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Interview with Bill Wermine - Part 2
** Trading Plan ** Q. We could spend days comparing technical and fundamental analysis, and many traders tend to favour one and dismiss the other – do you prefer one over the other? Do you use a combination of both? Briefly, why? Use a combination of both. Fundamentals for many shares in the KLSE are not fully discounted in price as compared to matured markets which gives an edge to those with access to quality, independent fundamental analysts. Technicals - I find useful for timing and risk management. Q. Do you have written trading plan detailing your approach? How would you describe it (e.g. long/short, detailed/broad, complete/work in progress)? Yes, my plan is short and simple for my investment trading. It has a goal and the means to reach the goal which is 20 % return for mine and the managed accounts. Q. On a scale of 1 (simple) – 10 (complex), how would you rate your trading approach(es)? Do you have any comments on the simplicity or otherwise of them? 1 is my style. I find simple is best. Complications lead to confusion and confusion leads to losses. Q. Many traders acknowledge that having a trading plan is a key to success – it is essential. Yet, most people don’t know where to start to begin writing one, even though they understand the basics of trading. What would be your advice to someone stuck in this situation? Attend my seminar or someone who can professionally advise on creating one. Just like if you are sick- go to a qualified doctor- don’t try to treat your self. The fee you pay from a course will save you time and money in the long run. Read more from Bill in the Trading Mindset section ... Return to the Index of Interviews ...
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