Jake Bernstein: psychologist, who became a trader
Jake Bernstein. one of the most famous traders in the futures industry, began trading "by chance", he said in an interview with FWN. Bernstein was a psychologist and responded to an ad in the newspaper about the "futures". He began to call the broker, and Bernstein opened the account. "I have achieved rapid success, which has turned into a fast failure" - says Bernstein. At that time he acted solely guided by the recommendations of their broker. Then Bernstein "regrouped, went into the formation and began to engage in self-trading." Now he is an active trader, but participates in the auction only technical way: out of stock exchanges, with the screen.
"My work has always been technically oriented, with the use of price patterns, seasonality, and cycles." Bernstein initially "developed his own method and timing. I had no money to bid, so I sold the plane. " Over time, he accumulated enough money and began trading on his own method.
Bernstein served as president of the company MBH Commodity Advisors, located in Winnetka, Ill., and is the author of more than 20 books. He publishes a newsletter MBH Weekly Futures Trading Letter, which is published without interruption since 1972, and regularly conducts seminars on specific topics related to trading. Bernstein also included in the composition of the All Star Traders Hotline. "I love to teach. Whenever I teach, I learn something new, and it reinforces in me the belief in my own methods, "- said Bernstein. He adds that "among traders spread so much misinformation that I enjoy learning things in the performance of which I am sure."
Bernstein is inclined to participate in the most active futures markets: energy, finance, contracts, S & P. But, he said, "I'm trading all that changed in a given time frame." Bernstein usually avoids such thin markets such as palladium or orange juice, "I do not like how they execute orders."
When asked about whether there is no erosion of technical analysis, as more and more traders focused on the same graphic patterns, Bernstein said, "Graph patterns - it is both art and science. I tend to stick to crystal clear throughout. If the chart looks 10, and all come to the same conclusion, I feel in this situation is quite comfortable. I like to be objective. " Bernstein cited the example of the Elliott wave analysis as an example of technical analysis, more prone to "subjectivity", as the calculation of the wave is subject to individual interpretation.
This veteran of the exchange trading has opened its own page on the Internet and feel great optimism about the impact of the "worldwide web" on the Trading Desk Community. "I think the Internet will quickly disseminate information and allow more people around the world to participate in the markets. This will expand opportunities for all. "
As for the future of traditional exchange trading, the Bernstein does not think that electronic trading in the near future will be able to dislodge them. "While I am not convinced of this - he said with respect to predictions about the inevitable decline of trade in the hall. - I think that while there is still room for a trader and broker for the hall, and if the broker will be effective, then it is a necessity. " Bernstein, however, has always been a "screen trader", explaining that because of his small stature, he can not be a trader in the room, because "the people there will have an advantage over me." Speaking about the current state of the futures markets, Bernstein expressed confidence in the imminent arrival of a new inflationary era: "I think we will have one of the biggest inflationary trends since the 70s. Will be a big rise in precious metals. Already seeing price increases for all cereals ... crazy energy, and it all points to inflation. We will see growth in interest rates and large market bears on interest rates. "
Council Bernstein beginners: "Start with enough capital, diversifying, make deals on all the larger fluctuations and manage risk."