Trading Simply

TraderInterviews.com recently interviewed Dick Diamond, who has been trading his own account for 35 years.   I don’t know if his interview provides me or you with any insight but I’ll post the notes anyway.  Here are his trade characteristics:

• a very simple trader
• uses only technical analysis and a combination of 5 or 6 indicators (MACD, channel index, ergodic)  
• uses the 1-minute or 5-minute charts 
• only trades the S&P e-mini futures
• will go long if at least two of the indicators move from negative to positive and short if at least two of the indicators move from positive to negative
• stays very emotionally disciplined
• never trades more than 10 contracts at a time, makes 2-3 trades a day, and only has 1 position open at a time
• enters trades based on TA but exits on his gut
• doesn’t care about fundamental news but won’t take a position before a big announcement

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