Chat With Traders | Weekly interviews with profita

Chat With Traders | Weekly interviews with profita

Norway

If I was to say trading is a tough game to win, would you agree with me? Well I understand first hand exactly how tough it can be. And I also understand that if you truly want to master anything in life you need to absorb many powerful lessons from the greats. Through the Chat With Traders podcast I am making it my mission to give you direct access to these hard-hitting lessons. I am on a journey to becoming a super-trader and I want you to come with me, so subscribe now and never miss another episode. All show notes, resources, and links can be found at: chatwithtraders.com || Follow me on Twitter: @chatwithtraders

Episodes

126: Jonathan (@HF_Trader) – The demeanor of an unstoppable futures trader  

Jonathan (@HF_Trader) got into trading after a sports-related injury changed his life trajectory. He was fortunate enough to meet and be mentored, early on, by one of the first people to be hired at Steve Cohen’s S.A.C. Capital Advisors—where this person ran a multi-billion dollar statistical arbitrage fund.

After getting a dual degree in economics and quantitative finance, Jonathan landed a job within a hedge fund and was promoted to head trader within the space of about 6-months. Over the course of several years, while Jonathan worked at the fund, their assets under management grew by several billion dollars.

In 2014, Jonathan cashed out and began trading for himself. He loaded $260,000 into an account and has since compounded this amount into more than $2,000,000. Using an intraday system he’s developed, Jonathan trades Crude Oil and E-Mini S&P 500…

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125: Matthew Hoyle – Getting hired—who trading firms and hedge funds are seeking out  

Matthew Hoyle was once a trader, or more specifically, an options market maker. And he started at a very young age, on the exchange floor in Amsterdam. But since 2003, he’s been in the headhunting (or recruiting) business. His firm, Matthew Hoyle Financial Markets.

Essentially, Matthew finds the best candidates for hard to fill roles. He’s contracted by banks, hedge funds and all sorts of trading firms—for example; Tibra, Optiver, Tower Research, Citadel, Millennium Partners, amongst many others.

Matthew’s deeply knowledgeable on the industry, and he’s won many awards for doing what he does…

During this episode we get talking about; tips for getting hired, the skills which are most in demand, what firms are looking for, also, how firms attempt to attract and retain talent, various compensation structures – and everything in between!

124: Max (@Madazfootballr) – When chasing a quick buck becomes making a quick buck  

Max got into trading about six years ago, after a co-worker pulled up in a brand new Lotus Elise—paid for with gains from trading BP stock. Working as an engineer at the time, with average pay, it wasn’t long before Max opened his first trading account and got to work…

Having now developed a unique style of his own, which he describes as a scalping method—focusing on NASDAQ listed stocks, Max has become very consistent and profitable. (If you’re interested, max regularly posts PnL on his Twitter account.)

To mention a few of the things we discussed; how traders can benefit from being independent thinkers, the nature of scalping strategies, optimizing your workflow, mindset and improving your psychological game, and plenty more.

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123: Darren Reed – Grit, hustle, intent—and environment  

Darren Reed (@LiftTheOffer) has been a stock broker, the head trader at a $300M hedge fund, and an active prop trader at Australian firms, Propex, Aliom and Gensis. At the later two, he also mentored traders as part of his role in trader development.

But this year (2017), Darren has returned to Perth—on the west coast of Australia, to establish a new proprietary trading firm with a few partners; Cygnet Trading.

The main focus of this episode can be summarized with just a few words; grit, hustle and intent. Further, Darren speaks about paying your dues, why environment is everything, and a window into the life of a discretionary prop trader.

122: Doug Cifu – Virtu. Hitting singles all day long—on a global scale  

Doug Cifu is the co-founder and CEO of Virtu Financial, one of the largest electronic market making firms in the world. Around the clock, Virtu are trading in 12,000 instruments, across 235 markets and 36 countries, with only 140 staff.

Virtu often trade more than 4.5 million times a day, and prior to their IPO in 2015, Virtu reported the firm had made a profit 1,277 out of 1,278 days—losing money just one day between 2009 and 2014.

And in recent news, Virtu made headlines 20th April (2017), after announcing their acquisition of rival, Knight Capital Group for $1.4 billion.

Doug is also the co-owner of NHL team, Florida Panthers—with the second owner, being none other than his Virtu co-founder, Vincent Viola.

121: Michael Mauboussin – Tactics for better decision making, and skill versus luck  

Michael Mauboussin is a Managing Director and Head of Global Financial Strategies at Credit Suisse. He’s also a professor of finance at Columbia Business School, and the author of several books, such as; The Success Equation and More Than You Know.

Michael is widely-recognized as a thought leader on the subject of decision making, as well as thinking about things in the way of process over outcome, and skill vs luck.

And it’s these three things which are the over-arching theme of this episode. So hopefully, you’ll pick up a few good tips from Michael, that will help to improve your ability of making better decisions (and creating better processes) as a trader.

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120: Mebane Faber – A crash course in long-term investing—for short-term traders  

Mebane Faber is the founder and CIO at Cambria Investment Management, where he manages Cambria’s ETFs, separate accounts and private investment funds. He’s also authored numerous white papers and five books now, on various investing subjects. Meb’s a budding podcaster too, his podcast; The Meb Faber Show.

The main reason why I asked Meb to join me for this episode, was to share some simple ways that active traders can capitalize on the opportunity and compounding effect that (somewhat passive) longer-term investing has to offer.

So, I ask Meb about; where to start out, how to set expectations, various types of portfolios, when to enter the market, what to do during drawdown, what things new investors struggle with most, so on and so forth…

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119: Alex (@TAGRtrades) – What this day trader learned after four years of abandoning a secure job  

Alex (@TAGRtrades) is a 27-year old day trader, from Texas. He’s been trading full-time for four years, and has really begun to hit his stride. Alex closed Q1 of 2017 with a $49,000 gain, after going into the year with an account balance of $32,000.

He’s a small-cap momentum trader, but unlike most guests who I’ve had on previously that play in this space, Alex takes the majority of his trades on the long side. So naturally, we chat about his reasons for this…

We also chat about; the leap into full-time trading, key lessons Alex learned in the early stages of his development, how he manages trades, and why journaling has been immensely helpful.

118: Manoj Narang – Trading technology, alternative data, and originality  

High-speed trading veteran, Manoj Narang, originally worked on Wall St for the likes of Credit Suisse and Goldman Sachs prior to founding Tradeworx, which became one of the larger trading firms in the U.S. (in terms of volume).

He’s since parted ways with Tradeworx to start MANA Partners—an innovative quant fund which raised almost one billion dollars for it’s launch in January this year (2017).

As a brief summary for some of the things we got to chat about; the value of technology which drives some trading operations, capitalizing on the explosion of data, plus why aspiring traders should be willing to buck the trend and think freely.

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117: Larry Alintoff – Traders' opportunity—when things that "should" happen, don't happen  

Larry Alintoff was a prop trader for Paul Tudor Jones, before running the largest group of traders on the AMEX (at the time). When he later went over to the NYBOT, Larry became the largest trader in the Frozen Concentrated Orange Juice pit, and now days, he’s CIO of The Toro Fund.

During this episode, we cover; the thing which helped Larry to become consistent, why there’s great opportunity in knowing when things that “should” happen, don’t happen, and how he’s been able to successfully apply a similar trading style from the floor to the screens. Plus, how a market obsession has carried him this far…

116: Sean Hendelman – Taking losses, ultimately winning, and keeping pace with markets  

Sean Hendelman is the co-founder and CEO of T3 Companies.

T3 is one of the larger proprietary trading firms in the U.S. And incase you’re curious, the three T’s of T3 stand for; trading, training and technology.

A few of the things Sean and I spoke about, include; how he got his start, how he lost all his money twice—and why it was a worthwhile experience (in hindsight), and some of the great lessons he’s learned from the business of trading.

Even as CEO today, Sean is still very hands on with T3’s automated trading, so we also had an interesting conversation around this—some of his comments and views may actually surprise you. And hand traders, need not feel neglected, because there’s something in this for you to!

115: Adam Grimes – What hand traders can learn from system traders, and vice versa  

Adam Grimes has been a trader for more than 20-years, he’s traded all major asset classes, across various timeframes. He’s traded independently, with a prop firm, and he’s run other trading businesses also.

The main focus of this episode is to explore some of the things which discretionary traders can adapt from quantitative traders, and vice versa—meaning, what things can quants take from those who rely on discretion.

Then in the later part of this episode, Adam lays out a solid framework which can help struggling traders to move forward. As well as, the types of questions you should ask when you don’t know what you don’t know.

114: Brannigan Barrett – The process of becoming a bigger (and better) trader  

Brannigan Barrett is a futures day trader—who trades a total of eight markets, across; bonds, equity indices, currencies and commodities. He was previously a trader at prop firm, Futex, but is now part of Axia Futures.

The subjects we cover during this conversation, include; how to progressively become a bigger (and better) trader, how a “dogfight” attitude has helped Brannigan’s trading career, how he prepares going into major news announcements, his daily process for journaling and being ready for “one good trade.” Plus, how to think about and achieve your trading goals.

113: Benjamin Small – Normalizing Bitcoin, and exploring the cryptocurrency ecosystem  

Benjamin Small is an electrical engineering PhD. He’s worked in quantitative research roles since 2006, at UBS, Citadel, Credit Suisse and the stock exchange, IEX.

Today though, Ben is head of market structure at Gemini—the world’s first fully licensed and fully regulated Bitcoin exchange, which is based in New York.

During this chat, we get into; payment for order flow and high frequency trading, why there’s an incentive to normalize Bitcoin, the cryptocurrency ecosystem, potential outcomes for the future of Bitcoin, and becoming a cashless society.

112: Jorge Soltero – Reminiscences of a trader at Hull Trading Co.—and a sell-side career  

Jorge Soltero began as a floor trader in Chicago, where he was an options market maker. A few years into his career, he landed a position at Hull Trading Company (the renowned firm of legendary trader, Blair Hull).

After Hull Trading was bought by Goldman Sachs in 1999, Jorge became more of an institutional trader—not only working at Goldman, but later, UBS and Merrill Lynch too, where he specialized in options and ETFs.

Listening to this episode you’re going to hear about; the culture of trading pits, exactly what it was like to be a trader at Hull Trading Co., the transition to electronic trading, what makes ETFs an attractive product, and more…

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111: David Bush – Strategy objectives, statistical significance, and market behavior  

Returning to Chat With Traders for a second time is David Bush—first on episode 23.

David began as a discretionary trader, more than 20-years ago, but over time he’s developed into a quant trader. And he’s exceptionally good at what he does; David’s been the first place winner of two (real money) trading competitions in recent years.

Last time David was on we spoke fairly extensively about his path as a trader and a high-level overview of his process. This time around we covered plenty of new ground—exploring David’s process in greater depth. Also, I particularly liked David’s comments towards the end about, “Intensity, not time.”

110: George (@RollyTrader) – Learning to trade, momentum setups, and becoming a venture capitalist  

On this episode, I’m joined by George—who goes by @RollyTrader on Twitter.

George is an Australian equities trader, with a momentum/swing trading type of approach. In the past, George has held a few finance-related positions, but since late-2009 he’s mostly traded independently.

During the interview, George and I got speaking about; lessons he learned early on, the effect that coaching and mentoring has had on his trading, specifics about the setups George trades, and also, his involvement with venture capital.

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109: Edward Thorp – The man who beat the dealer, and later, beat the market  

I’m not sure how to best say this, but Edward Thorp, is kind of a big deal…

Not only in the world of financial markets, but he’s also a household name amongst the gambling scene. He’s the man who beat the dealer, and later, beat the market.

It was during the late-50’s and early-60’s, when Ed, a math genius and professor at MIT, took on the challenge of discovering a way to get an edge playing gambling games such as blackjack, roulette and baccarat. Long story short; Ed won—and he’s now considered the father of card counting.

From there, the next obvious move for Ed was to take on financial markets—which he also did with a great degree of success. His first hedge fund, Princeton Newport Partners, achieved an annualized return of 19.1% (before fees) over a 19-year period, with 227 of 230 months being profitable—the worst monthly loss being less than 1%.

Ed’s most recent book, A Man For All Markets, is now available on Amazon.

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Q6: Delaney Mackenzie – Your Quantitative Trading Questions Answered  

Throughout this series, which has been a window into the workflow of professional quant trading firms, we’ve encouraged you to submit questions and requests for further clarification. So, in this episode, being the final installment, Delaney answers as many of these questions as possible (within 80-mins).

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108: John Netto – Being a versatile and adaptable trader, while testing your comfort zone  

John Netto, a former U.S. marine, describes himself as a high velocity, cross-asset class trader. He connects the ability to be versatile, adaptable, and interpret large amounts of information to be his greatest edge—for making lucrative returns.

These are all things we cover during the interview, which includes discussion about; process, research, strategy, macro, and market regimes. We also talk about the benefits of stepping outside of your comfort zone, why there’s a need to embrace growing pains, and when emotion can be an ally.

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