The Wisdom of ExperienceQ: What about fear of losing?
A: I think that the more you are afraid to lose, the more unsuc-
cessful you will be. You will be overselective and find that you have
missed opportunities. You need to analyze and do your homework.
But you also need to be willing to take the chance, to take the risk.
If you are wrong, that is okay as long as you have a stop in, your
stop will be taken out, and your loss is limited. Maintaining limited
risk is better than missing out on what otherwise could be great
opportunities. Making sure what your worst-case scenario is at any
time will help you manage your trades better, which will ultimately
lead to more success.
Q: What was your most memorable trade?
A: It happened two years ago. I took a trade and was able to make
40 percent in one week and a bit more. This was in August 2005.
At the time, I was long 5 million U.S. dollars/Swiss francs. I added
2 million later, totaling 7 million. Then I held them both at the
same time for eight days before getting out at a 40 percent profit.
At the time, U.S. dollars/Swiss francs was range trading and it was
nearing a key support zone, I checked my charts and saw a minor
breakout and felt that it was a good point to enter into the trade. I
initially bought at 1.2487, then I went long again at 1.2485. I exited
the whole position at 1.2737, which was the fastest time I exited
out of the trade with such large profits.
Q: What was your worst trade?
A: It was in June 2005. I lost close to half of my investment. I was
long 5 million British pounds/U.S. dollars and then added another
4 million. I had small profits at the time, but then got greedy and
added another 5 million. Then the market reversed and collapsed
and because I was long so many lots, I incurred huge losses. The
problem here was really my greed. It caused me to let a winner
turn into a loser.