Secrets Of Options Trading Group Champion Revealed!
The Options Trading Championship 2007 ended quite sometime ago. Above a picture of my friends, Wei Ping (first from left) and Macolm (first from right) at the championship. Both were members of the team -The 4 Challengers, which emerged as the Group Champion. I did an interview here with Wei Ping, who was the 2006 individual champion. This year, I’m pleased to have Macolm for this interview to share with all his thoughts on trading.
Simply Options Trader: How did you get started on options trading?
Malcolm: After attending an options trading seminar
Simply Options Trader: Describe your style of trading.
Malcolm: I’m a short term Technical Trader, normally hold position for less than a week. I buy current month ATM or ITM option depend on the delta and Average True Range of the stocks. Will buy OTM options if they are cheap (few cents) and I am willing to hold for a few weeks.
Simply Options Trader: What are your favourite stocks for trading?
Malcolm: Volatile stock - VMW, RIMM, GOOG, GS, POT.
Simply Options Trader: How do you determine entry?
Malcolm: Moving Averages crosses, Daily Support/Resistance, Candle Stick Signal and Stochastic at OB/OS.
Simply Options Trader: What’s your exit strategy for winning and losing trades?
Malcolm: My reward/risk is at least 2:1. Will exit if it hits major resistance/support and mostly based on Candle stick.
Simply Options Trader: What technical indicators do you use?
Malcolm: These are my secondary indicators - Slow Stochastic, ADX. Mainly, I look at Candle stick & support/resistance.
Simply Options Trader: What single lesson did you learn along the way that has helped you the most in your trading?
Malcolm: Never afraid to cut loss and protect your capital.
Simply Options Trader: Tell us about 3 books you would recommend to traders to read
1. Japanese Candlestick Charting Techniques by Steve Nison
2. If It's Raining in Brazil, Buy Starbucks By Peter Navarro
3. A Beginner's Guide to Short-Term Trading By Toni Turner
Simply Options Trader: Give some advice to traders who have just started out.
Malcolm: Paper trade, paper trade and paper trade.
Try different strategies and settle with one that suit your own personality.
Simply Options Trader: What do you like best about trading?
Malcolm: It helps to improve my mental strength and the ability to react in split seconds.
Simply Options Trader: Thanks Malcolm and all the best for your trading!