MH+ Ep.15 : What’s Going On In The Markets? With Patrick and Dave Floyd
Oct 11, 2023
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Dave Floyd, an expert in charts and trading, joins the podcast to discuss the psychology of trading, finding a trading style, trade duration, frequency, and sentiment in decision making. They delve into overcoming trading psychology challenges and analyze the current state of the markets, focusing on the S&P 500. Dave shares information about his company, Aspen Trading Group, and expresses gratitude for being on the show.
Finding a trading style that aligns with one's temperament and personality is crucial for success in trading.
Focusing on a limited number of instruments allows for a deeper understanding and intimacy, giving traders an edge over time.
Deep dives
Dave Floyd's Approach to Active Trading
Dave Floyd, a guest on this episode, shares his active trading approach. He prefers short-term trading, focusing on immediate gratification and finding a trading style that suits his personality. While he acknowledges that this approach may result in leaving some profits on the table, he reserves longer-term investments for IRAs and 401Ks. Dave emphasizes the importance of finding a trading style that aligns with one's temperament and personality to achieve success.
Qualities of a Good Trader
According to Dave Floyd, regardless of the chosen trading style, discipline is an essential quality for a trader. Additionally, he believes in the principle of 'less is more,' emphasizing the importance of focusing on a limited number of instruments. Dave mainly trades the S&P futures, 10-year note futures, and currencies. He believes that having a narrow focus allows for a deeper understanding and intimacy with the traded instruments, which can give traders an edge over time.
Dave Floyd's Entry Approach and Risk Management
Dave Floyd's trading strategy incorporates momentum trading, mean reversion, and retracement trading. However, he prioritizes objectivity when analyzing the market and identifies areas in the market where price reactions are likely to occur. Dave believes that objective analysis, based on readily available market data, is crucial in determining entry points. When it comes to risk management, he sets upside targets but lets the market determine when to exit trades. He acknowledges that not all trades will result in large gains and prefers to have a higher win-loss ratio rather than maximizing average gains.
This week Pat talks charts and trading with previous guest, Dave Floyd. We get a quick 30 minute update on what’s happening in the markets, as well as the art of entries, time frames and psychology of trading.