Odd Lots Brent Donnelly on What It Takes To Be a Winning Trader
Aug 12, 2021
Brent Donnelly, a veteran trader and author of "Alpha Trader," shares his insights on the surge in retail trading driven by platforms like Robinhood. He discusses the need for effective risk management and adaptability in chaos-prone markets. The conversation delves into the emotional challenges traders face and emphasizes blending technical and fundamental analysis for success. Additionally, Donnelly offers thoughts on Bitcoin as a financial asset and the importance of personal development for traders, including the unexpected role of therapy.
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Early Trading Edge
- Brent Donnelly's early trading edge involved exploiting wide bid-offer spreads and brief momentum in high-priced stocks.
- Decimalization and lower stock prices compressed spreads, causing his strategy to fail due to rising commissions.
Building Runway
- Consider building adequate runway before going pro, allowing yourself time to learn and adapt.
- Avoid entering trading with tight stops and limited capital, as this increases the risk of early losses.
Essential Traits
- Rationality, conscientiousness, and calibrated confidence are key traits for trading success.
- Conscientiousness, the ability to do the work and grind, is the most important driver of success.
