Surfing for Profitsbeen longer. It sounds like it was more position type of trading,
right?
A: Yes, it definitely was. You had to trade the daily charts and
you’d come in maybe towards the top of a daily bar. You were not
trading the one minute bars for example. So we would just trade
on the longer-term timeframes. It was a lot more difficult. I think
right now my trading activity is a hundred times greater. Back then
I would place maybe two to three trades a week and now I do that
intraday.
Q: Back in those days you probably tried to shoot for 50 to maybe
75 points per trade. Now you’re able to trade for 15 to 20 points?
A: Exactly. Basically you know you could scalp the market more.
If the market back then was moving in a 20-point range, back and
forth, back then you wouldn’t be able to get out of the position,
but now that the spreads are tighter in that 20-point range you can
get 10 pips out of that trade.
There is money to be taken off the table every day in foreign
exchange just because of the volatility in the markets. I think the
foreign exchange markets really lends itself to that. It’s a great
place to be for volatility, for liquidity. So I think it’s a good market.
Q: Do you have several strategies? Let’s sayxamount of your
capital—how much percentage-wise do you allocate to intraday
trading and how much of your positions are longer-term daily,
perhaps, even sometimes weekly type of trades?
A: Yeah, I would say usually I’ll take a position every day based
on a certain standard amount of money that I’m willing to risk.
So that’s 20 times a month basically, Monday through Friday, and
then through that month if I see a trend, if I’ve identified what
looks to be a several-day trade, then I am willing to ride that. I’ll
take one position of that same amount and then, if it’s going in
my direction. I’ll add to that position. So, basically, I like to keep
things standard in that manner.