Millionaire TradersQ: Yes.
A: The biggest loss I’ve ever taken in the ER was two points.
Q: What is your typical day is like? How early do you get to the
screen before the market starts to trade?
A: About 8 o’clock. I’ve got three kids, a two-and-a-half-year-old
and two twins, so they get up about 7:30. Then I come on down
here to trade, setting up shop at about eight o’clock.
Q: What do you look at? What is your routine in the morning?
A: Well, pretty much I’ve done my homework from the night
before. I like to have a plan. For the next day, I write down my
bias, where the market went at the end of day to give me some
flavor. I try to think like the guys on the floor, meaning, if I were a
rookie, where would I put my stop? I try to figure out where they
are going to run their stops. I really try to get into their melons
because they usually run these things just above their resistance or
just below support.
Q: Right. Is that your bread and butter routine—try to figure
out where they are going run the stops that day?
A: Yes, that’s kind of one of them.
Q: Let’s say you have a general game plan of where the points of
vulnerability are, where the stop runs are going to happen. Once
that happens, what do you do? Do you wait to see if it bounces
back or clears those stops and starts to have more momentum? Is
that when you start to develop your directional bias?
A: Yes. Exactly.