Response to http://site/blog/403594.php
I, I'm sorry, when I see - "Trade in Time", I immediately feel like when I communicate with Seventh-day Adventists. They also have time - a key point in their sermons. :-)
Once again, he firmly established himself in the opinion that "Trading in time", namely - do not cut losses, often fix profits and average - is the quintessence of what and how people lose money.
So there was enough capital stock for averaging. Most likely due to a very small share allocated to the System initially - the reserve was good for averaging.
But if the reserve is not good, then the poker will happen on the equity.
And in instruments that are more significant in the portfolio than the System, the depot load should initially be larger - otherwise the profit is so small that trading does not pay off.
And this is also one of the problems of averaging, ladders and "locking" unprofitable positions - for all these games you need to have a very large depot margin, and this greatly reduces the overall efficiency of such trading. But the vast majority of positions can be fixed in plus. In plus, but very small and for a very long time of waiting for it to return to the profitable zone. And this is what is called “time trading”. As with any averaging and tactics of working with a small take profit and without stops, the percentage of losing trades is low and the probability of a very large loss at the averaging stage is not great and most of the time you are in “paper profit (after all, the loss seems to be not fixed), but as a result, sooner or later, the “poker” arrives anyway, because even with minimal initial entries into a position, sooner or later the money runs out to average out. And if you do not average, then the position remains so small in size that it seems like there is some money on the account and in the position, but there are so few of them and the effect of them, by and large, is so small that you can be in this state until the end of time . And it seems like it didn’t reset to zero, and you continue to trade time, but, unfortunately, it is infinite, and our capital and life are finite.
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This article is an adaptation of Time Trading for people who don't want to give up on forecasts, leverage and stop losses. I think it worked out well.
… When one wants to convince, true faith and
cheating go hand in hand
hand.
Eric Emmanuel Schmitt. Gospel of Pilate
As you know, the class of strategies Time Trading is the only one of the strategies of temporary arbitrage, which in theory almost completely protects the trader from the complete loss of the account, and in practice shows a solid profit. But talking with numerous "billionaires" - those who abandon Time Trading in favor of market predictability, shoulders and stops, I realized that they don't hear. Asking the question " why is that", I realized that I was not speaking their language. Here one could recall the words of Stephen King:
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I borrowed the term “Time Trade” from an allirog, I plan to take his courses in the future. Earnestly.
At one time I asked a question about displaying deals on history
A kind person, after I already scored on this question, gave me a link to quikluacsharp.ru/product/indikator-moi-sdelki/
I have been postponing my trades for 2 days and finished today. Everything went relatively easy.
Why do I need this indicator?
Now I can see my trades made within the last two years in the quick. After reviewing these transactions - I came to the conclusion: do not rush to close unprofitable positions, even if you really want to and you decide to do it now, but you can wait
Once upon a time, I was just learning how to make deals, buying low-liquid securities, then I decided to get rid of them. And got rid of. Now, looking at the history, I would have acted differently - I would have set a take profit before canceling and would have forgotten about them
Here are screenshots of these deals:
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Yield on Comon.
I hasten to inform fans of my work :) that Komon has finally fixed the bug with the display of options in public strategies. In this regard, on Monday I resumed the Covered Intraday trading system on my public account (statistics have been kept since August).
As a result - the account again took the FIRST place in terms of profitability for the year among ALL strategies displayed on Komon, in all markets -
Description:
Covered intraday strategy
This is a strategy that combines the unique capabilities of two closed market castes - intraday scalpers and options traders!
This is a strategy that, during the first month of open public on-line testing on the Comon.ru website, broke all the records of this resource in terms of profitability!
This strategy is the most ideal practical technique and the pinnacle of the author's philosophy “Trade in Time”!
Duration: 18:59:20
Video quality: PCRec
Spoiler: Covered Intraday:
What tasks does this course solve?
- Would you like to make money on the market, regardless of whether it is growing or falling or standing still?
- Would you like to make money in the market without being able or even trying to predict it?
- Would you like to have potentially unlimited profits with always limited losses and at the same time not worry about setting stop losses correctly?
- Would you like to be able to be distracted by the market only when you have time for this, but at the same time constantly have directional market positions with covered risks, even when you are not near the monitor?
- Would you like to constantly experience psychological comfort when trading, feel like not a game, but a hunter, systematically placing snares and making a profit in case of any unexpected market movement in any direction?
Course program
1st 2nd: Theory. A detailed description of the "Covered Intraday" Strategy
3rd day, 4th and 5th day: Practicum. Online trading according to the "Covered Intraday" strategy together with the Author of the strategy, with the possibility of real earnings
Requirements for listeners
- Have a practical basic understanding of options trading and/or attend the webinar “Time Trading with Options”
- Have a working account on FORTSE, for those who want to earn on the workshop with their own money (others will be able to watch the Author's online trading).
Spoiler: Options Time Trading:
Course Benefits:
- This course will allow you to enter the most interesting and multidimensional world of options not alone, but hand in hand with an experienced mentor-practitioner.
- You will be able to quickly master the practical ways of trading options directly in relation to FORTS (and not the abstract theory of trading options in other markets, as described in all available literature on these topics and which is not always adapted to the practice of our market).
- You will receive basic knowledge about options and key option strategies in the most accessible form, as well as the opportunity in a live dialogue with a mentor to immediately analyze the moments that are incomprehensible to you.
- You will be able to set up online workplace under options in trading terminal and make real deals with options, as well as learn how to use analytical option software.
- You will learn the key nuances of working with options that unprepared beginners usually face and ignorance of which leads them to serious problems and a lot of wasted time and money (features of calculating GO and variation, clearing and expiration, falling theta, pitfalls of buying and selling volatility, features of the psychology of options trading and the complexity of restructuring consciousness after a two-dimensional spot market into a multidimensional options world).
Who is this webinar for:
- This webinar is for that market majority who has been trading on the exchange for several years and has been losing money all this time or cannot reach a positive stable profitability.
- This is a webinar for that majority of the market who are unsuccessfully trying to improve their exchange results by consuming information from specialized exchange media, financial literature and from the lips of all kinds of gurus who promise to teach you how to understand and predict the market.
- This webinar is for the market majority who constantly monitors all economic news, watches dozens of charts in search of patterns, uses Technical and Fundamental analysis, and yet cannot bring their exchange account to a stable plus.
- This webinar is for the majority of the market, which gradually comes to the understanding that if the majority in the market loses money, then for success you need to at least stop thinking and acting the way the majority thinks and acts.
What will you get after completing the course:
- You will understand why options are the most ideal way of “Time Trading” of all existing methods and trading instruments in all financial markets.
- You will learn the basics practical application"Time Trading" and options trading specifically on FORTS.
- You will receive the necessary theoretical and practical base in order to be able to fully understand the next author's course - "Covered Intraday" - a strategy that will turn your idea of the significance of market forecasts, risks, and profit expectation. Which will allow you to turn from a potential victim in the market into a hunter and profit from any market movements without trying to predict it.
Webinar program "Time trading on options"
Day 1 (emphasis on theory):
1. Introduction to the theory of options:
- Futures and options on futures. Option life. Strikes. Put and Call.
How is the price of an option formed? Internal and external cost.
- Volatility and theoretical price.
- Greeks (theta, gamma, delta, vega).
2. Options as a special case of Time Trading:
- Options against stops. Buying volatility. Advantages and disadvantages in practice.
- Options vs Market Forecast. Selling Volatility. Advantages and disadvantages in practice.
- Psychology and multidimensionality of option trading.
3. Basic option strategies.
- Bullish call spread. Bearish call spread. Put spreads.
- Proportional call and put spreads.
- Inverse proportional call and put spreads.
- Strap and Strip.
- Straddle. Buying and selling.
- Strangle. Buying and selling.
- Butterfly. Buying and selling.
- Condor. Buying and selling.
4. Answers to questions. (21:00-22:00)
Day 2 (emphasis on practice):
1. Preparing the “Quik” workplace for options trading:
- Options board.
- Charts and order books.
- Charts of volatility and theoretical price.
- State of an account. GO. Variation.
2. Practical features of options trading:
- Calculations of civil defense and variations. Daytime and evening clearing. Equilibrium point. Desk work.
- Liquidity and theoretical price.
- Theta and volatility. Location for entry point.
3. Program "Option Analyst":
- How to enter data into the program.
- How to work with the program.
4. Workshop:
- Tracking and analysis of information on three charts and the Options Board.
- Submission of applications.
- Making real transactions online.
5. Useful information:
- Synthetic spreads. Put-call arbitrage.
- Smile of volatility.
- The rate of fall of theta from the strike and expiration date.
- Brief promotional information on the paid course “Covered intraday” - as the most ideal option strategy of “Time Trading”, which allows you to consistently earn in any market condition without the need to predict the market and without temporarily sticking and hatching prices.
6. Answers to questions.
Trade in time.
Part 1.
This article completes the trilogy of articles (the first two articles "All about the Myth of Market Correlations" and "On the dangers of market forecasts" can be found here http://mfd.ru/forum/poster/?id=425) dedicated to how NOT to to think and act in the market if you want to earn stable money on it and in what direction you NEED to start thinking and acting in order to create your own style of stable earnings in the market. This article will be primarily devoted to HOW IT SHOULD be done and will largely consist of practical advice and trading recommendations, which many readers asked me after reading the first two articles.
Immediately make a reservation, this is not the Grail and not a panacea. There is no and cannot be in the market of trading systems that will earn always and everywhere with a 100% probability. Each system has its own black swan, but the key issue is the probability of its occurrence and the final cost of its arrival for your account.
Therefore, I cannot promise you that after reading this article you will immediately start earning for all times and for all cases of the market, but you have a very good chance of understanding how to start earning in 90% of cases in the market. And at least after reading this article, you will definitely understand how to stop LOSSING money with a 90% PROBABILITY. And this understanding I GUARANTEE you. And this is not enough, agree?)
So let's go. First of all, I will briefly repeat the main thoughts outlined in the previous article in order to smoothly introduce those who have not read or not very well put into memory the thoughts I previously formulated:
1. The market is chaos and cannot be predicted.
2. Traders certainly in their trading assume the future movement of the market, but this is not a forecast, but a fortune-telling in a 50/50 probability field. Therefore, if in his trading a trader makes the forecast the basis of the result, he most often loses.
3. The root of successful trading lies not in the ability to correctly predict the market, but in the sequence right action a trader both with a come true forecast and with a failed one.
4. This can be done due to the fact that although the exchange has many similarities with roulette and other gambling games (in particular, the probability of the market rising and falling from each point is 50%, which cannot be predicted as well as the loss of chances in roulette), but there are KEY and PRINCIPAL differences that, when understood and CORRECT USE make it possible to turn the exchange game into a stable source of income, unlike roulette, where this is impossible.
5. These differences are that on the stock exchange, each of your bets is not finite, but always extended in TIME and at the same time - stock fluctuations are always amplitude!
6. Therefore, on the stock exchange, even if you did not guess correctly with the forecast, you always have a chance to WAIT until you are right. That is, you can EXCHANGE WAIT TIME for getting the OUTCOME YOU NEED at the rate (on price movement in the right direction).
7. Accordingly, you should build your ACTIONS on the stock exchange in such a way that your inevitable positive result is always only a function of TIME, and not a function of price movement (and, accordingly, does not depend on the accuracy of your forecast)! This is the KEY to successful trading.
8. As for the forecast, its function is secondary - An accurate forecast should only ACCELERATE the appearance of profit on the account (that is, affect only the TIME to achieve profit). But an inaccurate forecast should never lead to losses. It can only DELAY YOUR PROFITS IN TIME.
As you can see, the word TIME is the key word in all these logical constructions, and I constantly focus on it. Therefore, it is no coincidence that I titled my trading principles "TRADING IN TIME".
As for the theses themselves, I gave their detailed justification and evidence in a previous article, whoever wants to can read them again. The key thesis, of course, is the initial one, that the market is Chaos. As I found out (thanks to readers) already AFTER writing an article about forecasts, where I derived and proved this thesis in three ways, it turns out that at least two other well-known Western financiers have stated the same postulate before me. These are Bill Williams (author of the "Trading Chaos Theory" and Williams indicators) and Bruce Babcock (author of the book "Chaos Theory and Market Reality"). I was gratified to realize that I wasn't the only one in the market who came to this conclusion. And although my almost 20 years of experience in the financial markets speaks for itself and always serves as a self-sufficient support in all my judgments about the market, nevertheless it is nice to be not alone in my views. By the way, we agree with Babcock and Williams ONLY in diagnosing market misconceptions about market predictability, while the conclusions practical advice from this we three make DIFFERENT. And this also makes me happy, but for a different reason - I don’t want to be secondary)) Nevertheless, I brought the authority of these two people to help precisely in order to force as many of my readers as possible, if not to make sure that the market is this is Chaos, then at least treat this postulate with as much respect as possible. AT LEAST - as a starting point for understanding my further reasoning. Even if you are not ready to agree with the idea of the unpredictability of the market, then let's at least ASSUME that this is so - and perhaps my further constructions and practical conclusions will seem valuable and interesting to you REGARDLESS of whether you believe that the market is Chaos or not . Let's try?)
STOP LOSS.
So, let's get down to practice. The biggest problem in practice is when the correctness or incorrectness of the forecast is put at the head of the exchange result. And unfortunately, it happens all over the place. All exchange seminars, all market analytics are literally saturated with logic: if you guessed (correctly predicted) the direction of the roar, you earned, if you didn’t guess, you took a stop loss, that is, you lost money. This is the answer to why most people who are consumers of stock seminars and stock analytics are LOSSING money in the market. And as you know, 90% of market participants lose money. So I'm telling you why this is REALLY happening. Not because they have not yet learned how to predict the market (the market is chaos and cannot be predicted). But because:
Traders turn their STOP-LOSS into REAL losses on their account by their STRONG inability to predict the market.
Do you understand the mechanism? Have you ever wondered - HOW exactly is a loss formed on our account?
Wrong forecast generates a loss? NO. A forecast is just an assumption about the future movement of the market, it is NOT an ACTION on the account.
Not correct input into the market forms a loss? NO. Wrong entry - this is just a situation when, immediately after your entry into the market, he went in the wrong direction. This is not yet a loss, because the market is moving chaotically and NOBODY is forcing you to close your account in the red.
MINUS ON THE ACCOUNT IS FORMED BY ONLY ONE - your ACTION to take STOP LOSS!
It turns out that it is this STOP-LOSS Key moment, the WATERSHIP that separates the profitable trade from the unprofitable! Indeed, in order for your account to grow, you need to make profitable transactions, no matter how trite it may sound. What is a stop loss? This is a NEGATIVE transaction, that is, an action - the exact opposite of growing an account!
By a strange irony, even in the name "stop loss" - there is a big mockery. According to the direct translation, this action should LIMIT your loss. And in fact, this is the ONLY action that your loss FORMS!
And indeed it is. After all, why in theory is a stop loss taken? In seminars, they teach that if the market goes against you, then you must admit defeat and take the loss before it gets even bigger. Have you ever wondered if this postulate is true? Is it that the market has moved against you by 1% or 2% (or where it is usually taught to take a loss) - does this AUTOMATICALLY mean that the market will go further against you by 3% and 5% and 10%? Is it? Have you ever encountered a situation where as soon as you take a loss, the market takes it and, as if mocking, immediately turns in the direction you initially need? Familiar? Do you know WHY this happens? Because the market is unpredictable. And the probability of it going up or down from EVERY point is EQUALLIBLE. Therefore, there is NO reason to take a stop loss based on the assumption that the market will ALWAYS go further against you if you do not take this stop loss. Realize, YOU ARE ALREADY in position. You ALWAYS have a 50% chance that the market will go your way. Therefore, all that is required of you is to WAIT for this moment and take PROFIT. And if you start to cut moose when the market moves against you - then you CONSISTENTLY with your own hands, without ANY reason for that - you will kill your ACCOUNT. Do you understand? WITHOUT ANY REASON!
Well, suppose you took your moose. And then what? Then AGAIN get into position, right? (well, you will not leave the market). And as soon as you get into position again - you AGAIN, in terms of future market movement - will find yourself in the same situation of 50% probabilistic movement both IN YOUR side and AGAINST you, in which you were at the moment of taking the moose. With the exception of one "small" detail - you have ALREADY reduced your account by the size of an elk. So was it worth it?
I'll even say more:
ANY result in the market is formed by only ONE - the moment of EXIT from the position. Not an entrance, but an EXIT!
Remember, this is VERY important for our further reasoning. Both plus and minus on the account are formed ONLY ONE - the moment when you decide to CLOSE the deal. If you close the deal by stop loss, you have formed a loss, if you close by take profit, you have formed a plus. Everything else is not important, it does not affect the result.
I know people who constantly and very much talk about the market, always up to date with all the news, constantly make forecasts for macroeconomics, thoroughly understand the financial kitchen and even - quite often make CORRECT assumptions about the future movement of the market and moreover - stand in the RIGHT direction. But they close most of their transactions in a MINUS!
And just like that, I know people who don't have economic education, know almost nothing about the market, often get up at a very bad time in the wrong direction. But they close most of their deals in PLUS. Almost nothing can shake them and force them to close in the red.
Why is this happening? Why knowledge and forecast do not determine the exchange result? Because the result of the account is determined only by the ACTION to CLOSE the position. All the rest is unimportant.
If you predicted the market incorrectly and it went against you - it's NOT IMPORTANT. It's not a loss, only if you don't take it YOURSELF. And you DO NOT NEED to take it!
TIME vs. STOP LOSS.
Why not? Because the market is not a roulette wheel and not a sweepstakes! If you bet on red in roulette, and black fell out - EVERYTHING. This is the end. The bet is lost and nothing can be returned. If you bet on Zenith's win in the Totalizator, and Spartak won (St. Petersburg people, don't break the monitor, this is just an example)) - the bet is lost and nothing can be fixed (just wait for the next game and bet NEW money). But if you bet on the growth of the market (bought a share), and it went down - NOTHING is lost. This is just a TEMPORARY decline and you can turn the TIME factor to your advantage. And unlike roulette and sweepstakes, unlike all other games of chance, only the stock exchange has a TIME factor.
And only TIME gives us the opportunity to get away from the linear predetermination of our rate, due to the forecast!
Accordingly, TIME gives us a CHOICE - take a STOP LOSS or take a TAKE PROFIT!
In other words, time gives us the opportunity to INFLUENCE the OUTCOME of the bet, even if the forecast did not come true right away!
If you do not use the time factor, if you automatically take a STOP LOSS with an incorrect forecast (if the market immediately goes against you) and do not even give it a chance to go in the right direction after some time, then you yourself, BY YOURSELF, TURN OFF THE TIME FACTOR and reduce the exchange to the level of ROULETTE!
But if you DO NOT PLACE STOPS, then you use TIME as the main ADVANTAGE of the exchange, in the end you turn OFF the similarity of the exchange with gambling and turn the exchange game into a consistent WORK to accumulate capital.
But how to make it so that it always works on the time factor without stop losses? Is it even possible? Does anyone work like this?
How NOT to take STOP LOSS
I will give an example from life.Here I have a friend. He has worked as an asset manager in a bank for many years. Also manages client portfolios. Has a consistently positive result, remarkably spent his bank through the 2008th year. In management - several billion rubles.
As we had such a conversation with him. I'm asking:
-How do you work?
-In terms of?
-Well, how do you get into a position, on the basis of what?
-Based on market forecast. If I think that a stock has growth potential in a certain time period, I buy it and wait for growth.
-Good. And if it falls after the purchase, what do you do?
-Nothing.
-And if it falls by 50%?
- Still nothing.
-So you don't take a loss?
-What are you? Never. I NEVER take losses.
-What do you say to clients, bank management?
- And I tell all potential clients from the very beginning the same thing: I guarantee you that we will have a profit and it will certainly exceed the lower threshold of efficiency. But I just can not guarantee you one thing - the exact TIME when it will be. Yes, we will have temporary losses, this is normal. But the worst thing you will need to do in order to survive these losses is to simply WAIT.
-And they agree to it?
- Who does not agree - I simply do not work with them. Believe me, my results speak for themselves, I do not run after clients. It is they who "run" after me to offer money for management)
Ask yourself - why did you come to the stock exchange? play? Or EARN?
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A review of I. Korovin's "Covered Intraday" course is definitely a difficult job, since this trader is undoubtedly very titled and has a huge store of knowledge that cannot be compared with my baggage in the field of exchange trading, especially since Ilya Korovin is considered one of the best option traders in Russia, and I myself have never traded options and have only theoretical ideas about them.
However, this will not prevent me from making an objective review of Ilya's course and after reading it, you will understand why this is so!
Let me remind you that the full list of reviews and reviews can be found here:
As usual, I will first present the composition of the course. It consists of 5 webinars that it includes + various additional materials:
Each webinar lasts more than 2.5 hours, so the total amount of material is more than 15 hours, of course I didn’t watch it “from and to”, I watched about 6-7 hours in total out of all 5 webinars.
The price of this material: 58,000 rubles, the price is high and is clearly designed for people who are going to open an account not for 10,000 rubles.
I will not do a detailed review of the webinar in this situation, I will just try to highlight the key, important points that caught my eye, first of all, these are the points that relate to the "training components" of the course.
The core of the course is learning how to use the straddle in trading. A straddle is such an option construction that, under certain circumstances, allows you to earn money on any market movements, i.e. both rising and falling! And here the first disadvantages of this video course begin, for those who purchase this course today in 2015-2017!
In order to understand a little how it works, I ask you to read the article about options, if you do not know what it is:
The classic straddle involves the simultaneous purchase of a call option and a put option, it turns out that we pay a conditional $ 10 for options, in the hope that one of the options will bring us more than $ 10 (if the price goes up, then the call option, if it goes down, then the option put) Example scheme:
I think from this picture you understood that if the price does not go up or down, we will not earn anything!
Ilya in his course talks about a synthetic straddle of options and futures, but this does not change the essence. That's the whole point, that Russian market became very little mobile, and all such strategies no longer bring those profits and do not provide such opportunities as they did in the past! Look at the chart of the RTS index, which is given as an example in this course:
Starting from 2012, which is marked with a red line, the price has been moving very “weakly”, the volatility has fallen a lot, and if you look at the end of 2016, the price completely froze for 4 months and stood in a very narrow range. However, of course, no one prevents us from using other markets, but still it is about the RTS that we are talking about in the course.
Now I would like to evaluate the course itself in terms of “learnability”:
- In the course of Ilya Korovin, an extraordinary amount of water, i.e. over text slides, without any sensible explanations and visual background, just words. For example, 22 minutes about your course and its benefits, and all this with one slide, where there is nothing essential, only words. Why do people need this? They have already bought your course, tell the essence, and you need to tell the benefits before buying!
In general, this applies to many moments of the course, where Ilya is extremely uninformative! The whole first webinar as a whole is a lot of water and an introduction to the essence, without any specific actions. - The second significant disadvantage of the entire course is the extreme lack of illustrations! There are very few of them! This is especially true of the second part of the “covered intraday”. The trick of the strategy is that we create a straddle, and then we start trading intraday futures (classic trading that everyone understands without stock options). Here in this part of the course, there are almost no pictures at all, a text description is given:
Personally, I can’t understand at all how you can teach trading without showing charts, but it turns out you can quickly throw a presentation and sell it for 58,000 rubles. - Very often during the course, Ilya tells some things that are extremely difficult to understand at all, because he does not back them up with a schedule or any kind of presentation. For example, in this screenshot, Ilya says:
"V this case we can turn the straddle into a butterfly, a closed butterfly, when we initially limit our gains and losses.” On the one hand, Ilya Korovin did not tell us anything complicated, but if a person poorly understands the topic, then he will not understand anything at all! Because only a person who is at about the same level with the listener can perceive such information by ear! Ilya, like many professionals in his field, sometimes forgets when communicating that those things that seem obvious and simple to him are not at all obvious to unprepared listeners. - From the third webinar in the course, the practical part begins, in which Ilya tells the specifics of his strategy and shows what exactly needs to be done! However, due to the rather "difficult to understand theory without pictures" in the first part of the course, it is very difficult to properly connect these parts together! After watching the third seminar, I had a feeling of misunderstanding, the same as after the first one, although there was always a powerful confidence in Ilya’s voice that he was saying, but this confidence was somehow not transmitted to me, just because of this weak connection and small informative text without pictures! After that, the QUIK terminal is even a little scary:
In summary: if you try to express an opinion about the covered intraday course, you will get something like the following, there is no doubt that Ilya Korovin knows what he is talking about, he is well versed in options and all their thetas, gamma and other components that have important role in their trade. However, Ilya is not good enough at presenting material to people, lectures are uninformative, very poorly illustrated, which is simply necessary and necessary in trading. I understood very poorly what is the connection between the main idea of the straddle and the intraday, I could not understand what is the advantage of using the straddle exactly together with the intraday, that is, the profit does not increase or decrease in any way, in other words, if you trade intraday poorly, then the straddle will will not help. If you assemble a “crooked” straddle, then intraday will not help you either. It turns out, in fact, Ilya tells two separate and independent things that seem to be connected, but if they are torn apart from each other, nothing will change.
To summarize in the form of an assessment, then given the price of 58,000 rubles for this course as of January 2017, I would not advise anyone to take this course, it is not worth your money. This course reminded me a lot, in which there are a lot of buzzwords and interesting conclusions, but no practicality!
When and how did you earn your first million dollars?
The path to the first million was very difficult, by that time I managed to go bankrupt 2 times and several times go very close to this state. Moreover, the ruins were not associated with market crises, but with their own mistakes. And market crises just helped me, for my psychotype they are the most comfortable.
It was during the crisis, in the fall of 1998, that I laid the basis of the start-up capital for the future million, having invested all my money (and the money of the company I manage) in Gazprom shares at a price of 5 cents. Sold in 2001 10 times more expensive. But it was still far from a million. In 2002 I went to free swimming from the position of director of a stock company, in order to fully concentrate on trading, freeing himself from administrative work. My wife called me crazy, but I told her: don't worry, by the age of 33 you will be the wife of a dollar millionaire. At that time, I only had an apartment, though a very good one, and $20,000 in starting capital. And I was 28 years old, that is, I was going to increase my capital by 50 times in 5 years.
At first, everything was very bad, because a year later the Yukos affair began, the market collapsed and lay at the bottom for almost 2 years. I really "flew" on Yukos, and I had to slowly eat up capital. But it was a great time to improve their own trading skills, and indeed for personal growth, as happens with us in any difficult time.
The trends ended, I began to come up with all sorts of non-directional trading systems, which eventually led me to training courses a few years later. But then I didn’t think about it, but just tried to survive in a worthwhile market. And still I waited. Waiting for a new up-trend. And waited.
The boom began at the end of 2005. The state turned to stock market. The reform of RAO "UES", the preparation of the IPO of Sberbank, the IPO of "Rosneft" has begun. A lot of money came to the market, and we got the second phase of the up-trend, the first one was back in 1999-2002. At this stage, primarily thanks to the reform of RAO UES, I earned my million dollars. It happened at the turn of 2006-2007, just in time for 33 years, I completed my task.
The ad replicates the image of a successful trader trading a couple of hours a day, and even then from a laptop, on the beach under a palm tree. You live in Kaliningrad and work, as I understand it, quite a lot. What's the matter? You just don't like hot climates?
In fact, the advertising images of traders, like many other characters in other professions, are very far from real ones. Although there are some overlaps. I travel quite a lot, at least 3 times a year I travel with my family to different countries. I take my laptop with me and sometimes I trade from the beach or from the top of the mountain or from the deck of a transatlantic cruise ship crossing the equator (this is not a figure of speech, there was once such a case). But most of the time I work at home and spend at work up to 18 hours a day.
The fact is that I am far from the classic example of a private trader: I have about 80 clients from eight countries whom I advise on the management of their capital. We do not yet have direct licensing of private managers, so we have to use such schemes to make everything legal. Therefore, the load is very large.
Many of those who have been in this business for many years do not understand at all how you can manage 80 accounts at once. But, firstly, now I already have assistants from among former students who showed good results. Some of the accounts they manage. Secondly, in the last 2 years I began to use robots, but not for making trading decisions, but simply for automating operations.
Of course, being just a private trader managing own capital, you can trade more relaxed, including from the beach. But I have more serious ambitions. Now I am on the way to creating two hedge funds: one in Russian jurisdiction and one in foreign, in the Cayman Islands.
In general, I am a teacher in the second place, and in the first place - a trader and manager. My trick is just that I'm a playing coach, and not some kind of teacher who traded a little and studied the theory. And I teach practical things, including showing a lot of public real trading online in different formats, which almost none of my fellow teachers do.
There is an opinion among stock players that those who cannot trade profitably go to teach. What is your motivation as a teacher? Income from education or something else?
About ten years ago, I thought in exactly the same way: whoever does not know how, he teaches, who knows how, he silently does. But about five years ago there were two major shifts in worldview. Firstly, this is due to age: the milestone of 40 years was approaching, and the motivation in the form of increasing the amount of money earned ceased to suit me. Private traders working from home are sorely lacking in socialization. We interact with the market, and this is a soulless object, although thousands of people make transactions on it. But precisely because of the large number of people, their actions in the aggregate represent the chaos with which each of us communicates. As a result, we compete only with ourselves, challenging only ourselves. On the one hand, this is good, but on the other hand, it is difficult, because you do not communicate with anyone, you do not create anything, you only make new money out of money. You have no clientele, no partners, no employees, no visible results of labor, except for a growing account. This problem sits very deep in the brain of every individual trader who has been in the market for 10 years or more.
On the other hand, I have always envied with white envy people involved in science and art. They create something that did not exist before them. They make discoveries, create works of art. I watched a lot of interviews of these people and regretted that I did not have any gift that allows me to create. As a way to join other people's talents, I even went along the path of helping creative people with my money. He helped publish a book to one philosopher and was going, having reached a higher material level, to sponsor music and films.
But then, as is often the case, things changed. In 2013, I was asked to write an article for a trading article competition. The fact is that for many years I was one of the top authors of an Internet forum where traders communicated. There were always some disputes, dialogues, and my remarks caused a lot of responses. The leaders of this forum knew that I could articulate thoughts well, so they suggested that I write an article. She received one of the awards, and I was invited to Moscow for the award. There, on the sidelines before the ceremony in the building of the Moscow Exchange, I was recognized by several people with whom we traded and communicated back in the 90s and early 2000s. In fact, I was excluded from this party for 12 years, and over the years two generations of new traders and managers appeared in it, of which I did not know anyone except the old guard. The organizers of the ceremony immediately reacted to this fact - on the one hand, a new face in the modern near-market get-together, on the other hand, a person with experience and recognizable by veterans, they thought it was interesting, and as a result they invited me to participate in the discussion at the round table of managers instead of the one who did not come manager of the Moscow Exchange. There were two roundtables at the ceremony that day with more than 10 speakers, but only two of the speeches received applause from the audience, and both were mine, because they sharply and unexpectedly did not coincide with what representatives of the brokerage industry were saying and are saying, but at the same time, they definitely fell into what many ordinary market participants feel.
Since this all started. Then I was asked to participate in another competition, for which I had to write three more articles. A series of articles appeared in which I formulated a coherent system of views, I was interviewed and offered to conduct educational webinars for traders.
If we return to the question of motivation, then at first I found out that I was good at writing, that is, creating something close to objects of art, because literature is one of the arts (I even made a timid attempt to start a small memoir in the form of two articles about the first years of his trading, which received a lot of positive feedback from readers). Then, in response to articles, I began to receive many letters from people who, thanks to my thoughts, began to trade on the stock exchange more consciously, reduced losses and began to earn money. Further, when I began to communicate with people in the form of webinars and seminars, many began to say that I have charisma and the ability to explain complex things in an accessible way. So I realized that I can teach other people how to trade, I kind of got a second wind in the profession, a new path that not only did not deny everything that had been covered before, but gave my trading experience a new, more important meaning - to help other people... And I began to actively socialize in this direction.
What type of activity brings you the main income - trading with your own money, managing other people's capital or teaching?
Until now, seventy percent of my time that I spend on what I call show business - speeches, articles, training - I spend for free. The remaining 30% I do for a fee, and by indirect evidence (in the field of teaching trading and investing it is not customary to talk openly about income yet), I am one of the highest paid exchange trading teachers in the country. But as a manager in the market, I earn much more. I have several million dollars under direct management and much more under indirect management. I advise on the issue of hedging currency risks of capital owners (including legal entities and banks) in the amount of billions of rubles. As a result, in general, income from education is no more than 10-15% of my total income, which is why I can afford to do many things in teaching for free. And also, being financially independent from income from teaching, I can give really truthful content, since I do not have to adapt to brokers, many of whom, inviting me to speak, ask me not to say something unpleasant for them. I say everything that I consider necessary, otherwise I simply do not agree to speak.
What kind of knowledge and skills does it make sense to give to beginners and what do most teachers give?
The key point, which needs to be talked about a lot, is the issue of risk. The market is about working with risk and with your own reactions to it, and nothing else (not mathematics, not predictions, not knowledge of economics, etc.) In most courses, especially free ones, the topic of earning is pedaled. For this, advertising images of traders on the beaches and their own yachts are needed, who are able to correctly predict market movements and earn huge money. I'm talking about the fact that it is impossible to predict price movements, the market is chaos. In some cases, some market participants have correct predictions, but these people can be compared to champions sports competitions. Most people involved in sports never become champions.
If a person wants to become a champion, he must take on increased loads, train for a long time, and even this does not guarantee him victory in competitions. Meanwhile, millions of people who come to the gym do not set themselves the goal of becoming champions. If a beginner, having come to the gym, declares that he wants to be like Arnold Schwarzenegger, and demands to give him a barbell of 250 kg, they can give him one. But she will push through his chest, and that will be the end of it.
In courses where traders are taught to earn thousands of percent per annum, they make the same mistake - they give an increased load that ordinary people cannot afford. It is advised to take leverage and try to predict the behavior of the market. Therefore, even on stock exchange, according to recently published statistics from the Bank of Russia, more than 90% of traders lose capital within 9 months. The Central Bank kept silent about Forex market, where leverage is much larger and not all companies allow you to withdraw earned profits, there the percentage of losers is close to 100. But this statistic caused a flurry of criticism from brokers, while I have been talking about the same in my classes for the last 3 years. You can argue about whether 90% of traders lose money or 80% in 9 months or 15, but these figures do not fundamentally change the picture.
I orient my students to something else. I tell them that only a few can become champions, and if there are inclinations, then you can strive for this, but at first you need to set normal goals for yourself. I call it a wellness investment - by analogy with physical education. A normal goal is to earn two or three bets per year on bank deposits, that is, 20-30% per annum, if we consider the average deposit rate of 10%. Money on the stock exchange does not have to be large, you can start with 10 thousand rubles, but they must be long. But the most important thing is that neither leverage nor the ability to predict the markets are needed to achieve these goals.
If you set yourself realistic goals, then the exchange may well become a source of additional income. Many teachers orient people to perceive the stock exchange as the main source of income. A common phrase: "We will teach you to trade in order to "live from the exchange." I am categorically against this. Because the exchange, as the main source of income, is the lot of units, marginals, to which I consider myself. It is always instability, risks, losses as at the training stage, and later.But as a second source of income, the exchange is ideal.In terms of the totality of indicators, it is much better than alternative investments, for example, real estate, antiques, precious metals or venture capital funds. In all these areas, I have experience in investing, so I understand well what I'm talking about.
When they object to me that 30% per annum is very little, I ask: a little for whom? Most people, if you ask them on the street, will say that this is a lot, because banks give much less on deposits. If 30% is not enough, then why do banks distribute money at 12-15% in our country and at 2-5% in the West? If 30% is not enough, then why is Warren Buffett, who is considered a brilliant investor, which even trading teachers will not argue with, earns at best 30% per year?
There are many free offers in the trading education market. Forex companies are the most active in this area, but a number of brokers operating on the Moscow Exchange also offer their free courses. How do you explain the demand for paid education?
Where do free courses from forex companies come from? Most of them are the so-called kitchens, where the broker is the client's counterparty during his trading, he does not take his transactions anywhere, closing them on himself. That is, your profit as a client is a loss of a forex company and vice versa. This is the main problem. It does not exist in the classical exchange market. There, the broker is only an intermediary, and you trade with an impersonal mass of the same traders. Both the exchange and the broker are not interested in you losing money. They are interested in you trading as long and as actively as possible and paying them a commission.
The task of the kitchen is to bring you to itself, as it were, for service. Its employees know for sure that you will lose money, because your money is their earnings. As soon as you brought them money, you lost this money, and the forex kitchen gained it, since your loss is inevitable. Therefore, they can afford to attract customers not only with free training. They have referral offers: if you bring a friend, we will give you part of his deposit. The quality of training is appropriate: continuous motivation with high profitability like a carrot in the muzzle of a donkey, the imposition of leverage, which multiply the speed and probability of losing, etc.
As for brokers on the stock exchange, everything happens a little differently there, since there is no direct dependence of the broker's earnings on the loss of the client. But indirectly, it is present, because the broker earns on commissions and on leverage, lending some clients with money and securities others. Basically - just on the shoulders. I know it from the inside, because I led brokerage company. That is, it is beneficial for the broker that the client takes the shoulders, and this leads to ruin. Thus, by promoting the use of leverage on free courses, the broker indirectly pushes the client to lose.
Paid courses, judging by my audience, are mostly people who have a regular source of income outside the exchange. They are quite adequate, they understand that, firstly, free cheese is only in a mousetrap, and secondly, that it is easier to pay for being told a bunch of useful details about the stock exchange and pitfalls in advance than to learn them yourself, losing your money and time. In addition, I, like other teachers, tell many things for free, and people come to us for paid training, having already got acquainted with some of our thoughts on the Internet and decided that they are interested in getting more in-depth information from us, they trust us.
On one of the publicly managed accounts, you showed a return of almost 600,000%. This fact, of course, has a positive impact on your image in the eyes of students and clients. But what do you say to those of them who want you to earn thousands of percent for them or teach them how to do it?
I commented several times about this account, there are these videos on the Internet. That profitability was made on the comon.ru website, where anyone can connect their account to show everyone their profitability. But there is one nuance in this system: it does not take into account the deposit of money into the account and their withdrawal from the account. In fact, at first, the yield was reflected correctly, until I started withdrawing money from the account. Approximately the first 600%. Moreover, people could see not only my transactions after the fact. I already wrote in advance what I was going to do. The article was called "Time to buy", it was published in March 2014, when quotes collapsed due to the fact that everyone was afraid that Russia would start to fight with Ukraine. I bought options myself, and purchased options, in case of a correct forecast, give a very high profitability.
The opportunity to make a confident forecast occurs very rarely in the market, I call such moments probability shift points. But then there was just such a case, so the first 600% were absolutely honest and publicly made. There was a lot of hype about this, I was interviewed, several Internet conferences were held. But you need to understand that I showed such profitability at 100% risk: if the forecast did not come true, I would lose all the money on this account. I don't recommend this for beginners.
Then I began to withdraw money from this account, and the next profitability was already on the balance of funds. That is, if I earned 600%, then reduced the account to the original size and earned another 500%, in fact I received 1100%, but the program will multiply the yield and calculate 3000%. So in reality, that account for all the time has grown by about 19 times, and not by 6 thousand. And 600,000% are explained by the nuances of displaying information.
If you risk your entire account on every trade, you will never capitalize interest. This is stupid, because in the next trade you can lose all 100%. Risking the entire account, you must constantly withdraw profit from it. It's just one of the risk management systems.
To clients who ask me to earn a similar return on their money, I tell them it's impossible. Or I propose to wait for a new point of probability shift and take a 100% risk. Most of them say they are not ready to lose all the money.
Of my 80 clients, there are only two who said they were ready, and their bills could theoretically increase many times over too.
Among your courses there are those aimed at both investors and speculators. How do you assess their chances of success in increasing capital?
Among my clients, of course, less than 90% losers, because I first of all teach them not to do what everyone else does: use stops and leverage, make forecasts and trust other people's forecasts, etc. Losses are inevitable when trading high risk for very high returns.
I teach strategies with moderate closed risks. If there are losses in them, then they are limited, and not due to stop losses, but due to the use of options, because most of my strategies are options. If we are talking about strategies on the linear market, the stock market, then there is also a set of rules that do not allow you to take a lot of risk.
I do not strictly monitor winners and losers, especially since not everyone is ready to talk about the results of trading, but based on the results of communication on Skype - and I communicate with each group within 2 months after training, this is the so-called post-service period - I receive certain information. Probably a 50/50 ratio. Not better. Because the market is a very competitive environment, and even having all the information about the correct trade, not everyone is able to apply it. Not everyone has a psychotype suitable for the exchange, not everyone has enough discipline. It is impossible to teach everyone to earn on the stock exchange, this is a utopia. But if you manage to change the percentage of losers from 90 to 50, this is already a very significant result.
The profitability of the winners is also not crazy, most go to 2-3 rates on deposits. For options, the yield is higher, up to 80%, but the share of winners is about the same.
As far as I know, you have been trading options far from the very beginning of your career on the stock exchange. But now they have become one of the most famous popularizers of this financial instrument. What are the advantages and disadvantages of options?
Indeed, I came to options somewhere in 2008-2009, after 15 years of trading in linear instruments: currencies, stocks, futures. And, despite all my previous experience, options literally demolished the tower for me with their capabilities. Compared to linear markets, this is a multi-dimensional world. On the one hand, in options you can earn in the same way as in linear markets, on growth or fall, but with closed risks and potentially unlimited profitability. But their possibilities are much wider. They allow you to create constructions, such as a purchased straddle, that make money on the rise and fall at the same time, which is impossible to achieve in linear markets. There are also options positions that make money when prices move in a range, without strong trends. This, incidentally, is in great demand in recent months, when the RTS index, in fact, does not go anywhere, and in general during periods of horizontal trends, which on average always prevail in all markets.
I usually compare trading futures and other linear instruments with a rotary desk phone. A telephone is convenient, but why limit yourself to a rotary telephone if there is a push-button and a mobile one? This is silly. You have to be some special conservative or someone with cockroaches in their head. Similarly, it is foolish not to use options because they empower the trader. There is no reason to refuse them if you are already trading in the linear markets.
Options have only one drawback: huge opportunities are fraught with huge risks. And in order to deal with options, it is necessary to understand their features and differences from linear markets. There are many hidden risks that beginners simply do not realize, even with many years of experience in the linear markets, transferring their experience to options too literally. This is very dangerous, and I myself at one time fully tasted these problems, from which I now protect my students.
Many people say that options traders are some kind of closed caste and that you need to be good at mathematics in order to trade them. I strongly object: yes, options are more complicated than stocks, but not as complicated as they say. After all, in order to drive a car or use a computer, it is not necessary to know exactly what parts they are made of. I teach exactly how to "ride" on options and in my training I avoid unnecessary complexity, mathematics and formulas. Therefore, among my students there are even ladies philologists who are difficult to suspect of a mathematical mindset.
In stock trading, as in real business, few succeed. What personal qualities are necessary for successful trading on the stock exchange? The same as in business, or different?
It is necessary first to clarify what is meant by success - a champion result or profitability higher than the deposit? In order to earn 20-30% per annum and 100% per month, you need different qualities. For the first, the same qualities that are needed in a real business are suitable: you need to treat trading as a profession and pay enough attention to it. Many people treat the stock exchange as a game: they opened a deal, waited a bit. Then they recorded either a profit or a loss. Someone is studying economic indicators and makes what he thinks are reasonable predictions. Others delve into the math, trying to figure out where prices will go. These are all wrong paths. a certain perseverance and systems approach are, of course, needed. There are certain similarities with business here. But the difference lies in what exactly needs to be worked on.
Most people think that there is a certain logic in the movement of prices on the stock exchange, just like in real business. That you can derive a formula for success, the notorious Grail, and then simply use it. These are all pleasant illusions.
In fact, the success of a trader lies not in the ability to predict the market, but in the ability to act correctly in any market movement. Thus, market movements become unimportant. And time and effort should be spent not on studying the market, but on studying yourself in the market.
Two people can buy the same stock at the same price, but one will sell it at a profit and the other at a loss. Because one will wait out the phase when the stock makes a loss, wait for the profit and close the deal in time. And the other will either be afraid of an even greater loss and sell the share cheaper than he bought it, or will not take the profit on time and sit in the stock until the moment when it falls in price again. The market for them was the same, but the result was different. Why? Because they acted differently, and this happened because they interacted differently with their emotions, with fear and greed. Here it is - the key.
So stress resistance and patience are of great importance for a trader. All the time while you are in a loss, you experience very difficult emotions. The trader's job is to deal with these psychological problems. And the vast majority of people try to get out of the zone of psychological discomfort, for example, take a stop loss as soon as possible, that is, capitulate. These are not fighters. And they inevitably lose.
As capital increases and the pursuit of higher profitability, fighting qualities become more important, and the number of people who are able to display them becomes less and less. Few out of a million become champions.
I had very unpleasant situations in my life, I went bankrupt 3 times very seriously, went not only to zero, but even to minus. Such stories are enough for every successful trader, if he has been in the market long enough. And when you find yourself in situations where there is no money or big debts, God forbid, when you need to think about how to feed the children - and I have three of them - to get out of there, you need a lot of stress resistance. After the exchange, such situations seemed like a cakewalk to me. Once, when I lost my personal 2 million euros within a month, they asked me: how did you endure it? Someone said that he would jump from the balcony if this happened to him. And these were people who went through the 90s, they saw everything. I answered: I am a trader with twenty years of experience, is this a problem? It's just a new challenge, a new chance to see what you're worth. You stand on a couple of pounds - a yen with a hundredth leverage or sell a straddle on the central strike the day before expiration - then you will understand what the problem is.
In other words, when you are used to working every day with the risk of losing your account completely, while being fully aware of the consequences, when a crisis is the norm and lifestyle for you, then you have huge advantages compared to ordinary people. You develop resilience skills that protect you like armor in any life situation. crisis situations. Moreover, you even begin to feel high from stress, from struggle. For me personally, life without struggle is generally boring and meaningless. But you can’t relax either, you need constant control, to consider the consequences of each of your own, and not only your own, decisions a few steps ahead becomes the norm ... So, when they say the phrase “Ilya, this is risky”, I always answer simply: risk - this is my profession.
In general, I am constantly learning to work with my psyche in a stressful situation, and most people spend time studying the market without studying themselves.
To those who dive too deep into the math, looking for market inefficiencies, I ask: How many PhDs in math or physics do you know who got rich on the stock exchange? There are almost none. On the other hand, I know people whose education is approximately equal to two classes of a parochial school, but they constantly earn on the stock exchange. They have zero knowledge in macroeconomics, they do not understand business, but they make a profit on the stock exchange, because they have a ram's psychotype. Here he got into a deal, and until he gets out of it with a plus, nothing will beat him out of it. Highbrow mathematicians, when they see that the situation does not fit their model, immediately capitulate. The ram never capitulates. I know people who in the fall of 1997 bought Gazprom shares at $2. A year later, they cost 4 cents, but they waited 9 years and ended up earning 90% APR from the date of purchase for each year of waiting. In order to endure a 50-fold drop in the price of a stock, you need to have a very special psychotype. You have to not give up when the stock falls, but the most difficult thing is not to give up when it starts to grow and you watch your losses halve, then triple, then it’s hard not to go out for your money when the loss is gone. The vast majority, 99%, will exit the transaction after they first said goodbye to their money, and then, after 3 years, they saw that the market was ready to return everything to them. You have to be a very stubborn sheep to stay in the stock further and sit out as a result of a multiple increase in capital from the initial amount. The ability to achieve your goals and not give up under any circumstances are very important qualities on the stock exchange. Key.
In addition to business, trading on the stock exchange is often compared with a game and with sports. What, in your opinion, is the similarity of trading with sports and the game, and what are the differences?
We have already talked about sports, and as for the game, I often cite roulette as an example. There, in certain cases, when you bet on red / black or even / odd, the chances of winning and losing are 50/50. In the market, too, at each particular point, prices are in equilibrium and the chances of a small movement, say, by 1%, from each point are approximately equal, even if the price has soared very high or fallen very low before. But in roulette, sweepstakes and similar games, you bet 1 time and then look whether you guessed right or not. And on the exchange there is an opportunity to prolong the bet: by buying a share, you can sit out the loss and wait for the profit. Imagine that in a casino you could, betting on red and not guessing the color, say: let's wait, what if the field turns red? It would be a completely different game. That's just on the stock exchange, this opportunity to wait is there, and when you use it, you get a huge advantage compared to a roulette player. It is unfortunate that the vast majority of stock market players - lovers of stop losses do not use this opportunity, automatically equating their trading to roulette.
Another similarity between roulette and stock exchanges is the so-called "negative sum game". Because even when playing for equal chances (red / black, even / odd), there is a “zero” field in roulette, and when the ball gets there, both those who bet on red and those who bet on black lose. Only those who bet on zero win. The probability of such an outcome is approximately 2.5%. This is how much, on average, those who play on the red and black infrastructure, that is, the casino, pay for the right to play. On the exchange, the infrastructure also takes a fee from both sides - both the winners and the losers. The role of zero is performed by the fees of the exchange and the broker. Therefore, if we did not have the opportunity to wait for the desired result, we would all lose money in the same way as those who constantly play in the casino lose sooner or later, simply according to the law of the game with a negative amount.
It remains to compare stock trading with art. The famous musician Fyodor Chistyakov in one of his recent interviews said that it makes no sense for him to listen to other people's music, he has already listened to everything he needs. Now his task is to generate his own musical wave, and someone else's music puts him on his own wave. This echoes the thought of Vladimir Vysotsky, who sang about someone else's track. Is it possible to learn how to trade profitably using other people's methods, or do you need to find your own way, and when you find it, you no longer listen to anyone?
I myself did not listen to anyone (yes, in my time there was no one to listen to) and created my own trading methods. This eventually led to success, but through three severe personality crises. Therefore, I would not recommend my path to anyone. Now I do not teach people to mindlessly copy me, I just point them in the direction and warn them against the wrong paths.
I have no task to give people the only possible way make money on the stock exchange. I'm just saving them time that they would have wasted on the wrong path. Then they can look for their own ways, but in the right direction.
Many artists started out as imitations. For example, the group "Time Machine" at the beginning imitated The Beatles, and "Aria" imitated Iron Maiden for a very long time. But then they came out with their own music, albeit in a similar style.
There are many parallels between art and stock trading. Those who listen to my free courses only get a genre in which they can compose their music. Those who go through deeper training may already repeat what I do, but then they still add their own elements.
I often draw analogies between trading, sports, and art, because all these activities have a lot in common. Few become champions, brilliant creators, as well as outstanding traders. But at the same time, the vast majority can go in for sports and art (for example, run or draw), without becoming either geniuses or champions, performing their normal, non-champion tasks. Therefore, it is not at all necessary to become champions by playing sports, art or trading.
And most importantly, in the championship and genius there is another negative feature: all this is not forever. Sooner or later, a new generation inevitably comes, which pushes the old stars off the pedestal. These examples can be found everywhere. The great director Francis Ford Coppola, already in adulthood, admitted in an interview that he would never again be able to make something like his films, which he shot in his youth. This is an unattainable peak for him, because young energy is gone, talent is gone. Our Eldar Ryazanov had a similar situation.
In China, as the same Coppola said, famous poets in the heyday of literature, feeling that they had reached the peak of their skill, went into calligraphy. They changed the type of activity to a close one, but different, because they understood that each next poem would be worse than the previous ones. They did not want to embarrass themselves and chose another art where they could progress.
In trading, I personally know people who, having 15 years of experience, 10 of which were stable earnings, then lost all their money in 3 days. But these are champion-level people who constantly operate at maximum risk. You can’t relax there, as in a boxing ring, where champion titles have not yet protected anyone from a blow to the head. An experienced champion may win for a while against younger opponents who have better reaction and more energy, but eventually succumb to one of them. Therefore, in working with client accounts, I have long and consciously moved away from maximum risks. But on my small accounts, like the one I show on comon.ru, sometimes I take the maximum risk in order, on the one hand, to keep in shape, and on the other, to show the possibilities of options and my capabilities.
It is no secret that students often seek in the teacher's words not only knowledge on a particular subject, but also on life in general. Do you have your own philosophy that you pass on to students along with knowledge of stock trading? If yes, tell us its main postulates.
Indeed, any training, no matter what you teach - macrame, karate or stock trading - is always somewhat more than teaching a particular case. People begin to trust you and ask for advice on other topics. I answer these questions when I can. To sum up what I'm trying to convey, besides stock trading, is the principle that you need to be a fighter in life, not just on the stock exchange. You need to rely only on yourself, do not expect help from anyone and do not envy your neighbor.
Now there is a lot of political controversy, there has been a split in society into two camps - relatively speaking, liberals and patriots, and not only along the lines of Crimea and the East of Ukraine, but also on issues of corruption, freedom of citizens, etc. Patriots say that we have a wonderful country, we have more freedoms than in the West, etc. One can argue with this point of view, but it is still much better than the liberal one, because this point of view is positive. Liberals, on the other hand, say that we have a terrible state, where everyone is against man, where the rich get richer, and the poor get poorer, and we must either get out of here or make a revolution. In my understanding, these are not liberals. A liberal is a person who knows that everything depends on him. He is for freedom not in terms of permissiveness, but in terms of responsibility for one's own destiny. And our liberals are people who criticize the authorities. They thereby show that they depend on the authorities.
Here is Chulpan Khamatova, in my opinion, a real liberal. She does not criticize the authorities, believing that everything is bad with saving dying children, but she collects money for her fund and really helps them. And when such people reach a certain scale of their activities, the state itself comes to them and begins to help. But even if help does not come, they will still do their job, because they believe that it is necessary.
I am among the people who say: if you want everything to be good in the country, start with yourself. Do not fan the hysteria about how much Sechin earns, for example, or how much the bridge to Crimea costs. If you don't want corruption in the country, don't give bribes. Do not rely on retirement, then you will not care whether the retirement age is raised or not. There is you and there is the space around you. And it depends only on your actions what this space around you will be like. How will your family live? You cannot change the whole world, but it is necessary and possible to change your life and the lives of your loved ones for the better. If everyone does this, then the country as a whole will change. Many will say that luck is important or start-up capital. No, not important. I myself come from a poor family of children's doctors from the distant island of Sakhalin. I started from scratch. And he never asked anyone for help. Absolutely each of us has the opportunity to achieve more in our lives, regardless of what the neighbors or the authorities will do.
This worldview is actually very closely connected with the stock exchange, because the stock exchange is one of the few areas of human activity where there is no one to wait for help from. There is only you, and the market is opposite you. And as you act, you will get such a result.
Attempts to seek help in predictions or indicators technical analysis do not lead to success, all predictors are charlatans. If you are ready to fight your fears and greed, you have a chance to make money on the stock exchange. I am often asked how I endured situations when I was bankrupt, what motivated me. I answer: when you realize that no one can correct the situation except you, the extra reflection goes away. I don’t understand people who have been sitting in low-paid jobs for years, criticizing everyone and waiting for the state to remember them and help. So you can wait your whole life, or you can get up from your chair and find another occupation for yourself, find the path that will lead you to success. Do not criticize and complain, but do. The only way.
About person
Ilya Korovin
Born in 1974 in Ivanovo, grew up in Yuzhno-Sakhalinsk.
From 1991 to 1996 he studied at the Moscow state university Commerce at the Faculty of International Economic Relations.
Since 1993, he has been trading on Russian stock exchanges and Forex.
In 1997 he moved to Kaliningrad, where in the spring of 1998 he joined the Kaliningrad Stock House company. In a few months, he went from manager to director of the company.
Since 2002, he has been a private trustee, a stock trading and wealth management consultant.
Since 2013, he has been a promoter of trading and option trading, a lecturer at the Derivatives Market School of the Moscow Exchange.
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