Trader Mindset How I Embraced The Uncertainty Around Trading Early In My Career
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Aug 22, 2023 Dive into the rollercoaster of early trading experiences where misunderstandings about Wall Street led to valuable lessons. Discover the challenges of day trading amid extreme weather and how market booms influenced strategies. Learn about the critical role of margin calls and the art of risk management to prevent significant losses. Hear personal anecdotes that showcase the mental resilience needed to navigate uncertainty, and understand the importance of effective organization for managing trading contracts.
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Starting Trading with No Mentors
- Michael Martin shares how every assumption he had about trading on Wall Street was incorrect when he started.
- He had no mentors and had to learn by studying his own behavior and feelings without judgment.
High Trading Commissions Impact
- Trading commissions were very expensive in the early days, e.g., $110 round turn for futures day trades.
- This high cost forced Michael Martin to think longer term and study who was making money and how.
Use Stops to Avoid Margin Calls
- Avoid meeting maintenance margin calls with cash; instead offset the risk causing the duress.
- Set protective stops well in advance of margin call triggers to prevent forced liquidation.