Successful trader Anton Kreil shares his insights and experience in an interview session at Cass Business School, City University London.
The interview covered a wide range of topics that include everything from money management, trading, to Kreil’s experience back in Goldman Sachs and JP Morgan.
Here is a short summary of some interesting points raised and discussed in the interview:
(i) Be a Self Starter and do not trust the ‘marketing gimmicks’ or ‘advice’
AK: As a trader you need to be a self starter. You have to be inquisitive and curious, you have to be incredibly disciplined and committed to your work; you have to be hungry for the markets. It takes a great deal of work to succeed in the markets. Do not buy the hype out there that it is easy. Most of those ‘advices’ are marketing gimmicks from brokerage houses and market makers.
(ii) On Fundamental / Technical Analysis:
AK: Suppose by your fundamental research you know that X is going to do very well the next year. You check the technicals and realized that your fundamental view of X is going to be wrong for a period of a few months. You then put X onto your watchlist and monitor it. This combination of both FA and TA will help you increase the probabilities in your favour, and when “all the planets are aligned,” you have more confidence to take that trade.
(iii) Anton’s take on Day Trading:
AK: The markets these days are filled with many computers, high frequency traders and algorithmic trading systems that fire huge amounts of market and limit orders into various instruments across the board. The human click trader will always be slower than the automated computers detecting price and market inefficiencies and slower in placing orders. The probabilities are against the human day trader. I don’t have to worry about the computers and algos because I take a longer term view these days – I trade and hold positions for weeks to months / quarterly.
(iv) Is the Bottom Up / Warren Buffett-Peter Lynch model obsolete?
AK: It is not entirely obsolete. Even though my approach is top down, sometimes, if you do not check the bottom details and you miss a factor of consideration that perhaps its vital for that particular investment – you could be making a serious mistake. For example: shorting a stock at intrinsic value.
(v) The Trader needs Volatility
AK: The short term trader needs to embrace volatility. He/she needs to trade volatile instruments.
Point V brings to mind the quote from hedge fund manager Louis Bacon, who said that a speculator must embrace disorder and chaos.
Catch the interview session to hear more from Anton!
Here is part 1 of the interview:
More information about Anton Kreil and his work is available at his personal website : http://www.antonkreil.com/home/