Tim Racette is teaching a trading workshop at The Traders Expo New York this coming weekend/week. In this interview, we talk about his trading methods, how he finds great retracement and breakout opportunities and why his thought processes and mental approach to the markets is so critical to his success as a trader. Register for his session free at: http://www.NewYorkTradersExpo.com.
Play in Windows Media format
Play in RealPlayer format
Play mp3 stream
Direct link to mp3 file
Tim Bourquin: Hello everybody and welcome back. Thanks for joining me for another interview on Trader Talk podcast of MoneyShow.com. My guest today is Tim Racette of EminiMind.com. He's also going to be a speaker at the upcoming New York trader's Expo this coming weekend and week over the President's Day holiday. We're going to talk to Tim about how he trades and what he's going to be talking about in his session as well. So first of all, Tim, thanks for joining me on Skype today.
Tim Racette: Thanks for having me, Tim.
Tim Bourquin: All right. Let's talk about your Expo session first because I know the New York show is always a great one. It's the biggest one of the year and you've got a session there at the show. What are you going to be talking about?
Tim Racette: Yeah. The topic for my presentation is going to be 10 Steps to Developing a Winning Trader's Mindset. So this is actually my first time speaking in New York. I've had the pleasure to speak a couple of times out in Vegas, but I'm really excited to see what the New York Expo has to offer.
Tim Bourquin: All right, great. Well we don't want to go through your whole presentation, but I want to ask you about some of those things. So first of all why a trader mindset? What is it about mindset that has an effect on how you do as a trader?
Tim Racette: Well, I think the mindset and whether it's in trading or investing, it's really our mindset that acts as a foundation especially in trading. You know, I think it was Yogi Berra who said baseball is 90% mental and the other half is physical. Well, I believe that in trading, trading is 90% mental and the other half is execution. So with developing a talk for The Trader's Expos, at least the past couple of years, I've tried not to single any one group out. So I felt that this was a topic that is the very foundation to my own trading and whether you're a swing trader or day trader or whatever style you're trading, I felt that it would be a very applicable talk and have a lot of insightful lessons from a lot of different traders that I've studied over the years. I'll try to bring in as much from my own trading as I can.
Tim Bourquin: Can we take one of them and maybe talk about it and give people a little bit of a teaser about your session?
Tim Racette: Yeah, absolutely. I think one of the most important things—so you know the talk is titled 10 Steps so I've got 10 various steps or principles, if you will. One of the more important things in trading, I found, is that it's really important to be able to accept your mistakes. You really need to be able to just check your ego at the door and accept that you'll be wrong. I really think that mistakes provide the path to your improvement, and a lot of people and speaking from my past experience, try to cover up our mistakes and really not embrace them in a way that provides exploration. So if you make a significant mistake in your trading, write it down and find a way to learn from it. I think that the mistakes that we do make should be embraced as learning opportunities and not necessarily bad things in and of themselves. So that's one of the sections that I'm going to elaborate on trading mistakes.
Tim Bourquin: One of the things I ask traders all the time and I get about a 50/50 split on the answer to this, is you hear sometimes that we should always know when we take a loss as a trader what happened, what we did wrong, and then the other half people say you can't always do that. Sometimes you're just going to be wrong and it's just the way the market is. Which side do you come down on?
Tim Racette: I definitely believe that you can have a good trade that ends up being a loser. You know, you never know what the outcome of any individual trade is going to be. You try to structure it in a way so that over a larger statistical set, you produce a winning, a positive expectancy and profitable trades over time. But the way I look at it is, if there is a valid setup that meets my criteria, I'm going to take the trade and if it's a winner great, if it's a loser and I followed my rules and entered the trade according to my criteria then that's a good trade.
NEXT PAGE: Details of Tim’s Strategy