Millionaire TradersQ: So how do you enter into trade? Do you open the entire
position at once or do you enter in increments?
A: I enter little by little.
Q: Do you go in the direction of profits or do you average down?
A: I’ll buy below because I’ll have a goal where, let’s say, in the
next four years I want to buy with an average of a 110.
Q: Your strategy sounds very much like the Martingale strategy.
How long do you end up holding these positions for?
A: Just the timeframe in which I’m able to make my 20 percent
goal. That can be six months or it can be one year. I don’t care.
Q: Let’s say that you want to buy the U.S. dollar/Japanese yen at
110, and you initiate your first position at that price level. Instead
of moving lower, the currency goes to 111 and it just keeps on
going up, and you’re in a small position that is making money. Do
you then add to it or just stay with the small position?
A: Yes. If they continue to make money, I will also add to a
winning trade. Even if it moves to 115, I will continue to average
up because remember, with the interest rate differential, my true
entry one or two years later will be lower.
Q: Do you ever go into positions where you have to pay interest?
A: I always look for favorable interest rate differentials, such
that I’m not looking for short U.S. dollar/Japanese yen positions,
instead I’m looking to long U.S. dollar/Japanese yen and I’m not