Episode 7 – The paradox of trading without thinking and a trader’s emotional growth curve w/ @Realitytrader Vadym Graifer.

Listen to the Episode Below (01:11:24)
Sign up for our weekly newsletter
Stay up to date with the podcast, and get notified when the next podcast drops.

Summary

 

In this week’s show, I had the great pleasure of interviewing full-time professional trader Vadym Graifer.

Vad has been daytrading for 20 years, which is no small feat, and is also a teacher to traders, and author of numerous trading books including Techniques for Tape Reading (2003), The Master Profit Plan (2005), and A Taoist Trader (2015).

Vad has an amazing way of relating his wealth of knowledge and experience through anecdotes and simple maxims and I think you’ll find our conversation very interesting.


Vad is the founder of RealityTrader.com, a hands-on training company, working with a global community of individuals to achieve high levels of trading success.
As a trading mentor he’s been responsible for turning around the trading careers of thousands of trader. He has also published articles and interviews in industry magazines, corporate product newsletters and trading forums.

Big Ideas

 

  1. When you have to do something where your very survival depends on it – you learn fast
  2. Day Trading can be one of the least risky ways to trade –
    • If you can overcome the initial learning curve, there’s total control and no overnight risk because you are able to manage the trade in real time
  3. Chart patterns reflect things that never change – human psychology and emotions
  4. No trade setup is ever guaranteed to work
    • setups are based on probabilities – just as in life
  5. The proliferation of algorithms have changed the market environment however the patterns are still there
    • However algos are created by human beings – they leave the same emotional footprints
    • Don’t play their games – don’t compete with the algos on their turf
  6. During the course of the trading day you don’t think about trading – you think about execution
  7. The good news and bad news with regards to emotions in trading:
    • Bad news:  You are never going to be able to get rid of emotions
    • Good news:  It is possible to separate your emotions from your actions
  8. The Emotional growth curve of a trader
    • 1st stage – You think you are above emotions or that you are somehow different and immune from emotions
    • 2nd stage – You understand that you are the same as the rest of humankind and are subject to the same emotions
    • 3rd stage – You start understanding yourself better, and are capable of managing your reaction to emotions
    • 4th stage – You use emotions as window into other traders actions 

Time Stamped Show Notes:

  • [06:30 ] – Vad’s journey from knowing no English to discovering and inventing day trading for himself and turning his small $11,000 account to $200,000 daytrading
  • [13:00 ] – How daytrading is the least risky way to trade
  • [16:30] – Vad’s trading philosophy and how he trades
  • [25:44] – Vad’s opinion on the impact of algorithms/computerized trading on the market
  • [28:55 ] – Vad’s lays out his typical trading day
  • [39:40 ] – Thinking goes into designing setups but trading needs to be thoughtless – eye to finger
  • [40:20] – What trading intuition really is -> experience that amounts to automatic reaction or “trading without thinking”
  • [43:55] – The good and bad news about trading emotions and the emotional growth curve of most traders
  • [54:00 ] – How to trade with The “Smart Money” and how “Smart Money” trades differently from the crowd
  • [1:10:30] – The reality of the market -> Price and Volume

Quotables

[Tweet “Trade without thinking.”]

[Tweet “The reality of the market is price and volume.”]

Transcript

Download Transcript

Resources Mentioned

Leave Us Your Feedback

Comment and Share

Please consider rating the podcast with 5 stars and leaving a one- or two-sentence review in iTunes or on Stitcher.  This helps tremendously in bringing the podcast to the attention of others.

You can tell your friends on Twitter about our podcast by simply clicking this link and sharing the tweet you’ll find at the other end.

And, by all means, if you know someone you think would benefit, please spread the word by using the share buttons below and up top.

Finally, thanks for listening and tell us below, what was your greatest takeaway from this interview?

Episode 7 – The paradox of trading without thinking and a trader’s emotional growth curve w/ @Realitytrader Vadym Graifer.

by editor time to read: 35 min
0
×
Sign up for our weekly newsletter
Stay up to date with the podcast, and get notified when the next podcast drops.