Zak Mir Interviews - Haron Ejaz of WMD
There will only be two conditions, the first is that they have been on a coaching program with me, and after that they need a three-month trading record. They will then be funded. It is still in the very early stages of negotiation, but I think it presents an opportunity to access a trading group which perhaps a lot of people don’t have access to already.
It is a huge flaw for many who are new in the market to underestimate the requirement for that exit. A lot of their energy instead goes into determining a good entry. But first off it is important to understand how price behaves, and after that it is about understanding the need to have an exit strategy for that trade. Ultimately, trading is about wanting to make money; it is not an intellectual exercise; it is not about being right. You can only make money on the exit, you cannot make money if there is no exit. I put a lot of planning into that and again, use price action to determine this.
ZM:
Finally, where do you think most traders go wrong? What can be done to change this?
WMD: One of the biggest problems in the
“Ultimately, trading is about wanting to make money; it is not an intellectual exercise; it is not about being right.” ZM:
So overall, if you are looking at the exit, you are in a position to win the war even before the battle has begun; hence the used-car salesman analogy. But how would you handle the question: what is your call for the Euro in 2013? Would you just try and shrug it off?
WMD: I would laugh. Laugh and have a little
chuckle. So here is my trading tip for Euro Dollar... It’s very, very, simple. If you want to determine the direction of price movement you need a line or a level. For myself, considering that we’re coming up to the end of the year, then the price I would be looking at is the price when the market closes on December 31, and the price I would also be looking at is when the market opens on 1 January 2013. That is the yearly opening price, and the price is going to move away from there, if it’s not moving then no one is making any money. As long as the price is above the yearly opening price, then I will be a buyer. Below the yearly, and I will be a seller. That is my prediction for 2013!
ZM:
Are there any new developments with your web service that you would like to tell us about?
WMD: We are in the process of negotiating
with some proprietary trading firms as a result of the substantial growth that we have witnessed in the past six months. One of the offers which has been presented to us is that if we recommend traders to these prop firms, then they will fund these traders.
markets is that there is so much misconception in terms of what is right and what is wrong and people, as a consequence, take on so many duff philosophies. They end up losing out on their trading, going nowhere because they are trying to apply ideas which don’t match the reality of how the market moves. My approach is unorthodox. People look at the way I draw trend-lines and ask, why do you draw them like that when you are supposed to draw them like this? My answer is should you draw like that because Edwards and McGee taught you, or because it works? My approach is to turn everything on its head. So I would ask you why do you spend the whole thought process and exercise your mind wearing yourself out looking for an entry in the market? Why don’t you look for an exit and trade the price to look for that exit? This turns everything on its head and shows that you are thinking the wrong way. What about money management? The standard theory of money management is get a decent risk:reward ratio, of say 2 to 1, and even if you wrong six times out of 10, you are still going to make it. If you believe the application of this money management idea, you are accepting failure just by accepting this notion that that you can fail six times and be right four times and still make money. Show me a successful trader who’s made money by getting it wrong that many times, and getting it right that few times. Reality and what you are taught in the textbooks are two different things. We need to look at a concept and ask the question, does this idea really hold water? The problem may be that all these gurus and self-help trading books, they simply seem to be setting you up to fail by telling you to accept the fact that you are going to have losing trades. I became successful not by increasing the number of winning trades, but by cutting the losing trades out. This was done by, amongst other things, recognising what a losing trade looks like on-screen, something which is just as important as recognising a chart pattern or a pattern failure.
January 2013
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