Diana Perkins shares how you can master your emotions through discipline for trading success. Her journey has taken her from a childhood fascination with finance to building a career in trading and eventually launching her own trading education business. She mentors aspiring traders and emphasizes that long-term success is overwhelmingly about emotional discipline and risk management.
We discuss...
- Diana Perkins shares that she knew finance was her calling from a young age, charging her sister interest on loans at age nine.
- She fell in love with trading stock options and derivatives, and mentors hundreds of aspiring traders.
- Today, Diana runs her own trading education business focused on teaching new traders with an emphasis on risk management.
- Most traders, particularly currency traders, tend to blow up at least one account as a "rite of passage."
- Fear, greed, and mindset are much bigger factors in trading success than simply knowing technical skills.
- Diana works extensively with options traders, helping them overcome the initial intimidation of options complexity.
- She emphasized the importance of discipline and emotional control in trading over just understanding strategies.
- Her favorite strategy when trading professionally is vertical spreads because of their limited risk and “set it and forget it” nature.
- She shared that she still trades today, both in her own account and through a virtual portfolio for her stock-picking service.
- Most people’s natural instincts — fear, greed, impatience — are what make trading so challenging.
- Even random stock picks can perform well if trade management and discipline are handled properly.
- Diana emphasizes that discipline, probability, and risk management are at the core of successful trading, not just stock picking.
- It's important to focus on the amount of premium at risk rather than the number of contracts or shares controlled.
- Verticals require holding to expiration to capture full profit potential since gains are capped.
- Implied volatility (IV) can often cause seemingly "off" prices, particularly around earnings and major events.
- Consistency over time is critical to profiting from strategies like IV trading, much like "sell in May" seasonality trades.
- While AI tools can assist, she double-checks everything manually due to her auditing background and mistrust of "black box" systems.
- Although past performance isn't predictive, understanding human psychology — fear and greed — can offer powerful trading insights.
Today's Panelists:
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For more information, visit the show notes at https://moneytreepodcast.com/discipline-for-trading-success-diana-perkins-708