money management

Episode 175: Steven Cohen, SAC Capital and the Possible Return of The Honest Man

Episode 175 is a classic Traders Podcast episode… First you’ve got your host, Rob Booker, riffing on the newsworthy Steven A. Cohen and his giant hedge fund, which is now under indictment. Rob muses about whether SAC Capital cheated, and he underscores the Federal Government’s ingenious money management technique… All this naughtiness inspires Rob to ask whether there will be a “Return of The Honest Man,” and whether you’d cheat to profit financially (if you were sure of not getting caught). And as it naturally would, this train of thought leads Rob into a discussion of steroid use in Major League Baseball.

Next Rob addresses a listener e-mail from Brian about focusing on what’s important first and prioritizing your day of trading. And all of this begins with Rob and Jason coming clean about what the heck happened with the comment backlog on The Traders Podcast Web site. Thank you for listening — enjoy! Read More

Episode 63: Money Management and Determining How Large Your Profit Target Should Be

Join Rob Booker and professional coach and independent trader Scott Welsh as they discuss principles of money management, and specifically, how large (or small) your profit target should be. Scott Welsh is the co-creator of and co-instructor on The Bossilator, and he does all of his trading on a mechanical basis.

In this episode Scott shares some personal stories about his initial goal of aiming for small profit targets and how he couldn’t find a way to trade profitably with that approach. Rob and Scott also discuss how many traders pursue very high win percentages because it gives them the feeling that they’re being successful. Scott talks about how the small profit targets are extremely exhilarating on a day-to-day basis, until you lose it all in one day, which feels awful. Rob examines this universal trap that he says happens to everyone.

Scott and Rob also talk about coming to terms with the impossibility of knowing when we’re going to take a huge loss, and ultimately, they strive to wrap up this episode by telling traders how to go about finding an optimal profit target for them, regardless of whether it’s large or small. Please listen — and stay tuned at the end of this episode for a special announcement!

Scott Welsh at Bossilator.com

Special announcement link: MIAMI LIVE SEMINAR

Book recommendation: When Genius Failed: The Rise and Fall of Long-Term Capital Management by Roger Lowenstein

Episode 59: The Martingale Trifecta – aka Steel-Nad Trading

In today’s provocative episode, Rob Booker interviews Ryan Caldwell, a private, stay-at-home trader who’s been trading for five years and has a controversial outlook on money-management theories, hedging his trades when they go against him, and picking a direction in the market as if he might actually know which way the market is going to go next.

As Rob and Ryan look at the Martingale Money Management System, we have no doubt that this rousing discussion will spark the emotions and opinions of The Traders Podcast listeners, so please — by all means — leave your thoughts in the comments section of this episode! Join the fray!

Note: A Martingale trading methodology will increase the size of the trades in the midst of a losing streak. A true Martingale money management methodology will double the size of the trades every single time there’s a loss.

Rob recommends further reading:

Martingale Trade Sizing and the Gambler’s Fallacy

Using the Z Score to Determine Trade Size and Boost Performance