We are excited to release our latest In The Arena podcast featuring trader and author Anne-Marie Baiynd who is the CEO of TheTradingBook.com.
During this candid, in-depth conversation with host Daryl Jones, she discusses losing millions of dollars trading as a novice, learning from her mistakes, creating a process, and respecting macro forces in the market.
A peek into Ann-Marie's daily process:
“I'm like, give me the data. I just want the data. And then I'm going to start thinking about, okay, here's the data now how are people responding to the data and that pulls into that background that I have in behavioral statistics. 10 people can hear the same thing and individually if they are they are by themselves they're going to react quite differently. Now when they're all together, they're going to influence each other and it's going to be groupthink. But if they're separate, they're going to think totally different things. So my thought is not, Ohh this is my data so this should happen. My thought is always, this is my data, how are people going to respond to this? And how close is that to my pivotal areas of support resistance and can I leverage that to make money today?”
How she manages risk:
“So the two things I had to worry about when I was trading was am I getting into this position too late? And in the beginning I would be, waiting and waiting, waiting for it to break out and then finally chasing it and it'd be too late and I would be waiting and waiting and waiting for it to break down and chasing after it and it'd be too late. So what I learned to really define in terms of bringing that risk together is where is it that the market has interesting little balance points. Now, because I was a statistician I just realized that, hey, listen, a picture is worth a thousand words. And so I just really started looking at the pictures. It's really why I call myself a caveman when I trade, because I'm looking at the most simple picture that jumps out at me and says, Hey, listen, this is a fulcrum event. It's a place where we've got a tearing and if I can watch for that and watch it break, I know that that's where my support lever ought to be, or my resistance and then I engage as close to that as possible”
You can learn more about Ann-Marie at www.TheTradingBook.com and her books The Trading Book and The Trading Book Course are both available on Amazon.
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