Interview with trader: Rick Ackerman

Question: Tell us briefly about your shopping experiences

Rick: I was a market-meykerom on the market options, and a member of the Pacific Stock Exchange for about twelve years, and traded in shares, options and commodities outside the stock room for about seven years as a retail client.

Question: Describe your typical trading day.

Rick: My shopping day starts at night, when I analyze stocks and futures markets in order to write a daily newsletter. What kaetsya commodity markets, I traded in the past, mainly contracts S & P, but is now increasingly focused on the futures. Usually I try to perform only one or two transactions during the day, based on the strategies that I refer to their subscribers. I am not glued to the screen and prefer the types of transactions that you can use relaxed approach to trade. Although I found that it is possible to make more money following schedules ticks and one minute bars, is too nervous for me.

Question: What hardware and what software do you use?

Rick: I have 2 PC, Mac and laptop Dell. My set of technical tools and analytical skills, increased opportunities around software Ensign, which I used for about six years.

Question: In what markets do you like to trade?

Rick: My options are the most common area. They are also the most efficient I can use their strategies.

Question: How often do you sell?

Rick: When tracking the S & P, two or three times a day, with options, perhaps an average of once a day. I will soon be trading in partnership with hedge fund and it will be possible to maintain the same relaxed pace of trade. This is not so important, how often to conduct transactions, and how important you are able to consistently make a profit. The main reason to trade more frequently connected with the fact that you have the opportunity to trade on the smaller movements of the lower level of risk.

Q: What is your most favorite technical tools and the types of analysis?

Rick: I am trying to follow so simple types of analysis, to the extent possible: Stochastics, Fibonacci levels and, sometimes, the Japanese candle. If they do not give good signals, I sometimes use the "Profile of the market."

Question: What are the timing charts you prefer and why?

Rick: While my techniques can be applied to any market-based instruments at any time scale, I feel most comfortable with a 15-minute schedule. These graphics served signals that are suitable for a strategy based on momentum, which I prefer, and to my conservative approach to risk management.

Question: Are you a trader or mechanically using, mainly, the personal perception of the market when trading?

Rick: I have approximately 75% of a mechanical trader, and by 25% - intuitive. Intuitive is capable of answering the question, "as traders in the exchange hall will try to cheat me this time?"

Question: Do you use technology-limit orders, or sliding stop orders?

Rick: A lot of entry-contract or login multiple lots are significant, as it allows to take profit first as well as to eliminate the probability of loss. Once you take the profit from the position, you enter into psychological comfort zone, which allows you to make the right decisions more easily and consistently.

Regarding the stop order, then I apply it very strictly. "Reduced rolling stop-order" is a tool, a good inherent in risk management. If you buy a share of 60 while awaiting movement to a 70, how far should your stop-order, where the action is, say 67? Answer: not more than 1? point, implying that the ratio of risk to your income is not less than 1:2 of the whole movement upwards. Practically, the market reach my goals in about 85% of the time, but I rarely advise their subscribers to use the strategy of "buy and hold." This is impossible if you try to manage risk throughout the period of the transaction, as it should be.

Question: What system do you use to manage the losses?

Rick: I try to enter in the position against the trend. If you sell it, you'll be in bad company, traveling with the herd. It is axiomatic that the more obvious trend, the stronger the market takes a turn to reduce the output of most who are looking for (and acting), the obvious. I prefer to sell to or buy shipah up at the base of setbacks - especially when my point is not about the obvious trend lines or support and resistance zones. When I give advice on the S & P in its newsletter, the zone of stop-order is rarely more than half of the item (ie, the risk is $ 125). If I'm right on point, I can move the stop-order immediately for the even, take the profit from the share position, and then keep the rest, without the risk and fear in order to obtain greater profits.

Question: What is your best deal or experience?

Rick: I guess the profit motives of a fraudulent trader in possession of inside information when I traded options "SmithKline", and eventually received $ 200,000 in revenue. Later, I had a rally of 35 points in the "Microsoft", as described in the newsletter. Contracts purchased in December for $ 6, and then were sold for $ 1,400 apiece.

Q: What advice would you give to beginners?

Rick: First, be patient, as there is no quick road to wealth. As long as you learn, the trading opportunities are not being depleted. Secondly, before you start selling, then the technical system, any system, and osvoyte it. Start using it to evaluate its minute observation of certain markets within 6-12 months. The system itself - whether it is, the angles Ganny, Elliott waves, or any other - more important than your ability to understand how market-based instruments to move that the system can predict.

Q: What advice would you give regarding choosing a broker?

Rick: Ask other traders feedback on their brokers, and then use the method of trial and error. "Low fees and a small spread" should be number two on your list, followed by the "good performance". Work with only those brokers who can accept and fulfill orders in the case of "unforeseen circumstances". They are not so much.

Question: What do you think it differs very successful traders from the rest of the crowd?

Rick: The ability to learn from the mistakes (and successes) and do not let emotions prevail. If you succeed the first time, you get confidence, which will make it to the next.

Forex Magazine
based on www.ensignsoftware.com