Trader Tech Talk 023: How Toni Turner Defied Her Broker and Learned to Trade

Toni TurnerIn this episode, we get to hear Toni Turner’s story of learning to trade, despite odds stacked against her, and despite many cautions of trading being too risky.   Toni persevered, and has become a successful trader, author and educator!

Toni is fun to talk to, has a delightful sense of humor, and a lot of wisdom and advice.   You’ll learn from her:

  • The four switchbacks, or stages a trader might go through
  • What makes a good trader
  • Why trading is more difficult than investing
  • How she achieved the discipline, knowledge and experience needed to become a successful trader.

Take a look at Toni’s informative site here:   http://www.toniturner.com

A Beginner's Guide to Day Trading Online (2nd edition)

Trader Tech Talk 022: Dave Walton’s 4 Tips for Back Testing

For this first podcast of 2014, I would like to introduce you to Dave Walton.    I found out about Dave by reading one of my favorite trading newsletters, the one by Van Tharp.  Mr. Tharp is a really interesting guy, he has many books and courses out, and he really helps traders get through all of their issues and become the amazing traders that they were meant to be.davewalton
Dave is one of the guys who participated in Van Tharp’s Super Trader program for the last two years to focus on trading psychology and his trading business development.  In this episode, Dave is going to tell us a bit about the Super Trader program, and how it changed his trading, and actually changed his live.  It’s a very inspiring story.
Dave is co-founder and partner of StatisTrade, a trading system evaluation consultancy for money managers and funds. The mission of StatisTrade is to provide clients with unique and critical insights into their trading systems to improve their performance and meet their specific goals using proprietary, statistically-sound tools and processes.
Anyway, back to the newsletter.  I was reading the November issue of Van Tharp’s newsletter, and one of the articles was by Dave.  The article was on back testing and bias, and it was one of the most interesting articles I’d ever read, and I think you are really going to enjoy our conversation about back testing your strategies.  Dave gives us some outstanding tips on how to avoid data mining bias and do better with back testing.
Here are some links to the newsletter and to Van Tharp’s web site:

 

Trade Your Way to Financial Freedom

The Best-kept Secret for Binary Options Trading Success

Guest post by Heather from BinaryOptionTrading.com

Binary options are pretty new in the financial world and that means that there has been some obvious delay while technology catches up to the rest of the marketplace.  When it comes to automated trading, this has been pretty obvious. But analysts have finally caught on to the potential here, and this means good things for you the trader. And that means that automated trading has finally become a reality within the world of binary options. Not only that, it is catching on in popularity and becoming very efficient.

Signing up and paying for a trading service isn’t the end of the work for you, though. One of the most important things that you still need to do as a trader is figure out and constantly monitor your risk levels. This can be tough, though, especially because of the all-or-nothing nature of binary trading. If you’re new to these, you need to quickly realize that the complete amount you risk is usually lost when you are incorrect in your prediction. And when someone else is making trading decisions for you, you become a bit removed from this process. It’s easy to see that you’re losing $100 each trade when you are manually inputting trades yourself, but when it’s automated, the distance between the trader and the trade becomes pronounced and this can lead to problematic risks.

So how do you fix this? It starts with basic money management skills. A lot of experts say that you should never risk more than 1 to 2 percent of your bankroll on a single trade, but this isn’t really that accurate. Sometimes you should risk more and sometimes you should risk less. There are actually some easy things that you can do to calculate an exact number that you should be risking, such as with the Kelly Criterion. The problem with this approach is that the vast majority of calculations rely upon the perceived percentage of success you will have. This is a viable method if you are manually entering every trade and doing a separate calculation for each trade, but when you are using an automated trading system, this becomes impossible.

This poses a rather large problem, actually. When you are automating your trading, you need to make sure that you are not risking too much or too little. Otherwise, you stand a good chance of either not making significant profits, or of going totally broke. But if you think about these things, one is much better than the other. If you go broke, you’re done until you reload your account. The obvious solution here is to risk on the smaller side of things. This way, even if you are risking too little on some trades, you will very rarely be risking too much. If the service you are using is worth the money you are spending on them, then this little inconvenience should easily be overcome.

Ideally, you would want to dictate how much you are risking with every trade. This way, you can move the amount around so that you are maximizing earnings when you have a big advantage and reduce your risk when the odds are slightly less in your favor. However, automated trading can be an even bigger advantage, and while these two are currently irreconcilable with today’s trading technology, you still need to approximate in order to have the best results.

Right now, there is only one way to attempt to do this. You need to trade for a while on your own and get a feel for the market before you subscribe to a service. You need to use a reliable money management system to give you a good idea of what an average trade looks like. You will actually start to find that there are certain amounts that you will risk more than others. This is largely determined by the amount you have deposited in your account. It is also determined by the broker you use. Some brokers do not allow you to tailor your dollar amount as precisely as others. But with more experience and more trades being crosschecked against appropriate money management systems, you will figure out a good figure that you can use for every trade. If you have any doubts, or your broker forces you to pick a rounded number, always round down. It’s better to gain less than to lose beyond your means. More helpful tips about binary options can be found at binaryoptiontrading.com. This site is a leading brand in the marketplace, which helps traders succeed.

Trader Tech Talk 021: Kathy Lien on Currency Trading and Women in Finance

In episode 21 of the Trader Tech Talk podcast, Kathy Lien is our first guest in the “Women of Finance” series!  Welcome, Kathy! kathydesk

Kathy tells us about her journey in trading, how she got started, and how she was able to get a head start by working at JP Morgan.

In this episode Kathy gives us some excellent advice, especially for women just starting out in trading:

  • How you can become confident in yourself
  • How you can demonstrate your value in a firm
  • Why you should continue to hone your skills
  • Why you should seek out other like-minded women in finance

Kathy also talks about trading fundamentals versus technicals, and how you can use both to improve your trading.

Resources

Day Trading and Swing Trading the Currency Market: Technical and Fundamental Strategies to Profit from Market Moves
The Little Book of Currency Trading: How to Make Big Profits in the World of Forex

Trader Tech Talk 020: Top Tips From 11 Trading Experts

In this week’s podcast, we’re doing a recap of the top tips from 11 trading experts.   Each interview is with a top author, trader or educator, and each interviews holds tips and information you can use to improve your trading systems, test more thoroughly, and achieve higher profits with your trading system.  You may have heard some of these interviews already, but go through the list and find the ones you haven’t heard and give them a listen!yay-4376778

  • http://blog.tradertechtalk.com/8   John Person discusses seasonality, pivot points and his new book Mastering the Stock Market.
  • http://blog.tradertechtalk.com/10  Howard Bandy discusses trading system validation, mean reversion systems, and his three books, Quantitative Trading Systems, Mean Reversion Trading Systems, and Modeling Trading System Performance.
  • http://blog.tradertechtalk.com/11  Chris Davison tells us about writing trading systems, and his “assisted trading” trading system.
  • http://blog.tradertechtalk.com/12 Ernie Chan talks about choosing a programming language, using Matlab, and living through the Flash Crash of 2010.
  • http://blog.tradertechtalk.com/13  Mike Bryant explains his amazing Builder program, as well as Market System Analyzer.
  • http://blog.tradertechtalk.com/14  Neal Gilbert tells us about Braving the Rapids, his book that explains his new trading system.
  • http://blog.tradertechtalk.com/15  Jake Bernstein talks about seasonality, divergence trading, and then gives away a complete trading system on the show.
  • http://blog.tradertechtalk.com/16  Ben VanVliet discusses the challenges of the trading firms, with traders, quants and programmers competing for attention; he also tells us about his new regulation initiatives.
  • http://blog.tradertechtalk.com/17  Ralph Vince explains position sizing, and how risk and position size are related; he provides detailed explanation of his formulas and provides some graphs to to along with it.
  • http://blog.tradertechtalk.com/18  Abe Cofnas explains both sentiment indicators and binary options, and then shows us how binary options are a great sentiment indicator. Abe’s book is a great one to get on binary options.
  • http://blog.tradertechtalk.com/19  Lee Leibfarth gives us the 4 metrics we should pay attention to when evaluating a strategy’s backtest results.

You can listen to each podcast right from the pages above.