Ep 92 – 5 Lessons From The World of Crude – Greg Newman
This week on episode 92 of the Two Blokes Trading podcast:
- Greg Newman, founding partner of Onyx Commodities, hits us with 5 ways to take your commodity trading to the next level.
- Tom kills 2 cars in one day.
- Brandon sets the stage for the forthcoming fundamentals and sentiment trading guide.
Greg Newman is a founding partner at Onyx Commodities http://www.onyxcommodities.com . They specialize in proprietary trading and market making in oil derivatives. Some of the firms traders includes fundamental and momentum traders, statistical analysis traders, and others who employ quantitative methods.
Onyx was founded with the spirit of innovation and entrepreneurialism as the key elements to their continued success as a firm.
Trade what you’re Trading!:
You must be aware of what underlying the Future trades against and therefore what you are reflecting on when you trade. It’s not enough to say you trade oil; you are trading a specific oil that comes from a specific location. I.e. Brent vs. Crude.
Risk Management is Everything!:
You risk management principles are what identifies you as a trader. You must systematically stick to your rules and criticise yourself when you break them. Learn from the best and stand on their shoulders.
Tradecraft, Tradecraft, Tradecraft!:
You are never right; you just gave yourself the best chance to make money in any trade you take. Stack probabilities with your trades rather than attempting ‘Guru’ timing.
Aggression and Conviction:
Don’t fall victim to bias and become part of the herd. Don’t trade someone elses playbook, your trade has to make sense to you. Particularly if you are intraday trading, so much is on timing so aggressive in entry (and exit!)
Having a Good Mental State:
Manage your 5 stages of grief (What I learned losing a million dollars). Meditate, take a walk, and decompress regularly. Keep perspective and understand that Ego is the Enemy.