George Angell outlines volatility and liquidity
The independent trader George Angell has proposed to use two moments – volatility and liquidity, which are important and have to be taken into account. He presently trades only with S&P 500 futures making only intraday deals never making the deal open overnight. Hi insists that you can never avoid volatility and liquidity as you would never have chances to trade intraday with something like oats.
As Angell recalls the early 70s: “I first bought sugar and it rose then I bought some carbon and it rose too so I bought some more carbon… Then the prices fell so I called my broker and ordered him to sell and he replied where to?” Then Angell became a trader for MidAmerican Commodity Exchange dealing generally with gold. Though he now works via computer he thinks his exchange experience is priceless.
He thinks that being short-term oriented people at exchange taught him the right times to enter, catch a trend, and take his profit and leave. Still, now he works only via computer at thousands of people at exchange never allow him to concentrate. Angell also says that technical revolution equalized all traders’ chances. He mentions that now exchange traders have no advantages over those not at exchange. “Now the mass trader benefits for masses are not able to speculate with insufficient benefits,” – Angell admits. He also thinks the practice prevails over the theory as LSS and Spyglass should be used in intraday operations up to own experience.
Angell never uses stops but action points because the stops give you the worst possibility to enter. Instead the action points signal to leave and wait for the breakout.
Angell started to work at Chicago Exchange when they invented S&P 500 contract but as with 1987 stock market collapse S&P liquidity disappeared he switched back to secured loans as with every tick there was a possibility to buy/sell them by thousands.
Angell also says that all markets have different traits and you have to know yours good enough as at different markets traders act differently. And every trader should also have a narrow specialization either in S&P or in black months, or in spreads or in intraday trading.
When asked about why many futures traders have no success Angell pointed out 3 factors: “First, lack of discipline. Second, lack of finances. Third, lack of knowledge as they don’t even get paradoxes.” He explained paradoxes by the situation where all people trade to pass by the stops and everybody is aware of the price going up at the same time not everybody can get profits.
Angell gives the following advice to the beginning traders: “Have enough finances. You also have to have a risk capital that you may afford to lose. Also, never think of money but always think of the market as money can take care of itself.”
The choice of a foreign currency trading service is not an easy task. And one shouldn’t dash to make a decision on such a service.
It is very important that you follow some general tips – today the Internet technologies give you a really unique chance to choose exactly what you require for the best price on the market. Strange, but most of the people don’t use this chance. In real life it means that you should use all the tools of today to get any foreign currency trading info that you need.
Search Google and other search engines. Visit social networks and have a look on the accounts that are relevant to your topic. Go to the niche forums and participate in the online discussion. All this will help you to create a true vision of this market. Thus, giving you a real chance to make a wise and nicely balanced decision.
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