A Roundtable Interview with Super Traders
Has your trading style and strategy stayed the same?#
Pretty much stayed the same - always refining.
Per and post market preparation - reviewing positions setting stops, checking news.
Teaching others. Making money.
Started successfully or started badly#
The heck with my ego; the goal is to make money, not be right
No, make mistakes learn from them. Money management. Admitting mistakes.
If a stock gets very shaky for even a single day, I’m out.
I never believed in a stock’s story, or a rumor, or a news report ever again. Everything I need to know is based on the stock’s price behavior and volume; the rest is pure noise.
Big players vs retail investors#
Smaller players can move quicker
People with full time jobs using end of day pricing#
Yes, but better to use mechanical stops - as harder to track pricing. Be more selective.
Never buy new lows
Look at stocks not sectors
Price leads stocks leads groups
Avoid IPO’s let them trade a bit first
Even experienced traders do not short often
Do not over-diversify…you won’t have consistently good performance when you are diversified all over the place
Risk 1 to 3% of total equity
Max of 25% in a position
If a stock is too small and too volatile - risk less