I simply couldn’t understand why my previous guest Louise Bedford was so desperate for me to interview her business partner and professional stock trader, Chris Tate – until I was about 5 minutes into the interview that is!
Not just a world of knowledge from a trading point of view but his take on “life as a whole” was simply spectacular.
The big takeaway this interview left me with was a sense of perspective. Perspective on the market and how I had perceived it in the past. And how it may have affected my entire approach to trading.
When you learn this perspective shift I know your trading will thank you for it. Take a listen now…
Podcast Interview
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Interview Links
To download a free trading plan template from Chris Tate’s website, go to TradingGame.com.au. It will help you implement all of the aspects that Chris discussed in this interview.
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Chris’ Video of the Week
Key Lessons
[08:43] I noticed a few things about academia, 1) politics were a pain in the ass, 2) the money was appalling and 3) dealing with students drove me mental.
[09:18] I started investing on my own account and made all the classic blunders that everybody makes.
[09:28] Nobody makes a new mistake; everybody makes the same mistake over and over again.
[10:58] Retirement is profoundly middle-class concept and very, very, very boring.
[13:33] My view is do the things whilst you can and never really retire.
[14:55] One of the advantages and disadvantages of trading is that it is gloriously isolating.
[20:21] If you sit down and annotate every position you take and then note what has happened, sooner or later it will become obvious to you what you are doing wrong.
[20:45] A lot of people recognize their mistakes, but then, because we act with a tremendous degree of ego defensiveness, they move to shift blame for that to somebody else.
[23:21] Stock broking is an intriguing endeavor
[26:13] The people who know the least about trading are people in the finance industry.
[27:24] Price is the final arbiter of all things we do, it is simply the market’s message to you.
[28:35] If you get method and psychology right, you’re much better off being out of the industry
[31:52] Simple models work really well under stress so that you can actually stress test them quite easily
[35:25] I dropped a long time ago, soft commodities because they seemed to have undergone a disruption that means they don’t trend like they used to.
[38:37] When markets are trending very, very strongly, it is incumbent upon me, I’m obligated to, it’s a form of philosophical obligation I feel to make as much from that as possible. Which means I will pyramid continually and very, very aggressively until a trade is over.
[39:51] The thing that hamstrings people is that they simply don’t go after their winning trades.
[40:47] The market exists to enable me to be wealthy.
[41:01] If you have a trading system, it must have taken advantage of all running positions.
[42:05] I think the great impediment that people have is that they won’t accept what the market will give them which is somewhat disappointing to say.
[49:10] All I need to do is to be 1% calmer than the people around me and I have an edge.
[52:01] I think the thing that separates good traders from the ordinary is not only introspection but it’s the ability to manage your own emotions and to step back from them.
[54:26] The market’s is the only voice that matters. Yours is irrelevant!
Chris’ Trading
- He has a basic degree in Immunology
- He teamed up with Louise Bedford
- He views retirement as a middle-class concept
- He prefers training with younger generations than people of his age
- When he started trading, he also made the same newbie mistakes that everybody makes
- He’s rigorous at looking at the data and the mistakes that he made
- He has a very simple trading style – he buys breakouts in existing up trends or sells breakouts in existing down trends
- He has an hourly system for commodities and indices, a weekly Equity system, and a true wealth creation mechanism
- He trades European Indices, S&P 500, NASDAQ, Brent Crude Heating Oil
- He has a low win rate of 33% but with a strong overall positive expectancy
- He has a collection of outlier trades where all the profitability comes from
- His favorite entry setup is a simple breakout into an existing trend
- He uses ATR to manage his active trades
