Millionaire Tradersthat are linked, and I will try to get caught up with what happened
in the market from the day before. From there I apply all my
knowledge. I start to make decisions based on my model on my
plans. So that’s really my setup.
Q: What particular research do you like to read?
A: I have a list of different banks and one of them is UBS. I like
to see what they’re looking at. I just look at what everyone’s doing.
Honestly I don’t like to base my decision on what they are doing
because I like to have my own perspective. Even if I’m wrong with
my perspective, that’s fine with me. I have a game plan for how
to deal with my mistake: Always have a plan on each side of your
trade. You always have to know what’s going on and reading what
other people are up to and what people are thinking helps you to
be on the leading edge of what’s happening out there. You need to
know what changes are going to be made in the FX market so that
you are always up to date with the market.
Q: Back to risk control. When you said there’s a certain amount
of money that you are willing to risk per day, is that a percent of
equity? Is it a hard money stop? What kind of a risk limit do you
put on yourself per day?
A: It’s one of each of those. I’ll have a hard stop. But when I
get into the market, I’ll have that hard stop and like I said it’s
basically 25 pips at the most. Usually if it gets around 15, I’ll make
a decision—okay, do I start getting out? But then if you are asking
if I’m down anxamount during the day, will I stop? Yeah, if I’m
down a certain dollar amount. There’s a hard stop for that also. I
feel if I made two trades in a row in the wrong direction, then I’m
missing something and there’s just no point to trade again. I have
faith in myself that I’ll make money many more times than I’ll lose
it, so I’ll step away from the market.