What markets do you trade and why?

Oli: My primary market is the Bund (10-year German Government bond). Whatever you trade, whether it’s the FTSE, Dax, T-Note or Eurostoxx, some of the time conditions are good and at other times the markets are frustrating and harder to read. Markets seem to go in and out of fashion over time and, as it happens, people are looking closely at the Bund right now. This is different from a couple of years ago when people turned to the equity markets and in particular the FTSE. After you learn the core skills of trading you will be able to trade any market, but you should always have a single market which you can rely on even if trading conditions are difficult. We call this our bread and butter market; one in which you have the ability to grind out prices every day.

Adam: I changed from the Eurostoxx to the Bund and then to the FTSE. For me it is about which market suits your personality and the way in which you trade. I found the Bund frustrating and didn’t feel as though it suited me. In contrast, the FTSE has provided me with much more success and this is the pathway I have chosen to follow.

Artur: For me the FTSE was like a casino! It felt fast and thin and didn’t match my personality or the way in which I liked to trade. I now trade the Bund and find this easier to read which has helped me increase my trading size dramatically and also my profits.

You all use scalping as one of your key tactics in the market, what is this?

Oli: For me scalping is the term used for when a trader looks to get in and out of the market quickly, looking for relatively small profits. When trading in this manner it is essential to ensure you manage your risk well and don’t lose money through stubbornness. Your target on the day shouldn’t be to make a profit but to ensure you don’t get caught on the wrong side of a trade. You should never lose more than you set out to, particularly if your profit target is a few ticks.

Adam: Scalping is a tactic I use to extract 10/15 prices a day from the market. It is an approach that encourages you to trade consistently which over time will allow you to increase your trading size meaning you can earn more money in the markets without excessive swings in your P&L. As Oli says though you must show discipline in knowing when to exit a trade.

Artur: You must know when you are in a bad trade and when to cut your losses. You must be able to judge when the market is going against you. When you make a losing trade you must reassess the market, identify why the trade was a loser and look to evaluate what is going on in front of you before re-entering the market.

What did you look for when starting as a trader?

Oli: When I started to trade I mainly looked at charts. I used them to identify support and resistance levels which I then used as guidelines. Now, with more experience, I am able to rely on the price action/behavior to make more effective decisions. I look to identify exhaustion points in the markets i.e. when a big move in the market is coming to an end and when it becomes clear to you a change in direction of the price is imminent.

Artur: It’s good to watch out for large orders and look to enter and exit the market either side of their involvement. Also, I recommend looking at general price action to confirm fundamental data. Therefore, after an economic figure, you must look at the price action to determine whether the changes in price are valid and your thought processes correct, before jumping into the market.

Adam: The only way to learn all these things is to actually trade in the market. You pay much more attention to the markets when you are actively in a trade rather than watching. You should trade small size initially for extended periods and look to identify characteristics of price movement. This will help to boost your ability to preempt changes in price in the future.

What time of day do you trade and does the time matter?

Oli: Sometimes mornings are easier to trade as the market has more structure. Afternoons can often be more erratic due to the presence of US participants and particularly at the cash open. However, you must ensure that even if you are making more money in the afternoon that you continue to trade in the mornings. Market conditions can change overnight and if you have eliminated your trading activity in the mornings, this will inhibit your ability to generate consistent profits.

Artur: It is vital that you never panic when it comes to making money and let the opportunities come to you. Times of the day to watch out for are the economic figure releases, bond auctions and the opening/closing of the underlying cash markets. The US participants often don’t pay any attention to your trend lines and technical levels, and the market can often jump violently. You must be cautious. It is also vital that you do not change your trading style whether you are up or down. For example, do not increase your size just because you are down and looking to chase the market. Don’t increase your activity (over-trade) just because you are chasing losses or through overconfidence. For me this is gambling and not trading according to a concrete plan. This will only result in even greater losses or giving back money that you have made.

Adam: You are an insignificant fragment of the market. The market is still the market if you are up or down and therefore you should treat it in exactly the same way no matter what the time of day. It is not against you at a particular time of the day but you must demonstrate discipline throughout the day to “win”. Ensure that you stick to your rules and plan otherwise you will not be able to monitor the effectiveness of your approach. If you stick to your rules and you are consistently losing, then you can look to change your rules in order to become profitable. If you deviate from your rules and trade in many different styles, then how can you identify the mistakes you are making, eradicate them and progress to become a consistently profitable trader?

How do you control your own mindset when trading?

Oli: A trader must be mentally in the right position to make a trade. If you are angry or frustrated due to a previous trade, and do not have the right temperament, this will only result in losing trades. You may make an error causing you to lose money on the original trade but the more serious error is continuing to trade with an ineffective mindset leading to further losses. This is why it is important to take five minutes away from the screen, to settle your emotions and recreate the correct mindset to enable you to get back to your winning beahviour.

Adam: When the market goes against you it is important to not take it personally. The market is the market and it is your own decision making and ill-judgment that causes errors from which you must learn to ensure they are not repeated.

Paolo: When I trade and I lose 3 times in a row I walk away from the markets for a period of time or I go home. The time it takes you to walk around the block and gather your thoughts will save you money.

Artur: Trading is all about the ability to know when you are in a losing trade, your ability to take a loss and then move onto the next trade without it having a negative effect on the manner in which you trade.

How did you change from trading inconsistently to being a consistently profitable trader?

Paolo: Every trader starts as a loser and it’s the ones who put in the hard work and commitment that become consistently profitable in the long run and give themselves the chance to earn large figures. On this path many traders go through a variety of lessons.

Artur: It is vital to learn plenty about the markets, the overall economy and to learn from the people around you in order to get your own knowledge to a level where you grow in confidence and are able to make consistent profits. It is important to learn about yourself, what suits you and to maintain a long-term vision such that if you work hard and develop your trading, whilst learning from your mistakes, you will eventually reach your destination. The discipline must be there and you must come to work prepared every day both psychologically and physiologically.

Adam: It is your primary responsibility to know the markets, the economy, what is going on and how these factors impact the price in front of your eyes. Eventually you will grow in confidence and be able to forecast market movements and confidently trade using these to give you the opportunity to make money. As mentioned previously it is vital you stick to your plan and don’t react to your own P&L, changing the way in which you trade. Over time you will develop the resources you need to be successful and you must remain patient. You must not blindly copy others as how they make money is unique to them. Share ideas but develop a style that suits you. Wait for your opportunities in the market as they will come to you. Do not over trade but trade with good reason.

Paolo: Developing as a trader involves increasing your trading size. It is difficult to increase your size to begin with because an increase from 2 lots to 3 is a 50% increase. You must look to increase your size only by an amount which is unnoticeable to your “fear monkey”. Ensure you do not change the style with which you trade due to fear; you must remain comfortable and confident. Also, look to change your size by different amounts; for example from 15 to 17 instead of to 20 so that psychologically it isn’t a huge step. Within a week the new size will seem irrelevant and you will behave in the same way as you did with the previous size.

Oli: The key driver for me in becoming profitable was confidence and this only comes through long periods of hard work. You must read plenty and research/review your trading constantly. You must analyze every aspect of the markets and the economy, understand every economic figure and bond auction, and know exactly the impact they have on the market. Look at both the charts and these figures to identify patterns of movement so that you can identify what the market does. When you can do this you can trade confidently and quickly take ticks from the market. You must spend every day glued to your screen till the late hours of the evening so you know how the market behaves at all times of the day. There will be evenings when you have to trade until 9 o’clock because you have had a bad day. If you have consistently left early every other day at 5 o’clock, what chance do you have of understanding the markets and what is taking place. Look back at your day at the errors you made and identify why you made them. Make a commitment to eradicate them from your strategy; this is essential to your development as a trader. There is no shortcut to becoming consistently profitable; you must put in long hard hours of dedication to get the results you desire. You can’t change how smart you are but you can change the amount you know about the markets through consistent hard work and dedication.

Futex Investment & Trading Academy

“The Ultimate Futures Trading Education” ]]> http://www.futex.co.uk/inbox-education/from-inconsistent-to-consistent-what-does-it-take-to-be-a-successful-trader/feed/ 1 http://www.futex.co.uk/inbox-education/futures-masters-interviews-with-futex-academys-elite-traders-8/ http://www.futex.co.uk/inbox-education/futures-masters-interviews-with-futex-academys-elite-traders-8/#comments Mon, 12 Jul 2010 13:25:06 +0000 John http://www.futex.co.uk/?p=2006     July’s Futures Masters sees Henry Morton give candid answers on his automated approach to trading, the worthwhile struggle to find his niche and his future trading plans.

How did you get into futures trading?

I have had a fascination with trading for a long time but became very interested in the markets at the start of the banking crisis. I saw news articles talking about the extent to which the S&P500 or Dow had sold off and how specific stocks had plunged to less than half their value in a single day! I wanted to understand this phenomenon and began to learn more about it. I soon decided that I wanted to work in an environment where I could be at the heart of this action. I applied to join Futex, learned more about trading whilst at the Academy and was able to pursue my interest in the global markets professionally.

Tell me about your early trading experiences.

Starting out is hard. It takes a while to find your way in the market and the approach that is best suited to you. You need to find your niche in the market. Many people trade very actively for short-term fluctuations, others trade by taking a longer term position, some do both. Early trading experiences nearly always involve trying out many different approaches in order to find one that works for you.

What trading do you perform now and which products do you trade?

All of my trades are now executed as part of a system. These are most often intraday position trades that may be held for the duration of a trading session or, occasionally, overnight until the next morning. They will be placed in markets such as the S&P 500, e-mini Dow, Dax or FTSE, depending on the setup encountered.

What information do you use to make your trading decisions?

My trading decisions are derived from researching historical market behavior over a large period of time in order to find areas where an edge may be present. Trading systems are then designed to trade these setups in an automated way so as to remove emotion. This execution is performed using computer programming techniques which Futex also make available as a service to clients through its Strategy Research department.

How do you see your trading evolving over the next 12 months?

I see things progressing steadily. I am working on some ideas with a fellow Futex colleague who operates a Hedge Fund which may lead to me broadening out into other markets. In terms of market behavior I see the potential for some large trends to form which will provide good trading opportunities. If my system’s performance is good then it is correct to broaden scope and increase size in order to develop and take the most from the market under such a scenario.

What, in your experience, makes a successful trader?

Hard work and a keen focus on the market at all times. There are many styles and approaches to trading, but most traders display a genuine interest and enjoyment when it comes to researching the market and trading it. This enables them to keep a sharp edge over the other participants and maintain the commitment that is needed to progress.

Futex Investment & Trading Academy

“The Ultimate Futures Trading Education” ]]> http://www.futex.co.uk/inbox-education/futures-masters-interviews-with-futex-academys-elite-traders-8/feed/ 0 http://www.futex.co.uk/futechs/futures-masters-interviews-with-futex-academys-elite-traders-7/ http://www.futex.co.uk/futechs/futures-masters-interviews-with-futex-academys-elite-traders-7/#comments Mon, 07 Jun 2010 09:45:57 +0000 John http://www.futex.co.uk/?p=1560   For this month’s Futures Masters we have managed to sit down with Futex Investment & Trading Academy Director John O’Sullivan to pick his “experienced” brain on what it takes to be successful in both the Trading and Training business.

When and how did you get involved with Futex?

My involvement with Futex goes back some 10 years. I was enthused by the Directors’ vision for the business, the people and the opportunity. Having come from a successful career in a non-financial related industry I was excited by the huge scope for personal development that a successful career in trading allows.

Why did you start Futex Investment & Trading Academy?

We started the Academy because of the enormous demand from people wanting to get into trading. After extensive research it was evident that Futex had a clear, unique and excellent process in place for ensuring every trainee had the best opportunity possible to succeed as a trader; it does not over promise or under deliver. Since I became involved I have witnessed a lot of trading companies come and go. In my opinion they over promised and under delivered.

How has proprietary futures trading changed since you first became involved in the industry?

Some people say that the Algorithms/Black Boxes have taken over and that it’s difficult to trade these markets as a result. What I do see is those traders that were successful continue to be successful. That is no accident; talent, dedication and hard work pay-off in the long run.

What kind of misconceptions do people have about trading as a career?

One of the most common comments I hear from trainees who join our Academy is “I did not know how little I knew before I started the training at the Futex Academy”. To become a successful trader you need to dedicate significant time (not part-time or evenings). This is a serious business and to succeed you need to pay it that respect.

What, in your experience, makes a successful trader?

There are certain traits common to all of our successful traders: being at your desk all day every day, doing your research and constantly improving your knowledge of the world’s financial markets. Successful traders have focus, dedication, drive, determination and self-belief. They are active participants in the markets.

What next for Futex Investment & Trading Academy?

The future for the Academy is one of huge promise. We have many exciting opportunities to offer future trainees with regards to becoming successful in the financial markets. One of our primary current objectives is to offer our in-house Trading Floor Training programme from our soon-to-be-opened City of London Trading Floor - so WATCH THIS SPACE!

Futex Investment & Trading Academy

“The Ultimate Futures Trading Education”

How did you get into futures trading?

I have always had an interest in trading and finance as a career but was drawn specifically to futures trading because of the freedom it offered. I wanted the opportunity to sidestep the office politics that dominates banks as I’m definitely not one to conform!

Tell me about your early trading experiences.

Prior to joining Futex I had a mixed experience of trading. I did a small amount of spread betting, like a lot of people who join us, but with limited success. My first experience in the futures market at Futex was during the Credit Crunch so it really was a baptism of fire that enforced very fast learning. I think that period helped me a lot.

What products have you traded in the past, what are you trading now and why?

It is vitally important to be flexible in trading and to follow the best opportunities as they will not always be in the same market. However, every trader at Futex has a base market they fully understand which provides the consistent profits they seek. My base market is the Bund but I have also traded S&P, DAX, Euro Stoxx, FTSE and T-Notes. Trading more than one market at a time takes a lot of skill and experience but can reap massive rewards.

Do you use technical and fundamental information to make your trading decisions?

Both of these are important to understand otherwise you leave yourself exposed to failing to understand what is currently driving the market; a potentially expensive mistake. I lean more on the technical information when the markets are quieter but find it very hard to separate the two. Without the ability to understand price behavior, your chances of making consistent money are limited.

How do you see your trading evolving over the next 12 months?

It is important to keep pushing yourself beyond what feels immediately comfortable. Over the next 12 months I will continue to do this by pushing my trading size to allow me to achieve my goals. As I have developed as a trader I have noted that my discipline has improved. It is a skill that is often talked about but is very difficult to master, requiring repeated practice. I hope to master this over the next 12 months.

What, in your experience, makes a successful trader?

Like most other traders I would say a good work ethic (particularly at the beginning of your career), masses of self-belief, discipline and a passion for the markets are essential. However, for me, the most important trait is an ability to push yourself beyond the natural fear that you experience; something that holds back so many from making it as a futures trader.

Futex Investment & Trading Academy

“The Ultimate Futures Trading Education”

What made you decide to get into trading?

Since I was a child I have had a fascination with systems involving complex interactions. Initially I was interested in those observed in nature but as a result of my University degree I developed a deep interest in the interactions between participants in financial markets. The competitive nature in me constantly wants to find ways of beating other financial market participants by figuring out what is going on faster than anyone else.

What style of trading do you implement these days?

I take longer term views rather than very short-term scalps. I have a wide variety of strategies ranging from taking views on any one particular day to running positions over a number of weeks. I trade most asset classes using both outright positions and also relative value trades. At the end of the day I look for any strategy or opportunity that can make me money!

Have you always traded in this manner?

No. I learnt the painful way that scalping and jobbing on an intra-day basis would not work for me and as a result I was very inconsistent. I found that my strong big picture views hindered such a short-term trading style. More recently I have found a way of exploiting my macro-opinions that suits my personality. It goes without saying that the short-term trading experience I gained has proved invaluable in my current longer-term trading but I am a much more effective trader now. Every trader must be aware of his/her strengths and weaknesses and constantly look to improve every day. One of the great benefits of being at Futex is that the company is very patient with their traders.

What has been your secret to success?

Determination and dedication. The markets simply don’t allow anyone to have an off day so you have to be incredibly focused and you have to love trading. You also have to be completely honest with yourself and review your strengths and weaknesses on an ongoing basis. The ability to take onboard criticism is also very important.

What kind of misconceptions do people have about trading as a career?

That it’s easy! You hear on the news about traders at banks making millions and people then think that all trading is easy. At Futex we are proprietary speculators not market makers for clients. The rewards for this style of trading are unlimited and you also enjoy the freedom to trade how you want. However, without dedication, failure is inevitable.

Have the markets altered since you began trading?

Enormously. Markets are so much more volatile that the potential for reward is great. However, also with volatility comes strong market correlation. A good trader should be able to use these to gain an edge.

What do you think is the key to being a successful trader?

Firstly, you have to have a genuine love for the markets. Secondly, you have to be disciplined. Finally, you have to back your convictions. One of the difficult things to do is to trust yourself; this really is the difference between the guy who consistently makes money trading 2 lots and the one who can push himself to trade 100 lots or more.

Futex Investment & Trading Academy

“The Ultimate Futures Trading Education”

What made you decide to get into trading?

I have always been interested in business and the financial markets, an interest I pursued at University. Having graduated in 2006 and following a chance meeting with the Chairman of Futex, Paolo Rossi, I seized the opportunity to gain work experience at Futex’s Head Office. Within my first week on the Trading Floor I knew I wanted to stay. The atmosphere is always exciting and the markets constantly changing. There is always something new in the markets to comprehend and exploit to your advantage.

Tell me about your personal approach to the markets and what you trade today.

I predominantly trade short-term. I’m heavily involved in the markets looking to job or scalp with the occasional long-term trade. Employing a short-term trading style really works for me by preventing me from becoming too stubborn. I don’t get married to any trading ideas and reassess quickly when conditions change. I’ve traded numerous markets over the past few years but currently focus on European Equity Indices. The opportunities within these markets for locals like us are excellent.

Were you successful right from the beginning?

Not at all! It took me a long time to employ different strategies in a wide variety of different markets before I found something that I felt comfortable with. I firmly believe that you need to be aware of your personal strengths and (hopefully few) weaknesses and only then can you find your niche in a suitable market. One of the benefits of trading at Futex is being given the time and support to experiment and uncover your true potential.

What has been your secret to consistent success in the markets?

There are a few things that I believe are integral to trading consistency. Firstly, you have to be incredibly focused during the trading day and continually researching the news and views that are relevant to your market. There is no excuse for not being prepared and for not having a view on the markets you trade. Secondly, you have to review on an ongoing basis what is working for you and what is not; this takes great self-awareness and honesty. Finally, you need to know when to push yourself aggressively and also when to stop.

What kind of misconceptions do people have about trading as a career?

There is definitely a perception that it is easy and an underestimation of the amount of hard work that is required to succeed. You need to be dedicated to your trading all day, every day, with a constant focus on what the global financial markets are doing around you, why they are doing it, and an instinctive understanding of the implications of any such developments for your trading. Being able to do this and make trading decisions quickly, under intense pressure, takes huge dedication.

How have the markets changed since you began trading?

Enormously! Even though I have only been trading since 2006 I have witnessed a dramatic rise in automated computer trading. Not only do you compete daily against traditional participants such as other locals, but more and more you are interacting with black boxes! They are able to react more quickly than humans and don’t suffer from emotions. The challenge is in working out how to compete knowing that they represent an ever increasing proportion of the market.

What in your experience makes a successful trader?

You have to be intelligent. This doesn’t necessarily mean you need multiple University qualifications, but you need to be able to make effective decisions quickly, when under extreme pressure, and on the basis of multiple information sources. You must also be prepared to work hard and establish and maintain discipline every day. Finally, you have to learn from your mistakes. We all make mistakes but what separates the elite traders is the ability not to repeat them.

Futex Investment & Trading Academy

“The Ultimate Futures Trading Education”

What made you decide to get into trading?

A passion for the markets, a willingness to compete and a desire to prove myself. On top of that I think trading is one of the few completely meritocratic jobs and there is no shortcut to success. Only the best succeed and this is a big motivation for me. I wouldn't be completely honest if I didn’t mention the money factor. I think that trading is one of the few careers in which, even if financially you start from zero, you can still become big, if you have the skills. I think that if you are very good, and that’s the hard part, there is no job in the world that can give so much money in so small a time-frame.

Had you traded before joining Futex Academy?

Before joining Futex I was trading Italian equities part-time from home. I survived for the first two years before getting completely destroyed in a single trade. That was probably the moment when I decided I wanted to pursue a trading career. I didn't want to leave my money to the market; at the very least I wanted to make my money back! I think this kind of motivation is essential to be a trader. Whilst trading in Italy I didn't have the proper infrastructure I needed to trade effectively, so I decided to move to the UK where trading is a professional career and join Futex! I thought that if I failed in UK, at least I had given it everything and then I would have been able to return to Italy with no regrets.

Tell me about your personal approach to the markets and what you trade today.

I have a very short trading time frame and I try to open and close positions in a few seconds. I think that the more you stay in the market, the more you are exposed to risky events and that a small price movement is easier to predict than a big one. I think it is very frustrating to be onside a few ticks and then be forced to take a loser on that trade so I prefer to take my profits quickly, and try to get back in again at the appropriate time.

I don't use trend lines, indicators or market profile. I passionately think that the price action, in a small time frame, tells you everything you need to know to trade. I'm aware of support and resistance just in case there is a chance stops might be triggered. In the past I used technical analysis as a way to justify my losses.

I strongly believe that the more you go around talking about the market instead of watching it, the less money you make.

After a couple of years trading EuroStoxx 50 I moved to Oil and DAX in 2009. I believe it is easier to be disciplined in a faster market because if you’re not, you will be out of the business quickly!

What has been your most successful trading period?

2008, with the financial crisis, was the busiest for me for sure. It was an exceptional year with significant news coming out almost every day. There was a lot of volatility and this is what intraday traders look for because with volatility comes opportunity.

Has the financial crisis affected your trading?

I think that any time you spend in front of the computer watching the market affects your future trading so of course the financial crisis affected mine. I think we have all seen the market during a period of extreme volatility that is unlikely to be back soon. For now I believe it's very important to adjust your trading to the new market conditions. Very often I employ a trading style that used to be effective, but that no longer performs, just because I was used to make money with it. I think it's very important to be flexible and adjust to the market as soon as you realize that a strategy is not working anymore.

What has been your secret to consistent success in the market?

I think that the road to success in the market is very long and hard. To be honest, I only consider myself to be at the first step of a tall staircase. I do not really know if there is any secret to success, I just believe that there is a lot of time to spend in front of the market trying to understand the price action and I believe that you need to put more than 100% into the job if you want to have even a small chance of success. When I think that there are thousands of people every day around the world watching the market I'm watching, I just ask myself “how can I be better than most of them?”

For sure I have a passion for trading that has allowed me to overcome many difficult moments in my trading career so far. It has enabled me to find the extra motivation to move on and become a better trader and person whilst trying to avoid the same mistakes that unfortunately are made more often than once in the market! There will be always bad days and it's crucial to be able to accept them as part of the job and move on.

What kind of misconceptions do people have about trading as a career?

Some people think that you can sit in front of the market and from day one make a lot of money, just like that. Unfortunately, it doesn't work that way and that's probably why I like it; because it's a big challenge to compete with all the clever people around the world and try to profit from them. Its hard work in terms of time (watching the market), energy (trying to stay focused all the time, day after day), psychology (coping with good moments, without getting too excited as well as bad moments, without getting depressed). It's a learning process every day and it's never ending. We always learn from the market and we need to be able to absorb that information as fast as we can if we want to succeed the following day.

If you could have your time again, would you do anything differently?

In terms of trading, it would be easy to say "I would have avoided that bad trade" or "eliminated that trading behavior". However, I think that every trade, good or bad, like all the missed opportunities, has been important in making me into the trader I am at the moment. So, if an awful day can help me to be a better trader in the future, it's more than welcome, as long as I learn the lesson (and as long as that loss doesn't kick me out of the business!). So, when in the past I've done something wrong in the market, it means that at that time it was the right thing to do for me, so I would probably do it again. The only thing I regret is that I didn't start trading earlier!

What, in your experience, makes a successful trader?

Again, if one day I could call myself a successful trader, then I could probably answer this question better. At the moment, from what I have experienced, I think that the main traits I feel I need to become a successful trader are: method, discipline, self-control and patience. I also think a big passion for the job, respect for the market, humility, determination and a willingness to succeed are essential traits. Then, I think it is very important to be able to free yourself from the ‘money factor’. What I mean is that if you need to make money, it's very likely you will lose money. So I'm just trying to do what I believe is the right thing to do in the market and forget I'm dealing with money. Whenever I think how much I'm losing in one trade, I end up losing even more.

But, specifically in the intraday trading, I believe that there are three main qualities needed to perform well: the ability to read the market, good money management, and continual discipline. Unfortunately, in trading, a small weakness is not forgiven by the market and it can more than destroy all the positive effects of the strengths. That is why I feel I need to be prepared mentally, technically, physically and psychologically.

Futex Investment & Trading Academy

“The Ultimate Futures Trading Education”

When and where did you start trading?

I began my trading career back in 1990 at S. G. Warburg as a market maker on their Japanese Equity Warrant Desk. From there I moved into Broking before becoming a local in the Bund pit on the LIFFE floor in 1993.

Tell me about your personal approach to the markets and what you trade today.

For me there is no substitute for enthusiasm and preparation. Unless you have a genuine, unwavering passion for the financial markets, you should not embark upon a trading career. You also have to embrace the fact that you will have losing trades every day. You don’t have to like that fact but you have to deal with it, get over it and trade. With regards to my personal trading I focus almost exclusively on the Euro Stoxx and CAC.

How has proprietary futures trading changed since you first became involved in the industry?

It is like comparing two different worlds! I never used a chart on the LIFFE floor, whereas they are absolutely essential to trading today. The volatility is much higher and rather than competing against a couple of hundred other guys you are now competing against thousands of highly competent participants. You used to be able to relax in the pit and discuss the markets, maybe even the football from the previous night! Nowadays, it is essential to be watching your screens at all times and to be the ultimate professional if you want to beat the rest.

What kind of misconceptions do people have about trading as a career?

Many people believe that trading is easy. They think that you can compete with the other participants around the globe by turning up 5 minutes before the markets open, buy or sell, and be home in time for lunch! ALL of our best traders over the years have been the ones that put in the hours, even on quiet days, and they are always the last to leave the office – with the best P&L...

Many people also believe that all traders make a fortune. Without doubt you can make a lot of money in this business but what is the definition of a fortune? The reality is very mixed. Some traders don’t make it, some generate an income and some make very good money.

Why did you become involved with Futex Academy?

A professional trading education can make the difference between success and failure. From a personal point of view I have seen many nice people fail, both here and at other Proprietary Trading Houses, because they haven’t known how to give themselves a chance; they simply didn't understand how to prepare and what they should be doing. I know of companies that allege to train you but I don’t think they do. This has really disappointed me about the industry and has given futures trading a bad name. We decided to change this and to do it right by offering a formalised, professional futures trading education that we are proud of. Futex Academy was set up so that people can be comfortable knowing that they are getting training from a professional company. There are no guarantees of success but with Futex Academy, you will be given a proper chance.

What, in your experience, makes a successful trader?

For me there are four essential traits that I have witnessed in the elite traders at Futex: enthusiasm, discipline, strength of character and intelligence. If you have these then you have a fantastic chance of making it as a professional trader.

Futex Investment & Trading Academy

“The Ultimate Futures Trading Education”

How did you become involved with trading?

I always wanted to be a trader! I think my earliest memories of wanting to trade must be from the age of 13 or 14. I vividly remember seeing scenes of trading pits on TV and feeling a desire to be part of the buzz. It was then that I knew that this was what I wanted to do; to be a trader. I flooded the City with my CV and got a series of interviews. I chose a job on the floor at LIFFE.

Tell me about your early trading experiences.

To be honest those early days were pretty bad! I arrived on the floor without any idea of what to do. There definitely wasn’t any sort of formal training programme when I started. It was more a case of sink or swim; and I very nearly sank. The pit was a testosterone fuelled, phenomenally aggressive environment full of big guys with even bigger voices shouting and screaming. I just didn’t get it. However, when trading migrated onto the electronic screens in 1998, that’s when I started to make sense of it and eventually, after a lot of hard work, I flourished.

What products have you traded in the past, what are you trading now and why?

I have traded Bund, BTP, Gilts, Bobl, FX, FTSE and Notionel in my career to date. I currently focus exclusively on the Bund and have done for a while now. I feel very comfortable with this product; it is very familiar to me, it suits my personality, my character and also my timeframes of trading.

On what basis do you make your trading decisions?

I use a combination of fundamental and technical analysis. Significant news will always drive the markets faster and harder, and usually in the right direction! It is absolutely imperative that you remain informed and up-to-date with what’s happening in the world around you. However, the effective use of technical analysis is invaluable. I lean on the charts to assist me in identifying both profit targets and stops. I always keep it simple by using only support & resistance, trend lines and Market Profile. Any more than this is overkill and, from experience, leads to confusion. Trading in an environment like Futex’s is all about absorbing an abundance of information from various sources, interpreting it quickly and reacting effectively.

Why did you become involved with Futex Academy?

People should be under no illusion that trading is tough and making a career out of this does not come easily. I believe that training can help people progress faster than if they are thrown in at the deep end as I was all those years ago! We’ve been training people to trade futures for over 10 years and the aim of Futex Academy is to make that expertise available to as many people as possible. Futex currently receives around 100 applications each week for its in-house trading positions. Of these we select, sponsor and back between 20 - 30 each year. Futex Academy has been created to fulfill this extra demand. It is for those people who are prepared to invest in their future and want to demonstrate to us their ability to trade. If people can do that then we will back them financially to trade, as simple as that.

What, in your experience, makes a successful trader?

This is the most common question candidates ask me at interviews! Unfortunately, there isn’t one trait that guarantees success in the markets. However, from my experience intelligence, self-discipline, hard work and a general savvy are all major factors. For those guys at the outset of their trading careers the most important trait to have is resilience to knocks. Unless you can take a battering from the markets one day and yet get up the next morning excited by the challenge ahead, then don’t even consider it!

Look out for more interviews with Futex Academy's elite traders in the coming months.
Futex Investment & Trading Academy

“The Ultimate Futures Trading Education”