We offer you an interview with one of the traders, practice, the system following the trend, Thomas Arnold of "Plimsoll Capital". He offers his opinion to beginners and experienced traders who study system following the trend.
Question: How did you come to the market?
Arnold: I am interested in trade as long as I remember myself. My first job was a very successful trader in shares in Los Angeles, who was a friend of my father. Every Saturday, I received a copy of daytime schedules. I then viewed each graph, ie each share as the U.S., and at the New York Stock Exchange. I was looking for a graphic model, followed by a larger than usual volume. By noon Saturday, I brought my analysis of my father's friend, and for their efforts, I received a check for $ 100. I am not sure whether that affected hundreds of dollars or market analysis. But anyhow, I was irrevocably involved in the market.
Q: Before you began to study system following the trend, why you felt that this would help you?
Arnold: I knew enough about the system are following the trend, to understand that this was not some other indicator or analytical approach. I knew that there was included a few real mathematicians, and so I had the opportunity to objectively prove or disprove anything. This is not a bowl of "Holy Grail", but simply an effective system. And for this reason that I became interested in it. Also, I could not ignore the fact that Richard Dennis has been impressively successful.
Question: When you say that you were involved some real math, do you mean that they were ready to be more specific, impartial style of trading?
Arnold: Absolutely. I am not interested in the method, which is simply to reconfigure what I have done. At that time, I was a foreign exchange trader international bank. I opened the position up to the size where I feel comfortable, based on technical analysis and the volume of transactions. There was very little objectivity in this combination. I am interested in building an investment business, one that would have been forecast and was not based on subjective analysis. If the size of my position based on my comfort level would be a very limited amount of business that I could build. Secondly, I wanted as far as possible to exclude emotions from my trade. The size of the position should be calculated based on market movement and established the position of risk.
Question: Tell us about money management in your trading.
Arnold: Managing capital - this is 90% of what we do. In this risk management, I think that the results of my work would not severely damaged, if I toss a coin to determine the trend. Although to be fair to say that we have done a great job in selecting our transactions and the development of a profile of risk management of our portfolio. But the main key to our success is how we set the size of our positions in early trade, as we add to our positions where we are right, and as we place a stop-order if we are wrong. Our goal is that our profit has been exponential, and linear losses.
Question: Why do you think that the accuracy in determining the trend, it seems, stirs up a lot of beginners and pros? Is this a false sense of comfort that they are at high accuracy?
Arnold: I think most newcomers feel that the accuracy in determining the trend is the key to successful trading. It really does not bother me if they continue to think so. As a trader on a few major currency areas, I have heard endless calculations traders, trying to analyze the market. It seems that traders want to be right than be profitable. If it were not so, they would spend much more time focusing on the aspect of money management in their trade. Of course this is a private matter of each - I focused on that to be right more than ten years.
Question: How do you explain the phrase "To gain is exponential, and linear losses?
Arnold: We do not add to the loss-making positions. We mechanically add to a winning position. And we add to winning positions only when we can do it, does not significantly increase the risk in relation to the initial capital. Therefore, we can be wrong a few times and right once, and still be in the black. An alternative would be to keep the size of your winning position in the same way, but it would mean that you should be right more often, and you should allow your position to grow much more. We want our winning positions were much more dynamic than losing.
Question: You have raised an interesting question - traders want to be right than be profitable. You understand that regardless of the level of sophistication, most traders do not even sosredatachivayutsya for ultimate profit?
Arnold: I think that is an exact statement. Most traders are not in a position to consider the trade as a business. To be successful in the long run, you must build on its strategy to trade the same way as you would build your business. Trade - this is not a question of intellectual triumph. This is a question of creating a reasonable, objective expectation of success over time.
www.turtletrader.com
No comments:
Post a Comment