T2W Trading Community

Trading – The Tools (Broker & Systems)

Which brokers do you use and why?
Interactive Brokers. Low round trips. A good universal account.

What software do you use and why?
Sierra Charts. I need no more than what this package offers and it's VERY cost effective.

Do you have an opinion about trading systems sold to the public?
I don’t have much knowledge about what’s out there. I’ve spent my time trying to find a trading methodology of my own rather than spending money on someone’s system. I am a great believer in common sense and this trading business is no different to many more main stream businesses. The point is, that if someone had a great system, why sell it to others? Its more hassle than the trading!!

Do you feel a good system can compete with a good trader?
A good system will still fail in the hands of a poor trader. A good trader will always be better in the long run.

Trading Experiences

In your trading experience, is there one particular trade that stands out as the most dramatic?
Unfortunately it was Sept 11th 2001. I was Short the S&P the day before it happened!

What is the most prominent fallacy in the public’s perception about trading?
That you have to wear a striped shirt with red braces! Or with futures trading that you are no more than a gambler.

How much of a role does luck play in trading success?
In the long run, luck is only a very small part of the road to success.

How important is gut feel?
With quite a lot of experience behind me, I now pay a little more attention to my gut feel. But in the early days, my gut was always wrong! Also my gut has exponentially increased in size, along side my trading account! I wonder if this relationship could be traded? It certainly would put a slightly different angle on the term ‘Spread Trading’!!

Success & Failure

How do you judge success in your trades?
If I have entered the trade and exited the trade in the manner of which I planned it, then I call this successful. But like everyone, my monthly bottom line is how I judge my real success.

What are the most important elements to becoming a successful trader?
Self control, ability to rationalise under extreme mental pressure and good money management techniques. Also try to make sure you are in tune with the markets. Like a professional sportsman try to have an almost out of body view of the game you're playing. Become devoid of all emotion. Be in tune with the ebb & flow of the market you trade.

Can you describe one of your most successful trades?
Nothing really stands out in my mind. Each individual trade is quite boring really! I’ve had a number of trades where the price went to an extreme that was surprisingly high or low. So more profit was collected than expected. Big overnight gaps have usually been the cause!

Is the joy of winning as intense as the pain of losing?
Winning still feels great and is always exciting. Losing has no bearing on my emotions anymore, mainly due to the fact I strictly control my losses and always know up front what the approx. maximum is that I could lose, so when I do it's not a surprise. Unlike winning, which can sometimes produce an unexpected, large move.

Why do most traders lose?
Poor self control and bad money management.

When you do hit a losing streak, how do you handle it?
Plenty of Gin & Tonic and begin to look at why things are starting to go wrong. Has the market changed its character? Is there a fundamental reason I’m overlooking? Are my entry/exit and money management techniques losing me money? A whole host of components are looked at. A total re-evaluation would be done.

Is the ability to accept losses a characteristic of a winning trader?
Yes - we all have them - it’s a part of a traders life. Learn to handle them

What was your worst time trading? What went wrong?
Losing two thirds of my capital in 2 months and then taking 2 years to get it back. That was a long time ago now.