Words of Rizdom

Market Wizard EXPOSES The 6 Biggest Trading Myths | John Netto

8 snips
May 15, 2025
Guest
John Netto
John Netto, author of The Global Macro Edge and a former US Marine, shares insights from his remarkable trading journey, including how he turned $100K into $3.1M. He debunks trading myths, emphasizing the value of disciplined risk management over randomness. Netto introduces his unique 'Netto number' for assessing trading performance, highlighting the emotional aspect of trading. The discussion also tackles the impact of technology on trading and explores the expanding opportunities in today's markets, shifting the narrative from simple diversification to bold, informed decisions.
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INSIGHT

Maximize Return Per Unit Risk

  • John Netto achieves high returns by maximizing return per unit of risk and pressing edges when they appear.
  • Superior risk management is like having better brakes to drive faster in trading.
INSIGHT

Trade According to Market Regimes

  • Identifying the current macro regime helps spot high reward, low risk trade opportunities.
  • For example, today's market is driven by AI-focused tech stocks dominating the S&P 500.
INSIGHT

Alpha Types and Trade Frequency

  • John distinguishes endogenous alpha (market-driven) and exogenous alpha (structure-driven).
  • Zero DTE options now enable nearly daily trading opportunities with defined risk.
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