Trader Kane's Trading Insights

Summary

This session was an in-depth interview with Trader Kane, covering his decade-long trading journey, strategies for using prop firm capital, risk management, psychological discipline, and the distinctions between profitable, break-even, and unprofitable traders.
Key topics discussed included his evolution as a trader, managing risk across different account types, the impact of psychology on performance, and best practices for journaling and emotional control.
No specific business decisions or action items were assigned during the conversation, as this was an educational and personal interview rather than a business meeting.

(No action items were mentioned in this meeting.)

Trader Kane entered trading around a decade ago, initially influenced by unrealistic marketing and scams.
His serious trading began in 2015-2016, fluctuated over the years, with a focus on crypto during 2020-2021, including substantial losses during the FTX collapse.
He pivoted back to Forex and futures trading, using prop firms to regain capital and now holds a record payout at JCAP.

Prefers trading personal funds as the ultimate goal but sees prop firms as valuable for gaining initial capital and experience due to accessible funding opportunities.
Prop firm strategies are focused on accumulating small, consistent gains and managing multiple accounts conservatively, with aggressive risk-taking only to escape trailing drawdowns.
Emphasizes the importance of not "shooting for the moon" too early and recommends taking incremental steps to build up capital.

Prop trading uses a systematic, scaling risk approach: increase risk after wins, decrease after losses, with risk ranging from 0.25% to 2% of capital.
Personal account trading allows for more aggressive sizing and risk-taking, using the concept of "house money" after initial funds are withdrawn.
Manages positions actively, often aiming for "base hits" rather than holding out for large wins, and rarely takes partial profits except in exceptional market conditions.
Avoids rangebound markets as his strategy is unprofitable there and prefers expansive, volatile markets with clear retracement/expansion cycles.

Journals only losing or emotionally-driven trades now, having done comprehensive journaling earlier in his career to build consistency and understand his edge.
Believes early-stage traders should journal everything to accelerate the learning curve.

Stresses the importance of accepting losses, seeing trading as probabilistic, and having a rule-based system for stepping away during emotional or losing streaks.
Attributes long-term success to discipline, experience, and being able to control emotional impulses, including revenge trading and overtrading.
Recognizes ego as both a motivator and a potential pitfall, working to contain negative impulses and maintain perspective.
Advocates for focusing on long-term performance (the "marathon") rather than chasing quick wins or succumbing to "internet millionaire" hype.

Sees break-even trading as a positive milestone; the key difference between break-even and profitable traders is rule adherence and continued refinement.
Transition from unprofitable to break-even typically involves eliminating emotional trading and following a structured process.
Profitable trading builds on this by optimizing entries, sizing, and timing based on market conditions and refined intuition.