Joe B Marwood is a seasoned trader and investor specialising in financial trading and trading systems.
He began his career day trading stock and bond futures for a trading firm in London and now works through his own private company.
How did you get started?
I started my career as a professional day trader for a London-based firm where my principal products were the FTSE 100 future and German Bund.
Today I trade a portfolio of individual stocks and I have a passion for building automated trading strategies and systems. I use a blend of fundamental and technical analysis and attribute a lot of my success to my trading mentor who was the former head of trading at a leading German investment bank. If I discover an edge I will also trade forex and futures.
I am also an author of a book on stock trading and a regular Seeking Alpha contributor.
What is your trading style?
I use a semi-automated strategy to trade stocks on an end of day basis. I look at both fundamental and technical analysis and use strategies that are based on historical simulations. I combine those strategies with my own experience and discretion to come up with trades that I believe are more attractive on a risk:reward basis.
Mean reversion or trend following?
I have found that traditional trend following methods do not work as well as they once did. My methods are based on my own observations on the market whether they are based on momentum, trends, mean reversion or anything else.
Who taught you how to trade?
My mentor was a former head of trading at a well known German investment bank. I also read and studied countless books, journals, and articles, and have spent many hours in the market. You can never stop learning.
Why did you make this course?
To educate others so that they don't make the same mistakes I made. Learning to trade can be a very expensive and drawn out process. As a trader, it is also extremely beneficial to have sources of side income as that takes the pressure off your own trading.
What are the secrets to successful trading?
First of all, you must have the passion to succeed. If you are in it only for the money you will have a very tough time and will be doomed to failure. You must also be comfortable with risk and be able to separate your emotions from the money. Having a system with a profitable expectancy is also crucial and for that you will likely need a strong ability with numbers.
Why do most traders fail?
Most traders start off under-capitalised and then chase unrealistic returns which results in them blowing their account after a couple of big losses. Most beginner traders do not realise the realities of trading which is why they have trouble sticking to trading plans and dealing with their emotions. Trading should be treated as a business.
What are your top tips for successful investing?
In my experience successful investing should be part mechanical and part human experience. For me, the ideal stock is one that meets my fundamental criteria for value but also possesses a strong economic moat that gives it a sustained advantage over it's competitors. However, such companies are rarely available at cheap prices.
Longer-term investing is easier than short-term trading but even so most investors fail to beat the market averages over time. Unless you have a significant amount of time to devote to research and analysis most investors would be better off sticking with these averages.
[Joe] has done a great job to get all the information an investor will need. Its up-to you to put the systems to work ... if only this had been out 10 years earlier.
– Fai Hansen.