The Pro’s Process - Anthony Crudele

The eighth in my series of posts asking Pro Traders about their psychological processes.  Delving a little into how it feels to them when trading.  The good and the bad.  How this has changed over time and what preparation they do mentally for performing as a trader.

One of the key features for me was that I wanted traders with experience who have been through the mill over the years and of course those who were kind enough to broach this subject publicly.  This I hope gives developing traders more to learn from.  

I’m very fortunate to have a great line up and this week is: 

Trader: Anthony Crudele

1) How long have you been trading?

14 years 

2) What style of trading / investing do you practice (technically driven, fundamental, systematic, a combination etc)?

I’m a complete day trader.  My strategy uses the current volatility for strategy signals.  I don’t live and die by every strategy signal that I get.  The strategy signals are support and resistance levels.  Once I get the levels from strategy I use my market awareness to decide big, small, or not all. 

3) How do you feel when a trade goes against you?

I trade ranges not one price.  So when a trade is against me and still in my execution range I am deciding to either add to position or decrease the size of my position. I have excepted my loss before I even get into the trade because I believe a trade is not wrong until the stop is triggered.

4) How do you feel when a trade goes for you?

Until I’m out I remain focused on whats happening around me. Once again…adding or decreasing my position size.  Risk per trade allows me to accept the loss before I even begin to execute the trade.  This gives me the ability to focus on whats happening in the market.

5) How have these feelings changed over your trading career?  (Can you recall how you originally used to feel and elaborate on how this has changed over time?)

Initially I was a cowboy and felt nothing but greed and aggression.  Then I was humbled and I started to feel hesitation and anxiety in every trade…I turned into an over trader…a scared trader.  Once I buckled down and created a risk per trade and allowed my contract size to vary based upon the risk of the trade…then I was able to focus on the market and remove feelings.  I was finally a trader.

6) Do you have any practices that you do away from the trading screen to help you mentally and emotionally handle trading?

Stay in shape.  I work out 4 days a week.  Golf or any other sport 2 days.  Eat right and get right amount of sleep.  On the mental side I got rid of computers in my house…no more trading from home.  When I am not trading I focus on living my life and not trading.  I need that separation.   I also cook a lot.

7) Have you always done this? 

No.  I was lazy before.  I started to feel anxiety and I hated it more than anything.  I had to fix it and it started with fixing my physical shape. Then I learned to separate my trading life from personal life.  Once I figured out how to do both of those things my focus dramatically increased. 

8) If not, how have you learnt to deal with the feelings that come up when trading?

When feelings come up in trading I just flat out walk away.  I go over my trading rules and regain my focus.  Traders need to know when to stop trading…when feelings come up while im trading it is a big flag to take a break.

9) Can you describe a time in your trading life which really rammed home the point that so much of trading comes down to psychological factors?

When I was walking off the CME floor after a bad day of trading and I felt like I was about to die.  I went right to the nurse telling her that I felt pain in my chest and nausea.  They checked me out and said I was fine.  I left the building and it went away.  

I never blamed the market, but I couldn’t figure out why I felt this way when I loved the business so much.  I realized that I was hurting myself because I didn’t have the proper mindset.I thought I could just trade my way out of it, but all I did was create a bigger mental hole.  I had to have the proper process from mentality to preparation to execution if I was going to make it.  

10) If you could give aspiring traders one piece of advice about emotionally handling the market what would it be?

When traders first start to trade they only think about making money and they forget the most important part of trading…managing the risk.  The number one thing that a trader can control is their risk. Traders need to execute their trades with a risk per day and per trade…then they can approach the market with a clear head.

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I’d like to thank Anthony Crudele for sharing about the way he tackles the market from an emotional / mental side of things and for his willingness to allow me to post this as a free resource in the hope that traders who have been in the market for less time or are thinking of entering can perhaps pick up some A-HA’s.

If you are interested in finding more out about Anthony Crudele you can find him:

On twitter: @EminiExecutors

At his firms website: http://eminiexecutors.com/

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Previously in the series:

Charles Kirk - read it…..here

Matt Davio - read it…..here

David Blair - read it….here

Mike Bellafiore - read it….here

Mark Holstead - read it ….here

Brian Shannon - read it…. here

Mike Dever - read it…. here

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Disclaimer: Embrace The Trend / Richard Chignell does not provide investment, financial or product advice.  I trade my own capital exclusively.  I eat my own cooking as should you.  If you are going to trade / invest it’s at your own risk and you must take responsibility for your actions.