When you start trading?
I opened my first account in the U.S. in early 1998. and sold U.S. equities. I tried every technique, from skalpirovaniya pulse (more than 40 transactions a day) to the cutting of spread (very quiet trade) and trade on the movement. All, however, especially without much success, because it was one thing that I did not understand. Trade - this is business, not the game! I see it exactly the same as racing. Shares do not involve me more and I switched to trade in futures. For the first time I faced the risks of futures markets. I have followed completely the wrong strategy for the management positions, and therefore lost a lot of money. I decided that something must change and become read some books. After some time I began to understand that the philosophers' stone in the trade and is found in me the most. I was the one responsible for everything. I finally understood that trade - a business and it starts with a small but steady profits. Just at that time I met with the two dealers, which allowed me to work with them. This led to my breakthrough in 1999. Since I work full time as a freelance trader with various brokerage houses.
When the trade has become your main work?
In its twenty-I was still relatively young, and my routine after coming out of school include the immediate tracking American markets. It was not time for the German market. This, coupled with the lack of professional platform for the German market was the reason why I switched to the U.S. market. With the great success that I enjoyed in previous years, I left school in October 2001., Rather than the economic degree to concentrate on trade.
How much time per day do you spend per trade?
At present, not so much because I have committed positional deal (6 hours). Much of their time I spend on research and management of trade.
How much time is necessary to develop a trading system, and psychological aspects of a business plan for the trade?
It is - daily work, and I have constantly thought of new strategies and management practices.
How would you rate your knowledge of the markets? I refer to your knowledge of mechanics of trading as the market moves as effective to place transactions, and what trading tools are needed?
I think that I have extensive knowledge of markets. However, from time to time that happens, something new, slightly alter my attitude to trade. It does not happen suddenly, but rather is a gradual increase in the understanding of (evolutionary steps Trader).
What are your psychological strengths and weaknesses, particularly in the development of trading systems?
My weakness, almost certainly, is my tendency to chaos. Different ways, I must strive for higher order. Fortunately, this applies to my time away from trading. My strengths lie in my patience and the necessary discipline. There are so many things that are frustrating me. This is especially important during difficult periods or unwanted developments. I rarely get out of yourself and try to keep everything under control. But I was not always so disciplined. Especially in the beginning I felt a lot of unnecessary losses and saw trade as a sort of game - an error that costs me a lot of money. Only after I began to treat the trade as a business, my trading has become more efficient and structured.
What are your advantages in trade and the special trade of creating these benefits?
The advantage of my trade is in a consistent risk management. Not only that I know of the existence of risk, I also fully explored them from before. I keep risks to a minimum possible level. In trade, I never risk more than 2% of capital (with positional trade), and this is the highest level. The average risk for me - generally less than 1%. Open positions increased only when they are in profit. This method allows to achieve a better return to risk ratio. Since the trade position is to speculate on the trend spread, the ratio of return to risk is more effective because you can immediately recognize whether a change of trend.
Suppose you have a very effective trading system, with 50% th level gains, which allows twice the loss of profit, and you, however, suffered 10 failures in succession, you could survive with this?
I have had 17 consecutive loss-making transactions. This is not vybilo my gauge.
What is the expected profit from your trading capital in the year?
My expected return of about 20-40%. If I reach 20%, ie some decline in certain boundaries, I will increase the level of risk. On the other hand, if my income is too high, then I know what I am, almost certainly took too much risk.
With what potential risks you face in order to reach your level of profit?
Half of the winnings, approximately 20% per year.
What is the maximum loss that you are willing to take?
Approximately 25%.
How do you recognize whether your successful trading plan or not? What are your expectations of your systems in different markets? Trends? Consolidation? The high variability?
Each transaction is scheduled precisely. I always know what I should do, and therefore should not consider the options in the trade. All the scenarios are played before the open position and if a situation arises in which I was not ready, then I know that something was wrong with my plan and I am therefore looking for their mistakes. Since I am not tied to just one market, rather I have a range of different and unrelated markets, I always find a bargain, which I am interested.
What clients do you prefer?
I prefer clients who have some knowledge of markets, who knows that the decline in trade is inevitable, and who will not suddenly panic. The client must be patient and able to assess market risks.
Who are your customers? What are your goals? What services do you offer your customers? Your customers, for example, tend to diversify when you entrust your money?
Currently, I am wealthy private investors, however, my trading history is connected with institutional investors and when there is a good opportunity, they transfer me to new investors. The client requires some diversification, which seemed to them a variety of markets and trading strategies.
You are trading money for its customers: what risks they take? When they take their money?
My clients are ready to take the risk of 12-15%, however, with losses of 20%, they collect their money.
What should you make a profit for its customers to earn their admiration?
Customer covers euphoria with profits of more than 35%, and always difficult to achieve such results in the following year with the same risk parameters.
What is your fee? How much is deducted in a month or a year from the customer's account? And how high must be a profit to the client still remains happy despite these payments?
There are currently paid for the work of 25%, but there is no fee for the administration. Since there is only paid for the work, the money paid only from profits. This is effective on a monthly basis. Profit should be in the region of 27-30%, so that the client had income 20%. As long as these profits are achieved, the client is willing to pay a fee.
How high your trading opportunities? How do you achieve this? What do you do once it is achieved? Whether it is your trade?
Trading opportunities are approximately 100 million Euro. In the event of further increases in capital, the existing fund will be closed and will open a new fund. What's the worst that can happen in your relationships with customers, and what you do to avoid this?
The worst - it damages more than 20% of which were fatal, and to avoid this, I keep risks at a very low level.
What do you do in the event of a large income or capital, on the contrary, his retirement?
Deposits of up to 100 million dollars does not represent any problem. Large seizures do not pose a threat to the trading system, simply reduced trading volume.
Which markets do you sell? They are susceptible to specialization? Sell only on the liquidity, or also to the low liquidity of markets?
The portfolio consists of currency and stocks, which are regularly traded. There is no specialization in one market. Each of these markets are very liquid, the requirement for risk management is carried out, because you can work with very close stop-orders. At low liquid markets may be problems with the precise execution of orders.
As regarding the entrance into the market and how is it important?
Entrance to the market is only a small part of overall strategy. If I concentrate all their energies only on the point of entry, I have already lost. Much more important - this is a professional money management and risk, as well as overall management of commercial business. Entry point is almost insignificant.
What are the initial levels of stop-orders are you using? If they work, you quickly re-enter the market in order to use the slightest market movement?
Typically, no more than 1% of capital at the level of risk for foreign exchange transactions. Since the shares are slightly higher - 1.5%. If my stop-order and worked, this means that a change in trend has not yet happened and so I look forward to a new signal input. I re-enter the market, only if you receive a different signal, which indicated a change of trend.
How do you plan to profit zone - different levels for the stop orders, and its goal of profit? Contrary to the normal view, to whether you need to put more emphasis on the method of entry and stop orders?
I do not limit their profits if the market moves in my direction, I quickly increase its position to profit from such traffic. Naturally, there are always concerns about how far the market will move. Despite this, I do not limit their profits. My stop-order and placed in line with the graphic techniques and, depending on market volatility. When my stop-order and worked, trade is completed.
What are you doing for the management of money?
As I said, in the currency markets, I risk a maximum of 1% of the commercial capital, and with the shares - 1.5%. Stop orders are not permanently mounted on 1% of the commercial capital. It is very important. Stop orders are calculated according to the graphical techniques used in combination with the volatility of the market. When I know the value, I calculate the amount of the position according to the maximum risk.
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