Millionaire TradersQ: Was there a lesson there?
A: Yes. I told myself that I wouldn’t let the emotions get the best
of me, I wouldn’t just sit there idly, and I will never turn off my
computer again and hope that the trade will turn back my way. The
problem was I didn’t have a plan. At the time, I bought in before
the news and that’s one of the things I don’t do now. But it was
kind of like a guessing game back then because I felt I was so lucky
but now I don’t do that, I don’t need that little part of the move.
Q: Do you always have a plan before going into a number?
A: I have a plan. Obviously I don’t know what the number will be.
But I’ll say okay if the number is this amount, then I’ll go short—if
it’s this amount, I’ll go long. I will also keep in mind the price
action and how the market responds to it and what is the market
doing prior to the number coming out because, if there’s dollar
weakness, it doesn’t matter what that number is. Sometimes it can
be fantastic for the dollar. It will continue to sell off even after
great news. So I’m always watching the price action.
Q: So when you are trading what is the most you’ve lost pipwise?
A: I’ve been down more than 100. But I don’t like being down
more than 100 pips at any point. I would say normally 75 to 80 is
about where I call it quits.
Q: In terms of your trading style, do you feel like it’s changed at
all?
A: Definitely less aggressive because I can trade a larger number
of lots. In the beginning, I would trade two or three. Maybe now
I’ll do 20 or 30. It just depends, so I need a smaller amount of
move to actually pull that profit in. I try to only take the trades that
I think are going to be successful.