Trading capitulations can provide profitable opportunities by identifying panic in the market.
Buying at extreme panic points can lead to significant profits in low-risk trades.
Deliberate practice and systematic learning are crucial for improving trading skills and gaining an edge in trading capitulations.
Deep dives
Lance Brightstein's Trading Journey and Slow Start
Lance Brightstein, a former senior trader at Trillium, shares his journey in trading and how he initially struggled. He considered giving up but eventually found success.
Identifying and Trading Capitulations
Lance specializes in trading capitulations, which are rapid and extreme price movements driven by panic or euphoria. He looks for signs of panic, such as rapid price drops and high volume turnover, to identify potential opportunities.
Confidence in Trading Capitulations
Confidence in trading capitulations comes from experience and recognizing that when others are scared, there is potential for profitable trades. Lance mentions that stepping in when others are panicking can be the safest move.
Risk and Reward in Capitulation Trades
While trading capitulations may involve volatility and thin liquidity, Lance argues that they can be low-risk trades with high potential rewards. Buying at extreme panic points, where prices significantly deviate from intrinsic value, can provide significant profit opportunities.
Deliberate Practice and Optimal Learning
Lance emphasizes the importance of deliberate practice, reflection, and systematic learning. By focusing on high-quality trades, analyzing them in depth, and incorporating feedback, traders can improve their skills and gain an edge in trading capitulations.
Lance Breitstein was a Senior Trader at proprietary trading firm Trillium and Manager of the Chicago office. He has trained, mentored and refined dozens of top discretionary intraday traders, while arguably being Trillium’s best trader in the firm’s history.
This episode was recorded in 2019, prior to Lance going on to set the firm’s all-time PNL record, with landslide wins as ‘Top Trader’ in both 2020 and 2021 after consecutive 8-figure years. At the beginning of 2022, Lance resigned from Trillium to better focus on alternative growth opportunities and philanthropy.
In part one of our (two part) conversation, you’ll hear Lance expound upon his slow learning curve and how he was on the verge of quitting, systemized learning and repetition, the emotional edge in trading capitulations and more.
This podcast solely reflects the views of Lance and is not representative of Trillium’s views.
