In this podcast, Jason Perz joins Mayhem to discuss the first half of 2023 and what he sees ahead. They delve into the intricacies of trading, emphasizing the importance of risk management, the process of trading, and the hunt for outliers. They also discuss the different trading styles and the need to understand what works for you.
- Trading is a process: Trading should be a process that becomes simple over time. At the beginning, it’s a hard process because you’re trying to identify what you can do well. You’re learning different terms, terminology, and why certain strategies might work.
- Risk Management is crucial: The secret to successful trading is risk management. It’s not about your win rate; it’s about managing your risks effectively. Even if you’re winning 60% of the time, that doesn’t mean you’ve made money. You can also win 60% of the time and lose money.
- Hunting for outliers: As traders, we are on the hunt for outliers. We are looking for those trades that will significantly impact our portfolio. However, you never know where these outliers are going to come from. You just have to put on the positions and wait.
- Understanding different trading styles: Everyone has different trading styles and approaches. It’s important to understand what works for you and stick to it. Don’t get overwhelmed by what others are doing.
- Bullish: There is a bullish sentiment towards trading as a process and the importance of risk management. The speakers believe that with the right approach and understanding, trading can be profitable.
- Bearish: There is a bearish sentiment towards overtrading and not managing risks effectively. The speakers warn against the dangers of not having a stop loss and putting too much money into a single trade.
- Neutral: The speakers maintain a neutral sentiment towards the unpredictability of the market. They acknowledge that you never know where the outliers are going to come from, and it’s all about putting on the positions and waiting.