The Michael Martin Show

Michael Martin is a trader and instructor for MartinKronicle. He is the publisher of Managing Expectations by Tony Saliba. Martin's own book is called The Inner Voice of Trading and features interviews with Michael Marcus, Peter Borish, Bill Dunn, and Ed Seykota - who also wrote the Foreword.
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The Michael Martin Show






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Now displaying: February, 2018
Feb 28, 2018

All you can hope for is that you use the frustration to motivate you to find another solution to decrease the frequency of what brings forth the frustration in the first place. That is of course, unless you want to continue feeling frustrated - then keep doing what you're doing because you already have a perfect system of generating frustration. 

Feb 27, 2018

Has this every happened to you?

You're in a great trade, you have unrealized gains, and you're feeling good about your execution. 

You're about to add to your winner, when the market craps the bed and takes the entire market down so that your gains are wiped out in less than an hour. 

Worse, the market rebounds entirely over the next few days as you watch your former position rally to new highs. 

Do you chase it? Not a good idea. 

Getting back in because you're angry is another form of revenge trading.

If you don't have a bona fide rule for re-entering such a trade, consider looking at reversal patterns.

If your market sells off with the overall market, but rebounds, it might show up as a reversal pattern.

A good one to start with is Victor Sperandeo's "2B Reversal" as depicted in his book "Methods of a Wall St. Master."

You can trade this as a chart pattern or code it into your systematized rules.




Feb 26, 2018

You will get fired for trading in a way where you don't have a defined edge faster than you will for poor performance. 


Feb 23, 2018

Your "leads" or potential clients are not going to understand some of the industry terms that you might use during your presentation, so they are not going to know what questions to ask.

They are not going to want to look stupid, so don't expect them to ask you what a certain word means.

Here's what I would do:

1) avoid jargon - don't use big words that the average person won't know

2) stay on message - answer every question in terms of how your system or trading rules would perform

3) take a breath and take your time - it's better to take a beat and put some thought into your answers, than be rapid-fire. It's not a race. 

4) "I don't know" - you'll gain a lot of respect if you have to say "I don't know, but let me get back to you in X days." You might have to research something or double-check on an idea before you open your mouth. It also gives you a specific reason to follow up with them.

Don't let curveballs throw you and take you off on tangents. Focus on your trading rules while your trading, and when you're marketing. 



Feb 22, 2018

This is a brief glimpse of some of what we cover in our courses.

No one wants to hear how great a trader or PM you are in a raging bull market. Everyone has it all figured out. 

Then something bad happens and they're equity gets hit by 10%...

You enter the picture and show people how you can remain calm under pressure and capture the majority of the up moves and not capitulate at the market bottom.

Position yourself as a trusted advisor who the HNW individual will hire no differently than they would an estate planner or CPA.


Feb 21, 2018

Live instruction from Michael Martin who is joined by Peter Borish and Brynne Kelly.

Other lessons by Scott Kaminski and Tony Saliba. 

Plus, special guests...

Feb 20, 2018

The more frequently you trade, the worse it is.

Feb 19, 2018

Peter Borish joins Michael Martin for his weekly visit. 

Feb 16, 2018

Any group of unsophisticated investors or traders who are committing real capital can push the markets around based upon what they're reading in social media. You have to respect their collective power. 

My job is still to protect capital despite or regardless who I trade against. A group of pikers acting in concert can run me over despite my methodology and 3 decades of experience. 


Feb 15, 2018

Glaring at the screen isn't going to generate trade ideas. Volatility does not mean opportunity. Your trading plan has to be set before you take action. 

Feb 14, 2018

Risk a fraction of what you're normally risking per trade. You will need to learn how the new component or strategy will work in concert with your existing rules. 

Feb 13, 2018

Have a wish list and be prepared when things go on sale

Feb 8, 2018

Matt Dula is a former Marine having been honorably discharged from the USMC in 2014 after a 5-year commitment as am an infantry mortarman. He was on 5 different prescription meds when he returned home as a result of a tour in Afghanistan and an MEU in the Middle East. He is currently the CEO of CVRN - the Cannabis Virtual Reality Network.

He replaced all 5 of those prescription drugs through the use of MMJ. Dula feels the US can save billions of dollars a year if we allowed Veterans to use MMJ in lieu of prescribed medications. 

To better understand the marijuana space, Dula advises that you focus on two things to start:

1) If you follow the money, you can see why it's slow going in getting marijuana off the Federal prohibited substance list. There are companies that have a vested interest in keeping it illegal for many years to come, or at least slow it down so they can play catch up and set themselves up to cash in by making private investments through private holding companies so they have the equity ownership in place once marijuana is taken off the list. 

An example of this is Hawthorne Gardening Co, a subsidiary company of Scott's Miracle Gro (NYSE: SMG). Scott's has in fact shed its international businesses to focus on the MMJ space. 

2) Marijuana contains over 400 medically beneficial phytochemicals, the most beneficial class known as phytocannabinoids. These mimic our own body's endocannabinoids that our bodies produce naturally. We produce over 80 but that list is growing with more research. 

When we introduce phytocannabinoids into our bodies, they seek out "holes" to fill where our bodies might be lacking in the endocannabinoid space.

"Of the phytocannabinoids currently being studied the one that’s best known and most researched is Tetrahydrocannabinol (THC). THC is a compound that carries sometimes less desirable psychoactive properties. However, there are more than 100 other cannabinoids that are less known like Cannabidiol (CBD), Cannabinol (CBN), and Cannabichromene (CBC). CBD, CBN, and CBC have all shown promise maintaining the mind and body while promoting everyday health and wellness without these aforementioned psychotropic effects."

You can read more about these here.

Read more about cannabinoids here



Feb 7, 2018

A small allocation is a strategy. A large allocation is a business. How you handle yourself in market corrections instructs allocators how you will handle yourself with their money. 

Have a game plan ahead of time. The market is always right - don't deflect blame. Really good traders understand themselves very well. They have ownership of their emotions and trading. 

Pairs trading is a good way to have a hedge that you can actually make money on. Simultaneously long one name and short another. Both "legs" can profit, whereas if you have a married put with a long stock, you're bullish on the stock but if you make on the hedge, it's because you're losing on the stock. 





Feb 2, 2018

You have to always manage risk with the odds in your favor.

Even if you lose, if you're sticking to your rules, it could be a good trade that just had a bad outcome.

Keep putting on trades with high expected values and over hundreds of trades you'll come out ahead. 

How you recover from a drawdown is more important that the duration or magnitude of the drawdown.

Everyone has drawdowns. Therefore, focus on your rules and play superior defense and allocations such as Peter will respect your process.

If you bail on your rules, like amateurs do, you relegate yourself back to amateurville. How you behave around drawdowns will show allocators how you will behave when you lose their money. <br>

Feb 1, 2018

Michael Martin answers the question "How would you trade X commodity or stock?"

Also, he discusses how he trades laggards.