Bay Trading: an intro by Austin Mitchum

Perspectives from an Australian day trader

Nov 23, 2023

Introduction:

It has been a while since I have shared any content publicly via social. I am always writing behind the scenes and it is probably the central tool for my growth. Writing helps me voice things, it helps me reflect and it helps me internalise. My character isn’t best suited to the bantz and promotion of 280 characters (or whatever the latest new X update is). I always struggled with how to best engage without it coming across as promotional, braggadocio and the Schadenfreude that litters much of social. The reality is the market over the last two years has humbled most of us. New priorities take over. Yet for the first time in a while I feel everything has aligned professionally and personally to reconnect once more. There is so much great content out there and I think I could really contribute something of value. Thus, writing via this Substack is the best medium for me and in line with my new goals.

Who Am I and what can I offer?

I am a short term prop Equities day trader based in Australia. My business model and strategies are built around trading quality short term catalysts that ultimately drives stocks. This style of Trading has been well voiced and detailed by my close friend and mentor, Bella, at SMB. Ultimately, I am doing nothing new here and I have just sprinkled this concept with my own fundamental and technical nuances that works for me in my market. Finding an edge takes time and constant application. I have been a full time professional trader in Australia since 2014. Prior to that I did the graduate circuit at an Investment bank in London and had the best trading seat for a young lad during the 2005 to 2009 boom and bust cycle. No doubt at the time I thought I was special but the reality is I knew fk all. I have had some successes, I have had many more failures, and I continue to make mistakes. I am still here day to day grinding it out. Trading may seem rather glamourous but the reality is far from this, especially as a day trader. Its a constant journey and this is truly what I want to show with my words from the front line. I think I can offer something unique here with examples from my trade reviews, my monthly performance analysis as well as general anecdotes about this performance domain.

I am fortunate to be based down in beautiful Cronulla writing these words and watching the waves across the bay. Figure the title. You local guys should swing by.

Why write?

There are a few reasons I wanted to put some content out there:

A natural extension of what I am always doing behind the scenes: as I mentioned, writing helps me reflect on my performance and creates the space to get better for next time. I have always written up daily reviews, dived deep on specific bigger plays, and analyzed my monthly performance with clear goals going forth. Kids have certainly slowed me down so now I focus on the most important. The biggest engagement I ever got on Twitter was my publishing my trade reviews and it seems this what the punters truly want! It is what I can offer that is rather unique. Sharing these reviews no doubt brings up the point of Edge erosion. Why reveal too much and risk more competition and more slippage especially in a market that can be thinly traded like Australia? It is a fair point for sure. There are no doubt some strategies and intricacies that I would not share fully publicly. I have no desire to start a public chatroom especially given this is well established in Australia. I also want to write more broadly beyond just trade reviews. However, the reality is that much of what I do write about is processes, how I come to make decisions and any breakdowns in said system. How I trade something will be very different to the next man based on their own strengths and skills. The smart men and woman amongst you will take what you want and refine for yourself. Furthermore, I personally totally agree with this take by the Au GOAT James Chen: https://x.com/skyquake_1/status/1699770241633653185?s=20. I owe an incredible amount of gratitude to him who has been an inspiration in my career. Which leads me to the next point.
Networking and building out my team: any little success I may have had is largely attributable to the environment I have placed myself in, and the people I surround myself with to date. I know my strengths and equally I know my shortcomings. I started out as a Technical trader who couldn't quite make it work. So I had to be open-minded and sponge if I was going to make it work. So:

From Bella and SMB I learnt the "Stocks in Play" model which is fundamental to my whole trading; (@MikeBellafiore)
From Bryce I learnt the importance of tape reading and heeding the price action above all; (Twitter gone rogue)
From James I learnt the importance of stats, automation, building ridiculous Tech and exploring multiple edges; Kev at Bluelake taught me linear regression and how to really own a strategy; (@skyquake_1)
From Nick I learnt the importance of being on side-lines and patience until your edge presents itself. He also regularly reminds me that it is good to go deeper and be sceptical; (@longhorncapital)
From Lance I learnt about being fully process driven, building systems, and holding myself to the very highest standards. Someone get that man some kids to slow him down; (@TheOneLanceB).
More recently, I left the comfort of my old firm at Bluelake and started started trading remotely during COVID lockdowns for Propex Equities. I built my new business out of a remote Cronulla office but I craved the in-house team environment from a time gone by. Fortunately, a local developing Trader reached out to me via my old Twitter posts, I saw his talent, and so we started working together. What started off as a trading assistant role has now fully evolved into a partnership where we are sharing high level intel, tech, strategies and more. Its all Gucci but just don't give that man a Philter! (@hammock_capital). In seriousness, we are now a team and I am no doubt much better as a consequence. Most importantly, I am really enjoying myself. This all happened by paying it forward and putting it out there. There are no doubt many more traders or specialists who offer huge edge and gaps to my blind spots e.g. Resources specialists and GEOs, FA analysts, Coders etc. In turn, I know from my template with my colleague how to offer the right tools and guidance to upcoming promising individuals. I am hoping this finds those avenues.

Opportunities beyond my trading: as much as I love trading, I personally think my bigger picture role in life would be to coach established traders and inspire others. I grew up playing sports, which was my true passion before I got knackered. I see coaching as an extension. This Substack could provide that platform to attract Traders who want higher level mentorship and coaching. Its all possible by putting it out there.

Conclusion and one good trade:

So thats my cheesy utopian vision. Lets see how it plays out. Appreciate any feedback on my content and what you want to read more of.

In the meanwhile, here is a snippet of a recent Trade event to wet the appetite. No doubt highlighting the good ones vs the bad but its my first post so needs a pump like a good Next cap raise mailout: SYR on China graphite export restrictions 20/11/23

Feel free to contact me