I wanted to share this fantastic episode of the Odd Lots podcast from Bloomberg. I think it’s essential listening for traders and investors.
The podcast features an interview with Peter Borish, who you may recognise as the former right-hand man of Paul Tudor Jones. He famously appeared in the documentary ‘Trader’ (you can see clips in our Legends of Trading episode about PTJ).
For years, it was pretty quiet in markets. Stocks kept making new highs and volatility drifted to fresh lows. That’s changed in recent months and there’s now plenty to keep investors busy, including fears of a trade war and signs that the economy be nearing the end of its cycle. On this week’s episode of the podcast, we speak with Peter Borish, a veteran investor and trader (and former Odd Lots guest), who is currently chief strategist at the Quad Group. He talks about how he approaches trading in the current environment and the indicators that he tracks in order to understand what the market is trying to tell us.
You can listen to the episode here: Odd Lots – How to Listen to What the Market is Trying to Tell You
Here are a few of my favourite quotes from the episode that reinforce the concepts we teach to new traders.
“Losers average losers. Because ‘averaging down’ works until it doesn’t… and then you’re out of business”
“The test of an experienced trader is: when they don’t understand anything, they don’t participate”
“Our job is to try to make money. It is not, to try to be right”
Those are just a few soundbites from Peter Borish, but the entire episode was crammed full of insights about how to approach the fundamentals of the market.