Hello and welcome to another episode, traders! Really quickly, I would like to thank everyone who has been tweeting about this podcast over the last few weeks; it’s been so awesome to go back and forth with you all! If you’re not yet following me on Twitter, you can do so @chatwithtraders.
Our guest this week is Alan Farley, who made his first trades in the late 80s. Alan is an active swing trader, with most of his positions in the U.S. equity market (although he’ll occasionally trade index futures and currencies as well).
Alan released his first book (one of the best-selling books on the subject), The Master Swing Trader, in 2001. As well as a best-selling author, he is also a regular contributor to Investopedia and The Street; over the years he has written hundreds of articles.
In our chat today, we talk about the out-of-the-ordinary way that Alan got his education of financial moments, the big lessons that made him the trader he is today (in particular the concept of convergence and divergence), the dynamics affecting price movement, and tons more.
What’s Covered in This Interview:
- How an “old dad” who knew nothing about finances kick-started his education of the markets and why he turned to trading in the first place.
- Alan takes us back in time to when transaction costs for retail traders were crazy high and how this greatly influenced his trading style.
- The two people who shaped his trading the most; a technical analyst from Merrill Lynch and Linda Raschke (and the lessons he adapted from them).
- Alan’s journey toward becoming a full-time trader and the key insights from his experience after being made redundant in his full-time job.
- A look at the dynamics affecting price movement, all of the obvious and less obvious trading opportunities of breakouts, and Alan’s thoughts on stop losses.
Links and Resources:
- Master Swing Trader – Alan’s first book explains how to use charting, technical analysis, and market sentiment for swing traders.
- Investopedia.com – Alan has contributed hundreds of articles over the past few years. This link will take you directly to his bio.
- HardRightEdge.com – Alan’s website, where you can easily learn about Alan’s trading methods.
- Linda Raschke Interview – Linda was one of the traders who had a big impact on his performance and style. Hear an interview with Linda here.
- @MSTrader – Alan is on Twitter and would love to hear your takeaways from today’s chat!
