Simkin: Effective mentorship models the decision process rather than prescribing actions
Todd Simkin · #119 Todd Simkin: Making Better Decisions · Sep 7, 2021 · at 29:44
Todd Simkin, trader and educator at Susquehanna International Group (SIG), discusses pedagogical methods for training junior traders.
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“And a big part of how information is passed from the mentor to the mentee is by modeling the decision process. It is not enough to say you should have raised vol by two points when this trade came in. Instead, it's so much more important to say, okay, when this trade came in, I remembered that earlier in the week, somebody had traded this other structure, and when they did, I updated my, you know, possible outcome space to look different. This trade confirmed what that other trade did, so, so now I was, I just more heavily weighted this other outcome, and the result was that I took volatility up two points. Then someone knows not only what to do, which is really not the important thing to take away, but how to do it, which is very much what we're looking to teach.”
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