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Neal: What seminars do you attend? What publications do you read? |
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Phantom: I don't attend seminars, subscribe to publications, or have any favorite speakers. I figure if anyone possessed anything worthwhile, she or he wouldn't be selling it. My favorite book on trading is also everyone else's favorite, Jesse Livermore's biography, Reminiscence of a Stock Market Operator, by Lefevre. It's a fascinating look into the psychological aspects of speculation. My favorite nontrading author is Hemingway, probably for his straightforward, precise style of writing, which is the same way I try to analyze a market. I also like Kerouac and Thomas Merton. |
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Neal: There are plenty of seminar promoters and software vendors who are glad you do not get too much publicity. In recent years a lot of money has been made by selling trading systems. Maybe the cause is that we are too lazy and want the computer to do all the work. |
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Phantom: Anyone can design a trading system which will be profitable if back-tested over 5 or 10 years. Unfortunately, there is no guarantee it will continue to be as profitable in the future. There are countless stories of trading systems "not working" as soon as they are traded in real time. I would guess this is the reason most trading system sellers don't trade the method in a model account. It might be too embarrassing. |
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Neal: This interview will certainly create a lot of controversy. What specific information can you give the Chicago-style trader? |
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Phantom: Let me cover this with a series of points. |
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1. To succeed in speculation, you must play defense, not offense. |
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