164: “Move your stop further away!” (@MikeToma)
“Move your stop further away!”
In episode 164 of the Desire to Trade Podcast, I am sitting down with professional trader Michael Toma to discuss the topic of risk management.
A very big topic that a trader has to understand is that of risk management, and for the longest time, I didn’t know too much about risk management, what it’s about. I thought it was only about risking money on a trade to be able to trade for the long-term—but there’s a lot more to it.
Michael is the one who has probably studied this topic the most. Traders like him kind of have a way of doing things that are special and so I wanted to bring him back. Michael has been in episode 40 of the podcast as well as a few episodes after that.
In this podcast, we went even broader in that episode to talk not only about risk management but also trading strategies, how he trades, what things he looks for and how he has been able to get a lot of money trading for other people.
Topics Covered In This Episode
- Who Michael Toma is and what he does 2:11
- Combining trading and working at the same time 3:30
- The things that people do wrong with “risk” 4:56
- What he recommends to someone starting out on how to put their stop when they’re wrong 8:00
- How people should plan the risk around trading 9:55
- Strategies that Michael Toma uses in forex 12:04
- The benefits in moving from forex to futures trading 14:43
- How people should start in creating a strategy for forex or futures, and how they should combine things 16:23
- The amount of value you get from just talking to people 17:53
- What kind of work Michael Toma does before to make sure he is good to go into trading 18:32
- How Michael Toma reacts when he makes a mistake in trading 20:36
- The action steps you have to put in place to get to 95% precision 22:41
- Putting in the time and effort to find ways to improve 24:39
- Back testing a trading strategy, doing the grunt work and finding the ways to make it better 25:47
- Michael Toma’s three methods 29:00
- Taking the time to learn and use market profile 31:30
- How Michael’s trading was before using market profile 33:54
- Why not to use MACD or most indicators as signals 35:25
- How Michael Toma started to trade for other people 38:16
- How Michael Toma presents what he trades for 41:50
- Traveling around the world to meet investors 43:33
- How the trading world has evolved 44:22
- Developing different ways to make money is important 45:57
- Being fulfilled while traveling, trading and do what you love 47:19
- One thing people should apply ASAP 49:00
DesireToTRADE Top Resources
- Desire To TRADE Forex Trader Community (free group!)
- Complete Price Action Strategy Checklist (free checklist!)
- One-Page Trading Plan (free template!)
- DesireToTRADE Academy (exclusive training program)
How To Find Michael Toma?
What is one thing you are going to implement after listening to this podcast episode? Leave a comment below, or join me in the Facebook group!