Tom Sosnoff - Taking 100’s of Trades a Day Is Easy
1. High Frequency Trading Mindset
Tom shared his extensive experience in trading, highlighting that he doesn't just manage a handful of positions but often juggles hundreds at a time. He described himself as a 'junkie' for trading, acknowledging that he enjoys executing at least 100 trades a day. This mindset reflects a passion for trading that drives him to remain actively engaged with the markets, underscoring the importance of having a genuine love for what you do.
2. Longevity as a Key to Success
According to Tom, one of the most significant traits that contributed to his success is longevity. He emphasized that successful entrepreneurs often do not stop to enjoy their victories, always striving for more. This persistence can be a double-edged sword, as it often results in sacrifices in personal life, but he believes that this relentless pursuit is essential for achieving lasting success in any field, particularly in trading.
3. Understanding Retail Trader Challenges
Tom expressed frustration over the misconceptions surrounding retail traders, particularly regarding their supposed lack of market insight compared to politicians like Nancy Pelosi. He argued that if everyone, including politicians, engaged in trading, they would better understand market intricacies and challenges, thus demystifying trading and promoting a healthier view of it. His advocacy for more people participating in trading underscores the need for widespread financial literacy.
4. Importance of Teaching and Community
Tom believes that the greatest strength of his trading platforms, Thinkorswim and Tasty Trade, stems from their commitment to education and community building. By providing valuable insights and teaching resources without any hidden agendas or sales pitches, they foster an environment where retail traders can learn and engage without feeling exploited. This approach has made their platforms highly successful and user-friendly.
5. Emphasizing Risk Management
In his discussions about risk management, Tom recommended a strategy where traders should allocate capital according to market volatility, focusing on not exceeding a certain percentage per trade. This method aims to diversify risk and minimize potential losses, illustrating the importance of prudent risk management practices that every retail trader should adopt in their trading strategies.
6. The Role of Passion in Trading
Tom pointed out that passion is vital for success in trading. Without it, he argues, one cannot expect to withstand the emotional roller coasters that accompany market fluctuations. His own enduring enthusiasm for trading has allowed him to continually learn, adapt, and keep pushing the boundaries of what he can achieve in the financial markets.
