What does a guy who’s only had one girlfriend have to do with taking profits? Why do Darren and Walter test random entry trading systems? And what does the old lady on the airplane with the St. Christopher medal have to do with technical indicators and the illusion of control? Find out in this episode of the 2 traders podcast. You’ll also see how Darren uses a very simple discretionary system to outwit the trading algorithms. Walter explains how the risk of ruin is exponentially increased when traders make one simple (common) mistake.

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Download (Duration: 30:22  / 34.7 MB)

In this episode:

01:40 – holiday time

03:57 – random trading = lotsa money

05:02 – support and resistance

06:03 – Saint Christopher Medal

07:30 – Scott Barlow interview in the book Every-day Traders

10:15 –  the odds and the probabilities over time

10:52 – an indicator that doesn’t do anything

12:58 – a guy who’s never had a girlfriend

14:08 – a simple trendline break strategy

16:30 – targets…..

18:18 – a time stop

21:15 –  taking profits too early

24:30 – technical elements really don’t matter

26:55 – why the system doesn’t work

28:02 – a very simple human-determined strategy

Tweetables:

Taking Profits too early is a bad habit. [Click To Tweet].

As humans, we are not setup to trade for profits. [Click To Tweet].

Taking profits too early is like marrying your first (and only) girlfriend. [Click To Tweet].

Download The Full Episode 10 Transcript Here

Walter: When you start taking profits early, you are literally increasing the odds that you will fail as a trader and People just don’t get that…..

Announcer: 2 Traders, Darren and Walter pull back the curtain on profitable trading systems, consistent money management, and profitable psychological triggers.

Welcome to the 2 Traders Podcast.

Walter: Hey there. Walter here from the 2 Traders Podcast. Today Darren and I take a look at taking a break. What does holiday time do for your trading? We also look at why Darren uses technical training tools, even though he believes they provide no edge for his trading. We also examine the random walk trading method and the surprising results that this style of trading will probably yield. A critical look at the Saint Christopher Medal, and what that has to do with trading. We also look at my favorite trader interview, and it’s not in the Market Wizards trading book. Darren floats his theory about the opposite signal test that he uses before he ever examines a trading system in seriousness.