When you speak with Michael Berman, you quickly realize that his journey is not just about trading—it’s about adaptability and an unrelenting drive to understand markets at their core.
From trading with his bar mitzvah money at age 13 to launching hedge funds and working with industry legends, Michael’s career is a masterclass in evolution. Now, as a faculty member at the International Trading Institute (ITI), he brings a wealth of experience that bridges the gap between discretionary trading and institutional strategy.
From Early Fascination to Institutional Trading
Michael’s first trade was in a manganese mine—a move that sparked a lifelong passion. He built his expertise managing property portfolios before transitioning to a full-time trading role in 2001, where he spearheaded a real estate hedge fund within an investment bank. From there, he navigated the worlds of REITs, bonds, and equities, eventually co-founding a trading firm that seeded new talent.
One of his key partnerships was with a high-stakes financier who had lost $300 million in the 2008 financial crisis and was mounting a comeback. Together, they built a firm that funded emerging traders, with many going on to enjoy great success to this date. Throughout, Michael was the steady hand, pushing for structured systems while embracing the nuances of discretionary trading.
The Hardest Game in Trading
Despite his success, Michael is brutally honest about the realities of trading. “Discretionary trading is probably the hardest to succeed in because your rules keep changing,” he explains. The biggest challenge? Overconfidence. “I used to think I was one of the best traders in the world. Now, after 20 years, I know I’m above average—but not nearly as good as I once thought.”
“Discretionary trading is probably the hardest to succeed in because your rules keep changing,”
He highlights the mistakes retail traders make, particularly regarding account size and cost structures. “Institutions trade at a fraction of the costs that retail traders do. Many retail traders don’t realize how much of a difference commissions and order flow visibility make. And then there’s leverage—small accounts force traders into positions that are too large, leading to quick losses.” Understanding these hidden costs is crucial, as factors like slippage and spread differentials can quietly erode profitability over time.
The Future: A Hybrid Approach to Trading
As AI and automation continue to reshape finance, Michael remains skeptical of the notion that one can simply hand over the reins to an AI and expect it to build and trade a profitable model on its own. He points to the growing number of questionable operators who promote AI-driven strategies as fully autonomous, claiming they’ve “left it all to the machine.” In contrast, Michael envisions a more credible and effective future rooted in hybrid models—where AI either supports discretionary decision-making or augments systematic strategies, but never replaces human judgment entirely.
“AI can filter out noise, run probability models, and suggest optimizations, but humans still need to apply intuition and experience,” he says. AI excels at uncovering patterns and detecting relationships hidden within vast datasets. But markets are often irrational, driven by sentiment, geopolitical events, and other context-specific factors that defy purely logical models. That’s why Michael emphasizes a partnership approach: using AI to surface data-driven insights while relying on human expertise to interpret them and act accordingly.
“Anyone who has worked with large language models knows that the more context and clarity you provide, the smarter the system becomes. It’s the same in trading—those who understand how to guide AI with proper framing and domain knowledge will outperform those who rely on a black-box approach.”
He likens the future of trading to chess, where the most powerful players aren’t just computers but human-AI collaborations.
“Discretion doesn’t disappear; it evolves. The best traders will be those who know how to leverage AI while maintaining a trader’s instinct.”
What ITI Students Will Learn from Michael Berman
At ITI, Michael aims to bring a blend of discretionary, systematic, and quantitative trading to the curriculum. His experience running a global macro newsletter and working with over 200 traders gives him a unique vantage point on what separates professionals from amateurs.
He’s particularly interested in mentoring those looking to “go pro,” guiding them through the transition from skilled retail traders to full-time professionals. “Knowing how to trade is one thing. Making a career out of it is another.” A crucial step in this journey, he notes, is maintaining a detailed trading journal—not just to track outcomes, but also to analyze execution errors, emotional responses, and risk-adjusted performance over time.
As ITI prepares for its new program launch, Michael is set to play a key role in shaping the next generation of traders. His philosophy is clear: Trading is tough, but with the right approach—one that blends structure, adaptability, and humility—it’s possible to carve out an edge in an increasingly competitive market.
For those looking to learn from someone who has lived through market cycles, hedge fund launches, and the ever-evolving landscape of institutional trading, Michael Berman is a name to watch.
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Disclaimer
This article is for educational purposes only and does not constitute financial, investment, or trading advice. All trading involves significant risk, including the potential loss of your entire investment. Past performance is not indicative of future results. You alone are responsible for evaluating all risks associated with the use of any information provided here and for your own trading decisions. Neither the author nor the International Trading Institute is liable for any losses or damages arising from the application of this material.
