One of my favorite podcasts in chat with traders. A recent episode resonated with me. Although I only invested for seven years, this episode with FuturesTrader71 was extremely helpful. Here are the take aways.

  1. Risk management. All great investors emphasize minimizing the downside. Cut your losses. And take breaks if you have some long losing streaks.
  2. Focus on one trade first. Bruce Lee famously said that a man who practiced ten thousand kicks cannot beat a man who practiced one kick, a ten thousand times. Hence, it is important to have one good investing strategy that yields decent returns and that you are comfortable with. It is important to experiment with various investment strategies but try to stick to one first. You need see how it performs and how you feel about it for some time. Moving too quickly from strategy to strategy may create stress and big losses.
  3. Investment strategy should match the personality. Each investor is different. One strategy would work for one investor but may be a nightmare for another. A easy test whether a strategy fits you is if you feel stressed or cannot sleep at night then the strategy is not for you.

I am thankful for Chat with Traders. It’s really helpful and illuminating, plus it is free. We should be thankful to live in a world where there is tons of helpful information at a low cost (just need to be disciplined and push through 😀 )