These are the concise notes from Christian Flanders’ podcast with Richard Moglen on his 433% success in the US Investing Championship (part 1).
For the full notes, click here.
1. Christian’s Journey from Poker to Trading
Christian Flanders, the second-place winner of the 2024 USIC championship with a 433% return, transitioned from poker to trading by leveraging skills in probability, risk management, and emotional control.
2. Poker’s Influence on Trading
Christian honed his poker skills in college, using data analysis and discipline to build capital. He later left a prop trading firm to play poker full-time, where he learned the dangers of emotional decision-making and the importance of quitting while behind—a lesson that proved invaluable in trading.
3. Key Similarities Between Poker and Trading
Both poker and trading require managing emotions, making calculated bets, and dealing with uncertainty. While poker players assess opponents’ patterns, traders must control emotions over extended trade durations. Success in both comes from focusing on controlled risks rather than seeking certainty.
4. Boom-and-Bust vs. Risk-Averse Trading
Christian initially applied aggressive poker strategies to trading but faced major drawdowns due to a lack of risk management. He refined his system over eight years, shifting from a boom-and-bust approach to disciplined risk control, realizing that trading lacks the fixed probabilities of poker.
5. Managing Drawdowns and Risk
Independent traders must self-regulate to avoid reckless decisions. Christian adopted an anti-Martingale strategy—trading small when losing and sizing up when winning—to control drawdowns and protect gains. Keeping trading simple and focusing on risk-adjusted returns became his core philosophy.
6. Trading Psychology and Emotional Control
Christian’s worst trade—ignoring a stop loss on SVXY in 2018—taught him that emotions drive poor decisions. He emphasizes that without risk management, traders will panic-sell at lows and chase highs, leading to losses. Learning to master emotions is 95% of trading success.
7. Learning from Past Market Winners
Christian meticulously studies historical stocks, identifying patterns like VCPs, power plays, and episodic pivots. He reviews hundreds of stocks dating back to the 1930s to develop conviction in his setups, believing there are no shortcuts to success—only continuous learning.
8. Position Sizing Based on Market Conditions
Adapting position sizes based on market conditions prevents significant drawdowns. Inspired by Mark Minervini’s risk management strategies, Christian limits monthly losses and sizes positions strategically, ensuring long-term consistency over short-term fluctuations.
9. Christian’s Recommended Books
Christian’s interest in trading began in high school with How to Make Money in Stocks and Reminiscences of a Stock Operator, the latter being a favorite for its timeless market lessons.
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