[INTERVIEW] Paso Milak’s Incredible Journey to Trading Success

Interview Highlights

I highly recommend listening to the full interview. It’s one of the best ones we’ve put out to date. Here are a few notes from the interview.

Paso’s Journey to Trading Success

• Paso has been trading for about 5 years
• He came from Bosnia to United States as a refugee during childhood.
• Paso went to law school and dropped out freshman year after realizing it wasn’t for him.
• He got a job at a pharmaceutical company after dropping out.
• Paso realized he made more money in stock (from stock options) than from his salary. This is how he became intrigued by the markets.
• Paso quit his job so he could pursue day trading. He thought “buy and hold” would be simple after seeing the returns on his stock options.
• Paso started trading, got lost in another chat room, and found IU a month later.
• Paso had a lot of pressure to perform, as both he and his parents were out of jobs at this time.
• Eventually, he had to get a job in sales again so he could get more capital. At this point, he switched to part-time trading.
• He still struggled to find consistency for 2 years
• Paso’s first big win was 100k on a swing trade. This was the start of Paso’s massive success.
• Paso began to develop consistency, but still struggled with bigger losses. He would make 2-5k/day for a few days  in a row and then lose bigger money on another trade. His goal was to eliminate losses and let the wins accumulate.
• Paso has been trading full time for the past 2 years

Paso’s Trading Process

Paso has a unique trading process, based primarily on simplicity. Here are some of the details.

Trade Criteria

• Paso looks for opportunities where sellers become exhausted, allowing for a trade reversal. 
• He is primarily interested in stocks that gap up or down
• Paso focuses on the “big money” in a trade. He prefers to pay attention to institutional buying vs. retail.

Building Watch Lists

• After market close, Paso reviews news and financials for companies making headlines. 
• Paso analyzes charts and takes notes on the stocks he’s reviewing
• He will draw out support/resistance lines on a chart BEFORE entering a trade.
• Paso will limit his watch list to 2-3 stocks (1 top, 2 secondary)
• He will analyze pre-market activity the next day to finalize his game plan

Main Analysis Tools

• Paso keeps things simple!
• His main indicators are price, VWAP, and Level 2
• Paso uses the support/resistance lines guide his trading.

Trade Management

• Paso is focused on the bigger picture in a trade
• Level 2 is one of his main analysis tools (alongside charts)
• He will block out small orders on Level 2 so he can focus on the “big money.”
• Paso will start with a smaller position (relatively speaking) and build up from there.
• He will leave room for up to 3 adds on a position (i.e. adding more shares)

The Importance of Routine and Discipline

• Paso follow the same routine every day. He is highly disciplined and treats trading like a real job.
• Paso is an early riser, starting his day at 4:30AM.
• He will go to the gym first thing in the morning (from 5-7AM)
• Paso meditates for 5-10 minutes in the morning
• Paso doesn’t accept calls before 12 (unless it’s an emergency) so he can stay fully focused on the markets.
• After the market closes, Paso takes some time to wind down. He enjoys spending time with family.
• Paso is in bed by 9-930PM so he can come to the market prepared the next day.

Paso’s Tips for New Traders

• Always have a plan before entering a trade.
• Don’t follow random alerts – it won’t work.
• Don’t jump in on random trades – you will get in trouble.
• Focus on a single setup that works well for you.
• Trade small and trade consistent. This is how you develop a skillset without blowing up your account.
• Trade every day and be involved. Participating in the market every day helps you understand trends, how the market is behaving, and more. 
• Becoming a consistently profitable trader takes time. Stick with it. It will come together.
• Surround yourself with other successful traders. The lessons you can learn from the experience of others are invaluable.