Trading Mindset and Mental Toughness | Interview with Veteran Trader Joe Fahmy

Welcome back to the Market Chat! This week veteran trader Joe Fahmy of Zor Capital is our guest. Joe is an experienced trader with over 20 years of experience. In this market chat interview, we focus on trading mindset and mental toughness which according to Joe is 80% of successful trading. We also discuss his background, top growth stock trading books, as well as get into his investing process and how he analyzes price action.
Connect with Joe:
jfahmy
joefahmy.com/
Joe's Recommended Trading Books
How to Make Money in Stocks, William O’Neil amzn.to/33cpYqX
How to Trade in Stocks, Jesse Livermore amzn.to/3eicKQ7
Reminiscences of a Stock Operator, Edwin Lefevre amzn.to/3h65PuX
The Disciplined Trader, Mark Douglas amzn.to/2QM4aAc
Trading in the Zone, Mark Douglas amzn.to/2QTis1Q
Trader Vic-Methods of a Wall Street Master, Victor Sperandeo amzn.to/3tk59EA
Trader Vic II-Principles of Professional Speculation, Victor Sperandeo amzn.to/3eihEfN
How I Made $2,000,000 in the Stock Market, Nicolas Darvas amzn.to/2Rmu39u
The Battle for Investment Survival, Gerald Loeb amzn.to/2Ss1doP
Confessions of a Street Addict, James Cramer amzn.to/33czPxd
Market Wizards amzn.to/3tk5zuI
The New Market Wizards amzn.to/33gh1Nq
Think and Grow Rich, Napoleon Hill amzn.to/3h2Vnoa
The Magic of Believing, Claude Bristol amzn.to/3b1fkI5
You’ll See It When You Believe It, Dr. Wayne Dyer amzn.to/3eNoetO
The Power of Positive Thinking, Norman Vincent Peale amzn.to/3vFq72v
The Magic of Thinking Big, David Schwartz amzn.to/2PMHcIq
Awaken the Giant Within, Anthony Robbins amzn.to/3ei3I5z
Stay in touch
► RichardMoglen
► [e-mail]
If you would like to support my channel
► www.buymeacoffee.com/RichardMoglen
Marketsmith: marketsmith.investors.com/ms-platform/?src=A00587A&refcode=RM_Links
Timestamps:
0:00 Introductions
0:50 Mindset is 80% of Trading
1:38 Mindset for Superior Returns
2:12 Consistency
2:28 Paul Tudor Jones, Michael Jordan
3:26 Cathie Wood Ark Fund 150%
3:45 1st key For Superior Returns: Concentration
5:01 2nd key For Superior Returns: Stock Selection
5:38 2nd key For Superior Returns: Riding Winners, Metal Toughness
7:40 Tips to build Mental Toughness
8:10 Start your day off with gratitude
9:30 PTJ, Tony Robbins
10:20 Get into shape physically and mentally
10:48 David Goggins
11:10 Feed your mind with strong ideas
12:20 How to recover from poor trading
13:58 Joe's Trading Journey
14:40 Jesse Livermore, William O'Neil,
16:30 Early Struggles with Trading
16:45 Learning to be out of the market
17:15 The market is healthy 2-3 times a year
19:43 Signs of a healthy market
22:30 Institutions control the market
24:12 21ema Mike Webster
24:30 Timeframe matters
26:00 Characteristics of the Greatest Stocks
29:00 Strong Price Action
30:20 You always have to define your risk
31:42 Major Technical Patterns to know
32:10 Use every tool at your disposal, fundamentals and technicals
32:50 Cup with handle
33:49 Buying Early Entries
34:15 Reversals at standard pivots- Algos
38:00 managing risk with position sizing
38:50 Advantages of being an individual investor
41:00 Working Full time and Trading
42:10 Stop loss management and the 10 week
43:54 Early versus Late Stage Bases
45:00 Joe's recommended reading List
45:30 HTMMIS first 100 charts
47:00 Battle for investment survival
47:30 Market Wizards
47:40 Think and Grow Rich
49:00 Success Leaves Clues
49:59 Enron Example, cut your losses
53:00 Charting Setup Moving Averages
53:30 March Correction
54:19 1998 Correction
54:30 2009 financial Crisis
55:30 1929 Crash
56:25 INMD Tight areas Accumulation
57:15 weekly Charts
58:46 CRWD IPO primary Base
59:20 10 week moving average
59:58 Significance of tight weekly closes
1:01:40 Fund Ownership
1:02:20 PANW historical Example
1:03:03 SRPT historical Example
1:04:20 IPO Bases GOOG BIDU Primary bases
1:05:15 Over Hyped IPOs-COIN
1:07:01 Don't be afraid of new names
1:07:30 Past leaders Basing TDOC NIO
1:08:10 SQ Example, AMZN, NFLX Long Term bases
1:10:25 ZM TDOC
1:13:25 Stocks peak 2-3 Quarters before fundamental slow down
1:13:25 MU NFLX AAPL FB GOOG reaction to earnings
1:15:20 Its the reaction to news that matters
1:17:18 Earnings gap ups
1:18:45 Relative Strength Line
1:20:00 Joe's Favorite Screens
1:20:20 30 for 30
1:21:00 Webster-experiment with screens
1:22:00 Accelerating margins
1:23:11 Volume Blast
1:24:30 Weekly and daily routines
1:27:00 ARKK IWO basing
1:28:00 Correction under the surface in growth
1:29:30 Advice for new traders Learn to make decisions, post Analysis
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Music from Absent Mind: soundcloud.com/absentinlife
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Disclaimer
The content of this video is for educational purposes only and should not be taken as a suggestion to buy or sell anything

[@Rholedz]

This is one of the top episode on your channel that helps me a lot on my trading journey. I’ve watched this 100x and I still keep watching it till this day. Joe has a great words of wisdom how to be a successful trader. Thank you!

[@figgy163]

Excellent as always, super guest, the first 60 seconds grab you and the journey begins. I could listen to Joe all day. Thanks to you both.

[@RichardMoglen]

Same here, Joe was great to talk to!

[@michelemeaux8792]

Nice

[@brandondever5592]

@@RichardMoglen udy

[@brandondever5592]

@@michelemeaux8792 iyy ya dfu

[@brandondever5592]

@@RichardMoglen t

[@Eudrick]

This is now my favorite interview.

[@RichardMoglen]

Awesome!

[@Savetheworld931]

Joe is full of positivity. 1 minutes of the start and im hooked. Thanks for the superb content. Keep em coming.

[@RichardMoglen]

Awesome! Thank for watching!

[@healthshorts]

This guy is fantastic, his way of talking about trading is so simple and makes it so easy for beginners like myself to digest the complexity of the stock market. I missed the promo code but definitely he is one of the best traders to learn from. Thanks Richard for the great interview.

[@RichardMoglen]

Great to hear!

[@RichardMoglen]

Timestamps: 0:00​ Introductions 0:50​ Mindset is 80% of Trading 1:38​ Mindset for Superior Returns 2:12​ Consistency 2:28​ Paul Tudor Jones, Michael Jordan 3:26​ Cathie Wood Ark Fund 150% 3:45​ 1st key For Superior Returns: Concentration 5:01​ 2nd key For Superior Returns: Stock Selection 5:38​ 2nd key For Superior Returns: Riding Winners, Metal Toughness 7:40​ Tips to build Mental Toughness 8:10​ Start your day off with gratitude 9:20​ Exercise and eat right 9:30​ PTJ, Tony Robbins 10:20​ Get into shape physically and mentally 10:48​ David Goggins 11:10​ Feed your mind with strong ideas 12:20​ How to recover from poor trading 13:58​ Joe's Trading Journey 14:40​ Jesse Livermore, William O'Neil, learning from Greats 16:30​ Early Struggles with Trading 16:45​ Learning to be out of the market 17:15​ The market is healthy 2-3 times a year 18:20​ The best traders cut losses 19:43​ Signs of a healthy market 20:50​ 50 day moving average 22:30​ institutions control the market 24:12​ 21ema Mike Webster 24:30​ Timeframe matters 26:00​ Characteristics of the Greatest Stocks 28:50​ 80% of Winners come from these 5 groups 29:00​ Strong Price Action 30:20​ You always have to define your risk 30:45​ Cyclical Stocks 31:42​ Major Technical Patterns to know 32:10​ Use every tool at your disposal, fundamentals and technicals 32:50​ Cup with handle 33:49​ Buying Early Entries 34:15​ Reversals at standard pivots- Algos 38:00​ managing risk with position sizing 38:50​ Advantages of being an individual investor 41:00​ Working Full time and Trading 42:10​ Stop loss management and the 10 week 43:54​ Early versus Late Stage Bases 45:00​ Joe's recommended reading List 45:30​ HTMMIS first 100 charts 47:00​ Battle for investment survival 47:30​ Market Wizards 47:40​ Think and Grow Rich 49:00​ Success Leaves Clues 49:59​ Enron Example, cut your losses 53:00​ Charting Setup Moving Averages 53:30​ March Correction 54:19​ 1998 Correction 54:30​ 2009 financial Crisis 55:22​ Volume Accumulation Distribution 55:30​ 1929 Crash 56:25​ INMD Tight areas Accumulation 57:15​ weekly Charts 58:46​ CRWD IPO primary Base 59:20​ 10 week moving average 59:58​ Significance of tight weekly closes 1:01:40​ Fund Ownership 1:02:20​ PANW historical Example 1:03:03​ SRPT historical Example 1:04:20​ IPO Bases GOOG BIDU Primary bases 1:05:15​ Over Hyped IPOs-COIN 1:07:01​ Don't be afraid of new names 1:07:30​ Past leaders Basing TDOC NIO 1:08:10​ SQ Example, AMZN, NFLX Long Term bases after powerful moves 1:10:25​ ZM TDOC 1:13:25​ Stocks peak 2-3 Quarters before fundamental slow down 1:13:25​ MU NFLX AAPL FB GOOG reaction to earnings 1:15:20​ Its the reaction to news that matters 1:17:18​ Earnings gap ups 1:18:45​ Relative Strength Line 1:20:00​ Joe's Favorite Screens 1:20:20​ 30 for 30 1:21:00​ Webster-experiment with screens 1:22:00​ Accelerating margins 1:23:11​ Volume Blast 1:24:30​ Weekly and daily routines 1:27:00​ ARKK IWO basing 1:28:00​ Correction under the surface in growth 1:29:30​ Advice for new traders Learn to make decisions, post Analysis

[@rosskennedy8356]

Took me a while to get through this. Solid guy, humble and funny. It struck me how many similarities there were with other traders in terms of approach, rules, discipline and adjustments after post analysis. He like all others emphasize selling as the key to performance. Great interview, worthy of a multiple listen.

[@michelemeaux8792]

Hi

[@bagholderwithaplan]

"cut your losses, cut your losses, cut your losses". I love this guy

[@RichardMoglen]

Joe's the man, great dude

[@happousaii]

Richard, thanks for all you here buddy. Really grateful for what you give back to the community. Loved learning from Joe!

[@RichardMoglen]

My pleasure!

[@vpsinghmv]

Awesome interview , loved the presentation skill and powerful voice of Joe Fahmy . Richard you are simply awesome, loved the selection of the questions , your patience and your cute smile.

[@RichardMoglen]

Glad you enjoyed it!

[@minimalinterest7291]

your interviews are first class!!! Thank you!!

[@RichardMoglen]

Thanks!

[@timeless8135]

Richard , check Joe's smile around 1:26:50 when you are talking about the price action after earnings on SNAP . That was special seeing that part because you can see his smile speaking words . That was my favorite part of the interview :) I love how he asked you some questions about your trades too . Love your work btw , a gifted interviewer and trader too I bet ~

[@takugi6648]

Very good trading mentality, and technical analysis. Let me learn the ideas of great traders again~Thank you very much for this channel and Joe

[@RichardMoglen]

Glad you enjoyed it!

[@Timeless_Trader]

Fantastic interviews RIchard, thank you for all of these.

[@RichardMoglen]

Glad you like them!

[@AJ-kw8gm]

Great interview both Richard and Joe! Joe, thank you for sharing so much of your hard earned knowledge. Richard, thanks for your continued work by bringing allowing us to see and hear the stories of these modern day great traders. I wish you continued success in all that you do.

[@RichardMoglen]

Glad you enjoyed it!

[@NicoleDeanna]

Great content as always Richard. Appreciate that you took the time to time stamp this, definitely takes a while while editing to break these out.

[@RichardMoglen]

No problem Nicole!

[@Harsh_Dubey_1012]

Richard thanks for providing us with such quality content! loads of respect and love from India.

[@RichardMoglen]

My pleasure!

[@quacker1982]

The content you provide Richard is just fantastic. I wish this was around in the early days when I first started. Another great interview.

[@RichardMoglen]

Glad you enjoyed it!

[@mrgholipoor]

Hi Richard, It was VERY very very very good interview. It seems Joe gave us a crash course on How to Make Money in Stocks. Love you both. Thank both of you.

[@RichardMoglen]

Our pleasure! Thanks for watching!

[@BennyTenuci1]

One of the most informative interviews i have watched. Thank you for sharing your experience and expertise

[@thuongdo9129]

One of the best interview I've heard, a lot of helpful information to learn, appreciate your time to make it

[@RichardMoglen]

Glad you enjoyed it!

[@oghunk6658]

Richard, greatly indebted to you for bringing in such good content and rich experiences.

[@RichardMoglen]

No problem! Thanks for watching!

[@davekenny5293]

Another fantastic Market Chat! Really appreciate Joe’s analysis and approach to the market. He touched on a few mistakes I’ve made recently such as using a decisive close below the 50 day as a sell indicator.

[@RichardMoglen]

Thanks so much Dave!

[@marc.laliberte]

Thanks Richard and Joe. I've learn so much with Joe being a member. sharing is passion for trading. really generous of his time and knowledge. Thanks to both of you. Richard your channel is really great..Joe always have the orange o neil book at one arm distance lol...

[@RichardMoglen]

Thanks Marc!

[@petrfantamusic9749]

Big respect to both of you guys, thank you for all this great work Richard!

[@parvinderpabla7190]

So much great information, I have to watch it again. Thank you both for your time and knowledge :)

[@RichardMoglen]

Glad you enjoyed it!

[@stevesahlfeld8976]

Great interview Richard. I have followed Joe on Twitter for awhile. He's great, very inspirational and is willing to help people understand the markets. Hopefully in a couple of months you can have him back on again !!

[@RichardMoglen]

Thanks Steve, I'm sure he'll be coming back

[@tommyc120]

Excellent interview, thanks so much. Joe is so knowledgeable

[@RichardMoglen]

Thanks Tommy!

[@bhaynes5037]

Another great interview, thanks to both of you for the time!

[@RichardMoglen]

Our pleasure!

[@the_gold_miner]

Very helpful.. Thank you richard

[@RichardMoglen]

Glad it was helpful!

[@michelemeaux8792]

Hi

[@robertohu3151]

Richard tx for bringing Joe to the interview, loving it.

[@henryluk1408]

great interview Richard! I really like it, especially the MarketSmith screens that Joe showed!

[@salmaa9790]

Thanks the educational interview . it was fun listening to him

[@RichardMoglen]

Great to hear!

[@roblaskowski1030]

Thank you for sharing your wisdom, Joe! Another amazing interview, Richard!

[@RichardMoglen]

Thanks for listening!

[@jakebendall8092]

Another invaluable interview, thanks very much Richard for your continued hard work.

[@RichardMoglen]

Glad you enjoyed it!

[@blade816]

I love this guy...I remember in an IBD podcast when Irusha asked him: "Joe, how do you define tightness on a chart?" Joe's reponse: "well I dont want the chart to look like my EKG after a double cheeseburger" lol

[@RichardMoglen]

Lol!

[@GlebKretinin]

Great speakers, questions and so much covered. Loving the learning curve and mindset Qs. Thank you!

[@RichardMoglen]

Glad you enjoyed it!

[@bradwise5612]

Another great interview, thank-you Richard and Joe

[@RichardMoglen]

Thanks Brad!

[@dinas0r]

Your content is excellent Richard! Thank you so much. Keep it up!

[@RichardMoglen]

Thanks, will do!

[@akashgoswami5449]

This is another great interview. Thanks a lot Richard and Joe!

[@RichardMoglen]

Our pleasure!

[@L1amTill]

Another great interview. Thanks for these and enjoyed Joe's personality in this one.

[@RichardMoglen]

Glad you enjoyed it!

[@Jake_Belden]

Really great interview, hadn't heard of Joe but it was a super easy watch and he's great.

[@RichardMoglen]

Thanks Jake!

[@jamesdoyle59]

Richard you did it again! Great interview 👍

[@RichardMoglen]

Thanks Jim!

[@samdoral4927]

Another great interview, thank you

[@RichardMoglen]

Thanks Sam!

[@ЯрославЗахаров-ы2я]

That was awesome. Guy is maniac, great questions as always! Top quality content.

[@RichardMoglen]

Glad you enjoyed it!

[@michelemeaux8792]

Hi

[@tmclbnk]

Absolutely a thumbs up 👍 Richard, learning a lot from Trader Lions Leadership Blueprints Course. Again great work on these interviews, well done!

[@RichardMoglen]

That's great to hear!

[@lzalimkhan]

Great interview thank you !

[@RichardMoglen]

Glad you enjoyed it!

[@rifqonkhairazi1797]

Thank you for sharing, Richard!

[@RichardMoglen]

My pleasure!

[@akioishizuka1413]

Thanks a lot for the great interview. Actually I watched it multiple times.

[@RichardMoglen]

Glad you enjoyed it!

[@alexn2514]

Really good interview, will definitely be looking at weekly charts more. Thanks to you both!

[@RichardMoglen]

Glad you enjoyed it!

[@michelemeaux8792]

Hi

[@victorzerpa5548]

This is one of the best interviews. Great educational content. Joe is an excellent communicator and Richard keeps doing amazing work. Understood now the importance of weekly charts. Its a first class educational service provided by Richard.

[@RichardMoglen]

Thanks for watching Victor

[@xianlin7831]

very usefull information ,thank both of you very much

[@krishnakumarmalu9400]

Awesome interview once again Richard! Keep up the great work...

[@RichardMoglen]

Thanks, will do!

[@kingisa00]

Great interview!

[@RichardMoglen]

Thanks Malik!

[@nailouali5108]

excellent interview

[@RichardMoglen]

Thanks!

[@RichardMoglen]

Joe's Recommended Trading Books How to Make Money in Stocks, William O’Neil amzn.to/33cpYqX How to Trade in Stocks, Jesse Livermore amzn.to/3eicKQ7 Reminiscences of a Stock Operator, Edwin Lefevre amzn.to/3h65PuX The Disciplined Trader, Mark Douglas amzn.to/2QM4aAc Trading in the Zone, Mark Douglas amzn.to/2QTis1Q Trader Vic-Methods of a Wall Street Master, Victor Sperandeo amzn.to/3tk59EA Trader Vic II-Principles of Professional Speculation, Victor Sperandeo amzn.to/3eihEfN How I Made $2,000,000 in the Stock Market, Nicolas Darvas amzn.to/2Rmu39u The Battle for Investment Survival, Gerald Loeb amzn.to/2Ss1doP Confessions of a Street Addict, James Cramer amzn.to/33czPxd Market Wizards amzn.to/3tk5zuI The New Market Wizards amzn.to/33gh1Nq Think and Grow Rich, Napoleon Hill amzn.to/3h2Vnoa The Magic of Believing, Claude Bristol amzn.to/3b1fkI5 You’ll See It When You Believe It, Dr. Wayne Dyer amzn.to/3eNoetO The Power of Positive Thinking, Norman Vincent Peale amzn.to/3vFq72v The Magic of Thinking Big, David Schwartz amzn.to/2PMHcIq Awaken the Giant Within, Anthony Robbins amzn.to/3ei3I5z

[@gaberoyalll]

You can't be grateful and angry at the same time the human mind is uncapable of that 8:45

[@RichardMoglen]

True!

[@mhaddadi]

Hi, I couldn't find you on Stitcher, Do you have an audio version only.?

[@KenHicksJr]

55:55 never give yourself a negative label. Great video.

[@RichardMoglen]

Thanks!

[@michelemeaux8792]

So nice I enjoyed this video I am just watching it for the first time

[@RichardMoglen]

Glad you enjoyed it

[@mudasar1]

very nice interview.

[@RichardMoglen]

Thanks!

[@jerseyjeeper1575]

What time frame is appropriate to use the 50 day EMA on? Is there an alternative to the 50 day on other time frames?

[@RichardMoglen]

I use the 50 day simple on daily charts which is the 10 week on weekly charts

[@jerseyjeeper1575]

@@RichardMoglen Thank you, awesome video and interview. You came across as an expert as well. Filled here and @ Twitter ! 😁👍

[@PopPop0424]

LOVE BACON!!!!

[@RichardMoglen]

Hahaha

[@k.rajeshjagananth3769]

Really great interview. Continued support and appreciation for Richards’s mindset and interview skills. Fantastic talk - it is important to be in the company of people like you. What you do begets success for many

[@RichardMoglen]

Glad you enjoyed it!

[@casiddharthbhatia6913]

Awesome bro

[@RichardMoglen]

🤙

[@mongchooibeng800]

Wow...great interview as always. Joe and you seems a match..great interaction and warmth. Just a joke..with regard to Enron..the analysts were sreaming Buy!Buy! or was it actually Bye Bye? You are going to give Chat with traders a run for the money...a new unicorn on the horizon?

[@RichardMoglen]

Thanks!

[@hubert-strasser]

Great Video :-)

[@RichardMoglen]

Thanks!

[@ahmedelbadry2014]

super super awesome

[@RichardMoglen]

Thank you! Cheers!

[@InStevenWeTrust]

Joe!!

[@jameswatt8841]

“If they’re a crackhead you’re probably gonna be a crackhead too”. Haha.

[@mytube99]

Can you interview Keith from Hedgeye?

[@ananovo8662]

Go Terps!

[@bagholderwithaplan]

I've been trading for 14 months, and I'm just now learning that there are 2 Nasdaq indexes, the 100 and the composite. Stupid me lol

[@RichardMoglen]

We can always learn more

[@joshmurphy8]

Guys if you are wanting an investment I would highly recommend looking into bonfire. You can watch 1000s of these great videos however it doesn't matter if you don't take action

[@RichardMoglen]

What is one key thing you took away from this interview?

[@davidbond9783]

Weekly volume bars.....good stuff...Thank you Joe and Richard

[@akashgoswami5449]

80% mindset - 20% techniques concentrate your portfolio and Joe eats a lot of bacon daily :-)

[@oghunk6658]

50 day/10 week average to guage the support from the institutions and market condition.

[@roblaskowski1030]

Use the tools available and find a trading technique that you are comfortable developing with your personality.

[@stevesahlfeld8976]

@@akashgoswami5449 This comment .... minus the Beacon !!

[@mytube99]

2 x speed sounds normal

[@pavankamat6985]

Wow! Sometimes I wonder why is this even free xD