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

135: Sheelah Kolhatkar – How mastermind trader, Steven Cohen, bent rules and made billions  

Sheelah Kolhatkar is a writer at the The New Yorker, who was previously a journalist at Bloomberg Businessweek, and prior to that, a hedge fund analyst.

She’s also the author of New York Times bestseller, Black Edge: Inside Information, Dirty Money and the Quest to Bring Down the Most Wanted Man on Wall Street.

Of course, the most wanted man being referred to, is the ultra-wealthy hedge fund legend, Steven Cohen of S.A.C. Capital Advisors—someone who Sheelah has become very familiar with, through much of her own tireless and strenuous research…

During our conversation, Sheelah gives color to; where Steven started out in life and how he became an ultra-wealthy multi-billionaire—with, might I add, an elaborate art collection, how S.A.C. became the target of one of histories greatest insider trading investigations, and ultimately, how it all played out...

134: BTCVIX – Bitcoin—the magic internet money you can no longer ignore  

On this episode, I have a returning guest—who first appeared on episode 53. His name is a mystery, but he goes by the handle: @BTCVIX

Episode 53 was the first time I covered Bitcoin on this podcast, and that was at the very end of 2015. As you’re probably aware, the cryptocurrency markets have evolved a lot since then, so BTCVIX is here to fill us in on what’s been happening and, potentially, what lies ahead…

We also cover how to acquire various cryptocurrencies, best practises for protecting your coins, is Bitcoin in a bubble, the frenzy surrounding ICO's, and much much more.

133: James King – Using sports science to stack probability in favor of trading success  

Up until recently, James King was the Performance Director at a commodity trading firm in London, Mandara Capital. And it was here that he implemented scientific methods to stack probability in the favour of success—by using techniques he learned from his education in Applied Sports Science and Performance Psychology.

Now, James is setting out on a new venture, Project Thor, which aims to support talented retail traders with extra capital and other beneficial resources—which we discuss briefly towards the end of the episode.

But for the most part, we discuss; principals for success, testing for resilience, ensuring you’re motivated and focusing on the right things, how ‘stretch goals’ can be used to massively multiply results, routines and heaps more.

132: Mark Gardner – Still adapting after 80,000+ hours of screen time  

Mark Gardner began working in the field at 17-years old, straight out of high school. Initially he began with back office duties, before broking on the floor of the Sydney Futures Exchange (SFE). Then later he was picked up by a large Bank Bills trader to exclusively execute trades, and who he learned a great deal from.

Around 2005, Mark started trading his own book. Over the 10-years that followed, Mark had only two losing months—and to date, he’s never encountered a losing year. Though in 2015 he did suffer a substantial blow, losing months and months worth of gains in the space of just a few short hours.

Today, Mark is also a partner and the chairman of Genesis Trading (one of the larger prop firms in Australia). He’s also leading a new venture, 42Trading, as a foray into quantitative trading. And to top it off, Mark is the president of the Australian Securities Traders Association too.

Throughout this episode we speak about Mark's insane work ethic (and no, that's not exaggeration!) We also get into lessons from his past, why he sees a future in quantitative trading and more...

131: Morgan Slade – Strategy development, powered by machine learning  

Morgan’s career as a trader and portfolio manager began 20-years back, and since then he’s worked at many prominent firms and funds—to name just a few; Millburn Ridgefield, Merrill Lynch, Citadel and Allston Trading.

He’s currently the CEO of CloudQuant, a cloud-based algo development platform and fund.

During our conversation, Morgan explains why he feels as though the ‘common’ approach to strategy development can be counter intuitive, and he gives an alternative 3-step formula. We also spend time discussing how machine learning fits into a traders toolbox

130: Ben Mallah – How to own 100’s of millions of dollars of real estate  

Ben Mallah is a trader of a different kind—he doesn’t trade stocks and bonds, he trades in real estate. You could probably call him a property developer, although he doesn’t build from scratch; he buys distressed apartment buildings, hotels and shopping centers, fixes them up, and then sells to make a profit.

He grew up in one of the roughest areas of New York and had a very tough upbringing, but Ben is the true definition of a ‘rags to riches’ story…

During his early 20’s, as a side hustle while working in the military, Ben began getting into real estate. Thirty years have since passed, and in that time, he’s built up a real estate empire worth (approximately) $200,000,000.

129: Victor Haghani – Optimal bet sizing—lessons from a biased coin flip experiment  

Victor Haghani began his career at Salomon Brothers in 1984, starting out in a research role before joining their prop trading desk. In 1992, Victor left Salomon to become one of the founding partners of Long Term Capital Management…

LTCM was an incredibly successful hedge fund, up until 1998, when it failed in a spectacular fashion. Causing the Federal Reserve to step in and organize a bailout, in order to prevent the possibility of a collapse in the global financial system.

Victor took a ten year sabbatical after the dust settled, and in 2010 he founded an active index investing fund, Elm Partners.

For this episode, much of our discussion is in reference to an experiment Victor carried out (with some involvement from Edward Thorp), on the patterns of how 61 participants would bet on a biased coin.

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128: Andy Kershner – Risk tolerance, daily habits and trade critiques  

Andy has been an active stock trader since the early 90’s, and in 2001 he founded Kershner Trading Group—a proprietary trading and technology firm in Austin (Texas) and, through a partnership with SMB Capital, Kershner Trading have a second office in Midtown (Manhattan) too.

So, what did we talk about? Andy's ability to take pain on adverse positions, whether or not this has been a key ingredient to his trading success, and do traders with higher risk tolerances make more money. Andy also shares his daily habits and critiques a trade which didn't go so well from the session prior to recording this episode. And naturally, we cover a few other things too...

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127: Nell Sloane – Becoming a CTA—how to begin managing money  

Though not a trader herself, Nell Sloane has been in and around markets and exchanges for roughly 30-years, mostly working in roles that assisted commodity traders and brokers in one way or another.

Then since 2006, Nell has been the Principal of Capital Trading Group—a Chicago investment firm, which she co-founded with Patrick Lafferty. And this is the reason why I asked Nell to come on the podcast; because the role of CTG is to support traders who wish to expand their operation by managing money for others as a CTA.

CTG do also offer services to professional and individual investors to help them navigate managed futures. But for this episode, we focus on…

What does it mean to be a CTA, the incentives to become a CTA and where to begin, fee structures, the requirements and regulations, how to attract capital from investors, and other related subjects.

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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Sponsored by TradeStation.com: Very few online brokers offer the services and technology (all-in-one!) – for active traders – like TradeStation do…

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!

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