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Interview with Juanis
(July 29, 2002)
 Me
and Juanis during the interview at the Citisec office in Tektite Towers Citisec's
Trading System: A
trend following system that uses the daily chart with the default
parameters of the following
indicators: 1.
MACD, Parabolic SAR; 2.
Price to Moving Average Crossover (65-day, 130-day and 260-day); 3.
DMI, to judge how strong the trend is; and, 4.
RSI, for their oscillator. The
trading system is partially mechanical wherein the identification of the
trend is mechanical but the buying and selling triggers are not. Fibonacci
retracements and Japanese Candlesticks are also being used. And they are also looking into Alan
Farley's Swing Trading techniques. He
says, "You can't be learning too many things all the time. In
Technical Analysis, you can have 200 or 300 different indicators that
you point towards a stock, and you can have differences in opinion in
the indicators alone. Sometimes, when you have too many, it might serve
to be debilitating in your analysis in the end. We've come up with a
number of indicators that pretty much gave us a well-rounded approach to
it. We've focused on it and we've pushed ourselves in that direction
instead. So what we did was we specialized rather than learn every other
different type of indicator possible." He
also says, "You can read all the books you want, but if you
don't practice a particular system or a particular defensive strategy,
its not going to work out to you later on." His
Average Holding Period: 1 Day to 3 weeks His
thoughts on Selling: He
says, "...your entry can be brought down to a science, but your
exit is an art." He
also says, "Every single guy behaves in a different way. His
tolerance is different. His ability to be able to pick up in whether a
stock has already grown to a dangerous type of movement is also
different. And this is where the difference between a good trader
probably manifests. His ability to sense the market whether it can still
push up a little bit more or whether he thinks he has pumped himself
into a harrowing situation and its time to pull out." His
thoughts on Elliot Wave: He
says, "Elliot Wave is used like a strategy guide. I don't think
it can be traded. I think you look at Elliot Wave Theory, in terms of
what phase the market is in. Once you know what phase the market is in,
then you should tone down or become more aggressive in your stand in how
you trade." How
Citisec stock picks: Citisec
uses a combined classical and momentum approach which uses the MACD, the
Parabolic SAR, area patterns, and congestions which are ready to
breakout. They do not confine themselves to a certain market when
picking stocks. They pick anywhere from the NYSE, to the Nasdaq, to the
Biotech and even to some Dow issues. He
says, "The more volatile, the better, but when we see extreme
volatility, that usually is when market points come in, either the highs
or lows. That's when you get the greatest amount of volatility." Portfolio
Management: -
He never trades more than three stocks at any one time. -
He usually buys only two issues of which he spends 30% of his capital in
each. -
He will only be invested 100% in stocks, 5% of the time. People
who influenced his trading: 1.
Edward Lee, his boss at Citisec; 2.
Peter Chua, a senior trader at Citisec; 3.
Bertie Barredo, his father Books
he recommend reading: Pitbull,
Market Wizards, Reminiscences of a Stock Operator - for Trading Trading
for a Living - for Trading Psychology One
up on Wall Street - for Fundamental Analysis
Learn
more about Juanis |
