Episode 110 ... @RollyTrader (69:09)

"George"
Native New Zealander
Now living in Australia
Brother 11 months older
Dad gave them a thousand dollars, brothers would compete buying stocks
2001 in University
Rugby friend said markets were the ultimate game
Read the Market Wizard books
You won't get rich quick
Without a trading plan, it's just gambling
Pick an asset class and stick to it
Narrow your focus, and master those set-ups
Read William O'Neil, learned CANSLIM
Copied Mark Minervini style
Worked in corporate finance, but hung out with traders all day
At old Australian brokerage firm, no one talked about charts
Started trading on his own
Moved to Argentina
Visited Mark Cook in Ohio ... watched his daily ritual, George was 26, 27 yo then
Paid Mark Cook $5-$10K to do this for a week
Mark Cook had super simple style, but day trading didn't suit George
Read Mark Minervini books, met him, Minervini gave him direction
Paid Mark Minervini for his courses
Learned a ton from the two Marks
Find someone with an audited performance record
Mimic their style, then adapt
Mark Cook traded bonds and emini only
Day trading will never work for him because he likes to make a cup of tea (not watch screen)
Two Marks are super calm traders, they do same thing over and over
Minervini scales in and scales out
Record every trade, study them carefully
Minervini discipline rock-solid, never takes a trade outside his system
Same is true of Mark Cook
Most mistakes new traders make are avoidable
Most new traders don't give trades room to work
Trade one asset class
Stick to your set-ups
Don't add to losers
Don't trade against trend
Everything comes down to risk management
Doesn't care about the index, just the stocks he's watching
Looks for strong sectors, strong companies
Always uses the chart to enter
Uses volatility contraction pattern from Minervini
Uses "Pocket Pivot" from Gil Morales (another guy he subscribes to)
He's a swing trader, not a day trader
Trades Australian stocks mainly (90%)
Has 15 scans, uses four religiously
Looking for volume and price contraction
End of day: runs scans, builds watch list
Puts on a documentary then waits for his alerts to ding
Mentions MarketSmith
Uses TradeStation and CQG
Just looks at price and volume, some moving averages, no other indicators
Looks for "bases" ... price and volume contraction through the range
Only buys uptrending stocks
Volume dries up, price contracts, he'll set his alert above
Without trading rules, you won't survive
"Optimal F" formula gives you optimal position size
Usually doesn't put more than 8% in any one position
But might put 20% in one stock
Adapt trading rules to the market since it's dynamic
Average stop is 6.5% away
Controlling risk is what all successful traders are good at
Spread on Australian microcaps is 10% alone
New traders need to trade leading names, not microcaps
Gamblers love to buy one cent stocks that go to two cents ("think they've done something right")
His exits very discretionary, watches for breaks of 20 day MA
Rarely trades short side
Best names to short are the former leaders, "most froth"
Puts trading profits into venture capital
Trading nice because you can just go to cash and relax
Running a real business, you can never relax
Twitter: @RollyTrader