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 Interview with Greg Shrader Author of A Look at the Masters Trading

Interview by Larry Jacobs

TW:You turned $13,000 into $2 million with a return of $2,453% on your principal investments. More specific details can be found at www.tradersworld.com/shrader.
This is very impressive. I have a couple of questions regarding these stats:

TW: Were there any losing trades?

GS: Yes, of course there were some losing trades. As you know even the great W.D. Gann had losing trades. However, I trade with very tight stops or buy undervalued options, so when wrong the losses are very small, and easily offset by the winning trades, so we didn’t bother listing them.
TW: I noticed there were a lot of option trades. Why did you use options instead of stock?

GS: I like options better than stocks because of the leverage. With a stock, you might have a gain of 1 -25 percent in a few days. With options, if you get it correct, you can see anywhere from 10’s to 100’s of percent gains, or more, in a few days, just like the trading tickets show.

TW: Did you use stops with these options?

GS: I almost always use a stop. Sometimes, when I’m trading the markets continuously, and I’m watching the trades all the time, I don’t always place the stops with my broker, but instead just know about how much I’m willing to lose in advance of making the trade. I should probably always just place the actual stops instead of just watching the markets, since having your stops in place helps control risk, but sometimes I just make the call myself.