Trader Mindset

Forget returns focus on behaving consistently


Listen Later

Gains look like gains only to the extent that you keep your losses small. 

Most traders lose and quit the business in frustration because they are underfunded, focused on short-term time frames, and trade to large for their capital space.

You can gear your target RoR for a high number, like 100%, but you'll also have to endure a drawdown of 40-60%. 

I'd focus on consistency in your approach and your discipline. That is what you bring to the table that amateurs cannot. If the average person could act consistently around managing risk, there'd be no need for portfolio managers. 

Risk-adjusted returns are the key to getting an allocation. Sure you can get big returns, but at what risk to the operation? Anyone can roll the dice and hit it big once or twice, but that's not how to build a business. Those type of results appear from random luck, not a bankable process that can be repeated like a robust trading system that can be deployed across many markets. 

This podcast episode was inspired by a great email that I got about one particular trader's performance and a few of his discussions with "prop trading desk managers" (read: brokerage).

There aren't many prop trading firms out there. Most are brokerage masquerading as prop trading. True prop trading is a firm that will give you funds to manage WITHOUT your needing to deposit your own funds because you are talented. 

If you want to trade your own capital, wait 6-12 months and see if you've developed a sense of trust with the firm. Making a deposit to an account makes you a brokerage firm client, not a prop trader. 

...more
View all episodesView all episodes
Download on the App Store

Trader MindsetBy Michael Martin

  • 4.9
  • 4.9
  • 4.9
  • 4.9
  • 4.9

4.9

109 ratings


More shows like Trader Mindset

View all
We Study Billionaires - The Investor’s Podcast Network by The Investor's Podcast Network

We Study Billionaires - The Investor’s Podcast Network

3,364 Listeners

Chat With Traders by Ian Cox and Tessa Dao

Chat With Traders

1,992 Listeners

Top Traders Unplugged by Niels Kaastrup-Larsen

Top Traders Unplugged

590 Listeners

The Knowledge Project by Shane Parrish

The Knowledge Project

2,693 Listeners

Desire To Trade Podcast | Forex Trading & Interviews with Highly Successful Traders by Etienne Crete

Desire To Trade Podcast | Forex Trading & Interviews with Highly Successful Traders

103 Listeners

Founders by David Senra

Founders

2,170 Listeners

Swing Trading the Stock Market by Ryan Mallory

Swing Trading the Stock Market

805 Listeners

Trading Nut | Trader Interviews - Forex, Futures, Stocks (Robots & More) by Cam Hawkins

Trading Nut | Trader Interviews - Forex, Futures, Stocks (Robots & More)

222 Listeners

My First Million by Hubspot Media

My First Million

2,647 Listeners

B The Trader by Alex B

B The Trader

357 Listeners

Stock Market Options Trading by Eric O'Rourke

Stock Market Options Trading

298 Listeners

The Day Trading Show by Austin Silver

The Day Trading Show

58 Listeners

All-In with Chamath, Jason, Sacks & Friedberg by All-In Podcast, LLC

All-In with Chamath, Jason, Sacks & Friedberg

9,971 Listeners

Stock Trading for Beginners by Tyler Stokes

Stock Trading for Beginners

64 Listeners

Words of Rizdom - Trading Podcast by Riz Iqbal

Words of Rizdom - Trading Podcast

29 Listeners