Trader Mindset

By Michael MartinBusiness Education Investing Courses

Trader Mindset episodes

June 24, 2020 Trading without knowing the odds is gambling
Subscribe to the show If you know someone who trades across asset classes and trading styles, they are likely gambling. A person becomes the casino when they stick to one asset class and one style of trading, and get that down cold. Making predictions, fading the Fed, and fighting the tape are all examples of gambling. Tell them to keep their opinions to themselves and focus on getting good at one thing, and grow from there. Click here to get your free copy of The Inner Voice of Trading audiobook.
13 min
June 23, 2020 What governs your thinking and trading plan?
Subscribe to the show Many traders learning the craft are governed by the need for success for public purposes. Some like to peacock. Some are just flat-out greedy. You'll make a more progress sooner if you're clear about what your motivations are. In the end, consistent behavior predicts where you end up in life, not throwing around size trying for hero trades. Click here to get your free copy of The Inner Voice of Trading audiobook.
10 min
June 22, 2020 Why you should focus on risk-adjusted returns, not just absolute returns
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A trader can gun for 100% RoR, but at what cost?

You need to conjugate what you're doing with risk (and time).

Your open trade equity shows allocators the risk that you're taking for the returns your endeavoring.

Most allocators are looking at daily vol and risk-adjusted returns.

If your ethos is to chase hero-sized returns, you have to know that those are often a result of good timing.

And if you continually trade too big, it will catch up with you - it's just a matter of time.

Slow and steady wins the race.

Know what you're trading for.

Click here to get your free copy of The Inner Voice of Trading audiobook.
8 min
June 20, 2020 How you can take advantage of seasonality and cyclicality of commodities
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Commodities are cyclical whereas equities are secular.

You can take advantage of that cyclicality by trading seasonally or by trading commodity spreads.

When you combine that with good risk management and maybe some trend following tactics, guess what happens?

Click here to get your free copy of The Inner Voice of Trading audiobook.
9 min
June 18, 2020 Offset your losing trades despite your can't-go-wrong theory
Subscribe to the show Alan "Ace" Greenberg had a great rule that he mandated on the Bear Stearns trading floor: "If the name is down coming into Friday's close, it trades." He didn't wait for stops to be hit. If the prop trader was long and there was an unrealized loss, they sold it before the close on Friday. This simple, but brilliant rule is one that you might want to employ. By selling your losers and going flat, you have a clear head that night and the rest of the weekend. Life is good. Click here to get your free copy of The Inner Voice of Trading audiobook.
9 min
June 17, 2020 Hope for the best, plan for the worst
Subscribe to the show Things don't always go as planned. Give yourself some room to expected the unexpected. This is the best way to hedge against your blind spots for which you have many. Click here to get your free copy of The Inner Voice of Trading audiobook.
9 min
June 16, 2020 Which is more important - entries, exits, or position size?
Subscribe to the show Your sole purpose in life is to play superior defense. Where do you think you can express that ethos the best? Click here to get your free copy of The Inner Voice of Trading audiobook.
9 min
June 15, 2020 It's all your fault
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Nothing happens randomly.
You decide that you want to trade voluntarily.
Whatever happens after that is your responsibility regardless of the outcome.
The best traders I have known over the years are the ones who live in a paradigm of personal responsibility.
Let go of judgment of yourself and others and focus on risk management.
That's what traders are at the end of the day - risk managers.
If you don't manage risk, the risk manages you - and it's your fault.
Click here to get your free copy of The Inner Voice of Trading audiobook.

12 min
June 15, 2020 It's Your Fault
Subscribe to the show Nothing happens randomly. You decide that you want to trade voluntarily. Whatever happens after that is your responsibility regardless of the outcome. The best traders I have known over the years are the ones who live in a paradigm of personal responsibility. Let go of judgment of yourself and others and focus on risk management. That's what traders are at the end of the day - risk managers. If you don't manage risk, the risk manages you - and it's your fault. Click here to get your free copy of The Inner Voice of Trading audiobook.
12 min
June 12, 2020 How traders use other people's money to make money for themselves
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I have two words for you: two and twenty.
The first refers to the 2% Management Fee and the second refers to the 20% Incentive Fee.
On an asset base of $1 MM, that's $20,000 in management fees that you'll receive over the course of the year in $5,000 quarterly payments.
The profit allocation or Incentive Fee is what you're working for though...
That's your share of the net trading gains above the hight water mark.
If you earned 15% in net trading gains, you'd be entitled to 20% of that.
For example, if you garnered $150,000 that would mean $30,000 to you in Incentive Fees...in addition to the Management Fees.
Then you continue to grow your money alongside the client funds at the same rate and you can see how your wealth expands geometrically.
Always play superior defense though: whatever drawdown you incur, you have to earn that back before you begin to participate in the profits.
You only get paid on absolute returns :).
Key takeaway: use other people's money.
Click here to get your free copy of The Inner Voice of Trading audiobook.

10 min