The Sound Trader Interviews

The Sound Trader

In TheSoundTrader podcast we talk to real day traders and discuss their training, strategies and outlook on the industry. We attempt to dissolve the misconceptions of making a living from trading. Instead of taking advice from 'gurus' in online forums, or salesman with fool proof systems, listen in to learn how guys are really making money from the markets.

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  1. 22/07/2025

    Building Your Trading Edge from the Bottom Up with Michael Barrett

    Episode Summary In this revealing episode of The Sound Trader podcast, host Graham reconnects with Michael Barrett, a former professional prop trader who transitioned from active trading to designing and managing their trainee programs. Originally interviewed in 2014 during his first year as a prop trader, Michael continued his career for over a decade trading treasuries and index futures, eventually mentoring hundreds of aspiring traders. This long-term perspective provides unprecedented insights into what actually separates successful traders from those who fail. Unlike typical trading advice focused on strategies and technical analysis, Michael’s perspective comes from observing the complete lifecycle of trader development – from trainees with finite savings racing against time to become profitable, to established traders managing the complex interplay between trading performance and life responsibilities as they mature. Throughout the episode, Michael challenges conventional wisdom about trader development, explains why building edge starts long before strategy selection, and reveals the harsh realities of competing in increasingly algorithmic markets. For anyone considering a prop trading career or seeking to understand what sustainable trading success actually requires, this episode offers a rare insider’s view from someone who has lived both sides of the equation. Key Highlights Why there are no reliable characteristics that predict trading success, despite hundreds of trainees observed The edge of being young, single, and deeply curious during the establishment phase How screen time and genuine market curiosity trump most other factors in trader development Why building competitive edge must happen before strategy development, not after The cyclical nature of trading strategies and how edges come and go with market conditions How successful traders learn to “hunt” algorithmic strategies during their vulnerable moments The underestimated importance of trading floor atmosphere and community input Why most discretionary traders should avoid backtesting entirely How life changes (marriage, children) create new challenges even for established traders The current state of prop trading education and the challenge of recreating trading floor dynamics online Chapters Introduction & Background (00:00 – 03:00) Graham reintroduces Michael Barrett, last featured in 2014, who made the transition from successful trader to program designer and mentor at Star Beta. The Journey from Trader to Mentor (03:00 – 07:30) Michael explains his decade-long trading career and transition to managing experienced traders while designing trainee programs. Profile of Successful vs Unsuccessful Trainees (07:30 – 12:00) Analysis of what characteristics, if any, predict success in prop trading training programs. The Importance of Screen Time & Curiosity (12:00 – 15:30) Why genuine curiosity about market dynamics matters more than raw talent or experience. Managing Stress and Taking Strategic Breaks (15:30 – 18:30) How successful traders manage the psychological demands of constant vigilance and competition. Designing Effective Training Programs (18:30 – 25:00) The framework behind Star Beta’s trainee program and getting people trading live quickly. Building Mechanical Trading Edges (25:00 – 30:00) How prop firms create measurable advantages through fees, connectivity, and technology. The Cyclical Nature of Trading Strategies (30:00 – 35:00) Why edges come and go, and how experienced traders adapt to changing market conditions. Trading Floor vs Remote: The Community Factor (35:00 – 40:00) The underestimated impact of trading environment on decision-making and performance. Current State of Prop Training Programs (40:00 – 45:00) Why Star Beta paused their program and the challenges of scaling training online. Starting Over: Building Edge from the Bottom Up (45:00 – 50:00) Michael’s advice on competitive analysis and avoiding direct competition with better-funded players. Discretionary Trading vs Algorithmic Competition (50:00 – 55:00) How manual traders can position themselves to profit from algorithmic strategies’ vulnerable moments. Why Backtesting is Useless & Managing Wrong Trades (55:00 – 60:00) Michael’s controversial stance on backtesting and the art of managing positions when wrong. Consulting and Future Directions (60:00 – End) Michael’s current work in performance consulting and potential future developments. Quotes from the Episode “Building edge doesn’t start with strategy. Building edge comes with the things that happen before you click the mouse to put in an order.” “There’s very little in common of who is going to be a successful trainee, who’s going to become established as a successful trader. There’s not really a set of characteristics that is high probability.” “The guys who are single, hungry in their 20s, they’re the ones that set the benchmark of what’s required. And so that can be, you know, doing long hours, sleeping under the desk for days and weeks at a time.” “You don’t realize the degree to which the atmosphere of the room is an input to your decision making until it’s not there.” “Backtesting is useless. And I stand by it. Particularly if you are a manual discretionary trader, there’s very little that repeats itself in your decision making that is worth manually backtesting.” “Trading is about recognizing when someone else is f**ked and going in that direction and pushing them till they spew. That is a big skill of trading.” “The days when you will feel you do your best trading are often days when you’ve lost money, but you’ve turned a disaster into half a disaster.” “You can absolutely be predatory and you better believe that everyone else is in there being predatory. Anyone who is of a competitive mindset is attempting to be predatory.” “Do a competitive analysis. Who are your competitors in the market and what are they likely to be paying as far as their commissions, their costs, and what are their edges that they have that are unique to them?” “How do we recreate the trading floor in a digital environment? Something that we’ve asked ourselves for quite a while and there’s not a perfect solution to it as of yet.” Resources Mentioned Michael Barrett Performance Consulting – Michael’s performance consultancy [michaelbarrettau.com] Star Beta – The prop trading firm where Michael spent most his career and designed training programs Original Podcast Interview – We talked to Michael in 2014 in our first episode – Interview with a Prop Trader [pricesquawk.com/podcast-interview-with-a-prop-trader] About Our Guest Michael Barrett is a former professional prop trader and training program designer with over a decade of active trading experience at Star Beta, where he primarily traded treasuries and index futures between US and Australian markets. After establishing himself as a successful trader, Michael transitioned into mentoring and program development, ultimately designing and managing Star Beta’s trainee programs. Throughout his mentoring career, Michael observed hundreds of traders progress through the complete development cycle – from initial training through establishment as profitable traders, and eventually to the challenges of maintaining performance while managing evolving life responsibilities. This unique perspective across the entire trader lifecycle has given him insights into the factors that truly determine long-term trading success versus failure. Michael’s approach to trader development emphasizes building competitive advantages before strategy development, understanding market cycles and the temporary nature of edges, and recognizing the predatory nature of professional trading. His experience spans the transition from human-dominated to increasingly algorithmic markets, providing valuable perspective on how discretionary traders can maintain relevance. Currently, Michael provides performance consulting to traders and other high-performance professionals, helping them navigate the complex relationship between career demands and personal life evolution. He continues to manage a group of experienced traders while exploring solutions to recreate the benefits of trading floor community in digital environments. Connect With Us For more episodes of The Sound Trader podcast and to learn more about market sonification tools, visit pricesquawk.com/podcast or try out the app at app.pricesquawk.com The Sound Trader podcast explores diverse approaches to trading success, from cutting-edge audio techniques to the fundamental psychological and structural factors that determine long-term trading careers. While this episode departs from our usual focus on sensory trading tools, the insights on trader development, competitive positioning, and market psychology are universally valuable for traders using any approach. Whether you’re considering a prop trading career, currently developing your skills, or seeking to understand what sustainable trading success actually requires, The Sound Trader offers valuable perspectives from traders who have navigated every stage of the journey. The post Building Your Trading Edge from the Bottom Up with Michael Barrett appeared first on PriceSquawk.

    59 min
  2. 05/06/2025

    The Symphony of the Market with Luna Trades

    Episode Summary In this engaging episode of The Sound Trader podcast, host Graham interviews Gabrielle (@Luna_Trades_), a futures trader and YouTube live streamer who brings a unique musical perspective to day trading. With a background playing in bands and a studio full of musical instruments behind his trading setup, Luna represents the perfect intersection of music and markets. Luna reveals how he uses PriceSquawk’s audio alerts to read the tape on ES and NQ futures, filtering for large orders while listening to what he describes as the “symphony” of market close activity. Throughout the episode, he shares his custom-built Trade Timers tool that provides audio alerts for candle closes and news events, explores fascinating concepts like gamifying trading, and discusses his transparent journey of learning futures trading while live streaming daily across 22 prop firm accounts. For traders interested in innovative approaches to market analysis, Luna provides insights into how pattern recognition through multiple senses can enhance trading performance. We discuss creative ideas such as turning the DOM into a Space Invaders game and alternative musical representations of the market. Key Highlights Luna’s unique PriceSquawk setup filtering market orders by size with different voice alerts for ES and NQ futures How he describes market close activity as a “symphony” that enhances his trading awareness Development of Trade Timers tool for custom audio alerts on candle closes and news events Eight-month journey of daily live streaming while learning futures trading on YouTube Trading across 22 funded prop firm accounts and risk management strategies Musical approach to trading including ambient background sounds and BPM considerations Creative concepts for gamifying trading and using visual indicators tied to market data Listening to PriceSquawk alongside Bookmap for comprehensive order flow analysis Chapters Introduction (02:34 – 03:46) Graham introduces Luna Trades, discussing his musical instruments and background playing in bands. PriceSquawk Setup & Daily Usage (04:09 – 06:50) Luna explains his simple yet effective PriceSquawk configuration for filtering market orders and how it’s become essential to his trading. Trade Timers Tool Development (07:31 – 11:57) Discussion of Luna’s custom-built timer tool for candle closes, news alerts, and trading organization. Live Streaming Journey & Transparency (15:06 – 19:02) Luna shares insights from eight months of daily live streaming and building a trading community on YouTube. Musical Philosophy in Trading (19:17 – 22:43) Exploration of how background music, BPM, and ambient sounds affect trading performance and flow state. Advanced Audio Concepts (22:43 – 25:25) Discussion of linking market indicators to visual and audio elements, including webhooks and background color changes. Pattern Recognition & Order Flow (25:25 – 29:22) Luna explains how combining PriceSquawk audio with Bookmap visual data enhances his pattern recognition abilities. Gamification Ideas (33:53 – 40:00) Creative concepts for turning trading into games, from Candy Crush-style markets to Space Invaders DOM interfaces. Prop Firm Strategy (40:43 – 42:21) Luna’s approach to trading across 22 funded accounts and risk distribution strategies. Screen Time & Professional Development (42:21 – 45:08) Discussion of the importance of consistent market exposure and professional trading habits. Sound Design Philosophy (45:38 – 49:38) Luna’s suggestions for ambient trading sounds and the balance between alerting and soothing audio elements. The Market Symphony (49:49 – 50:48) Luna’s powerful description of listening to the “symphony” of market close activity and how it enhances his trading experience. Quotes from the Episode “I’ve gotten used to it actually sounds naked when it sounds empty when I don’t have that on. It’s not the same looking at the chart isn’t the same without that [sound].” “There’s something so special about listening to the symphony of sounds coming from my squawk… Sometimes I just listen to, I’m not in a trade and there’s something about it that is so amazing.” “All the trading is pattern recognition, right? So I think that having tools like the price squawk and the audio could definitely increase that pattern recognition.” “Sometimes I just listen to, I’m not in a trade and there’s something about it that is so amazing. And I want to show that to other traders sometimes. I’m like, you just need to listen to this. Like, have you ever just listened to the market?” Resources Mentioned Luna Trades YouTube Channel – Daily live streaming of futures trading with transparency and community focus Trade Timers – Luna’s custom tool for candle close alerts and trading timers at tradetimers.com PriceSquawk Community Patches – Luna’s ES and NQ market order configurations available in the platform Luna Trades Crypto – Secondary YouTube channel for cryptocurrency content Bookmap – Order flow visualization tool used in conjunction with PriceSquawk Multiple Prop Firms – TopStep, Apex, Tradeify, TopOne Futures, TakeProfit Trader [checkout Luna’s channel for links] About Our Guest Gabrielle (known online as Luna Trades) is a futures trader and YouTube live streamer who brings a unique musical perspective to day trading. With a background playing in bands and a studio full of musical instruments, Luna represents the intersection of music and markets. He has been live streaming his trading journey daily for eight months, building a transparent community while learning futures trading across 22 prop firm accounts. Luna has developed custom tools including Trade Timers and uses innovative approaches to combine audio, visual, and technological elements in his trading process. Connect With Us For more episodes of The Sound Trader podcast and to learn more about market sonification tools, visit pricesquawk.com/podcast or try out the app at app.pricesquawk.com Follow Luna Trades: YouTube: Luna Trades YouTube Channel YouTube: Luna Trades Crypto Twitter: @Luna_Trades_ The Sound Trader podcast explores how traders at all stages of their journey—from beginners to seasoned professionals—are using audio and other sensory tools to navigate the complex and dynamic world of financial markets. Each episode features unique perspectives on how incorporating audio signals can enhance trading performance, reduce mental fatigue, and identify market patterns that might otherwise be missed through visual analysis alone. The post The Symphony of the Market with Luna Trades appeared first on PriceSquawk.

    54 min
  3. 15/05/2025

    My Eyes Deceive Me, My Ears Never Do

    How veteran trader Jeff (@2yrflipper) leverages sound to gain an edge in fixed income markets Episode Summary In this exclusive episode of The Sound Trader podcast, host Graham interviews Jeff (@2yrflipper), one of the most experienced traders active online today, with over 27 years trading exclusively with the Trading Technologies platform, and a longtime member of the Chicago Board of Trade. Jeff reveals how audio trading techniques have been fundamental to his multi-decade success in the markets, especially for scalping in the Bond markets. Unlike many modern traders who rely primarily on visual information, Jeff has developed a sophisticated sound-based trading skillset that allows him to process market information faster and more accurately than would be possible visually. Throughout the episode, he shares specific sound alert configurations, order flow patterns, and trading techniques that have allowed him to execute up to 5 million round turns per year at his peak. For traders interested in cutting-edge sensory techniques, Jeff provides a masterclass in how audio alerts can transform market awareness and deliver a significant competitive advantage in professional trading. Key Highlights @2yrflipper reveals how sound-based trading techniques have been essential to his longevity in the markets Detailed breakdown of custom sound alert configurations for different order sizes (20+ lot, 25-49 lot, 50+ lot) in the 30-year bond How Jeff executes 1,000+ round turns per day as a professional scalper, leaning heavily on audio signals Evolution from using trading floor noise to sophisticated digital sound alerts across multiple markets Why even experienced traders should consider audio tools as visual acuity naturally diminishes with age Insights into his scalping techniques that generated up to 5 million round turns annually Concrete examples of how sound alerts provide advance warning of market moves before visual indicators Expert advice for new traders on prop trading firms, commission structures, and market selection Chapters Introduction & Trading Background (00:00 – 03:03) Graham introduces Jeff (2yrflipper), a professional trader with decades of experience who has been vocal about incorporating sound into his trading process. Trading Schedule & Lifestyle (03:03 – 09:13) Jeff discusses his current trading schedule, how it has evolved over his career, and his approach to balancing trading with family responsibilities. Origins of Using Sound in Trading (09:13 – 15:04) Jeff explains how he first began incorporating sound into his trading, starting with the roar of the trading floor and evolving to custom alerts for specific markets. Sound Alert Development (15:04 – 19:11) Discussion of how Jeff’s sound alerts evolved to include specific size levels and how he uses them to monitor markets. Sound as a Market Awareness Tool (19:11 – 25:05) Jeff describes how he can track market movements with his eyes closed just by listening to the sounds, and how this enhances his market awareness. Mentoring & Prop Trading Insights (25:05 – 29:15) Jeff shares his experience mentoring traders and his perspective on prop trading firms. Commission Considerations for Scalpers (29:15 – 35:11) Discussion of how commissions impact scalping strategies and the importance of exchange memberships for high-frequency traders. Trading Approach & Order Execution (35:11 – 44:29) Jeff explains his preference for being an aggressive rather than passive trader, and how he approaches order execution. Sound as a Reliable Market Signal (44:29 – 48:22) Jeff elaborates on why he considers sound more reliable than visual information with his famous quote “my eyes deceive me, my ears never do.” Using Sound in Various Markets (48:22 – 55:27) Discussion of how Jeff applies sound techniques to different markets including gold, bonds, and other commodities. Advice for New Traders (55:27 – 59:07) Jeff offers valuable guidance for traders starting their journey, emphasizing focus on one market at a time and understanding personal trading patterns. Closing Thoughts & Contact Information (59:07 – 01:01:02) Jeff shares how traders can connect with him through TradeFundrr or his Discord server. Quotes from the Episode “I’ve said this multiple times, like, you know, my eyes deceive me, my ears never do. If I hear something, I know it’s for fact, that it went through the market.” “If you say, close your eyes and you can only listen to sounds for the next 10 minutes, 10 minutes from now, I’ll be able to tell you right about exactly what we’re trading just by listening to sound.” “I know there’s seven more 25 lots coming, eight more 25 lots coming. I’m going to catch time on this and I’m gonna flip this quick. And why was it? Because it’s sound. The sound alerted me to that.” “Your eyes can’t look at all of those markets at one time. It’s impossible. You know, I could group three Euro dollars together, I could group three Fed funds together. But at the same time, your eyes don’t see everything. So I just started messing around with sounds.” “At my peak year, I probably did five million round turns. I’m probably in the one to two-ish million a year now. If I’m scalping 20 lots, I’m probably about 1,000 round turns on the day, give or take.” “Well, sounds tell you different things. It gives you different information. But the orders that clip the book give you a significant picture, know, it paints a significant picture.” “As you get older, as I am, look, my eyesight’s not as sharp as it was. I’m not as alert as I was 10 years ago. I’m not on top of my game like I was 15 years ago. So I need to help create any edge I can get. And sound.. I can always hear everything.” “Think outside the box that there are other markets you can make money in that aren’t as volatile as ES and NQ.” “..talking about sound. I don’t think enough people really use it. .. It’s a tool. It’s a tool for every trader. I think it’s a very important tool.” Resources Mentioned TradeFundrr – Prop trading firm Jeff partners with. 2yrflippers affiliate link: [tradefundrr.com] TT Platform (Trading Technologies) – Platform Jeff has used for over 27 years with sound capabilities About Our Guest Jeff (known online as @2yrflipper) is a professional trader and member of the Chicago Board of Trade with over 27 years of experience trading using the TT platform. He specializes in trading fixed income markets and has developed sophisticated techniques for incorporating sound into his trading process. Jeff began his career on the trading floor and has evolved his approach through various market environments. He currently trades and mentors traders through his affiliation with TradeFundrr and his private Discord server. Connect With Us For more episodes of The Sound Trader podcast and to learn more about market sonification tools, visit pricesquawk.com/podcast or try out the app at app.pricesquawk.com The Sound Trader podcast explores how traders at all stages of their journey—from beginners to seasoned professionals—are using audio and other sensory tools to navigate the complex and dynamic world of financial markets. Each episode features unique perspectives on how incorporating audio signals can enhance trading performance, reduce mental fatigue, and identify market patterns that might otherwise be missed through visual analysis alone. The post My Eyes Deceive Me, My Ears Never Do appeared first on PriceSquawk.

    1 h 5 min
  4. 10/03/2025

    I Won’t Place a Full Size Trade Without Audio Support

    How futures trader Bryan Yeung uses audio to enhance his market awareness and reduce trading fatigue Episode Summary In this episode of The Sound Trader podcast, host Graham interviews Bryan Yeung, a futures trader with approximately 18 months of experience who has developed his strategy, and trades live with the group at TradePro Academy. Bryan shares how incorporating audio tools into his trading workflow has transformed his market awareness, reduced fatigue, and given him a competitive edge. He explains how hearing market activity through PriceSquawk’s audio feed helps him identify crucial moments for trade entries and exits, particularly when trading within auction market theory frameworks. Key Highlights Bryan combines auction market theory for big-picture analysis with order flow for trade entries Audio cues help identify exhaustion patterns and momentum shifts that might be missed visually Using stereo sound separation allows for better recognition of buying vs selling pressure Audio trading reduces mental fatigue during longer trading sessions Market replay with audio components provides powerful post-session analysis opportunities Chapters Introduction & Trading Background (00:00 – 02:09) Graham introduces Bryan Yeung, a futures trader from the San Francisco area who has been trading for about 18 months. Trading Approach & Setup (02:09 – 05:03) Bryan explains his approach combining auction market theory with order flow, and describes his four-monitor setup using Sierra Charts. Discovering Audio Trading (05:03 – 10:09) Bryan’s journey from options to futures trading, and how he transitioned to incorporating audio tools. Introducing Audio to Trading Groups (10:09 – 13:15) Bryan shares his experience streaming audio feeds to his trading group and their mixed reactions. Key Audio Components & Patterns (13:15 – 17:10) Discussion of how pitch, volume, and tempo create meaningful audio patterns that signal trading opportunities. Trading Patterns Identified Through Sound (17:10 – 19:12) Bryan explains specific trading patterns he can identify through audio, like exhaustion and reversal signals. Impact on Trading Performance & Fatigue (19:12 – 21:44) How audio has allowed Bryan to maintain focus longer and reduce the mental fatigue of watching numbers. Training New Traders to Listen (21:44 – 24:48) Recommendations for introducing audio to new traders, starting with simple bid-ask separation. Specific Sound Effects & Custom Settings (24:48 – 35:24) Discussion of percussion sounds vs. voice patterns and the importance of customization. Using Audio in Market Replay (35:24 – 38:14) How Bryan uses audio tools in market replay for post-session analysis. Audio Settings & Sharing Features (38:14 – 41:26) Discussion of upcoming features to share custom audio configurations. The Audible Co-Pilot Vision (41:26 – 50:40) Bryan and Graham discuss the concept of audio as a trading co-pilot and integration opportunities. Personal Trading Experience & Conclusion (50:40 – 53:58) Bryan shares a recent trading moment where audio gave him an edge, and offers final advice. Quotes from the Episode “I will rarely have ever placed a full size trade without audio support. It’s just actually to me.. not worth the risk.” “Overall it reduces the fatigue I have. I don’t necessarily trade longer. But let’s say if I’m spending an hour and I have a virtual mental gas tank, it’s much less tapped out at the end of that session.” “When you listen to things, there’s a little bit more of a staying power memory of what you heard. And that certainly helped out this morning.” Resources Mentioned TradePro Academy – Bryan participates in their Live Trading room [tradeproacademy.com/] PriceSquawk App – Audio trading tool [app.pricesquawk.com] Sierra Chart – Trading platform with audio integration Jigsaw Trading – Trading platform with replay features Bookmap – Previous platform with audio module About Our Guest Bryan Yeung is a futures trader based near San Francisco who has been trading for approximately 18 months. He currently trades with the community at TradePro Academy, focusing primarily on NQ futures. Bryan combines auction market theory for big picture analysis with order flow for entries and exits. Connect With Us For more episodes of The Sound Trader podcast and to learn more about market sonification tools, visit pricesquawk.com/podcast. The Sound Trader podcast explores how traders at all stages of their journey—from beginners to seasoned professionals—are using audio and other sensory tools to navigate the complex and dynamic world of financial markets. Each episode features unique perspectives on how incorporating audio signals can enhance trading performance, reduce mental fatigue, and identify market patterns that might otherwise be missed through visual analysis alone. Whether you’re just starting out or have been trading for decades, The Sound Trader offers valuable insights into how adding the dimension of sound might transform your trading experience. The post I Won’t Place a Full Size Trade Without Audio Support appeared first on PriceSquawk.

    54 min
  5. 12/10/2023

    Revisiting Interview with a Prop Trader

    In future posts we will be hearing from Michael Barrett who continued long into his Prop Trading career, winding up as head mentor for new traders at a major prop firm in Sydney, alongside a profitable trading career of nearly a decade. Before we go there, here are takeaways from the original interview we did with Michael, focused on his trading development during his first year as a professional prop trader. It is worth noting that spread trading was the main strategy of this particular prop firm at the time, however they have recently shifted to other markets and strategies, of which we hope to hear more about in a future discussion with Michael. Trader Development Training Process: The training at the proprietary trading firm is systematic, starting with online courses, followed by drilling sessions and strategy development. Trainees are required to participate actively and maintain a consistent schedule, showcasing their commitment and discipline. Importance of Logistics and Personal Circumstances: The interview process emphasizes the importance of the trader’s personal circumstances, ensuring that they have the financial stability to sustain during the initial period where there is no salary. Trading Strategies – Fading and Relative Value: Fading, initially uncomfortable for the trader, became a core part of his strategy. Understanding relative value, which involves comparing different markets and identifying which ones are cheap or expensive, also became crucial in decision-making. Office Environment and Emotional Experience: The trading office is vibrant, with a diverse age group of traders. Emotions play a significant role in the trading environment, contradicting the stereotype that traders should remain entirely unemotional or detached. The emotional intensity in the trading office can resemble that of a sporting arena, reflecting the high-pressure nature of the job. Trading Focus: Most traders in the firm focus on trading derivatives of treasury products, and spreading (trading two related securities) is a common strategy, particularly between Australian and U.S. markets. Trading Desk Setup Office: The trading desk setup involves long rows of desks with multiple monitors showing different applications like trading software, charting software, and news feeds. Financial news channels like CNN or Bloomberg play continuously. The office environment is designed to be stimulating with memorabilia from past trading days. Charts: A trader might have a monitor showing charts shared among six colleagues. This requires collaboration and discipline as only one person can manipulate the charts at a time. Consistent Charts: Trading decisions are ideally pre-planned, and on-the-fly decisions during market action can be risky. Keeping a consistent chart view is crucial as frequent changes can disorient a trader. Strategy Spreads: Traders might have opposing positions in the same office, but they probably don’t know about each other’s positions. On Outrights: Outright views on market movement can be expressed by dynamically entering and exiting spreads. This offers more opportunities than just holding a static position, especially given market volatility. Spreading: Spread trading is preferred over outright trading because it provides tighter control and efficiency. If a market position is moving in the trader’s favor, they might enter a spread during a rebound rather than reversing the outright position. Value: Trades are triggered primarily by the spread rather than specific price action details. If a spread is right, traders are trained to enter and then manage their trades. Size: As for trading size, new traders might start with a cap, but as they demonstrate consistency, their maximum size increases. Some experienced traders might trade with hundreds of contracts, but the size depends on the market session and the risk associated with the trade. Risk and Reviews Reviewing Trades: Regularly reviewing your trades is essential for success, but it shouldn’t be done too often to avoid over-adjusting strategies based on short-term market behavior. Risk Management: Risk monitoring departments mainly intervene when traders are not adhering to set size limits. They don’t generally interfere with strategy alterations. Trading Strategy Reviews: After trading sessions, traders are encouraged but not mandated to reflect on their decisions. They are asked general questions to stimulate introspection rather than detailed technical analysis. Flexibility: Rigid rule-following can be counterproductive. While having a core philosophy is vital, being adaptable to market changes is equally crucial. This adaptability can be more effective than strict algorithms or rules. Trading is a Skill: Trading can be learned, but individual backgrounds can influence the learning curve. Some might pick up faster due to their past experiences, while others might have to unlearn certain beliefs. Challenges: Trading is not an effortless task. Often, the most profitable trades are challenging to enter. Traders are paid to take on risks and deal with discomfort. Continuous Learning: Even experienced traders continually learn and encounter new challenges. Discovering and rectifying unhelpful beliefs can lead to better performance. Market Predictions: While traders always speculate on potential market movements, including major shifts or crashes, markets tend to be resilient over time. About Michael Michael has 10 years experience trading Bond and Equity Index futures as a Proprietary Trader. Since 2018, alongside trading, Michael has nurtured and mentored numerous aspiring traders into successful and established traders. He designed and implemented the trainee program for Star Beta Australia, a Proprietary Trading firm in Sydney, and currently manages a group of their experienced traders. The post Revisiting Interview with a Prop Trader appeared first on PriceSquawk.

    1 h 2 min

Descrizione

In TheSoundTrader podcast we talk to real day traders and discuss their training, strategies and outlook on the industry. We attempt to dissolve the misconceptions of making a living from trading. Instead of taking advice from 'gurus' in online forums, or salesman with fool proof systems, listen in to learn how guys are really making money from the markets.