|
|
|
|
|
|
|
to the Internet, the other to historical testing and daily updates on my system. |
|
|
|
|
|
|
|
|
Neal: What seminars do you attend? |
|
|
|
|
|
|
|
|
C.V.: I have not attended any seminars, although I have read a number of books on trading. Early on, I decided I would develop my own systems. I started with simple analysis in my Quattro Pro spreadsheet, which I still use. |
|
|
|
|
|
|
|
|
Neal: In your estimate, why do so many traders end up being net losers for the year? |
|
|
|
|
|
|
|
|
C.V.: I saw a detailed study of approximately 100 traders. The information was supplied by their brokers. Only 5 percent of the traders were profitable. The principal reason for losses was that traders closed out their winning trades early and let their losses run. This is, of course, the reverse of the old maxim: cut your losses and let your profits run. Apart from this, most traders have very little knowledge of money management. |
|
|
|
|
|
|
|
|
Neal: So you don't believe in day-trading? |
|
|
|
|
|
|
|
|
C.V.: I think it's very hard to day-trade. There is a lot of random movement within the day time frame. There is a premium on speed, and it's very hard to compete with the floor traders while sitting at a quote monitor. |
|
|
|
|
|
|
|
|
Neal: Would you comment on the Phantom's interview (Chapter 8) on money management and system trading? |
|
|
|
|
|
|
|
|
C.V.: It's a very sophisticated approach to money management. I think that many traders would find it difficult to sort out their trades to that extent. I use one basic breakout system with three |
|
|
|
|
|