OTC trader Rick Redmont gained his first experience trading stocks as a College student during the bull markets in 1961. "I had 10 thousand dollars, which became 20 thousand. I used a textbook Chartcraft (Inc.), but at that time no special role played what you're buying. The only thing that pissed off then, is if your friend shares rose higher than you."
"Then in 1962 I began to play. The reason I started losing was because the stock market has stopped going straight up,
- explains Redmont. - I turned 10 thousand, 20 thousand, then to 2 thousand." Redmont with humor recalls that the relatives of that year gave him for Christmas books with titles like "I went bankrupt teenager". But failure only spurred Redmond. "I realized that any thing that can double my money and then completely destroy them, it is worthy to learn",
He began to study "virtually anything that was written from 1900 to present day" about trading and technical analysis. After finishing graduate school, Redmont joined the brokerage company and remained the broker until then, until a few years ago, decided to work for myself. One of the first books that I have read Redmont, was a classic work "Technical analysis of trends shares" Edwards and Magee). However, Redmont thought "in the intellectual sense, if only it were so simple - look at heads and shoulders, triangles and rectangles, then everyone would be rich!"
Thanks to a comprehensive study material on financial markets and trading, Redmont came across the course offered by the Institute of stock market (Stock Market Institute). This course was for him the most appropriate: "It is completely based on the writings of Richard D. Wykoff (Richard D. Wyckoff). He teaches you how to use real graphics "points and numbers" (point and figure), and back to the exchange trades of the nineteenth century. He teaches the relationship between volume and price point and number. That's where I really learned to understand how the market works. Although it took me three years." In addition, Redmont indicates that enrolled for the course on the Elliott wave, the proposed C. Ralph Dystant, and learned about an indicator called %D. Now, Redmont considers himself a purely technical trader: "I use ideas Wykoff, I use Elliott wave and indicator that I use is fast %D."
currently, Redmont "98 %" is trading options OEH. Redmont conducts trading on the intraday basis, and, although holds the position of the night, in General, tries to be a short-term trader. During the day Redmont monitors five-minute, thirty minute and shestidesyatiletiyu schedules: "I watch the differences between the Dow, OEX and S&P (500). I look at different time periods. I look at the prize. I look at the line of rise/fall in five minutes and the volume on the tick". While Redmont bases his trading mainly on theories of volume Wykoff, he admits that "the system does not exist. It completely depends on the person how good he is. I stick to simple principles. I buy calls and I buy the bonds. I don't make them spread. I just need to know which direction the market is moving". Redmont protects theory volume Wykoff, saying: "they work because they represent the market. You analyze the law of supply and demand".
in order to explain the main provisions of the theory of volume Wykoff, Redmont gives a simple example: "You look at the action. The first day they sold 10 000 units, and the price rises by one point. The same thing happens on the second day. On the third day sold 20,000 pieces, and the price increases by one point. On the fourth day, sold 40,000 copies, and the growth is half a point. On the fifth day sell 80 000 PCs, and the price is not changing.
"On the third day you have to put in twice the effort to get the same result as in the first day
notes Redmont. - Central to the analysis of supply and demand is that demand goes out by itself. There is no compelling reason (except fear of getting caught "short"), in which someone wanted to buy something. But there are a million reasons for selling. When the purchase is over and the demand is satisfied, still remains a proposal. That's why prices are falling faster: because the proposal is always there, but the demand is not. Should just disappear buyers, and prices fall."
Although Redmont conducts trading mostly options OEH, he believes that the theory of volume Wykoff applicable and earthenware futures: "What difference what to analyze
- S&P, sugar, cotton, or Japanese yen? Analysis of the same." In your trading, as noted by Redmont, he observes the size correcting deviations and markets rally: "Now, code Fibonacci numbers became more popular, the market began to bind the 61.8% and 31.2 %. Now very rarely adjusted 50 %".
Based on the work of Fibonacci, many technical analysts have suggested that financial markets tend to change in a sequence which can be measured by these numbers-including 61.8% and 31.2 per cent. Redmont, however, observes: "if there is a movement upwards and then a correction, we should expect a drop in volume, and to 61.8 %".
While Redmont notes that the theory Wykoff suits him, he offers future traders to read two books of Jack Schweiger (Jack Schwager): "Magicians of the market" (Market Wizards and New market wizards" (New Market Wizards). "Read them with one thought in mind: that 40 different people have been successful doing different things."
Answering the question of what traits are necessary for successful futures trading, Redmont said: "the Exceptional power of concentration to understand the markets, and willingness to devote time learning the niche in which they operate".
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