I have to give Kudos to Rafael at DayTrader Pro for this interview with Gary Norden - mostly because I've never seen anyone squeeze so much information from Gary in one session. Great topics covered and great counter-questions from Rafael on Gary's answers. It's in English with Portuguese subtitles.
- Up to 0:50 is Portuguese, after that it's English with Portuguese subtitles.
- How professionals can spot fake vendors "Those that have been traders our whole lives, we can tell the sell side very quickly, The things they say and the way they talk a professional trader can see straight away, that they are not a trader. New Retail traders cannot tell the difference."
- Behavioral finance - and whether it fits TA or disproves it. Gary discusses heuristic shortcuts humans make (e.g. tiger, run) which served us well historically but don't help in trading. Gary discusses Representative Bias as an example.
- Random rewards, the outcome & the potential addiction to random rewards..
- The cycle of trader improvement. The impact of trading frequency.
- Gary's experience in the pits before screen trading existed and the difficulties pit traders had with early trading platforms. He discusses how he and a number of traders transitioned to screen trading when it started.
- The key differences/edges on the floor. Why Gary pines for the floor days & why the banks didn't like them.
- What a market maker actually is - what they do. The difference between the options pit market makers and the futures pit traders. Also discusses the Market Making in banks.
- How Gary and Jigsaw came to collarborate on the Market Making Manual.
- How Gary researched and created his book on Techincal Analysis.
- The difference between focusing on large trader activity vs picking off small trader activity.
- The parallels he sees with playing poker.