Momentum Masters#

A Roundtable Interview with Super Traders

Introduction#

Has your trading style and strategy stayed the same?#

Pretty much stayed the same - always refining.

Process#

Per and post market preparation - reviewing positions setting stops, checking news.

Motivation#

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.

Trading#

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