What Stock Traders Should and Shouldn’t Do: Practical Wisdom from Anton Kreil.
Do the opposite to the popular opinion.
Anton Kreil, a former Goldman Sachs trader turned trading mentor, is known for his blunt, counterintuitive, and thought-provoking insights on financial markets. His philosophy often challenges conventional wisdom, flipping mainstream trading advice on its head. Today, we’re unpacking some of his most compelling ideas to help traders sharpen their strategies and gain a competitive edge in a field where 90% fail.
But here’s the twist—this isn’t just about following “rules.” Kreil advocates a mindset shift, not just mechanical habits. So, let’s dive into what stock traders should and shouldn’t do, with practical takeaways and some unexpected truths.
What Traders Shouldn’t Do: Breaking Bad Habits
1. Stop Chasing the News
Most retail traders think staying glued to Bloomberg or CNBC gives them an edge. Kreil calls this out as pure noise. By the time news hits the public, institutional traders have already acted. Retail traders are left chasing crumbs, reacting emotionally to headlines rather than executing well-thought-out strategies.
Counterintuitive Insight:
The best opportunities come from being ahead of the news cycle, not reacting to it. Instead of obsessing over short-term events, develop a macro framework that anticipates trends. Think like a chess player, not a firefighter.
Practical Takeaway:
Dedicate time to reading deep-dive reports, analyzing economic indicators, and understanding sector-specific fundamentals. For example, if inflation is rising, how does this impact companies with high input costs versus those with pricing power? Build hypotheses before news confirms them.
2. Don’t Obsess Over Being Right
Kreil often says, “The market doesn’t care about your ego.” Yet, many traders cling to their positions, doubling down to “prove” they’re right. This is a fast track to disaster. Trading isn’t about being right; it’s about making money.
Counterintuitive Insight:
Your win rate is irrelevant. You can be wrong 70% of the time and still make a fortune if your winners outweigh your losers. Professional traders focus on risk-reward ratios and cutting losses early, not on being “right” all the time.
Practical Takeaway:
Set strict stop-loss levels before entering a trade and stick to them, no matter how “promising” the setup seems. For example, if you’re risking $1 to make $3, you can afford to lose multiple times and still be profitable.
3. Avoid “Hot Tips” and Overtrading
Kreil critiques the “get-rich-quick” mentality that dominates retail trading. Chasing hot tips or overtrading out of boredom usually leads to poor decisions.
Counterintuitive Insight:
Boredom is a trader’s secret weapon. The best traders spend most of their time waiting, not trading. Kreil emphasizes patience, comparing great traders to snipers—waiting for high-probability setups rather than taking random shots.
Practical Takeaway:
Keep a trading journal and write down why you’re entering every trade. If your reason is “It felt right” or “I saw a tweet,” stop immediately. Force yourself to trade only when setups align with your strategy.
What Traders Should Do: Building the Right Framework
1. Treat Trading Like a Business
Kreil often laments that most retail traders treat trading like a hobby. But professionals treat it as a business, complete with planning, budgeting, and risk management.
Counterintuitive Insight:
Trading isn’t about freedom or excitement; it’s about discipline. Professionals have detailed playbooks, not impulsive whims. They view each trade as a business decision, weighing costs, risks, and potential returns.
Practical Takeaway:
Create a written trading plan that includes:
• Position Sizing: Never risk more than 1-2% of your account on a single trade.
• Monthly Goals: Focus on consistency over high returns.
• Metrics to Track: Win rate, average risk-reward ratio, and drawdowns.
Think of yourself as a portfolio manager, not a gambler.
2. Learn to Think Probabilistically
One of Kreil’s key teachings is that markets are inherently probabilistic. Every trade is a coin flip, but with preparation, you can skew the odds in your favor.
Counterintuitive Insight:
There’s no such thing as certainty in the market. Instead of looking for “sure things,” aim to tilt probabilities in your favor through research and strategy.
Practical Takeaway:
Adopt a framework like Expected Value (EV):
• High EV = (Probability of Winning x Average Win) - (Probability of Losing x Average Loss)
Focus on trades with positive EV rather than ones that “feel good.”
3. Master Psychology, Not Just Strategy
Kreil emphasizes that the biggest obstacle to success isn’t the market—it’s you. Fear, greed, and impatience destroy more accounts than bad strategies ever will.
Counterintuitive Insight:
Self-awareness is a trader’s most valuable tool. Understanding your emotional triggers can help you avoid costly mistakes.
Practical Takeaway:
• Use Automation: Automate stop-loss orders and position sizes to remove emotion from decision-making.
• Schedule Breaks: Walk away from the screen periodically to reset your mind.
• Post-Trade Analysis: Review trades daily and write down emotional states during each decision.
Bonus: Kreil’s Golden Rule of Wealth Creation
One of Kreil’s most famous teachings is, “If you want to get rich, stop trying to trade your way to wealth.” Trading is a tool for growing wealth, not creating it.
Counterintuitive Insight:
The real path to wealth involves diversifying your income streams. Kreil recommends using profits from trading to invest in long-term assets like real estate or index funds.
Practical Takeaway:
Set aside a portion of your trading profits—say 20%—to invest in long-term, stable opportunities. Use trading to grow capital, but rely on other investments for wealth preservation.
Final Thoughts
Anton Kreil’s teachings are a wake-up call for traders caught in the loop of bad habits and false promises. His wisdom is clear: trading success comes from discipline, preparation, and a focus on probabilities—not from chasing excitement or quick wins.
If this article resonated with you, share it with your network. Let’s challenge the conventional trading narrative and help more people approach the markets with clarity and purpose.
Happy Investing!!