Independent Trader, Ex-Hedge Fund Trader
Record Date: 1/17/17
Today I spoke with a man who grew up in Queens in a blue collar family that always wanted to work on Wall Street. Straight out of college he got a job working on Wall Street with the mindset of being a sponge and learning everything he can about trading the markets.
He takes us through his journey to eventually becoming a head trader at a huge wall street hedge fund. His name is Al Sabogal.
Today Al and I had a great conversation about evolving his process over the years to adapt to the markets. We chatted about sector rotations and the importance of using them in your trading.
[bctt tweet="When you’re trading for a living, you have to respect risk more, because the downside hurts more than the upside helps.." username="alsabogal"]
We discussed the differences between trading for a living vs. trading on the side. Al is an awesome guy who proves that if you want something you can achieve it with hard work and dedication.
His story is something that will inspire all traders, and his insight on the topics we discussed today is invaluable.
- How his day-to-day trading has changed over the last 10 years.
- How Al uses sector rotations in his trading to find clues in the overall market.
- Trading for a living vs. trading on the side.
- How has your trading evolved over the years?
- I’ve tried to minimize my risk profile. I trade smaller, it gives me more patience for things to play out. I give myself time to be right now. I buy myself 3-4-5 months of time value instead of shorter time frames.
- Can you tell me the moment that trading just clicked for you?
- After 08 and 09 I got walloped in my positions. I became more process driven. I look to see the reactions at certain support levels. Waiting to see solid support is like the insurance that’s worth the cost.
- What’s the number 1 source you spend your time on?
- Favorite Book About Trading:
- Favorite Movie About Trading:
- Best Advice Ever Received About Trading:
- Respect the price. It’s okay to be wrong, but not okay to stay wrong.
- Advice to Give to Others About Trading:
- Trade smaller. Big moves take time to play out.
- “the harder you work, the luckier you get.. when you set your sights on a goal, your only obstacle is time…” 8:22
- “Over the years I’ve learn to have more respect for risk management…” 12:55
- “Trading for a living requires much bigger focus on risk management…” 22:06
- “When you’re trading for a living, you have to respect risk more, because the downside hurts more than the upside helps..” 23:00
- “You have to be willing to evolve and adapt as a trader over time.” 36:00
Relevant chart pertaining to guest’s comments: