‘One of the incredible things about America is the ability to try new things and start over if need be.’— Hiro Ababon —
In this interview of the Trading Justice Podcast, we welcome Hiro Ababon to the podcast. Hiro is a veteran of our community who started trading 3 years ago. He’s always been interested in investing, buying silver when he was 18 years old right after he joined the Navy. His family has deep roots in the military. His dad and mom met in the military in Japan. After coming to America, his stepdad spent 27 years in the Marine Corps. Hiro invested in jewelry companies, became a hard money lender and invested in rentals. At one point he had 48 rental units, a subway franchise, and other business interests. The 2008 crash forced him through bankruptcy. Being resilient, he never quit. He started his options trading business in 2016.
He said it best himself, describing his journey: ‘One of the incredible things about America is the ability to try new things and start over if need be.’ He’s spent time as an entrepreneur, an investor, a trader and in service of non-profit organizations. In August 2016, he attended a real estate investing seminar by Legacy Education which also offered stock market training. His original interest was to start his son Joshua in the business, but it’s evolved to where he’s doing it full time himself. The stock trading education is what he focused on and that’s what introduced him to Tackle Trading and put him on the current path he’s on. He is passionate about his family, his business interests and his ministry. This is an incredible person and an interview that you won’t want to miss.
Tim: OK. And welcome back guys It is trading Justice episode number three hundred and thirty-one and we’ve got a very special guest here a friend of ours a member of our community a veteran trader now been in this community now for about three years Hiro Ababon, Hiro how are you doing today
Hiro: outstanding and yourself?
Tim: fantastic actually I mean it’s summertime my kids are home they’re not in school we’ve been doing all kinds of family stuff the last couple of weeks but just enjoying my summer I know you’ve been traveling a lot this year and very much a family man as well you work from home is that right.
Hiro: Right yeah. I just trade full time at home.
Tim: That’s amazing has amazing we’re going to get into Hiro story we’re going to have a discussion with hero and you know this is my traders Take Five series we’re doing a feature interview here on the podcast but I’ve got five questions for you Hiro and we’ll let the conversation go wherever we wanted to go. You ready.
Tim: Why did you get into trading.
Hiro: Actually I was looking for something for my autistic son to do. And when we started three years ago he was really on fire about it. And so yeah that’s why I was doing it before but I’ve since switched my why and what it comes down to now is I want the rest of my life since I’m retired now to have a major impact and something that’s going to outlast me and so I’m building up this trading business in a non-profit where I’ll be able to generate funds through trading giving half of it away every quarter or so and it’ll just continually grow and over the next 10 20 years or some compounding wise the account should be pretty large and I should be able to really donate to a lot of things easily.
Tim: Is this your trading buddy right here. Your cat. He is he sits on my lap all day long. I like it. Man that’s a pure white cap beautiful cat.
Hiro: I did not want any more cats. This is a six toed cat. I told my wife no more animals. And then she says What if I find a six year old cat. Sure if you do something like that. And lo and behold she got a six toed cat.
Tim: You know that’s the way it works. I think in life heroes say no more animals and eventually they just keep coming. Right.
Hiro: If you’re a family in a household that welcomes them and eventually they do come and I’ve got two dogs I’ve got a big Great Dane and a boxer and they’re my trading buddies as well so I get that I go back to your house first. I think it’s amazing. And your goal to trade to build profit and Tim: then again some of that profit away. But even what you said about starting this because you wanted to inspire your son and have something for your son it must be a part of who you are to want to give to charity and to help others.
Hiro: That right there. I would say that my whole life I am a Christian and I want God to say well done. Faith God’s faithful servant. And so you know I’ve spent 26 years in the military I volunteered full time at a nonprofit for about five years. And now for the rest of my life Yeah I want it to count for eternity.
Tim: Mm hmm. That’s awesome. I mean it’s the right idea. No matter what you’re here you know the kind of goals are out there. Give some of the profits away that you make. I think it’s a great thing to remember you’ve got communities you’ve got charities you’ve got things that people that need it. If you are a successful person whether you make money and trading or not I think charitable organizations definitely need that kind of attention. Fantastic. But going back because I want to get dig into one of those things you said so you didn’t go to your first event thinking you were going to be the trader.
Tim: Interesting. Interesting. Tell me about that.
Hiro: Well when we first when it was actually a combination real estate trading deal and you know over the career that I’ve had I’ve also had like 48 rental units a Subway restaurant blah blah blah. And so I figured that my son and I would be able to just flip properties or something. But when we saw that the trading modules you know we both sort of fell in love with that and obviously the amount of work required for trading compared to flipping houses is is a lot less than. So yeah we went to the trading route and I love it.
Tim: So you went to a rich dad and then a legacy event is that correct.
Hiro: Actually right Rich Dad Poor Dad had a free half page presentation and then from there get the three day show and then from there. Did the whole package with legacy and then you mean that’s where you meant Matt.
Tim: I think originally and then you started down that process of education. How long did it take you to get good because you’re now three years in and you’re good at it now. How long did it take you to actually get good.
Hiro: That’s a hard question. I would say that I was comfortably trading maybe eight months a year and when I say comfortable it means that I pretty much had all the rules down. The mechanics of tossed down and just watching what my piano does on the monitor tab.
Tim: And so yeah I would say eight months a year eight months or a year to get competent to become proficient takes more time I mean here you are three years and I’m 14 years in here I can tell you this I learned more all the time have psychology mindset mechanics markets change you know opportunities abound. Focus on your core business there’s no doubt. And by the way little by little tip here I said it’s five questions but I have all these little runoff questions. So I look at it as a way it works. Number two what is your training at what makes you a profitable good trader.
Hiro: Following. Your guys is rules. My week weekly routine includes by the weekend reports that you guys put out and I just put all that on my watch list and throughout the course of the week follow it and you’ve already it pretty much done all the work so it’s great.
Tim: Yeah and I had to tell you I was sitting with a trader just here today and I was telling her she’s like I’m a Theta trader 10. You know I don’t do the Delta trading as much I don’t have you know the day by day I energy to kind of focus on long called long put it said well you can use the reports in whatever way you want me you’re the trader you can apply it to your system and I think I know the answer to this Hiro because I know you’re trading style a little bit when you take those reports. You actually do credit spreads on them when you choose to write.
Hiro: Right. Right. And that’s the way I’ve always used to do. Although now that I’ve got portfolio margin I’m wondering how that’s going to affect my trading whether or not I’m going to do more theta trades or less. I certainly like stock trading. I mean the profits come in pretty quickly and it’s pretty easy in terms of when to get in and when to get out whereas you’ve got a lot more things going on and options. But I like the cash flow.
Tim: Yeah. So and this is what happens a lot of times traders go through a process where they start building theta. They do credit spreads they get proficient and then they realize I’m missing out on some of that delta stuff and they want to get back into that and then they find a blend right the balance that fits them And did you complete that step system that just came out by the way
Hiro: going through it with my son right now. And so he’s on module three and we’re just going through it on a daily basis a little bit at a time.
Tim: Wonderful follow the rules. Here’s the last and trust the process follow the rules right. There are rules designed by mentors for a reason. What is your daily routine you know like what when you wake up when are you energetic when are you focused. When are you trading.
Hiro: Well we wake up and I’m usually at my computer about eight thirty or so and just looking over my trades before the 9:00 traders lounge and then I spend an hour with you guys. And you know usually you go through the whole morning routine type of thing where you check in the market’s checking all the indexes that we’re taught to check. And then from there just managing my portfolio for the next couple hours or so and then usually I’m done although if Sutton’s really going on and I’ll stick around longer. Yeah. So it’s two three four hours a day and then over the weekend another couple hours.
Tim: Yeah. And you’re pretty much are locked into that. You know how Europe going to approach a day in the market the websites you check when you’re going to be on the lounge when you’re going to be the halftime report you’re going to execute your portfolio. I find that to be so empowering. By the way not just for myself. You know even to this day this morning you know it’s July 2019. I started in August to 2005 here. So I’m almost 14 years on my anniversary. I had the same steps I went through. You know that I did last year and three years ago and five years ago checklist are very powerful so I love hearing that. What are your trading goals.
Hiro: I eventually want to create an account where it has a continuously increasing cash flows and increasing balances so that way every month I’ll be able to give away more and more and more.
Tim: I see increasing cash flow as positive equity equity curve increasing balances give away more and more and more. I will tell you though there’s a there’s an acronym I use when I think about goals called SMART goals you ever heard of it. I don’t think so. Specific measurable action oriented Realistic and Time bound. So that’s. One thing I would mentor you on just as somebody who’s done this a lot is make those goals very definable. You know like OK so I want to make more and more money every month like 2 percent a month or two and a half percent of last year’s equity curb was at one and a half or two. So you’re going to hit a marker that you can actually achieve right and then set time bound restrictions to those goals so that you’re measuring it like on the quarter or on the year and then have somebody who can hold you accountable that like a mentor or friend or a coach that can look at it with you and review your goals. I find that to be a much more successful approach to goal setting. You said a lot of goals for yourself.
Hiro: I used to and then after I retired I’ve already accomplished all my goals and then I was sort of like putting my hands up now what I do with the rest of my life I’ve already done everything. So yes that’s what I’m doing now. And.
Tim: Yeah it’s great. Speaking of your retirement you didn’t mentioned it earlier but you did spend 26 in the military 26 years and I’ve had a lot of students that were military. We had a conversation with Brandon Diaz a few months ago on the podcast where we discussed you know the the mindset and the work ethic and the discipline that some military men and women have that bring into their training. Do you think what your experiences were through your professional career. Did they impact the way you approach markets.
Hiro: I would say yes because you know what you make a decision and you have a plan to carry it out. And you just do that you don’t fret about it and just roll over worry or overthink something.
Tim: You know what you’re going to do and you just do it. Now out of all that every time I do a traders take five. This is my favorite question. It’s last for a reason and because it really kind of grabs you and makes you think about our audience and other traders out there. Imagine when you a new hero or your son when he was new or the people in your life if they were going to come and try to learn trading from you. And we’ve got an entire community of veterans just like yourself. But we’ve got a lot of beginners too. What advice would you give new traders.
Hiro: To make it a routine too. From everything that you know when you go to a class take notes maybe redo the notes and then in your daily routine go through the whole step system the whole well everything that you guys put out really and just make it like an hour day to to study a couple hours to manage your portfolios. You just come up with a routine and it has to be a routine that works for you because different people have different times that they’re either awake or working or whatever. So it has to fit.
Tim: I love it It’s got to fit you know. I think it’s perfect advice because it’s got to fit your life it’s got to fit your routine. It has to come back into your schedule your time and then that structure will allow you to build the discipline and the systems in the businesses where you do a little bonus round here real quick and these are gonna be rapid fire you know what that is. Yes. Give me a question you give me a yes or no. And I’m going to ask you what you know products and what strategies you use currently into your trading at this point. OK. Do you trade ETF.
Tim: not yet forex.
Tim: So you leave the leverage on the side for now you focus on stocks ETF sin options that’s amazing I love the stock strategies do you day trading
Hiro: when I can
Tim: a little bit swing trade.
Tim: Position trading.
Tim: So you do all the time frames. I think there’s a lesson there out there if you’re listening because you don’t have to just pick one time style of trading as well now with options long call.
Tim: long put up covered call.
Tim: bull put
Tim: Bear Call
Tim: iron condor
Tim: I’m loving it more most covered call.
Tim: every now and then. Volatility plays
Tim: I see. Very good. What are any other strategies you use in the options.
Hiro: I’ve played with some but I think that the ones that you just mentioned are my core. If I do something like a butterfly or or some you know level two options class I’ll probably just do one or two contracts just to see how it works out. Type of thing.
Tim: I love it. Hiro. Thank you for joining us this has been amazing and you know these interviews we have with our community and with our traders. I’ve done a bunch of them stuck them on our YouTube channel. Go and check them out. They’re called traders take five. This hour podcast episode number three hundred and thirty one from the trading Justice podcast and for me Hiro it’s and I get to meet our students and our traders but it’s a way for us to to relay your message out there to the beginners because I think when you’re new in a journey like this you don’t really have that tribe yet you don’t have that sense of community yet and hopefully the podcast and tackle trading can help you do that. And I know that you’re there you’ve done one thing that I tell people all the time put your butt in the seat and show up because you’re at the traders lounge all the time with Mark you’re at the halftime report you’re at the nightly shows you watch the weekend reports I commend you for that young man.
Hiro: Thank you. Thank you. And thank you for having me.
Tim: All right guys we are out. We’re gonna be right back with a live read from Coach Mark.
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