Chat With Traders is your key to the minds of trading's elite performers. Start listening to learn how a diverse mix of traders went from zero to hero, how they successfully trade markets today, and get their best tips 'n pointers for profitable performance, plus much more. Note: You are responsible for your own trading decisions—this is not financial advice.
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Former high-frequency trader Dave Lauer shares his unique perspective on market dynamics, from his early career in building low-latency hardware to his direct experience during the 2010 Flash Crash. He delves into the intense pursuit of speed in HFT, the complexities of market structure, and why he transitioned to consulting and advocacy for better market quality and data-driven regulation. Lauer also discusses the role of IEX and the impact of dark pools on market integrity, emphasizing the need for investor confidence.
This episode features renowned trader Tom Sosnoff discussing his journey from a CBOE floor trader to co-founding Thinkorswim and Tasty Trade. He explains the strategic advantage of options trading, advocating for a quantitative approach that leverages the law of large numbers and selling overpriced market fear to achieve a probabilistic edge. Sosnoff also challenges conventional views on trading psychology, stressing that success stems from know-how and commitment rather than mental fortitude.
Jared Tendler discusses his unique approach to mental game coaching, drawing parallels between high-stakes poker and trading. He emphasizes the importance of understanding and systematically correcting emotional issues like anger, fear, and overconfidence, rather than just suppressing them. The conversation covers managing variance, the value of self-awareness through journaling, and how mental challenges evolve throughout a professional's career, offering tangible strategies for achieving peak performance.
Blair Hull, known for his success in trading and market making, recounts his path from a professional blackjack player in the 70s, where he honed his understanding of "edge" and risk management, to establishing Hull Trading, a firm that pioneered automated options trading. He discusses the firm's growth, its acquisition by Goldman Sachs, and his current work with Hull Tactical Funds, which employs systematic market timing. Throughout, Hull stresses the necessity of having a quantifiable advantage, betting proportionally, leveraging technology, and continually adapting strategies as market efficiencies evolve.
Dr. Yves Hilpisch, founder of The Python Quants, delves into his journey in quantitative finance and how Python became central to his work. He explains different roles of a quant, strategies for market exploitation, and the use of data sources beyond price. Hilpisch passionately advocates for open-source technology like Pandas, highlighting its collaborative benefits and why Python is a strategic choice for financial institutions and individual traders alike.
Ryan Moffett, Lead Investment Manager at Blackpier Capital, shares his remarkable journey from a failed land development venture to successfully launching his own fund. He highlights how cold-calling 50 fund managers led to invaluable mentorship, shaping his understanding of market strategy versus traditional finance. Ryan delves into Blackpier's robust options-based "Atlas Strategy," designed to thrive in volatile markets, and emphasizes the critical importance of mechanical trading, deliberate practice, and embracing mental discomfort as catalysts for growth.
In his second appearance, Futures Trader 71, or Morad, dives into advanced trading psychology and practical strategies. He shares how to approach learning new trading skills, the pitfalls of focusing solely on PnL, and the critical importance of detaching from individual trade outcomes. Morad also details his unique regressive risk management strategy for navigating drawdowns and provides essential advice on choosing a supportive brokerage focused on trader development.
Veteran swing trader Alan Farley shares his unique path, from learning technical analysis post-1987 crash to navigating high commission costs and the rise of algo trading. He delves into critical concepts like convergence and divergence, the intricate dynamics of price breakouts, and the nuanced role of stop losses. Farley stresses that consistent profitability stems from detaching emotion, rigorously testing strategies, and building a personalized trading system based on objective data rather than passion or fear.
Anthony Crudele recounts his challenging path from starting on the CME floor at 18, experiencing several significant financial setbacks despite mentorship, to eventually making millions in E-mini S&P 500 futures. He details his transformation from a high-frequency pit trader to a disciplined, low-frequency electronic trader, emphasizing the critical role of robust risk management and adapting to market evolution. This episode offers insights into his unique "Beacon" indicator and the importance of understanding correlation and confirmation in making trading decisions.
Global macro investor Raoul Pal details his extensive career from Goldman Sachs to founding RealVision TV. He explains his top-down macro investing approach, emphasizing the interplay of economic cycles and technical analysis. Pal also raises concerns about flawed economic models, the perils of global debt, and the unprecedented "financial experiment" of negative interest rates.
In this episode, Jack Schwager, author of the acclaimed Market Wizards series, takes listeners behind the scenes of his interviews with top traders, revealing their motivations and the sacrifices made for success. He also dives into what separates profitable traders from "super traders" and explains why many fail due to human nature and poor risk management. Additionally, Jack provides an update on FundSeeder's evolving platform, designed to connect undiscovered talent with investors, and offers recommendations for essential trading books beyond his own series.
Dennis Dick, a veteran short-term equities trader and market structure analyst, shares his journey from penny stocks to prop trading in the late 90s, highlighting the advantages of speed and capital before the rise of modern HFT. He explains how he adapted his strategies, moving from scalping to focusing on market inefficiencies at the open and close, utilizing information arbitrage. Dennis also delves into the complex nature of HFT, offering practical advice for traders navigating today's fast-paced markets.
This episode features Saul Knapp, detailing his unique path from a 16-year-old LIFFE runner to a seasoned risk manager overseeing numerous traders, and now running his own prop firm. He elaborates on his current strategy of spread trading in energy markets, explaining its mechanics, risk mitigation benefits, and how to identify opportunities. Saul also offers invaluable lessons on professional risk management, trader psychology, and common pitfalls, emphasizing the importance of a well-defined plan and accepting small losses for long-term success.
IEX co-founder Dan Aisen delves into his journey from RBC, where he developed the Thor algorithm, to establishing IEX as an alternative trading system. He explains how IEX aims to create fair markets through innovations like its speed bump, countering high-frequency trading arbitrage. The discussion also covers the intricacies of dark pools, their role in market structure, and IEX's ongoing application for exchange status, including the public and regulatory challenges faced.
This episode features John Walsh, known as 'The Black Cabbie Trader,' discussing his unexpected win in a 2012 City Index Trading Academy competition. With no prior experience, he secured a £100,000 prize, leading him to develop a simple yet highly disciplined trend/position trading methodology for US equities. John emphasizes the importance of managing risk, adhering to a systematic approach, and cultivating a patient mindset to ensure longevity in the markets.
This episode features Charlie Bathgate, CEO of Sang Lucci and Flammarion, who shares observations from evaluating traders and insights into the demanding nature of the financial markets. He emphasizes why humility and owning one's strategy are key to consistent success, highlighting the immense challenges faced by retail traders against institutional power. Charlie also delves into his obsession with psychology and biohacking, explaining how personal optimization and innovative technologies, like those used in the NBA, can significantly benefit traders by monitoring and enhancing their mental and physical states.
Rob, also known as @DiscoveryTrader, discusses his unique approach as a futures scalper and his involvement in a quantitative research firm. He elaborates on why risk management and understanding betting structures are paramount, drawing parallels to casino operations. Rob also shares how his attempt to automate a discretionary strategy led to profound insights, and strongly advocates for the benefits of interacting with other traders through communities like Discovery Trading Group to foster continuous improvement and avoid common retail pitfalls.
Eric Hunsader, founder of Nanex, discusses his journey from algorithmic trader to creating a unique market data feed. He critically examines high-frequency trading (HFT), arguing that it constitutes stealing and market rigging due to zero-risk arbitrage, collusion with exchanges, and regulatory failures. Hunsader also explains quote stuffing, the prevalence and impact of mini-flash crashes, and the potential for integrity-driven solutions like IEX to bring transparency back to the market.
Jeff Davis, a seasoned day trader, shares his unique path from a postal worker to an S&P futures specialist employing a mean reversion strategy built on statistical probabilities. He details his transition to algorithmic trading after facing personal health challenges, highlighting the importance of automation and the risks of a "one-man business." The discussion also covers critical aspects of trading psychology, adapting to market regimes, the power of specialization, and how to effectively "size up" trades by managing stops and mental capital.
Veteran trader John Carter discusses his 25-year career, highlighting early struggles with boom and bust cycles and how Mark Douglas's books helped him develop a crucial probabilistic mindset. He explains his swing trading approach, preference for options, and sophisticated exit strategies using "expected move" and Fibonacci extensions. Carter also provides valuable advice for novice options traders and recounts his famous $1.4 million Tesla trade, revealing how it reshaped his strategy towards high-conviction, concentrated positions rather than broad diversification.
In this episode, European Hedge Fund Manager of the Decade, Mikael Syding, discusses his unconventional journey from a "schoolyard hippie" to a financial titan. He delves into his value investing approach, key lessons for traders, and the evolution of his views on money. The conversation also explores his fascinating perspectives on artificial intelligence, the technological singularity, and human-technology integration.
Jerry Parker, one of the original Turtle Traders, shares his insights on the legendary trading experiment, detailing Richard Dennis's mentorship, the core principles taught, and how he applied them to found Chesapeake Capital. He delves into the evolution of trend following, the critical role of diversification and discipline, and the unique challenges and opportunities of managing investor capital in today's markets.
Returning guest Dan Shapiro reveals his effective 60-minute pivot trading system, which focuses on identifying supply and demand zones on higher timeframes to cut through market noise. He critically discusses the dangers of social media-driven one-minute trading, the importance of a disciplined mindset, and a fixed risk position sizing strategy. Shapiro also provides a candid look at the decline of traditional prop trading and offers practical advice on navigating regulatory rules and investing in one's own trading business for long-term success.
Trading psychology expert Dr. Brett Steenbarger explains how to break detrimental trading habits by fostering self-awareness and re-channeling emotions. He introduces his "Trading Psychology 2.0" framework, highlighting the importance of adapting to changing markets, leveraging personal strengths, cultivating creativity, and developing robust processes. The discussion also covers why even successful traders seek coaching, how to approach goal setting beyond monetary targets, and reframing losses as valuable learning opportunities.
Systematic trader Nick Radge returns to delve into mean reversion strategies, explaining their appeal through diversification and high trade frequency, akin to a casino's edge. He highlights the crucial importance of developing robust trading systems by understanding 'why' they work, stress testing them with tools like Monte Carlo simulations, and meticulously managing data quality and survivorship bias. Nick also covers the practicalities of automating trades, the rare instances of overriding systems, and how to identify when a strategy is no longer viable.
Nicola Duke discusses her path to becoming a professional swing trader, detailing her transition from air traffic control, intense early routines, and the critical role of a mentor in shaping her mental discipline. She explains her systematic, rules-based approach to trading 36 markets, emphasizing the use of Fibonacci patterns and the preservation of "mental capital." The conversation also covers the psychological challenges of live trading, the importance of cutting losses, and her unique perspective on market fundamentals.
Tracy, known as @ChiGrl, recounts her journey from leaving LA to becoming a hardcore crude oil trader in Chicago, including her early days at a "hack-shop" brokerage. She details her trading methodology, which effectively pairs technical intraday analysis with a robust understanding of fundamental drivers in the energy sector. Tracy also provides an insightful analysis of the prevailing bear market in oil, its macro-economic impacts, and potential future developments, concluding with essential advice on discipline and risk management for new traders.
Ari Pine shares his rich market journey, encompassing early neural network research, floor trading, developing risk management software, and leading a quantitative trading group. He emphasizes the critical role of a scientific perspective in market analysis, prioritizing a rigorous process over immediate outcomes, understanding positive expectations, and leveraging the law of large numbers for sustained profitability. His insights span from lessons learned at hedge funds to teaching options in emerging markets, offering a comprehensive view of professional trading.
Veteran NYSE broker Peter Tuchman, known for his passionate presence, recounts his 30-year journey on the exchange floor, from witnessing the 1987 crash to trading major IPOs like Alibaba. He discusses the dramatic shift from open outcry to electronic trading, explaining how he reinvented his role to find an "edge" in market openings, closings, and IPOs. Tuchman emphasizes the enduring importance of the human factor amidst technological advancements and offers candid advice for navigating today's ruthless, information-saturated markets.
This episode features Daniel Goldberg, a seasoned trader and partner at Futex, a UK proprietary trading firm. Daniel recounts his journey from a naive book-runner on the exchange floor in 1995 to a successful electronic trader, highlighting the shift from physical pits to modern tools like the price ladder and market profile. He details his top-down trading approach, emphasizing macroeconomic influences and the unique advantages and challenges of trading within a prop firm, including their innovative training methods.
