cover of episode 290 · Mark Ritchie II - Price-Action, Swing Trading Equities from the Long Side

290 · Mark Ritchie II - Price-Action, Swing Trading Equities from the Long Side

2024/10/24
logo of podcast Chat With Traders

Chat With Traders

AI Deep Dive AI Insights AI Chapters Transcript
People
I
Ian Cox
M
Mark Ritchie II
T
Tessa
Topics
Ian Cox: 成功的关键在于长期坚持良好的交易计划,而不是单次交易的输赢。 Mark Ritchie II: 他童年时期对市场的兴趣并不浓厚,主要受其父亲(一位交易员)的影响是间接的,更多的是通过游戏培养了概率思维能力。他真正对市场产生兴趣是在工作中,并非一开始就对交易充满热情。早期交易错误的教训:强调风险管理的重要性,以及实际交易比纸上交易更能帮助理解风险。建议新手用少量真金白银进行交易,以获得真实的市场体验和感受。建议交易者从小额交易开始,逐步增加交易规模,建立信心和优势。纸上交易无法模拟真实的交易情绪,而情绪在交易中至关重要。他的主要交易策略是基于长期价格走势和基本面分析的股票多头 swing trading。他主要关注价格和成交量,而非传统的技术指标。一个糟糕的计划总比没有计划好,坚持执行一个糟糕的计划也比一个好计划却不去执行要好。交易中长期计划的重要性,胜负取决于长期策略的有效性,而非单次交易的结果。低风险入场点:选择长期处于上涨趋势中的股票,并在价格出现紧密盘整或枢轴点时入场。止损点设置:基于可接受的风险水平(通常不超过8%-10%),以及技术图表上的支撑位和阻力位。止损后,需要重新评估股票,制定再入场计划,而不是盲目追回。多年交易经验总结:在不同市场环境下的表现,以及应对不同市场波动的方法。他认为即使在机器交易盛行的时代,个人交易者仍然有巨大的机会。 Tessa: 交易中持续学习的重要性,尤其是在交易不顺的时候。

Deep Dive

Key Insights

WHY did Mark Ritchie II become a trader?

Mark's path to trading was indirect. He initially pursued nonprofit work but transitioned to the financial world out of necessity when his previous career path reached its limit and he needed to provide for his growing family. His interest in markets developed gradually through work experience with a family associate, where he was exposed to the dynamics of trading and the challenge of finding consistent profits.

WHY does Mark Ritchie II emphasize real money trading over paper trading?

Mark believes paper trading is a mistake because it omits the crucial emotional component of trading. He argues that experiencing the emotional impact of real losses, even small ones, is essential for developing discipline and learning effective risk management. He recommends starting with small amounts of real money to understand the psychological pressures of trading.

WHY does Mark Ritchie II focus on swing trading equities from the long side?

Mark primarily swing trades equities from the long side because he believes it offers a superior risk-reward profile. His process involves manually screening 600-1000 stocks daily, narrowing them down to watchlists based on criteria learned from his mentor, Mark Minervini. These criteria are rooted in timeless principles derived from the historical performance of winning stocks.

WHY doesn't Mark Ritchie II use technical indicators?

Mark doesn't use traditional technical indicators like stochastics, RSIs, or MACDs. He finds price and volume sufficient for his analysis. While he doesn't disparage those who use indicators, he hasn't found them helpful in his approach, which focuses on identifying stocks in long-term uptrends and spotting low-risk entry points based on price action.

WHY does Mark Ritchie II say "a bad plan is better than no plan"?

Mark believes any plan, even a flawed one, provides structure and discipline. He uses the analogy of chess, where a player with a simple strategy consistently applied will likely outperform someone making random moves. A bad plan, in his view, is one lacking risk management, sizing strategy, or exit plans. He emphasizes the importance of having a repeatable process, especially in today's information-saturated market.

How does Mark Ritchie II define a low-risk entry?

A low-risk entry for Mark involves a stock in a long-term uptrend, confirmed by weekly charts and the 200-day moving average. He looks for tight consolidations or pivot points that allow him to quickly determine if his assessment is correct, prioritizing capital efficiency. He avoids bottom fishing and emphasizes the importance of price confirming the fundamental story.

How does Mark Ritchie II manage exits?

Mark manages risk by setting stop-loss orders based on an acceptable risk point, typically a percentage between mid-single digits to a maximum of 8-10%, with a long-term average under 5%. Profit targets are determined by a multiple of his average loss, aiming for gains exceeding his average loss. He also considers technical factors like short-term extension and overall market conditions.

How has Mark Ritchie II performed throughout different market regimes?

Mark has achieved good long-term performance, with periods of aggressive trading and periods of inactivity. His process allows him to raise cash ahead of major declines, mitigating losses during bear markets. He finds choppy markets or periods of high volatility most challenging. His best performance typically comes after corrections and bear markets.

Chapters
The episode starts with a discussion on the importance of learning from trading experiences, especially during setbacks. The host introduces Mark Ritchie II, a swing trader known for his success and unique approach.
  • Importance of consistent learning in trading
  • Introduction of Mark Ritchie II and his background

Shownotes Transcript

Mark Ritchie II shares insights from his trading journey, shaped by disciplined risk management and a strong focus on price action and fundamentals. Growing up with a renowned trader father, Mark’s passion for trading developed later in life through hands-on experience. He prioritizes finding stocks in long-term uptrends, identifying low-risk entries, and refining his edge over time. Emphasizing the importance of controlling emotions, Mark advocates starting small, scaling up only when confident in a strategy’s effectiveness. His trading approach adapts to varying market conditions, using timeless principles to maintain capital efficiency and manage risk, helping him navigate both bull and bear markets successfully.

About Mark Ritchie II:

Mark Ritchie II is a swing and growth trader, investor, and manager. He leads RTM Capital Advisors as a Managing Partner and CIO, a company that manages investments in U.S. stocks. He became well-known for winning Mark Minervini’s Triple Digit stock challenge in 2010 by making over triple digit returns in under six months. Between 2010 and 2014, he grew his managed funds tenfold, consistently compounding his portfolio year after year. This impressive traction earned him a feature in Mark Minervini’s Momentum Masters roundtable interview.

Learn more about your ad choices. Visit megaphone.fm/adchoices)