Painting the Tape – Season 2, Episode 3: Execution, Scaling, and Taking Profits

Hosts: Leo, Stowe, XY, Nick

[00:00] Introduction & Setting the Stage
The crew opens Episode 3 by riffing on podcasting quirks, introducing new voices, and setting up the episode’s focus: execution in trading, with a promise of fresh perspectives and differing opinions.

[01:45] Evolving Execution Styles
Stowe reflects on how his execution has changed since Season 1, discussing the development of new rules and adapting to different market conditions. The group shares how their approaches to entering trades have evolved with experience.

[03:30] Scaling In, Sizing, and Volatility
The hosts debate scaling in versus going “full clip” on entries, and how volatility impacts their decisions. They discuss the mental game of adding to positions, the challenges of bad fills, and adapting size based on market conditions.

[07:45] Take Profit Approaches & Risk Management
The conversation shifts to take profit strategies. The group shares their methods for scaling out, managing risk, and the importance of having a consistent process. They discuss the pros and cons of mechanical versus discretionary exits.

[13:00] The Myth of “Never Add to a Loser”
Leo challenges the conventional wisdom of never adding to a losing position, arguing for nuance and context. The group explores the difference between a “loser” and an invalidated trade, and the importance of knowing your risk range.

[18:00] Confirmation, Conviction, and Trade Management
The hosts discuss the role of confirmation in entries, how conviction fluctuates, and the discipline required to cut trades when conviction drops. They share stories about adapting to changing market information and the mental side of trade management.

[23:00] Process, Hindsight, and Evolving Strategies
The conversation covers the dangers of hindsight bias, the reality that every trade changes as it unfolds, and the need to constantly adapt. The group emphasizes the importance of process over perfection and learning from each trade.

[28:00] Volatility, Vibes, and Knowing When to Quit
Nick and XY reflect on how volatility and “vibes” influence their trading decisions, including when to scale in, when to take profits, and when to call it a day. The group jokes about the pitfalls of overtrading and the lessons learned from tough sessions.

[31:30] Closing Banter & Sign-Off
The episode wraps up with trademark humor, a nod to the ups and downs of trading, and a thank you to listeners. The crew signs off, promising more candid trading talk in the next episode.