Patience, Focus and Discipline

Published on
January 21st, 2019
30 minutes

Patience, Focus and Discipline

In The Tank ·
Featuring Dave Floyd

Published on: January 21st, 2019 • Duration: 30 minutes

Dave Floyd of Aspen Trading Group likes to cut through the noise. His edge is in following a small range of inter-related instruments, becoming familiar with their individual traits and the price relationships within the group in order to make steady profits. Filmed on January 15, 2019 in Bend, Oregon. Think Tank is Real Vision’s premier written research service where you can get valuable insights from professional traders like Dave Floyd every week. Learn more at


  • JC
    Jessica C.
    1 August 2019 @ 02:26
    Very interesting and valuable conversation Dave. Learned a lot. Thank you for your time sharing your experience.
  • FG
    Flavio G.
    23 January 2019 @ 18:42
    How can you limit your exposure to any single idea to 1 - 1.5% if you only look to a very narrow set of asset classes?
    • DF
      Dave F. | Contributor
      26 January 2019 @ 18:21
      Risking 1% to 1.5% of a PORTFOLIO value.....technically you could do only 10 trades in a year and still have a very solid return on the overall portfolio. Sizing and risk management is all you need
  • PG
    Philippe G.
    24 January 2019 @ 14:12
    Excellent. More like this please!!
  • SC
    Stephan C.
    23 January 2019 @ 19:41
    Really great vid- Valuable insights on the fundamental pieces required to build a sound trading process and mapping out trade ideas. Lot to take away, thanks.
  • AC
    Andrew C.
    22 January 2019 @ 04:41
    Thanks Dave, fantastic discussion. I learn something every time you present. A couple of questions if I may. If I understood correctly, you use 1-2% position sizing. How many trades might you have on at one time (hence how much cash)? How do you manage correlation risk, not so much when correlations go to one, but for example, might you have different FX trades at one time where correlations are >= 0.5? Do you have an investment portfolio, longer term stock/bonds investment for retirement funds, for example? What portion might be in your trading account?
    • DF
      Dave F. | Contributor
      23 January 2019 @ 03:39
      Hi Andrew - thanks for the comment/question. 1% to 2% simply refers to my max dollar loss on a trade. So, if I have a portfolio of $1 million, and risk 1% on a trade, that is $10,000. Thus if you know your stop-loss you can size your trade to stay within that $10,000 risk limit. Make sense? Regarding my investment portfolios, I do keep exposure to the markets via basic ETF portfolios but I am not a buy and hold guy. Most of my portfolio gets an allocation to my trades which is where I feel I have an edge.
    • DS
      David S.
      23 January 2019 @ 18:29
      Dave F. - Thanks for clarifying. DLS
  • MM
    Michael M.
    21 January 2019 @ 14:07
    This is great, love this format.
    • DF
      Dave F. | Contributor
      23 January 2019 @ 03:42
      Thanks Michael
  • BM
    Beth M.
    21 January 2019 @ 20:36
    This was really valuable and provides "building blocks" to making a succussful trade. Thank you...more of these types of videos please.
    • DF
      Dave F. | Contributor
      23 January 2019 @ 03:41
      Thanks Beth
  • DS
    David S.
    21 January 2019 @ 22:05
    Excellent presentation. I often do not follow charting presentations because traders just show their concluding charts and the trade. Dave was great because he showed the whole process including an in-depth background understanding and all the information that leads up to the trade. I also liked his sizing of the trade which I learned from one of Peter Brandt’s presentations. Best of luck in the workshop! DLS
    • DR
      David R.
      21 January 2019 @ 22:48
      Good, thoughtful comment and feedback, fitting for a likewise video.
    • DF
      Dave F. | Contributor
      23 January 2019 @ 03:41
      Thanks David S.....working on my presentation this evening as a matter of fact
  • SS
    S S.
    21 January 2019 @ 23:03
    Thank you Dave. This was great. I do however personally disagree with having 1-2% stop losses as it doesn't provide much room for error and volatility. From what I have seen on many Trade Ideas episodes, most have 10% stop losses. But I guess it works for you.
    • DS
      David S.
      22 January 2019 @ 00:54
      Steve S. - I may be incorrect, but I took it as each position in your portfolio should be 1 to 2% of the total portfolio - not a stop loss a couple of percent below the trade. I also assume that if the trade starts to move it a positive direction they will jump in like Hugh Hendry. Maybe portfolio sizing and trade tactics will be discussed in the future. DLS
    • CP
      Constantin P.
      22 January 2019 @ 13:05
      its about capital - not a price sl level
    • SS
      S S.
      22 January 2019 @ 22:21
      @ Dave & Constantin. Ah that makes sense. My bad.
    • DF
      Dave F. | Contributor
      23 January 2019 @ 03:40
      Not a 1-2% stop-loss.....risking 'x'% of a portfolio - whatever that number happens to be for you. For me, it is 1-1.5%
  • AZ
    Angelo Z.
    22 January 2019 @ 03:33
    One of my favourite videos to date! Thanks Dave, and thanks Real Vision!
    • DF
      Dave F. | Contributor
      23 January 2019 @ 03:39
      Thanks Angelo
  • RL
    Rui L.
    22 January 2019 @ 13:57
    Tried to filter me some bullets... just sharing. Tks Dave, tks RV. - My unique trading approach and style is keeping a very narrow focus. ... impossible to keep track of a lot of different asset classes and then be really relevant with key price levels. - ... critical that I only look at four or five currency pairs and then three or four major asset classes. They're all connected. They all play off of one another. And if I just focus on those, I'll begin to get an insight on what's happening in the market as opposed to jumping around as to whatever the hot thing is on any particular day. - (on lessons from worst trade) I stepped outside my area of expertise. I had an edge trading IBM on an intraday basis ... I had no business trying to pontificate what the market was going to do with IBM's earnings. The market taught me a valuable lesson, and it's something that has stuck with me for a very long time ... - You cut your losses and move. ... stick to something where I had a clear edge if I repeated that process over and over again. ... stay really focused and disciplined on what I was really good at. - ... my style is not something where I'm trying to play for a big move up or a big move down. I'm trying to forecast out a few weeks and catch a little bit of that meat in the middle on that move. - ... if I can get a 1 and 1/2 times to what I'm risking maybe two, I'm delighted. But I think the key thing, rather than looking for the big trade, is what do I do on a day to day, hour to hour basis, week to week basis that keeps me really focused, keeps me within edge, and that's about, quite frankly, sticking with my discipline, sticking with the trade management, sizing my trades correctly so that, if I do have a series of losers in a row, it doesn't impact me in a way where I can't continue to trade. - PATIENCE, FOCUS AND DISCIPLINE - ... It probably goes without saying, but trading is not one of those things where you just kind of show up and look at your screens and see what's going on and throw a few trades out there and walk away. - ... discipline to get up and practice your craft over and over and over again is definitely the hallmark of success. - They're kind of tied. Discipline and patience are kind of tied together. - ... There's this desire to be entertained or have skin in the game at all times. We have to remember that the markets aren't there to entertain us and to dole out trades to us every day. We're there to take what the market gives us. - And I think for a lot of people, they think that, if the market's open, that there's got to be something going on. And yes, there probably is something going on. But it's like you jumping into the mix with people that are far more knowledgeable about that particular market. So you can go over there and say, there's a lot of flashing lights and a lot of bells and whistles over there right now. But there's a lot of guys and gals over there that know far more about that market, how it's been trading. You are at a severe disadvantage. So it's better just to stick, wait for the setups, and go from there. - you make 80% of your money 20% of the time. - ... I need a paycheck. I got get paid today. I didn't make any money this week. It doesn't work that way. It's one of those things where your income stream is very lumpy. So you've got to be patient. You've got to be disciplined. - ... you've got to be incredibly focused. And again, they're all kind of tied together in some way. But the focus really boils down to knowing which securities you're going to be trading, sticking with them, and more importantly, knowing which related asset classes impact those securities so that you can manage them or monitor those as well to gain an edge. - ... What is the single most important attribute of a successful trader? Patience. I think it has to be patience. You have to control your impulses. We're all human beings. We're going to slip from time to time. But if you're too impulsive, this is not the place for you. It will eat you alive over time. - ... If you're a really good trader, you might be at a 60-40 win loss ratio. Or maybe you're a 40% winner, 60% loser. But we know we're going to have five or six trades that are going to be losers in a row. It's inevitable. Statistically, it will happen. - That's the key thing. You've got to keep yourself in the game, and you can't dig yourself a hole too big that is mathematically hard to get out of and psychologically too hard to get out of. - ... filtering out the noise. And I think that's not only in terms of trading, but what's happening currently in our society. We are so bombarded with information. ... It's so easy to be never firmly rooted in what you're trying to do. - ... I stick to what I do, which is exactly how I approach each day, and I stick to the main asset classes that I focus on -- S&Ps, 10 year notes, gold, oil, and then a handful of currency pairs, and the occasional stock that will be impacted by all those asset classes-- then you have a real good edge of finding some really solid trades out there ...
  • JH
    Johannes H.
    22 January 2019 @ 09:56
    Really great video, much better than those big macro interviews like "is the housing in a bubble". This is the parts that are really important, not wishful thinking about some series of events mainstream media likes to write about
  • DW
    Daniel W.
    22 January 2019 @ 00:13
    speak the Q. out loud rather than just ring it and flash on the screen. those who are just listening and not watching have no idea what he is responding to. this kind of vid and in fact most of the vids you post are best to listen to while doing sth else.

Mark Yusko

Morgan Creek Capital Management, Co- Founder, CEO, & CIO

Mark Yuskois the Founder, CEO and Chief Investment Officer of Morgan Creek Capital Management. He is also the Managing Partner of Morgan Creek Digital Assets. Morgan Creek Capital Management was founded in 2004 and currently manages close to $2 billion in discretionary and non-discretionary assets. Prior to founding Morgan Creek, Mr. Yusko was CIO and Founder of UNC Management Company (UNCMC), the Endowment investment office for the University of North Carolina at Chapel Hill. Before that, he was Senior Investment Director for the University of Notre Dame Investment Office.Mr. Yusko has been at the forefront of institutional investing throughout his career. An early investor in alternative asset classes at Notre Dame, he brought the Endowment Model of investing to UNC, which contributed to significant performance gains for the Endowment. The Endowment Model is the cornerstone philosophy of Morgan Creek, as is the mandate to Invest in Innovation. Mr. Yusko is again at the forefront of investing through Morgan Creek Digital Assets, which was formed in 2018. Morgan Creek Digital is an early stage investor in blockchain technology, digital currency and digital assets through the firm’s Venture Capital and Digital Asset Index Fund.Mr. Yusko received a BA with Honors from the University of Notre Dame and an MBA in Accounting and Finance from the University of Chicago.

Anthony Scaramucci

SkyBridge Capital, Founder & Co-Managing Partner

Prior to founding SkyBridge in 2005, Scaramucci co-founded investment partnership Oscar Capital Management, which was sold to Neuberger Berman, LLC in 2001. Earlier, he was a vice president in Private Wealth Management at Goldman Sachs & Co. In 2016, Scaramucci was ranked #85 in Worth Magazine’sPower 100: The 100 Most Powerful People in Global Finance. In 2011, he received Ernst & Young’s “Entrepreneur of the Year –New York” Award in the Financial Services category. Anthony is amember of the Council on Foreign Relations (CFR), vice chair of the Kennedy Center Corporate Fund Board, a board member of both The Brain Tumor Foundation and Business Executives for National Security (BENS), and a Trustee of the United States Olympic & Paralympic Foundation. He was a member of the New York City Financial Services Advisory Committee from 2007 to 2012. In November 2016, he was named to President-Elect Trump’s 16-person Presidential Transition Team Executive Committee. In June 2017, he wasnamed the Chief Strategy Officer of the EXIM Bank. He served as the White House Communications Director for a period in July 2017. Scaramucci, a native of Long Island, New York, holds a Bachelor of Arts degree in Economics from Tufts University and a Juris Doctor from Harvard Law School.

Michael Saylor

MicroStrategy, Co-Founder

Mr. Saylor is a technologist, entrepreneur, business executive, philanthropist, and best-selling author. He currently serves as Chairman of the Board of Directors and Chief Executive Office of MicroStrategy, Inc. (MSTR). Since co-founding the company at the age of 24, Mr. Saylor has built MicroStrategy into a global leader in business intelligence, mobile software, and cloud-based services. In 2012, he authoredThe Mobile Wave: How Mobile Intelligence Will Change Everything, which earned a spot onThe NewYork TimesBest Sellers list. Mr. Saylor attended the Massachusetts Institute of Technology, receiving an S.B. in Aeronautics and Astronautics and an S.B. in Science, Technology, and Society.

Alex Saunders

Nugget's News, Founder & CEO

Alex Saunders is the founder and CEO of Nugget’s News, a digital media company focused on all things crypto. Alex has been captivated by cryptocurrency since 2012 and in 2017 he began educating globally on the benefits of cryptocurrency and how to safely acquireit. Nugget’s News has been listed as a top-20 podcast by Business Insider, ShapeShift and Lifehacker and has over 120k YouTube subscribers with 9 million total views.Alex is also heavily focused on his cryptocurrency education platform Collective Shift which currently serves over 4,500 members. provides his unique perspectives by utilising his expertise in fundamental analysis, technical analysis and market sentiment. He is working towards his mission of making it easier for everyone to understand the financial world.

James Putra

TradeStation Crypto, Inc., Sr. Director of Product Strategy

James helped launch TradeStation Crypto’s offeringwhichutilizesa true online brokerage model that self-directed investors and traders have come to expect for equities, futures,and foreign currency markets. He is a reputed crypto asset specialist and blockchain thought leader focused on helping people find innovativeways to participate in this space. He is active in the blockchain community with speaking engagements, TV appearances and mentoring.James has over 15 years of experience in the Fintech industry.

Raoul Pal

Real Vision, Co-Founder & CEO

Raoul Pal is the Co-Founder and CEO of Real Vision, the world’s pre-eminent financial media platform, which helps members understand the complex world of finance, business, and the global economy. Real Vision members also have access to Real Vision Crypto, a cryptocurrency and digital assets video channelwatched by over 80,000 people.In addition, Raoul has been publishing Global Macro Investor since January 2005 to provide original, high quality, quantifiable and easily readable research for the global macro investment community hedge funds, family offices, pension funds and sovereign wealth funds. It draws on his considerable 31 years of experience in advising hedge funds and managing a global macro hedge fund. Global Macro Investor has one of the very best, proven track records of any newsletter in the industry, producing extremely positive returns in eight out of the last twelve years. He retired from managing client money at the age of 36 in 2004 and now lives in the tiny Caribbean island of Little Cayman in the Cayman Islands. Previously he co-managed the GLG Global Macro Fund in London for GLG Partners, one of the largest hedge fund groups in the world. Raoul moved to GLG from Goldman Sachs where he co-managed the hedge fund sales business in Equities and Equity Derivatives in Europe. In this role, Raoul established strong relationships with many of the world’s pre-eminent hedge funds, learning from their styles and experiences. Other stop-off points on the way were NatWest Markets and HSBC, although hebegan his career by training traders in technical analysis.

Peter McCormack

What Bitcoin Did, Journalist

Peter McCormack is a full timejournalist/podcaster covering topics such as Freedom, Human Rights, Censorship and Bitcoin. Peter created and hosts the What Bitcoin Did Podcast, a twice-weekly Bitcoin podcast where he interviews experts in the world of Bitcoin development, privacy, investment and adoption. Launched in November of 2017, the podcast has grown to over 100 episodes with a guest list that is a testament to the diversity of knowledge and opinions that represent the broader Bitcoin community. Expanding his growing list of humaninterest recordings, documentaries and films Peter has recently launched theDefiancepodcast andDefianceTV.

Caitlin Long

Avanti Financial Group, Founder & CEO

22-year Wall Street veteran who has been active in bitcoin and blockchain since 2012. In 2018-20 she led the charge to make her native state of Wyoming an oasis for blockchain companies in the US, where she helped Wyoming enact 20 blockchain-enabling laws. From 2016-18 she jointly spearheaded a blockchain project for delivering market index data to Vanguard as chairman and president of Symbiont, an enterprise blockchain start-up. Caitlin ran Morgan Stanley’s pension solutions business (2007-2016), heldsenior roles at Credit Suisse (1997-2007) and began her career at Salomon Brothers (1994-1997). She is a graduate of Harvard Law School (JD, 1994), the Kennedy School of Government (MPP, 1994) and the University of Wyoming (BA, 1990).

Hunter Horsley

Bitwise Asset Management, CEO

Hunter Horsley is Chief Executive Officer of Bitwise Asset Management. Prior to Bitwise, he was a product manager at Facebook, working on advertiser products including the multibillion-dollar sponsored content ecosystem and ad breaks in videos. Before Facebook, Horlsey was a product manager at Instagram, responsible for multiple advertising products generating several hundred million dollars of revenue. He is a graduate of the Wharton School at the University of Pennsylvania, with a B.S. in economics. Recently, Horsley was named a member of Forbes’ 2019 “30 Under 30” list.

Luke Gromen

Forest For The Trees, Founder & President

Luke Gromen has 25 years of experience in equity research, equity research sales, and as a macro/thematic analyst.He is the founder and president of macro/thematic research firm FFTT, LLC, which he founded in early 2014 to address and leverage the opportunity he saw created by applying what clientsand former colleagues consistently described as a “unique ability to connect the dots” during a time when he saw an increasing “silo-ing” of perspectives occurring on Wall Street and in corporate America.FFTT caters to institutions and sophisticated individuals by aggregating a wide variety of macroeconomic, thematic and sector trends in an unconventional manner to identify investable developing economic bottlenecks for his clients.Prior to founding FFTT, Luke was a founding partner of Cleveland Research Company, where he worked from 2006-14.At CRC, Luke worked in sales and edited CRC’s flagship weekly thematic research summary piece (“Straight from the Source”)for the firm’s clients.Prior to that,Luke was a partner at Midwest Research, where he worked in equity research and sales from 1996-2006.While in sales, Luke was a founding editor of Midwest’s widely-read weekly thematic summary (“Heard in the Midwest”) for the firm’s clients, in whichhe aggregated and combined proprietary research from Midwest with inputs from other sources.Luke Gromen holds a BBA in Finance and Accounting from the University of Cincinnati and received his MBA from Case Western Reserve University.He earned the CFA designation in 2003.

Meltem Demirors

CoinShares, Chief Strategy Officer

Meltem Demirors is Chief Strategy Officer of CoinShares, an investment firm that manages billions in assets on behalf of a global investor base, and is a trusted partner to investors and entrepreneurs navigating the digital asset ecosystem. Meltemoversees the firm’s managed strategies group and its New York office and leads corporate development. Previously, she was part of the founding team of Digital Currency Group. As a veteran investor in the digital currency space, she has invested in over 250 companies in the ecosystem. Meltem is passionate about education and advocacy, and teaches the Oxford Blockchain Strategy Programme and co-chairs the WEF Cryptocurrency Council.