Part 2 of 3 - Stuart McPhee's Interview with Ray Barros

Part 2 of Stuart McPhee's (from http://www.trading-plan.com ) interview with one of his mentors, Ray Barros in Hong Kong.

Starting trading back in the 1970s, Ray has tremendous experience and in this interview, he talks about how undisciplined traders can become disciplined, how to develop entry signals and his thoughts on technical indicators, how the financial crisis has affected his trading, why risk management is so important and how his trading differs between his personal account and his funds management.

Finally, he offers the best advice he could give a close friend or family member who wanted to start trading.

Category:

Education

Tags:

• Stuart
• McPhee
• trading
• interview
• Ray
• Barros

[jayangli]

@patriotsundergod r u trading? I trade and if you want to talk message us

[MADDOG531]

I never made any money trading UNTIL I used indicators! Trading purely on price action never worked for me. By scalping I have made between 1-5% every week for 6 months now. Just my 2 cents.

[patriotsundergod]

You have to understand the markets through experience. The magic indicator doesnt exist. They may be helpful in defining your rules in the beginning, and enforcing discipline with mechanical precision. In that application indicators may play a part.

[patriotsundergod]

Ray thinks that indicators are a necessary step for beginning traders to understanding how the markets work from a mechanical perspective, but they should eventually outgrow them.

[patriotsundergod]

(video notes)

Everything you can do with technical indicators you can do by observation and statistical analysis. The problem is that people stop understanding what the nature of the markets are, as this relates to the emotions of fear and greed by groups of market participants, which is reflected in the underlying data. Unnecessary abstraction from the underlying data (open, low, high, close, volume) caused by reliance on complexity tends to act as a barrier to intuitive understanding.