Millionaire TradersQ: You mean selling a little bit at the beginning just to bank
some profit?
A: Right. Lowering my stop and letting the profits run a little bit.
The mentality I learned back in my stock days.
Q: Is your methodology that if the first target is hit, you go to
breakeven on the stop?
A: No, not necessarily. Again I use candlesticks, and I put the
stop right above that. I basically trade off the five minute. I mean
I’ve got 15-minute and 60-minute charts that I blink on and off,
but the five-minute is what I use.
Q: In other words if it takes out the five-minute high or low,
you are out. It’s interesting that you were obviously a pure long
trader in 1998 and forward and now you say you’re always thinking
on the short side. Can you explain a little about that? Why do you
primarily trade from short side now?
A: I hear from other traders that they go down a lot faster than
they go up. So I’ve done all my statistical analysis looking back on
my stats. I make way more money at picking tops than bottoms
for some reason, and it’s hard to get that thing out of my head.
But that’s just the way it is. I’m a better short trader than long
trader.
Q : You say you’re better at picking tops yet you are using
moving averages and candlesticks, which are primarily long only
type of tools. What do you do to figure out when momentum is
waning?
A: I use moving averages, MACD, and candlestick.