Millionaire Tradersbuy and basically this is my averaging down. I figure that this trend
should now snap back, it should continue, the trend should go up
and at that stage, I do tighten up my stops. I will look to suffer
less standard deviation risk because, by my logic, this should be
over. We’ve just had a pretty good standard deviation correction
in prices—I think that the trend followers are out. If this is a real
trend, it should reexert itself. If it doesn’t now, I’m out because
I’ve doubled up and I am in a risky position. If it goes wrong, not
only do you have a move that is one standard deviation worse than
I thought, we’re now exploring standard deviation two, so I’m out.
Q: Do you find any drudgery about this business?
A: Well mainly the recordkeeping, the data you have to keep. You
have to keep your data in meticulous tick-by-tick format or daily
data points. You can’t miss a day. You’ve got to update all that stuff.
You have to keep your records correct. I’m trading many different
markets. I might have positions on in 10 different markets and
reasonable option positions against them in maybe five, So now
I’ve got to make sure that not only are my positions correct in the
accounting on the statement but in my computer, too, and that I’m
monitoring the risk correctly. That I find just tremendous drudgery
and the end of the year just getting all the files all together for tax
purposes is a mess. You know the shoe boxes and the reams of data
and going through it and seeing what I did and didn’t make on this
or that trade.
Q: Do you do your own taxes?
A: No. Too complicated.
Q: You trade a lot of foreign markets. Do you have tax accoun-
tants in every country, some are not specialist in all the markets,
so do you have a lot of people whom you seek advice from?