Elite Trader Insights: Brian Lee
Episode 4: Esports Pro Attains High Score Playing the Stock Market — Brian Lee
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.
Brian Lee
In 2017, Brian Lee—a former esports professional—took a leap into day trading equities. Having since developed a talent for shorting the backside of inflated moves, paired with a great emphasis on risk management, Brian’s experienced tremendous growth, both financially and in terms of market knowledge.
In this chat with Brian, CWT’s go over; his first year challenges and overcoming such challenges, the time he lost it all and how he bounced back, his most frequently traded setup, and a detailed discussion about the use of R as a risk model, plus more…
Here are some key learnings from the interview:
The Hardest Year: Embrace Mistakes and Learn
Brian candidly admits, "The first year of trading is the hardest. You will make a lot of mistakes and lose money." This reality check is crucial for aspiring traders. However, he emphasizes that resilience and learning from mistakes are key to eventual success.
Risk Management: A Traders' Lifeline
He passionately advocates for risk management, stating, "Don't risk too much money on any one trade. Use a risk management system that helps you to control your losses." He vividly recalls losing all his money in his first year due to poor risk management. This experience underscores the importance of establishing a disciplined approach to risk mitigation.
The Process Over Results: A Formula for Success
Brian emphasizes the importance of focusing on the trading process rather than obsessing over immediate results. He advises, "Focus on the process, not the results. If you trade well, the results will follow." This mindset shift encourages traders to prioritize sound trading principles and let the results follow naturally.
Patience: The Foundation of a Successful Trader
Brian highlights the virtue of patience in trading, stating, "Be patient. It takes time to become a successful trader." He shares his personal journey, which took three years to achieve consistent profitability. This underscores the need for patience, persistence, and continuous learning in the trading world.
Emotions at Bay: A Business, Not a Hobby
He stresses the importance of emotional detachment in trading, emphasizing, "Don't get emotional. Trading is a business, not a hobby." He candidly shares his experiences of letting emotions cloud his judgment, leading to costly mistakes. This reinforces the need for a disciplined and rational approach to trading decisions.
Personality and Risk Tolerance: Finding Your Fit
Brian Lee advocates for finding a trading style that aligns with one's personality and risk tolerance. He explains, "Find a trading style that suits your personality and risk tolerance." This personalized approach ensures that traders choose strategies they are comfortable with and can execute effectively.
Backtesting: Proving Your Strategies
Brian underscores the importance of backtesting trading strategies before risking real money. He advises, "Backtest your strategies before trading them with real money." Backtesting allows traders to evaluate the performance of their strategies under historical market conditions, providing valuable insights before deploying them in the live market.
Trading Journal: Tracking Progress and Insights
Brian Lee emphasizes the value of maintaining a trading journal, stating, "Use a trading journal to track your progress." A trading journal serves as a valuable tool for documenting trades, analyzing decisions, and identifying areas for improvement.
Learning from Peers: A Collective Wisdom
Brian Lee encourages aspiring traders to learn from experienced traders, sharing, "Learn from other traders. There are many resources available online and in libraries." Tapping into the knowledge and experiences of seasoned traders can accelerate learning and provide valuable insights.
Perseverance: The Reward of a Challenging Profession
Brian concludes with a message of perseverance, stating, "Don't give up. Trading is a challenging but rewarding profession." He acknowledges the challenges inherent in trading but emphasizes the satisfaction and potential rewards that come with success.
In summary, in this CWT interview, Brian Lee delves into the intricacies of trading, offering valuable lessons for both aspiring and experienced traders. He candidly shares his own experiences, highlighting the importance of risk management, patience, and emotional discipline. Lee emphasizes the need for a systematic approach to trading, focusing on the process rather than chasing quick results. He encourages traders to learn from their mistakes, backtest their strategies, and continuously seek knowledge from experienced traders. Throughout the interview, Lee underscores the value of perseverance, reminding listeners that trading is a challenging but rewarding profession for those who are dedicated and committed to learning and refining their craft.
Cheers
Marto