Trend Following & Trader Psychology w/ Market Wizard, Tom Basso
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- เผยแพร่เมื่อ 27 ก.พ. 2016
- EP 030: The logic of trend following, and how to improve your trader psychology with Market Wizard, Tom Basso
* More interviews: chatwithtraders.com
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"Good trading is NOT whether you made money or not that day. Good trading is simply following your strategy." I usually get at least one golden nugget out of each interview....That was it for this one. Thank you for the time and effort you put into this channel.
Excellent quote, was about to write that one down myself.
that is the biggest struggle with emotions and inexperience - even though you intellectually know your system is proven to win over averages - you freak out until you've seen the fruits of it pay off over and over, despite the inevitable loser now and again. sometimes it's better just to set your stops, close your screen, and go do something else. check the charts again at the end of the day or tomorrow - maybe adjust your stop and walk away again lol
The biggest part of his success was his engineering background. Thanks for the quality interview, it was very well done Aaron.
Sure doesn’t hurt coming into the market with a fat account. Must be nice.
I've listened to about 40 of these interviews so far...and I think this might be the best of them. Thanks, and well done!
Great interview....The last 20minutes or so are absolute gold (not that you should fast forward) -- did not realise 1hr 20mins had passed
+Michael Fennell, awesome to read this dude. Thanks heaps.
Hey Aaron, thanks for your interviews, I got a lot out of listening to your interview with Tom Basso in particular. It changed my thinking about my positions and trades, exactly what I needed.
Great
General
1. Thinking Process / Psychology
2. Wall Street Journal
3. Learning Process - Charts / Books
Just listened to this again. One of the best! So much of this interview resonates more with me now I have some experience in the market, than when I first listened. I wish I’d taken this on board completely the first time around... I may have saved a few thousand...
Man I love these interviews. Great job!
+Griffen great, I'm pleased man!
1.25x is a must for this one. Good interview. Thanks.
Great job on these interviews Aaron, i have listened to them all, very helpful and insightful!
+Val Trifonov awesome, I appreciate it Val. You may or may not be aware, that there are more interviews available here (not yet on TH-cam): chatwithtraders.com/podcast-episodes/
Aaron is on fire in this interview. Very well researched on Tom- it made for a great interview, as per usual. Cheers.
I could listen to Tom all day - what a guy!
Wow ! the smartest of all . love his thinking , ill watch it more and more . he said nothing fancy and thats what make him a winner . his brain is pure developer. ty for this episode ! loved it
Seems to be a nice guy, his part in New Market Wizards was a favorite... down to earth fella
Incredible wisdom and not just about trading
Awesome interview
Great interview!
Great advice, thanks man
Thanks fot this one, excellent.
This gentleman dropped down some trading wisdom here.
Excellent One
55:00 "good trading is following your strategy"
I agree....trading doesn't need to take more than 10 minutes a day..everything else is a waste of time...
The properties of liquids and finance have much in common, even the same vocabulary is used to describe both.
There were some great things in this interview, but the one thing that I strongly disagree with is that you need to start with a large account in order to succeed in the market. With the right mindset,and discipline, you can achieve anything. Never allow anyone to tell you what you can't do, no matter how great they are. Never let anyone limit you. For years they told Nikola Tesla that his ideas were foolish, but his ideas revolutionized the world.
or get lucky.....
you can take big risks as long as you handle the losses...
Traders typically do this because they don’t understand how to place stops in trend trading properly and also because they want to trade a bigger position size. This is wrong. You need a logic / chart-based reason to place a stop loss, not just a random pip distance or a pip distance that will allow you to trade the size you want. always plan a trade with a good strategy like the Blended Model Strategy. If you want to learn more, i highly recommend you to it. find out more fact on google, it's inspired by *Dmitry Vladislav* a known trader and market analyst.
Agree with you but you slightly miss what he’s talking about. 1 contract in the E-mini is $100. Which is 5% of a $2K account. You can blow up the account very quickly (20 trades) and will need to re-up. Spend another 2K and do the same. With a $10K account you can experience the same 40 trades without blowing up, make adjustments and the next 40 breaking even and the next 20 getting profitable. Don’t make time the factor. Let the process work over a series of trades. You don’t know the order in which they will show up so a bigger account absorbs the risk in a Monte Carlo analysis. Best of luck out there.
Wonder if he has applied his trend following systems to crypto
I am also a chemical engineer by education and now a businessman and a trader. :)
Can u add subtitles to this?
I like all these interviews. The only confusion I have is that I get no grasp of exactly how successful they are or have been in their trading, so I don't know how much attention I should pay to their advice. Are they independenly wealthy or mid-range, or what is their status?
+Mike Lawson, I'm pleased you like the interviews Mike. I'm not really sure what additional info you would like on the guests though?
+Chat With Traders I think he means that how legit and profitable are these traders. Since you can't take advice from EVERYONE, you'd want to know their accomplishments and whatnot. Even if they've been trading for years, how much have they made or make consistently or how life has changed for them. Just my thoughts
Dude he was in Market Wizards! If that doesn't say it all, then you need to do a considerable amount of reading...
keep it very simple.....go for the big moves. Cut losses, let profits run.
I trade once a week...no charts. very little t.a. etc...
LIKE THIS MAN...!
+Tony Parker Tom's a wise guy, certainly one to listen to.
The only thing i kind of disagree with Tom and Ed are fundamentals in stocks....they say not to bother with them....I find with stocks fundamentals are very important. Sure, some stocks just go up on huge volume..but it's rare. The huge trending stocks are usually the ones with great fundamentals behind them. Look at stocks like AMZN, NFLX,GOOG,FB....instead of focusing solely on price you need to trend the earnings.
Futures, indexes, currencies, etc are different.
NEVER day/short term trade....
1:08:00-1:15:00 great comments
What a legend. Could you please please please do one with Mark Weinstein?
It's easy to reflect that you should take it easy when you are successful. Let us suffering traders get there first please :-)
30:30, 40:00, 51:30
WOW
Tom Basso and Ed Seykota are my hero's. Long term, passive....boring, systematic.
Can they be applied to Forex?
Great interview. Much preferable than young traders, find they don’t get it yet.
"If you have to ask...you shouldn't be trading it"
Why anyone would ever want to listen anyone is beyond me.....they have no prediction skills at all. No-one can predict the future...
Hey i lost $40,000 on CROX in 2007 when it gapped down on earnings.....did i cry and blame the market? The brokers?
No..it was 100% my fault....i remember looking in the mirror and giving my-self a telling off...i am not mad.
I was up over $100,000 on the stock anyway..but still hurt to give that much back in one night...Halloween as well.
This noise at background at 2:19--2:31 min. It really sucks.
I wonder if this trend approach still works on currencies
It works, because all markets exhibit trending tendencies. The problem is that good long-term trends happen rarely and quite randomly. The key to trend following is diversification across as many markets as possible. Focusing on just one or a few markets is counter-productive.
do they move???? Then it works....
36
Is it possible you could sum up all the valuable tips & lessons in the description box for people like me who do not want to watch the entire video? :)
+ynoter1 like this here, chatwithtraders.com/ep-030-tom-basso/? Or did you have something else in mind...
Chat With Traders Yes that's perfect thank you :)
+ynoter1 great!
+Chat With Traders You should have made him suffer through the hour and twenty minutes too teach him a lesson Hahaha
+ynoter1 That kind of goes against trading rules as a whole.
Traders typically do this because they don’t understand how to place stops in trend trading properly and also because they want to trade a bigger position size. This is wrong. You need a logic / chart-based reason to place a stop loss, not just a random pip distance or a pip distance that will allow you to trade the size you want. always plan a trade with a good strategy like the Blended Model Strategy. If you want to learn more, i highly recommend you to it. find out more fact on google, it's inspired by *Dmitry Vladislav* a known trader and market analyst.
poor audio
Next time have him not sit in the kitchen on speakerphone please! Audio is 😫
well if they had $2,000
They should go all in for trades....until they hit $100,000+ then diversify...if you want....
And if you lose it..you lose it.....scared money doesn't make it.
Sounds like a great way to blow up an account.
All in on trades? You might get lucky but if you’re risking your entire account on every trade you’re gunna blow it lol wth
I can't hear a single word he's saying