Stock Trading Pro

Welcome to the Stock Trading Pro podcast hosted by Pete Renzulli. Our mission is to help you make better decisions so you can grow your portfolio with confidence, less risk and conviction.

Episode 18: Most Traders Chase Entries. The Winners Master This Instead. 06/02/2025

Episode 18: Most Traders Chase Entries. The Winners Master This Instead. In this "Stock Trading Pro" podcast episode, host Pete Renzulli argues that successful trading depends on mastering probability, risk/reward ratios, and position sizing - rather than finding perfect entry signals. He demonstrates that a trader with a 40% win rate and 1:3 risk/reward ratio will outperform one with 60% wins but 1:1 risk/reward, emphasizing that mathematical discipline trumps prediction accuracy. The key principles include tracking actual win rates, maintaining strict stop-loss discipline at predetermined 1R levels, and risking only 1-2% per trade through proper position sizing. Renzulli contends that the 80-95% of retail traders who lose money fail not because they can't identify good setups, but because they lack discipline in these three fundamental areas that create positive mathematical expectancy over time. Discover The Trading Trinity Probability as the foundation of trading decisions Risk/Reward ratios and their mathematical impact on profitability Position sizing as the growth engine for trading accounts Trading Psychology and Mindset Why most traders focus on entry signals instead of what matters The psychological comfort of seeking perfect setups Statistics on retail trader failure rates and underlying causes Probability Management Tracking and calculating actual win rates Understanding win rates across different trading strategies How market conditions affect probability outcomes The importance of maintaining strategies through losing streaks Risk/Reward Optimization Mathematical examples showing how lower win rates can be more profitable The critical importance of taking losses at planned levels Techniques for improving risk/reward ratios through stop placement and profit-taking How moving stops destroys mathematical edges Position Sizing Strategies Fixed-percentage risk approach versus amateur methods The golden rule of risking small percentages per trade Kelly Criterion for advanced position sizing How proper sizing protects accounts and scales growth Implementation and Tracking Creating comprehensive trading journals Pre-trade checklists incorporating all three elements Tools and software recommendations for tracking Step-by-step implementation plans Case Studies and Examples Comparative analysis of different trader profiles Real-world success story of a former poker player Mathematical formulas for evaluating trading strategies System Integration How the three elements work together as a unified approach The expected return formula for strategy evaluation Maintaining discipline across all three components Notable Quotes "What if I told you that after working with thousands of traders, I've discovered that entry signals are actually one of the LEAST important factors in long-term trading success?" "It's like thinking that finding the perfect golf club will automatically make you a scratch golfer." "Trading success isn't about predicting market direction with perfect accuracy. That's impossible. Instead, it's about playing a game of probabilities, managing risk, and allocating capital intelligently." "If you don't know this number, you're essentially flying blind." "Without understanding probability, you'll likely ditch a perfectly good strategy right before it reverts to its mean." "This is why I say entry signals are overrated. You can be wrong more often than you're right and still make excellent returns if your risk/reward is solid." "The goal isn't to avoid losses – it's to ensure your winners are significantly larger than your losers." "Your ability to cut losses cleanly at 1R is just as important as letting your winners run to 3R or more." "The best trading system in the world will fail with poor position sizing." "This is how accounts get blown up." "I can't tell you how many traders I've seen who have great systems on paper but fail in execution because they can't stick to their 1R risk limit." "In three years, he turned $25,000 into over $500,000 – not by finding better entries, but by mastering the Trading Trinity." "Focus on your numbers, not your emotions." "Trading is a marathon, not a sprint. The goal is to be in this game for decades, not days." "Master the trinity, master the market." Contact: Disclaimer: /episode/index/show/9119d9f9-06aa-47c9-8166-db17707df142/id/36818745

Episode 17: Navigating Late-Stage Market Rallies 03/25/2024

The Daily Ticker: EP 16: Succeeding Despite Adversity 01/25/2024

The Daily Ticker: EP 16: Succeeding Despite Adversity How to embrace the right mindset to succeed despite challenges that might seem like adversity but are actually the right lessons at the right time. Pete Renzulli | Stock Trading Pro https://stocktradingpro.com/invite Visit our YouTube channel for training. Be sure to subscribe. https://www.youtube.com/c/StockTradingPro?sub_confirmation=1 Follow Me on Twitter: I. Introduction A. Market is set to reach all-time highs B. Importance of reducing position size 1. Been talking about for weeks 2. Critical when market is not clearly trending 3. Applies unless a specific industry is breaking out 4. Good trading is reducing size when market not obvious 5. Day trading has still had opportunities II. Long Term Thinking is Key A. Believing every trade deserves same risk lacks strategy 1. Using driving metaphor: conditions dictate speed 2. Trading is owning a business 1. Would be silly to give up on restaurant over temporary lull 3. Need to determine if adversity is stepping stone or reason to quit III. My Superpower is Persistence A. Get back up when knocked down B. Lean on community during tough patches C. You don't have to prove anything to me or others, but prove to yourself you won't give up D. Ask questions, don't just complain E. Ups and downs are part of the path to success F. Your choice whether a setback is the end or a lesson IV. Application to Trading A. Recent Sideways action means risk management adjustments needed B. If still trading same size, probably overtrading C. Might have paid expensive lesson, now decide if will learn D. I've been persistent through challenges in business and health E. See problems as lessons, not good/bad F. Success is a Process Contact: [email protected] Disclaimer: https://stocktradingpro.com/disclaimer/ Stock Trading Pro LLC and Top Trading Pros LLC are separate but affiliate companies. /episode/index/show/9119d9f9-06aa-47c9-8166-db17707df142/id/29643638

The Daily Ticker: EP 14- Coaching Call Recap: Trade Management 07/12/2023

The Daily Ticker: EP14: The AI Stocks Bubble 06/05/2023

The Daily Ticker: EP 13-DIS or NFLX, Who has better cash flow? With David Trainer 05/23/2023

The Daily Ticker: EP 12-Live Trading Replay 05/19/2023

The Daily Ticker: EP 11-How Successful People Think. Mastermind Recap. 05/08/2023

The Daily Ticker: EP 10-AAPL & NVDA Growth Potential, With David Trainer 05/04/2023

The Daily Ticker: EP9: Tesla & Netflix Earnings – David Trainer 04/20/2023

The Daily Ticker: EP8: The Miracle Trading Plan You Need To Know 04/19/2023

The Daily Ticker: EP7: Volatility, Risk and Sector Rotation 04/17/2023

The Daily Ticker: EP6: David Trainer, New Constructs. A deeper look into earnings. 04/13/2023

The Daily Ticker: EP6: David Trainer, New Constructs. A deeper look into earnings. Today's episode of The Daily Ticker Podcast welcomes David Trainer of New Constructs to bring a deeper analytical look at stocks and a longer term view of the markets. David also discusses the major difference between "economic earnings" and the typical GAAP earnings that most investors are seduced into and the expensive problem it creates. Episode Topics: Sector rotation: Out of tech and into healthcare. Macro trends at S&P 500 and sector breakdowns. David's take on Financial contagion. Is it over? Will this lead to a credit crunch? Bank earnings coming up. Any solid companies to like and why? Tesla reported solid delivery numbers but lowered prices, typically not a good sign for margins. The market seems to not like the news. A review of Tesla's stock price and what it implies about future growth. David looks at the financials of two other auto manufacturer stocks that look interesting, and possibly undervalued. New Constructs https://www.newconstructs.com/ "Core Earnings contains information about future performance that is incremental to Street Earnings." HBS & MIT Sloan professors Episode Downloads 1. Tesla Update: How This Stock’s Outrageous Valuation Could Destroy All Zombie Stocks https://www.newconstructs.com/wp-content/uploads/2023/04/TeslaUpdate_2022_14_2022-1.pdf 2. Latest report on JPMorgan https://www.newconstructs.com/wp-content/uploads/2023/04/LongIdea_UpdateJPM.pdf 3. Macro Research: Economic Earnings vs GAAP Earnings Across the Entire Market & All Sectors https://www.newconstructs.com/wp-content/uploads/2023/04/NC2000_SectorEconomicEarningsVsGAAPEarnings4Q22.pdf 4. Macro Research: Price vs Economic Book Value Trends for the S&P 500 and All Sectors https://www.newconstructs.com/wp-content/uploads/2023/04/SP500_SectorPEBVEconomicBookValue_4Q22.pdf Society of Intelligent Investors Pete Renzulli | Stock Trading Pro https://stocktradingpro.com/invite Visit our YouTube channel for training. Be sure to subscribe. https://www.youtube.com/c/StockTradingPro Follow Me on Twitter: https://twitter.com/PeteRenzulli Contact: [email protected] Disclaimer: https://stocktradingpro.com/disclaimer/ /episode/index/show/9119d9f9-06aa-47c9-8166-db17707df142/id/26537814

The Daily Ticker: EP5: Building Winning Positions 04/12/2023

The Daily Ticker: EP4: Hot Sectors & Bank Earnings 04/09/2023

The Daily Ticker: EP3 Two Steps To Getting Profitable 04/06/2023

The Daily Ticker: EP2 Advance Decline, Bullish Sectors & The VIX 04/04/2023

The Daily Ticker: EP 1-Has the Stock Market Bottomed? 04/03/2023

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