Millionaire TradersQ: We can imagine.
A: Some of these guys were good friends.
Q: That was the one thing that really kept you in the game—just
protecting your capital?
A: Yeah. I found a system that worked consistently. So, pretty
much day in and day out, I was making money.
Q: Is this the core of a system you still use today?
A: Exactly. And it’s changed a lot because of the markets. The
stocks and prices have changed. It’s been a game of adaptation
ever since, but the core remains the same.
Q: Without revealing the key algorithms behind your system,
what’s the cornerstone of it? Can you share some of the broader
philosophical principals behind it?
A: I would say it’s still momentum based. I still follow the market.
I don’t try and fight it.
There are great traders out there that fade stocks. The market
is screaming up. They’re getting short and waiting for that rollover
when it happens. They bank sometimes really well. But I tried
to fade stuff and [laughter] you can start fading way too early
and build up a sizeable loser. I’d rather wait for a reversal and
join.
Q: The other thing we want to ask you is just on a mechanical
basis. Are you a single-entry, single-exit type of a trader? Or do you
scale out?