Rob Roy before, how to start trading the markets full time, was the head of an independent financial consulting firm, which he founded in 1992 G. Rob trades options with 1996 of the year. He views options as an opportunity to make a profit on the market, regardless of direction.. Rob also conducts seminars on trading in financial markets at the company “Optionetics“.
Question: How did you first become interested in trading?
Slave: I first became interested in options trading during the 1998 stock market correction.. I was then a financial advisor, and it was hard for me to be on the sidelines and see, how did customer accounts melt. I counted, that I had to find a way to not only protect transactions, but also make a profit on the fall of the market.
Question: When did you start trading, In your opinion, what is the most serious mistake you have made?
Slave: No doubt, I came, well, the same rake, as many other newbies – sold uncovered “the road”-opci-on. You know, expiration date – this is an argument in your favor. This works great in a bull market., but sooner or later the aspect of unlimited risk will definitely work against you.
Question: What do you like most about the trading business?
Slave: Actually, I like a lot. If you highlight one thing, that is, probably, freedom, which I now have regarding my time. During my past career as a professional golfer, I worked seven days a week for many years.. It was not the hardest job in the world, but at some point your time becomes more valuable to you. Then, education received in the markets should be noted. I understand, what things, which I learned, not many people know and understand. It gives me some pride.
Question: How do you feel about losses and set your risk tolerance threshold?
Slave: Losses worried me only at the very beginning of my trading career. Soon they stopped worrying me at all. Using those regulation techniques, which I studied at the master classes of my mentors, I stopped taking such big risks, like in the past. If I am forced to take a loss on a trade, then i'm sure, that I will return it on the next deal.
Question: You consider yourself a technical or fundamental trader?
Slave: No doubt – Technical. I don't even look at the fundamentals.
Question: Considering all the variety of technical analysis tools, how can novice traders avoid information overload or, so-called, “palsy analysis”?
Slave: In general, I am a supporter of Elliott Wave analysis, as well as the Fibonacci ratios. I named them in due time “new wave” technical analysis. They have become very popular now., but I started to actively use them, when still looking at old traditional indicators, as I felt, that they give me the market advantage I need.
Question: You can think of your first big deal and, what did you feel and think at that moment?
Slave: I cant remember, what was my first trade or its accompanying analysis, but i will never forget, that I was scared to death, when I opened my first trade position.
Question: Can you name your most memorable deal??
Slave: Light. I talk about her in my seminars. One summer morning I bought “колл”-index option “Dow Jones”, when it opened lower by 220 points and index of volatility BARELY soared up 55. After that, I went with my son to the beach and returned just before the close of the afternoon session.. By then, the Dow had risen by 460 points! Are you resting with your son, and your trade brings you a good profit – what could be better than this!
Question: How would you describe your trading style?
Slave: I trade, mainly, on “calendar spreads” And “to strive”, when the value of variability (BARELY) below and make very small purchases “колл”- And “the road”-options on DJX and MNX indices. I like to combine some short-term trades with longer-term ones. “calendar spreads”.
Question: What advice can you give to novice traders regarding, how to deal with emotional traps, inherent in trading?
Slave: I've experienced them all for myself. Finally, I understand, what, to be successful, you have to get rid of emotions. Don't take it as a personal failure., if the market goes against you. Follow your exit rules and move on to the next trade. There will be many better deals.
Question: Like a beginner trader can succeed in the markets?
Slave: Develop a system, based on your individual risk tolerance and goals. Decide, are you going to be a fundamental or technical trader and what your indicators should be. Form your own trading plan, which will match your individual qualities. Establish certain rules and, what matters most, follow them! Test your system first on historical data, and then on a demo account. When you are ready, then practice, practice and practice again.
Question: What do you like about teaching other people to trade?
Slave: I like the fact, that I help people make a difference in their material well-being. They start to care a lot more about their money., than they did before, thanks to those concepts, which they learn from me. They can learn to manage their money better., than most financial advisors. While no one should trade all their income, our strategies will help them be more effective, than any mutual fund manager.
Question: What mistakes do most novice traders make??
Slave: Enter trades before, what are they ready for. In my workshops, I focus on the importance of having an exit plan before, what is the deal. I think, that some newbies are so caught up in placing a deal, that postpone the exit strategy for later. We set clear rules for the trading plan, which they must follow.
Question: What kind, In your opinion, the biggest misconceptions beginner traders have about the markets?
Slave: You can talk about it for hours. But, first of all, I must mention the misconception about, that brokerage companies, analysts and other near-market public genuinely care about, whether their clients make money or not. When you are dealing with the potential profit from a successful trade, greed is common “in all its glory”. I think, what people need to understand, that brokerage companies are also under pressure, to make a profit, like any corporation. Their own interests are much more important to them., than the state of the client's accounts. There are many pitfalls in the trading world, and without proper preparation it is very difficult to win here.
A source: Forex Magazine
okbm(“http://nysetrader.net/intervyu-s-trejderom-rob-roj/”,”Interview with a trader: Rob Roy”)
