Most traders know that you can’t predict the markets, but they trade as if they can. This has to be the most common and costly trading mistake of all. Goes to show the difference between knowing and doing.

Sandeep Rao (musandz) recently recorded a podcast with the great Tom Sosnoff, co-founder of Thinkorswim and tastytrade, on our new YouTube channel, and here’s what Tom said:

“It takes a long time to convince yourself to learn certain things—mostly because we all have big egos and our own ideas. It took me a really long time to realize that I don’t actually know what’s going to happen next. I used to think I had an edge because I’ve spent four and a half decades watching markets. I’d tell myself, “Nobody has watched more ticks in the S&P than I have over the last 40 years, so that should give me an edge.”

But it doesn’t. And it took me a long time to appreciate that I don’t have any real edge over anyone else when it comes to predicting what happens next. I do have some comfort in having seen just about everything once or twice, but that’s not an edge.”

Tom has been trading for decades, and there are so many takeaways in the conversation.

Watch the episode here.

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