Interview with Mike Lauderdale
Could you tell us a little about yourself?
I am a trader myself with a Ph.D. in counseling/psychology.
How did you get started trading?
I started trading equities as a reaction to September 11, 2001, then I began trading forex and futures.
How long have you been trading now?
12 years.
What do you like best about trading?
Freedom!
What markets do you trade?
Primarily YM, 6E and CL these days.
What style of trading do you use?
Scalping and swing trading.
What have been the biggest influences on your development as a trader?
Brett Steenbarger
What is the one biggest lesson that you have learnt since starting trading?
That life and trading usually go hand in hand.
How did you get interested in coaching other traders?
Roger Felton convinced me to do so.
Do you focus on coaching of one particular area of trading, e.g. risk management / psychology or finding trades?
My focus is on trading as a complete process. I teach my clients all steps from trade discovery, trade entry and trade management through to trade exit, and I also include psychological coaching. You cannot teach just on element in isolation of all others, or you are not teaching someone to “trade”. I don’t like to use the term “trading system” here, since I think it has been abused by too many educators who teach you a couple of “strategies” and call that a “system”. A trading system is a complete process which includes an understanding of money management and the dispassionate application of your trading process.
What sort of results do your clients get after coaching with you?
They first quit losing money, protecting their account and then build a well developed system. At least triple the chance of profitability.
What is the most satisfying part of coaching traders?
Their development as traders and as people.
What is the biggest but most easily fixed mistake that you see traders make?
Not doing the work to make their system their own.
Do you recommend journals or other record keeping as an important part of trading?
Absolutely a must.
What are the most common issues that you see in your clients that prevent them from becoming better traders?
- Being unable to take personal responsibility for their trading decisions.
- Lacking the discipline to implement a planned approach to their trading.
- Being unable to develop the emotional detachment required to successfully trade.
- Not accepting that trading is a long-term enterprise and that successful trading comes from cumulative experience over a number of years.
What advice would you give traders who are just starting out?
Trade in sim until their system is proven, then begin with one contract and let their system earn more.
What 3 books do you recommend traders read?
- Trading for a Living – Dr. Alexander Elder
- The Daily Trading Coach – Brett Steenbarger
- Trade Your Way to Financial Freedom – Van K. Tharp
Any other advice or wisdom from your experience in trading that you could share?
Most psychological issues come out of an inadequately proven system.