Kevin Muir talks trading with Horselover Fat, Co-founder of Traderade. They discuss Horse's trading setups, the origins of Traderade, the importance of zero DTE options, favorite long and short trade setups, Steve Cohen's trading philosophy, similarities and differences in trading approaches, and Trader Aid's commitment to building a non-toxic trading community.
Visualizing trades before entering them helps day traders make more informed decisions and establish clear exit strategies.
Establishing predefined exit points, having a well-defined thesis, and acknowledging when a trade is not working are crucial components of effective risk management for traders.
Deep dives
The Importance of Visualization in Trading
The speaker emphasizes the value of visualizing trades before entering them, especially for day traders. By having a clear visualization of what is expected to happen in the next few minutes, traders can make more informed decisions and establish a clear exit strategy if the trade doesn't go as planned.
Risk Management as a Key Skill
Risk management is highlighted as one of the toughest challenges for traders. The need to establish predefined exit points, have a well-defined thesis for each trade, and acknowledge when a trade is not working are crucial components of effective risk management. The speaker suggests that traders often struggle with this aspect and that personal circumstances can heavily impact trading performance.
The Balance between Trading Size and Risk
Finding the right balance between trading size and risk is crucial. Traders need to trade with a position size that is small enough to handle potential losses but still meaningful enough to generate significant profits. The speaker mentions the importance of managing trading capital like a house, ensuring that the trade size is appropriate, and considering factors such as boredom trades versus real trading opportunities.
The Benefits of Having Trading Rules
Having well-defined trading rules can save traders from potential mistakes. The speaker mentions the importance of having clear rules for trade entries and exits, and the need for discipline in following these rules. However, the speaker also acknowledges that human emotions and personal circumstances can sometimes challenge traders' adherence to their own rules.
This week Kevin has an in-depth conversation with Traderade Co-founder, Horselover Fat. Kev and Horse dive in to Horse’s trading setups, the origins of Traderade and some of the experiences, both good and bad, that’ve got him to where he is today.