164: "Move your stop further away!" - Michael Toma

"Move your stop further away!"

In episode 164 of the Desire to Trade Podcast, I am sitting down with trader Michael Toma to discuss the topic of risk management. A very big topic that a trader has to understand is that of risk management, and for the longest time, I didn't know too much about risk management, what it's about. I thought it was only about risking money on a trade to be able to trade for the long-term—but there's a lot more to it. Michael is the one who has probably studied this topic the most. Traders like him kind of have a way of doing things that are special and so I wanted to bring him back. Michael has been in episode 40 of the podcast as well as a few episodes after that.

In this podcast, we went even more broad in that episode to talk about not only risk management but also trading strategies, how he trades, what things he looks for and how he has been able to get a lot of money trading for other people.

Topics Covered In This Episode

• Who Michael Toma is and what he does [2:11]
• Combining trading and working at the same time [3:30]
• The things that people do wrong with "risk" [4:56]
• What he recommends to someone starting out on how to put their stop when they're wrong [8:00]
• How people should plan the risk around trading [9:55]
• Strategies that Michael Toma uses in forex [12:04]
• The benefits in moving from forex to futures trading [14:43]
• How people should start in creating a strategy for forex or futures, and how they should combine things [16:23]
• The amount of value you get from just talking to people [17:53]
• What kind of work Michael Toma does before to make sure he is good to go into trading [18:32]
• How Michael Toma reacts when he makes a mistake in trading [20:36]
• The action steps you have to put in place to get to 95% precision [22:41]
• Putting in the time and effort to find ways to improve [24:39]
• Back testing a trading strategy, doing the grunt work and finding the ways to make it better [25:47]
• Michael Toma's three methods [29:00]
• Taking the time to learn and use market profile [31:30]
• How Michael's trading was before using market profile [33:54]
• Why not to use MACD or most indicators as signals [35:25]
• How Michael Toma started to trade for other people [38:16]
• How Michael Toma presents what he trades for [41:50]
• Traveling around the world to meet investors [43:33]
• How the trading world has evolved [44:22]
• Developing different ways to make money is important [45:57]
• Being fulfilled while traveling, trading and do what you love [47:19]
• One thing people should apply ASAP [49:00]

Resources Mentioned

• Heiken-Ashi Technique
• MACD Divergence
• Keltner Channels
• Bollinger Band

DesireToTRADE Top Resources

• Desire To TRADE Forex Trader Community (free group!)
• Complete Price Action Strategy Checklist (free checklist!)
• One-Page Trading Plan (free template!)
• DesireToTRADE Academy (exclusive training program)

How To Find Michael Toma?

• Collective2.com
• Globexnation

What is one thing you are going to implement after listening to this podcast episode? Leave a comment below, or join me in the Facebook group!