Markus Heitkoetter is the CEO and Founder of Rockwell Trading. A former IBM director who made the bold decision to quit and migrant from Germany to Austin TX in 2002. From his passion for trading he created his trading company in 2005. He teaches people his simplified trading process to help people achieve their trading goals.
His skill of trading has earned him multi-millions. And he has taught over 300,000 people how to trade. Markus is an author of two bestselling books one is “The Simple Strategy” with the focus on teaching traders to improve their trading with a simple trading method.
Hello and welcome once again to Dr. Nilda Business Foresight Show. Today I have my co-host with me Rachel Calderon. Thank you for joining me Rachel.
Thank you for having me again.
My special guest today is Markus Heitkoetter. He is the CEO of Rockwell Trading. He has been trading personally for many years. But, eleven years ago, he decided that he would teach the techniques, the skills, and the strategies of online trading which is awesome. He considers Rockwell Trading the front line of defense. That’s what he calls it the front line of defense in forming a revolutionary figure who leads the underground movement. I love this. The underground movement against the financial advisors and the propaganda that that they put out. Markus inspires you to take control of your financial future and much like him have this breakthrough into multi-million-dollar status. He has taught over 300,000 people, I’ve been very fascinated by that, how to trade. He makes it so simple. He is also an author. He lives in Austin, Texas. He is a father of two and I am so honored to have him here because this is a topic that has been very overwhelming to me. I’ve never really understood trading and he’s just simplified it. He’s been able to master simplification of trading so thank you for being here with us today Markus.
Oh, absolutely thanks for having me on the show that’s exciting.
This is fascinating. Of course, I have a lot of questions. I really just want to jump into these questions because you came you were professional you worked for IBM. That is the dream job for many.
That’s what I thought. I mean this is what happened so you see I did my first trade actually in 1989 when I was still in high school. I was in high school and I was fascinated by trading so, I wanted to trade. Now this was back in 1989. This is where in Germany we didn’t have any specialized brokerages so you had to go to a bank to open an account. I went to Deutsche Bank with all of my disposable income which was fifty deutsche mark that’s like fifty dollars. Anyhow I went there I talked to the banker and I said okay I would like to open a trading account. He said okay well let’s see where that goes. He really allowed me to open a trading account with 50 deutsche mark and he said well Markus what stock do you want to buy? Here’s how I picked my stock. I asked him what stock can I buy for $50? One share of VW Volkswagen and I was so proud. There I was the owner of a stock. Anyhow so the next morning I went to school and during the first recess break actually I ran to a payphone. In 1989 we didn’t have cell phones so, I inserted my 20 cents called my banker and said hey how are we doing? He said well the stock has risen to 50 dollars and 20 cents. I was excited it was working it was making money. During the second recess break I ran to a pay phone inserted my 20 cents called the banker and said how are we doing? He said well it’s now at 50 deutsche mark and 30 cents. I thought this is awesome so as soon as I got home from school in the afternoon and the markets were closed I asked him again. I said how did we do today? He said well we’re at 50 deutsche marks and 40 cents. I was making money I was so excited so next morning I did the same thing. I ran to the pay phone in the first recess break and the second recess break also after school. On the third day of my seventh call to the banker this is when he said Markus how much do you want to make? I said well you know what I would like to make 10 deutsche mark because I mean if I made 10 deutsche mark this would be 20% based on the stock price. This would be awesome so he said all right done deal come to my office this afternoon I’ll give you the 10 deutsche mark but stop calling me. profitable trade but this is when I realized that is probably not a sustainable trading strategy. My parents convinced me to go to college so I went to college. I have a degree in computer science and in business. Then I started working for IBM and this was back in the nineties. I mean back in the 90s working for IBM was great I quickly climbed the corporate ladder. Within three years I was a director and I had a responsibility for what IBM called EMEA that’s Europe Middle East and Africa. Now I was traveling the world I mean I was flying business class. I stayed in fancy hotels but see this were I got burned out. I mean I was on the road six out of seven days and at first it was fun. But, after a while, this is when working 60, 70, 80 hours you just start realizing that you don’t have time for yourself and your friends. I remember that moment when I was sitting in a fancy hotel room in Vienna overlooking the prater it was beautiful. This is when I realized oh my gosh I don’t have a life because and at home they were celebrating a friend’s birthday. They didn’t even invite me. I was too busy. I was traveling. I’m in Madrid. I’m in Paris. I mean I was a hotshot and that’s when I made a decision. I said okay that’s it I got to get out of the corporate red race. I have to do something different and this is when I made a drastic decision. I was so burned out that I said I quit and I moved from Germany all the way to Austin Texas. I moved from Germany to Austin to become a professional trader. That’s how it all started this was way back in 2002. Wow which really wasn’t that long ago. Think about it that’s not that long ago to make that huge change. So, you leave the corporate world and you start a business and instantly you become a millionaire, right?
No, I mean I came here with thirty thousand dollars in my pocket. Twenty thousand dollars I put into my trading account and ten thousand dollars for living expenses. I moved into a small apartment. I bought a used car. What a different lifestyle from what I was used to but I thought I’m free. I can do whatever I want. I could trade and have lots of money. Oh, it didn’t work like this. After a few months, I already lost half of my account because I mean I was trading like a maniac. I mean why can’t I figure it out? I think I’m a smart guy. I went to college. I climbed the corporate ladder. I mean I was doing well for IBM and I couldn’t figure it out. I was almost ready to give up and go back working for the man but this is when I looked at my traits. I finally discovered oh my gosh here’s what I did wrong! I knew how to fix it and so my trading turned around. Yes, this is how I became a better trader. So, talking about the business how did the business get started oh my gosh you see I was just at home doing my own thing trading. This is when friends and neighbors asked what you do for a living your home all the time? Initially the story that I told is that I’m a rodeo clown and that’s why I moved from Germany to Texas, to be a rodeo clown. They wanted to know what I’m doing and I said oh come on over I’ll show you here I’ll share my screen with you and show you exactly what I’m doing. Friends came over and neighbors came over. Before I knew it, there was a lot of people in my house. This is when I decided that it might be better to just put everything that I know on a website and this was in 2005. I founded it Rockwell Trading and I’ve put everything in a website with my brother and my best friend and well this is how it all started.
So, I guess why trading because I know that for me it’s like that would be like the last thing I pick. What were the problems that you decided to solve so why trading?
Well you see I read this book from Robert Kiyosaki Rich Dad Poor Dad have you read it?
I mean you have these quadrants where you have E being an employee and S being self-employed and that the goal is to move from the left side to the right side. This is where you’re a business owner where you have hundreds of employees or the ideal is the I where you have money working for you. This is what fascinated me. This is what I wanted. I no longer wanted to be on the left side. You might have seen what Robert Kiyosaki does in that picture this is the left side. I didn’t want to be on the left side. I wanted to move to the right side but I didn’t want to have a big business where hundreds of employees are working for me. I wanted to have money working for me. If you want to have money working for you I thought, there’s only two ways. There’s investing in real estate and there is trading. Now I looked into both and actually I’m doing both. I am heavily rested in real estate. I have a few apartment complex’s here, a few single-family homes but what I like about trading is it’s easier for me to control my risk. It is more liquid you see if I wanted money on my trading account I could push a button today and tomorrow it would be in my personal account. Try that with real estate, right? So, for me it’s more liquid and for me it is easier to control than real estate.
I’ve spoken to financial advisors. Truth be told that when I’ve asked questions and when I’m done with my conversation I think I honestly feel more confused at the end of that conversation than I did initially. It’s the total opposite with you because you make it very simplistic very comprehensive which I’ll tell you works for me. It’s my teaching style and I think it’s my teaching style because it’s my learning style. Trading is pretty complex it’s not as easy as 1 2 3. Let’s talk about that.
I disagree and here’s why you see many people may be accomplished when trading. It is all about limiting your risk. You definitely want to limit your risk. Now think about it if you limit your risk and you risk a dollar but on the other hand you’re trying to make a $1.50. So, you’re not buying a stock and holding it forever. I mean you’re having a profit target and when the stuff moves in your favor you’re just taking money out of the markets. Let me give you an example let’s say you buy a stock for $100, right? You buy stock for $100 and then you say you know what if I’m not right and it moves against me then you’re liquidating. You’re selling it again when it hits $90 so you risk $10, right? Just a little bit it’s not wiping your account it’s just a little bit. On the other hand, if it moves in the right direction as soon as you see that it moves to $115 this is when you take profits. So, you’re risking $10 trying to make $15. Now think about it this is when you could actually throw a dart because you’ll make money even if you’re wrong on half of your trades because you lose $10 on your losing trades but you make $15 on your winning trades. This is why the entry and all this stock selection bla it’s not that important. It’s more important that you manage it so that you actively get out of the trade if it goes against you and also take profit if it moves in the right direction. Does this make sense?
It makes perfect sense. I love your passion. You’re so excited talking about this and I’ll tell you honestly when it comes to numbers I cringe. This is a conversation between Rachel and I all the time because Rachel loves numbers. She gets numbers. I just become very overwhelmed but this is simplifying. It’s not even talking about the numbers it’s look you do this if you see if going down you pull out you’ll put it somewhere else. If you make $15 at the end you lost nothing. That makes sense.
You see in these days that’s a beautiful thing. When I started trading I was reading quotes in the newspaper. These days I mean it’s 2017 we have all these fantastic software tools that can help us make the best decisions. We have this where it can alert us on our cell phone and say okay now is the time to sell because it moved against you. Now is the time to sell because it moved in the right direction. So, if we utilize technology to our advantage here it’s getting really easy. You said it in the introduction this is where I’m really on a mission here where I say you know what trading doesn’t have to be that complicated. You don’t have to worry what a stock is doing and what a company is doing and analyzing all this stuff with PE ratios and projected revenue. I mean all you can do these days is use software that picks the best stocks for you and then you just apply what we call a stop loss. It’s where you’re limiting your risk and a profit target that automatically takes profits when the stock is moving in the right direction. It can be really simple. I really want you to do it.
We are both very interested in doing that. But, I love the passion that you have for it because I mean working in the corporate world we met a lot of stock guys. They didn’t have the passion that you have. I mean they were just like more angry.
When you hear the word stock broker for example a stock broker in these days I mean he’s just a glorified customer support. All he does is take orders from somebody and place the trades. So, this is why they’re usually pretty grumpy and pretty angry because they don’t have the freedom. I mean the guys that you meet in New York City they have a job they have to get up in the morning and have to be there at eight o’clock to five o’clock. They don’t have the freedom that we can have as traders sitting in the back yard just enjoying the day because right now there’s nothing for me to do for trading. I did it earlier this morning for 10 or 15 minutes just checking my positions. If I need to get out because they hit my loss or if I have to take profits and yes, I took some profits this morning yeah good Monday. Anyhow so this is why I’m a little bit happier than maybe the guys who are trading or who have trading as a job because that’s what you have as a stockbroker.
How is Rockwell trading innovative then?
How is it innovative? Well it’s because we were taking all this complexity out of trading. So, you see I can trade in just an hour you see? Most other companies who are in our space who teach you to trade they say oh my gosh no you have to come to a three-day course. And after a three-day course you have to go for five-day course and then you have to draw a measuring program which goes on for years. And oh, my gosh it’s so complicated to become a trader now. I mean I really can teach you a trade in 60 minutes or less and this is why I believe that we are innovative because we’re different. We are not trying to sell you something where you have to learn for the next few weeks and months because come on. I mean this is 2017 we want instant gratification and with the technology we can have this. This is what I teach this is what we show our students and everybody who wants to hear. They’re not once a year because I’m really passionate about it.
Which leads to my next question you don’t have a line. First of all, your office is on a plane. Secondly, you don’t have a brick-and-mortar. You actually teach all of this in the most comprehensive way and they can honestly sit home in their underwear and trade because you don’t only make it simplistic. You don’t have a line outside of your office to teach them this. They come in you have these short seminars you teach them what to do and they do everything online.
Right you see most of the stuff is really done online. I mean this is why we do the interview right now. Think about a few years ago, right we would have sat in a studio somewhere. I would have to fly somewhere to do this interview now technology is making all this possible. The same is with learning. I mean this can all be taught online through videos and yes, you’re looking at my office right now. That’s it so that’s the beautiful thing about it and yes, you’re right I mean every now and then I’m doing live events because some people like to learn in a live environment. So, that is why I do live events they’re anywhere from one to three days where I invite you to come and you can get the same information on DVDs. But some people prefer being immersed for three days really being focused and examples and hands-on and trying the software and asking questions. So, that’s what we did.
I love that because you’ve made it very easy for different types of learners as well. I’m very into learning styles because of my own personal experience with learning styles. So, I love the fact that you do it live as well as giving them a DVD or audio whatever it is that can help that person through this process. So, I love that.
Well absolutely and you see it’s also about commitment. I mean everybody is more committed if you’re traveling somewhere. If you’re taking three days out of your schedule than just buying an online course. I mean buying an online course is easy and then it usually collects dust on your hard drive, right? But whenever we commit to some they really take this seriously. I’m spending $1,000 in flights I mean the seminars are not expensive I’m charging 500 bucks for three days. I mean that’s not the point but it’s a major expense to get there to be away from time and family but this is where you’re showing yourself you’re more committed. You’re ready to think and yes, you’re taking it more seriously and that’s what I love about the live events.
Right but to me the most fascinating is that you are really, I don’t know if you’re doing it consciously or unconsciously, really catering to the different learning styles. There were three different learning styles. There’s the audio like there’s the auditory which is people that learn like Rachel. She can hear something and she’ll capture the whole thing that she can run with it. Then there’s the visual who have to see something. They see the video and they capture. And then there’s the kinesthetic someone like me who needs to hear it, needs to see it, needs to apply it hands on and then I can capture it. I’m off to the races. You really made it so it’s not only comprehensive but you’re catering to the different teaching styles.
The reason why I did the live events is because I just love that talking to traders and just working with traders who are individuals who are more committed to trading. That’s what I like about the life.
Well I’ll tell you have done more than you think. It’s funny because people may not even understand their own learning style but they know what they’re more gravitated towards. They’re more gravitated to being in a room. Their attention being very focused on what they’re learning and they’re actually practical. They’re learning. They’re hearing it. They’re actually doing it. Another person could see a video or another person can be auditory pop that thing in the car by the time they get to their location they really totally understand and they’re off to the races. So, you have really, that’s what I said it was unconscious, but this is genius. The way you have catered to the different learning styles and the simplicity.
I think that’s what caught my eye and my attention when we were talking in our last event. When I was like okay you have to explain this to me and when he sat there and just in like I think it was five minutes or less. I turn around and I run to Nilda and I said okay I said we’re doing that next.
I have a question because I’m foresight and innovation and future and I see in a lot of ways that’s your focus also. Teaching people how to position themselves for the future but how do you see Rockwell Trading moving into that future? Like how are you constantly learning new ways/better ways of making it not only more comprehensive but even adding other things to Rockwell Trading to make the process better?
Absolutely so once a quarter we are taking a whole day with the team where ask one question and this is how can we make this even easier for our customers? What else can we do to make it easier for our customers to learn and to understand? A few examples of one of the things that we did two years ago, is that we programmed our own software. It is because if you start trading and as explained the principles and then you need to go and learn a different software. The software’s are complex so I wanted to have a software that is really simple. This is why I got together with the programmer here in Austin and say you know what I want to have the software and it’s not allowed to have more than ten buttons. It needs to be that easy. Only ten buttons actually it has 11. The 11th button is the help so I let that slide. So, this is one of the innovations that we had. Then another thing is when we sat with the team and said how can we make it even easier for people to learn from us. I mean this is where we came up with the idea of live events and really it was less the explanation that you had which I really love. I mean I need to write this down it was more like you know what some people might prefer to learn in a live environment. So, this is why a year ago, we started adding these live events. Now we’re looking at it and we say you know what how can we make it even easier? This is why now we are looking into providing text alerts to make it really easy that you don’t have to sit it in front of the computer so you’re just getting a text message. Then you have to log in now for like regulatory reasons. I cannot trade for you because this would be the easiest way but I also want to empower you to learn it. To take control of your financial future so that you’re not dependent on me. I’m just trying to make it as easy as possible and this is how we constantly innovate by just asking this question. How can we make this even easier? It was a stinking six months ago, when I renamed my customer support team and my customer support team is now called customer success team because this is what they’re all about. Their task their only task is to make our customers successful so I don’t have a customer support team I have a customer success team that will help you to become successful.
Awesome. Okay, so, ten years ago, eleven years ago, you leave your job you start trading. Then that trading became your business. Look at all the things that you’ve done in your business. Now thinking back ten years did you imagine that you’d be an author or that you’d be in the position that you’re in today? I mean I know you knew how to trade so you had your financial piece down pact but did you realize that one day you’d be an author, you’d be a speaker, you’d be on stage? Did any of this come?
No. I mean this just came with the business and it was a total surprise. But, this is where I mean let’s go the path of the least resistance. I mean when there’s an opportunity. I mean I’m just looking okay there’s an opportunity and then I’m always looking let’s limit my risk that’s what I’ve learned in trading. If there’s limited risk also in business I’m going after the opportunity. So, this is why yes, I chose to speak on stages yes why I chose to put on live events because it’s a limited risk right. So, once you have this mindset okay let’s see what is the risk and how can we limit it? Then you can take advantage of all these opportunities.
Fantastic. So, let’s talk a little bit about the book.
Yes, that I wrote several years ago, in the beginning. It’s called The Complete Guide to Day Trading. So, for people who were interested in day trading and say okay what do I need for day trading? First of all, what does it mean? How much money do I need? What computer do I need? How much money can I make? What do I need to learn? This is all in the book the complete guide to day trading. Now this is teaching the basics and then I realized that many traders need a specific trading strategy. And this is why published a second book which is called The Simple Strategy which is one of my favorite strategies. This book is explaining this strategy in detail. Ow the books pretty much go hand in hand. If you have no clue about trading the strategy book will always almost be a little bit too advanced because you’re seeing charts and you’re seeing indicators. And you, way what are charts, what are indicators, right? So, this is why the complete guide to day trading is helpful for beginners who have absolutely no clue about trading yet. If you have been trading expecting to make profits and you’re looking for a strategy this is when the simple strategy would be a great book.
Now I have a question coming from the marketing perspective. You are like the king of the funnel system. You’ve been able to roll out yet another thing just from doing the trading, the books, the speaking and this is a whole other stream of income that you have now. Can you tell us a little bit more about that because that to me I mean you taught me a few little things and I just run with those little few tips that you’ve given me?
Okay. Yes. I mean a funnel is an automated way to turn prospects into customers and that is important for me because I don’t want my business to take away from my trading and my teaching what I really love. So, I don’t want to sit there all day trying to market. I wanted to find an automated way that people are becoming aware of what we are doing. If they say you know what that sounds cool learn more how they can systematically learn a little bit more and take baby steps until they decide alright. I will invest in one of these classes in one of these courses in the software because I mean when it comes to acquiring customers it’s all about what they need to know, like, and trust us. So, a funnel is a systematic way that they first get to know me then I hope that they like me because if they don’t like me they will not trust me. I mean that’s just how it is so, this is why funnel is a systematic way. First you give something little free that they get to know you then they see if they like you by asking for a small commitment. A small commitment that I’m asking for is seven dollars. It doesn’t break the bank and then you see that I over deliver and this is an important part of it. I mean you have to over-deliver even for seven dollars so that they say you know what if I get all this for seven dollars yes, I’m going to give you 97, 197, 297 whatever the next step is. And this is what I like about funnels and that’s probably my German mind and a little bit of the computer mind that I still have. How can we automate stuff? And that’s why I’m also very fascinated with funnels it’s just another great way.
How many leads would you say you gain per day with this automated system which I mean I think it’s a fabulous system?
It’s maybe around two to three hundred per day so we’re getting around 800 to 1,200 new customers every week. So, we’re having around yeah ten to twelve thousand leads per month which is email addresses. Then around eight to ten percent are deciding to become a customer so that’s between 800 and 1,200 new customers per month.
That’s just automated. You did that system once and basically that’s running its own.
Right that’s an important thing I mean I’m always tweaking because that’s fascinating. I mean just to see how can we make it more efficient? I mean it’s the same way as I asked my team okay how can we be more efficient? Teaching our customers how can we make them more successful? In the same way, I’m asking the team okay what else can we do to make your life easier? So, every Tuesday for example I have a meeting with my customer success team and what I’m asking them after we discuss is how can we make the customer’s life easier? I said how can we make your life easier and so I’m doing it in all aspects of the business of just saying okay what else can we do to make this even easier? And this is how we constantly improve you see. I just want to show you this really quick here on my phone because I think it will be we’ll be really cool. You see my screensaver on my phone I hope that you can see it. It says obsessed with improvement so this is my screensaver. This is my mind said. I’m obsessed with improvement. I mean improving the lives of our customers, improving the lives of my team members, making the processes even easier and also having a bigger impact. So, that’s what it’s all about.
It’s an excellent mantra because you are really competing against yourself. Constantly competing against yourself I’m good I’m great how can I be better? I don’t know if you’ve read Jim Collins book From Good to Great. Good is never good enough. It’s always this competition with yourself to be even better. I think if we all in our businesses have that model & have that mantra and have that leading us in business it’s impossible not to succeed. It’s impossible and at the same time to me the most fascinating thing is the fact that you are making your customers lives better. Facilitating the process for them. Constantly making things better for them. I know for a fact that’s what we do. We’re constantly trying to make things easier better. How can it flow because again it can be as complex or as simple as you make it? And the better you make it for them the better their lives are the better it is for you. Even as the CEO or the founder or whatever of a company it makes it easier for you so I love that. So, here’s my question: foresight strategist will always look at the future, where do you see Rockwell Trading in 5, 10, 25 years from now?
I really want to become the leading company for financial education. By financial education I really mean active trading. You see these days it is easier than ever to take control of your retirement account of law or have to rely on the government or Social Security or even the markets. You see too many people right now just put money away and hope that the markets will continue to go up. Well maybe they do maybe they don’t. The past two years have been good but we know from 2000-2008 that regularly we have crashes and I want to make sure that for the next crash you’re prepared. You know how to take advantage of this and that it is not hurting you. I believe that we can do this with our simple messaging and this is where I want to take Rockwell Trading to the next level. I really want everybody to understand trading is not that complicated. It doesn’t need a lot of time. 10 or 15 minutes a day that’s all you need to actively manage your account. But this will allow you to just rely on yourself you don’t never have to rely on the government again and never have to worry about who will be the next president. Whether in Europe the Brexit is exiting. Whether in Korea some guys shooting missiles all over the place. I mean of course these are things that are a concern to us but it shouldn’t really affect your retirement and that’s what I’m all about.
Ok, so, there they will probably affect our environment but not our finances and not our retirement. There’s so many people that have put all their eggs in one basket and it’s been the wrong basket and when they’re ready to retire they have nothing and that’s sad. That’s really sad I’ve seen that time and time again and so many people can’t retire. They can either not retire or they have to supplement with a part-time job. And you’re saying nobody needs to do that ever?
Nobody should be doing it. Social Security right now on average you’re getting $1,600. This is not living on $1,600. I don’t know where in the country you can live on $1,600. I mean that’s not living if you work hard all your life and you’re accumulating some sort of wealth. You should be able to retire comfortably and enjoy your golden years or silver years however you want to call it. I also believe that everybody should be able to retire earlier. This is what this is all about because while you’re having a job you don’t need to be a full-time trader. While you’re having a job, while you’re running a business, while you still have a law practice, or while you’re seeing patients or clients you can still trade because all you need is 15 minutes in the evening to manage your portfolio. You look and see okay is there anything that’s going against me that I need to liquidate or is there anything where I can take profits right now? That’s what it’s all about so that you can accelerate your wealth. That’s what I empower people to do.
I have a question then for the for the average person who again they’re starting out. They’re not sure how much would they have to invest. Like how much of a risk would they have to take because we’re not traders? So, we’re relying on you. You’re saying it’s very simple. It’s 15 minutes. How much money does it take to start?
Well first of all I recommend that you never risk more than 2 tenths of your account size on any given trade. I would recommend that you start with at least $5,000. If you have $5,000 2% of your account easy as you can risk $100 of any given trade. Now if you really risk $100 you’re trying to make $150 so that’s not a whole lot. Let’s say that you’re doing it horribly wrong and then you have 10 losing trades in a row. Now if you have 10 losing trades in a row and you risk $100 on any given trade now you lost $1,000 not a big deal, right? I mean of course it’s not nice you don’t want to lose $1,000 but you’re not wiped out you’re still in the game you’re only risking a small portion. So, I would say if you have less than $5,000 let’s say you would only start with $2,000. 2% of two thousand is forty dollars. If you risk only $40 you have fewer opportunities because a stock may trade at $100 so you need to give it a little bit more room. With $5,000 you have plenty of opportunities. Here’s the other thing if you can’t make money on a small account should you trade a larger account? If you can’t make money with $5,000 why should you be trading $50,000? Prove to yourself first that you can make money with trading before you put more money into
your trading account because most traders make this mistake. They start with twenty thousand dollars to enter the first trades. They don’t limit their risk and before they know it, I mean it happened to me, before you know it the account is down to ten thousand dollars. Ouch that hurt. So, would you rather if everything goes horribly wrong you lose a thousand dollars or ten thousand dollars? Start small and then it can grow big over time.
So, you’re saying that if somebody has like a retirement fund or if somebody has like $1,000 and they’re like oh yeah, I don’t have five thousand I guess I can’t do that. Would you say they should start small with a thousand dollars?
With a thousand dollars, it’s possible. It’s tricky. Here’s what you should do you should just pay per trade a simulated account and learn the skill. There is way more money out there that wants to be traded than there are traders. If you acquire this skill, it’s a skill that you will have for life. Believe me there will be people who say if you know how to trade I’m giving you some money to trade. This is possible or you just keep saving up. I mean never trade with money that I can’t afford to lose so don’t borrow money. But you can start with a thousand dollars. You can place a few trades and get used to it but honestly it would be a little bit underfunded. You should just acquire this skill because it’s an amazing skill to have. My son has it. He’s 14 years old obviously, he doesn’t even have a thousand dollars but he has the skill because he has trained on a simulator. You practice trades you can do this without risking real money so, that’s what you do. Then you enter competitions. So, there’s lots of opportunities where you can acquire that skill that
will help you all your life without risking real money first.
I love it especially for young adults. I think this is so key because when you’re older you need it more. But it’s a skill that like your fourteen-year-old son the younger you learn it the better it is for you. And that positions you for the rest of your life and by the time you’re ready to retire hopefully sooner than later you’re in a good position. You’re in a good place. I love it I think this is fabulous so I want to thank you Markus for sharing with our audience. I just think I have to tell you fast I’m very fascinated by it. I’ve always heard about trading I’ve tried to learn it. It was very overwhelming and sitting with you for just a few minutes I have learned so much. We’re going to continue this conversation privately.
This has been so much fun.
When you do what, you love and you’re passionate about what you do time flies. I can talk about innovation. I can talk about creativity and foresight and business all my life and feel like I was just talking for five minutes. It’s when you when you love something when you’re passionate about something it’s really something that you can talk about forever. And you’re acquired a skill that most of us need and you can share that information very wisely very simple and just and make people think differently. They think that’s a great place to start if they can just start thinking differently. I love the idea about that simulator. Where would they find that?
There is plenty of simulators available one of my favorite ones is at the Chicago Board of Options. The website is https://www.cboe.com. They have fantastic simulators that are free. I mean that’s a great thing it’s provided right by an exchange because the exchanges also want you to be successful so they provide great tools. I believe if you go to https://www.rockwelltrading.com/simulator we are redirecting there because that’s what we recommend. It’s a good tool.
Okay so I want to thank you for being here and I want to thank you for sharing this this very important message with our audience. Again, if you have five thousand dollars that are sitting in a savings account take it out and trade it. Trade because it’s a great place to start, right?
Okay, so, one last question if you have a retirement fund and you have $5,000 there would you recommend that they trade with that retirement fund?
See if you have a retirement fund and the retirement fund could be a few hundred thousand dollars depending when or where you are in your life it could be a few thousand dollars a few ten thousand few hundred. Just take a little bit okay start and prove to yourself that you can do it. Don’t immediately dissolve all your retirement fund put it in your own account and then start trading two hundred thousand dollars without knowing what you’re doing. It’s like giving a 16-year-old a Ferrari to drive. You don’t want to do this I mean you give them an old clunker so that you can learn and that if something happens it doesn’t hurt anybody. Same here you take a small portion of it you get started when you see success this is when you gradually start trading. That’s the idea.
Thank you again for being here we definitely want to have you back anytime that you have a new product or a new service. We definitely want to hear about it and we want to be able to share this message with our audience too because I just think it’s fascinating. I love the whole idea. So, thank you so much for being with us Markus. To the audience, I like I said I’m always combing the earth looking for the best of the best. I feel that when it comes to trading and this whole topic I found the best and I’m always sharing them with you so again thank you for being here. We look forward to seeing you next week with yet another fabulous guest all right bye.
Interview with Markus Heitkoetter Stocks & Options Trader
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