Trader Profile: John Netto
04/16/2009 12:01 am EST
This week's interview is a fascinating insight into how a professional trader approaches the markets. Listen to a few successful independent traders and you'll start to hear a common theme. Top traders "provide liquidity" to other traders by taking the opposite side of their trades. Translation: Every trade on which you lose, they make money. In this interview with pro trader and former Marine, John Netto, you'll hear what he means by "providing liquidity" to the markets and how he finds "stick points" where short-term trends are about to change. We also talk about how he "fades short-term sentiment" and "buys long-term sentiment." John also tells us the software he uses for charting and execution and how he uses "Delta hedging" strategies on nearly every trade to bring his risk to nearly zero.