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MarketLife Ep 28 – So you want to be a trader? Here’s what you can do next.

Podcast-Cover300This week’s podcast picks up where we left off last week, and looks at how to apply the lessons and ideas to your own development as a trader. These two podcasts are targeted at developing traders, or perhaps longer-term investors who want to learn to trade more actively, but there are also lessons for the experienced trader.

We jump right in with why you can’t “figure it out”, and take off from there. Here are the show notes:

Where people look for an edge:

  • News, narrative, “outthinking”
  • Systems (bought or from chat rooms)
  • Indicators
  • Following someone else’s trades
  • Fundamental analysis
    • Long time horizon
    • Risk management can be a problem
    • Does not account for psychology?
  • Technical analysis
    • Traditional is subject, and many tools show no edge
  • Quantitative analysis
    • Finding patterns and executing according to rule set
    • Everyone is looking at same data, so difficult to find sustainable edge

So, what do we do?

  • Make sure you have what it takes (time and capital)
  • Adjust your expectations
  • Develop quantitative skills to understand an edge
    • Thinking in distributions
  • Learn to code
  • Learn everything you can about finance/psychology/the world
  • Try to see from a different perspective

Here is the reading list (which I forgot to post initially! Thank you to all who reminded me.)

If you enjoy the podcast, one of the very best things you can do for me is to leave me a review on iTunes here.

Also, if you like the music for this podcast, then be sure to check out Brian Ashley Jones, my friend, and a fantastic singer-songwriter.

Enjoy the show:

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AdamHGrimes

Adam Grimes has over two decades of experience in the industry as a trader, analyst and system developer. The author of a best-selling trading book, he has traded for his own account, for a top prop firm, and spent several years at the New York Mercantile Exchange. He focuses on the intersection of quantitative analysis and discretionary trading, and has a talent for teaching and helping traders find their own way in the market.

This Post Has 4 Comments

  1. Jan Kratky 09/10/2015

    I really like this episode but whatever I do I can not find the reading list, any hints please

    1. Adam Grimes 10/13/2015

      it’s linked in the post above now! Sorry for the confusion. And thank you for your kind words on this episode.

  2. Dale 09/15/2015

    Does your book go into more detail than the course? I watched the anti part of the course and didn’t get it.

    1. Adam Grimes 10/13/2015

      I think it takes more than watching. If you build up to it through the other units and then try to apply the ideas it may make more sense. Yes, the book covers Anti patterns and from a slightly different perspective that might be helpful.

      Thank you for your question.

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