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Trading Education Posted by Team Topstep December 5, 2019

Managing Risk and Finding Your Trading Niche with David Klusendorf

Episode Summary:

Risk is a big part of life… nothing is guaranteed. In trading, risk is a huge part of the game. So how do you manage risk and live to trade another day? On today’s episode of Limit Up! Jeff talks to David Klusendorf, Chief Investment Officer at Typhon Capital. Listen for a discussion on managing risk and finding your trading niche.

Full Show Notes:

David Klusendorf, Chief Investment Officer of Typhon Capital, likens managing risk to a quote from the movie Good Will Hunting: “I can’t play the piano. When I look at a piano, all I see are black and white keys. But Beethoven saw a symphony.” Likewise, with trading, you have to be able to look at the numbers and see the big picture.On this week’s episode of Limit Up! Jeff talks to David about market volatility and risk. David shares his best tips for managing risk and makes the case for why you need to be curious enough to find your trading niche. He also offers up his advice for new traders and explains why trading is not magic: it’s a lot of behind-the-scenes work.  

  • [00:29] – This week: David Klusendorf
  • [00:49] – Market reaction
  • [08:31] – Jeff Carter interview with David Klusendorf
    • [09:09] – Name A Hotel Room So We Never Forget 
    • [10:45] – How David got into trading
    • [13:37] – Analyzing risk
    • [17:36] – Uncontrollable risk
    • [21:34] – No trade is a trade
    • [25:36] – Institutional risk
    • [30:31] – Mispricing risk
    • [32:43] – Raising hackles
    • [37:22] – Measuring risk in crypto
    • [39:14] – New contracts
    • [41:28] – Trading micros
    • [45:36] – Learning to make a living
    • [51:54] – Dynamite

David Klusendorf is the Chief Investment Officer and a principal of Typhon Capital Management which he joined in March 2015. David serves on Typhon’s Investment Committee and its Risk Committee. He has been a trader for more than 25 years and is a former basketball player for Loyola University Chicago.

This episode of Limit Up! is hosted by Jeff Carter. Jeff is a general partner at West Loop Ventures. In April of 2007, he co-founded Hyde Park Angels and spearheaded the growth and development of one of the most active angel groups in the United States. He has consulted on the startup of several other angel groups. He is a former independent trader and member of the CME Board of Directors and was part of a small group that transformed CME from an open outcry exchange to the largest electronic exchange in the world. In 1998, CME was worth $182,134,000 in membership enterprise value. Today it’s worth $55 Billion.
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Podcast episode production by Dante32.