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Chat With Traders

328 · Paul Scott - Why Technical Analysis is Just Retail Noise

Chat With Traders

Kevin Avery

Business, Education, Investing

4.82.3K Ratings

🗓️ 22 July 2026

⏱️ 87 minutes

🧾️ Download transcript

Summary

Paul Scott entered the high-stakes trading floor of the London Metal Exchange at just 16 years old, survived years of trading under survival-mode pressure, and turned old-school pit wisdom into lifelong success.
After starting with a three-month probation and carrying the weight of his father's legendary legacy, Paul developed a disciplined approach to the most volatile corner of the market: commodities and forex. Today, his edge is built on experience and his pit logic trading approach, using price and value to guide his decisions while human behavior gives him the confidence to take the trade.In this conversation, Paul pulls back the curtain on his Survival to Success Arc, sharing the specific setups that allowed him to survive and scale through market chaos. He breaks down the fundamentals of his strategy, the open outcry framework, and how he transitioned from trading under pressure to trading with total directional agnosticism. In this episode, we explore:• How Paul Scott Navigated 30+ Years of Volatility on the LME Trading Floor• Paul’s start at 16 years old and trading under extreme physical and mental pressure• The mechanics behind his pit logic trading approach• Why Timeframe Doesn’t Matter
 • Why every major trade should be simple enough to explain in one sentence• How Do the Big Money Trade?• The Traits Identified in Successful Students• His advice for beginner traders About Paul Scott:Paul is a veteran commodities and forex trader known for his raw, practical approach and deep generational knowledge. Starting with the guidance of his legendary father, Harry Scott, he has documented more than three decades of trading through massive market scandals and institutional shifts. He specializes in momentum strategies and order flow behavior, focusing on the intersection of horizontal value zones and trader psychology. Links + Resources:Website: https://paulscottfx.com/Youtube: https://www.youtube.com/@paulscott3066/videosLinkedIn: https://www.linkedin.com/in/paulscottfx/ Sponsor of Chat With Traders Podcast:Trade The Pool: http://www.tradethepool.com Time Stamps:
 Please note: Exact times will vary depending on current ads. 00:00 Why Technical Analysis Is Just Retail Noise 02:14 Being a Second-Generation Trader 06:36 The Pressure of Having a Trader Dad 07:48 What Was the Pit Really Like? 15:06 The Biggest Metal Scandal in History 21:00 Market Manipulation in the Digital Age 24:50 What Is Pit Logic? 31:56 Working with Goldman Sachs 37:05 Modern Retail Traders vs. Professionals 38:40 Can Traders Find Success Purely on Technicals? 44:00 Trading for a Client vs. Trading for a Company 42:55 Why Timeframe Doesn’t Matter 47:42 Explain Your Trade in One Sentence 49:39 Thinking About What the Institutions Are Doing 54:04 How Do the Whales Trade? 1:01:20 Let's Talk About Capital Preservation 1:06:17 The Traits Identified in Successful Students 1:12:27 Is There a Trade That Stands Out to You? 1:20:18 What Is Your Advice to Your Younger Self? Trading Disclaimer: Trading in the financial markets involves a risk of loss. Podcast episodes and other content produced by Chat With Traders are for informational or educational purposes only and do not constitute trading or investment recommendations or advice. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

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0:11.2

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0:27.7

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0:56.0

So the 28th of September, 20, said from 11 a.m. subject to availability.

1:00.3

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1:05.6

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1:25.0

Learn more at Accenture.com slash Spotify-Uk. Said this to the clock, who was that for? He said this is for Manfred upstairs. Manfred was the owner of the company. So he clicks in on the phone line. He says, Manfred, you bought you thousand tons. We'll give you an average price. At which point, Manfred picked the phone up and said, Harry, I didn't say effing tons. I said

1:45.5

effing lots. Get your effing ass back in there and do what I've told you to do. So he drops the

1:51.1

phone, goes running back into the ring, just basically just buying everything that you possibly

1:56.5

could. Bell goes at five o'clock. It's closed above this price. He cannot work out for the life of him. Why, Manfred's asking to do it. This was before 8 o'clock, so the market opened at 8, and it was kind of like tumbleweed before then. It was a real big calm before the storm. And then the minute 8 o'clock, boom, it's like the phone boards's just lit up and it must have been the same for every

2:17.9

single, you know, company that was on the floor at the time. So that was crazy. I'd never seen,

2:23.2

and still to this day, there was never been another day in the copper market like that. So

2:27.2

if you can imagine that we started out copper trading at round about 2,800 bucks a ton,

2:32.1

and by the time we'd finished, it had dropped 50% in a day. It was just bonkers. You could literally, I mean, as a clerk, you could not keep up with what your trader was doing. Because it was just, yep, yep, yep, yep, yep, yeah. And, you know, and again, you know, you had to rely upon it being, my word is my bond, this is what we did.

2:51.7

You know, even if it cost your company money, you know, your word was your bond.

...

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