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FXTM

Do you still trade stocks? Have you been applying your method to other instruments than currencies?

SJR

I have a small portion of my capital allocated to what I deem risky stocks. Biotechs and the likes. My forex market strategy affords me a fair amount of free time, and I like to spend some of that time trawling through clinical trials to see if there is anything of interest. I am also just getting into the grain markets. I recently read a book, “Mastering The Grain Markets” by Elaine Kub, and it is fascinating. I have not traded actively yet, but I would like to soon. To answer your question, I dot really use the same strategy as in my forex account. Forex is my bread and butter so to speak, and my strategy is reliable and consistent. My trading elsewhere is more of a hobby.

FXTM

In the book you describe your trades during the first three months of 2012, which generated impressive results. Was your strategy performing in the same way before that, and how has it been doing since then?

SJR

Those three months were particularly impressive months, and it was nothing more than a stroke of luck that they were the months I decided to cover. Having said this, odd as it may seem, I wouldn’t have minded a losing month in there. Not because I like to lose money, but because I worry it comes across to newer traders like every month is a winner. To give you an idea, I generally take profit on anywhere between 30-65% of my trades over a month. This translates to about a 60-70% profitable month rate. Of course my risk management leverages these numbers, in the sense that my winning months are generally larger than my losing months.

FXTM

Your trading method is clear and simple. It seems suitable for people without a deep knowledge of financial markets and foreign exchange trading. Do you think your method is suitable for beginners?

SJR

Yes I do. This is one of the points I was desperate to get across in the book. The methods you use to trade pale insignificance to the risk control strategies you employ. A strategy need not be complicated, it just needs to win a reasonable amount every so often. If you win a reasonable amount every so often, and lose very little amount all the other times, you will be profitable.

On the other hand, many beginners overlook risk management entirely when they first start out.

FXTM

What does a newbie need to know before starting to use this method, in your opinion?

SJR

How to control their risk. That’s it.

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