High Performance Trading Coach with Steve Goldstein.
How To Trade It: Trader Insight from Profitable Traders
Deep Dive
What is the biggest obstacle traders face according to Steve Goldstein?
The inability to let go is the biggest obstacle for traders. This includes moving on from bad outcomes, not letting fear of failure hold them back, and aligning their trading style with their risk profile.
Why is letting go considered a super skill in trading?
Letting go is a super skill because it allows traders to move on from bad outcomes, leverage size, take advantage of opportunities, stick to their process, and remain present. It’s a critical factor that separates successful traders from those who struggle.
How does fear of failure impact traders?
Fear of failure can prevent traders from executing their strategies effectively. It creates noise in their heads, leading to over-focus on potential negative outcomes, which compromises their ability to trade confidently and stick to their process.
What is the importance of aligning trading style with risk profile?
Aligning trading style with risk profile ensures that traders are comfortable with their strategies, reducing internal conflict and improving performance. Trading in a way that suits one’s personality and risk tolerance leads to greater consistency and success.
What example does Steve Goldstein give of a risk-averse trader succeeding?
A risk-averse trader made $100 million for his hedge fund by trading intraday in large G10 currencies, avoiding overnight risk, and stopping trading by 1 PM. His success came from aligning his trading style with his risk-averse personality.
Why do risk-tolerant traders often struggle early in their careers?
Risk-tolerant traders often struggle early because they take on too much risk too quickly, leading to significant losses or blowing their accounts. Their lack of risk management can hinder their long-term success.
What is the role of self-awareness in trading success?
Self-awareness helps traders understand their strengths, weaknesses, and risk profiles. It allows them to align their trading strategies with their personalities, leading to more effective and consistent performance.
What tool does Steve Goldstein use to assess traders' risk profiles?
Steve Goldstein uses the Risk Type Compass, a psychometric tool, to assess traders' risk profiles. It helps identify their risk tolerance and ensures they trade in alignment with their personality.
Shownotes Transcript