Tom Berovik in addition to its rules of good sense
OTC trader Tom Berovik (Tom Bierovic) operates in accordance with a set of rules worked out by them for years, but in addition, also be careful. Berovik believes that he is fortunate, since he was introduced to the futures business at an early age. His father was a trader on the exchange MidAmerica Exchange, and Tom drew a daily and weekly charts of the agricultural contracts, earning himself so pocket money.
"We did not have computers ... I bought the evening papers every day and found out the prices at the close" - says Berovik. In addition, he worked in the summer Berovik stock room with her father: "I was a 15-minute intraday bar chart, as well as counting simple moving average of closing the 15-minute sessions over 10 periods. His father worked in the market scalping, but concluded the deal only in the direction that I pointed out to him in accordance with 15-minute trends. "
After he had for several years and draw graphs manually calculate exponential moving averages, stochastics, RSI, ADX and MACD, Berovik longer does anything manually. But he believes that this practice is very good for those who are learning. Berovik - a purely technical trader. According to him, he even "made a conscious effort to not know anything about the basic fundamentals." "All the basics very well summarized in the current price on the market", - explains Berovik. - Technical Analysis - an applied social psychology. This is just the behavior of the crowd - hope, fear and greed. "
Currently Berovik trades from his home in suburban Chicago and dispose of "a couple million dollars", calling himself "sane trader with a very specific methodology," "I have all the rules are written accurately and carefully. So on my system can handle anyone. But if I were to follow it exactly, then went to their habits. " However, it is not a licensed trader (CTA) and adheres to the established framework, not having the right to independently raise funds and limiting the number of its customers up to 15 per year, have Berovik.
Berovik developed a concept he calls the "method of trading with the correction of the moment» (momentum retracement trading method) and that includes "knowledge of the direction and quality of trend, knowledge of how to measure the counter-trend of the reaction and when the trend become stronger again, knowing what and how to take risks. " With regard to vremennh framework, then, according to Berovika, "I'm basically trading on daily charts, but watching the market on intraday charts and keep track of their feet in a single day."
Berovik focuses on dynamic markets and is not ashamed to profit by selling shares on the rise. As an example of one of his deals, he says, "If I go today, I will go out tomorrow when the market returns to today's high. I will not take up the deal if the market lately shows a strong trend in one direction ... to go long, I need a real push up the market. I think it's important to make a profit, because the markets are taken in its 9 times out of 10. I'm just trying to get exactly at least 40% of cases, using the ratio of reward and risk of 2 to 1. This can be a living. "
"I sell a stock and looking for an opportunity to re-enter", - says Berovik and notes that it trades usually last from two to four days. It is one of those cases where, according to Berovika, common sense prevails over the rules. "With the output happens to me in different ways. I say to myself, because you can still earn extra money. You can sell the shares at the close of aspiring. For me a good deal - this is when earned twice what the risks. " Being prone to technical analysis, Berovik does not favor any one market. "I really treat them all equally," - he said, and joked: "My favorite market - most recently in which I had a good deal, and least favorite - the last market in which I suffered a loss."
However, he pays more attention to liquid markets. "The more the market, the more believable occupancy orders and technical analysis. I am constantly in liquid markets. I do not sell timber or pork bacon, palladium or Australian dollars. At a small market, pork bacon, which is not too difficult to control, great player can push all the other "- says Berovik and explains:" For a small market technical analysis may not work "if the hopes, fears and greed of the crowd will not be accepted into account.
Berovik pays tribute to Chuck LeBeau (Chuck LeBeau): «He taught me to pay attention to the markets with a minimum daily volume in 5000 and total open interest of 20 000 or higher ... but the more I will not tell you."
Berovik advises beginners to "develop a style of trading that is compatible with your psychology ... Some may be a day trader S & P, and some can not. The style of trading must exactly match your personality. " According to him, "a novice trader to focus on the study of technical analysis and trading, and no statement or income in dollars ... Do not let the big losses, not to leave the game. Do not rejoice over good deals and do not worry about failure ... you should not feel like a hero after a good deal or an idiot after a failure. Just stay on the market and continue trading. "
"The problem is to find your trading method and follow it" - said in conclusion Berovik.