|
PureBytes Links
Trading Reference Links
|
Hi Gene
----------
> From: Gene Batten <mdleb@xxxxxxxxx>
> To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
> Subject: Trading for a Living ??
> Date: Friday, 22 May 1998 1:00
>
> I would be particularly interested in the following
questions:
>
> 1. How did you make the transition to full time trader?
My background was in the law, owning my practice until I sold it
to take up full-time trading.
> 2. Would you do it again?
Yes but with different paradigms. When I started my
focus was to make money - I learnt that, for me, I need to
focus on not creating disasters by failing to execute
my plan flawlessly.
> 3. What do you like and dis-like about full time trading?
Firstly, I love trading; it is one of a number of things I'd
be unlikely to ever give up.
What I like most about it is that success or failure is totally
dependent on me. In most other professions, I'd be depending
on the state of the economy, location etc - not so with
trading.
Rather than dislike, I prefer to say that the most challenging
times occur when I experience a prolonged drawdown period. One
of
the longest occurred in 1996 when for 9 months I did not make
any money.
> 4. What is your trading style, what markets, etc.
I am a discretionary position trader trading only
the FX (foreign exchange) markets.
> 5. What has been the most challenging aspect of full time
trading?
Overall I'd have to say understanding that successful trading is
not
only a trading plan and money management but also the successful
handling of the anxiety of dealing with probabilities.
Most humans have an anxiety about dealing with the "unknown";
yet
as a trader I face that each time I place a trade. In this way,
trading
is one of the most stressful occupations. Even a surgeon (given
you
have someone's life in your hands and therefore stressful) can
be sure
that his patient's heart, brain etc are found in locations that
are
certain. I had to learn that for me the proper management of
stress
involved not its denial but rather acknowledgment, acceptance
and
then management.
Failure to manage stress appropriately led to bizarre behaviour
-
holding on to losing positions when I KNEW that to succeed I had
to cut losses; taking unplanned trades etc.
> 6. Without giving away secrets, what are some of your
strategies,
> methods, etc.
My views are more or less contained on the RT website both in
the
"trading secrets" shelf and well as the R Barros site itself.
> 7. How much capitalization (account size) is needed?
That depends on how much you need to live and how much of an
edge
your plan has.
I on put aside about 50% of profits to live on and 50% to
increase my bank.
> 8. What kind of returns have you been able to achieve?
I aim for 30% pa though my average returns since 1987 are
a little higher.
> 9. Any other info that you think is meaningful and helpful.
a ensure you are trading successfully before you give
up your day job.
b either have an alternative source of income or enough savings
to cover 2 years expenses (preferably both). This is especially
important when you begin.
c if you have a partner, take time to elicit her support -
you'll
need it during the losing months. Losing is tough enough when
you
pay the bills from your profits; your partner's support during
this
period can mean the difference between success and failure.
regards
ray
R Barros
101/25 Market Street
Sydney 2001
Tel: 92673470
Fax: 92673478
e-mail: ramon@xxxxxxxxx
|