The MarketDelta Blog

The purpose of the Trader X series is to get a glimpse inside the minds of MarketDelta clients that are profitable traders. Each trader that we profile will have reported to us yearly net profits greater than $100,000.  If you are interested in being featured in the Trader X series, please contact MarketDelta.

Trader X

Trading Experience:

How long have you been trading?

20 years

What do you enjoy most about trading?

The challenge of it. I’m non-athletic by nature, but I feel like I can be the Michael Jordan of trading. Trading allows me to be competitive. In trading, I get to “be like Mike.”

What do you like least about trading?

Trading guru(s) who sell their systems and ideas for a whole bunch of money.

What are the top 3 factors that contributed to your success?

That’s easy. The top 2 are taped to my computer screen. Discipline and focus. I would say the 3^rd is to be fluid or flexible.

What weaknesses did you have to overcome? My discipline and focus…and bullheadedness.

Trading Tools:

How long have you been using MarketDelta?

Over 2 years.

How does MarketDelta best serve your needs? What trading strategies do you use (be as general or specific as you feel comfortable)?

The Footprint chart allows me to read between the lines. I’ll share some specific setups that I use. I use the Developing Value Area (Hi, Lo, and POC) and the footprint chart settings. I setup my Footprint charts: I use the Delta setting. I have 2 Footprint charts and one profile chart (split blocks on a 405 minute profile). One monitors trades of 100 lots and above. The other monitors all trades. Then I look for chart patterns. For example: if there is consolidation above the DVAH, I see that there’s strength (click on the screenshot below for a larger view).

Every once in awhile these setups don’t work…but there are more winners than losers.

Trading Education:

What trading books, websites, or trading educators would you recommend?

Trust your personal self. I spend 405 minutes in front of the screen most everyday. Develop your own feel. With that said, I recommend the Pete Steidlmayer and Ted Hearne 10 page primer. Understand the concept of staying and trading in one timeframe only.

I do recommend the 2 month introductory course I took from Jim Dalton and Terry Liberman. They help a trader how to learn trading (rather than being taught). I learned how to be a better left (analytical) and right brain (intuitive) balanced trader through their teaching about how the brain works.

Approximately how much money have you spent on external trading education? How many hours have you spent on education?

20 years times 405 minutes a day would be a good approximation.

Trade Management and Goals:

What advice do you have on trade and money management?

Think in terms of probabilities. At the end of the day I know I’m going to lose $1000. With that mind set, I can then accept losing and take all trades. I also know I will make $2000 a day. Thus, that nets out to 4 figures every day…hey…that’s what it’s all about.

Did you set trading goals up front in a very structured way, or did they just sort of develop as you became more successful?

My goal is to be the best trader I’m capable of being and it’s still the same as years ago. I do not set monetary goals. Rather, I just let my right brain recognize patterns that show up in the ES over and over. The monetary “points achieved” will fall in place.

Did you focus on good risk/reward trades? What timeframe do you trade?

I consider myself a scalper and trade a one minute timeframe. I trade 20-25 times a day with 75 being my max. I look to take what the market gives me which can be from 1 tick to 10 points. I only trade the e-mini S&P but I have traded the SPY and some stocks. Pick a time frame and stick with it. I trade dinky 1, 2, or 4 lots. I am a good small trader of contracts and a lousy trader of large amount of contracts.

Do you keep a trading journal?

I print out “homework” each and every day to reinforce the right brain pattern recognition. See example below on how I best learn my right brain pattern recognition (click on the screenshot for a larger view).

Any final thoughts or bits of advice?

An old floor trader friend Jeff told me you could give every one in the pit the exact hi and the exact lo for the next day and the majority will still screw it up.

Understand the market and understand yourself. Do not beat yourself.