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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This episode features Ross Haber, co-founder of Trader Lion, who shares his extensive experience shaped by William O'Neil's growth investing principles. He breaks down the CAN SLIM methodology, explaining how its components identify leading stocks, and discusses how market evolution and increased volatility necessitate adaptations, personalized risk management, and a deep understanding of stock "personality." Haber also addresses criticisms of the system and highlights why market timing and continuous learning are essential for success.
Rick Bandazian Jr., a veteran trader, delves into his methodical approach to event-driven and merger arbitrage strategies, emphasizing the critical role of anticipating market moves based on nuanced corporate actions. He shares his "aha!" moment transitioning from an analyst to an independent trader, highlighting the shift from an idea guy to a disciplined executor. Rick also discusses the evolving market efficiency, his current endeavors in developing a scalable macro positioning strategy, and the mental discipline required to navigate trading lulls while continuously seeking new edges.
Frustrated by early losses, Laurens Bensdorp developed a comprehensive systematic trading approach. He explains how combining diverse strategies, including mean reversion and trend following across various assets and timeframes, creates a robust portfolio that smooths equity curves and minimizes drawdowns. Bensdorp details managing 55 automated systems, stressing the importance of personal system development, understanding hidden risks, and adapting to ever-changing market conditions for consistent profitability.
Inspired by predictive analytics, Sam Miesse developed a rigorously back-tested quantitative system for small-cap stocks. He explains his process of identifying and exploiting repeating patterns in human behavior, starting with an experimental $10,000 to grow his account to $3.8 million in less than three years. Sam discusses the challenges of market changes, dealing with large drawdowns, and the importance of discipline and transparency in an industry often plagued by fraud.
Mark Ritchie II, a seasoned swing trader and investor, recounts his evolution in the markets, highlighting the critical role of emotional discipline and stringent risk management. He details his systematic approach to swing trading equities from the long side, focusing on manual screening, price action, and timeless principles from trading legends. Mark also shares insights on navigating various market regimes, the importance of a well-defined plan, and optimizing capital efficiency for sustained profitability.
Alfonso Peccatiello shares insights from his extensive experience managing large portfolios, focusing on how macroeconomic insights, market imbalances, and disciplined risk management drive his investment strategies. He explains the importance of identifying crowded trades by understanding market consensus, using the Japanese Yen carry trade as a key example. Additionally, Alf delves into the systemic encouragement of leverage, the limitations of traditional risk models like VAR, and the critical role of policymakers as "game masters" in shaping market behavior.
Steve B, an experienced independent trader, delves into his evolution from a corporate accounting background to day trading futures, highlighting the critical shift from long-term investing to income generation. He explains his unique "confluence trading" strategy, which integrates options market data, macro factors, and index correlations to identify high-probability setups. Steve also discusses the importance of strict risk management, psychological resilience in accepting losses, and leveraging community support, while candidly addressing the challenge of maintaining work-life balance in the demanding trading world.
Head trader Robb Reinhold details the "Flat Earth Trading Society" experiment, a year-long test using random stock selections and rigid position management. The study demonstrates that disciplined exits and loss management are paramount, often surpassing the importance of well-thought-out entries. Robb shares key takeaways, including the statistical nature of streaks and the psychological challenges traders face, advocating for robust systems tailored to individual personalities rather than relying solely on discipline or intelligence.
Jason Shapiro, featured in "Unknown Market Wizards," returns to discuss his counter-trend trading philosophy. He explains how he identifies overcrowded trades by focusing on market positioning and sentiment, rather than price. Shapiro details his "news failure" strategy, where markets react inversely to expected news, and shares insights on managing risk, avoiding behavioral biases, and the broader psychology driving market movements, including why he calls the current environment "the most hated bull market."
Greg Magadini, a former prop trader at DRW and Chopper Trading, details his unique approach to exploiting volatility in crypto markets, where he transformed $50,000 into $1.3 million in profits over nine years without a down year. He explains core volatility trading concepts, the specific inefficiencies found in crypto options and futures (like extreme skew and basis trades), and how these opportunities are evolving with Wall Street's entry. Magadini also delves into the psychological challenges of trading and the importance of realistic expectations and risk management.
Sam Daghash discusses the deeper psychological reasons behind traders' struggles with discipline, emphasizing how our unconscious conditioning and emotional responses sabotage trading. He highlights the distinction between technical skills and psychological barriers, illustrating how personal beliefs, like the 'need to be right' or a 'self-worth cap,' can prevent consistent profitability. The conversation delves into practical neurotransformational tools for managing emotional states, reprogramming limiting beliefs, and fostering a professional mindset to achieve lasting trading success and personal liberation.
This episode explores Michael's unique journey from aspiring NFL player to highly disciplined day trader. After a career-ending injury, he taught himself trading, initially struggling with losses before finding success in short-selling volatile small-cap stocks. He details his "short into resistance" and "front side short" strategies, emphasizes risk management with a "max daily loss" rule, and discusses the psychological aspects of trading with a prop firm and accountability partners.
Veteran trader Tony Greer recounts his career, from his father's influence and early days at Sumitomo Bank to the intense trading culture at Goldman Sachs. He vividly describes his experience during the dot-com boom and bust, emphasizing the costly lessons learned about chasing bubbles and the necessity of developing robust survival skills. Tony also details his current trading methodology, focusing on pattern recognition, trend analysis, and the critical importance of emotional discipline and continuous adaptation to market regimes.
This episode features Marsten Parker, a systematic trader renowned for his algorithmic, disciplined approach, which earned him a spot in Jack Schwager's "Unknown Market Wizards." He recounts his transition from early discretionary trading losses to building fully automated systems that capitalize on breakouts, mean reversion, and IPO opportunities. Marsten delves into the importance of statistical analysis, the pitfalls of overfitting, and his current passion for developing backtesting software over active trading.
Economist Steve Hanke dives into the critical role of money supply in shaping inflation and market behavior, arguing that current Fed policies overlook this key factor. He shares insights from his extensive career, including memorable trades and historical examples of monetary and fiscal policy impact. Hanke also critiques the methodology behind inflation measurements and government spending, offering a unique perspective on the true state of the economy, gold's drivers, and the stock market's current valuation.
Saad Filali, former Goldman Sachs M&A specialist, now manages his own macro fund, trading primarily based on news flow and fundamental discrepancies rather than technicals. He discusses the critical importance of understanding different market players, from institutions to retail "Cali Boys" and momentum-driven CTAs, as their varied behaviors impact market efficiency. Filali explains how he identifies opportunities by anticipating central bank actions and finding divergences between market pricing and fundamental valuations, while adapting to regulatory constraints and the challenges of a constantly evolving market.
Health expert Ben Greenfield dives into groundbreaking methods for superior mental sharpness. He discusses optimizing brain health through controlled caffeine intake, targeted nootropics, and addressing foundational elements like the blood-brain barrier and environmental factors. Practical advice on diet, key supplements, sleep, and specific exercises are provided to boost focus, memory, and overall brain power.
Garrett Drinon, a former musician now a full-time trader at a prop firm, shares his journey into financial markets and the pivotal moment that led him to systematic trading. He elaborates on his team's development of hybrid algorithms that combine discretionary insight with automated execution, categorizing trades as rare 'unicorns' or common 'ponies.' Garrett also delves into the challenges of algo development, managing strategies over time, and the continuous pursuit of growth as a trader.
Drawing on his experience as a CME risk officer and a finance PhD, William Gogolak discusses critical risk management principles separating winning from losing traders. He advocates for a quantitative approach, using probabilities and contextual analysis to inform trading decisions and adapt to market changes. William also details his "buy the dip" strategy with futures and leveraged ETFs, offering practical tools and advice for both new and experienced traders.
This episode features William Lam, an expert in strategic mental and micro-behavioral programming, who explains how our minds act as operating systems. He shares his personal journey of overcoming limiting cultural beliefs and applying NLP to achieve significant personal and professional goals, including designing his ideal partner and attracting clients. Lam emphasizes that by consciously upgrading our mental programming, we can shift from unconscious actions to fulfilling desires, enhancing mental efficiency and performance in all areas of life.
Veteran trader Gary Norden shares his extensive experience, starting from the volatile Japanese warrant market and evolving into an options market maker and hedge fund manager. He highlights the importance of risk-averse strategies, the "lost art" of order flow trading, and the pitfalls of relying on prevalent but often misleading trading education. Gary also delves into the impact of automation on trading skills and the challenges of building strategies with zero correlation to equities.
James Fishback, Chief Investment Officer of Azoria Partners, offers a unique macroeconomic outlook, arguing that aggressive Fed rate hikes haven't had their intended effect on the resilient US economy due to structural changes. He critiques the Fed's political independence and its role in fiscal irresponsibility, while also exploring the diminishing returns of national debt on GDP. Fishback also delves into AI's transformative potential, advocating for investment in established companies leveraging the technology and predicting significant shifts in the job market, alongside a critical view on Universal Basic Income.
Ian and Tessa from Chat with Traders share a heartfelt year-end message, expressing deep appreciation to their audience, guests, and sponsors. They reflect on 2023's learning experiences and personal growth, highlighting the value of presence during the holidays. The hosts also preview exciting plans for 2024, including new interviews and invite listeners to join their supportive trading community.
Erik Smolinsky discusses how his difficult childhood motivated his early interest in investing and led him to a career as a disciplined options trader. He highlights the "why-grit factor," the importance of a comprehensive "Wealth Development and Trading Plan," and the lessons learned from his Marine Corps service, particularly ultimate accountability. Erik also delves into derivative strategies, managing high volatility, and the critical distinction between win rates and expected return for long-term compounding success.
Veteran trader Tom Basso, known as Mr. Serenity, shares his "all-weather" trading philosophy, focusing on hedging risk and diversifying across uncorrelated assets like stocks, commodities, and even Bitcoin futures to create a smooth equity curve and maintain emotional balance. He recounts lessons from past market crashes, the evolution of his strategies, and the importance of designing a trading approach tailored to one's unique financial puzzle and lifestyle. Basso also highlights behavioral economics and cultivating self-awareness as key to making logical decisions and avoiding emotional pitfalls in both trading and personal life.
This special episode of Chat with Traders features a compilation of listener voices sharing their diverse motivations for staying in the trading game, from financial freedom to personal challenge. Hosts Tessa and Ian then delve into valuable lessons and common traits observed from successful past guests, highlighting strategic approaches, mental fortitude, and the importance of self-improvement and robust risk management, especially in choppy market conditions. The discussion also touches upon the often-overlooked aspects of trader well-being and the courage required for continuous learning or even knowing when to step away.
Rob Hanna recounts his evolution from a successful discretionary trader to a proponent of quantitative analysis after a significant losing year in 2004. He details how he developed systems combining seasonality, overbought/oversold conditions, and Fed days to smooth equity curves and reduce anxiety. Hanna also discusses the importance of building robust, uncorrelated models and leveraging data to set market bias, comparing the psychological benefits to "being the casino" rather than a gambler.
This episode features Bryan Holdford, who recounts his trading evolution from a teenager paying for a Series 7 license to navigating the high-commission era and the 2008 commodity crash. He discusses the critical importance of strict loss control, likening the market to a sociopath, and shares how he overcame undercapitalization, impatience, and significant drawdowns to finally achieve consistent profitability with SPX credit spreads. Bryan also touches on the psychological traps of trading and the indispensable role of self-discipline.
Dan McDermitt, co-founder of The Chart Guys, discusses his evolution as a trader, beginning after significant mutual fund losses in 2008. He details his early experiences in marijuana penny stocks, the pivotal shift from fundamental to technical analysis, and crucial lessons learned from major mistakes. The episode covers his deep dive into crypto, where he refined his strategies for recognizing market bubbles, scaling positions, and utilizing dynamic correlations across various timeframes. McDermitt also emphasizes the critical role of psychological resilience, self-observation, and maintaining a balanced, yet disciplined, approach to trading.
Mark Bennell, an engineer turned full-time trader, discusses the critical importance of approaching trading with a business mindset rather than a hobby or gambler's mentality. He explains how low entry barriers often lead to failure and advocates for formal education, structured planning, and rigorous self-assessment, including a 'trading psychology plan' and a SWOT analysis. Mark emphasizes accountability, process over profit targets, and integrating trading into a sustainable lifestyle.
