Matthew Kerkhoff, options expert and editor of Dow Theory Letters, continues his 14-part educational...
The Best Traders You've Never Heard Of
06/20/2008 12:00 am EST
Bourquin’s idea for this workshop was to show traders that you don’t have to be a household name to be successful. While traders who attend conferences such as the Expo have access to some of the more well-known experts in the field, they don’t often have an opportunity to meet and hear from traders similar to themselves who have been honing and plying their skills with a great degree of success over the years.
Bourquin asked each panelist to highlight his particular trading strategy, talk about their goals, and give some examples of their recent trades.
Eddie Allen, co-founder, Pinstripe Capital, LLC, told traders that his strategy is to buy low and sell high. He doesn’t participate in breakouts, but does tend to buy on pullbacks. Allen noted that his best strategy is to set rules that he can abide by on a daily basis, and then do just that. And while his trades can last one day to three months, his typical holding period is five days.
Ken Chow, a professional trader, primarily trades for his family’s accounts. He employs a flexible system that is driven by chart reading. Chow stated that he does execute breakout trades and likes to buy or short on pullbacks. He uses Q-charts, as well as Fibonacci numbers that are a little unique.
Todd Gordon, currency strategist and active trader, FOREX.com, primarily uses Fibonacci numbers & Elliott Wave Theory to determine his best trades. His strategy is to find the leadership in the market, and to trade accordingly. He advised traders not to get too caught up in having to be perfect and not to beat yourself up every time you make a mistake. Instead, just learn from it.
Pat Henninger noted that he is an international equities trader and trades based on mean reversion, spread strategies, and paying attention to beta. His holding period in most markets is three-to-five days, and his average trade is five-to-ten minutes. Henninger noted that his best tool for making money is to keep a detailed daily journal, describing what he feels emotionally, what the market is doing, as well as comprehensive data on each trade he makes.
John Netto, president, One Shot-One Kill Trading, believes in finding and managing his risk. He prefers to buy weakness in rising markets and takes his profits regularly. Netto told traders that he often finds that the markets and trades with the highest amount of energy provide the greatest opportunity.
A lively debate ensued as panelists challenged each other on specific philosophies and strategies.
Bourquin wrapped up the workshop by asking each panelist for examples of past trades, as well as an upcoming trade recommendation that the audience could immediately try to apply their newfound skills and strategies.
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