Tom Basso, otherwise known as Mr Serenity, believes your attitude to trading should be to Enjoy The Ride!
Tom was featured in a famous trading book which I’m sure you’ll recognize, Market Wizards, as Mr Serenity.
He also has his own website, called enjoytheride, where he archives all his trading knowledge.
His focus on the mental aspect of trading is admirable.
A lot of traders don’t realize how important this aspect is until after a year or two of live trading.
In my experience, the ladies pick up on this sooner than the guys.
However, whether they can do something about it is entirely up to the individual.
Much like the TradersGPS, Tom Basso’s trading is entirely automated.
Tom’s logic to each aspect of his approach to trading, is almost entirely centric on managing his psychology.
He elaborates on how he goes about doing that in this interview. It enables him to follow his strategy and manage risk in the long run.
This is an invaluable idea which traders need to embrace:
There is no right or wrong way, just what’s suitable for you as an individual.
I’m sure you’ve heard this a lot, but do you know what this really means?
Tom gives this great discussion during the interview which gives viewers more clarity.
Tom Basso also delved deeper into his trading, even providing some technical strategies which he currently uses.
Firstly, he views trading in 3 parts, the buy/sell engine, the risk management engine and our mental engine.
For his risk management, Tom advocates a volatility approach, with the trader’s appetite for volatility as the focus.
For Tom, this helps him be at ease emotionally with his portfolio positions because the value of his portfolio is more stable.
He elaborates a lot more on this during the interview.
For the 3rd engine, trading psychology, Tom also gives so much information in the short time that we had with him.
He points out specifics in the psychological aspect of trading, and how you can increase your awareness of this area as it relates to you.
Even giving some very actionable pointers on how you can improve your trading psychology.
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