Millionaire Traders

JWBK169-Lien July 3, 2007 13:56

Man Versus Machine

Q : You day trade, meaning that you don’t hold anything

overnight. Were you always this way? Did that just develop over

time? And if it did, can you tell us why you adopted that style?

A: I like to micromanage everything. So I don’t have control after

the market closes. I don’t want to think about it. I like to go home

every day and think about other things, forget about the market for

a little bit. I like to be flat every day because anything can happen

overnight.

Q: How much of a risk do you typically allow yourself on a trade?

10 cents? 15 cents?

A: It depends, but usually not much at all. I am typically getting

long on the bid with someone and if the guy leaves, I am out. Now

there are times when the guy bails and there is nothing I can do.

But usually my risk is 5 cents or less.

Q: Pretty much always?

A: Usually. The only time when I deviate from that rule is when

there is no one there and I can’t get out.

Q: So what happens in that case?

A: Well, it’s a percentage game. Most of the time you can get

out—9 times out of 10 you can get out.

Q: When you get trapped, how badly have you been stung? Has

it been as much as a dollar?

A: No, never. Maybe in the old days when stocks were$300. But

now I would say 20 cents is the worst that I get hit. I am always

watching my stock.