Larry Williams: preparation is the main thing in trading.
The trader and a runner Larry Williams draws parallels between successful trading and successful run on a marathon distance. Williams, recently in the sixteenth time successfully run marathon, indicates “pain and suffering” as on two most obvious points of similarity between trading and run on long distances.
«Everyone can run a marathon after preparation. The same concerns and commodity trading – if you were well trained, can hope for success», — he speaks. «On each distance there is a point when you feel disgustingly, but it is necessary to run forward and to put one foot ahead of other. The same is also in trading. It is necessary to do the bargains one for other, — Williams tells. – When I reach such point on a distance I slow down run a little. Similarly with trading: when I lose in the market, I depart aside and I transport breath».
Williams has attended to trade in shares in the early sixties. However after ten years its one friend has advised to it to pay attention to goods markets as, as he said, Williams, could there «weld on more». And it “has really welded on” decently. In 1987, within the limits of the world 12-month’s tournament of traders Robins World Cup Trading Championship, it could transform 10 000 dollars into 1 100 000 dollars, — achievement which any trader could not surpass still. Williams names itself «the contextual trader», using a mix of engineering and base concepts. Now it leads trading for itself(himself), attending basically to futures for treasure bonds, futures S&P 500 and exchange rate futures, working in limits from one about three days.
When he has been asked a question on a condition of currency futures markets, Williams has answered: «I do not think that currencies die. The markets always pass certain stages. That has upset funds, so it that their programs of tracking trends have not worked (as currencies became recently stable)».
Williams is the pioneer in application of the pulse indicator %R. «That work which one person has done with stochastic has made upon me impression, — he speaks. – I liked idea, but stochastic has seemed too confused and heavy for understanding». The indicator %R as it is told in «Technical analysis of the markets of futures» John Murphy, «it is based on similar concepts of measurement last the prices on closing in relation to a price range along certain quantity of days.
The today’s price for closing is deducted from the price high in a range of the set quantity of days, and this difference is divided into all price range for the given period “.” The Price for closing close highs, within a range, means that there is a powerful buying up, — Williams explains. – top of the markets – when they reach highs on closing, and a bottom of the markets – when they are closed on the bottom point. The markets reach top as buyers any more does not remain. %R allows you to see it ». At the same time, as he said, this tool should be used in the general context of the market.
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