Why risk management is king · Rob, Discovery Trading Group
Вставка
- Опубліковано 26 чер 2016
- EP 072 Why risk management is king, and why “gambling” isn’t such a dirty word w/ Rob from Discovery Trading Group
Rob is an active futures traders and is what most people would call a pure scalper, but he refers to himself as a “street level gambler with an appetite for risk”. Either way, he is very short-term and often just trading for a couple ticks at a time. So that’s one side of what he does, the other side, Rob is also involved in a quantitative research firm which trades a whole range of strategies, over various timeframes, in many different markets.
Over the next 60 minutes; you’ll hear about Rob’s early years of trading during the 80’s, and how he’s developed into the trader he is today. Rob also drives home the importance of risk management, shares a few gambling analogies, and talks about the benefit of interacting with other traders on a regular basis.
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0:00 Introduction.
4:22 How it started for Rob.
11:53 The retail trap.
14:29 What happened when Rob tried to automate a strategy.
19:41 Success with low win rate.
22:17 Rob's quant research firm.
24:55 Rob's current discretionary trading methodology. The myth of prediction. Volume.
33:19 *Risk management. Casino analogy.*
41:34 The simplicity of the risk math used in Rob's firm.
49:10 *Why do retail traders fail.*
56:04 What is Discovery Trading Group. Trading is a team sport.
1:08:05 Conclusion.
Thanks 🌹
Thanks 🌹
This is very helpful
Thank you
I contacted the discovery trading group and they say Rob is a swing trader. I don’t understand . Here he’s a proper scalper
This video say's it all , risk management enables you to implement a set of rules and measures to ensure any negative impact of a forex trade is manageable. An effective strategy requires proper planning from the outset, since it's better to have a risk management plan in place. this is why I always advices somany young investors to seek proper guidance from an expert before trading inorder to avoid losses when trading.
indeed he is really good when it comes to trading, me and my family are taking advantage of this opportunity am so happy investing with him.
Love his trading system , he ensure safe investment and better risk management.
Great content.
Mr Romero pieto has helped me greatly I can now earn and also learn how to improve my knowledge in trading.
Marbel Lopez I'm from Germany 🇩🇪 and am also a newbie in the online Trading market so please how can I get hold of Mr pieto and his trading services ?
Listened to nearly all of the episodes and this is in the top 3. So much sound wisdom here. New traders, re-listen to this and take notes.
What are the top 3 in your opinion?
Pick 2 random indicators, one for entry, one for exit. Have concrete money and risk management, and it's almost impossible to not breakeven after a substantial amount of time. That alone puts you in the top 25% of all traders. Try it some time!!
Can I use the full moon as my entry?
@@juanpalma6595 yup works every time
why would you strive for break even?
Not a single individual person here can create a winning trade. As traders, your job is always to focus on the losing side. You never make a winner. You simply don't have that financial power. Focus on losing properly.
Well said , it's a business of risk management
Hm.. technical Trading like pure arbitrage?! Doesn’t exist this anymore?
Well some people do but they're the VAST minority lol and only in very thinly traded markets.
this is the most stupid comment i have seen in my life
this is dumb
Holy crap it's like he read all my old posts on elitetrader from like 12 years ago. I'm glad somebody listened! The whole deck being shuffled every second, every bar etc, market profile, vol based position sizing. This one of the top 5 traders that have been interviewed as far as understanding the game out off all the hundreds of wankers.
holy shit! what this guy says absolutely reaonates with my miniscule understanding of the business of risk management so far. if there ever was a holy grail, i just heard it.
+abbasg84 - great! I'm glad this helpful man.
He's a very "forget the battle, win the war" kind of trader.
Wow again Aaron Thank you so much!! One that really stuck deep with me and gives so much insight and help in my development.
This is one of your best chats, thanks!
I love the analogy at around 36:00 of being the casino versus the gambler. Everyone knows the house has the edge in the casino. You absolutely CAN get an edge in the markets but it takes a lot of work and a lot of study and discipline that most retail traders simply aren't prepared to do because they're convinced by some Furu it's a get rich quick scheme.
Thanks Aaron for providing different but valuable insight from experience traders!!! I enjoy hearing everyone experience, struggles and success. Great to know that everyone has the same struggles as new traders and ideas how to better our entries and exits... Again thank you!!!
Probably the best interview for beginner traders out of all the CWT podcasts IMO.
I really needed this. Having a rough week trading. Thanks for the inspiration.
Starts at 3:36
Man that was an amazing interview. He definitely is in the know
one of the best interviews mate thanks a lot!
Love this dude. Phenomenal interview
2nd time listening to this pure gold !!! Thank you .
This interview is pure gold. A little bit advance for beginners, but if you are serious about trading, come back to it, the brite lights will guide you.
MAKING YOUR OWN RISK MODEL IS KEY
“There’s no light at the end of that tunnel…actually there is, it’s in front of a train.” 🤭😂😂
My favourite interview so far
Totally agree with this guy, risk management is king.
thanks for sharing, very helpful for beginners like me who are learning in the nfc community.
Good
Technical
1. Scalping / Risk Management
2. Market Structure / Market Making
Thanks Aaron! I am really grateful for these interviews. They provide so much insight. I listen to one everynight.
Very Deep Interview, Thanks Aron.
Amazing!
Fantastic discussion. Subscribed.
The single most important CWT interview is this one.
Outstanding ideas here.
This podcast has clarified a lot about how i trade and has helped me remain focused on my trading style and become comfortable with it because it is part of me. Thanks Aaron and Rob for this!
+Mbugua Wainaina, nice to hear this had a positive impact for you. Many thanks for listening.
always a pleasure
Mbugua Wainaina Hi, I gave up trading small accounts becouse of constant chase of my trades unless it is high speed and great push in one direction.I belive brokers can push the market without investing money, but at specific moments for a couple of seconds almost at any time and any kind of spikes.I wish that was not true and hope it can be better depending on the broker.What broker do you use and how is it going?
hey Aron thanksMan, Great Interview
So detailed conversation 🔥
Learnt some good things, good interview.
that intro~~~~ if only this dude knows how extra ordinary his works are~~!!!!!! genius
pure gold... pure. gold. Thank you
I can tell by this guys tone he needs thrill in his life lol absolute genius none the less wish I knew people like you in real life to chat with and learn from. This interview will have to do for now🤝
Although,,, Thrill seekers typically just look for RISK, not risk management.
that beat go hard
It really does.
Aron u nailed it.
u r Awesom
I wish i could talk to this guy every single day. This guy definitely played a pretty high level of poker. #evslave
Great dude
The insights!
Aaron is a fantastic host he always ask the most detailed questions 🔥
Van Tharps material goes very in line with what is being said here
100% This is one of Bitfinex market makers
Can you get back Rob the discovery trader guy for a second episode. I wanna know some more about his concept that trading entries are not all that important, but the risk model and the loot being the most important. I find his episode very compelling. Frankly groundbreaking as well. I am sure he was not talking about random entries as in the Thorpe model. Strategically, I can see a trade almost anywhere on a chart being valid.
entries are not all that important? WRONG ! DECISIVE IN CALCULATING YOURS ODDS/SLOSS
Then you should enter at every corner or the chart
2018...and what this guy said now makes sense. Makes you think most people that comment in here don't know nothing :-).
How many of your trades did you get stopped out on that became a potential massive win? You were right but just took the trade in the wrong place. This happens to 90 percent of traders so sometimes you wonder if you're not trading to just be stopped out.
"...AOL instant messanger..." people still use that lol
great interview great information
thanks Aaron
55:50
1:02:48 on the money.
Hi Aaron, excelent interview. Unfortunatelly I've lost many parts because I'm not a English native speaker. Could you make subtitles avaiable, please? Thanks mate, CWT is one of bests channels about trading.
Miss Aaron hope he is ok❤
Everything suits different people set your trading plan to suit you.
MAKE YOUR OWN RISK MODEL
Swing traders,trend traders always hate scalpers , scalpers hate swing ,trend traders :D it doesnt matter! If you are just making money :)
Can anyone suggest a good article/book on risk management and how to incorporate that into real life trading. Familiar with the 1 percent risk rule but how to do it real life trading with scaling up/down in a trade. Any leads will be appreciated.
Risk management isn’t just about position sizing. What other factors can you control?
Cream rises to the top... Ultimate
Larry Hite once said that if you don't manage your risk they will carry you out! I think he was right
MESSAGE IS: MAKE YOUR OWN RISK MODELS AND KNOW YOUR ODDS
up 304k, it's actually common sense > cut losses quickly, you're either right or wrong in your hypothesis
I hear him playing with poker chips in the background.
42:00
I contacted the Discovery Trading Group and they say Rob is a Intraday Swing Trader but what Rob describes here indicates he’s a straight up scalper the same way market makers are . Which is it?
40:28 I disagree with the "rendering it obsolete theory" There will always be short squeezes, and other crowd behavior type setups that will always exist.
Maybe with cryptos for the moment lol, but if there is such a thing in a real market, every other good trader will get on these setups and squeeze your own profit
He’s just talking about market inefficiencies , not short squeezes never happening again
@@alexneil394 Short squeezes happen everyday. In fact many small cap low float traders will run screens in the premarket for stocks that are gapping up, looking specifically for squeeze plays. The whole $GME was a massive squeeze, but smaller ones happen all the time.
Does blockchain backed securities and AI delivery make this message null and void?
Aussie Aussie Aussie !
🍻
Valuable... But for some reason I feel depressed now
asen ahabaev maybe because it's not as easy and sexy as these "gurus" on the Internet have made it seem to be. Just means twice the work
And learning to adapt.
Asen: When I saw your comment before listening to the audio (he doesn't even have his picture) I chuckled and smiled, now I feel worse than depressed: At 31:00 minutes, what use is this to a regular stock market trader is Rob is speaking about high priced contracts in other esoteric markets. Moreover, how is his Gibberish and nebulous concepts going to provide concrete substance for which a "quant" (computer robot) would need considering it would not understand his visceral mercurial whims?
have you heard of the turtle trader?
@@eddyvideostar What does his picture matter? You addicted to images or something? He could be 900 lbs for all I care and eat cheetos all day long. If what he says makes sense, and I can work it in to improve as a trader ... then who gives a crap what he looks like? Shallow much? And gibberish? These are the same concepts that Ivey and D-Negs (if you are so addicted to 'images' of people, listen to either one of them) ... discuss. Maybe you don't have the education level necessary to understand it?
33:19 bookmark
No facebook here! Discord maybe istead o facebook?
thanx AARON
PLEASE EANBLE AUTO-GENERATED TRANSCRIPT FOR ALL VIDEOS
SOME OF YOUR AUDIENCE ARE NOT NATIVE AMERICAN AND HAVE PROBLEM TO GET COMPLETE MASSAGE OF VIDEOS
GOOD LUCK
I'm sorry this guy is spitting gems left and right how does Aaron not get excited. It's nice that he let's the guys talk but he isnt very engaging. It's like he isnt even listening.
this sounds like SBF
10:42
45
50
cant agree that risk management is the most important thing . It is important but if you cant generate good ideas risk management is useless. Its really hard to say what is the most important thing really
Bankroll management
26
30
So...just don't be a retail trader?? What is the massage here? Are there any solutions ?
Manage your risk; don't be results oriented. There are no shortcuts. Entry is important, but managing your risk once in the trade is more important.
“Entry doesn’t matter”??? Part of the risk equation is based off your entry. If you have a bad entry you will max out your risk and therefore lose money!
Your last statement; *"If you have a bad entry you will max out your risk and therefore lose money!"* is just not [always] true. At least not within any decent risk (and/or _money_ ) management system (ie. position sizing, etc.)....
*Technically*, it's true that **_'part of the risk equation *[CAN]_*_ be based off your entry'_ , but it's just BY FAR the SMALLEST part of the risk equation; small enough that it can be effectively ignored without significant consequence, and offers negligible gains statistically speaking. hence the hyberbole.
please add teh translation feature to your chaneels
So how to execute? Did I miss something here? I skipped listening.
Gech huui pp
This sounds to much like a prestige infomercials
ELOQUENT GIBBERISH!
Just say it. You didn't have the education level necessary to understand the conversation.
37:49 52:13
This guy has obvipusly not seen ES bounce off every $100 level it encounters.
hes pretty much like shits rigged...good luck retail lol.
+Brokanglass115, hah! I guess I could see how you might've got that impression.
31:00 minutes: He speaks this elaborate BS about every other esoteric markets -- but doesn't know if anything is applicable to the stock market! Something is not right with this guy, so much so he wants to remain anonymous and feel the YT listeners with sophisticated sounding rigmarole. He sounds fishy to me. The theme is risk management, yet, I haven't received any information from him in this regard.
Too much talking
Let me guess you wanted to see a chart and some live trades eh
Ok...why is this guy anonymous? Hiding from whom or what? The only thing I take from this is that you don't stand a chance unless you join his payed service. Thumbs down on this one...
Why does his actual name matter. Dear lord, there could be a thousand reasons he chooses to stay anonymous. SFO's almost require it of their people, just to the very nature of SFO's, could be in the charter, a million things. Don't need to know, don't need to care who he is. Been a member of DTG for what seems like forever now, and the value, is that the _facts_ of what DTG preaches, is what can't be disputed. If they discuss realities that can't be disputed ... then who gives a flying fig if he's 900 lbs and eats cheetos all day long. All I care about is trying to improve as a trader. Oh, and as a member of DTG; and having been a member of DTG? Rob doesn't own DTG. Never has. He's a member. Without question the most active member as he's made it a home of his. But he doesn't own it.
You lost me at three minutes and six seconds bye
so bad what he says, incorrect
gambling is a sin btw
How is it incorrect?
@@AirelonTrading can't remember currently ufortunately, something he said. a lot of these ppl make claims they don't know anything about (or think they know)
a whole of bullshit and very general stuff. This anonymous guy call Rob obviously does not want to show his face or share his secrets.
He just handed out his " secrets ". What are you talking about? Chip management as applied to trading. Bankroll management as applied to trading. An iterative process and then looking at the results of that, just like any professional gambler like Ivey or D-Negs ...