Trading help, book reviews, risk management, and interviews.

David Borman interview

david borman authorDavid Borman, author of forthcoming book ‘The Everything Guide to Day Trading’ is interviewed by www.tradingdiary.co.uk.

1. Who are you?

I own and manage a company called Chicago Quant Research. I’ve had the opportunity to perform statistical analysis and writing for academic research and financial end users. My current project is to put together a bid for a client who wants data mining done for a trading system he has developed in Ninja Trader. I’ve also written over 100,000 words this year alone on various writing projects including financial and historical research. In the past I’ve held positions in Private Client Wealth Management, Private Client Tax, and the Off Shore Hedge Fund Business. I also Day Trade FX and ETFs for my own account.

2. What is your new book about?

“The Everything Guide to Day Trading” is about getting up to speed to open your first trading account(s) and begin the process of Day Trading as a business. Day Trading as a business is much different than how most people Day Trade. Most people say they Day Trade for profit, but in reality they trade for pleasure. Let’s face it: it’s quite thrilling to Day Trade, but difficult to profit from it (or even make a living at it!). My book is designed to help you anticipate and prepare for trade set-ups. There is also a healthy amount of risk management as well as trading psychology in the book, all with intentions of getting the reader to the point where he is having weekly and monthly average trading gains in his account.

3. There are a lot of day trading book out there. Why did you decide to write one? And why should I buy yours?

the everything guide to day trading david bormanMost of the Day Trading books out there are very technical in nature. Whether they teach Technical Analysis or Fundamentals, the books can be quite daunting to read for the beginner. Also, I’ve noticed that not many of the books speak about what it “feels like” to win and lose at day trading. Believe it or not, that is something that must be experienced firsthand to truly begin the journey of being a Day Trader and Day Trading for a living. That’s where my book is different. Not only have I been witness to hedge funds winning and losing in the market, but I’ve personally had my ups and downs. The book not only includes a healthy dose of technical and fundamentals instruction, it helps the reader with getting to know her thoughts and feelings when she’s have a bad trading day, how she might feel after a huge day in the markets, and the psychology (thrills?) of taking on un-hedged risk: this is why my book, “The Everything Guide to Day Trading” is different.

4. What experience do you have of day trading?

I’ve traded and day traded everything from Mutual Funds, ETFs, Gold, Equities, and FX. I’ve worked in the back office of an off-shore hedge fund administration company that had over 50 Billion USD under management, so I’ve seen every product, market, and hedging style imaginable from the inside. My first trade was buying gold bullion back when it was 510 USD an ounce. Right now I’m focused on the commodity currencies as well as a healthy respect for what is happening to the Swiss Franc.

5. What is your trading style?

I mainly like to focus on overnight holding periods with stops. This way I can wait until the Asian markets open, evaluate, and look for set-ups. Stops are pretty tight, as I’ve learned the hard way that things can happen pretty quickly when you’re not looking. Another thing, I don’t always have money in the market. I might sit on cash for days on end while I look for something interesting to happen. In that respect I am somewhat an opportunist. If the market doesn’t interest me, has no clear direction, or if there is just too much risk I allow myself the ability to walk away and do nothing.

6. Can you give us some quick day trading tips?

Ha! You’ll have to buy the book! Just kidding. Actually, the best advice I can give to anyone who is thinking of getting into Day Trading for a living is that first and foremost your cash is what you want. Don’t get into the situation of being away from your cash for too long. In other words, don’t be in a trade for too long. When looking at trade set ups plan on when you will be getting out of the trade and back into cash AS SOON AS POSSIBLE! Your cash pays the bills, and you can’t pay the bills with a position in an ETF, FX or commodity!

7. Do you worry that you might encourage people to trade away money they can’t afford to lose?

Not really. If done right, and with the proper risk management techniques, losses can be minimized, especially if you master the emotions related to Day Trading. You do need a healthy dose of respect for the markets though. Also, if you think of Day Trading like a business, and each one of your trades as a project to undertake, to “bid on” if you will, your trading business will naturally stay away from the trades that do not have a reasonable expectancy of making a profit.

8. What other finance related books do you like/recommend?

Well to tell you the truth, I’ve read just about every book I could on finance. I’ve read books on M&A accounting, taxation, trading, and financial modelling. The most influential books I’ve read have been Niall Ferguson’s “The House of Rothschild” and the textbook from a class I was taking at Northwestern University on banking and markets. Both gave me the background to look at trading as a business for profit. They also gave me glimpses of how if you treat your financial endeavors as a form of a “financial intermediary” and all of the risks associated with asset transformation, etc., then you will be on the right track to keeping your Day Trading business alive in good times and bad.

Feel free to email David at Chicago.Quant.Research (at) gmail.com or look him up on the web at www.Chicago-Quant-Research.com.

The Everything Guide to Day Trading will be released during January 2011.



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