The Mind of a Trader | Insights on Trading Psychology and Overcoming Setbacks | Charles Harris

[@TraderLion]

📘 Get your FREE 115-page Ultimate Trading Guide! - traderlion.com/YTC-UTG 👇 What you'll learn! -------------------------------------------------------------------------------------------------------------------------------------------------------------- Lesson 1: Build a sturdy trading foundation to overcome the biggest obstacles holding you back. Lesson 2: Master 3 powerful trading setups to adapt and thrive in various market conditions. Lesson 3: Efficiently screen and find top-performing stocks with strong momentum and high growth potential. Lesson 4: Establish a streamlined risk management strategy using stop losses, position sizing, and portfolio heat analysis. Lesson 5: Optimize selling decisions by identifying late-stage bases or key trend reversals by analyzing daily and weekly charts. Lesson 6: Sharpen your trading analysis and decision-making by integrating cutting-edge analytical tools and techniques. Lesson 7: How to establish and maintain routine weekly and daily trading practices to ensure consistent performance and continuous improvement.

[@santiagonegroni9032]

Charles is so human! I sincerely appreciate how he put himself out there and articulated his ups and downs throughout his journey for us listeners to feel what he has gone through. He has experienced and achieved so much of what we all want to one day achieve, yet he is humble enough to share the not so pretty side of trading.

[@TraderLion]

100%

[@innerstrg1]

Well said.

[@kgupta2205]

30:00 start, 43:00 aggressive but drawdown is a risk, 50:00 caution, over performance ends, 1:02:00 know when you are making too much.

[@TraderLion]

Thanks

[@TraderLion]

Timestamps 0:00 Introductions 0:30 Charles' Background 1:00 Trading while studying at UCLA 1:40 Magellan Fund and Crash 2:17 Joining O'Neil and Company 3:30 Reading the book and learning to trade 4:40 You need to be able to adapt 5:20 How Charles Trades - Video Plug 5:50 Trading during the 90s 6:40 Losing half his account 7:00 Developing his own style, studying 7:57 Swing Trading in 1997 8:20 Up 700% in 1997, 8:40 Losing 2/3rs of his account in the 98 bear market 9:30 Up 1000% in 1999, getting noticed by O'Neil 10:20 O'Neil Pep Talk, Becoming a PM 11:50 Larning Trading Lessons, Dealing with Bear Markets 13:00 Trade In line with the market 13:30 Protect your confidence 14:00 Stay out or short during bears 15:00 Have a routine to watch the indices 15:50 Nothing good happens under the 21 day moving average 16:30 Working with Bill, Key Lessons 17:30 Optimistic and Forgiving 17:50 2007 Story, losing 20% in 4 days 21:20 Setbacks are normal, Bill was always optimistic 22:50 Having too many positions 23:10 Go Back to the basics 24:00 Do post analysis and figure out what you are doing wrong 24:40 Confidence is key 25:10 Building Model Books 25:50 History Repeats 27:00 Makes the most money on a select handful of stocks 28:20 Look how you made money in the past 29:20 A day in the life of a portfolio manager 30:20 Divide watchlist based on setup/status 31:20 Screening - People can overdo it 32:20 Trading TSLA 33:00 Trading AAPL in early 2000s, Get the Big move 35:20 There is too much emphasis on screening and teechnicals and not enough on fundamentals and the N in CANSLIM 36:30 Look for improving industry groups 38:00 Aha moments and keeping a trading journal 39:00 Be careful when you are on a winning streak 40:00 Begin up 1400% in 2020 40:45 Avoid using margin if playing a stock for the long term 41:30 Hard Stops and Mental Stops 42:30 O'Neil and Minervini Strengths 43:20 To be a big winner you have to manage your drawdowns 44:10 How important is mindset and Trading Psychology - The Mind of a Trader 46:20 The great traders don't accept pain, keep your account within 20% 48:30 Being aware when you are becoming exuberant 49:00 Lesson, its okay to take money out of the market when you are on a winning streak 50:45 Techniques to stay in touch with your emotions 52:30 The Market is uncertain, focus on the process 53:30 Managing Stress 55:00 Falling out of the zone 56:00 The market is always there 57:00 Boom and bust 57:30 Missing the Big move, how to overcome FOMO 58:35 Don't chase stocks, it will give you another shot, Mental health buys 1:01:30 How to keep your confidence up 1:02:20 Key things to keep you out of trouble 1:05:20 Wins and Losses come in streaks 1:06:30 A Traders Journey - Coming back from drawdowns 1:09:30 There will always be exceptional opportunities 1:10:00 Growth and Innovation Themes. Biotech AI, Biotech, EVs 1:12:30 How to judge the potential of a stock and theme 1:14:00 Tony Seba 1:18:50 How to manage risk 1:19:50 Using Charts 1:21:40 Cutting Losses 1:22:50 Recommended Books and Quotes 1:25:55 Don't hold onto losses 1:26:30 Taking a small loss is actually a good trade 1:29:25 Advice for traders, its normal to have setbacks

[@alexbuilds706]

Awesome interview, as usual. Charles is very humble and his story hits home.. You guys mention linking a video from him, do you mind including it? Richard mentioned watching it multiple times. Thx!

[@dirkdarwin2571]

Whenever I see a new Charles Harris interview, I'm THERE! One of the realest, honest, down-to-earth traders there is. I like that he has a multi-faceted approach and isn't just all about buying resistance breakouts.

[@supersheep5223]

I always enjoy listening to Charles. His experiences as a trader are very relatable. Thanks for this Richard!

[@TraderLion]

Thanks for watching!

[@brandonsmith8017]

Charles is the man! His journey video is a tribute to his transparency and integrity.

[@TraderLion]

100%

[@rcbturbine9]

Richard is such a great interviewer especially with a great trader like Charles. Thank you!

[@TraderLion]

Very kind of you, thanks!

[@ssspector]

charles is great...so humble...no hype...

[@pedrothepoolboy277]

Charles is always uplifting.

[@TraderLion]

For sure!

[@zarilliontrading]

Wonderful interview! Charles is a talented trader who is transparent about all the struggles EVERY trader must face. Richard - Congratulations on another terrific interview. You ask great questions and you allow your guest to speak freely - without interruption! Fabulous!

[@TraderLion]

Thank you for your kind words and appreciation! We're glad you enjoyed the interview. We'll continue bringing you more in-depth conversations with talented individuals like Charles. Stay tuned! 😊👏

[@jelisagr]

Great insight from Mr. Harris. I love his honesty about his weaknesses.

[@benjaminjordan]

The most honest and useful perspective I've ever heard in trading. Amazing.

[@TraderLion]

Glad it was helpful!

[@realpristinecap]

Great interview Richard Respect to Charles for being so open with the challenges he’s faced in his trading. Hope he goes on a great run soon 👊

[@TraderLion]

Thanks Andrew!

[@fishfinder3573]

One of my fave swing traders, humble and speaks from his heart, thanks for sharing his insight.

[@TraderLion]

Our pleasure!

[@DeafPanthers]

Absolutely great interview. I love listening to Charles. His experiences and being about to communicate them is such a great gift!

[@TraderLion]

Thanks for watching!

[@neishchowdhury739]

I acknowledge you Richard! You take great interviews. Great questions, patience and incredible listening skills. Thanks Charles for sharing!

[@TraderLion]

Thanks for listening

[@gregoryopelka3441]

Charles Harris is my favorite market voice to listen to. And I love the same books: Reminiscences, all the Darvas books, Pit Bull, Trading in the Zone, HTMMIS. It's as much about becoming inspired as it is about getting educated. I hope you will interview him again in the summer.

[@TraderLion]

Gregory thrilled to hear you enjoy Charles' insights and book recommendations! We'll definitely be bringing him back for another interview. Stay inspired and keep learning! 😊📚

[@k.6160]

Charles is so honest and puts it all out there. Another great interview!

[@tedpappas1559]

Excellent interview with many great learning points. One of my favorites is when Charles quoted Mike Webster saying, "Nothing good happens under the 21MA." Thanks Richard and Charles for this video, and sharing your knowledge. Your hard work is very much appreciated.

[@TraderLion]

Thanks Ted!

[@albertofernandez-sanguino3373]

Amazing interview. One of the humblest and down to Earth professional investors out there. Many thanks for sharing 🙂

[@TraderLion]

Our pleasure!

[@atishpatel3830]

Charles is so down to earth and open to share winning tricks & saving yourself from bear market. I will be watching this interview over and over to get back on basics. Richard, Nice questions too.

[@TraderLion]

Thanks!

[@jimmalmstrom6593]

Straight up legend.

[@TraderLion]

100%

[@TxRedMan]

This was the most authentic and objectively dispassionate self reflection I’ve heard from any (active) Trader in ages. True story, no exaggeration, I didn’t short until 2023. I’m still terrible at executing breakouts. I’m probably a mediocre day trader. I learned to trade the close before I learned to trade the open and I probably left three years of wages on the table because I didn’t understand how or why I was positioned in the morning, I generally just took positions that were unnecessary. My $0.02 Chart : 21 day / 49 day vwap 200 day ma of the correlated indice and whether the Futures contract is +/- it’s 50 day ma

[@TraderLion]

We're glad you found this helpful! We're always learning and improving as traders, no matter where you currently are in your journey.

[@RichardMoglen]

Great talking with Charles!

[@andypiccolo5158]

Great interview. I can relate to so much of what he said. I really appreciate the transparency, encouragement, and success stories but also the human fallibility that we all have and experience in trading. Thank Charles for sharing and Richard as always for finding amazing traders to talk to!

[@TraderLion]

Glad you enjoyed it!

[@figgy163]

Excellent interview as always, love the transparency and wisdom from Charles. Thanks to both 🙏👍

[@TraderLion]

Glad you enjoyed it! Thanks Tony

[@ajdaria1000]

First time I see Charles's interview. He's such a humble and wise trader. Thanks for all the insights and honesty. Great interview.

[@TraderLion]

Our pleasure!

[@lindaboyd-jones6740]

Im enjoying your TraderLion videos and really found this one with Charles to be uniquely helpful. I’m a new trader with 5 months of money trading (and after 18 months of great training courses/simulated trading/reading the major books of the trading greats. Charles reads my mind on the emotions I’ve been experiencing and I believe this will help me understand the mistakes I tend to repeat and improve.

[@gerryarrigale2004]

I have been trading for over 25yrs. I was an active broker in NY for 25 yrs, trading family and friends funds as well as personal. Nothing but high stress. This has been my life as a trader. His experience is exactly what I have gone through and still go through to this day. Recently he mentioned his boom and bust to be 8 figures. I have been here with clients money but He has mentioned Personally I have been 6-7, not fun either way. I always felt, if I had just one switch/button like a kill switch, to sell every position at once, Right at the market. I would be a billionaire.

[@hydropotimus]

Thank You, thank you! Great , chill interview. I learned a lot!

[@TraderLion]

Glad you enjoyed it!

[@lorrainekish3476]

Great, candid interview.

[@CFO_100]

I enjoyed this video a lot, thank you!

[@TraderLion]

Glad you enjoyed it!

[@AndersPetersson79]

Phenomenal interview! Very insightful.

[@TraderLion]

Thanks Anders!

[@stevefaulkner4678]

Best one so far Thanku

[@TraderLion]

Thanks Steve!

[@Sokeritoppavuori]

This interview was excellent 👍🏻

[@TraderLion]

Thanks!!

[@CraigMasters-cv5ul]

Great interview!! Richard asks such great questions

[@TraderLion]

Glad you enjoyed it!

[@ESM77]

This is so helpful, I can’t believe your channel doesn’t have over 1 million followers. Thank you for these interviews.

[@TraderLion]

We're glad you enjoy them!

[@mustafaguvenc]

Great interview and great job Richard

[@TraderLion]

Thanks!

[@laimisslt]

Great interview, I really appreciate when people open themselves up like this and come through authentic, as well as end up sharing so much info that they don't have to necessarily share. It does feel like he is a bit at a crossroads and stuck at this point where he is tempted to transition to longer term holds and go away from short term trading, tempted by the exponential gains one can make with long term holds. Wishing him all the best! Definitely has the right mindset and realization that long-term holds do not work well with margin accounts and tight stops, etc. You need lots of room for downswings. It will be hard for him to reconcile that with the idea of keeping his account near all-time highs, or at least without large drawdowns...

[@terry6433]

Thanks to you both,great and honest interview

[@TraderLion]

Thanks for watching!

[@PatioJ]

What a fantastic interview! Charles is an open book to the challenges of this fascinating endeavor to become a successful investor. Thank you Charles and thank you Richard.

[@TraderLion]

Glad you enjoyed it!

[@Veersamthaan87]

@PatioJ bro are you trading or not

[@infinityprodinc]

Thank you Charles!

[@lemguntur]

Another Great interview. Thank you Richard !!

[@TraderLion]

Glad you enjoyed it!

[@nidalalghad4959]

Great guest and host. I learned a lot thanks.

[@te4915]

Another great interview, Richard

[@TraderLion]

Thanks TE!

[@ArtemFedorov]

Humble, honest and great man! Thank you very much, Charles for sharing your experience and professional journey. And thank you, Richard, for a super professional interview (as always)!

[@TraderLion]

I appreciate that! Thanks for watching!

[@sharigordon6312]

Great interview Richard! I really appreciate Charles sharing his story and his vulnerability. There's a difference between walking the path and knowing the path and Charles expresses this in his lessons to learn which I can certainly relate to!

[@TraderLion]

Thanks Shari!

[@Travelingwithabbc]

This was helpful and useful information

[@TraderLion]

Thanks for watching, glad it was helpful!

[@rogerioocf]

Great interview. Infinite Wisdom! Just funny to see Richard, a great student and interviewer, but still focusing in the wrong spot " one quote that changed all", " aha moment that moved the needle", etc. As if he was trying to fix his trading problems w easy fixes. Still great job Richard!

[@TraderLion]

Thanks Roger, I'm not looking for quick fixes, those questions typically lead to interesting stories about how traders have had to overcome difficulties in their past. Thanks for watching!

[@text9003]

Fantastic interview! Thanks so much Richard and Charles. This is a CLASSIC that every investor should watch. Charles, if you write a book to codify all of your insights and experiences over the years it would become a classic just like with the Darvas, Lefevre, etc. books. Again, thanks so much!

[@TraderLion]

Glad you enjoyed it!

[@buddfoxx5955]

Great interview and advice, also your interviewing skills are excellent - don't change what's working!

[@chr971]

Really great video, thanks Charles and Richard!

[@TraderLion]

Thanks!

[@chr971]

@@TraderLion hey Richard, I have requested multiple times earlier to feature a really good intraday prop trader. Please feature him if you can.

[@ganeshphotography673]

Great interview, Thanks to you both

[@TraderLion]

Glad you enjoyed it!

[@michaelmaran4473]

Love this guy

[@TraderLion]

100%

[@Zykosis]

Let’s go!🎉

[@khodler5551]

Very good insights! Thanks

[@TraderLion]

Thanks for watching!

[@abeneko3065]

This would be exactly as if I was interviewed. did great for a few years all gone in 2022

[@tommyc120]

Great interview thanks Richard and Charles

[@TraderLion]

Thanks Tommy!

[@teresatennis]

Love Charles!!!!

[@richardbailey4306]

Great interview! Thank you

[@ericson4534]

Thank you! 👌👌👌

[@TraderLion]

You're welcome!

[@RaiTrades]

Great interview!

[@TraderLion]

Thanks Rai!

[@skesno309]

best channel

[@TraderLion]

Thanks!

[@tanianicholson178]

Thank you so much for the great interview🙏

[@TraderLion]

Our pleasure!

[@rushoratiu6839]

is there somewhere where we can find /download the model books that Charles is talking about?

[@TraderLion]

Unfortunately not. Ross who worked with Charles has put together model books for the past few years that you can find here: traderlion.com/collections/traderlion-model-books/

[@jacksongents4993]

Jesse Livermore was talking through Charles Harris.... CARLO (movie central)

[@k.6160]

That's exactly what I was thinking! LoL, big ups and downs!

[@robinthomas5080]

Damn honest professional

[@TraderLion]

Charles is the man

[@davidworrell86]

This aged well ❤

[@TraderLion]

Timeless content!

[@ronsmith5601]

Richard, you seldom interrupted Charles. My first time listening to you. Great interview skill to be quite. Subscribed.

[@TraderLion]

Thanks Ron!

[@marcelodp9689]

Hi, somebody has the list of books and authors that he mention in "1:22:50 Recommended Books and Quotes"? Thanks

[@richardhern3047]

Didn’t give me much confidence about making money trading. Refreshingly open but even Mr Harris admitted to having a horrible year in 2022. What hope does that give the rest of us?! I also didn’t really understand his strategy on Tesla. Why is he holding through 2022 when it’s dropping like a stone and he also says that one of O’Neill trading philosophy is nothing good happens below the 21 mda. Why is he holding when TSLA falls below - ?? Wasn’t convinced by his trading rules

[@skesno309]

I'm confused why he never sold Tesla when the moving averages changed, and it went into a stage 4 down trend. Never marry a stock is something you hear over and over again. Weird.

[@skesno309]

With that said, his willingness to divulge all things good and bad is pretty special.

[@TraderLion]

He’s got a trying cost basis and is looking to play it for a longer term move. Different than his swing trading style

[@Puffintrading]

Through this whole interview there’s not one question to Charles about how he sells his position, how he makes those 700% and 1400% years?! Such as what is his average winning % per trade. Isn’t that a key point?? So frustrating- I’m listening to many of his TL interviews to find this and always this question is not asked. How to sell is just as important as when to buy.

[@TraderLion]

He doesn’t give average gain stats but mentioned that he usually held positions between 3 days and 3 weeks. Looking for the initial burst and not waiting between bases.

[@aribadabing]

Can’t believe he is holding on to Tesla. Not saying it won’t go up again but he is a trader not a long term investor.

[@Zykosis]

Are they publishing the model book?

[@TraderLion]

I believe he was referring to an internal model book

[@holdenlong72]

Livermore had some great moments, but even he repeated mistakes and it cost him. But what a ride he had

[@TheMountainBeyondTheWoods]

Charles is wonderful, I really like hearing him speak about his experiences, and Richard, you've been doing a great job for these past few years, but if I may present some constructive criticism I'd like to say I don't think you need to ask your guests what their favorite trading books are or what advice they have for new traders anymore. We all already know what their favorite trading books are, and I'd bet the vast majority of people watching your videos are not new traders.

[@TraderLion]

Thanks Relaxe and its true.

[@TheMountainBeyondTheWoods]

@@TraderLion 👍 Keep up the great work and thank you for all the interviews and all the other info you put out.

[@Chris-wk8nu]

Richard how old are you btw? Just curious.

[@TraderLion]

Just turned 25

[@Chris-wk8nu]

@@TraderLionhappy birthday. Capricorn or Aquarius? Lol. Today is my birthday

[@Yetified_Mayhem]

Was that a fart around the 2:00min mark? Sounded like a little squeaky roller

[@sphanationsphanation2426]

What's a legend

[@TraderLion]

Agreed!

[@user-gs6cc5qv8h]

is this new or past interview?

[@TraderLion]

This was recorded this past thursday

[@victortoombs4754]

While it was a good interview, Richard should've done more homework on his guest and not just asked the standard questions Charles has already answered a 100x in other interviews he's done.

[@TraderLion]

What would you like to have seen us discuss?

[@victortoombs4754]

@TraderLion Harris also mentioned how he was up 1400% in 2020. That's quite impressive. Why wasn't he asked more specifics about it? How many trades did he do that year? How concentrated was he? Was he on full margin? Did he sell at the typical 20-25% return that O'Neil has always mentioned or let the stocks run? What was his biggest winner that year? Did he trade Options? Yet nothing was discussed about this. Is it really that hard to do an interview? Smh.

[@divamisi24]

Richard did a great job. It’s a Psychology Interview on mindset and he stayed the course remaining focused on the topic. Well done and thank you Richard.

[@victortoombs4754]

@John Smith Charles has already done many psychology mindset interviews that can be seen on YT. There is no need to rehash the same thing over and over again.

[@victortoombs4754]

@Jay Steve Sorry, but my time isn't free, so why don't you stfu and mind your own business. I wasted 90 minutes of my time to learn absolutely nothing.

[@14luey]

How the hell do you obtain a 1400% return in a year.

[@TraderLion]

Trade a few true market leaders well with size and margin

[@bosco9028]

Interesting to listen to Charles and how the same mistakes keep coming up even after years and years of successful trading. I understand that he just won't short or can't bring himself to short. But the minimum you should do in a bear market is at least move into all cash. Nothing worse than coping such a large draw down and not having major dry powder to start buying some of those major discounts. Old saying goes no one ever went broke taking profits. You can always move back into the market if the trend continues to the upside. The FOMO in us all makes us think bull markets last forever.