My guest today is the legendary trader, Peter Brandt has been trading since 1975, which might even be before you were born. The amazing thing is that Peter has achieved a compounding annual growth rate of approximately 42%. His best year was well over 600%.
Given that, there were definitely some low points, where three of which hadndrawdowns of less than 8%.
Peter discusses his early years working at the Chicago Board of Trade as well as the roots of his trading, which is classical charting patterns. Peter also dives into how he feels about high frequency trading operations, common misconceptions about super traders, and why he assumes every trade will be at a loss.
What’s Covered in This Interview:
- How Peter supported himself when he started out trading.
- Peter’s advice to other full-time traders who don’t have a track record of profitability.
- Peter’s trading methodology using classical charting patterns.
- How Peter’s methods have changed over the many years of trading.
- Why Peter only uses daily charts for timing and uses weekly and monthly bar charts for pattern recognition.
- Why success as a trader is a mix of luck and hard work, and other common misconceptions of successful traders.
- Peter’s views on high frequency trading operations and why they’re unethical and should be ruled out due to their unfair advantage.
- Why Peter assumes that every trade he makes will lose, and how it can help him to mitigate risk.
Links and Resources:
- Technical Analysis and Stock Market Profits – This book by Richard Schabacker was one of the original books about classical charting patterns.
- Technical Analysis of Stock Trends – This book by Edwards & Magee was the first one Peter read about classical charting patterns and many of his methods came from this book.
- Diary of a Professional Commodity Trader – There are many lessons inside this real time journal by Peter Brandt.
- Trading Lessons Learned by Factor During The Years – Peter’s trading rules mentioned near the end of the interview. PeterLBrandt.com – Peter’s personal website where you can learn more about him and how he trades.
- @PeterLBrandt – Follow Peter on Twitter, this is where he is most active.
- @PeterLBrandt – Follow Peter on Stocktwits.
