This is a podcast interview of myself aka Triforce Trader on Steady Trade. “Triforce trader” from a game – Legend of Zelda about a boy who is asleep his whole life and then woke up to do something with his life which is symbolic for me since when I found trading which is something I really wanted to do. Triforce is 3 pendants which also symbolizes what I think about the markets – fundamentals, technical and quantitative analysis. Those things go together. My approach is a little bit different of what a usual day trader is. I use what we can call the Macro Approach wherein I employ algorithms and statistics and has found great success as a trader. This interview is all about how I started as a trader, what are my advice to new traders and how I use my approach to make me to where I am now.
I started trading and markets at the age of 15 yrs old on a school market competition wherein I won. I was pretty much hooked with markets. I have been studying the market for almost 15 years now. However, by coincidence, I found a book in the library called – “Don’t sell stocks on Monday” which was published in the 1970s. I found out that the guy is tracking the SMP since the 30s and what he was doing that there are seasonal tendencies in the market. This book gave me a different perspective on the markets. The Market can be beaten by using algorithms and statistics. By age of 23, I started real-life trading from the inheritance I got when my mom passed away. If you are new to the trading world and your money is around 1-5 thousand dollars that may not be enough. I strongly suggest you start with at least 10 thousand dollars because if you have the odds that you are going to win you will still make mistakes so if you have less money you can simply blow-up. There are some traders that can do less 10k because they are extremely disciplined but I would say that is abnormal. So my advice has at least 10k and has a cushion too.
If you are going to trade whether it is penny stock, options or whatever you want to do on your account size to grow, you need to have some kind of edge or statistical probability of what you are doing to work. You should not be trading unless you know your edge. You need to find someone or study or track something before you trade. We live in the age we can you can simulation all your trade and strategy statistically. I use the trade station. In my opinion is one of the best platforms for retail traders, the downside is they are deficient in shorting stocks. You can test pretty much anything on trade station. Also, I recommend build alpha – what it does is do the validation techniques. It builds strategies whatever datasets you have. You can build strategies. Whatever you are doing you do x + y = z. X will be the condition, what is your setup, Y – will be your trigger, what’s going to get you into the trade, Z your follow through. If you want to be successful in anything you do then you should do the process over and over again. I do not believe in the “psychology of trading” because I believe it is all mechanical because this is the game of number. You have to be consistent. Also, important factors to be a successful trader is that you study, read and find mentors that you know will help you with your goal. Intelligence is meaningless and is always relative to the task. If you want to learn something then do it, stop making excuses. You have to sit down and do it. Don’t feel you need to rush on things, you have your entire life to trade. Take the time to do the research and do the work. Don’t let numbers scare you.
Check out more trading tutorials on my website – Triforcetrader.com – triforce training.
Episode 29: Triforce Trader
On the Steady Trade Podcast, we strive to educate you on ways to attain and maintain a long-term career as a trader. As part of that mission, we occasionally like to share interviews with successful traders to inspire you on your journey.
Today, Tim and Stephen interview Matthew Owens, AKA Triforce Trader, who has taken a different approach to trading. As Tim puts it, Matt’s approach is very “macro”; he employs algorithms and statistics and has found great success as a trader.
The tale of Triforce
Matt caught the trading bug at age 15 when his school had a stock market competition. He threw all of his money into Apple, which doubled in the next year. Not only did he win the competition, but he was hooked on the stock market.
Then, one day, he happened upon a book at the library called Don’t Sell Stocks on Monday. This book offered some fascinating insight on seasonal tendencies and probabilities in the market. It opened Matt’s mind to an idea: could the market be beaten?
In college, he began to teach himself programming, which only increased his statistical and algorithm-driven mindset. When he was 23, his mother sadly passed away; an inheritance she left him allowed him to begin trading in earnest, using the strategies and skills he’d discovered over the years. Since then, he has found his niche in futures trading.
Nope: Matt doesn’t deal in penny stocks. He primarily works with futures trading. In a nutshell, futures are based on financial contracts between a buyer and seller to exchange an asset (such as a commodity) at a future date and price. These contracts detail the quantity of the asset and are standardized to adhere to futures exchanges.
Each contract has its own value, like a stock, and it moves with the commodity prices. It allows access to a wide variety of markets; with futures, you might be trading grains, oil, gold, or a variety of other things.
Penny stocks versus futures
Tim, Stephen, and Matt discuss trading futures versus penny stocks. As Matt puts it, penny stocks are not for him; he’s not a “hunter,” which is a trait he sees as being inherent in trading penny stocks. Different types of trading are better suited to different types of traders and their personal constitutions; which is right for you?
“You need to have an edge.”
Stephen wants to know: how do you make money in futures trading? According to Matt, to grow your account steadily, you have to have an edge that goes beyond technical and fundamental analysis. Tracking setups that have the probability to work will give you an edge. His edge is statistics, and in the episode, he explains some of the ways in which he uses statistics and tracks them.
It’s as easy as X, Y, Z
Matt literally has boiled down trading to a science and offers a simple X+Y=Z equation for choosing stocks.
X = the condition
Y = the trigger
Z = your follow through
In the episode, you’ll hear more about using this equation for creating a trading plan. As Matt admits, it can be boring, but it delivers results. As he wisely imparts, “I don’t believe in the psychology of trading, it should all be mechanical.”
Advice from the Triforce Trader
When offering the secrets to his own success, Matt credits two things in particular: reading, and seeking out a mentor. For him, traders like Larry Williams, author of Long Term Secrets to Short Term Trading, have been pivotal in terms of education and shaping his own trading career.
Trading is real work, and you need to have an edge. A mentor and a strong education can help you go beyond the initial “addictive” phase of trading so that you can truly build a long-term career.
You can find out more about Matt via his website,
Why triforce trader?
In case you’re curious about Matt’s trading alter ego: it comes from the video game The Legend of Zelda, about a boy who has been asleep for most of his life but finally wakes up to do something. This is symbolic for Matt, who feels that trading helped him come to life.
Of course, this begs Stephen to ask the important question: who’s your favorite superhero? Leave a comment in the show notes!
If you would like to hear more about anything discussed in this (or any) episode, be sure to visit the “submit your audio” section on our website to ask your question; it might just be featured on the air!
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