Andrew Swanscott’s Top Five Tips from his Nick Radge Interview

Here are Andrew Swanscott’s Top Five Tips from his Nick Radge Interview:

1) The key to being comfortable with a strategy is being first and foremost. You need to understand why your strategy makes money, and in what conditions it won’t get into trouble. This can make it easier to handle when the inevitable draw down appears.

2) The difference between very successful traders and everyone else is the ability to apply the strategy over the longer term. You often see people jumping from strategy to strategy without giving each strategy enough time for the edge to play up. Whereas some other traders who’ve been around for twenty, thirty, forty plus years, are still trading the same or very similar strategies that they have all along.

3) A great quote I loved. “Next 1000 trades”. One trade is not going to make or break you, there’s always a trade around the corner and everyone can do it. You’ve just got to apply yourself over the longer term. “Next 1000 trades”, that’s a great one to remember.

4) People want the strategy that is going to work well in all markets all of the time. Guess what? That doesn’t exist.

5) I really enjoyed the way Nick copes with draw down or self doubt. He looks at the experiences and data provided by those managers who have been in the game for twenty, thirty, forty years, and understands their journey can give you the confidence that what you’re doing will be okay just by looking at the bigger picture. So that was a good insight as well.