Fascinating Conversations with People From the World of Financial Markets. In this series, we delve into the lives and stories of extraordinary guests whose experiences give us a fresh and powerful lens through which to understand the mental, emotional, psychological and behavioural challenges people face when encountering risk and uncertainty in financial markets.Market veterans Steven Goldstein and Mark Randall speak to people from a range of backgrounds, including experienced and veteran traders and investment professionals, analysts, psychologists, coaches, authors and experts in fields related to trading, financial markets and risk. Through these powerful, informative and insightful conversations, they seek to help people develop, cultivate and grow optimal mindsets for better performance and more effective and productive behaviour when engaged in risk taking activities.
Brent Donnelly: Alpha Trader - The Mindset, Methodology and Mathematics of Professional Trading
Brent Donnelly has been in and around trading for close to 3 decades and has held major trading roles at investment banks and hedge funds with a strong emphasis on the FX and Global Macro, where he has been involved in both market-making and proprietary roles.
Brent started trading in 1995 and has worked at several illustrious firms in the markets, including Citibank, Merrill Lynch, Royal bank of Canada, Lehman Brothers, Graham Capital, Nomura Bank and HSBC.
Since 2004 Brent has been writing a brilliant free daily newsletter on the markets called AM/FX – This newsletter is read widely by professional traders across the world inside Investment banks, Hedge Funds, Asset Management Firms, and Even Central banks. Brent has also authored two books: The Art of Currency Trading and his most recent book, Alpha Trader: The Mindset, Methodology and Mathematics of Professional Trading.
In this interview Brent tells us about AlphaTrader and talks extensively about trading, markets and what he believes it takes to be a successful trader.
This interview pulls back the curtain somewhat on what it’s like to be a professional trader, and some of the challenges pro-traders face as they seek to battle the markets within a high pressured trading room environment.
You can find out more about Brent on his personal website: http://brentdonnelly.comAlso visit Brent’s new venture Spectra Markets, where you can sign up for his free AM/FX Newsletter: https://www.spectramarkets.comYou also follow Brent on Twitter at https://twitter.com/donnelly_brent
Dr Van Tharp: Avoiding a Victim Mentality in Trading.
Narrative for Website
In this episode we spoke with legendary trading psychologist Dr Van K Tharp. Dr Tharp has been coaching traders for almost 4 decades and came to prominence when he was featured in Jack Schwager’s very first Market Wizard’s book back in 1989. As you can imagine, with someone with that level of experience and knowledge, this chat goes beneath the surface of trading and into the inner realms of human performance, touching on areas of 'who we are', 'how we are', and 'how we be’, that are rarely discussed with such depth when talking about trading.
Some of the themes we would like to emphasise include
Ø Our different modalities when engaged in trading, these include a hierarchy of different states.
· Things happen to me. > Becoming the Victim – Owned and liable to go into tilt.
· Things happen by me > Becoming a Non-Victim – Starting to Own Your Results.
· Things happen through me. > Awakening and Becoming at One with the Market
· Being at One with the Market > May fleetingly or periodically be here but it’s impossible to remain here permanently.
Ø Science Thinking versus System Thinking:
Science thinking believes we can identify causation, and then use that to identify possible futures. Systems thinking accepts the complexity and uncertainty of the world and holds a light view of possible causation and holds the polarity of trying to identify possible futures, whilst accepting one cannot possibly identify with any high degree of certainty the possible future.
Ø Alignments between you and your system, method, or approach.
The importance of matching approaches to the market, with who and how you are naturally.
Ø How we hold beliefs about ourselves and how they influence our trading and how our negative emotions hold those beliefs into place.
Ø How we store negative beliefs in our body which then drive our decision-making behaviours.
Ø How these aspect conspire to put someone into victim mode.
Ø Modelling People who do trading well and the key ingredients needed to being able to model these, including being able to align yourself with their Signal, Feeling, Action sequence.
You can find out more about Dr Van Tharp and his work at the Van Tharp Institute at https://www.vantharp.com
Access to his YouTube channel can be found here: https://www.youtube.com/c/vantharp
His Twitter handle is: https://twitter.com/vantharp
3 Key Guiding Principles for Trading, Business and Life.
In this episode Steven and Mark focus on what they consider as three key guiding principles which are vital for success in business, in life, and of course in trading and financial markets.
These key guiding principles provide a solid foundation for a robust trading practice but are equally as applicable in other areas of work and life.
This episode provides a deep exploration into these principles and looks at these key aspects and how they apply to traders in their work in a big picture sense and at a micro level day-in, day-out.
Steve Ward & Simon Coterill: The Power of Trader Journaling.
Journaling is one of the most useful activities a trader can engage in to help them become better traders, power their development, and help them refine their trading practice. However, it is also one of those activities that people think is a great idea but is something they think they’ll do another day, or they do a half-hearted effort. The exceptions are usually ‘exceptional people’. People who are willing to go that extra mile, put in the hard yards, take the time to learn about themselves and reflect on their trading.
Our guests today are Steve Ward and Simon Cotterill. Together they have conceived, constructed, and published an outstanding new book/journal called the ‘Trader’s Mind Journal’.
Steve Ward will be familiar to AlphaMind listeners and traders more widely. Steven has worked in the field of High Performance over many decades, he worked with Olympic Athletes, High Stakes Poker Players, Leaders in Business and with Traders and Investors in the Financial Markets. Steve realised the similarities between high performance sports and the trading world and developed a performance practice which has helped many traders make lasting improvements. Steven wrote his first book, High Performance Trading, a few years ago. It became an instant hit amongst traders and has seen his reputation in this world soar. Last year he released Bulletproof Trader to great acclaim.
Simon Coterill came to trading after successfully running a printing company for many years. He started trading in 2010 and since 2014 has been day trading for his full-time career.
Simon focused initially on technical analysis but increasingly recognised the importance of
Developing his psychology around trading. The Traders Mind Journal started as a project to develop a personal trading journal for his own use, however coming from a printing background, he started to explore the possibility of creating a more formal trading journal structure to use.
Steve and Simon have been working together over the past couple of years to design, construct and produce the Traders Mind Journal. The journal is a fantastic product which will be hugely useful and valuable to traders as a personal reflection and development tool.
The Traders Mind Journal is the best ‘published trading journal’ we have come across. We are delighted to announce that listeners of the AlphaMind Podcast can obtain a 15% discount off the face value price of the Trader’s Mind Journal by inputting the code AMP15 when they order the book direct from Trader’s Mind Journal on the website https://www.tradersmindjournal.com/
You can also follow them on twitter https://twitter.com/mind_traders
Jonathan Baird: Award Winning Money Manager – ‘I Have Seen the Enemy and He Is Us’.
Successful trading and investment has never been an easy task, with only very few able to encounter and navigate the turbulent waters of financial markets and remain standing nearly 4 decades later. This week’s guest is one of those few.
Jonathan Baird is a Money Manager and writer of the outstanding Global Investment Letter. In his long career (managing primarily international/global equity mutual funds) Jonathan managed three different #1 ranked funds, and has won a prestigious Lipper Award for the best global equity fund in Canada.
Jonathan subscribes to the view that the challenge is the market, but that we ourselves are the real enemy. This underlines his work, with a strong focus on being self-aware, challenging himself, managing himself, ensuring he aligns his work, his purpose and his personality in a way which is the most productive and effective for himself.
Jonathan’s also believes that a high-quality source of independent analysis and opinion can make the process more efficient and lead to better-informed decisions. This has led Jonathan to start and distribute his own outstanding monthly newsletter, the Global Investment Letter, which has become essential reading for thousands of professional investors and money managers.
The Global Investment Newsletter
We were attracted to invite Jonathan as a guest by The Global Investment Newsletter and the outstanding and thought-provoking analysis that he regularly posts on his social media feeds on Linkedin and Twitter.
The Global Investment Newsletter is a monthly journal that comments on capital markets around the world. It looks holistically at all aspects of the investment process. This includes providing views on geopolitical trends and their potential impact on markets. In addition, it includes insights on various other topics that may aid investors, such as investment philosophy, risk approach, and book reviews that are included periodically. It is written in a style that is simple and straight-forward making its content accessible for both the experienced pro and the enthusiastic novice.
You can learn more about the letter at this link: https://www.globalinvestmentletter.com/
Jonathan also published great content to his social media feeds on LinkedIn and Twitter. These can be found here:
Jason Shapiro – Through Trader Hell and Back, to Market Wizard.
30 years of trading success brought Jason Shapiro to the attention of Jack Schwager, who was looking for new interview subjects for the latest instalment of his brilliant series of Market Wizards books ‘Unknown Market Wizard’. Shapiro’s chapter in the book is called ‘The Contrarian’, which tells you pretty much all you need to know about his approach and style.
In this episode, Jason opens up with about his trading approach, his contrarian philosophy and a whole host of topics around the trading process which listeners will find fascinating.
Jason talks passionately about trading and his work. Some of the themes Jason talks about include: Why he is a contrarian. How being a contrarian is not the same as being countertrend. Finding your edge. The importance of getting the process right. Being objective in your views. How market’s discount the news. Using the Commitment of Trader’s report. And a host of themes which will inspire and fascinate the listener.
Jason really opens up with great honesty about the realities of trading, of how he has been to hell and back more than once, the pain of losing, the learning experiences of becoming successful then losing it all, the journey and path to better process and practice, of how trading success is ‘the long game’.
This is one of those interviews which is full of nuggets and lessons from beginning to end. Do not switch this episode off early, because it just gets hotter is it goes along.
Jason also talks about the Crowded Market Report, a Futures trading education website which focuses on and supports traders in developing a unique contrarian approach. Also full kudos to the Crowded Market Report, who donate a portion of their proceeds to the Charlestown Early Learning Center, a non-profit organization, to provide a high quality, affordable educational program for 3, 4, and 5 year old children in the local community.
You can learn more Jason at the Crowded Market report here: https://www.crowdedmarketreport.com/about/
You can follow them on Twitter here: https://twitter.com/Crowded_Mkt_Rpt
And connect with them on Linkedin here: https://www.linkedin.com/company/cmr-publishing/