So, frequently, if you are long and want to liquidate, you just wait for the bid to come in? Right.
What kinds of things do you look for in a chart? Key points such as the high and low for the week, the halfway backpoint, and consolidation areas.
Do you use charts for short-term or long-term perspective? Short term.
Short term in your case meaning? I guess as short as possible. You get in a trade, make money as fast as possible, and minimize your risk.
I've noticed that a lot of times, bonds will take out one- and two-week highs or lows by a few ticks and then pull back. The price action almost seems like a trap for the breakout players. Is that a pattern in the bond market? Yes. It always has been.
Do you use fundamentals? Whenever any important fundamental numbers come out, I use them.
Do you use the fundamentals indirectly, that is, by seeing how the market responds to the new information? Yes, but also by being the first one to trade off the new fundamental information. I know what I am going to
do if a number comes out one way or the other, and I usually have the opportunity to be first.
You want to get there before the crowd does. Are you normally right on that type of trade? Yes. You've done tens of thousands of trades. Does any single trade stand out as particularly emotional? The first 100-lot I did. It was a milestone.
What kind of jump was that for you? You tend to go from one lot to five lots to ten lots to twenty lots to fifty lots.
So, you probably went from 50 to 100? Do you remember that trade? Yes, it was a much bigger risk. The market was trading at 64.25 and a broker bid 25 for 100 lots. But he
didn't put a size on it, he just bid 25. So I said, "Sold." He thought I was being funny and said, "I'll buy the 100,"
knowing I had never traded that big before. So I said, "Well, I'll sell you 100." The market went to 24 offered
instantly.
