© Docdow
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When did you start trading and what was your motivation?
I started in the late 1970`s looking at trading after they legalized listed options in the USA. I traded some oil stock equities in the beginning and applied for a job at the American Stock Exchange (AMEX) in 1979. In late 1980 I got a job at the Philadelphia stock exchange (PHLX) and learned how trading worked. First, I worked for the exchange (6 Weeks) and then I got hired to work as a "Runner" on the trading floor one of member firms. Over four years I grew in knowledge and experience. I helped to develop and establish currency cash options, and trade them as a floor broker executing public orders. And by constantly making all time Global Records for the size of option executing I was hired by a property trading firm to trade their money. As time went on I moved to New York to the NYSE exchange and traded from there, then to Chicago to trade there at the CME in the currency futures Pits. Over the years I have been member of CEC (Old World Trade Center) and the AMEX.
What currency pairs do you usually trade and what is the reasoning behind your choice?
I am a technical trader, thus I do not find any one pair as an advantage. Like a motor with 8 pistons I see many pairs' trades work well in a rotation. Hence, I pick which ones to trade by the technical signals more, using the same trading rules on each.
What is the basic principle behind your strategy?
The core idea behind my strategy is proprietary math, as well as my pursuit to follow good and consistent habits. I try to stay inside my math and algorithms without getting emotionally involved in the trade by following my rules. As a proactive trader a person has to decide when to execute. What happens is that sometimes a trader start psychologically talk himself into the trade refusing to use good judgment like risk management tools. When a trader gets into the trade and it does not go the way it is supposed to go the trader starts to lose money.
In your opinion, what are the most volatile and predictable pairs at the moment?
I do not see any trade easy, as they all try to keep traders on our toes. However, the ones, which move fast and fare are the ones I enjoy.
What performance do you expect from the U.S. Dollar versus its major counterparts in the short and longer term?
I think as long as the quantitative easing goes on and amid ultra-low interest rate environment, I would agree to Mark Spaelti from Dukascopy Bank SA that on a global basis we are trapped inside ranges. There are some currencies that seem to step a little far out of the range, like the Aussie Dollar against the U.S. Dollar. However, I really do believe until the quantitative easing is done, such major currencies like the Euro, Swiss Franc, Pound are going to be trapped in very large band of ranges, as we are currently around the same levels that we saw a year or two years ago. Thus, I do not really believe that there is a breakout occurring.
What advice would you give to those, who have just started FX trading?
I strongly believe that discipline is the key to everything. If you are an FX trader and you are working for an institution or a bank, you are reactive. However, when you are a new FX trader and you are trading for yourself and you have to decide when to execute, you must follow your own rules and your back-tested systems. You must become extremely disciplined. You cannot allow yourself to step out of the rules as that could make you losing your capital. Make a lot of little victories with money and stay away from big losses – this is the key to success. For young traders my advice is to do a lot of back testing and stay inside the rules, which you develop as a trader.