Simon Ree has been an active trader and investor since 1992, accumulating over 20,000 hours of market analysis experience. Formerly leading Goldman Sachs' Sydney markets desk and holding senior roles at Citibank Singapore, he now specializes in options trading, mentorship, and public speaking. A certified Jeet Kune Do instructor and Reiki master, Simon blends trading expertise with holistic personal development.
Parallels Between Martial Arts and Trading
Q: Your book The Tao of Trading draws inspiration from Bruce Lee’s The Tao of Jeet Kune Do. How do martial arts principles apply to trading?
Martial arts train practitioners to respond to stress without emotional interference—a critical skill for traders. Novices often react with fear or anger during sparring, leading to suboptimal moves. Similarly, trading stresses can trigger emotional decisions. Achieving emotional neutrality ensures the "thinking brain" remains in control, a state honed through martial arts practice.
Debunking Wall Street Myths
Q: You challenge the notion that 10% annual returns are exceptional. Why?
The S&P 500 averages ~10.3% annually since 1957—achievable with zero expertise but requiring endurance through market downturns. Traders, however, selectively engage risk. Contrary to the myth that "you can’t time the market," trend-following techniques identify high-probability entry points, enabling substantially higher returns.
Trading Psychology Tools
Q: How do breathwork, meditation, and EFT enhance trading performance?
- Breathwork: Offers immediate calmness and focus.
- Meditation: Builds long-term emotional awareness for disciplined responses.
- EFT (Emotional Freedom Technique): Bridges instant relief and cumulative benefits, though it’s less conventional.
The Power of Trend Following
Q: Why should new traders prioritize trend following?
Trend following is like sailing with the wind—minimal effort for maximum momentum. Picking tops/bottoms satisfies the ego but lowers profitability odds. Aligning with trends stacks probabilities in your favor.
👉 Master trend-following strategies to leverage market momentum effortlessly.
Historical Trading Influences
Q: Which traders inspire you?
- Jesse Livermore: His psychology insights in Reminiscences of a Stock Operator remain timeless.
- Paul Tudor Jones: Known for macroeconomic trend analysis and risk management wisdom.
The 21 EMA: A Trader’s Compass
Q: Why emphasize the 21 EMA?
Prices inherently revert to their mean. The 21-day exponential moving average (EMA) acts as a dynamic "mean," signaling trend strength and overextension—key for timing entries and exits.
Why Equity Options?
Q: What drew you to equity options?
Options merge Simon’s passion for equities with derivatives’ flexibility. Their asymmetric payoff (unlimited upside/limited downside) and profit potential in any market make them unparalleled.
👉 Explore options trading strategies to amplify your portfolio’s potential.
FAQ
Q: Can beginners achieve high returns with trend following?
Yes. Trend following simplifies decision-making by focusing on momentum, making it accessible even for novices.
Q: How long does it take to master trading psychology?
Consistent practice of breathwork/meditation yields improvements within weeks, but mastery is an ongoing journey.
Q: Are options riskier than stocks?
Not inherently. Proper education and strategies like spreads can define and limit risks effectively.
Q: What’s the first step to becoming a profitable trader?
Develop a statistical edge, then refine emotional discipline through tools like Simon’s The Tao of Trading.