Trader Mindset

Cannabis Green Book partners with Equifax and Matt and Michael revisit the High Times IPO. 

Michael Martin and Peter Borish discuss the current environment and when it looked like this before.  We also speak about what inspired him to develop his analog model that anticipated the market crash in 1987.  Peter is on the faculty at MartinKronicle and also joins the "live" Mastermind to answer our students questions.   

Hari Krishnan returns to the show to discuss how the VIX can play a role in portfolio diversification, not unlike Managed Futures.    [Sorry about some of the audio. Hari's schedule is very tight and he was overseas at the time of our recording. No matter how many times we hung up and retried getting a better connection, nothing worked.]

Shareholders of GWPH need two approvals in order for their investment to pay off, one of which they have - the FDA approval.  Trickier to understand is the DEA approval which needs to happen by the end of September or 3 months after the FDA approval.

Check out their videos at YouTube also.

If you're wrong 60% of the time in good markets, why lose on your optimal bet size right away?  Cut that in half for your first entry and then add the second half to your winning trade...

You don't have more control over an instrument by downtiming to 10 minute bars? Trader smaller if you're afraid to lose and trade off of weekly charts, then daily. 

Jeff Dorman is a Portfolio Manager and Head Trader at Arca Funds in Los Angeles. 

Tape readers have had to evolve their process with the proliferation of HFT. This is just one example of what you'll face over the course of your career.

Matt Dula is an expert in the marijuana investment space. You can find out more about what he's doing at Cannabis Green Book .

Trim the hedges or not?

When directional momentum stalls after you've established your position, here's what to do. 

All trades have a beginning, a middle, and an end. Most traders focus too much IMHO on the entry (beginning) and the exit (the end).  Mismanage the "middle" and it can mean all the difference between a winning trade and losing one.   

Revert to more simplicity when you get in a rut. 

Great traders focus on their behavior all the time.  Consistency Perseverance Persistance  Determination When you're starting out you won't have the luxury of having these feelings if you blow up two months into your trading career. Keep your frequency of trading to a minimum until you learn to trade one style and own it. Limit yourself to initiating two trades a day, else you might find yourself...

Most traders fail to reach their true optimum ability and optimal performance because they have no sense of imagination and the don't challenge themselves.   

The biggest problem with being a chart-reader only trader, is that finding names for your watchlist is terribly inefficient. 

Don't plan to get tasks done, else you'll be stuck in blue collar despair.  Make goals that include increasing assets under management, revenue, net income, and consistent behavior around following your rules.  That's how you'll grow your business and your wealth.   

When I set personal goals alongside my business goals, I tend to hit both. When that happens, life is good!  Already hit your goals? Set new ones that are realistic and attainable.  Don't forget to set your "FU" or stretch goals also. You might not hit them, but you get your subconscious mind thinking about them even when your conscious mind is working on the attainable ones. You just never know.....