'Psychology, Discipline, Emotions': Trader Michael Hubbs Shares Success Story, Tips And Tricks

Benzinga has built an incredible brand and following, attracting the use of professionals and novices in its broad effort to democratize the financial markets.

To help inspire investors, we interviewed Michael Hubbs to learn about the strategies he's employing during these volatile markets.

Benzinga: What’s your background and what inspired you to get into trading?

Hubbs: I, alongside my sister, am deaf. Just born that way. I grew up speedskating, competing at the national level at 16; I have a huge passion for athleticism.

Further, my family was very poor for almost all of my life. When I got older, I found a book called "Rich Dad Poor Dad" and read it within three days. It completely changed the direction of my life, causing me to adopt a strong entrepreneurship mentality.

Fast forward, I kept up with speedskating and qualified for the 2014 and 2018 U.S. Winter Olympic Trials. Afterward, in 2015, I was physically and mentally burnt out, so I took time off and focused on trading.

How did you learn and what tools help you in making good decisions?

I learned the hard way. Never trade real money if you have no idea what you're doing.

I've learned a lot through Warrior Trading and Dekmar Trades education. The most important thing I've learned is that we must have discipline. Once we write a plan, we have to stick to the plan, the hardest part of trading.

I've learned to cooperate with and obey the market, respecting the price. If the market tells me it's going down, then I will respect it and cut my loss quickly.

80% of successful trading, though, results from psychology, discipline, emotions.

What’s one thing that’s saved you from losing?

Keep your position sizing small. I keep my stop loss 5% below my entry, using an auto-stop limit to protect my account.

What’s your strategy?

I like to keep it very simple: bullish flag breakout on the five-minute chart.

Buy very close to the 9 or 20 exponential moving average support, then, set your stop 5% below and target 20% above entry.

I focus on stocks with a float below 20 million moving on hot news, such as FDA approvals, big deals, huge orders, compliance with Nasdaq, and more.

I don’t like overcomplicating things. My risk management entails trading with only 20% of my account per trade. That's it. I don’t like swings since you never know what will happen overnight.

To speak with Hubbs directly, click here. 

Photo by rovenimages.com from Pexels.