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In this interview, Simon Ree, a seasoned trader with decades of experience in both the finance industry and as a full-time trader, shares his unique approach to the markets. Having worked for major institutions like Goldman Sachs and Citibank, Simon’s trading style is deeply influenced by his time in the corporate world, but he’s carved out a path that allows him to trade with flexibility and efficiency, all while avoiding the grind of day-to-day market watching.
What you’ll learn here is Simon’s emphasis on risk management, his preference for trend-following strategies, and how he uses a combination of macroeconomic insights and technical setups to guide his trades. He also sheds light on the importance of mindset in trading, especially the ability to manage risk and the discipline required to stick to a strategy. This is a must-read for traders looking to understand how to approach the markets without getting bogged down by constant screen time or emotional trading.
Simon Ree Playbook & Strategy: How He Actually Trades
Focus on High-Probability Setups
Simon’s strategy revolves around finding high-probability trading opportunities. He uses scans to narrow down the universe of stocks and only looks at those with a high likelihood of success. This method helps him save time while maximizing his chances of success.
How to Apply This:
- Use custom scans to filter stocks based on specific criteria like trend strength, volume, and volatility.
- Focus only on trades that meet your defined scan criteria.
- Don’t trade every signal – only act when the setup is clear and meets your high-probability threshold.
Risk Management is Key
For Simon, managing risk is far more important than trying to be right on every trade. He constantly asks himself: “How much could I lose?” instead of “How much can I make?” This mindset keeps his losses small and manageable, allowing him to live to fight another day.
How to Apply This:
- Never risk more than 1-2% of your account on a single trade.
- Use stop-loss orders to automatically exit positions if they move against you.
- When in doubt, reduce your position size to minimize risk.
- Take a step back after a losing streak—go to cash if your portfolio drops more than 15%.
Trend Following with a Twist
Simon is a trend follower at heart. He trades in the direction of the market’s prevailing trend, but he also employs counter-trend strategies when the market environment calls for it. This flexibility allows him to profit in both trending and choppy markets.
How to Apply This:
- Identify the dominant market trend using technical indicators like moving averages or trend lines.
- In a strong trend, enter trades that follow the prevailing direction.
- In a choppy market, look for high-probability turning points and consider counter-trend trades.
- Adjust position sizes based on market conditions—take larger positions when trends align with macro indicators.
Daily Routine for Maximum Efficiency
Simon’s approach to trading isn’t about sitting in front of the screen all day. His daily routine is designed for efficiency. He scans for high-probability setups, checks macroeconomic factors, and only spends a few minutes placing orders.
How to Apply This:
- Run your scans for high-probability setups first thing in the morning or whenever your trading window opens.
- Check the macroeconomic landscape (e.g., major indices, sectors, commodities) to understand the broader market context.
- Use alerts or triggers to minimize screen time, so you’re only executing trades when necessary.
- Keep trading time limited to 20-30 minutes per day to avoid overtrading and emotional decision-making.
Technical Analysis Over Fundamentals
Simon uses technical analysis exclusively. He doesn’t focus on the underlying fundamentals of a stock but instead concentrates on price action and technical indicators. His strategy is built around identifying clear patterns and trends, without trying to predict the market’s moves based on news or earnings reports.
How to Apply This:
- Focus on price action and technical indicators like moving averages, RSI, and MACD to guide your trades.
- Avoid making trades based on company news or earnings unless it fits into your technical setup.
- Look for strong trends and patterns (breakouts, pullbacks, etc.) that align with your trading plan.
Position Sizing Based on Market Conditions
Simon adjusts his position size based on the clarity of the market conditions. When everything aligns (macro indicators and technical setups), he’ll take larger positions. When the signals are mixed, he reduces his exposure and trades more conservatively.
How to Apply This:
- In favorable market conditions (e.g., clear trend with supporting macro indicators), increase your position size.
- In uncertain or choppy markets, reduce your position size and focus on preserving capital.
- Always have a clear exit strategy for each trade, whether it’s a stop-loss or a target price.
Embrace a Humble, Risk-Manager’s Mindset
Simon stresses the importance of mindset in trading. He suggests that traders should think of themselves as risk managers rather than just market participants. This mindset helps keep emotions in check and allows for more rational decision-making.
How to Apply This:
- Approach each trade with a focus on minimizing potential losses, not maximizing gains.
- Regularly evaluate your mindset—if you start feeling overconfident, consider taking a break or reducing exposure.
- Cultivate humility; remind yourself that the market doesn’t owe you a profit, and always stay alert for changes in market behavior.
Mastering Risk Management: How to Keep Losses Small and Controlled
Simon Ree emphasizes that risk management is the backbone of any successful trading strategy. He believes that the key to long-term success isn’t about always being right but rather about avoiding catastrophic losses. In his approach, Simon is highly disciplined when it comes to controlling how much he risks on each trade, always ensuring that no single loss can significantly impact his overall portfolio. By adhering to strict risk limits, he ensures that small losses never snowball into account-destroying events. This mindset is critical for traders who want to survive the ups and downs of the market.
Simon’s rule of thumb is to never risk more than 1-2% of his total account on any given trade. This ensures that even after a series of losing trades, he still has enough capital to continue trading and eventually hit a profitable streak. He stresses that a trader’s job is to protect their capital above all else. In fact, Simon recommends that traders focus more on minimizing losses than trying to hit home runs with every trade. By following this simple yet powerful risk management principle, Simon has been able to maintain a sustainable trading career while avoiding the big blow-ups that many traders face.
The Power of Trend Following: Identifying High-Probability Setups
Simon Ree’s trading strategy is deeply rooted in trend following, a method that allows him to ride the momentum of the market rather than try to predict sudden reversals. He believes that identifying and aligning with the prevailing trend is one of the most powerful ways to maximize returns. Simon uses a set of technical indicators to spot clear trends and then looks for high-probability moments to enter the market. This approach allows him to focus on opportunities that have a greater likelihood of success, filtering out noise and avoiding counterproductive trades.
To apply this, Simon runs scans that highlight stocks or assets showing strong upward or downward momentum, narrowing down the list to only those with the highest potential. He doesn’t just jump into any trend; instead, he waits for clear entry points, ensuring that each trade has a defined edge. Simon’s trend-following approach isn’t about timing the exact bottom or top but about making calculated moves when the market is in clear motion. For him, the key to successful trend following is patience and discipline—waiting for the right setups and avoiding overtrading.
Trading with a Humble Mindset: Why Being Right Isn’t the Goal
For Simon Ree, having the right mindset is just as crucial as having the right strategy. He stresses that successful traders focus more on managing risk than being “right” on every trade. Simon explains that many traders fall into the trap of wanting to be correct with every market prediction, which often leads to denial and holding onto losing positions for too long. Instead, Simon advocates for adopting a mindset where the focus is on limiting losses and learning from the market, rather than chasing the illusion of always being right. He believes that when traders accept that they will be wrong sometimes, they are more likely to make rational, disciplined decisions.
Simon’s approach to mindset is about being realistic and humble. He even applies a rule he calls the “no high fives” rule—whenever he feels overly confident or proud of a successful trade, he knows it’s time to step back and reassess. This self-awareness helps prevent emotional overconfidence, which can lead to risky behavior. By embracing the idea that being wrong is part of the process, Simon maintains a calm, focused demeanor in the market, which is essential for long-term success. This mindset keeps him in a constant state of learning, allowing him to refine his trading methods and adapt to changing market conditions without getting emotionally attached to his positions.
Position Sizing for Every Market: Adjusting Risk Based on Market Clarity
Simon Ree places a strong emphasis on position sizing as a key element of his trading strategy. He understands that no matter how good the setup, managing the amount of risk per trade is vital for long-term survival and profitability. According to Simon, the market isn’t always predictable, so it’s essential to adjust the size of trades depending on the clarity of market conditions. When market conditions align with both technical and macroeconomic indicators, he is comfortable taking larger positions. However, when the market is uncertain or choppy, Simon reduces his position size to mitigate risk and avoid significant losses.
By adjusting his position size based on the market environment, Simon ensures that he is never overexposed, even in volatile conditions. He explains that there are times when everything aligns, and you can afford to take on more risk, but during uncertain phases, such as when macro and technical signals contradict each other, it’s better to trade more cautiously. This adaptive approach to position sizing helps Simon navigate the inevitable ups and downs of the market without jeopardizing his overall capital. By prioritizing risk management in this way, Simon keeps his strategy flexible, able to thrive in various market conditions while minimizing potential losses.
Efficiency Over Screen Time: How to Trade Smart, Not Hard
Simon Ree’s approach to trading is designed for maximum efficiency, allowing him to spend minimal time in front of the screen while still achieving consistent results. He focuses on finding high-probability setups and uses scans to identify the best opportunities, which means he doesn’t have to waste time analyzing hundreds of charts. Instead, Simon quickly filters through the market to find the most promising trades, giving him more time to focus on other important aspects of his life. His method allows him to avoid the common pitfall of overtrading and unnecessary screen time, which often leads to emotional decision-making.
Simon’s trading time is limited to only a few minutes per day, primarily focused on executing orders and managing existing positions. He runs his scans and checks the macroeconomic landscape early in the day, which enables him to make quick, informed decisions without being glued to the screen. This strategy not only reduces stress but also helps him stay disciplined and focused, avoiding the distractions that can come with constant market watching. Simon’s efficient approach shows that it’s not about how much time you spend trading, but about how effectively you use the time you do spend in the market.
Simon Ree’s trading strategy is a masterclass in efficiency, risk management, and discipline. One of the central tenets of his approach is the understanding that successful trading isn’t about always being right—it’s about managing risk and minimizing losses. He emphasizes the importance of having a mindset that prioritizes risk management over the desire to be correct, as well as the necessity of embracing losses as part of the process. By keeping losses small and consistently protecting capital, Simon ensures he remains in the game long enough to capitalize on his edge.
A key takeaway from Simon’s strategy is his focus on trend following, paired with a disciplined approach to position sizing. He adapts his trade sizes depending on market clarity, taking larger positions when the trend is clear and smaller ones when market conditions are uncertain. This flexibility helps him remain agile and avoid unnecessary exposure during choppy or unpredictable times. Additionally, Simon’s commitment to efficiency allows him to trade smart, not hard—spending just a few minutes a day executing well-thought-out trades rather than succumbing to the temptation of overtrading.
Overall, Simon Ree’s approach highlights the importance of having a well-defined process, sticking to it with discipline, and using a mindset focused on managing risk rather than chasing profits. His strategy offers traders actionable lessons on how to stay profitable and sustainable, even in the face of market unpredictability.
