Continuous learning is crucial in trading due to the constantly changing markets.
Risk management and persistence are key to success in trading options.
Deep dives
Kirk de Plessis's Background and Authority in Options Trading
Kirk de Plessis, the head trader at optionalpha.com, shares his background in investment banking and his transition to trading options. He emphasizes the importance of continuous learning in the ever-changing markets and highlights the appeal of trading options due to leverage and the ability to create unique positions.
Lessons from Initial Trading Mistakes
Kirk discusses the early challenges he faced in trading, including losing a significant amount of money in his first week. He emphasizes the importance of treating initial losses as part of the learning process and paying tuition to the market. These early losses laid the foundation for learning and improving his trading strategies.
Benefits of Trading Small Positions with Defined Risk
Kirk advocates for making numerous small trades with defined risk, resembling a casino's mentality. He highlights the significance of risk management and recommends trading between 1% to 5% of the account balance on each trade. By trading small positions, traders can persist through losing streaks and minimize the risk of going bankrupt.
The Role of Consistency and Persistence in Trading
Consistency and persistence are key traits that Kirk considers essential for traders. He stresses the need for consistency in trading approaches and following predefined rules. Additionally, he emphasizes persistence in continuing to trade despite experiencing losses, reminding traders that success often requires a substantial number of trades to realize the probabilities in their favor.
Throughout the interview we discuss Kirk's journey in great detail, plus much more. But not to give too much away… Just know this is a jam packed episode with Kirk sharing plenty of great insights on how you can gain an edge with your trading. This is certainly an interview you should not skip past.