Interview with Lionel Silva - 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? For my directional trading, I currently use a combination of both. More technical analysis since I swing trade mostly directionally. Fundamental analysis is good for longer hold times, and macro fundamental analysis for determining the exposure I want to have in different asset classes. 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)? One for each portfolio: futures, directional equities, market neutral. I don’t have one for my long term investments. Those are more driven by my asset allocation model. 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? They are rather complex (maybe 8-9). The trading plans are not so complicated but the systems they are built on are. 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? Get samples of trading plans to use as templates, or get a coach. I am a big advocate of trading plans. Read more from Lionel in the Trading Mindset section ... Return to the Index of Interviews ... |
