101 – Regulating Emotions in Trading with Houston Truong

07 Mar, 2016 / By: Brandon Clay

Houston Truong on trading psychology, regulating his emotions, coaching traders, and making a living by trading for 10 years.

houston-truong

 


tradimo logoToday we’ve got a big announcement from our partner tradimo.com. At learn.tradimo.com, you can now find exclusive video learning courses from some of the world’s top traders. Some of these courses even provide a certificate and exclusive career access to full-time trading jobs in investment banks. Others are great for beginners or help you learn about a special topic, like scalping. This starts this week on Wednesday, March 9th – two days after the release of this podcast. For more information check out learn.tradimo.com.

 


Houston Truong has been trading for about 10 years. He runs a trading blog http://thetradingedge.org, where he focuses on trading setups and trading psychology. He hails from Montreal, Canada, where he lives with his wife and two children.

Best Trading Advice

“Your relationship with money can probably best summarize by describing your best relationship and your worst relationship.” -Michael Martin

Podcast Highlights

  • Cryptocurrencies
  • Regulating your emotions
  • System with an edge
  • Solid methodology
  • Solid trading psychology
  • Monitoring your heart rate when trading

From the Trader’s Story

“Trading is something you can do, but to become a trader is something you have to become.”

“Trading requires a brutal self-honesty, really, really good personal awareness, and some very, very deep humility.”

“As a trader, you want to be watching your physical body while you trade.”

“Inside your trading plan, there has to be some elements in there where you’re documenting how you are going to react under different emotional circumstances based upon certain decision points in your trading.”

Newer Trader Mistakes

“Having a gambler’s mindset.”

“People majoring in the minors.”

Parting Advice

“You need to be able to disassociate you the trader from the system you trade.”

Resources Mentioned by Trader

The Trading Edge

Interactive Brokers

AmiBroker

NINJATRADER

TradingView

Favorite Trading Book

Contact:

The Trading Edge

@RealTradingEdge

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I enjoyed that discussion with Houston Truong. He’s a measured guy with a full-orbed perspective on the markets. One of the things I liked hearing was Houston’s perspective on coaching. He’s especially keen on coaching in very small groups and what sort of benefit there is for students…

And I really do believe in that individualized approach to coaching. That’s why I never work with more than 3-4 traders at a time. My coaching practice is very small, I started it this past year, and I really have to work with that trader to see how they’re showing up in the world. And what you see is there is no difference between the person showing up in the world and showing up in trading. If you have a lot of issues with fear, outside of trading, you’re going to bring that into trading. A lot of this you can only catch as a coach after you’ve worked with that person after you’ve had a chance to express their trades…and eventually once you get to know the person, well I want to challenge you here. You say you’re doing it this way, but what I actually see is you’re showing up scared.

That’s pretty cool. Not only does the trader get to trade under, in this case, Houston’s supervision, but Houston can diagnose the trader’s personality issues by monitoring their trading. And thus, help the trader. Sometimes it takes a little outside perspective to see where we’re missing something. Sometimes it takes a coach.

Don’t hear me wrong. I’m not saying go hire Houston. You can if you want and I’m sure it will be a good experience, but that’s not the point. The point is the benefits of a good trading coach. They see things that we just can’t see because we’re too close to the situation. We are that fish in water that doesn’t know it’s wet. Sometimes we need that outside perspective to tell us we’re all wet.

Thank you, Houston, for your time and thank you guys for hanging with me on the podcast today. My hope is that it’s been a helpful conversation and useful for you and your trading – wherever you happen to be on your trading journey.

Before you go, our iTunes reviews have been a little light these past few weeks. We crossed the threshold of 100 ratings, but we’re still below 100 reviews. If you haven’t done so yet, head over to iTunes and rate and review this podcast. That helps us reach more newer and aspiring traders.

Until next time when we talk about tweaking your trading.

All the best!