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Great
site Kenny.
Technical
Analysis written in a straightforward way so that everyone understands.
There's
only a small few who get it consistantly correct and you are certainly
in
that group.
Chris
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Thanks
for putting this all together and sharing! BHW
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Awesome
Stuff! Kenny has shown time and time again the ability to show us direction in
these markets. Khalsa
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Kenny, I appreciate your insight and analysis. You make sense of what I can rarely see.
Thanks for sharing. Gene
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Took a gold short at 1240
just closed at 1203 :-)))))))))))))))))) ........ top call!! Gekko |
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The
Malcolm Pryor Interview
Author: The Financial Spread
Betting Handbook
The Malcolm Pryor Interview
The Malcolm Pryor Interview - Author of The Financial Spread Betting
Handbook: The definitive guide to making money trading spread bets
talks to Kenny of www.tradersdaytrading.com
Financial
Spread Betting is an extremely flexible way to trade for
short term and long term traders. It can offer a very cost effective
means of trading for serious investors, or it can also be a fun way
take a position in the markets for those that just want to take an
occasional bet to try their luck at trading in the financial
markets.
Malcolm
Pryor is a very well respected speaker and author of a number of
publications focusing on Financial Spread Betting - Kenny talks to
Malcolm in - The Malcolm Pryor Interview.
Kenny: Hello Malcolm, thank you for
talking to Tradersdaytrading.com, Before we begin, please give our
visitors a little bit of an insight into your background. Who is
Malcolm Pryor?
Malcolm:
Malcolm: I am a trader, a trading coach, the author of 3 books and 2
DVDs on spread betting and the editor of
www.spreadbettingcentral.co.uk. I run seminars on trading, both
independently and for third parties. I am an active member of the
Society of Technical Analysts in the UK.
Kenny: Much of the information and
strategies in your books is equally applicable to traditional
trading methods through regular stockbroker accounts, what got
you interested in Financial Spread Betting in particular, as a
means of trading and investment?
Malcolm:
I started off by taking responsibility for my own pension decisions
(having seen what a poor job had been done by advisors), then branched
out into a range of other trading activities. I started spread betting
in 2001. In the pension I use CFDs FX accounts and on line broking
accounts, outside the pension I only use spread betting these days.
Kenny: What do you see as being the
top 3 benefits associated with trading and investing with
Financial Spread Betting, over traditional trading methods?
Malcolm:
Tax advantages (if you win over a certain amount per year); the ease of
going short on stocks in bear markets; the ability to trade so many
instruments types in one account.
Kenny: So what are the main
disadvantages. What are the issues that we should consider
before deciding whether Financial Spread Betting is right for
us as an individual. Is there anyone that it is never going to
be suitable for.
Malcolm:
Since 85% or more of spread betting customers lose, the tax advantages
for most people are an illusion; the leverage is a double edged sword
and without appropriate risk control customers can lose not only their
original stake but much more in addition; anyone who thinks spread
betting is an easy route to riches is almost certain to lose.
Kenny: One of the main 'complaints'
that I hear voiced from traders is that it sometimes
feels as though the Spread Betting Companies 'target'
their Stop Loss levels, before the market reverses to move in
the direction that they wanted it to move in. What are your
thoughts on this:
a. Do the Financial Spread Betting companies really want us to win?
Malcolm:
This depends on how much they hedge, which varies by firm. A firm that
doesnt hedge at all is like a bookie that doesnt lay off their book,
they will lose if the customers win. By the way, this doesnt bother me
at all, it won't affect any of my individual bets.
b. Are there underhand practices that go on that can move a whole
market to where my stop loss is before reversing
again?
Malcolm: When I first started spread betting there was
quite a lot of press comment on certain practices which were seen as
"close to the edge". Unusually large spreads for short periods of time,
which had the effect of taking out stops was one press theme; another
was requoting, where you were not filled at the price that had been
quoted on the platform, and got an alternative new quote, almost always
worse. My belief is that these kinds of things are largely a thing of
the past. I trust the firms I use and they have also have excellent
help desks.
c:
What are the main things that individuals can do to protect
themselves from getting stopped out of perfectly good trades
at the market extremes?
Malcolm:
Many traders lose by using too tight a stop, so their stop will get hit
by random price movements even though their trade direction was called
correctly. In addition, you should avoid the most obvious stop loss
points because the underlying market makers (not the spread betting
firms) gun for them. As an example for a day trader, 1 tick above the
high of the day or 1 tick below the low of the day is where there are
thousands of stops and are natural targets for the market makers.
Kenny:
What
are the Malcom Pryor top tips for how to become
consistently successful
at spread betting.
Malcolm:
no different from what is required for successful trading in general;
- You need to have a detailed plan and
clear trading objectives
- You have to have at least one trading
strategy which has a positive expectancy, actually it is better to have
several each of which works best in a different market type
- You have to be able to execute the
strategies flawlessly
- You have to manage risk
- You have to develop the right
psychological framework for trading
Kenny: What are the main pitfalls.
What are the most common reasons why spread betters who fail
to become successful, lose money?
Malcolm:
The 3 biggest reasons are
- Trading
with no edge; there is no long term positive expectancy in
what they do so in the long run they lose
- Wrong
bet size; so they might have a positive expectancy
strategy, but they lose their funds before the long term edge can come
into play
- Lack
of discipline; so they might have a positive expectancy
strategy, but then they do something else
Kenny: Congratulations Malcolm, on
the publication of your new book The Financial SpreadBetting
Handbook 2nd Edition. What can readers learn from it, and what
makes it different from other Financial Spread Betting manuals that
are available?
Malcolm:
It is now 4 years since the first edition came out and in 4 years the
spread betting markets have moved ahead quite a bit, plus I as a trader
have moved ahead. As a result I have updated the Handbook quite a bit.
My focus is on practical trading issues rather than theory. I think I
have 400 trading books in my library and I hope some of the learning
from them and from a decade of spread betting have found their way into
this second edition.
Kenny:
Malcolm,
thank you once again for talking to us today, and
good luck with your new book The Financial Spread Betting Handbook: A
guide to making money trading spread bets
Return
from the Malcolm Pryor Interview to Financial Spread Betting
More Malcolm Pryor Books
|
The Malcolm
Pryor interview with Kenny of Traders Day Trading
|
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