What style of trading would you teach your son?

My son is currently 11 and he seems intrigued by watching me sit in the basement all day trading.

If he wished to pursue this field, I would teach him my various trading systems, bulk of which are short term in nature.

But I think the challenge with imparting your methods to any sort of apprentice is teaching them what to do when things go wrong. When is a drawdown too big? When do you shut something off or back on? When to change parameters? How to generate new ideas? Those are the things that need to be discovered through hard experience and cannot be spoon fed.
 
R1234 said:
But I think the challenge with imparting your methods to any sort of apprentice is teaching them what to do when things go wrong. When is a drawdown too big? When do you shut something off or back on? When to change parameters? How to generate new ideas? Those are the things that need to be discovered through hard experience and cannot be spoon fed.
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That's where a written trading plan comes in.
 
Rams Fan said:
He admits that he learned a lot from his dad, but the biggest takeaway wasn't about a particular strategy. Rather, it was how his dad approaches the market: it's a personality trait, Ryan said. There's a humility in his ways that allows him to remain flexible. If he enters a position and the stock turns against him, he's able to accept he was wrong and exit the position. It's not something you can learn from a book, he noted. Direct experience and multiple failures bring you to a realization that the market is like a beast you can't control and you have to be willing to bend when you're wrong, he added.
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This is a great reminder. Only people who have traded and built a trading system long enough can understand this.

Rams Fan said:
After studying business administration and graduating from The Master's University in 2016, he spent two years watching over his father's shoulder and learning how to trade. During that time, Ryan would learn to read a stock chart and review a company's fundamentals, including earnings reports.

"But these last four years, I have completely thrown the fundamentals out the window and I've 100% just traded based on the chart," Ryan said.

He has found that a company's story, such as its promise of earnings or good management, could cloud his judgment. So over the years, he has honed in on his own strategy, where he just focuses on the chart.
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Rams Fan said:
He doesn't go for the highly volatile stocks. Since he's a swing trader — which means he holds a stock for weeks or months at a time — he looks for stocks that have been moving sideways for a few weeks and then suddenly begin to increase in price. That increase can be anywhere from 20% to 100% in a couple of weeks. This move should be coupled with an increase in trading volume. It tells him that there's a sudden accumulation of interest.

He refers to this pattern as the calm before the storm. The stark contrast between no movement and then a sudden upswing or reversal indicates that there's a reason behind that shift and the stock could really start moving.

He never tries to buy the first move and never tries to sell on the last because you can't catch the bottom and you can't catch the peak price.
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It's similar methodology/belief that I learned from a stock proprietary trader for >20 years that retired few years back.

Rams Fan said:
Ryan doesn't recommend trying to mimic anyone else's strategy because each person operates in a different way. Instead, start trading and let yourself learn from your mistakes, he said. The market will teach you how to make money on your own. And when you lose money, you'll learn key lessons. You'll also realize that trading is constantly morphing you as a person, he added.

"I used to think, when I was learning from my dad, that there is only one way to invest and this is the only way that you can make a lot of money," Ryan said. "But it just turned out that my dad's style was not something that I was personally comfortable with. And so I just had to find my own way."
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Classic of learn from the master and modify it to suit you. He is very lucky though that he got a mentor and the mentor is his father. A mentor may hold back something, but a father will not hold back anything.
 
Options! There is a misconception that options are complex. I mean you dont need to go into Black-Sholes calculations in detail or greeks calculations in detail unless you are doing some esoteric Destriero stuff. Just the basics of greeks will be enough as basis. Options offer capital efficiency among other things.
 
Perspective said:
Options! There is a misconception that options are complex. I mean you dont need to go into Black-Sholes calculations in detail or greeks calculations in detail unless you are doing some esoteric Destriero stuff. Just the basics of greeks will be enough as basis. Options offer capital efficiency among other things.
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I think you need to understand how greeks will cause your options to move in price and how the greeks themselves move as you travel through price and time. If you get an intuitive understanding of this, you can find discretionary opportunities in vol.
 
David's faith said:
If you had a son who wanted to become a trader (of course after you tried convincing him not to do so, lol) what style of trading would you teach him? I mean besides of all the basics like risk/reward, kelly etc. Would you teach him price action trading? How to look for market inefficiencies (aka arbs), statistical/seasonal trading or slap him with the complexity of options strategies in Destriero and Tony Saliba style? Would you make him a scalper or even a swing trader?
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I would teach him how to teach trading, and not how to trade.
 
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