The Paycheck Trader Strategy: EU 97 with Brad Wachter
Today’s guest is my good friend and a fellow trading expert. I worked with him personally, have known him for a number of years, and I trust him.
He is an expert at helping people develop a consistent trading strategy that allows them to generate a livable paycheck. He helps his students make a consistent $10,000 per month in profits using his methodology.
His name is Brad Wachter.
While trading might not be for everybody, I wanted to bring him on and expose him to my audience and get his background because I think it is definitely something that a lot of people should consider as an opportunity to invest and generate income.
There are thousands of different ways that you can make money with trading.
Find out here.
You can also discover more about the Paycheck Trading Strategy here.
People want an outcome in their investing journey, a consistent income. [5:28]
Options allow us to control shares of stock in a very leveraged fashion. [7:20]
The velocity of money. [9:20]
Trading is as much about mindset as it is about the mechanics of your trade. [39:02]
Start small until you can build confidence. [40:57]
… and much more!
EU 97 audio
[00:00:00] Brad Wachter:
You know, I’m kind of known as someone that likes to give crazy guarantees. So I’ve got a guarantee right now that says, I guarantee I can get you to 10,000 a month in trading profits, or you’ll get your money back that you pay me to work with me.
This is experts unleashed, revealing how professionals and entrepreneurs transform experience into Gama while positively impacting the world for years, Joel, or way has helped entrepreneurs develop and launch their expert based business.
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Let’s get started.
[00:00:57] Joel Erway:
Hey, what’s going on. It’s Joel Erway here and welcome to another very special episode of experts unleashed. Today, I am joined by my good friend and, and fellow trading expert, Brad Wachter from paychecktraders.com. And I am super, super excited to have him on the show here today. Now Brad is an expert at helping people develop a consistent trading strategy that allows them to generate.
A livable paycheck, right? He calls it paycheck trader strategy, right? Paycheck trading. I’ll him go through his official, you know, methodology in just a little bit. But I wanted to bring Brad on the show because number one, I’ve worked personally with Brad. So I wanted to make sure that, you know, I bring people on that I can put my stamp of approval on that I can sign off on and I can vouch Brad.
I am a big advocate for his methodology and I’ve known him for a number of years. And so I trust him. And so I wanted to bring him on and expose him to my audience and, and get his background, get his story and get his methodology because I do believe that While trading might not be for everybody.
I think it is definitely something that a lot of people should consider as an opportunity to invest an opportunity to generate income because just hundreds and hundreds, if not thousands of different ways that you can make money with trading. And I wanted to bring Brad on to kind of, to talk about that.
So you know, one of the things that Brad talks about is how he can help his students make a consistent $10,000 per month in profits using his methodology. So with that big bold promise out of the way I wanted to bring Brad to the show. So Brad, welcome to experts unleashed by man. Great to have you.
[00:02:38] Brad Wachter:
Hey, thank you, Joel. I’m super excited to be here. I’ve been a big fan of your podcast over the years, and it’s a real treat now to be a guest on it. So thanks very much.
[00:02:47] Joel Erway:
Obviously we go back a number of years. You know, we’ve hung out in person. We’ve worked together. I’ve been a client of yours.
You’ve been a client of mine, so there’s mutual respect there. But for people who don’t know who you are, give us a quick 30 to 62nd background of what you are, what your company does, and we’ll start.
[00:03:04] Brad Wachter:
Yeah. So I like to say I’m not a guru, right? I mean, you you’ll find a lot of people out there that, that pretend to be gurus in the trading space.
I’m just a regular guy that developed an interest in trading options. And I like to say I was too stubborn to quit. I just kept going, making mistakes, learning the ropes until I got good at it. And never really expected to be an option trading coach. To be honest with you had a corporate career, then I was an entrepreneur.
I owned a business for a dozen years and you know, what happened was I would start to show friends and family what I was able to do with options. And they’re like, you really need to share this, you know, you really need to like, Make this into something because you could really help people and they thought I’d be good at, you know, coaching.
And so anyways, eventually I took ’em up on that. And I’m really glad I did because I’m having a blast. I get to, at the same time, I’m trading own my own account, show people what I’m doing and they’re making money. And I really love just being a small part of their success story. I’ve got all different kinds of members that I’ll talk about later.
But that’s sort of what brought me here is just someone that, you know, didn’t quit learned how to get good at something. And then now I’m able to share with other people.
[00:04:22] Joel Erway:
Awesome. What I wanted to talk about first Brad is I always like to go back and like, if I’m somebody who is considering.
Learning investing or considering trading or, or whatever, right. You put money into, into the stock market. You put money into some sort of market. I, as I mentioned before, there are literally probably hundreds of ways that you can make money with the, with the stock market. Can you take us through a little bit of your background and your experience with different strategies and, and what ultimately led you to the current strategy that you call the paycheck trading strategy?
Right. So, yeah. Take us through the Genesis of like your experience with trading that led you to where we are here today.
[00:05:02] Brad Wachter:
Yeah, that’s a great question. And I get that a lot. I mean, investing is a huge topic, right? There’s you can invest in stocks and crypto and real estate. And you know, then even within options, there’s a million ways to trade options.
But over the years, what I’ve realized is what most people want as an outcome in their investing journey. And that is. As consistent income, right? I mean, it’s one thing for us to save up for retirement that have a nest egg, and I I’m a big advocate for that, but that sort of means that you’re not gonna get to spend that money for a long time.
So with options trading, at least the way that I teach it you can actually create an extra paycheck. That’s why I call it the paycheck trading strategy and that paycheck can be small. If your goals are fairly moderate or it can literally be a full-time income or more in its same strategy.
Just sort of, you know, do you wanna play a smaller or bigger game? So, you know, what I teach is very specific. I don’t try and be a generalist. I don’t try and pretend that I’m gonna teach you all different kinds of options, trading strategies. I’m gonna teach you one. And it’s a good one and it’s probably all you’ll ever need, but once you get good at it, if you wanna expand and try different things, that’s fine.
But I really feel like it’s my responsibility as a coach to keep people focused on one thing long enough. So they’re a master at it and that’s what we do with the paycheck trading strategy. Okay. Cool.
[00:06:39] Joel Erway:
So the paychecks trading strategy is about, you know, producing a potential full-time income if they want.
Right. But it’s, it’s meant to produce that income that will allow them to live their daily life. Right. So we know it’s options, right. And we know that your strategy is options. What led you to options? Like why options over any of the other strategies that are out there in invest?
[00:07:03] Brad Wachter:
Yeah. So primarily because of leverage, you know, options allow us to control shares of stock in a very leveraged fashion.
So then what that means is that you don’t have to have a very large trading account to make a meaningful income from trading options, at least in the way I teach it. So that’s what I love about options. Now, you know, if you do it wrong, You can get hurt. No doubt about it. And that’s why options sometimes has a bad rap is because if you’re not careful, you know, you can do a lot of damage to your account, but if you follow the rules that I teach, it’s actually a very low risk type of trading strategy because we simply don’t let ourself to lose very much on any given trade.
And I, I, I’m just a big believer on it. I’ll go through, you know, the, how the trade works, if you like me to, but. You know, I’m kind of known as someone that likes to give crazy guarantees. So I’ve got a guarantee right now that says, I guarantee I can get you to 10,000 a month in trading profits, or you’ll get your money back that you pay me to work with me.
So I’ve never seen anyone doing what I do that offers something like that. And I can only offer that because I believe in what I’m doing so much. Mm.
[00:08:17] Joel Erway:
When I started to really look at and do my own research in investing and in trading, I discover options. And that was basically the same conclusion, like, okay, I get that.
It’s leveraged, but leverage always, you know, makes me a bit nervous. It’s like, okay. You know, you’ve got greater risk, greater exposure. So I guess let’s walk through your trading setup. So now we can. Get more comfortable with that risk looks ill say and how we put those bumpers in place to say, okay, Hey, we don’t, you know, we don’t risk too much.
So we don’t completely expose ourself and let’s learn how that translates into a substantial, a healthy, you know, full time income.
[00:08:56] Brad Wachter:
Yeah. Okay. Absolutely. Well, let me run a few concepts by you and then I’ll get into how the trade itself works. So one of the concepts is called the velocity of money. I dunno if you’ve heard about that, but in it, it’s not only about options, it’s about any kind of investing, but it’s the idea that the quicker that you can deploy capital, get a return on that capital and then take it back out.
And then do it again. So you’re recycling the same capital again and again, that creates this amazing compounding effect that really few other types of investments have now with a paycheck trade. We’re actually able to recycle our same capital up to 13 times per month. We generally do trades Monday, Wednesdays, and Fridays.
And that works out to be a 13 or so in an average month. So that’s a critical component of why, what we do works so well because of the compounding effect that comes from that velocity of money. Okay. Yeah, some other characteristics about it. The way we set up this trade, first of all, it’s very rules based, right?
This is not something where I expect my members to like, learn how to research. You don’t have to learn charting. You don’t have to apply indicators. This is almost like following a recipe. And if you learn the recipe and you follow it like a teach you some pretty amazing things will happen. One of those things is we can expect to have about a 80% probability of winning that trade which is quite good.
But then coupled with that is something called a one to one reward to risk. That’s a fancy way of saying that we will not allow ourselves to lose any more than we were expecting to win on that given trade. So when you have a high probability of winning and a one to one reward, risk ratio, then that creates a very favorable what’s called positive expectancy.
In other words, you can almost kind of forecast out in the future. What, at any given trading size you might expect to earn. From this strategy, which is super cool. I mean, it makes people comfortable with doing this kind of trading because it is so predictable. A few more things about our trade. It’s very low time commitment.
So we place these trades generally 15 minutes or so after the market opens on Monday, Wednesdays and Fridays, we set a stop loss. So that while we’re you. Not paying attention to the trade, right? And I don’t want you to sit in front of your computer all day. I want you to take a couple minutes in the morning, three days a week, place the trade, set your protections, and then come back to that a few minutes before the market closes that same day and harvest your profit or your paycheck.
I mean, that’s why it’s called a paycheck trade because we’re actually trying to create up to 13 paychecks per. So that’s you know, you got the, the high wind rate, the good risk control. It doesn’t take very much time. And then it’s just a matter of, you know, again, knowing how to go in and set the trade up.
And by the way, we don’t trade options on individual stocks, even. So I like to eliminate stock specific risk. We only trade on the market indices, typically the S and P. So we’ll use the ETF product spy or the index itself S SPX or we’ll use the equivalent on the NASDAQ or the Russell 2000. And so we, we get some safety from going with a very diversified product like that.
And we don’t have the stock specific risk and. The other reason why we use those indices is they happen to have and this is getting a little bit into the weeds. I apologize, but just so happens that they have more frequent options, expiration cycles, which we actually use to create that velocity of money.
[00:12:58] Joel Erway:
Got it. That was one of the things that I learned about when I worked with you was Options expire, correct me if I’m wrong and, and, and I’m going off a memory but options expire Monday, Wednesday, and Friday. Is that why we only trade Monday, Wednesday, and Friday? Is that correct?
[00:13:10] Brad Wachter:
On the indexes they trade, they expire that often, most single stocks you’ll only have a Friday expiration or perhaps even monthly.
And so if you think about. Based on what I said about the velocity of money. You don’t wanna wait that long for your trade to have an outcome. You wanna get your capital back and redeploy it. And so that’s why the frequency of options expirations is so important. Awesome. It’s almost like I mean, I like, I like referring to it as a, as a money machine.
I mean, we’re trying to pull money out of the market frequently and that’s what we can do. In fact, I’m in a trade right now. We put on, I guess let’s see. It’s about three hours old. And we’re up 5% on my trade size. But important thing to understand about how these trades are structured is although we can make 10 to 15% on trade size in a one day trade.
Our trade size is not a risk. We’re only risking about 10%. Of of the capital that we’re deploying to make this trade. And that’s part of, you know, the safety factor of getting this to work so well.
[00:14:20] Joel Erway:
So what I wanna do real quick is I want to, I, I was taking notes and I wanna recap this for everybody listening right now.
So they can, in their mind, they can, they can kind of have the highlight benefits of like what your strategy talks about. So number one is it’s got an 80% win rate, which I think. Pretty incredible. And, and I wanna ask you about that in just a little bit, but after I do this recap, right? So we have an 80% win rate, which is fantastic.
You have a risk control of a one-to-one reward to risk ratio. So you’re only gonna lose as much as you could potentially win. And if you’re winning 80% of the time, that means you’re, you’re going be greatly ahead in the long run. And so you’re not, you know, you’re not leveraging, you’re not risking eight tons, which would wipe out, you know, weeks worth of profits.
If you do take a big loss, you’re just, you’re wiping out one win. Right. Did I, did I understand that correctly? Yes. Yep. So one loss really only wipes out one win that’s right.
[00:15:14] Brad Wachter:
Or another way of saying that is you can make up that loss in the very next winning trade. Yep.
[00:15:19] Joel Erway:
Perfect. We’re only trading.
Three days a week at max, right? Three days a week, Monday, Wednesday, Friday. That’s when these options expire, that’s when these option trades are, are in play. So it’s only gonna require about 15 minutes on those trading days. So that’s 15 minutes, three days a week, right?
[00:15:38] Brad Wachter:
Well, it’s actually better than that.
It’s actually 15 minutes for the whole week. That’s I mean, it sounds too good to be true. I know, but, but really once you get good at this. It’s about two minutes to place the trade and two minutes to take it off. So it’s only 15 minutes a week, you know, now I’m not saying that, you know, people are curious, they might want to check in on the trade, see how it’s doing.
I mean, I I’m always Lancing at my phone to see how much I’m up, but technically the trade trading itself is that little. Which really the implication of that is it, it can be done by almost anyone. I mean, I’ve got, I’ve got truck drivers that trade this. I’ve got people that, you know, work full time, like in environments where you wouldn’t consider them having a lot of flexibility, you know, like maybe working in a hospital.
But then I got a lot of people that have more flexibility in their schedule, you know, entrepreneurs, tired folks, et cetera, but almost every. You know, confine those few minutes three days a week to trade this.
[00:16:41] Joel Erway:
And so the last thing that I wanted to, I wanted to highlight is, so you say you start the trade a few minutes after the opening bell, and then you come back and you collect the paycheck a few minutes before they close the bell.
Yes. Now, is there a reason why you don’t just let that self expire at the end of the day and why you come back and, and manually close it down?
[00:17:04] Brad Wachter:
Yeah, good question. There is a very good reason why, so and I don’t want to get, you know, too technical here, but this is a trade that has multiple legs to it, where we’re actually selling some options that are gonna expire that very day.
And then we’re buying some options that are further out in time. And so the reason why we wanna shut the trade down at the end of the day that we’re trading it is that those, what we call long options are the ones that we’re buy. We don’t want them to further decay in value in the overnight hours or the next day, because they would have already served their purpose for us.
The purpose of those is to protect you know, protect us from, from loss. And so as soon as we’re done using the options that we’ve sold, Which hopefully will have gone to zero by the end of the day. And that’s where we capture our, our money from. We wanna then not let the other options lose any more value than they already have.
And that’s why we shut it down manually.
[00:18:05] Joel Erway:
Interesting. Okay, cool. That’s good to know. So I need to make sure that I’m, you know, around to be able to open and close these trades, you know, start of the day, end of the day, which is fine, which I think it’s just very important to. Prep myself and, and understand where I need to be to, to make this work.
[00:18:22] Brad Wachter:
Yeah. And, and just one more point about that. I mean, it’s not to say you have to do this three days a week. I mean, if you, if you’re gonna have a busy afternoon and you don’t think that you can get back to the trade, then just don’t trade that day or shut the trade down for a partial profit, you know, midday before your schedule gets.
So it’s very flexible in that regard. In fact, we can even set up a profit target auto close so that your trade shuts down automatically when you reach a certain profit. Now, I generally don’t do that personally because you’re not maximizing your profitability by, you know, which takes the waiting till the end of the day.
But, you know, there’s certain cases where you may just wanna shut it down for a partial. So you can still put in, you can put in automated rules to close it down.
[00:19:04] Joel Erway:
If you know, you’re not gonna be there at the end of the day. Like, okay, cool. I’ll open this, but you know, I’ll minimize my profit risk so I can take advantage of the automated rules.
Right. If I’m not gonna be there.
[00:19:17] Brad Wachter:
Yeah. So we always have an automated stop loss order, but we sometimes have a profit target order.
[00:19:24] Joel Erway:
So the what I wanted to ask you is the 80% win rate. Right. That’s pretty incredible, right? Like, how is it? We can do that. Like, how is it that we can have an 80% win rate?
Like, I don’t know if I’m asking this question properly or not, but I guess, lemme just, how can we get an 80% win rate? Let me just ask the plane question.
[00:19:46] Brad Wachter:
no, it is, it is extraordinary. So let me answer a couple things about that. First of all, not only do we get that as an average, but we can also see before we press go on any trade, we can know three things.
The probability is gonna. Our max profit and our max loss. And so that’s actually a very comfortable feeling to know those three things before you even enter into an investment, but to your point about how’s it possible to get 80%, it all comes down to how I put these pieces together. So what I like to say is there’s really not a lot in any different piece of this trade that is unique to me, but how I’ve calibrated.
How I’ve I put the pieces in order, in other words, the days of the week we trade the underlyings, we trade at the times that we open and close how we set our stops, the expirations we use the strikes that we use. And I know these are technical terms that people wouldn’t know, and if they haven’t traded but all those, there’s probably about a dozen different components.
And what I’ve done is I’ve calibrated them, such that they give us. Such a, a good and consistent outcome. And you know, it took me a long time to, to get here. Right. I, I traded lesser strategies you know but I think that, you know it’s just that Like I said, I’m too stubborn to quit. And I, I finally figured this out.
It works really well. And now I really have a lot of fun sharing with others, but let me make a point about these technical terms that I’ve been thrown around. You absolutely do not have to have experienced trading options to make something like this work. Well, in fact, I often tell people it’s probably better if you don’t have experience.
Cause usually what that means is that you’ve accumulated a lot of bad habits, the curse of knowledge. Yeah. You’re gonna have to reverse those and that’s gonna take time and you know, this is not something that like you have to have years of experience to, to start with. If you can just follow. The set of rules, learn some basic terms and then do it with repetition first by paper trading, before you even risk any money you can get really good at this.
And so I just wanna make that point, because I know that some people can get really intimidated by options with all these terms and just like anything else. I mean, it has its own set of, you know, terms or language. But it’s, it’s really quite simple when it comes down to it. And just one other point on that, you know, the, the only.
Two sort of situations where someone might not do well with this strategy is one someone that is just too fearful. And what I mean by that is that someone that can’t wrap their head around the fact that the occasional loss is just inherent in any trading strategy. And then the other is a person that just isn’t really good at rule following.
Believe it or not, there’s folks out there that just can’t leave well enough alone and they like to get creative. And, and so if they end up changing the rules, then I, you know, it’s hard for me to help them be successful. So those, those are the two things that are sort of the major obstacles to being successful in this.
And I try and, you know, make sure that people don’t have those traits, but sometimes it’s hard.
[00:23:09] Joel Erway:
Yeah, I call that the curse of knowledge of you know, when you come in with prior experience of something you think, you know, better, it’s like, oh, okay, cool. Well, I understand your system, but like I’m gonna now label, you know, tack in my quote, unquote expertise and try and modify it a little bit.
It’s like, no pump the breaks. Yeah. You invested in this for a reason, like follow the rules, follow the system, right. right. Follow the plan. One of the things I want to ask you is. With trading like today, we’re actually recording this on a very, very volatile day in the market. Today is June 13th, 2022.
And like right now, the market’s like completely capitulating right. So does this work for any market condition? Is it market agnostic? I mean, is it, is it bull favored, bear favored? Like how does this, does it not matter what the market is is doing?
[00:24:01] Brad Wachter:
Yeah, it almost does not matter. Now. It’s funny that we’re recording this.
Last Friday, I actually decided not to place a trade and, you know, I know this is gonna be an evergreen podcast, so I won’t talk about dates or anything, but there was some really bad inflation news that came out before the market opened last Friday and it actually dropped 2%. The market did in the hour before the opening.
So I, out of an abundance of caution, decided not to trade this, that day, Friday ended up, it would’ve been one of our best trades. It, I would’ve made 14% of my trade size on Friday’s trade. So it just goes to show you that it’s important not to sort of second guess yourself. You know, I’m okay with being cautious once in a while, when you’ve got major market news like that, but this thing is it’s actually self-adjusting believe it or not.
So it’s a non-directional trade when we put this thing on, what we’re trying to do is get our underlying like S P Y for example, in the middle of a wide range to where that price of S V Y can. Up and down and we’ll still have a winning trade. So for example, today’s trade that’s actually a $15 price swing.
So on SPX given where it’s currently trading, that’s like. Three and a half percent movement, some, maybe 4%, something like that. So, and then when, when the market is more volatile our break even points actually automatically expand. So it, it almost because if you think about it, what the markets are is they have to match risk and reward.
So if then they need to get people to still trade involved to markets. And so they need to make. They need to give an incentive for that. And with the way our trade is structured, we, we have a widening of our breakeven points during times of higher volatility. Then when volatility is lower, the, our, our break even points narrow, but that’s okay because we wouldn’t then expect the big price wings that you get in days like this.
[00:26:17] Joel Erway:
So, because I know a bit about your strategy, Brad, I want to kind of break it down a little bit for into layman’s terms a bit more, so people kind of comprehend and, and I want you to correct me if I’m wrong, but I’m, I’m, I’m gonna try and relay this in, in, in what I think is actually happening. So with your strategy, you’re placing bets on the market going up and you’re placing bets on the market going down.
And so that creates this kind of gap and this spread, which is why it gives you. A big buffer zone. Is that correct?
[00:26:48] Brad Wachter:
Yeah, that’s true. Another way of saying that is it’s a non-directional trade that we’re right. We really don’t care if the market is up or down, just so it’s not up or down too much in one day.
[00:26:58] Joel Erway:
Right. And that, that’s what I was explaining. Like, when you were saying non-directional, some people might not really understand what that means. It’s because you’re placing bets that it goes up and you’re placing bets that it goes down. So you have this giant spread of basically, you just want the market to be anywhere in between that up and down range.
And if it stays within a certain range of that up and down swing, then, then you win. And so. That was me trying to describe what non-directional means. Yeah. Which is why we don’t really care if like we’re not placing bets, that the market goes up. We’re not placing bets, that the market goes down. In fact, we’re gonna place bets that both happen.
And then we win when it stays in a range. And so, yeah. It’s kind of like range free trading, you know, or, or range trading, I guess.
[00:27:41] Brad Wachter:
No, I think you described that well, and the reason why that’s so cool in my opinion is that. If you have to try and predict direction, then a whole lot of things can go wrong.
Right. I mean, you know, and people. Do that successfully, right by charting and using indicators. And, and I’ve, I’ve done that myself, but it’s a whole lot easier to place a trade where you’re just sort of following the rules and then you’re letting the odds take care of themselves rather than trying to have a prediction about market direction.
And especially when you’re, you know, a beginner trader because It’s a whole lot easier to just sort of following a step by step formula rather than learning those, you know, sort of more advanced skills of, of predicting market direction, even in the short term. Right. I mean, nobody can predict market direction over a long period of time, in my opinion.
But you know, the people that try and do that are usually just taking little time segments and trying to say, okay, over the. You know, half hour, I think the stock is going up and that’s enough with options to, you know, create a nice profit. Yep.
[00:28:53] Joel Erway:
I love it. So you threw out some numbers earlier and I want to make sure that people who are listening right now understand the expectations.
You said, you know, you didn’t trade last Friday, but it would’ve been like one of the best trades in quite a long time with around of 15. Gain is that correct? Yes. So what is it that we shoot for on an average trade? Like if we’re gonna win 80% of the time, like, what’s our average, are we shooting for 10% gain or do we not really care?
Is it just gonna be balancing average? Like, you know, what are we shooting for in terms of a gain on our trade?
[00:29:26] Brad Wachter: Yeah, I’d say the, the, the long term numbers are probably shake out to be about a 7% return on trade size per trade. and another way of looking at that is a winning trade is anywhere from, you know, break, even not losing a dollar to about a 15% return in one day.
So, you know, taking average of that seven and a half percent now again so let’s just say that your trade size is $10,000 and you don’t have to trade that large. Right? You can start with this strategy with as little as a thousand dollars. But let’s just say you were doing 10,000. So on that one day trade that 10,000 could possibly make you up to 1500 bucks, 15%, but you’re not risking 10,000 on that trade because of the way we set our stops, the most you could lose is 1000 or 10% generally.
So. That’s why when we know the probabilities upfront, we know our risk and we know our max profit. We just need to keep doing it again and again, and letting odds play themselves out.
[00:30:40] Joel Erway: Got it. Okay. So shoot, for an average, on average, over the lifetime around 7%, seven to 10% is what it shakes out to be. Makes total sense per trade we hope to do that 13 times per month.
[00:30:48] Brad Wachter:
Yeah. Right. Per trade per trade. Yeah. So it’s, I mean, sometimes people like find it hard to believe, like, wait a minute, 7%. I’m happy in a year. If I get 7% of my, on my assets. Well, you know, that’s the crazy options. You can actually get that on a routine basis.
[00:31:09] Joel Erway:
This is fantastic. Like, this is why you get excited, right. Is, is because it’s it. it’s simple, you know, it makes sense. And there’s a rule based system where you’re not gonna get killed. Like you’re not going to, like, your risk is completely mitigated. Like that’s, that’s, you know, as Warren buffet, like that’s the ultimate rule of make money rule number one, don’t lose money rule number two, rule number one, right?
yeah. It’s it makes total sense. So outta curiosity, Brad, like I want. Kind of go backwards a little bit. And like, I would love to hear a little bit about your journey of like all the things that you tried. Like you, you talked about it, like you just didn’t give up. Meaning like you followed this system, you, you picked a, you know, you saw, okay, well this worked here, but this didn’t work.
And so like you modified it, you modified it, you modified it. You modified it. Can you take me through that starting journey for somebody who’s listening right now and still may be. A little bit skeptical. Like I want them to understand, like, what are all the things that you tried and failed that helped helped you modify and tweak the system?
So now it’s this Bulletproof thing that you’ve ultimately come up with. Like, it’s always great to hear that journey story. So people understand, like, what are the iterations that had to go through to get to where we are today?
[00:32:23] Brad Wachter: Yeah, no, thank you. So first of all, I don’t think I mentioned, but in my corporate career, I did work for one of the largest investment companies in the world.
UBS global asset management. UBS is a Swiss bank, but I was not a trader for them. I didn’t manage money for them. I was on the operations side, but that’s what peaked my interest in the markets in general. And then I just sort of over a number of years, made a self-study out of it. And, and yeah, to your point I tried everything.
I mean, I tried, well generally within Options, but I’ve, I’ve done swing trading. That’s where you hold a trade for longer periods of time and you are using kind of charting and indicators to suggest when that stock is at a low point or high point. I’ve done, you know, short term trend trading where you sort of focus on the opening 30 minutes of the market and you use indicators to pick a likely direction.
And you’re, you’re either buying a put or a call to capitalize on that short term movement. I tried you know, different credit spreads and debits. I mean, any kind of, you know, and again, these are technical terms, but you know, you open up any trading platform. There’s about a dozen different trade names.
Right. And I, and I trade all of them. I tried all of them while I was educating myself. Right. So. People that that join my group. A lot of times they’re, this is sort of inside, but I’ll get back to your point. You know, they’re understandably skeptical because there’s a lot of people that do what I do that, you know, will not deliver on the promises.
Well, I used to hire those people, right. I mean, I bought the courses, I hired the coaches and so I’m very sensitive. The fact that. I, I need to deliver on my promises cuz so many people don’t. But, but to your point, yeah, I, you name it and I traded it. What I’ve not done. I didn’t do crypto. I always stayed away from crypto.
Just trading stocks was a little boring for me cuz they tend, that tends to be a slower game. But just about everything in options. And then just slowly, I, I developed the pieces piece by piece, tested it, tried it with my own money, lot of experimentation before I was comfortable to actually. , you know expect others to follow my lead.
[00:34:43] Joel Erway:
I wanna jump in Brad and I want to actually see if I can press you for a little more information. It’s like, what did you try in options? Like if somebody’s already kind of familiar with options and you know, they’re interested in your option strategy, like what are one or two other options, strategies that you tried and, you know, what are some of the holes within those systems that ultimately led you to develop what you got here?
[00:35:05] Brad Wachter:
Yeah, well, it all comes. And I, and I’ll answer that specifically, but it all comes down to win rate and reward risk. So you can have a strategy that for example wins 90% of time, a lot of your credit spread strategies. If you set up a credit spread far out of the money, you could probably win on out of 10 problem is when you lose, you’re losing an outside amount of money, right?
You’re losing. Much more than a one-to-one ratio. So a lot of people get sucked into that idea of what they call selling premium, using a credit spread that’s placed in a safe position because it wins a lot, but then they just get crushed when they lose. So, you know, that’s why I don’t like those kinds of strategies.
I’ve traded strangles and straddles where you’re sort of on both sides of the price of an underly. but those can have very poor win rates, right. If things have to happen, just so in order for you to profit with those. And then I traded a lot of longer term strategies. So like I used to think, okay, you know, I need to be in this trade for a week or many weeks in order to get a decent monthly return.
What I learned from that though, That’s that’s contrary to the velocity of money. If I have to wait a week or two to make a profit or find out that I lost, then it’s gonna take me a week or two at minimum to make that money back. And that’s why I’m a, just such a huge fan of the, of the the, the cycle of, of what we do, because you know, you suffer loss.
And then next trading day, you make it back and you’re, you’re back, you know, to where you were without ever having a big draw done in your account.
[00:36:52] Joel Erway:
Now that’s a, that’s a key, that’s a key point then right there. That’s where it kind of is the aha moment for me. Right. Cause you talk about the velocity of money and before, and I kind of got it, but now I understand why it’s so important to.
Relate that to this strategy is because of all the other stuff that you’ve tried before, like, okay, I might take a longer term strategy where, you know, it’s a one week to two week payoff, but guess what if I lose that means I have a one to two week, you know, timeframe of me needing to regain that. So now that makes sense.
So like now it’s like, okay, cool. Now I understand why we, you know, why the velocity of money is so important with our strategies. Sometimes we can’t afford that. Like, I can’t do a paycheck strategy if I have to wait two more weeks to potentially recoup my gains. Right. I don’t mind risking one paycheck. I lose.
If I know that the very next time, like I’ll win it back. And which is gonna be in two days from now, right. Monday to Wednesday, Friday, right? It’s every other day, you know, three outta five trading days. So. That makes total sense.
[00:37:51] Brad Wachter:
Right? Well, and other than profitability, what’s so important about that concept is that trading is as much about mindset as it is about the mechanics of your trade.
Right? And so what’s so cool about maintaining a one-to-one reward to risk and the frequency in which we trade is that it’s very hard to get discouraged because when. Do have a loss. We know we’re gonna bounce back right away. And so, especially when you’re a newer trader and you haven’t developed sort of the strong trader’s mindset it’ll get you to the point where your confidence will be built your comfort level, and then you can sustain higher and higher.
Losses. And what I mean by that is that it’s all proportional. So if I’m trading at, at a thousand dollars size, you know, I might lose 50 bucks, right. Pretty easy to handle that. If I’m trading at 20,000, you know, I might lose 2000 maximum in the trade, but I could also make 2000. So over time as you do this, I call it.
What is your ruin your day number, right? What is that number that should you have lost at that day? It’s gonna ruin your day. If you suffer a ruin your day loss, then you’re trading too large because you haven’t yet developed the confidence, the comfort and the mindset to be able to brush that off as just part of the process.
Yep. And, and that’s, so that, that mindset is critical to what we do.
[00:39:23] Joel Erway:
I love it, man. And that’s that kind of ties us all together for me. Right. You know, anytime you deal with money, I don’t care if you’re trading. I don’t care if you’re building a business. I don’t care if you’re in marketing. Like anytime that you deal with money, now you’re messing with your head and you have to have the confidence in being able to do it.
And so like, Probably all smart investors. You’re probably gonna say start small until you can build that confidence. That’s why they say it start small until you can build that confidence. Stay away from that ruin your day number. Right? Because losses are inevitable. Meaning like, you know, it’s gonna happen.
Like the day’s gonna happen where your trade loses and you have to be okay at home mentally, emotionally, and it’s stable to deal with that.
[00:40:05] Brad Wachter:
Sorry, because otherwise you’re gonna stop trading and that, and that’s not good. Right. But that. In order to make this a long term, you know, extra income, full-time income, whatever.
You’ve gotta keep that mindset in check and following the rules will help you do that because I teach people just how to gradually. Increase their trade size when they’re able to handle it. Not only financially, but also mentally.
[00:40:30] Joel Erway:
Well, Brad, I want, we’re gonna get to part two of this interview in just a second, but I wanna make sure that people who are listening right now understand that Brad has a fantastic system and a fantastic guarantee where Brad go ahead and repeat your guarantee of, I wanna make sure I’m not repeating it for you.
So what is your guarantee? If somebody comes and works with you and follows you.
[00:40:48] Brad Wachter:
Yeah. So, so with the paycheck trade, which again is step by step rules for a strategy of trading options. That can allow consistent profits, high probability of winning good risk control. I’ll actually guarantee that I can get you to 10,000 a month in trading profits and I’ll work with you until that happens.
So even if you wanna start out with fairly small dollars, as long as you can commit to me that you’re in this for long haul. We’ll work together until you get to 10 K a month in trading profits. So that’s the guarantee if you don’t get there, but you can prove to me that you’re you follow the rules and that you’re trading consistently.
I’ll give you your money back.
[00:41:28] Joel Erway:
That’s fantastic, man. It’s a completely risk free, no brainer offer. And you can head over to paychecktraders.com. Learn more about working with Brad and following his paycheck trading system. And that’s just rock solid guarantee. I mean, it’s, it’s, it sells itself, but hopefully you guys have learned a little bit more about his system and have trusted in Brad, himself as an expert, as an, as a leader, which is my whole goal for bringing people onto this podcast is to build that trust factor and, and get people to understand.
Okay. This system operates this way. I can trust this guy. Let’s, you know, let’s see about taking the next. All right. So Brad, I wanna get to part two of this interview, which we call the expert resilience section. And so I wanna ask you a couple of questions about how you perform as an expert, right? So how you perform in growing your career in, in developing your career and, you know, the mindset.
That you’ve had to that you’ve had to build in order to overcome different obstacles and accelerate your career as somebody who teaches others and who leads others in your system. So the first question that I have for you is to be as successful as you are, you’ve probably had to bounce back from a low moment.
So can you take a minute to share with us a down moment in your life and how you practiced resilience?
[00:42:47] Brad Wachter:
Yeah. So my, my lowest low came in 2008 June of 2008. And within the span of a few months I was fired from a corporate job. My mom died and I spent about a quarter million dollars on a business.
And I lost that in very quick order. I had no business buying the business that I did. Didn’t think it through huge mistake. And so that left me at what was at the time and still to this day, my lowest low, that was also the start of my entrepreneurial journey. So, you know, there’s a lot of good that came from that, which I believe, you know, in the concept of, but for not that happening, you know, you wouldn’t be who you are, where you are, etc.
[00:43:38] Joel Erway:
Yep. So what happened? I mean, you, you bought a business that, that failed, what was the business? And, and I guess, like, what was the business and what made you jump to give that a shot?
[00:43:49] Brad Wachter:
Well, at that time I had wanted to get outta corporate, you know, I, I had the, the freedom dream, right? I wanted to you call it living the semi-retired lifestyle.
Right. That was, that was my dream. And but I didn’t have a plan to get. Well by being fired, I, I was forced in action. Right? So. When you’re forced in action, that could be good because you know, you’ve, you’ve gotta come up with something, but it could be bad because if you don’t have a good plan, then you might be in trouble.
So I I was interested in the online world. I, I wanted something that sort of was tied into my corporate experience. so I actually bought believe it or not an existing online job board, one of these places where, you know, people post jobs in a certain industry niche. I mean, we all are familiar with the big ones, right?
Like monster and curb builder. Right. But they’re a, a million, little small ones that serve basic niches either by industry or professional type. and I bought one. And but I didn’t know anything about a running an online job board. Right. I thought I did. Because I kind of could understand like who was paying for these things, you know, the corporate hiring managers or, or what, whatnot that would invest in these job postings, but I was totally outta my league.
And I ended up realizing that fairly quickly and selling that back to someone that owned a number of other job boards that they had been, you know doing well with, but I sold it for pennies on the dollar. And then the situation I was in is that I basically, you know, spent what savings I had to that point of life.
And I’m like, uhoh. I’m still committed to being an entrepreneur, but now I need to find something that requires very little capital, cuz I don’t have any left. And that’s what sort of sent me on, you know, the journey. That’s now been 14 odd years in the making, not always in trading. You know, I’ve been coaching people for a number of years and trading myself for, you know, 15 odd years.
But I had other entrepreneurial journeys before I ended up with paycheck traders.
[00:46:06] Joel Erway:
So, I guess, how would you say, how would you say that that experience helped you practice the art of resilience?
[00:46:14] Brad Wachter:
Yeah, so, you know, just Getting up, putting one foot in front of the other, knowing that I didn’t have any backstop anymore.
Right. I mean, I’m, I’m kind of a big believer in pulling the rip cord in life. You know, a lot of people just never get to where they want to go because they never let go of what they have now. Right. The golden handcuffs or whatever you wanna call that. So I, I guess that fits into resilience because I I’m someone that is a little bit too stubborn to quit, but then when you’re in that situation that I was in, like, you can’t quit.
Right. You got a family, you got bills to pay. So you better figure it out and you better do it quickly. And fortunately, you know, I was able to eventually turn around, can’t say it was quick , but it happened. And the best thing that ever happened to me. So, you know, looking back on it, thank you for that person that fired me.
Thank you for making that mistake of buying that business that failed because it set the time clock that I got on that eventually led me to, you know, my lifestyle.
[00:47:17] Joel Erway:
I love it, dude. And so many people can relate to that story because there’s almost always a trigger moment in any entrepreneur’s journey of like something bad happened, but we turned that bad into a positive or something unexpected happened.
And you know, our back was up against the. You know, the door, our back was up against the wall and we could only move forward because we’ve fallen as far back as we possibly could. And so I love hearing those stories, you know, those, those moments of like, oh, well a company collapsed or I got fired or I invested a million dollars into a project that completely bombed.
And well, now I’m a million dollars in debt. And so like, I, I, the only way I can go is up because I’m so far down below that, like, I can’t fall any further back below, so I love it. All right. Second question. Now, if you had to pick one, what one mindset would you say has meant the most to you? And can you share an example of how that works?
[00:48:11] Brad Wachter:
Yeah, I guess, I guess for me, it’s just the, the idea of, of don’t quit. Like that’s, if I have a, a mantra, in fact, I do have a mantra. I, I, if, if I can remember it, I, I think there’s a poem that I had memorized. Let me see if I can do it. So when things go wrong, as they sometimes will, when the road you’re trudging seems all uphill, when care is pressing you down.
Don’t worry. Just don’t quit. right. So oh, I keep going things go wrong as they sometimes will. Okay. I got through that. I don’t know the rest of it, but anyways it was a while where I was saying that to myself a lot. so yeah, I mean, it’s as simple as that, right? I mean, if you look. I think people overestimate what they can accomplish in a short period of time and they underestimate what they accomplish over a longer period of time.
And if you just stay in the game, you’re probably gonna get there. So that, that would be, you know, my resilience mindset in a nutshell.
[00:49:12] Joel Erway:
I’m time in the game, man. It’s the most valuable resource that anybody can consistently deposit into their bank account because time will compound everything. Money will follow, but time is your compounding factor.
So I’m a huge, huge advocate in, in that. Love it. All right. Next question. What is something that you or your company does that you are really good at? And do you have a story about that?
[00:49:36] Brad Wachter:
Well, I mean, I guess You know, creating the paycheck trade and teaching people that such that they can change their life is, you know, that’s, that’s my why.
And that’s what I’m good at. Right. I’m good at analyzing things, putting things together to produce a useful product. And so you know what I have now, In the paycheck trade, which is what my company’s based on is something that could help a person with a more of under retirement. It could allow a person to leave the corporate world like I did and create a full-time income.
I’ve got a guy that wants to retired Italy. That’s his dream truckers that want to get off the road. You name it. I got a pastor that doesn’t make too much money in his church income and he supplements it with, with the paycheck trade. So so that’s what I’m good at. I’m good at, you know, communicating something that I’ve created, that I’ve built in a way that people can understand it and apply it.
And it, it creates life change for.
[00:50:42] Joel Erway:
Love it, dude. All right. So final question. As we wrap up the expert resilience section what is your, why? What gets you outta bed every day to strive for? Excellent. And can you tell us a story of how that played out in real life?
[00:50:55] Brad Wachter: Yeah. So my, my, why is two part and I’ve kind of mentioned the, the, the client side, right?
Like I get a real kick out of being a small part of their success and what they can do with that extra income. But the other part of my, why is more personal I’m a big believer in freedom. You know, I never, never fit well in the corporate world because, you know, I didn’t want people telling me what to do and going to meetings that were didn’t have to go unproductive, et cetera.
And so to have created for what is for me sort of the perfect lifestyle style and to have me be almost infinitely available to my kids as they’re growing up for all their activities. To produce a good income to give them a lifestyle. That’s the personal side of my, why? So, you know, the personal, why, and then what I do for people is, is the other part of my, why.
[00:51:52] Joel Erway:
So is there any specific story that comes to mind where you’ve had to really dig deep and kind of remind yourself about that? Why to give yourself that drive, give yourself that motivation when that might be lacking in, on a certain day or certain time in yours.
[00:52:09] Brad Wachter:
Well, and, you know things weren’t always going so well.
Right? So after that big financial loss, you know, did it cross my mind that the best way to take care of my family would be go back to corporate or, you know, during times during my entrepreneurial journey where things weren’t going as well, you know, did I, did I doubt whether or not I had my why in the right place, you know, was I, was I risking the security of my family by being an entrepreneur.
You know, those were tough, tough thoughts that I had to overcome, but ultimately I just clung to the idea that I would get there and it would be the best for not only myself, but my, my family and also those people that I can now serve.
[00:52:53] Joel Erway:
Love it, dude. Well, Brad it’s been an honor to have you back on the show.
Well, not back on the show, but it’s an honor to chat with you again. I know we chat regularly every now and then If you’re considering following Brad’s strategy of the paycheck trading system, look no further than following Brad, because Brad has a ridiculous rock, solid guarantee you help get to $10,000 per month in trading profits, or you don’t pay.
I mean, I don’t know if anybody else who has. That type of guarantee with their system. It’s absolutely fantastic. Hopefully you’ve learned enough about Brad that, you know, he’s true to his word. He’s a man of integrity. He’s a man of honor. I know there’s lots of people that you can follow in the trading space and, you know, hopefully you Brad’s message resonates with you from a personality standpoint from just the type of person that he is.
And hopefully this methodology makes sense to you understand that he put, he puts bumpers in place to where. You know, you’re only risking so much in order to get that reward and, you know, hopefully it makes sense to you, but if not, you know, that’s why you can reach out to Brad. You can contact him over at paycheck.
I wanna make sure I get the URL correct. paychecktraders.com and Brad, anything else before we, we wrap up any parting thoughts, any parting words?
[00:54:10] Brad Wachter:
You know, just it was kind of the theme of the, of this interview, just resilience. So whatever your dream is in the world, you know, just go for it.
Don’t quit. Go after it. If I can help you with that. I’d be happy to, but whatever it is that you want to do, you know, just follow Joel’s lead and, and just go.
[00:54:29] Joel Erway: Love it. All right. So if you are interested, go to paychecktraders.com. Brad, it’s been an honor. It’s been a pleasure. Thanks for reconnecting.
And for all of you, we’ll see you on the next episode. Take care.
Thanks for listening to this episode of experts unleashed. If you’re looking for new and innovative ways to design and execute your plan to become a six or seven figure expert without the massive team apply now at theperfectexpert.com.