Why do people feel the need to bring others down?? Is this our basic human psychology? In this episode of 2Traders Podcast, Darren and Walter dig into a compelling question for traders and non-traders alike: why do hardened traders feel the need to intimidate other traders — especially newbies? The two traders also tackle the...

Why do people feel the need to bring others down?? Is this our basic human psychology?

In this episode of 2Traders Podcast, Darren and Walter dig into a compelling question for traders and non-traders alike: why do hardened traders feel the need to intimidate other traders — especially newbies?

The two traders also tackle the different factors influencing your trading mindset such as ego, “trading stereotypes”, information overload, and online trading communities.

Also, you might find here an interesting idea on how Halloween costumes can help your trading psychology.

Download (Duration: 27:53 /31.9 MB)

In this episode:

01:03 – downhill approach

03:20 – crazy system

05:27 – bloody-minded confidence

06:57 – trader specification

08:26 – Halloween costumes

10:34 – a strong ego

12:42 – identity crisis

15:32 – pretty, wacky and wild ideas

18:03 – a very solitary thing

19:44 – authority figure

23:41 – ego competition

25:21 – internet pros

27:13 – consider your words

Tweetables:

Fact: trading is a solitary life. [Click To Tweet].

Who do you feel comfortable with? [Click To Tweet].

You need to have that single-minded trading confidence. [Click To Tweet].

Download The Full Episode 63 Transcript Here

Walter: I think that it’s a mistake to look at someone else and say “Well, it works for trader Ed so I’m going to do what he does”. I just think that’s a big mistake. I think you can draw some confidence by trying to follow what someone else does but, in the end, it is not going to last…

Announcer: Two Traders, Darren and Walter, pull back the curtain on profitable trading systems, consistent money management, and profitable psychological triggers. Welcome to the Two Traders Podcast.

Walter: Hey, Darren. Welcome to the Two Traders Podcast. How are you?

Darren: Very good. Thanks, Walter.

Walter: We are going to talk about this idea and a lot of people, probably listeners, don’t think that this is something that they necessarily do. I just find it fascinating, this idea — and it’s often on forums where you will see… Typically, what will happen, Darren, is someone will come on, they’ll show people what they’re doing, their trading system, their approach, how they’re making money, and then it’s all downhill from there.

You get a few people come in and go “Yeah, that is just great. I am going to try it out”. Eventually, some people will come in and just go “There’s no way this will work. Your reward/risk ratio is all off” or “You don’t have enough trade” or whatever, all these reasons why it won’t work.

To me, it is so obvious what is going on which is the people who are the naysayers, they just do not connect with the system. That’s it, that’s all it is. It has nothing to do with whether or not the original poster is “that trader is making money”. It has everything to do with the fact that the ot...

Humans are generally poor in perceiving actual risks — especially traders. So how important is it to assess risks correctly? Do you ever second-guess yourself? In this episode of 2Traders Podcast, Darren and Walter clear away the fog on the topic of risk assessment, discounted information, cognitive bias and the problems that come along with...

Humans are generally poor in perceiving actual risks — especially traders. So how important is it to assess risks correctly? Do you ever second-guess yourself?

In this episode of 2Traders Podcast, Darren and Walter clear away the fog on the topic of risk assessment, discounted information, cognitive bias and the problems that come along with it, position sizing, trading gaps, and the befuddling psychological phenomena called the “availability heuristic.”

You’ll also learn here how shark attacks can help you decide whether to join a trading bandwagon or not.

Download (Duration: 32:29 /37.1 MB)

In this episode:

01:01 – shark attack

03:19 – the bottom line

05:10 – ultimate line in the sand

06:12 – underestimating worst loss

08:20 – if I’m a new trader

09:43 – all about gaps

11:35 – why gaps are crazy

13:05 – a particularly unusual thing

14:15 – availability heuristics

17:43 -deciding based on risk

19:51 – disadvantage of risking the same

21:54 – a perfect storm

23:19 – probability theory

26:06 – overestimating the risk

28:02 – perceived risk versus actual risk

29:21 – flamethrowers

31:14 – distinct difference

32:07 – moving the pieces

Tweetables:

Decide what is the most you want to lose. [Click To Tweet].

You can paint anything with one brush. [Click To Tweet].

Do you eve second-guess yourself? [Click To Tweet].

Download The Full Episode 62 Transcript Here

Darren: Whenever you have perceived risk, you should then be able to compare that to the actual risk before you make your decisions because, generally, we are pretty poor in perceiving the actual risk…  

Announcer: Two Traders, Darren and Walter, pull back the curtain on profitable trading systems, consistent money management, and profitable psychological triggers. Welcome to the Two Traders Podcast.

Walter: Welcome to the Two Traders Podcast. It’s Walter here. Hello, Darren. How are you?

Darren: I am very good, Walter. Just relaxing.

Walter: Yes, you are. I am jealous. It’s cold where I am at. I know it’s really nice and tropical where you are. So, let’s talk about this, Darren. We we’re thinking about risk just before we turn on the recording here and talking about risk can how sometimes, we don’t really rationally assess the situation.

I was talking about the idea that a lot of surfers, a lot of surfing friends I have, they’ll start talking about shark attacks particularly when there are a few sharks sighted or shark attacks in a certain area. They’ll say “Oh, that area is sharky. I don’t want to surf there.” Or, “It’s quite sharky right now. I don’t think I will.”

These thoughts pop into your head which is not really that rational because, looking at the true odds, if you’re waiting to cross the street and go to the beach and going to jump in the water,

Do you know what you really want? Do you have an intense desire to win? Why do many traders want to feel like a winner? In this episode of 2Traders, Darren and Walter dig into the issues that traders bump into when it comes to interacting with the market, including issues with trade execution, loss...

Do you know what you really want? Do you have an intense desire to win? Why do many traders want to feel like a winner?

In this episode of 2Traders, Darren and Walter dig into the issues that traders bump into when it comes to interacting with the market, including issues with trade execution, loss aversion, and information overload. The two traders also tackle an important psychological phenomena called the “recency effect” and how this can affect the decisions that you make.

Also, you’ll know in this podcast how building a stadium for a champion football team may actually help you realign your trading beliefs and goals.

Download (Duration: 19:29 /22.2 MB)

In this episode:

01:12 – uncertain endeavors

02:46 – a new stadium

04:21 – information overload

05:26 – human error

07:48 – pick and choose

09:01 – redefining yourself

11:47 – embracing the unknown

13:29 – a dramatic difference

15:01 – “why?”

18:22 – journaling lessons

Tweetables:

You have to find your groove and just do it. [Click To Tweet].

Celebrate the wins, feel bad about the losses and let it go. [Click To Tweet].

Why must you feel like a winner? [Click To Tweet].

Download The Full Episode 61 Transcript Here

Walter: You know that moment when you get into a trade, or you’ve decided you are going to take a trade, and you have no idea what is going to happen? You have no feedback from the market, you are in the trade and you are just about to execute the trade. I think embracing that feeling of the unknown is really a good idea…

Announcer: Two Traders, Darren and Walter, pull back the curtain on profitable trading systems, consistent money management, and profitable psychological triggers. Welcome to the Two Traders Podcast.

Walter: Welcome back to Two Traders. It’s Walter here. Hello, Darren.

Darren: Good evening, Walter.

Walter: We are going to talk about traders and the issues that some traders have with execution. I have to say that I think all of us have these issues but where are these issues coming from, Darren? Where do this execution problems — if you can call them that — where do they come from?

Darren: I suppose ego’s probably in there, isn’t it? Fear is definitely going to be in there and greed is going to be in there. In trading, we suffer from those emotions more than in a lot of uncertain endeavors. But I think, really, we want to be right, don’t we?

Is that loss aversion before we’ve even enter the trade? I think we often get ourselves set up with the wrong mindset. We may well know that we can have losing trades but we may have a lot of experience of trading and having losing trades but it’s still very hard to deal with losses.

I think loss aversion is one of the biggest problem for traders and the best way to deal with it is to accept that it exist. Perhaps journaling about your losses, seeing them for what they are and seeing that they are not really s...

When you make important decisions in life — do you decide by ticking off some self-made checklist? Or, do you go by your instinct? In this episode of 2Traders Podcast, Darren and Walter tap into the subject of trading entries and exits, backtesting, market patterns, and how your trading results are the result of your...

When you make important decisions in life — do you decide by ticking off some self-made checklist? Or, do you go by your instinct?

In this episode of 2Traders Podcast, Darren and Walter tap into the subject of trading entries and exits, backtesting, market patterns, and how your trading results are the result of your psychology and mindset. According to Walter, a win rate is like a “median high tide line” that you should always consider when building a house near the shoreline. Darren believes that anticipating the market is more of an intuitive skill that you develop over time and experiences.

You will also see the connection between fiction reading and trading performance, and why women have a greater advantage over men in the trading world.

Download (Duration: 35:29 /40.6 MB)

In this episode:

00:51 – unique things

02:18 – odds and probabilities

03:11 – complexity and randomness

05:46 – newbie trader

07:56 – a false sense of confidence

09:06 – judgement calls

10:34 – pivot points

13:25 – human error

14:39 – simple options

16:02 – median high tide line

18:41 – scientific reading

20:04 – the “dead cat bounce”

22:18 – psychopathic personality

25:05 – algorithm

28:26 – all about the mindset

30:12 – what affects win rate?

33:43 – general rules

35:15 – system execution

Tweetables:

Accept uncertainties rather than pretend to knowing the results. [Click To Tweet].

How do you avoid making the same mistakes? [Click To Tweet].

Past results are not indicative of future results. [Click To Tweet].

Download The Full Episode 60 Transcript Here

Walter: Is it fair to say… Would you say that you believe that the markets are all continually changing?

Darren: Yes, they look like they are not changing. If you have a random up and down movement then it is going to look like a chart…

Announcer: Two Traders, Darren and Walter, pull back the curtain on profitable trading systems, consistent money management, and profitable psychological triggers. Welcome to the Two Traders Podcast.

Walter: Welcome to the Two Traders Podcast. Walter here and Darren is on the line. Hello there, Darren.

Darren: Evening, Walter.

Walter: We are going to talk about the entries and the exits. This is something that has been niggling with me and I am hoping that this discussion will open it up because I know one of the unique things about the way that you trade and the way you view your markets is that you see how it is likely that when you take a trade, whether it is a buy or a sell, you have essentially a fifty-fifty chance of it working out.

Now, obviously that is going to differ depending on the exit strategy you use. My question is if we have a fifty-fifty likelihood of our trade working out for pr...

If you could give an advice to your “younger self”, what would it be?

In part 3 of “A Trader’s Journey”, fund trader reveals insider tips on how his fund survived (indeed, thrived during) the UK Brexit event, while other traders and investors crumbled under the uncertainty of the Brexit vote.

James also details his “slow method of trading” and why Darren may find it frustrating if he decided to use it.

You will also find out why James is a “slow trader”, why your penmanship may hinder your abilities to trade large sums of money, and when you should take off on a holiday from trading (to achieve optimal results).

Download (Duration: 24:03 /27.5 MB)

In this episode:

01:00 – self-drive

02:50 – personality profile

04:04 – active trading

07:00 – an acceptable loss

11:06 – what people would look at

14:10 – wimpy and nasty

16:08 – slow moment method

18:47 – psychologically depriving

20:02 – a good advice

22:08 – not all cookies and cream

Tweetables:

You cannot make a trader out of nothing. [Click To Tweet].

Do not take the trade if you are not comfortable with it. [Click To Tweet].

Psychology is eighty percent of trading. [Click To Tweet].

Download The Full Episode 59 Transcript Here

Walter: …The funds that are based on fundamentals, they did not even attempt to time their entries either. That does not really — you know what I mean? — that does not even come on their radar…

Announcer: Two Traders, Darren and Walter, pull back the curtain on profitable trading systems, consistent money management, and profitable psychological triggers. Welcome to the Two Traders Podcast.

Walter: Alright. Here we are Part Three of Three of the interview with James and now what I want you to do is just make sure that you have listened to the other two parts: Part One and Part Two. If you haven’t, please go back and listen to those or this one will not make any sense at all.

In this episode, you will see the advice that James would — now, today — give to his younger self, just somewhat surprising. You’ll also see why your handwriting could determine your financial future –I know this sounds weird but it is true.

You will also see the perfect time for traders to take a break from their trading, how James found out about this information, and how he uses this information with his trading team at his fund. You’ll see what potential investors look at when deciding whether or not to give you money — James does a really good job of touching on this. You’ll see how James’s fund made money during the famed Brexit event even though a lot of other funds completely blasted during this historical vote in the United Kingdom.

You will see why they call James’s method a “slow method of trading”. How this came about and, also,

In the second part of “A Trader’s Journey”, Darren, James, and Walter touch on the common problems with investor clients, how and why forex funds have a nasty reputation in the industry, and the major mistake that even pro traders hobble into.

James also shares some insider info about the private fund world and how he managed to get six successful traders in one room.

You’ll hear an interesting story about the trading priest, a fire that almost burned down a private zoo and the problems that come with owning your dream car (a Ferrari).

Download (Duration: 24:10 /27.6 MB)

In this episode:

01:06 – pulling the rag out

02:57 – what is driving you?

04:07 – self-sufficient

05:33 – why you should not buy a Ferrari

06:42 – buy and hold investment

08:10 – be a cautious buyer

11:48 – help and expertise

12:12 -beating the pavement

14:58 – little nest egg

16:49 – making the final decision

19:14 – a full-time job

22:00 – high turnover rate

Tweetables:

Decide what you want out of trading. [Click To Tweet].

You can be self-sufficient and a self-made individual. [Click To Tweet].

Put money away for the future and grow your fund. [Click To Tweet].

Download The Full Episode 58 Transcript Here

Darren: …The important thing is to actually be able to decide what you want out of trading and make the right decision then try to achieve that…  

Announcer: Two Traders, Darren and Walter, pull back the curtain on profitable trading systems, consistent money management, and profitable psychological triggers. Welcome to the Two Traders Podcast.

Walter: Welcome back and if you haven’t listened to Part One of the interview with James, I would definitely do that. In this part, this is Part Two, you are going to hear about the Priest who trade for james’s fund, the problem with all clients when you are trading someone else’s money. A funny story about a Ferrari, the wildfire that almost burned down the private zoo and how forex funds got a bad name and why this is.

Then, finally you will get the answer to the question what is the big trap that most successful forex traders fall into? All these and more in Part Two.

…Exactly, you bring up a really good point here.  Like, one of the things that people point to when they are trading and their trading is going well is “All I have to do is manage some money, I will get my hands on some investors, and then that is really going to take off from me.”

One of the forgotten things here is that those investors, if you are risking too much — which obviously means you are going to eventually hit some drawdowns, some unlucky patch along the way — they are more likely to pull out. If you are risking too much, they are the ones that are going to pull the rag out from underneath you and you have got to remember that.