The Pomp Podcast #1421 Tom Sosnoff | World’s Greatest Trader Reveals His Secrets
5 snips
Oct 14, 2024 Tom Sosnoff, Founder of TastyTrade and CEO of TastyLive, shares his remarkable journey as a trader and entrepreneur. He reveals secrets behind making 18,000 trades a year and trading as many as 100 positions daily. The discussion includes insights on market volatility, unique trading strategies, and the rise of new investment behaviors among younger traders. Sosnoff also explores the influence of high-frequency trading on markets and the intricacies of option trading, providing an inside look into the restless world of trading.
AI Snips
Chapters
Transcript
Episode notes
Trading 100 Positions Daily
- Tom Sosnoff trades about 75 to 100 positions daily across commodities, stocks, and options with a typical holding period of 30 to 45 days.
- He focuses on adjusting and managing these positions actively rather than holding passively.
Set Realistic Return Targets
- Set annual return targets as multiples of risk-free rates, aiming at least three times to justify active trading.
- Typically, a target of 20-30% annually balances effort and reward effectively.
Momentum Works Mainly in Bull Markets
- Momentum investing appears to work primarily during bull markets due to persistent upward trends.
- In truly efficient or random markets, momentum has no statistically significant advantage.