Aaron Brown Interview Part Two - Chat With Traders Episode 150

Hello team, welcome to another episode of Chat With Traders. If you weren’t around last week, this is the second part of my interview with Aaron Brown. Dare I say this part of the interview may be better than the first part.

Don’t worry if you missed last week’s part one. You’re not going to be totally confused and I think you’ll be able to follow along. But if you’re interested in listening to part one first, head over to chatwithtraders.com/149. Also, check out chatwithtraders.com/150 for show notes from this episode.

In case you forget, Aaron Brown is a highly respected risk manager and worked in risk management for around 30 years. For the past 10 years he has been the risk manager for AQR, a $200 billion quant fund.

In part two of our interview, you’ll get some deeper insights into how you can better manage and understand risk.

We also chat about how to leave less money on the table, black swans, high win rate versus low win rate strategies, how you may be accidentally killing opportunities and questions you need to ask.

I really enjoyed my chat with Aaron and I truly believe there’s a lot you can learn from him. I also really enjoyed how Aaron pushed me back on some of the questions I asked because I may have missed the point somewhat. I appreciated him redirecting the conversation to focus on better ways to articulate risk.

Without further ado, here’s lesson in risk taking with Aaron Brown, part two.

What’s Covered in This Interview:

Different methods people frame risk to express a negative or positive opinion.
Why traders do not have enough focus on the core objective when it comes to trading.
What has helped Aaron become successful as a risk manager and why traders should start taking risks at a young age.
What the characteristics of a “risk avoider”are.
Two scenarios traders should think about before trading and the questions to ask when thinking about risk.
Aaron’s thoughts on whether it’s better to have a high win rate strategy from a risk perspective as well how to figure out a profit/payout ratio.
How trades can protect themselves from the unknown, black swans and killing opportunities.