9 Trading Secrets From 45 Years in the Market

Summary

After four decades and over a million trades, an experienced market insider reveals nine crucial insights for traders. First, always prioritize liquidity by avoiding markets with wide bid-ask spreads and low volume, ensuring you control your trades. Second, demand access to all products and strategies from your brokerage, regardless of your account size. Third, be vigilant about overpriced data fees; negotiate or switch firms if your broker passes these costs to you. Fourth, watch out for high exchange fees on certain products, which can exceed commissions and clearing fees. Fifth, avoid low interest rates on your free cash; explore treasury ETFs or money funds for better returns on idle capital and negotiate margin rates. Sixth, plan account transfers meticulously, as they can be slow and leave accounts untradeable, so consider transferring cash only. Seventh, understand your firm's unique risk management policies, liquidation rules, and potential excessive risk fees. Eighth, errors beyond your control, like system glitches or 'fat finger' mistakes, can be unforgiving with little recourse, so be careful with order routing and default settings. Finally, ninth, research the quality of support; skilled, knowledgeable staff are a true differentiator, and be wary of paying for live support or dealing with automated or offshore services. The top three takeaways are: liquidity is paramount, understand your firm's risk management, and choose a firm with excellent support.