The Ego In Trading - Transitioning From Discretionary to Systematic Trading w/ Dale Miller

podcast Dec 09, 2018

Summary

In this episode, I welcome on recent Montreal Trader Meetup presenter Dale Miller.  

Dale has had a long trading career with stints on various trading desks trading derivatives, OTC products, and exchange-traded products. 

In this show, we discuss a plethora of topics and ideas including - 

  • Trading on a proprietary energy trading floor 
  • The fallout when Enron collapsed
  • Knowing who is on the other side of the trade
  • The differences between trading OTC vs. trading on an exchange
  • The social aspect of trading
  • Transitioning from trading on a proprietary floor to 
  • The ego in discretionary trading
  • Moving from discretionary trading to systematic
  • The importance of waiting for signal completion
  • The Ego In Trading
  • Trusting the model

The purpose of the Trading Perspectives Podcast is to feature and share the trading stories and perspectives of the Montreal Trading community.

Resources Mentioned

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An Introduction To Quantitative Trading - Do Things That Don't Scale with Simon Ouellette

podcast Nov 05, 2018

Summary

In this episode, I welcome on quantitative trader Simon Ouellette.

Simon recently presented at October's Montreal Traders Meetup and delivered a fantastic talk on the importance of having a proper methodology when it comes to researching and backtesting your trade ideas.

In this show, we’ll be diving further into that idea and also hear Simon share his trading experiences and perspectives.

The purpose of the Trading Perspectives Podcast is to feature and share the trading stories and perspectives of the Montreal Trading community.

Resources Mentioned

Quantopian - Quantopian is a crowd-sourced quantitative investment firm which promotes people from around the world to write investment algorithms.

Advances in Financial Machine Learning - great book by Marcos Lopez de Prado with insights on how to properly use advanced machine learning solutions to overcome real-world financial/investment problems. 

Simon's blog - where he shares...

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From Suicidal To The Stock Market - How You Do Anything Is How You Do Everything ft. Terrence Li

podcast trading Oct 21, 2018

Summary

I am excited to announce the launch of a new regular series of podcast interviews called The Trading Perspectives Podcast.

The purpose of the Trading Perspectives Podcast is to spotlight and share the trading stories and perspectives of the Montreal Trading community.

This inaugural episode features Terrence Li who shared his trading journey at September's Meetup.   

Hear how he went From Suicidal To The Stock Market and  How You Do Anything Is How You Do Everything.

I hope you enjoy our first episode and stay tuned for more episodes!

Resources Mentioned

Your Money or Your Life - a book recommendation by Terrence on how you may want to invest in your financial future and (more importantly) your long-term happiness.

Trade Like A Casino - great book by R. Weissman on how successful traders tend to operate like a casino in that they develop a method that gives them "positive expectancy".

Millennials Path - Terrence's blog where he blogs about...

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Trading With Market Profile

trading Apr 01, 2018

This week's article comes from friend and frequent Meetup contributor Michael Toma.

Michael Toma, CRM, is the author of The Risk of Trading: Mastering the Most Important Element of Financial Speculation, in which he details his data-driven risk-based approach to long-term success in trading. Mr. Toma received the Certified Risk Manager (CRM) designation for risk management excellence from the National Alliance in 2007. In addition to his corporate risk consulting business, he actively trades the US-based futures and options markets.


 

Negotiating at a car dealership can be a trying process. Lease or finance, I have a dollar number in mind with some flexibility if they include my heated seats. The dealer estimates up front what price they think will move inventory and knows what their average sale price needs to be in order to meet his goals. Based on prior sales, they will also know if they can be strict with bargaining or if they need to be more flexible given a new delivery...

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How To Avoid Getting Chopped Up 🔪

trading Jan 22, 2018
 

In last week’s lesson, we spoke about the importance of capping your losses as an intraday trader.

In this week’s lesson, we will be addressing one of the trickier trading environments which cause many a trader to lose money or give back their market gains and that is the rangebound or rotational market.

Most traders love trending markets. These are the easiest markets to trade in the sense that there is usually sufficient range for most participants to catch some profits.

On the other hand a lot of traders especially newer traders have a hard time dealing with rangebound or sideways markets.

If your style is to trade momentum - that is you're trying to buy/sell breakouts, ride winners, or buy or sell pullbacks to see new highs or lows then this is a losing style in a rotational market.

The market makes sharp reversals that will chop you up whether you go long or short and the ranges aren’t sufficient to cover your losses.

And here’s the problem - most...

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Capping your losses

trading Jan 14, 2018

At this month’s Meetup, we will be discussing several key principles to successfully trading the intraday timeframe.
One of the most important principles which is applicable to all traders regardless of timeframe is the necessity to cap your losses.

One aspect of trading that attracts a great many traders is the freedom that trading can afford.
As an independent trader, you have no boss - There’s no one there to tell you what to do, how to do it, or when to do it.

This virtue turns out to be one of one of the greatest obstacles for many individual traders to master to achieve any kind of lasting success.

How many of times have you had a string of winning days just to lose all that hard earned money because of 1-2 trading sessions where you lost control and gave all that money back if not more?

Not only is the scenario damaging to your PnL but it is terribly damaging for you psychologically and destroys your trading confidence.

At the end of the day, this is where...

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Year End Trading Reflections and New Year Plans

trading Dec 17, 2017

Trading is a business and what is crucial to running a thriving and sustainable business is the practice of focusing not only the trading results but also to reflect on the broader operations of the business.

During the quiet period leading up to the New Year, there is no better time than now to take some time off and do a post-mortem of the year as well as spend this invaluable time to plan for the coming year.

In this post, I will share some reflections that I got into the habit of doing each year.

This process was inspired by some of the immeasurable writings over at Dr. Brett Steenbarger's Traderfeed blog.

The yearly review should consist of a review of all facets of trading.
The review needs to include a daily P/L summary and performance metrics, such as average win size, average loss size, win rate per trade and per day, breakdown of P/L by strategies and trade types, etc.
Your review needs to also flag the greatest winning and losing trades of the month, quarter and year.

...

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3 Important Considerations Before Trading Cryptocurrencies

cryptocurrency trading Nov 13, 2017

It's been a wild week in the world of cryptos with the failed SegWit2x effort taking Bitcoin up to 7950 and then down to 5900 at the time of this writing.

All of this volatility and media exposure has attracted a lot of new traders and investors in search of easy money.

If you're new to the Cryptocurrency space here are 3 important considerations before dipping your toes into the volatile waters.

 

1. Understand the fundamentals

Everyone has heard of Bitcoin, however, there are a plethora of independent and competing cryptocurrencies that are worth keeping an eye on.

The key is to know the instrument(s) you are trading. Just as in Forex and equities trading, understating the macro picture and more importantly, the sentiment of other traders is paramount in setting the proper trading context.

One site that you should bookmark is CoinMarketCap.

This site is a must reference to track the ongoing fluctuations in market cap and capital inflows.

I personally pay attention to the top...

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The Journey Towards Trading Mastery

trading trading journey Oct 23, 2017

In our previous articles, we've recounted how success in trading must come from objectively understanding several market truths and being willing to face obstacles and failures head-on.  

One of the biggest takeaways is that becoming a successful trader isn’t a destination but rather a process. 

It’s a process of moving from unconscious incompetence to ultimately unconscious competence.

In your pursuit towards trading mastery let the following 9 steps guide your actions and intentions.  

These steps are adapted from the book - Handbook of Coaching - A Developmental Approach.

 

1. Know yourself.  

 

"It's not the mountain we conquer but ourselves."  - Sir Edmund Hillary

Leaders and thinkers through the ages have imparted this sound maxim that we must always start at home with self-knowledge before we seek to know and understand the external the world. 

"For most retail traders, trading is a solitary effort and...

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Why Failures Matter

trading stories Oct 15, 2017

 

As J.M. Barrie said, “We are all failures - at least the best of us are.” That should be a quote you have in mind when you are afraid to fail.

After all, I've seen over the years how much I could learn from failing in trading and/or in life. The lessons you get from a mistake are invaluable.

Throughout the interviews on the Desire To Trade Podcast, I spoke with traders who blew up as many as 9 accounts, made the same mistakes for years, and had no clue what they were doing at first.

Although these traders made the mistake of not looking back & evaluate their performance at the beginning, they still went on to become successful full-time traders.

Have you ever thought of failures as an aspect of moving forward?

What was a mistake you've done and what have you learned?

Let's start the discussion below!

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