Editorial Contributor
“From the experts that I have interviewed before for Spreadbet Magazine, they really seem to do 90% of what everyone else actually does, as far as the trade preparation is concerned. The difference is that they have the discipline and the brains to carry out a strategy, whereas it seems most people don’t.” They would tick off the points in your checklist one by one and then wham bam come to the opposite conclusion that you have — and lose money. From the experts that I have interviewed before for Spreadbet Magazine, they really seem to do 90% of what everyone else actually does, as far as the trade preparation is concerned. The difference is that they have the discipline and the brains to carry out a strategy, whereas it seems most people don’t.
WMD: I think that everyone has the capability.
If you take the example of a medical student who studies for 4/5 years, I do not think anyone is going to provide a scalpel to that person from day 1 after graduation to start some brain surgery. But this is the analogy that many traders find themselves victim to in that they read up about trading and digest all the theory. But there is a big difference between say, understanding the definition of support and resistance and knowing what that looks like on screen. Sometimes what you need is that guiding hand, just like a newly qualified doctor. It is about taking the theory and understanding its application on screen. Once someone has explained that to you, it accelerates the learning curve. The key is to transfer all the theory towards its practical application. People tend to jump into the markets thinking it is simply going to be an easy ride.
ZM:
But as it is not easy, would it not be best to use your service blindly rather than go through the process of trying to learn, get it right and change one’s way of thinking? Let’s be lazy, so to speak, and just follow the few people out of every 100 who can call the markets consistently.
WMD: I think it is more a question of your
trading objectives, so if you wanted to actually learn, then you would get into the market psychology, the dynamics.
26 | www.financial-spread-betting.com | January 2013
We allow & encourage you to do that. Alternatively, if you are an investor and not a trader, you would take that particular route that “Trading With Deadly Accuracy” provides. We offer a viable route for both of these services.
ZM:
What do you think your “edge” or your difference actually is? For me it seems you have a very cool, level headed approach to the markets and in that way it is very unlikely you will get rushed into doing anything rash — one of the key reasons I believe that most traders fail.
WMD: I think the key element is that I have the
discipline and the patience to wait for the trade to set up to before pulling the trigger. There are a couple of other issues here also which come to deliver an edge, certainly in my trading. The first, as I have already mentioned, is price action and being able to link input with output. I have a very good understanding of market dynamics and the ability to interpret not only an entry, but an exit price, of which the exit is very important. In fact, from a trading textbook approach this would be very unorthodox; I take a trade because there is an exit. I do not trade because there is an entry condition that has been satisfied. Just to give you a brief example of what I mean, normally if you are a second hand car salesman you go to an auction and buy a car and then look out for someone to buy it. My situation is a little bit different. Someone comes to me and says that he wants to buy a car and he wants to pay £5000 for it. Then I will go and buy that car and I will sell it to him. That is the difference between not having an exit before you on entering a trade and not having one determined beforehand. Something that stands out in my analysis over a period of time is the way that I have positive expectations about somewhere where the price needs to be, so that after that, taking entry is a secondary issue — once you’ve outlined that exit point.