Traders of All Walks of Life Must Find What Works Best for Their Personalities

This is the transcribed version of the podcast linked above ^^^

MATT: [00:00:00] Hello I would like to talk to you about the One Minute Trader we are here to take the time strapped trader and turn them into a profitable money making machine with daily ideas that give you, the trader on the go, reason to trade with risk defined and profits taken when able. I’M Matt Davio and this is the One Minute Trader podcast.

MATT: [00:00:56] Hey welcome back to the one minute trader podcast. I am Matt Davio your host. And today I want to talk a little bit about something I’ve seen working with multitudes of traders I’ve definitely worked with over 150 200 traders over the last 11 years. One on One and from anywhere from true newbies all the way up to advanced hedge fund mutual fund CTA backed. Prop backed traders and what I’ve seen over and over again is a lot of times people some of the lessons that I’ve learned through teaching these people is that there’s a big difference between kind of the macro tourists the retail guy and you know the macro trader in itself. But the one thing I think that I’ve learned most or rather there are four things that I’ve learned most about working with different types of traders is you know I’ve had a unique seat in being able to do this. Not only do I find for the most part that you know some of my videos don’t capture everything about my experience with them but there is such a large gap between the success of teaching training techniques and the actual techniques employed by professional traders so that significant gap and I think why that is exists and how we can help to shrink that. And that’s really what I’m here to do. Here are some of the lessons that I’ve learned from coaching and helping additional traders both from the shorter term all the way up to the macro and the portfolio managers. So this probably differs from a lot of what you’ve seen. But I want to talk about these five areas. So here we go.First is success is definitely individualized. I can tell you exactly how I trade the ways I trade. You can even try to formalize it and plug it into a spreadsheet and automate it. You still won’t get the same returns that I do. Yes. You still won’t because I am a proprietary trader. I work on things the way I work on them. I take profits when I can. I define my risk for sure. And sometimes that risk is ill defined and I have to take it off even before I establish the full risk. So why do think there is a common process to developing expertise the notion that you can learn exactly because I told you exactly what I do is really faulting in its premise. So the notion that one successful trader can tell you exactly what he does and you will behave the same way is also false. So understand that each personality has its own features and the way that I trade will be different from the way that the individual who learns the same way will trade. And actually I encourage that I hope that by working with us you’re going to you’re going to be even a better performer and an even better trader because you’re going to find the faults that I have in my trading and you’ll exploit them and do even better. So it’s more important I think for traders and portfolio managers to understand and operationalize what works for them versus what you know what could work for them. So don’t try to fit some preconceived mental models into your model of success.

[00:04:25] In other words what works for me won’t work for you. But a lot of the things that can be transferred can be taught and can be gained from. So number two the game is definitely different. Trading has become it’s always evolving as always it’s a dynamic living beast and it is a beast at times. And this should really go without saying but I have to say it all the time. Markets are always changing. So what worked yesterday won’t work today what worked two days ago won’t work in a month. So it’s rarely acknowledged that this is true. Even the best guys they have to always adapt or they’re not going to succeed. So I think what it comes down to is you’ve got to find again. Success comes from managing not only the ideas and the positions as a risk manager and I’d prefer we be called Risk managers over traders because then we’re really getting into the crux of what most failed to do which is manage risk. So too many ideas are relational.

[00:05:27] Relative strength strength based for example or and they’re not directional and they cut across markets and asset classes and you have to kind of look at the whole composite sometimes and then separate the pieces. So this requires a different set of skills and knowledge and depending on whether the market is flat or if it’s trending up or down so really depends. And that has to be really understood.

[00:05:53] And I think that is giving a short. People don’t talk about that enough that you really have to go through the different types of environment. The environment matters where do you work. How do you work. What are the people you work with the personality the characteristics the mindset or are given too little notice about this business when it comes to this game of trading and it is a game. Are you good with losing. Are you good with making you know having one trade not ruin your life your your week your month your career.

[00:06:23] Because no matter how much research you’ve done the platform the risk management all the tools you could have could be the best you’re still going to lose money and how does that environment support you in that type of environment where you’re going when you’re going to lose. So having having the right surroundings really in the environment matters greatly. The next one on the list success starts early. It starts at the beginning and so even at the largest hedge funds you have to start really with you know your surprise. Surprisingly you have an unscientific manner and most of these funds the way they hire so much of this success comes from you know orders or lack of success comes from either putting the people in the right positions or putting them possibly in the wrong positions. They’re set up for failure. So just because you have many years experience trading one thing doesn’t mean you can transfer that to the other. So there has to be some thought in some really some deep guidance thought put into this before you just move a guy from trading oil into trading soybeans. There may be some correlations but they’re not the same.

[00:07:34] So you really have to find the right fit for you as a trader the right personality. And you know with all of our work here at the one minute trader if you’re ever seeking guidance in these types of areas that people are afraid to talk about reach out to us right. You know we do work one on one with traders of all levels of experience including the highest. You’d be surprised people that have come through our doors quietly but the phone number of course is on the Web site you can write me. That’s the best way to reach me in. Just give me your brief synopsis of where you are and what you’re looking to work on. And we’re happy to help you one size approach does not fit all. I approach each individual I work with independently just as I do as a trader. What works for me may not work for you exactly. But we’re going to find a way that it’s going to help you to interpret the markets in a manner that leads to a successful process over and over again.

[00:08:29] So that’s it. I’m Matt with the one minute trader podcast. Thanks for listening and again it’s been seven and seven and a Half Men as we want to keep this short. Hopefully most of the time outside of the interviews that we’re doing. If you have any questions drop me a line Matt at one minute trader on TV. Hope you’re doing great out there. Happy Fall. And welcome to the pumpkin lattes and pumpkin spice season.