Larry Williams' tips, complete:
Certainly, Larry Williams (Larry Williams) is one of the greatest traders in the world, and he has a lot to learn from any speculator. In this article, we will reveal some of the secrets of Larry Williams’ trading, which he shared in the form of 10 tips, answering questions sent in from his viewers.
Experience is the best mentor, I also recommend reading an interview with a successful trader webmastermaxim.
How to deal with doubts
How to deal with trading doubts?
Doubt comes from overflowing with fear, you are afraid for several reasons:
- from the fact that your system is not correct enough,
- whether you will stick to your system 100%
You should start pumping the two theses described.
How to trust your trading system?
You have to prove to yourself if your system works or not? If you can prove its stability and work, it will be much easier for you to stick to the system.
You should have a stop loss not by the market, but by the system, and if you start to feel at some stage that something is not going according to plan, stop using it.
But perhaps the more important question is, are you confident to do the right thing according to the rules of your system? I can’t help you with this. You must answer this question for yourself. By answering, you can trust your system.
How to determine the trend change in the trade?
A protrade occurs when the market begins to shrink into a channel, while the volatility decreases, then the channel becomes narrower and narrower. When the trend channel becomes very small, a trend reversal is approaching. This is an axiom, because the markets are not in narrow channels most of the time, they change from small to large. The narrowing channel means there is a lot of traffic coming. Get ready for an impending breakout. The best indicator for a trend reversal is when the market closes above or below the channel.
How to predict a market crash?
This is a rather difficult question, since the indicators of overheating for each specific market are different (I mean the market for stocks, commodities, gold, etc.), but what this all refers to is fundamental factors.
When we have a surplus of soybeans, the market will decline. Almost the same happens in the stock market when interest rates and money supply change.
Fundamentals lead to market movement; charts do not lead to price movement.
There are several indicators that provide a fairly good guess as to whether we have reached the top of the market. It can be:
- data on the number of sales;
- what institutional investors are doing;
- what consulting companies are doing;
- what happens to the loops.
These are some indicators that you might want to look out for.
How do you feel about news trading?
Am I following the news? – No, I really don’t. I look at my charts and my indicators, and I would prefer working with these indicators, because I have been using them for 50 years. And I know their strengths and weaknesses. Well, in the news … sometimes very bullish news comes out and the market goes down. The next day the news is bearish and the market rallies. Therefore, I do not consider news to be a very reliable source to rely on when making decisions, and I do not believe that one part of the news is more important than another. In terms of what news I should be tracking, I just don’t give them any importance.
What do you think about seasonal trading?
What do you think of seasonal trading and the role of summer in determining future commodity pricing throughout the year?
I was the first person to write a book on seasonal trends in commodity trading. And in fact, this is a real problem! The problem is that the market doesn’t always follow the same pattern year after year. It’s more important to understand if this year’s price will fit the seasonal pattern. If so, the seasonal influence will work itself out, and will have a much better chance of being able to act. Or let’s say there is a seasonal trend for a rally in wheat in the summer, and it is – we know it. We can see that institutional investors have gone into buying a lot. Or I see that private investors are selling the market, then I can back up one indicator with a second – this is what I am looking for in order to work out seasonal trades. I will not trade pure seasonal trends.
The importance of a reliable broker?
Larry, tell us a little about the bankruptcy situation of the broker PFG? Did you get your money back, who you are working with now?
Well, we had an account with PFG, and just like everyone else, we got a little money back, but not a lot. We stand in line, and this is a long process.
At the same time, it showed the inheritance of the stock market by the American commodity market, as regulated by the National Futures Association. They didn’t come forward and take responsibility, they had to … When it happened, they could do it … But they didn’t. Therefore, you should also be careful when choosing which brokerage company to deal with.
At the moment, I trade with several brokerage houses: Knight Capital, Trade Station. This obviously depends on the stocks or commodities you are trading – these are your priorities.
(The next question I would really like to answer, because the question is built on a really important foundation.)
How to understand the intention of the major players?
How do you understand the intent of the big players when they are bluffing and when they are playing for real? What to focus on in such a game, technical indicators or fundamental analysis?
I don’t think they’re bluffing, I don’t think they’re playing for real. I think there are a bunch of scribblers out there who say that people are trying to move the market. I know these people, I have been in this business for over 50 years. I knew some of the big traders in the world, my personal friends. They don’t play the market in this way. This does not mean that someone cannot try to do it at some point. But it’s like a stable phenomenon … I think the people who write this are trying to confuse you, trying to make you paranoid in the market, thinking “they” are against me. Instead, thinking about what the market is doing is what really matters.
You must trade what is in front of you. Not all this gossip, news, not these ideas. Pay attention to your markets.
Larry Williams, how did you make $ 1.2 million out of 10 thousand?
Larry Williams, how did you make $ 1.2 million out of 10 thousand? I participate in the traders’ championship. Have you done it again?
Yes, I did it again after that traders’ championship, in a 12 month period. Starting at a little more than $ 10,000. But yes, I continued to do it.
What did I actually do, and why did I have such phenomenal success?
- because I was very lucky in the market,
- because I was completely focused on what I was doing,
- and perhaps more importantly, I used a very, very aggressive form of money management.
How to make a lot of money?
If you want to make a lot of money, you must increase your risk. BUT know – if you increase the risk – it means, at the same time, you increase the possibility of losing money.
Now, at the age of 71, I don’t really want to lose all my money, do I?
My risk is different from what I could have taken as a young man. But at the same time, if you want to make exponential profits, then you must take exponential risks. These are two sides of the coin, this is a double-edged sword.
Therefore, I want to advise, if you want to have big money – place small bets.
And in the end, I would like to tell my friends: we will meet somehow in the future, and before that – good luck and good trades!