Surfing for ProfitsQ: What kind of leverage do you think is prudent and what kind
of leverage do you yourself use?
A: I don’t think there’s any point to using anything more than
maybe 5 to 10 times, something like that. But I would keep it low.
If you’re trading, try it to keep it five times.
Q: Is that the general level you’re comfortable with, do you
usually use between 5 or 10 times leverage for your positions?
A: Yes. The key is you should use the lowest amount of leverage
you can. That’s what I always tell people because you want to
spend time in this market. That’s how you’re going to get better
and that’s how you’re going to be a better trader if you can stay
around. I remember I think I had a mini-account that was maybe
$1,000 way back when. I loaded up on something at 100 or 200
times leverage and so my thousand bucks ended up making$4,000.
Then I loaded up again. But this time I was wrong and my account
went back to a thousand. I could have lost it all, But if you keep your
leverage low, if you lose, your$1,000 will turn into$900 instead
of nothing. I think leverage is a good and a bad thing. It’s a good
thing if you’re a good trader and that’s about it [laughter].
Q: Can you talk about your desk setup? What do you look at?
What tools do you use?
A: I have several different packages that I use. I have a couple
of algorithms I’ve developed myself and have written with several
guys. So those programs are on a [three screen]three-by-three
screen computer that runs charts. Then I have another computer
that has three screens attached to it also. That is my order entry
and news feeds. That is what I have as a setup. Then I have TVs in
my trading room, and basically that’s it. I will come in the morning
and turn everything on. I have a bunch of different news sources