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Trader Mindset

Michael Martin is a trader and instructor. His show deals with the emotional and psychological aspects of trading and managing risk. His book "The Inner Voice of Trading" and features interviews with Michael Marcus, Bill Dunn, and Ed Seykota - who also wrote the Foreword. Get the audio book free at MartinKronicle.com.
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Now displaying: 2020
Dec 30, 2020
You might be shooting for 50% RoR, but that comes with the potential for a 25% drawdown.
 
Your clients might not want either...
 
Make sure you communicate what you're endeavoring with your clients and be on the same page.
 
Dec 29, 2020
It's very difficult to backtest chart by reading charts going back 20 years.
 
A trading simulator that runs at the portfolio level is your best bet.
 
Dec 28, 2020
Take a small step in the direction of your goal.
 
It's a much greater effort to put forth than someone sitting on the couch.
 
Take action.
 
Dec 23, 2020
On some level, everything is unexpected - I know that.
 
In this context, I'm speaking about markets moving sharply against you before you have a chance to act.
 
Dec 22, 2020
You've probably heard the saying "what gets measured gets improved."
 
There are several moving parts to managing risk as a trader or advisor.
 
Here are a few things that you can chew on for your end of year or 2021 planning.
 
Dec 21, 2020
The easiest way to lose a great deal of money is to bet big because you think you "have a feel" for the ticker.
 
On the other hand, you might be leaving a great deal of upside on the table because you're being too conservative.
 
A good place to start is by having consistent position sizing.
 
Dec 17, 2020
Are you wrong or unintelligent when a trade loses money?
 
Dec 16, 2020
You have more time than you think to get it together.
 
If you press, you'll lose.
 
Dec 15, 2020
The best you can do is put your trades on.
 
How you modulate your interpretation of the market activity comes down to managing risk.
 
Dec 11, 2020
In order to get paid what you're worth, you have to have a clear understanding about what you bring to the table.
 
You also need to understand the landscape of the industry and how you compete therein.
 
One thing is certain: if you don't ask for the money, you're not getting it.
 
Dec 10, 2020
What you do for homework can tell you a lot about the role you play and the value you bring to your clients.
 
There is a big difference between managing risk and asset allocation.
 
If you intend on collecting Incentive Fees, you have to do your own homework.
 
Dec 9, 2020
When you act decisively, you cauterize all the emotional angst that would normally come afterwards.
 
Think of the great feelings you'll have when you can show your client(s) how you sidestepped large drawdowns, took profits when your names reversed, and didn't do things like buy pullbacks in a weak market that kept going down.
 
Traders and portfolio managers have to be leaders, so show decisiveness and leadership.
 
Someone has to be in control, and it might as well be you.
 
But you have to set it up that way from the beginning.
 
Dec 8, 2020
When you act decisively, you cauterize all the emotional angst that would normally come afterwards.
 
You come to the market the next day without the emotional hangover and a clear head.
 
That leads to another productive day.
 
Good leaders are decisive and traders have to be good leaders.
 
Dec 7, 2020
When you act decisively, you cauterize all the emotional angst that would normally come afterwards.
 
If you don't offset losses quickly, they can become larger losses.
 
Which feeling do you want to feel - the power of being decisive or the feeling of regret from not having taken action sooner?
 
You get to choose...
 
Dec 4, 2020
A good advisor has wisdom across many areas in life and business. 
 
Clients will rely on those advisors for more than portfolio management. 
 
That's a good place to be so be that advisor. 
 
Dec 3, 2020
If you sell your losers regularly, all your clients will see are what's left: the winners.
 
Dec 2, 2020
You don't want clients asking you about names you don't own.
 
Have them set up a second account for all their great trading ideas, and don't get involved.
 
You'll thank me later.
 
Dec 1, 2020
Clients like to know that you have a plan.
 
You're not likely to anticipate everything, but it pays to have discussions with clients before major announcements.
 
No one likes surprises.
 
Being conscientious about their money will pay you and your clients big dividends.
 
Nov 30, 2020
Clients are looking at the daily swings in their account when they see big moves in the market.
 
You might consider having discussions with them before this happens to instruct them on what you'll do.
 
Big increases in vol can also signal a change in direction...
 
Nov 27, 2020
The ultra-wealthy already have all the money in the world.
 
They don't need you to double their money.
 
Their main concern is to "not lose."
 
How will you be different from the other managers they are interviewing?
 
It's the differences that sell, so sell them what's in this episode.
 
Nov 26, 2020
Imagine if you had to interview yourself for the job you want.
 
How would you grade yourself for the job you're doing?
 
Would you give yourself a written recommendation?
 
What would you write?
 
Nov 25, 2020
Good trades make you money right away.
 
Use a time stop to offset risk.
 
Else, you might be too forgiving and acting like an Investment Advisor when you're trying to be a trader.
 
Fight Imposterism within yourself.
 
I made that word up - imposterism.
 
Nov 24, 2020
Bad spots in this context can mean trades that you have no business being in.
 
Been there, done that.
 
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