Reality Of Trading Professionally - James Whelan | Trader Interview
It's gonna have your right way and keep. It simple don't overanalyze. Let's. Start with be my advice there get out get out of your own way. The, decision the good the, good outcome or the right decision is usually there if you you know if you. Get. Out of your way to find it. Welcome. Back you're gonna see on t in BFS, group, yeah with, James Whalen and Danny, must what, talk about a little more special trainings and things that they do here they have a lot of good things that they work on as a big progress so, welcome well actually thank you for getting me here James so you were saying in fact that yeah just move office last year and I, think a big difference is that you said you had a few like different people before, I thought you worked only with, trainers, I would took and I like Danny go into this a bit more we. Have. Some, extraneous, divisions, that but we're still associated with that we're now geographically. Separated from in this move so so right here is the new attendee Technomancer, look, I mean after after, 10 or 12 years in, this every day it's. Sort of got a little bit snail in there as gender saying we had a few different business, units running. Concurrently but, the. Move out of the city day into the into, where we are now in Dalian versus enabled us to sort, of tighten up that team a little bit and. Allow us to really focus more on the investments we make and the investment strategy behind it and just that, moving geography, is created, a different environment, for. The culture to sort of development, and all the people who, yes. So, what's being done here exactly is it trading, investment is research more or the, execution that's got mark everything all, the above everything, you just mentioned from from investment, strategy from research. From decision, from execution. Management. Plan as well is what we do go awesome, I think people are going to want there a little bit about how it works in, institution, we need to trade when you research so, can you kind of fill any of the tasks. That people do here and what's involved when you betrayed an institution. Like this yeah. I mean we've told you know a number of guys, and girls who work on the floor from. A training perspective and, that that the word training perspective so there's quite a compass in so that was include people, who specialized in the research a lot of things we have specific, traders who actually execute, decisions, they. Pull the trigger on the market on whatever market we're trading at the time and they make sure that we're doing the right you, know sort of risk return style transactions. And making sure managing, your clients money appropriately. And everyone's getting the right allocation. Position sizes and so on. You. Know and that's sort of some, of the main functions, in terms of research and execution, and in portfolio. So the portfolio manatees that the data and I dealing with clients and. Dealing with the. Trainer's dimensional, positions I think effectively, and then research, twice a with everybody is that. Awesome. And first, people that would like to work in and fired like this what, do you think like what do you look for whether they have to do exactly to, be our desire. Everybody. That works here has, experience in the markets yeah that ranges from you. Know people, who have worked from, clients, I have worked, more on the island, so out of a research side and, we look for somebody who's driven because the only way to you. Know build a company. Successfully, is is through hard work that's, that's, all there is to it so we look for people who are already the work out. If. I can add to that as well the number the number of people that we turn away just. Sort of cultural basis before or even coming through to, have. A look at the place is. It. Miss. Its. Causal first customers, are awesome, example, wins my heart yes. Our experience, in almost that that's that's poor sort. Of an assumed knowledge basis that they should, but if you don't want to tell me if you're not gonna be out of thing if, you can't let your ego at the door, then. It's, really not for us because we're not myself went on this sort of shot we're all working, in the same direction there's. Nothing to be drawn battles. Individual, tears to the going on if we're not on steering. The same way then, this quest is working. None. Of us has mentioned that mentality is continuing, in, the right direction that mentality is constantly.
To. Achieve, the best result for the clock and, not for the. Yeah. Something that God shows we have white and yes. They get any company pretty much yeah, especially where it's it's you're in a foxhole male yes there's no there's, no beat spread out of the space where huh wearing this you. Know in not a mystery in a different room that's there and this. Space but we're in each other's pockets with, entity to know exactly what's going on because someone will say something in in the US market that realizes what's going on in Europe and the guy who needs to focus on Europe the moment needs to be focused on me on the Australian assets, y'all for, example we all need to know what's going on it's men in danger there's papa see if there's any battles it's going to stop well yeah, definitely. How's that communication, in a team like this it will talk a lot does some people say that they prefer to trade primarily, in the stomach on their phone yeah but some people prefer the ketamine, affirmative people thought other people yes. It's. A very clever okay, it's it's a very clever there's. A lot of communication. Without. Question you know, got to be one of the best strongest suits yeah everybody. On the floor knows each other very well, and. You. Know we've over time developed, in, our communication, styles that we can all communicate effectively in. Order to get to the right decision and so, often this time when, you. Know people's decisions, will be challenged, it's. Important in terms of getting to that best outcome for the client yeah it's, not quite so I've already read, Dahlia at this place has got to you that they've got that continue, on challenging, challenging challenging, the, whole way is it's in that direction not. Quite, as, frantic. This. Is very literary criticized, a lot boy what if you kind of thing the, remember with the sardine with, us a small if. You can get through just the. First levels then we're all on board in the next video it's usually a pretty good idea tear, it apart so before I can't forget, this in their trading is it something like truck, like through 28 someone then that person can reply what they're talking yeah it's gonna have a sounding board and I noticed, so I think what we'll talk.
Sometimes, I'll come. Up with all at the air I'll get through and if I don't sound it off so there's. More, likelihood that it will be a loser, as opposed to it okay. And. Usually it's through that distant, easy sort of sounding morning I can't go through justified, what's really what's your back in behind it and a lot of the times its. Eggs in something is supposed to enter inside its, why you actually miss the situation, properly. Hood loss why in this situation, as a person I think I'm you. Know starts. Aha Cummings, is for. Must office has, the better chance there's the story of upon this idea chest and if you don't they'll sit off someone, it's just few bouncing around in your own open your own head okay. Hence you know I haven't submitted just get lost it's on the room hey yeah, everyone's. Like these things credit that's just going here so, that's. That's what it is it's very clever. What. Excuse that there's a lot of like exact. Communication, to this ravine exit, order to me like like trade investment that, actually what you do with them so. The. Thing is I'm using my goals or put it that he's trading to train. And, to look for like, different, markets a like he said so, how does that combine with kind of communication, intervening, way to do things. I mean. One of the decisions. Will make obey. Mechanically. Driven so. We're often running, you. Know noise in the background or any, other markets out that we're paying attention to and we're looking for any momentum around marketing, what's. Where. The money is flowing away the strength ease so. A lot of that's driven they say by algorithms but by you. Know analyzing, job and. That is one. Of the beginning points about research deciding, where we're going to be when, we're gonna move her in the market so. The portion of portfolios, is. Based. On yes, we see you know we see the research and we see what this map is moving we want to take a few ideas on and then another another, portion of portfolios, is opening up and is getting margin was dedicated, through. Is. Hoping. I'm gonna skip it's. Dedicated. To a quantum, of momentum strategy that we have that, part. Of a mystery to the options market has an income generated, through certain. Sellin premium. In. For. Example gold the. Options are the golf futures, the. Spy futures things, like therapists, are SPX features we've. Also got a holder that chooses, the best direction is probably ETF market so, in. Lausanne, remember. When. We traded the gold we held that position since that. That's for, example it just says based on momentum indicator, going, to is follow, that rule and for. We. Still we, still check out guts on these things in Misco just because the computer speed setting for this part of the portfolio says, it needs to be in gone where it needs to be shorter. It makes to be in US dollars, we. Don't respond to blindly you have to actually take in this guy K is this actually what was what, we want our pants to be in at the moment for, the most part is because the computers is wrong. So. If. You want to go against our goal then you have to be justified Cleary's.
It's Like, you. Have it that's again yeah yeah I mean throughout. That period my last year we, had expired, in. A very defensive level, so we had US dollars we had to cash positions, and we had gone in that portion as charity which a full month is significantly, in the back end of last year which was which. Was obviously a collision considering. How how the hotel they were and that was a lot of that was driven by that some that quote momentum indicator that kept us out that's. What always about instead, I finding, where to, to, put money into the market sometimes it's stepping back very. More defensive and, that was driven entirely. By a cop right over there nice, so. When and how you decide, to build a novel and how did that happen exactly I've. Seen a couple of years we've been working on this you. Know you don't just decide to build it out tomorrow. You have know that you, know you you you back, test data you go back to do the, sample that you're tested, isn't working you know. Can. You make it better what, can you do to cheer it part up and make, it turn you know it will matter results basically so it's. Been using the making, basically. Is that. Someone's. There appointment, excited to work on this and doing this happen, okay years ago about three years ago we started looking into it and deciding. Okay so there's, our guys but do you want to create an actual alga that competes against all the other computer programs out, there and it's based on speed or, how can we play to our strengths, a bit more happen we use a bit more about, market. Knowledge to you, know work with the program to build something that can canal perform so as, a couple years ago we started doing it and. Then it's, been a long road of building, and testing and going, back to the drawing board scrapping that and starting again and so on but we've, been you know we were running it for about two years now it's been performing very well yeah, thing I like to combine both like the best of my know training and of all training it's kind of having not good to call you but, still doing the manual work kind of have, you guys do yeah, the, enjoy execution, is important so that the, system that we use is quite strong to make, sure we've got the until the execution, and. Then we can actually try to do this both markets also. Seriously having a quick reflection of performance always as. Well. That's. Right so you know we're up just over three percent which. Is pretty good for that. And no training. Officer just, on that strategy we, want me to stretch it so can. I get the competitive no, yeah yeah yeah we so I still, shut, up to think about what actually happened in the in the market at that period so that, was quite a little sorry yet if you're gonna go against those signals to. The. Platform uses cholesterol, the. Signal, is quite strong it's. This. Way okay, so that's just tweaking to make sure it's absolute perfect no any games, or anyone do that as well my god the exits are wrong okay how. Does the Apple worse do you get like, I guess the report daily about what you should be do every. Week, every month look we're monitoring things daily. Usually. Making decisions, on a weekly basis and sometimes those decisions are denying you, know what the decision ends up being so what, we wanna show my, work with live in breath on markets, we're. Constantly, analyzing, data from around, the globe on. A daily basis and usually on a weekly basis in order to actually make a change or or, execute something, but. You know often you know we're happy and comfortable in positions, like for, instance back in back end of last year there, was a lot of no challenge, just, follow hull position, and so, that's what we did so there are plenty of times when we don't actually anything, so. Pretty some women are to dilate and look to my decisions weekly if we need to and. So you mentioned a time will come later and we look for probably, loving, so primarily, driven by high price unless.
That's Not the, assets that we, tend, to utilize honest, advice you. Know global markets or an index level watching. Kumari's and currencies. Inputs. Into that and so it's primarily driven by price, and momentum. See. What, these things are doing it then you would have ideas of what to show you with that said the past life getting, any astray so the apples and their data. And then you find, out that it's true oh yeah. Yes. That's a second way to expand like a process genuine ik what does that involve. Against. Its following price employment, in looking to see where the strength in the market is and the idea is that we'll always be investing, in the strongest asset classes that's, that's that's how that's driven and often at times of. High volatility, the strongest asset class design defensive classes, that you go to u.s. dollars short positions, in the USA only SFA for founder for example. Since. The primary, job case is crossing momentum across. The assets of e-commerce and. That's. The Jesus who makes like a few months the UN investing, for some time no no move investing there for as long as it's the strongest asset class okay if that, changes then will change if it doesn't tell us we don't have a reason to change that means we're in the strongest asset class we don't need to be adjusting. We didn't wanna hang it to make sure we remain in that position but. As, I said if we aren't making changes, to our strategy means the wearing a strong asset classes and there's no reason to change that there's no reason to you. Know I mean it's a very, adage. But if the trend is if your honor it's going that direction don't, change yeah. Don't. Don't get in the way of that exactly, that's how you can make motor oil profits okay and that's where the communication in the theme is requires people to know what to exit, very.
Much Very much so how, much is the technical aspect, of I can give the charts and deciding on, balance. Into. Investment, is, that important or yeah, I may be to look for it from an entry and exit perspective, definitely. Especially an exit like, we. Might use some other technical indicators. To. Go on an exit decision if. We think something is moves too hard too fast and, I think you know there's, a good network matter for content, today and we're kind of taking that and then possibly re-entering, watching the technical levels. But. For the most part again, looking. For the strongest asset classes whichever they know and. You have people that are specialized, to what they call assets and similarly like maybe we search for the metals yes it all pretty, much makes nuts, not makes we have people who specialize in the fields right people to be cross cross, skill because educated, and work work with each other and you know if there's someone who's stronger an area we want them to work with someone who's weaker so we can build the, overall, level of the team only. As good as the weakest link. But. In, saying that we you know we do like people to be able to be across all the portfolio's across all of our investments. But, there will be leaders, in each, of the specified fields with a portfolio management client facing research, technicals. Covered. Mm-hmm, is, there any, time couldn't cover it I'd like to. Talk about anything if you feel that people should know about this industry, you know. The. Industry. Is. Moving, into another level specifically, with regards to retail retail, advising. We're. Moving, into another phase of regulation. And regulatory, change. That. For us is gonna. It. Made me nervous to know challenges, that are ahead for us and they're going to be challenging for anyone moving into industry now then we'll have to face what that's just gonna be them all with.
Regards To regulation, necessary. Regulation, we've depending. On what it is that comes through but, nonetheless. A, lot. Of it is just based on, making. Sure that your boxes to check by usually it tastes across in your eyes dollars and. Trying. To maintain. Your focus on what you're actually supposed to be doing for the client. With. Regards to, generating. Wealth and preserving capital don't. Get the most important thing is preserving capital. That. Focused sometimes you've. Got to try and maintain that focus physically, in, the face of in a regulation, you need to be, aware of mm-hmm. So that's just it's, it's, easy in this industry what I'm able to say we're, focused on this smaller business, regulations are doing it forget about the client still trying to maintain our focus here on the. And. It doesn't think the elements like that this is love trading, and investing involved but it's also a lot about comedian like doug liman communicating, with clients is. How does that work, is there someone you went down on a frequent, basis yeah yeah. So we've got we, have our managed discretionary, accounts and be part of what we do is buy some more discretionary, glasses and, that, baking done we're, still trying to be as where it's possible, that. You, can't just take the clients for granted but there are discretionary passes that you need to actually communicate as, much as possible. To. Obviously. You need to tell, them what you know what's going on what, the results are but but also to just communicate with the model the. Way that you would any client and. Then we've got directly, managed accounts. Individual. Accounts. This. Is a fairly like. Formal. Communication, or more the business both aspects, you know from an individually managed account of perspective, we're touching bias emails, text messages guys, in the comments that way but.
A Lot of time which one of my you, know where we can. Or. Even face-to-face with clients to review portfolios, regularly, so we like to we, do for more reviews of people obviously as regulation. Stipulates, we, are an annual basis or a quarterly basis or whatever it may be but. We like to do as much as we can so the face to face where possible this isn't a robot advisory, firm. This. People here in this you know finds a bit was well so you, know that's that's the idea we try to to, keep that relationship strong, its communications, strong let, them you know let them know what we're doing and why we're doing it, and. Again you know it seems we have ideas, challenged, by our the portfolio managers on the floor acquired, challenges and ideal we need to be able to speak to to, why we're doing it and validate our decision making process within as well because at, the end of the day we are a customer the ends of their wealth we take that pretty seriously yeah, how, do you know the tough time electronics. Is it the same thing as a normal period of wins or a different looks. Like so high a. Price. To go down yeah, obviously, people, have, different, different. Clients have different. Timeframes investment, obviously so, you know we juggle, the strategy or the allocations of different strategies around that, investment, time variety so, you having a younger client one of these lifts to work and continue, to generate income high, level of risk their strategy may not different from someone who's more you know transition into retirement and. Looking to go about the income stream so there's there's, different avenues and different, ways of dealing with it but you know this markets. Bond markets, go down it has a large extent over five you, know you need to manage that risk appropriately, and, then obviously keeping discussion, with with that alliances to what. We're doing while we're doing it what. Does it takes is someone to invest. A year the fund the day I like department has to have to be comfortable with like the risk involved or yeah, do you like require the devil income to invest or how's that work yeah, we do all the above a man who, made a client, obviously go through a process to establish where. They fit within within their vests so, as I said as younger, clients, have a higher tolerance to risk you know there there's some time when it's much different to someone who's you, know who's of the tail. End of their, working, life and. Then we fill out this profiles, together with workup and development and investment mandate, on, something that we think is appropriate for them they're they're comfortable and understanding, with and. Then that sort of that forms the basis for they are aggressive manner and how we're going to be investing the money thereafter.
Yeah. How, do you find out the reason for calls someone or, they. Can tell you to death to find out how much did you really themself. Yeah. I mean so we work through with client, questionnaires sobbing establish you, know some basic questions as to what, their risk profile with me mmm, and, you don't think that you have here for, your company or like a general thing yeah, financial, question is such as this is a pretty common original. Advisory, especially. When dealing with an, MDI or managed discretionary, account its star portfolio. So. Yes. We have our own one but it's not unique to be in this race it's. A pretty commonplace awesome. Cool how, can I can find you no magnets you or we talk to you. It's. 7:01. What. You know you should do yeah. Yeah. Just focusing. On just. Focusing, what actually what actually helps us to go so far tonight and. Just. Getting, out of their own way is, one of Danny's expression. That's just. Turn number the number of things that people do that just puts own row boxes by yourself and getting to you from getting to your goals when, you realize just tell me how many of those things that you do and, you start. Taking out of the way this, light appears. So. Yeah that's. In. 2000 on time it's awesome yeah and I have a small question asked, all I guess in the podcast before and I asked you five before so maybe you, can answer my, question video traders, think what this was but how to get try as traders what. Would that one piece advise me miss ginger says it's gonna have your right way and keep, it simple don't overanalyze. That's. That would be my advice there get a good idea right away, the. Decision the good the good outcome or the right decision is usually there if you you know if you. Get. Out of your way to find it enjoy. This. I think you guys appreciate yeah. Thank. You kids can we catch you guys pretty soon.