Stock Market Trading - Tela Holcomb

You're listening to Finances Demystified with Dominique Broadway, the podcast that provokes the conversation of money, demystifies all your finances, and shows you how to bring all of your dreams to reality so that you can live your very best life on your own terms. Hello everyone, and welcome back to another episode of Finances Demystified with your host, Dominique Broadway, me, and I am super, super, super, super— did I say super? Excited about our guest today because we're going to be talking about all things stocks, investing, trading, which as most of you probably know is one of my favorite topics as I was formerly a licensed stockbroker. So I'm really, really excited to talk about all things stocks and investing and trading today with our guest, Teela Holcomb. So Teela is a mom, wife, 6-figure stock and options trader. Yes, a 9-to-5 survivor, risk taker, and freedom catcher. By consistently applying her system of trading and investing, Teela more than doubled her retirement account in 8 months, y'all, 8 months, and she achieved financial freedom in 3 years. Teela now uses her knowledge and experience to teach burnout employees what it's like Not to feel forced to clock into an employer's dream. Thank you so much for joining us today, Teela. How are you?

I'm great. Thank you for having me.

Good, good. So I'm so excited. And I think— I don't know when I originally— did we originally meet at FinCon? I think.

Yes.

Okay. Okay. So we originally met at FinCon a few years ago, and now we're just like, you know, in this finance friend circle. But it's always interesting to meet someone and then to kind of see how they got into this So tell me, like, I know you were working a 9 to 5. What position were you in when you were working a 9 to 5?

I was a government contractor.

Okay. And what made you get into investing?

Um, I was, I was looking for something other than a 9 to 5. Like, at first I thought it was going to be a business. So I had started a business on the side thinking that was going to be my way to freedom and making my own schedule. And, um, coworker, this guy was talking about the stock market and how he was going to retire and all this stuff. And so that seems interesting. That's another way to kind of make some money. So I started dipping my toe in and started, you know, trying to learn some stuff then. But it wasn't my focus as to being my escape plan, you know, at first.

Okay. So it wasn't your escape plan, but it ended up being turning into your escape plan. But tell me, when you, when you started, what was the first step that you took? Because I know a lot of people that that I meet, they're like, I'm scared to invest, you know, I can't afford to lose my money. You know, there's all these, these kind of misconceptions that come along with trading and investing. How did you overcome that? And what was your first step to getting started?

Well, I guess I wasn't really— I don't remember being afraid to try to learn it. I just knew that— I mean, I always felt like Shoot, if they can do it, I can do it too. And let me just figure out a way to do it. Um, but it, it was a little, um, I did have to find the resources because no one around me other than the coworker, I mean, growing up, no one talked about it. No one knew anything about investing, um, other than, you know, the employee-sponsored 401k. Like, I wasn't really exposed to it either. So, um, the first thing was like finding the right resources online. So I Googled stuff. YouTube was, I know it's funny to hear, but like YouTube is your friend. Yeah, I went to different seminars, but for me, I think the biggest tool was, uh, what a lot of people don't talk about is a practice account. And they have virtual accounts out there that it's kind of like Monopoly money, and you can get in there and kind of learn what everything is like, what it looks like when you're making money, what it looks like when you're losing money, and really get the feel of it before you put your real money out there.

I love it. I love it. And is there a practice account that you recommend? I remember, I think when I first started, I think my practice account that I was using was with MarketWatch. I don't even know if it's still around. Well, MarketWatch.com is still around. I don't know if they still have practice accounts, but I feel like that was one of the ones I had used. What— what do you have, one that you recommend?

Yeah, I really love Thinkorswim by TD Ameritrade.

Okay.

And then Investopedia has one as well on their website.

Okay, cool, cool. So Thinkorswim and Investopedia, great place to start. So how long did you use the play money before you started putting in your real money?

I used the practice account for 8 months before I put in real money. And while I was practicing, I set a budget, so I allocated within my budget money for my real account, so then when I was ready, I would have the money. I didn't have to, you I wouldn't be like, where's the money going to come from now? So I just went ahead and allocated in my budget while I was practicing. So once I was confident, like, the money was there. Okay.

So, so you're practicing for 8 months and while you're practicing during this time, like, what are you learning? How are you going about actually practicing? Are you just like hoping and praying and putting practice money into certain things? Did you create a strategy? What did that look like?

At first, no.

Okay.

It was terrible. Um, I was just buying stuff that I knew and although it didn't work out that well, I highly recommend like that's the best place to start buying, you know, uh, stocks and products that you already know about. Um, because it makes it easier to learn, um, what you're, you know, learning about the stock market because you're interested in it. And for me it was purses. So I bought Coach stock. I love electronics. So I was buying Best Buy and It didn't work out very well because I didn't know what I was doing, but I learned the mechanics of this is where I buy, this is where I sell. I learned, you know, this is what it looks like when I'm losing money. And then it was like, okay, um, I think I need to figure out a strategy here. So that's when I started looking into, um, what, what are the different ways of, you know, trading and investing? And oh, there is a difference between trading and investing. Um, and you know, what's day trading and swing trading and figuring out like what, what, which strategy fit into the lifestyle that I wanted to create.

Okay, gotcha. I love it. So with, but with that strategy that I guess, I guess what did you like, how did you even know how to create this strategy? I know a lot of people, like I said, they're, they're the most common advice when you get started is to buy things you own or things that you're already invested in. But how did you kind of go beyond that? Were there any tools or resources that you use to say, okay, you know, buying things that I'm already investing in, it works a little bit, but I know I have to get a little bit more advanced. What was that step?

That step was, I read some books. Let me see what I read. The Complete Turtle Trader. And okay, yeah, what I loved about that book is it talked about, they took these experienced traders, took people off the street that didn't know anything about the stock market. And started teaching them a strategy. So this book brought two things to surface for me. It's like, okay, if they took people completely off the street that didn't know anything and they learned, I can do it. So that gave me the confidence, like I can do it. I don't need to know anything about it already. And then it pointed out they were teaching them a strategy, you know what I mean? It's like, here's your process. These are the rules and kind of things that you follow. And if you do this every single time, then you come out on top. So I was like, oh, okay, I need to figure out a strategy then. So, So I, I tried some of the things that they mentioned in the book, you know, with having a trading plan. So like, what is my goal with the stock? Am I holding for short term? Am I holding it for long term, like a long-term investment? Uh, am I, you know, make a dollar amount that you're planning on making with this stock. And then once you've made that, then you sell it. So I started trying those different things. Um, and just start playing around. I knew, quickly learned that buying and selling in the same day did not work for me. I did not like to sit and watch the market all day, and that kind of stress was just not, not working for me. So, um, yeah, I just started applying some of those things, those different ways of creating a strategy. I also found, like I said, YouTube videos where people were talking about their strategies and how those worked, and I just kind of compiled some of those together to really create a strategy that worked for me.

Gotcha. Okay. I love it. I love it. I like how you didn't necessarily go with what everyone was saying. You, like you said, you kind of created something that would fit with your lifestyle and what really, um, like you said, what works for you. So when you did first start, I'm going to take it out for a second. Like how much, if you don't mind sharing, how much did you actually start with? Did you kind of just go balls to the wall? Did they say like dump all of your money in? Was it a smaller amount? Um, and maybe even what was like the size of your first trade?

Uh, no, I did not dump it all in, but I started with, I started with $2,500. Like, that's what I started with.

Okay.

By the time I had, you know, reached the, uh, by the time I got comfortable, like that's how much was in that savings account that I put aside. And one thing I learned was not to use all of your money at one time. So I knew, okay, I'm not going to use all $2,500. Like, it— I learned to not use more than half of it at a time. So if something happens or I lose it all, I still have some more money set aside to, uh, continue trading with. So I didn't use more than about $1,200 at a time.

Okay, so you took kind of smaller— not saying $1,200 was small, but you took smaller amounts and kind of gradually started I guess kind of adding more as you realize that your strategy and system was working.

Yes.

Okay. So I know you talked about some of the resources and books that you looked at and used to kind of give yourself some of that basic knowledge. I know that you were able to— you doubled your retirement account in 8 months, which is crazy, and then you reached financial freedom in 3 years. What did that look like? What was that process where you ever like, wow, this is, this is too easy. Even though 3 years seems like, it seems like a short amount of time. It seems like a long amount of time. It's actually a very short amount of time being that it takes people, um, what most people, 50, 60 years to reach financial freedom, if that even happens. Um, so how did you do that?

So I just looked at, I saw that I didn't want to work the rest of my life. Right. Um, and so I sat down and looked at all my bills, uh, in I saw that we had a good chunk of money. Um, let me, I want to clarify that by, by that time I was married. So there is a dual income going on there. Um, and so we, we sat down and looked at all of our finances and just thought like, what do people really work till they're 60 years old for? They do that to pay off a house and to pay off cars. Right. So what can, if we can do that, sooner, if we can do that now, then that means we don't have to work anymore. We got this thing figured out. We, uh, we had savings because we're really good about saving money and we don't really do a lot. So we were able to, um, you know, have a big savings going. And so we just decided that we were going to take all of that and put it into paying off our house and our cars. And then every, um, every time I made money in the stock market, that would go to towards paying those off as well. So it was like I assigned each trade a job and it's like, when I make the $200 from this trade, it's going to the car. And then once the car was paid off, once I make, you know, X amount on this trade, it's going to the house. And so we just, uh, just kept chipping away at it like that. And yeah.

Wow. That's, that's so awesome. So did your, is your husband still working now? Or are you guys both full-time focusing on this and your entrepreneurship?

He works, um, he works, I guess, a traditional job. He's a consultant for like 2-3 months out of the year. Oh, that's— and then, yeah, our focus, our main focus all year long is trading and teaching our students.

Okay, awesome. So now you've been able to take that one revenue stream of trading and turn it into a whole other revenue stream with being able to teach other people how to do the same thing, which is amazing. Um, was that transition— not transition, but was kind of adding that extra piece onto your business hard? Um, and obviously also too, like, there's so many like scammy people out here, right? Trying like, oh, I'm gonna teach you how to trade and day trade and also like that. Like, do you get a lot of pushback there as well since you are trying to teach people, um, these skills and techniques?

Yeah, so honestly, I wasn't even focused on, uh, teaching it. I didn't even think— I was just like, oh, I'm just gonna trade the stock market. And then I started getting people, um, the, the folks that we worked with were like, well, what are you doing that we're not doing? And so they're like, well, teach us how to do it. And I was like, wait a minute, people will pay me to teach them how to do this? Like, you guys should be thinking about that as well because It's about— I was a little nervous about it. Like, well, do I charge people to learn how to do this? And it's like, well, we, we are focused on multiple streams of income and that's how you get to, you know, that millionaire status, that passing down legacies, you know, financial legacies and stuff. So we have to create those multiple streams. Um, because that's what, you know, going back to the 9 to 5, that really is what ties you to a 9 to 5 and being feeling like you're, you're stuck in that rut is because that is your only stream and you have, you know, debt to pay. So it's like, if we go and create this, this other stream and say, I can't trade myself anymore, or something happens, we still have this, this course out there that is bringing in for us. Yeah. That wasn't something that I originally had planned, but it's just the progress that I was making, uh, really kind of brought that, you know, into light on its own. So that's how that came about. But, um, the— what was the other question?

I'm sorry. I was saying, do you get a lot of pushback?

Um, oh yes, pushback. Uh, yeah, I feel like I don't, I don't get a lot of pushback, but I do see pushback because— and I completely understand it. I don't take it— take offense to it because, um, you know, in the The finance industry and the stock market in general, like so many people have been taken advantage of and, uh, it has left many of us very cautious about where we put our money and who we give our money to. So that's why it's important for me to, you know, let people know that I don't invest your money for you. I want to teach you how to do it for yourself and what to look for so that you feel empowered, not Um, you know, not to give your money to someone and not know what's going on. You know, even if you do want to give your, your money to someone to invest it for you, you still should know what's going on so that you aren't taken advantage of. Um, but I am hoping that I'm changing that whole mindset around the stock market and investing by, um, teaching it in a, in a fun way and in plain English, everyday examples. So that people can see, like, it's not as, it's not as dangerous as people think it is. If you take the time to learn about it, like anything that you like, think about when you first learned how to drive a car, like that wasn't very safe to begin with until you learned what you were doing, right? Until you got your driver's license and all that, like then it was safe. And so the trading and investing is the same way. Like take the time to really learn it. And I tell people all the time, like, um, Don't invest your money with me yet. Don't sign up for my program yet. Take the time to go through my free content and see what I'm about. See if I teach in a style that really clicks for you, because I know I'm not for everyone. So I'd rather you do that and be comfortable with working with me than, than spending the money and still being not, not really sure, not being satisfied with your investment.

So That's good. That's really good. So with, you know, everything you have going on now, I know you did something really cool for your mom recently. What was that?

So I really wanted to get my mom something for Mother's Day that like, I wanted to blow her socks off, honestly. I really wanted it to be something she wouldn't forget. And, you know, flowers are, you know, are not her thing. Jewelry isn't her thing. That's just something she's always got. And I was like, what is something I can get her that would just be the best thing ever? And so I just, I took the money to pay off her house. So now she has a paid off home and she doesn't have to work if she doesn't want to. She just, you know, has the freedom now. It's like, you know, it doesn't stop with me. Like I was able to give myself the freedom. Now I have to give it to my mom because I wouldn't be where I am if it weren't for her.

So yeah, I love it. That's so awesome. I love how, you know, something as simple as, as you making the decision that you wanted to change your life is now allowing you to change the life of not just your immediate family, but also people that are coming and taking advantage of, you know, your education, the courses and things you're offering. So that's, that's, that's amazing. Hats off to you for that. So, um, I guess I had another question. What is one of the biggest things that you learned, um, perhaps about yourself, or about the stock market once you first started, or once you started trading and started kind of getting into that process?

Um, something I learned about myself or the stock market, or both. I will say that I learned that it It's something that any of us can do. Even if we, no matter where we came from, the stock market doesn't care what you came from, what your circumstance is or was. Uh, it's open to anyone that's willing to, to learn it, you know? And so I came from, you know, Alabama, the, you know, the country and wasn't exposed to this. And it's not like there was an entrance exam to the stock market. It wasn't like, You know, I had to meet certain requirements. I just had to be willing and driven. And I learned, um, that I wanted to help more people. And so, um, I want to make a big impact and I have to be okay with making more money, uh, making this amount, these amounts of money, because some people think it's it's evil to make a lot of money or to have a lot of money. And so I learned that for me to help people in the way that I want to, I have to be okay with making these amounts of money and using it as a tool rather than, you know, something that's, that's evil, you know what I mean? And, um, and so I, with that, I was like, okay, it's okay for me to, to, uh, create a business around this teaching people because that helps me. Help people. And then it allows me to take some of that income and put it into donations and helping people. Like we feed people for Thanksgiving. We give them Thanksgiving dinners. We buy Christmas trees and things like that for families who can't, you know, give their kids toys and stuff. Like we bring Christmas to them. We, uh, sit up at my house and we make sandwiches for the homeless. Like I, I, there's, if I still had a 9 to 5 and was stressed about that and wasn't able to make this kind of money, I wouldn't be able to make that kind of impact. So I learned that, um, the stock market is an avenue to do, to create the money, to do such amazing things in the world. And we just have to, um, be willing to do that.

Wow. I love it. That, that's so, so awesome. Um, now tell me, I guess, what are you going to— another question before I go to what you're doing is, um, are you invested in anything else? Cause I know, For some people, if they're invested in the stock market, they kind of focus there. Are you investing at all, uh, excuse me, in, um, foreign exchange? Are you investing in any cryptocurrencies, real estate? And what are your philosophy on those other investing, um, um, outlets?

I am working on investing in real estate right now. Like that's my next move is buying some properties or, you know, rental properties and things like that. Um, I am not completely sold on cryptocurrency. I feel like Crypto is more for those active day traders. Like, if you've got the disposable income, like, that might be a place to, you know, but it's not for me. I don't think— I think the technology behind cryptocurrency is important and really going to have some impact, uh, but cryptocurrency itself, I'm not, um, I'm not convinced to put my money into that. But, uh, real estate is definitely a next move for me.

Okay, awesome, awesome. So outside of real estate, what else is next for you? Like, what do you have coming up? What are you working on now that you have all this, this financial freedom? Sure, you got time freedom so you can do what you want when you want. So what are you doing with all this kind of just extra time and money on your hands?

The next thing I want to do is I want to, I want to do some traveling. And with that, I want to get out and like really meet the community, meet people that are following me and learning from me. So I'm going to be hosting, um, like my course live, actually teaching it live. Um, and just getting around, doing some meet and greets. I just did one in Orlando, um, in July, I believe, June, July. And so that was, that was amazing getting there and hearing everybody's stories and what they're working towards. So I want to do more with more of that. I'm such a personable person. Like I love like, talking to people and getting to know their why and where they are from and things like that. So that really drives me and I want to do more of that, getting out into the communities.

Okay, awesome, awesome. Well, please be sure to let us know when this in-person meetup situation is happening or event. I know I definitely would love to, love to be in attendance. Final question, what is a kind of quote or mantra that you live by?

Ooh, a quote or mantra that I live by?

Yeah.

Oh man, I gotta think about this one. Let me see.

A quote or mantra or mantra, something that gets you going, revives you, or just kind of maybe even defines how you live your life. Too hard? You already dropped a couple good quotes throughout the show already. I was wondering if there's just that one thing that's like, hmm.

I think the one thing, and I guess it has resonated in this whole conversation that we've been sitting here having, but I feel like when you're outward focused, everything just falls into place.

I like that.

Be, and it will come.

I love it. And what was the last thing you said? It may have broke. What was the last thing you said?

I said, uh, be outward focused and it will come.

Be outward focused and it will come. I love that. I love that. Okay, Sheila. So if everyone wants to find you, where, where are the best places that they can find you? Get this free, Email course or free course that you mentioned. I think everyone should at least start there with, with the free course. How can we find you and get all this good financial knowledge so we too can be financially free?

You can find me— my favorite place to hang out is on my website, tilaholcomb.com. Um, and I love hanging out on Instagram and Facebook. Definitely reach out. Uh, I'm at tilaholcomb on both of those platforms and reach out to me. Let me know where you're at. Have you thought about investing before? Definitely sign up for my free course. It's, it's on that, that main page, selaholcomb.com, and start exploring that. I think even no matter where you are in your finances, like trading, investing, it's definitely something to consider. It's for building wealth and legacies. And yeah, so selaholcomb.com.

Awesome, I love it. So we're gonna post the links to all of her websites, to the the Teela Holcomb, in addition to the— what's it called— the tradeyour9to5.com, also the link to the Exchange, which is her free— excuse me— online course or email course. So we'll post all that in the show notes. And obviously, please make sure you're going and following Teela. As always, it was great chatting with you. Thank you so much for sharing with us about your journey and how you were able to reach this next level of financial freedom. I think it's so great to get all these different perspectives that we've been getting lately from people who are, you know, working a traditional 9 to 5 and have been able to reach certain financial heights, or people that have, like yourself, traded in your 9 to 5 and have done it in a maybe non-traditional way and been able to reach financial success early on in life. I absolutely love that. So thank you again for joining us, Teela, and hopefully we'll get to chat and see you very soon.

Thank you for having me.

Awesome. Awesome. All right, guys, thanks so much for tuning into another episode of Finances Demystified. Make sure you pop into the show notes, um, and access all the different links that we're posting, and we will see you all very soon. Bye-bye.