Petri Redelinghuys

Transcription

1 Petri Redelinghuys

2 A Day in the Life of a Trader

3 An Unexpected Journey

4 TAKING BABY STEPS It all started with pips - Sitting at my dads dining room table trading a demo account I knew then that this was my path in life Started taking steps to learn about what I needed to learn - Tracking down and talking to brokers - Going to events and networking - Asking a lot of questions - Taking opportunities to sit in trading rooms for a day By hook and by crook I got into a bank - The first step to getting into the finance game - Started buying shares with my savings My first trades were disastrous

5 TAKING BABY STEPS I worked for knowledge, not for money - This is an attitude I will always have - Work for what you can learn, not what you can earn Spent some time working as a sales guy for companies teaching people technical analysis Took the plunge and went all in

6 TAKING THE PLUNGE Feeling armed and ready I joined Cratos Capital - My false impression of how easy day trading was was quickly shattered I fell into every pitfall you can think of: - Overtrading - Trading too big - Revenge trading - Trading without a plan - Not predefining risk - Trading out of fear and greed I burned all my capital in a few months

7 TAKING THE PLUNGE - HARD TRUTHS I learned some of the hardest and most important lessons of my life in that room - Don t predict just follow - The market is bigger than you - Don t forget the big picture - Don t lose discipline - Emotions can take over - Learn when to sit on your hands - Humility

8 THE HARD TIMES After Cratos I was poor and penniless I took an opportunity to sit in the Durban office of SA Stockbrokers to work for no money, but gain experience I spent 2 months writing RPE s and applying for jobs I got an opportunity to work for a Hedge Fund firm in Cape Town After about 5 months I had to come back to JHB

9 THE DREAM STARTED COMING TRUE I spent 2 years in Cape Town learning and gaining experience Started managing money Learned that I was capable of accumulating over time Built confidence in my own abilities Eventually I left Cape Town to come back to Johannesburg and joined Inkunzi

10 Things People Ask Me

11 WHAT SHOULD I STUDY? There is no real degree that you can do at varsity that will prepare you for what trading entails If you want to trade for clients you will need a recognised qualification - RPE s - SAIFM - RE s - Moonstone or any FAIS examination centre - An economics or finance degree would be helpful, but is not required I am currently doing a CMT qualification in order further my own personal development as a trader

12 HOW DO I GET INTO A FIRM? You need passion - I ve been told this a thousand times over and never really understood it until reaching a trading desk became my only option You need to come with a track record of your own trades Money must not be your motivator

13 Now that I m here

14 The Daily Routine

15 MORNINGS Wake up and check the overnight session (offshore markets) while still in bed Either have breakfast or make a smoothie - 2 eggs, fruit (banana or berries or mixed fruit), plain greek yogurt (4-6 table spoons), handful of low GI oats, table spoon of honey. blend that tasty mofo - Good breakfast helps you focus the whole day Take a shower, get dressed and head in to the office - Usually on my phone and talk to other traders while in traffic - It helps to talk to people to share information Arrive at the office, boot PC and have a coffee on the balcony

16 PRE-MARKET OPEN Have a more detailed look at what happened overnight - Look at charts and levels - Look for big stories that broke that I might have missed Go through the SENS feed to see if there is anything of interest in there - Looking for stocks in play - Developments on stocks that I am following Upcoming news events for the day

17 PRE-MARKET OPEN Check twitter to get a sense of the mood for the market Looking for general feeling of tweeters who are, to me, the best @CalConfidence

18 PRE-MARKET OPEN Go through charts on local stocks and indices - Check for levels - Developing setups - Track progress of open overnight trades Get on the phone with clients and form a game plan for the day Place orders in the auction call period Futures open

19 THE FIRST INNINGS Equity market opens - Are there any opportunities from stocks opening too high or too low (usually duel listed s or holding companies or sectoral plays) Look for opportunities and setups in stocks that are in play Continuous trading till about 11:00 Break for coffee and start thinking about food

20 READING THE PRICE ACTION Looking for: Algos Big buyers or sellers Icebergs

21 THE MID-DAY WOOSA Time to eat again - Can t eat things that will give you the slump Stand on the balcony a little bit and let my mind go - Not too much as it might not come back Cycle through all the charts again to check for progress on open trades and see developments on stocks in play Talk to other traders to see where they are and if anyone else is in the same trades I am Scour the SENS feed for something I may have missed during the morning session

22 THE SECOND INNINGS Back to continuous trading and monitoring of current open trades 14:30 is usually U.S. data time so I need to be sharp and ready to react if anything drastic happens or changes 15:30 is U.S. open - Usually some volume that comes in as offshore participants start to trade - Can usually spot some trends that happen when the U.S. comes online - Watch for reversals

23 THE FINAL STRETCH The day has been long and energy is getting low - Coffee time Mindful to stay in the zone for the last hour - Highest volumes are traded in the first and last hour of the trading day, so a lot can happen Closing auction - Place orders to catch unusually moves or get out of intraday trades that aren t already closed

24 POST-CLOSE WRAP UP Ensure all trades are logged Take screenshots of trades matched Run through trades and see where I went right and wrong and to spot trends in my own trading - Also to evaluate the success of various setups Usually some radio stuff Continue going through trades until done - 1 min line charts or tick charts help here All the time keeping an eye on the U.S. session

25 EXAMPLE OF 1 MIN CHART Really helpful in spotting intraday trends as well as support and resistance Also easy to see where you traded

26 HOME TIME Get home Make (or find) and eat dinner Relax and unwind - Occupy mind with something else other than the market - Have dinner - Shower and get ready for bed Check international markets Sleepy time Zzz

27 Favourite Setups

28 SIMPLE TREND LINE BREAKS

29 SIMPLE TREND LINE BREAKS

30 HEAD & SHOULDERS

31 HEAD & SHOULDERS

32 HEAD & SHOULDERS

33 ICE-BERG BREAKS

34 ICE-BERG BREAKS

35 Reality Check

36 STAYING FOCUSED Avoid distractions - Trading time is not social - Headphones in, music on Don t juggle too many balls You must have downtime Take the signals without hesitation Managing risk - Know what you can lose - Don t forget about exposure

37 THE SCARY STUFF This is not easy - Emotional stress and pressure Being hard on yourself The risk is not always known Whirlwind of increasingly bad trades The feeling of helplessness - Not following your own rules - The market is so much bigger than what you are

38 MANAGING THE BAD TIMES This too shall pass Positive self-talk - Self belief Your system can save your sanity Taking time off Remembering that you are a person Being wrong is ok The outcome that you received from any given decision that you have made (or action you have taken) is nothing more than a perfect reflection of where you are in your development and what you need to do in order to be better

39 WHY DO IT ALL? It s in your bones The perfect trade This time it s different If you can master this art you can attain true freedom The last frontier

40 This is the only thing in the world in which your effort in your own self development and personal growth, on almost every level of your life, is rewarded financially.

41 Thank You traderpetri.blogspot.co.za