Millionaire TradersQ: So you don’t go and do other things?
A:No.
Q: Do you find that commodity-driven stories are much more
news affected than pure stock stories, pure equity stories? In other
words, if there’s a big piece of news on that day that is commodity
related, it’s going to have a continuous impact on the commodity
markets versus the stock market where we can’t tell if the stock
will have a significant reaction to an economic release?
A: Yeah, I have seen that. What I’ve seen with the news-driven
events in shares and what I’ve seen with the commodity is when
you get a news-driven event like a crop report, it usually has a
sustained impact that could mean you’re in an interesting period
for three months, six months or so. With stocks, and I’ve seen it
mainly with earning-related news so there’s a slight difference here
but the earnings-related event to a commodity stock is usually a
one move and that’s it. It moves 20 percent and that’s it. It’s
readjusted.
Q: So you are focused, you’re sitting in front your screen. At
what point do you start looking?
A: I trade very intensely through the first three hours. Then it’s
usually about six in the morning or so. Then I’ll stop.
Q: Let’s go through the first three hours. Very intensely means
how many round turns a day?
A: Sometimes it could be small like a 10, 20, 30 contracts, but
usually a few hundred. There are some days when I’ll trade a
thousand contracts.