Elite Trader Insights: Hans Dederle

Episode 11: Trading the open, and choosing quality over quantity

Each week we try to unlock the collective wisdom of the Trading Elite. Strategies and unique insights from hours of interviews with top traders, sliced into bite-sized pieces and delivered to your inbox for your pleasure.

Hans Dederle's journey from accounting to becoming a pivotal figure in options trading is a testament to his adaptability and eagerness to learn. Despite starting in a completely unrelated field, Hans's curiosity and mentorship from a former Wall Street broker ignited his passion for the markets. His philosophy centers on making fewer, but more impactful trades, emphasizing that "Money, Capital really is just a tool...the primary objective is to make profitable trades each and every time."

Key Learnings and Takeaways from the Interview

1. Quality Over Quantity:

Hans averages 1 to 3 trades per day, focusing on the first few hours of the session to capitalize on volatility. This approach allows him to maintain a high level of selectiveness, ensuring that each trade aligns perfectly with his strategy.

2. Primary Objective:

"Making money as a secondary objective and having a primary objective to consistently make good trades in line with your strategy," Hans remarks, highlighting the importance of detaching from the outcome and focusing on the process.

3. Simplify to Amplify:

Hans stresses the importance of simplicity in trading. Overcomplicating strategies with numerous indicators can lead to analysis paralysis. He relies on basic yet powerful indicators like price action and volume to guide his decisions.

4. Trading the Open:

Specializing in the most volatile part of the trading day, Hans leverages the initial movements by identifying reversals and capitalizing on the extreme price actions driven by market makers and retail emotions.

5. Adaptability:

Hans underlines the need for traders to adapt their strategies to market changes. Although his core approach has remained consistent, minor tweaks have been essential to stay aligned with evolving market dynamics.

6. Emotional Detachment:

"Emotion is the hardest thing to take out," Hans confesses. Achieving emotional detachment has been a significant factor in his success, allowing him to make decisions based on strategy rather than momentary feelings.

7. Discipline and Perseverance:

Persistence in following a well-tested strategy, even after a series of losses, is crucial. Hans encourages traders to refine their approach through practice and not to deviate from their system in pursuit of quick wins.

8. Learning from Losses:

Hans's journey included learning from blown accounts, reinforcing the importance of risk management and the dangers of emotional trading. Each setback served as a lesson in refining his approach to trading.

9. Leveraging Technology:

Despite the foundational role of mentorship in his career, Hans emphasizes the importance of self-education through available online resources, demonstrating the shift towards technology in trader education.

10. Community Engagement:

Hans advocates for connecting with the trading community via social media platforms like Twitter and Instagram. Sharing insights and learning from others can provide new perspectives and strategies.

Unique Perspective:

I agree wholeheartedly with the last point. I understand that many people see social media as ‘poisoning’ or negatively impacting their trading, however if you’re confident and consistent in your strategy, there is no better platform to meet and share ideas with like-minded people. Hans Dederle's story is a compelling reminder of the power of focus, discipline, and continuous learning in the pursuit of trading excellence. His approach, prioritizing quality over quantity and the strategic use of options trading, offers invaluable insights for day traders looking to refine their methods and mindset.

Cheers

Marto