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AN INTERVIEW WITH A DOGGED MARKET SPECULATOR
There are winning traders who trade simply from the comfort of their home and make money in their living room. I’ve conducted many interviews with lesser-known successful traders in the past. The short piece featured here is another interview with a humble trader. He lives in West Africa. His name is Segun Oguns. He talks about his life, trading strategy and other aspects of Forex trading. I hope you would have something to gain from this interview. Here we go:
Azeez: Please tell us about yourself.
Segun O: I’m a retired civil servant, formerly working for the federal government at the ministry of finance. I was at a senior level then. Unfortunately, I didn’t consider Forex trading seriously until I was retired. It was after my retirement that I arranged for Forex training, after which I practiced rigorously on demos. Then I went live.
Azeez: What was your experience after you went live?
Segun O: I went live after a few years of successful trading on demos, but I was surprised to see that I was having losses on the live account. At first, I thought that my broker was doing something against me, but I was wrong. It just happened that my trading system was out of sync with the markets. That’s all. I realized that I was too emotional with my live account. I’d to curb the excessive emotions and apply risk management that helped me control my drawdown. In the end, I broke even and eventually went ahead. The secret is to know when to stay in the markets and when to get out. You ought to know when your system is out of sync with the markets. When the going gets tough, drawdowns must be minimized. I made mistakes and learned from them. When I was facing this challenge, I didn’t allow myself to be discouraged by anybody.
Azeez: What kind of trader are you? What strategy do you use?
Segun O: I’m a swing trader, though I don’t open new orders on Mondays as the markets tend to be difficult to predict during these days. Tuesdays tend to be more predictable. I use the SMA and the RSI to determine the overall market direction. I follow the trend – it’s as simple as that. I buy a strong market and sell a weak market. I use better RRR (risk-to-reward ratio); a minimum of 1:2, and I close my trades as soon as my exit criteria are met. I trade any pair or cross that doesn’t have too much spread on it. Crosses like GBPCAD or GBPNZD are “crazy.” One must have a contingency plan if one is trading them.
Azeez: What are your exit criteria?
Segun O: I exit when my take profit levels are hit or when the overall running profits reach my minimum target. I rarely hold a trade more than 4 days. I exit whenever I get a signal that’s contrary to my current position. I honor my stops as well.
Azeez: Do you use fundamental analysis or technical analysis?
Segun O: A combination of these 2 distinct methods of analysis may be good, but I follow only what I see on the chart. I hardly follow other types of analyses, especially fundamentals. I simply follow my rules and trade only what I see. Discipline is important. When trading, it’s imperative that you use reliable power supply and Internet connection.
Azeez: What about your position sizing?
Segun O: I use 0.01 for each $1000, therefore making it 0.1 for $10000. My stop loss is -100 pips and take profit is usually +200 or +300 pips.
Azeez: How many signals do you take?
Segun O: I trade as many signals as possible. You don’t know which trades would be winners and which trades would be losers. I’ve become adept at handling losses and profits. It’s the unpredictable markets that bring the gains needed by traders. Uncertainties have become my ally. Sometimes, it may be those exotic crosses that’ll give you the profits you want. When I trade I check what’s happening on another timeframes too.
Azeez: Would you want your children to become traders like you?
Segun O: I can’t force my children to become Forex traders. They have to choose what they want to do for a living themselves. Nonetheless, my last born, who would soon graduate from a university, would be encouraged to take up this wonderful profession. I only want him to finish his undergraduate studies before I broach this subject.
Azeez: Than you very much Sir, for granting this interview.
