Millionaire TradersQ: How do you gauge psychology? Do you look at the COT
[Commitment of Traders] reports or just watch price action?
A: I do look at the COT report. But I really like to watch the price
action. Particularly around the figures or anywhere that I know I
would have placed my stop if I was on the other side of the trade,
those areas tend to make you the most money.
Q: You said you tend to go in the direction of a trend and you
like to be in the meat of the move and not the beginning or the
end, but do you buy ahead of the number? Let’s say we’re going
from 1.27 to 1.26 euro/dollar and it breaks down, do you tend to
just go ahead and buy at 1.26, assuming that it will reverse? Or do
you wait for some sort of signal of a reversal first before getting in?
A: Normally I like to watch the level break and I’ll get in right
about when it’s breaking through that figure. This can be very
dangerous; it tends to move back up against you. But like I said,
I think 7 out of 10 times, once that level is breached, you may
get a minor pullback, I’ll add more to the trade and it generally
continues in my direction.
Q: So basically you pick key levels, right?
A: Right, the key levels are imperative.
Q: Do you have any alarm alerts in case something happens, or
your levels are breached, when you are asleep?
A: Yes, I certainly do. I normally sleep very close by my PC. Some
people think it’s strange. But I have my laptop open right beside
me. I also have a plasma TV that I can glance up at just to see the
numbers real quickly and fall back to sleep.