Anton Kreil. Hedge strategies based on fundamental analysis

Anton Kreil is famous for his TV show on BBC “Million Dollar Trader”, earlier he worked as trader at Goldman Sachs, now he is partner at Institute of Trading and Portfolio Management.

1. Description of course and trade approach

The course of trading held by Anton Kreil, is based on macroeconomic, fundamental, technical analysis and risk management. His approach to trading copies hedge fund strategies. Moreover, not only the trading strategy is copied, but also the strategy of the traders’ behavior. The strategy of the hedge fund traders’ behavior is that they get their monthly income at the expense of wages, and not from trading. Salary is in the form of a percentage of the management of the attracted capital. They reinvest half of the incentive bonus from the profits again to the fund. In this way, hedge fund traders increase their capital, and at the expense of interest capitalization they will eventually earn much more after the sale of the fund than if they simply withdrew their earnings each month. To make a fortune, you need to imitate the hedge fund managers, and not listen to advertising, in which you will be told that you will earn a certain amount every day from trading. When you withdraw money, you will not increase your capital. Course begins from this.
The trading strategy taught in this course also repeats hedge fund strategies. The goal is a stable profit and moderate volatility of the account when you earn both in a good and a bad market. In the course of trading, you are taught to create diversified portfolios of long and short transactions with the time of holding spread positions during 1-3 months. The focus on medium-term trade is made for the reason that over the past decades the volatility of markets has steadily declined. The statistics on the indices, shares, including into the index, currencies, shows that 80% of the time the market is asleep.

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Day trading course review by SMB Capital

1.Course description

The trading course by SMB Capital is focused on intraday trading in the US stock market. The day-trading strategy is based on the analysis and selection of active shares, technical analysis, tape reading and risk management. If you are trading other markets, then still in this course you will be able to find useful advice on technical analysis, position management, risk. The article will describe trading strategy, basic models and trading tools.

Courses by SMB Capital will, of course, give more knowledge and skills. They involve communicating with successful traders, analyzing your trade, using specialized software from SMB, etc. But the courses are worth attending when you are sure that you want to trade exactly at this market and in this style. The article shows an effective strategy, trying which, you will be able to understand whether the US stock market and this intraday trading style are suitable for you.

2. Selection of active stocks

The search and selection of active stocks (or, as they are called in SMB, “stocks in play”) – this is the basis which the strategy is built on. The quality of your trading will depend very much on the quality of the stocks you have selected. Trade in such stocks offers several advantages:

– “stocks in play” can make strong unidirectional movements and form clear formations;
– the price movement in such stocks is cleaner, with less “noise” due to the presence of large players and less influence of robots;

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Psychology of trading. Enhancing Trader Performance by Brett Steenbarger

When I thought about the article on the topic of psychology of trading, on the one hand, I understood the importance of the topic, but on the other hand, considering the number of searches in search engines, it doesn’t cause much concern. This is very sad, because sooner or later, any trader is facing psychological problems.

I believe that the book “Enhancing Trader Performance. Proven Strategies from the Cutting Edge of Trading Psychology” by Brett Steenbarger must be read in the first place, before studying any strategies and before the start of trade. At least the first three chapters. They give the right direction in the approaches to learning trading. The vast majority simply begins to learn wrong. Most learners find teachers by chance (on advertising, advice on the forum,from a bought book). Next, they immediately wait for the “grail”, they want to see the entry points. They hope that by simply copying the strategy, they will earn money and set themselves for the rest of their lives. Question about teacher’s statement is still actively debated: if he earns or doesn’t do i. In this approach to trading, everything is wrong at all. You will not start earning, no matter how profitable the strategy was and how much money the teacher earned. If this happens, it will be a great success.

The “Steenbarger’s book” is also worth reading to “teachers”, often I hear from such people very dangerous trading tips. For example, people are categorically beginning to assert that some kind of trading style does not work and one needs to learn their style. I have repeatedly heard, for example, that scalping has died, day trading doesn’t work and it is necessary to engage in medium-term trade. Or, for example, they do not advise to “trade” on the simulators, and immediately go to the real market, and on the cheapest tool to trade the minimum volume. All this is wrong from the point of view of organizing the learning process.

The first stage of learning is to know yourself. You need to analyze your cognitive and emotional style, your strengths, and then search for a trading strategy, a niche on the market, considering your psychology. Your psychology is the foundation on which your trade will be built. It is very difficult to change psychology, your psychology will win your trading strategy very quickly if they do not match. Most do not get to trade because they are not in their niche. Books, seminars, which I saw, just skip this most important stage of training. Why did you decide that this strategy is right for you? Finding the right type of trade for you is the most important stage.

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