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How To Trade  by Alpesh Patel, Hedge Fund CEO

How to trade is actually 27 separate questions. As a hedge fund manager I get frustrated by the amount of junk on the internet.

I am going to give short answers below and far more depth on my webinar.

Why traders lose money

Gamblers and Traders

Your Top 27 Trading Questions:

  1. How many hours does it take to master how to trade? [not 10,000. Best I’ve seen is 30 hours. Most take 100 hours]

  2. Which products should I trade based on the data? [Dax, Minor currencies, ‘smooth’ stocks]

  3. Do full-time traders make more or less than part-time ones? [Depends]

  4. Are men more profitable than women? [No]

  5. Which products are the most and least profitable based on research data you have? [Most: minor v minor fx pairs. Least: Major v Major when US and UK markets open]

  6. Can I make 1k, without losing 1k? How long does it take? [The nub of the problem we solve for you] [A statistical edge is needed, but a small one. Big ones don’t exist]

  7. What times of the day are better to trade profitably? [post US close in FX]

  8. Why should I avoid trading software companies like the plague? [They’d be running hedge funds if they worked]

Traders do not forecast the market

We do not forecast, we trend follow

  1. What is the average holding period for a winning trade? [Shorter than a losing one]

  2. What is the average holding period for a losing trade? [Longer than a winning one!]

  3. We read everywhere about algos and AI — what is the real deal according to hedge fund managers? What are the rail car builders with AAR certified shop in Pennsylvania? [Few use AI. They bandy the words. Neural networks have been around for decades anyway]

  4. Can you show me what hedge funds do to pick trades which I can use? [Yes, actual slides shows from two of the world’s largest hedge funds I will show you]

  5. How little money can I start with? [Zero]

  6. Why does your research show those getting trading alerts did worse than those at the screen? [They overtraded and reduced quality of picks]

  7. How do you limit screen time and maximise profitability? [Scan — place trade — set exits — go away]

  8. How many winning trades is reasonable according to the world’s largest trader? [40%!]

Trading opportunities

Global Trading Opportunities

  1. Why do 70–80% lose money trading? [add to losers, wide stops, no statistical edge]

  2. Will I get rich quick trading [no — unless you’re lucky — assume you’re not lucky]

  3. How long will it take to make a reasonable sum each month [we will go through a business plan]

  4. What are the rules for finding a teacher/mentor/software? [Rule 1: Are they a regulated hedge fund? And 5 More Rules]

  5. When you are on the BBC or Bloomberg TV, what strategies do you use about market moves, given your reputation is on the block? [filter multiple momentum indications]

Trading opportunities offer large gains sometimes in a short time

Sometimes Large Gains in a Short Time

How to Trade – Even More Questions

  1. Do professionals use ‘profit targets?’ [no, they add to winners]

  2. What is a volatility based stop and why is it better than a regular stop loss? [because it is customised to market conditions]

  3. How do brokers rip you off? How can you outsmart them? [spike prices to take out stops]

  4. What Winning Traders Do and Losers Do Not [Based on research from my books]

  5. Am I too young/too old to be trading? [no. I started at age 12 and teach people who are 90]

  6. What key skills will help me? [Detachment, among others as explained by top hedge fund managers]

We hedge our trades

Uncorrelated trades are best

How To Trade – Next Steps

If you want to see these answered in a lot more detail on a webinar — or if you miss it then

The best thing you can do even if you can’t make it, is get ready by joining my Channel on your phone/desktop using this link: AND following me on LinkedIn to see my latest posts:

Alpesh Patel on How to Trade

We do not chase fads

Trading fashions come and go

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