Lou Mercer: Now it's time to take a closer look at how one trader approaches trading in the markets. Randy Frederick is joined today by specialist guest Scott Redler, chief strategic officer and partner at T3Live.com. Randy?
Randy Frederick: Thank you, Lou. So Scott, it's great to have you here.
Scott Redler: Thanks for having me.
Randy Frederick: So Scott, you work for T3Live, and I know you're a professional trader, I think it's safe to say. But I'm not sure everybody knows exactly what T3Live is, so why don't you tell us a little bit about what that actually is.
Scott Redler: I'm a partner in T3Live, and we have a lot of different ends of the business. We have a T3 prop trading group, where we have about 70 to 100 associate members that trade within our broker-dealer. And then we have T3Live, which I'm the chief strategist of.
So what I try and do for T3Live is I try and create a plan every single day on how to approach the market based on what's going on in the market, using chart patterns, using indicators, using technical analysis. And I do a morning show every day going over what I think we can look at to potentially make money in the market.
So what we have is a bunch of subscribers around the world that tune into the show that also subscribe to my Note so they can see kind of what my daily game plan is, which I'll be trading, because I'm a trader first. So I wear a lot of different hats, which is good to keep me moving. But all the hats do come together to have my process and my day.
So what I like to do is I provide the content and the strategy for whoever wants to see and hear it and use it, and hopefully, they can make it their own if they agree, or at least it shows them what I'm doing. And then I need to actually implement it, and everyone can see me doing it by this product we have called the Virtual Trading Floor, where once I'm actually in the position, they can see why - they see I'm in it, and they can understand why I'm in it, because I'd rather teach them how to position themselves into the market versus them just copy what I'm doing. So this way, if I'm not around, you know, they can do it themselves. I want to basically teach them how to fish, besides throwing a few fish in the boat, which is what everyone typically likes. But I like to do a little bit of both.
Randy Frederick: Okay. So this sounds like a pretty complex operation, and it sounds fascinating to me, but why don't you tell us a little bit about how you start your day. I'm guessing you probably get up pretty early, like I do, to do a little bit of research before you start this process. And I'm sure it's a little bit stressful. So kind of walk us through what your morning looks like and how you get to that point where you start communicating with your clients.
Scott Redler: Well, I'm up at 4:45 every day, and a lot of people are like, how do you get up all day? When do you sleep? You know, I've read so many books on successful people. There's only 24 hours in a day. So we've got to use as many as we can. So - but 4:45 in the morning, I'm up. I go downstairs. I look at my phone. I want to see what's going on overseas. I want to see what's Europe doing, what's Asia doing, because that typically will impact what our futures are doing. So I want to see kind of what's dictating the morning flavor.
So by that point, you know, I'm already having my coffee, I'm showering, I'm petting the dog, getting ready. If I'm a little stressed, I have too many positions, maybe I spend a little bit more time with the dog in the morning. You know, she's very soothing. But then I then get on my - I travel to the ferry. Now it's 6:00. I take a ferry into work. I work downtown on 1 State Street.
Stop at the same deli to get my sandwich, because I'm a creature of habit, and in order to have a routine, you have to like it, and I like getting relaxed. I come into my office. Now it's like 6:20, and I start looking at - I would say 30 to 100 charts, and I call that my go to list. And on the go to list, I make an order of what's setting up the best. If we're in a strong tape, I want to put it on the top of the list, the strongest stocks that look the best that we could potentially trade for the day, that we might be holding for a swing.
And I basically start writing my Note. So from about 6:20 to about 7:30, I wrote my Note that -
Randy Frederick: So this is the Note that you send out to the clients that are going to be - that you're going to be interacting with, right?
Scott Redler: Yeah. We call it - like our subscribers.
Randy Frederick: Okay.
Scott Redler: So anyone who wants to get - be a subscriber, _____ access, I write a Note every day. It's as real time as possible. It starts at 4:45 in the morning. And by 7:30, I send it to editing, because I'm not known for my grammar and my spelling. But the ideas are there.
So that goes to editing. And then I actually go into my studio and I talk about the same thing I wrote about, because a lot of people are visual versus like to read, or some people need to do both.
Randy Frederick: So you're doing a little video podcast, then, right?
Scott Redler: Yeah. It's exactly - and it's on the web, and it's on demand at around 8:15. So once that's done, I go into the trading floor, where we have - there's a lot of people there. Sometimes there's 40 people, 50 people, depending - we have 27,000 square feet. But at that point, I start talking to the traders, and I start going over at what they're looking at, what they're seeing. I start talking about my ideas.
And then now it's like 9:20, and usually, my sandwich is - half a sandwich is cold, because I didn't get to it, because I'm doing too much. And then I start trading in the open, and basically, I put on a head gear and I talk about what I'm seeing in the market. So at 9:30, I'm trading. I have my six monitors. I'm looking everywhere. I'm trying to tweet, trying to do a little bit of everything, which satisfies my ADHD, because I just need to be doing everything.
Randy Frederick: So your clients are listening to you as you're trading, and you're giving essentially a live commentary of what you're doing?
Scott Redler: Pretty much.
Randy Frederick: Wow.
Scott Redler: I'm like, you know what I wrote about the formation Apple, it's getting above $116.00. I just _____ - you can see it on the Virtual Trading Floor. I wrote about it in the Note. Boom. Or I thought this was strong, but futures are going and showing relative weakness. I'm avoiding that. So I'm talking because I have to be also trading. And then I try and do that until about 11:15, 11:30, and then right around 11:30, if I'm in positions, I put a stop in. I get off the radio, and I go to the gym.
Randy Frederick: So you take a little bit of a break in the middle of the day?
Scott Redler: I'm Jello. I've been up since 4:45 in the morning. And at 11:30, 11:45, I'm like, you know what? I'm cooked. I'm going to go take a spin class, you know. I'm going to go do a - some kind of tabata for - from 12:00 to 1:30, so I can refresh myself.
And at that point I take the class, I come back. It's now 2:00. I might have had some positions on. I had stops in. I always say put your stops in, because you never know, like on Friday, right? All of a sudden -
Randy Frederick: Right in the middle of the day.
Scott Redler: - the FBI, boom, you know, Friday comes in, you know. A lot of things start to drop. I had stops in based on if the trade was changed or my idea was different.
Randy Frederick: So you may have taken some small losses, but they were small. That's the main thing, right?
Scott Redler: Yes. You want to take small losses, not big losses. Because a small can turn into a big loss if you don't honor your stops. You always have to have your stops, not to save money, only when the trade changes. If you're trading a situation for a reason and it changes, you have a stop. If you lost half of what you want to lose in a day, you know, basically, you shouldn't have a stop based on going to your limit, because then the trade might work out, because it didn't change, but you didn't give it enough room.
Randy Frederick: Right.
Scott Redler: So anyway, so now it's 2:00. I come back. I sit at the desk. I say hello to everybody. You know, how's everyone doing? At that point, the people who don't leave for lunch, they're like zombies. I'm like, why did you stay here at lunch? Nothing goes on in lunch. Get up. Walk around. You don't have to go to the gym and take a spin class, but you know what? Do something. Play some chess. Go - have a hobby. Because you have to brush off the morning.
You know, and then I trade the close, and then I do a recap, and then by that point, I take the ferry home around 6:00. And I'm married. I have a son. I usually have to pick him up from soccer or pick him up from lacrosse or pick him up from basketball or pick him up from, you know, you name it. Like all this kind of stuff.
So - but basically, this is my process and my routine. So -
Randy Frederick: Okay. So it sounds like you kind of have to - you've got to have a little bit of balance. You've got to be able to calm things down a little bit. And that's an interesting process. Okay. And guess what? Unfortunately, we're out of time. Scott, thank you so much. This was great talking to you.