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Top Traders Unplugged

BO41: How to Deal with Clients During Drawdowns

Top Traders Unplugged

Niels Kaastrup-Larsen

Business, Business News, Investing, News

4.8670 Ratings

🗓️ 23 March 2020

⏱️ 3 minutes

🧾️ Download transcript

Summary

How you deal with clients during drawdowns and how you manage expectations can make or break your business?

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Transcript

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0:00.0

And I had a tweet this week that was surprisingly was the most popular.

0:09.0

And maybe I'm just surprised that it probably came from people who were like the three of us who like to trade.

0:16.0

And who trade for clients.

0:19.0

And in a week like this, following the process, which is going to

0:23.0

work over a long period of time, but possibly not work in the short term, case and point,

0:30.3

they hear it from the clients. And so we have this little group, this camaraderie with all of

0:35.5

the people out there who are like us who trade for other people and I have to hear the criticism or the questioning of,

0:44.3

do you know what the hell you're doing?

0:46.3

And so one of the tweets this week was me retweeting a friend of mine and saying, I prefer the clients who understand that they really

0:58.0

don't understand how to trade these markets. So I got tons of love from that tweet. And so I'm

1:04.1

thinking, oh, that's a lot of good clients, right? Oh, probably not. Probably people just like the three

1:08.9

of us. Although that tweet did get favoreded by two of my

1:14.7

largest clients this week. So one of these guys has been a client for a while and he,

1:21.1

whenever I talk to him on the phone or in person, I start to explain a recent performance and he'll

1:26.8

cut me off and say, stop, stop,

1:28.4

just tell me you are continuing to follow the systems. That's all I want to hear. So that's a really

1:34.9

good client. But it does get a little insulting or, you know, for 35 years for me to always be questioned, do you know what you're doing?

1:46.4

Can't you improve?

1:47.5

Why don't you use the VIX?

1:49.8

All kinds of things, which I think I have an open mind and I take seriously and say, yeah,

1:54.2

you're probably right.

1:55.6

But you do get a tinge of maybe I could do it better than you from people who don't have to live through the

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