After starting with Conti handling large institutional accounts like Campbell Soup Company and Homestake Mining, Peter went on to found Factor Trading Co., Inc. (now Factor LLC) in 1980 to trade proprietary capital. Author of the classic Diary of a Professional Commodity Trader and featured in Jack Schwager’s Unknown Market Wizards, Peter has spent over five decades navigating inflationary booms, market crashes, and the transition from open-outcry pits to electronic markets. Today, his edge is built on process, discipline, and classical charting principles that have stood the test of time.
In this conversation, Peter pulls back the curtain on his five-decade journey, sharing the specific principles that have allowed him to navigate the markets for half a century. He breaks down why high win rates are a myth, how he caps risk at 60–70 basis points per trade, and how he transitioned from searching for quick wins to building a career as a master craftsman in speculation.
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In this episode, we explore:
• Peter Brandt’s 50+ year journey from advertising to commodity pits and Factor Trading
• Why high win rates are a myth and how the 80/20 Pareto Principle applies to trading profits
• How Peter limits risk to 60–70 basis points per trade and why he never pyramids positions
• Why he shuns indicators and diagonal trend lines in favor of horizontal classical patterns
• Why the real edge comes from risk management and emotional control, not chart patterns
• Peter's advice for the next generation on craft, capital preservation, and longevity
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About Peter Brandt:
Peter L. Brandt entered the commodity trading business in 1976 with ContiCommodity Services, a division of Continental Grain Company. In 1980, he founded Factor Trading Co., Inc. (now Factor LLC), trading proprietary capital across forex, futures, fixed income, and equity markets. Over his career, he has managed trading activities for major institutional clients, including Commodities Corporation of Princeton, NJ.
Peter is the author of Trading Commodity Futures with Classical Chart Patterns (1990) and Diary of a Professional Commodity Trader (2011), which held Amazon's #1 trading rank for 27 weeks. Featured in Jack Schwager's Unknown Market Wizards and named among the 30 most influential people in finance by Barry Ritholtz in 2011, Peter is widely recognized as one of the world's foremost authorities on classical chart analysis.
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Links + Resources:
X (Twitter): https://x.com/PeterLBrandt
Website: https://www.peterlbrandt.com/
Sponsor of Chat With Traders Podcast:
Trade The Pool: http://www.tradethepool.com
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Time Stamps:
Please note: Exact times will vary depending on current ads.
00:00 How a 50-Year Veteran Thinks About Risk Management
06:21 Wanting a Career from Trading
10:56 Taking 5 Years to Be Profitable
16:40 Don't Quit Your Day Job to Trade Until You Have a Proven Track Record
23:20 Cut Losses Short and Let My Winning Trades Run
28:00 Understand the Risk and the Probability
32:00 20% of My Trades Account for at Least 80% of My Total Profits
36:48 Sizing Is Really Important and It Is the Reason Why a Lot of Novices Blow Out
44:27 Removing Yourself from the Equation
49:00 I Don't Believe in Optimization Where You Have a Set of Rules
54:32 I Like Horizontal and Continuation Patterns
56:10 I Don't Believe in Indicators Because They're Just Derivatives of Price
1:02:07 Technical Analysis: Charts Resonated with Who I Am
1:04:55 The Time Frame I Trade
1:08:58 How Important It Is to Identify How You Trade
1:10:56 Having a Mentor
1:16:30 What Are You Most Proud of in Your Career
1:21:51 I Enter Every Trade Assuming It's Going to Be a Loser
1:27:51 Become a Craftsman of Trading
1:35:29 You Can’t Go Broke Taking Small Profits, But You Will Go Broke Taking Large Losses
1:37:21 Peter's Takeaway He Leaves to the Next Generation of Traders
1:38:00 Where Can Traders Find You
Trading Disclaimer:
Trading in the financial markets involves a risk of loss. Podcast episodes and other content produced by Chat With Traders are for informational or educational purposes only and do not constitute trading or investment recommendations or advice.
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