The next interview in the series is with Brian Lee (web site, twitter, YouTube). Brian is an interesting guy – a former professional gamer who’s been trading full time for 3 years now. He’s a systems trader that focuses on small caps and uses risk/reward and R in his trading.
I like how Brian is an open book – he is eager to share his experiences and what he’s learned. He’s a great example of someone who does really well trading a system with a low win rate (about 30%).
What is the most overrated trading advice?
There are so many but I think the most overrated advice is always the kind that is unactionable. It always irks me when I see advice being given where it sounds irrefutably true, but it leaves the recipient with more questions than answers. An example might be “let winners run”. So the question becomes HOW? What underlying systems are the reason you can do so? Be it an indicator, technical setup or simply removing yourself from the equation with trailing. Anything remotely specific would help a trader take action, learn from their experience and make a decision to ultimately let go or work with it.
What is the most underrated trading advice?
Again, there are so many to pick from. I would ultimately say it has to do with the simple mathematics behind a successful and profitable system. Traders often overlook what information their accumulated averages can provide in forecasting their success or failure. What if your system is ultimately unprofitable over the course of 1000 trades and you were working hard each and everyday to improve your executions fruitlessly? I think being able to translate what you’ve done and then make the necessary adjustments is key. Sometimes the profitable route is not the most comfortable, would you sacrifice win rate in order to succeed? I think a lot of traders want to win above all else and sacrifice their entire expectancy as a result.
What’s a non-trading related book that’s influenced you recently?
Just because it’s THAT important, it would have to be Atomic Habits by James Clear despite having read that a year ago or so. Atomic habits works beautifully in tandem with The Compound Effect by Darren Hardy. Acknowledging that the little things you do each day can add up massively over the course of a lifetime is a perspective shock like none other. We all know these simple truths intellectually, but to get it drilled into your psyche is a powerful thing. Nearly all of the little efficiencies in my life were a direct result of these books and those habits continue to prove their worth each and every day.
Questions for Brian? Hit him up on Twitter.
Do you know someone who you think would make a good interviewee? Contact me!