like you find out, like in the whispers, in the hallway. But this is so important. So what it is certain brokers will let you trade with two to four times your cash amount.
[00:24:50] And I'm going to repeat that certain brokers will let you trade with two to four times your cash amount. That means. If you have a account [00:25:00] with Merrill Lynch, that's connected to bank of America, they let you trade with two times your cash amount. If you have $2,000, they let you tray with 4,000. What or with train station.
[00:25:11] And when I was telling you guys about before they do four times your cash amount. So if you have $2,000 in your account, you can actually trade with 8,000. Now, why is this important? It's important for a few reasons. And I know somebody is just cringing that I even mentioned. Terry. Why did you say a margin account?
[00:25:27] That is so risky? Yes, but that's why we do a whole class on risk management. That's why we teach you on the front end, how to protect yourself. However, it allows you to do bigger trades, which makes you able to also trade with the higher value stocks. So for example, say, oh, I only have $2,000 in my account, but I really want to buy one share of.
[00:25:47] One share of Amazon is $3,500. I can't afford that, but Amazon moves like a hundred dollars a day. What if that was my goal for the week? I'll need is $100 a week. All I needed to trade was one share [00:26:00] that margin account would allow you to trade a higher value stock. Another reason that margin accounts are good margin accounts, let you trade quicker.
[00:26:09] So in a regular brokerage account, without margin, you have to wait for three days, three business days for your money to come back. So say I sell, I'm still talking about Amazon, so we'll keep going with that analogy. And now. I say I sell my Amazon stock. It would take three business days for that money to get back into my account and then me to be able to trade again.
[00:26:29] If you have a margin account, you actually can start trading with that money the next day, because they use that margin to refill your. And then the last thing, that I love about margin accounts is you can make money on the way down. So many people think the only way you can make money is by waiting for the market to go up.
[00:26:45] I buy low and I sell high, but there's something called short selling. Where you can make money as the market falls. I see you nodding like you, you know this. So like you can actually make a lot of money when the market falls, but you can only do that in a margin account. So you [00:27:00] just, it's a, it's an easy check mark on your application, select that you want this type of account and it's like a line of credit.
[00:27:06] You don't have to use the extra money, but it's just there if you need it. But those are some bonuses of a margin account.
[00:27:12] Hala Taha: That's really great. So what's the risk involved? Is it that if you lose money, you have to pay that money back?
[00:27:18] Teri Ijeoma: It is. So if you lose that money, then you have to put more money into the account to replace it.
[00:27:24] And another thing too is there is a small interest. That you'll pay on it. So if you, have you ever had a line of credit on a house, like a home equity line of credit or heard of that?
[00:27:34] Hala Taha: Not on a house, but I've heard of it.
[00:27:36] Teri Ijeoma: Okay. So on a house, if you do a home equity line of credit, they just use the equity to give you an account of money.
[00:27:42] And if you use that, you pay like a small interest, that's the same with this kind of account for trading. If you use the money you pay. Depending on the broker, it's very different, but it's usually like $3 for every $10,000 that you use. It's usually really small, but they'll discharge you interest for using that money until you [00:28:00] sell your stock.
[00:28:01] Hala Taha: Yeah. So basically if you have a really good feeling, you did your homework, you feel like this is a very safe investment. You just wish you had a little bit more money to get more stocks or whatever. This is a good option for you. So I love that another. Whispered that I heard you mentioned on another podcast that I was like, wow, I've never heard of that.
[00:28:19] Is opening up your account as a joint bank account. Talk to us about that. Why is that important?
[00:28:26] Teri Ijeoma: So many people ask me about taxes and. If you are a trader, an active trader, you actually shouldn't worry so much about taxes. Because you literally are going to be charged like regular income, any money that you get, it'll be the same as if you had an Uber job or some side hustle job.
[00:28:42] You just report the income at the end of the year and you pay the gross tax bracket of whatever your full amount of money is for the year. This is actually perfect for when you lose your job, your regular income is low, and then you make a little money from trading, but you're still only taxed at the tax bracket.
[00:28:58] Your normal tax bracket. So some [00:29:00] people are really scared, but they shouldn't be in that same vein. If you do a joint account, then someone else can access the money in your account without paying taxes. So for example, I did a joint account with me and my mom, if I had a different type of account and say something happened to me and the money was transferred to her, she'd have to pay taxes on it.
[00:29:19] But since her name is already on the account, if something happens to me, she just has access to the money. So that is something else I encourage for people that do have family members that they want to have access to the money.
[00:29:33] Hala Taha: Really interesting. Awesome advice. Okay. So next step, we need to choose a stock or an ETF.
[00:29:41] Correct. Is there anything else that we could choose?
[00:29:44] Teri Ijeoma: So you open your brokerage account. You choose, there are several asset classes, but the ones that I teach are stocks and options. So stocks are a regular company. Options are a hundred shares of that stock and it's like a little bit it's [00:30:00] a contract that says, I agree to buy a hundred shares or sell a hundred shares at this date in the future.
[00:30:06] So those are the two that I teach. ETFs, which you mentioned are just exchange traded funds, but they have several stocks in them that you can trade at one time. I like them because one, you could pick like a sector, say that you wanted to follow all of healthcare. There's one ETF that I like called XLV. Now you're trading all of healthcare instead of picking, I want to be in this vaccine stock and this Johnson and this such and such.
[00:30:35] And disclaimer, I'm just educational purposes only. I'm not telling anybody to invest in anything now, but you can actually invest in a sector instead of just one company, that also goes for like technology, say you like all the technology you can pick, like XLK that does all technology stocks, but ETFs are safe ways to invest in a group of companies instead of just one.
[00:30:57] Hala Taha: Okay. So let me just like replay this. So [00:31:00] stock is like one company options is a hundred. Shares of one company and you have a contract, you have to sell it at a certain time. Is that correct? And then ETFs is a bunch of companies. And it's one share of a bunch of companies.
[00:31:16] Teri Ijeoma: Yes. You're going to be my number one student.
[00:31:18] I already see it like go girl. Yes.
[00:31:21] Hala Taha: That's so cool. I feel like it's so much simpler. Like when you're such a good teacher. Cause I feel like usually you hear that and you get all like nervous. So where do you find funds? Like how do you know what funds exists? What's a good resource to figure that out.
[00:31:34] Cause I feel like that's not obvious.
[00:31:36] Teri Ijeoma: Yeah. I've been trading now for 11 years and I have about 30 companies on my watch list. Which I've still been trading for most of the time, that I've been trading. When you joined the course, I actually will give you that list of stocks and they work really well. So I'll just say that.
[00:31:54] And then for the ETFs, there is a website that's called etf.com. Check that [00:32:00] out and you can Google in there a sector. Healthcare. And it'll tell you all the ETS that fall in that sector. So that's another way to check things out, but honestly, I'd go with the tried and true way in the corridor.
[00:32:11] Join, train, travel, and I will give you all the stuff that works.
[00:32:14] Hala Taha: Awesome.
[00:32:14] Okay. So let's get into how to pick a stock, a single stock. So I had this guy, Robert Leonard on the show. Millennial investing. And he talked about qualitative versus, quantitative factors and he believes that qualitative factors are more important.
[00:32:33] So he likes to look at things like, how long have they been in business? Are they trending? What, what's their future? Are they innovating? What's in the, 10 K that's not so obvious. And he's looking through for qualitative information. As opposed to just looking at the financials.
[00:32:48] So what's your perspective on that? How do you pick a stock?
[00:32:51] Teri Ijeoma: It sounds like he might be a fundamental investor. So there's fundamental investors that look at, just like you said, they're looking at the [00:33:00] earnings reports. They're looking at the forecast and really diving into the research of the company.
[00:33:04] And then there's people like me that are technical analysis traders. So we're looking at the stock chart. We're looking at price movement, and we're usually not in a company for the long haul. So we're not as interested in. 10 year outlook. We really are looking at where is it going to move in the next month to week?
[00:33:24] So for me, technical analysis is more my thing. I look at candlestick charts, but I will say when I'm looking at a company, I want it to be a company on an uptrend. And I usually look over the last year. So I'm not looking at companies that have been going down. Over a long period of time. I'm still looking at high value company.
[00:33:42] So I don't like penny stocks, anything less than $10 is usually not my thing, actually never my thing. And I'm still looking at companies that move at least a dollar a day because I'm trying to reach for a goal and need the stock to move. So there's some like blue collar blue chip [00:34:00] companies that really only move a couple cents a day.
[00:34:02] That wouldn't be one that I would trade because of. To actually make money each day or week.
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[00:35:57] This episode of YAP is brought to you [00:36:00] by Storyworth. This holiday season. I want to give a gift to my loved ones that makes them feel special and unique. Just like the relationship we share. And that's why I'm giving everyone I care about StoryWorth, is an online service that helps you and your loved ones preserve precious memories and stories for years to come.
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[00:38:14] That's really interesting. So you mentioned something called a candlestick chart. Could you explain to us what that is and how we can read candlestick charts and what the promise of that is?
[00:38:24] Teri Ijeoma: Sure. And definitely check out Trade and Travel on YouTube too. Cause we have a video all about candlestick charts, but it literally tells you like each candle state, tells you where the stock price opened, where it closed and then where the stock price moved throughout the day.
[00:38:41] And we, it looks like a little candle, like a little rectangle with lions coming out. But the thing is, when you put those candlesticks together, it tells you the story of that stock. So it tells you where there's a lot of people buying and where there's a lot of people selling. And when I say people, these are big banks, like Morgan [00:39:00] Stanley, Goldman Sachs, big banks with like millions of orders at a time.
[00:39:05] But when you look at the direction of those, you can see like, dang. All of a sudden this stock just stopped right here. Like the candles do a little formation and then, a whole, there must be a lot of orders to buy at this stock price. And you can do the same even on the, as they go up. And you're like, whoa, this all of a sudden, the candles just stopped and changed direction.
[00:39:24] Right here. There must be a lot of orders to sell. That's what we're following, to dictate when we want to get in and buy.
[00:39:33] Hala Taha: Awesome. So what are the ways that we would hedge our risk when it comes to day trading? What are the mechanisms to make sure that, things don't go really south?
[00:39:42] Teri Ijeoma: Yes. Let me do it.
[00:39:43] Okay. First, I'm gonna just tell you about the worst trade I ever had ever. It was Pandora stock. One, I chose the wrong company from the jump. I like to choose companies that are also the best in their sector. And I thought, oh, everybody's listening to the radio on Pandora. I did not think about [00:40:00] Spotify, YouTube music, Apple music, so many other competitors that were better.
[00:40:05] So one, I paid the wrong company from. Second and all these things I'm telling you are also things that I teach to mitigate your risk. One picking the right companies. Then, I was so bold. And so like greedy that I bought 8,000 shares girl, 8,000 shares. If it went down a dollar, I was down $8,000. Also monitoring your quantity size is a way to protect your risk. And I actually have formulas to help you pick all of these things. Like how do you pick how many shares? Another thing I did wrong, was that I was trading during earnings is when a company reports, how they're doing. But it's so risky because the company may say they did wonderful and the stock price drop, or they may say that they did horrible.
[00:40:50] And it just, all of a sudden jumps up. It's like playing Russian roulette, right? Don't trade. Like timing is also important. Not trading during earnings, looking at [00:41:00] their calendar. Then reward to risk ratio. Oftentimes we start hearing about a stock and we're like, oh my God, everybody's in it. I'm late to the game.
[00:41:10] So many people are making money and by the time we get into it, the stock is at highs. So as soon as we get in, it starts falling. I call that FOMO fear of missing out. That's a big mistake in trading. And then the final one after you think about your reward to risk ratio, the final one is just knowing when to exit a stock.
[00:41:29] Oftentimes. We get in, but we have no exit strategy and actually there's one other one part of this exit strategy is using a stop loss is you thinking about, if this trade goes wrong, where am I going to get out of this trade? And you can put an order type in that sits in the computer and it takes you out.
[00:41:46] But also in the same exit strategy planning, you need to have a target in mind. A lot of people will get into a trade and they'll say, you know what? I'm just going to let it run. No girl, you are not just going to let it run. I need you to get out or
[00:42:00] Oregon. I need you to have a target in mind before you even get into the stock so that when it hits that, you can get out and take your profit.
[00:42:09] So those are some of the mistakes and the solutions for some of those mistakes that I often see to protect yourself as a trader.
[00:42:16] Hala Taha: Oh, my gosh. That was so good. So talk to us about the emotion involved, because what you just mentioned was really an emotional thing. The fact of, if you see it going up, you're like I don't want to take it on.
[00:42:27] I just want to let it ride. I like you get greedy. So what are the emotions, that we need to watch out for when it comes to this stuff?
[00:42:35] Teri Ijeoma: Trading is so emotional. I'm so glad that you brought that up because even on that one trade, the one I told you was my most horrible trade. Yeah. Girl. I was Boohoo crying.
[00:42:45] I almost quit trading all together that day. I called my mom and I was like, I'm quitting. And she was so calm. What? She is not a calm person. You're going to meet [00:43:00] her. And she's usually like the super bubbly, but she told me in that moment, she said Terry, how are you going to get your money back? If you don't keep going.
[00:43:09] And so all of a sudden I'm still crying. I can like barely see through the tears, but I'm like, okay, fine. Let me try to figure it out. But it is emotional. Some of the emotions, like you're going to get greedy sometimes when you see it go green, you're going to want just one more dollar. And girl, there have been some million dollar days. Where I did not take my profit because I just wanted a couple more cents.
[00:43:32] And I risk my whole million dollar gain for just a couple more cents. And that's stupid. It sounds so simple. But in your mind, when you're in it, you're like, oh, it's going to go up just, you have hopium. It's going to go up just a little bit more. And then when it falls, there's also this despair. And I think sometimes people start questioning themselves as a person.
[00:43:53] And I don't want to scare anybody from trading. I trading plan will help you with this. When you have a set of this is what I do [00:44:00] every time, then it takes some of the emotion out, but we're just, we're talking real talk right now. When your trade is going down, you feel a little hopeless sometimes.
[00:44:09] And then another thing is sometimes, I caught myself doing this. I would question myself like, man, Terry, that was so stupid, better than that. Dang, you do this every time, but I think that's a discipline that learning, how to become a better trader has also. Taught me how to become a better person, because anytime you have.
[00:44:29] A struggle or a hard time in life. Like you have to learn how to not directly push it back to yourself and feel like I'm just bad. No, the situation is bad. This is a hard time right now. This happened to me, but it doesn't mean that I'm a bad person. So these are all things that you learn as you become a better trader.
[00:44:51] Hala Taha: The other thing I imagine, as you probably have a set of rules or values that no matter what the environment is. Got to stick to your values. And I feel like that also [00:45:00] can help in real life too. Like just learning that skill and not just being reactive to everything.
[00:45:06] Teri Ijeoma: It does. It definitely does.
[00:45:08] Hala Taha: Okay.
[00:45:09] So last a stock related question, and then we'll start to close this out. What is the risk to reward ratio? How does that work? I'd love to learn more about that.
[00:45:19] Teri Ijeoma: Yeah. So as I'm looking at the stock chart and I'm determining, okay, this is the price where I want to get in, I can also look at that same chart and say, okay, this is where I want to get out.
[00:45:30] As I'm looking at that's my risk from where I get into the trade, to where I'm planning to get out on the bottom side. If it goes wrong, that's the amount of risk that I'm taking. Now I have to determine is this trade going to give me three times? The risk that I'm taking on for this trade.
[00:45:48] And you can actually figure that out as well, by looking at a stock chart. That's why I say I'm a technical analysis trader. I'm very heavy on looking at stock charts. If the I can calculate that the [00:46:00] reward is three times the amount of risk that I found on the chart, then I'll take the trade. But if the reward is not three times the risk, then that trades not worth it.
[00:46:09] I'll go onto another stock or I'll just wait. And sometimes traders have to learn how to do that, to just be patient and wait for the right opportunity.
[00:46:18] Hala Taha: Amazing. Terry, this has been such an incredible interview. The last question I ask all my guests is what is your secret to profiting in life?.
[00:46:29] Teri Ijeoma: I'm a very spiritual person.
[00:46:30] So I do say that like believing in a higher power, believing in God and believing that there is a reason, why I'm helping all these people, because the world will be a better place. I think that's been really a big blessing for me. And then just persistence. Keep going. Even when it gets tough, just keep going.
[00:46:47] Hala Taha: I love that. That's beautiful. Where can our listeners go to learn more about you and everything that you do?
[00:46:52] Teri Ijeoma: Definitely check out that free webinar at tradeandtravel.com and you can find us everywhere. At Trade and Travel, [00:47:00] YouTube, Instagram, everywhere.
[00:47:02] Hala Taha: Cool. We're going to stick those links in the show notes.
[00:47:04] Terry, such a great interview. So jam packed with information. I think my listeners are going to love it. I can't wait to collaborate again. I can't wait to meet you in person tonight and thank you so much.
[00:47:14] Teri Ijeoma: Same here. Thanks for having.
[00:47:18] Hala Taha: Thanks for listening to Young And Profiting Podcast. And my conversation with Teri Ijeoma. Terry, decided to take a huge leap of faith and invested half of her salary into a class that would teach her about stocks and day trading.
[00:47:31] This big risk paid off tenfold. And she's now a professional day trader who has her own insanely popular course on teachable. That teaches everything people need to know about trading. There's so much information available to us about day trading and stocks, that it can be pretty overwhelming to get started.
[00:47:49] But Terry gave us her tried and true advice on how to begin and stresses the importance of investing in ourselves, to be able to level up our lives as well as our financial future. Terry, [00:48:00] covered the basics of getting started and I'm going to go over a few key points she made to let them really sink in first things.
[00:48:06] First, you've got to open up a brokerage account. Terry told us some great suggestions for accounts and also for trading simulator websites that can help us practice before we actually work with any real money or stocks, all the sides that Terry recommended will be linked in our show notes. Now let's move over to some definition.
[00:48:25] Day trading is the act of buying and selling a stock account on the same day to turn a profit. The key is you've got to do this on the same day. Now swing trading is buying a stock and holding it, even if it's just over 24 hours or longer, and then selling it, there's no right or wrong answer on whether today trade or swing trade, or even long-term investment.
[00:48:48] First start trading, just pick whatever works for you and your goals best. The next step would be to choose a stock or an ETF. While a stock is a regular share in a company. An [00:49:00] exchange traded fund is several stocks rolled into one that you can trade all at the same time. Again, there's no right or wrong in which option you choose.
[00:49:09] Whatever is the most aligned with your goals is the one you should go for. And finally, don't forget about the emotional side to trading. There's going to be good days and bad days. The market is always fluctuating, but dealing with these emotions as they come and knowing that your trades and your investments, don't define you, is going to carry you through the ups and the downs.
[00:49:30] There's so much knowledge that Terry shared, and I definitely recommend everyone checking out her free webinar, as well as her paid course atTrade and Travel after all. She's the number one course on Teachable. For a reason, if you want to hear more about investing and turning investments into financial freedom, go check out episode number 84, The Path to Financial Freedom with Peter Mallouk.
[00:49:52] Here's a clip from that episode. So tell us why is it so important to know exactly what we want before we actually start
[00:50:00] investing and start putting our money in stocks and things like that.
[00:50:02] Peter Mallouk: A lot of us just think about when we want to make a lot of money, that's what a lot of us think we want.
[00:50:07] And so we then go to somebody or we do it on our own and say, I'm going to buy things that make a lot of money, but really we want to make a lot of money why, to do what is it to. 120,000 a year when you're 63, is it to have, the money to pay for someone's college, whether it's a public school or private school for four years, are we going to cover room and board or not?
[00:50:28] Is it because we want to give 10% of our money every year to charity or something different if we have those pieces in place, which should come first, if we know what the goal is, first, it becomes very easy to reverse engineer our way to how do we. How do we put the pieces in place to make those things happen?
[00:50:47] And sometimes those are aggressive investments. Sometimes they're not sometimes to increase the chance of hitting a goal. You get more conservative. So let's say you have somebody that's super lucky and they've got a million dollar. And they need [00:51:00] 50,000 a year for the rest of their life. And they're retiring today.
[00:51:02] If they're super aggressive, they could actually screw up something, that would work out just fine if they were moderately invested. So we really have to know what the objective is because the objective is not always a great, the biggest pile of money next year possible. It's usually to produce something you personally want, and then you back into the investments that make sense to get there.
[00:51:22] Thanks for listening to Young And Profiting Podcast. Make sure you connect with me on social media. You can find me at Instagram @yapwithhala or LinkedIn. Just search my name. It's Hala Taha.. Big. Thanks to the YAP team as always. This is your host Hala Taha, signing off.
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