|
A trader and system developer exposed! Interview with Adam Burgoyne from 5EMA's Forex Trading System
Click here to visit 5EMAs Forex Trading System Welcome to my exclusive interview with trader and system developer, Adam Burgoyne. For the first time, you will hear Adam answering questions about his background, introduction to trading, personal style and opinions about trading. The interview is now playing on your computer so please turn up the volume on your speakers.
Click here to visit 5EMAs Forex Trading System Hello everyone, this is Avi Frister and I would like to thank you very much for joining me today in this phone interview I’m conducting with trader and system developer, Adam Burgoyne. 
I have known Adam for some time right now and I can truly say that Adam is one of the successful traders I know that loves to share his views and experience with others - something that I've found very rare in this industry and actually this is the purpose of this interview, this is why I decided to create it, so that my clients can listen to opinions from somebody who has been around in this industry for quite some time as you will see next and, well, I hope you benefit from this interview no matter what level of trader you are. Ok, let’s go on and see if Adam is on the line: Avi: Adam, are you there? Adam: Yes - hi, Avi. Avi: Hi, Adam I thought I lost you for a moment - I’m glad that you are on the other line. Adam, I would like to thank you very much for taking some time especially on Friday night to conduct this interview. I know you are a busy person and I would like to thank you very much for that. Avi: - Ok, Adam - let’s start with our interview. Can you provide our listeners with some general background about yourself? For example, how old are you? How many years you’ve been trading? Where in the world you’re located? Why you decided to enter into the world of trading? Etc. Adam: Yeah, no problem. I’m 42 years young and I live predominantly split between the UK and Russia and I’ve been trading now for probably about 12 years, I guess. Although originally it was just supplement my income, I decided to enter as an occupation really because things are moving so quickly in the IT industry, which was my background, as a self employed consultant I was in the situation where I was needing to spend more time in the classroom which was non-paid time from my point of view and so income was suffering and I realised that it was relatively important that I got myself something to do that didn’t need quite so many formal qualifications Click here to visit 5EMAs Forex Trading System Avi: Ok, great! You know many traders have a tough time when starting in this business - this is something very common that I see amongst my traders and I have been seeing it throughout the years, you know… Can you tell us, how was your beginning? Click here to visit 5EMAs Forex Trading System Adam: Yes it was certainly very, very different to what most people coming on board now would ever experience. I started out paper-trading commodities futures and, at the time, things like online trading platforms were just the stuff of Star Trek. When I wanted to get prices or if I wanted to place orders then it was a case of picking up the phone and speaking directly to a broker, which had its benefits, it had its down sides. One of the downsides, I guess, was the fact that it was $50 commission on every contract I traded in addition to the spread so you certainly had to think carefully before you entered a trade or you’d be wiping out any kind of account you had just in brokers commissions so it was certainly a different kind of environment and the move to the web has made things just so much better for everybody so, yeah, I think that was probably the worst side of starting when I did.Avi: So, can we understand from that you’re sort of a dinosaur? Adam: Pretty much - yes, yes indeed. Click here to visit 5EMAs Forex Trading System Avi: Ok - ok, Adam… a young dinosaur though because you’re 42 years old. Ok, let’s go on, what markets did you start trading and what markets do you trade today and why? Adam: My initial education was commodity futures and the first trade I ever took was gold and that probably didn’t do me many favours - first trade that I placed made money and that just reinforced the belief that I was an invincible trader but fortunately the next 5 trades kind of straightened me out in that respect and I realised that it was just as easy to lose money as it was to make it. I’ve traded pretty much every commodities futures type of contract. I have to say I stuck well away from the energies contracts apart from one that I’ll probably touch on a bit later but generally it was things like wheat, hogs, cocoa… I also really got into T-Bonds - traded those very successfully for quite a while so, yeah, quite enjoyed that, but these days it’s pretty much almost exclusively Forex now, very occasional share deal but Forex where I am working at this moment. Avi: Well, actually, that it brings me to this very important next question – good that you brought that up. Expand, please, why exactly Forex, you know, everybody’s talking lately about Forex. Obviously, Forex is not something new it’s been around for many, many, many years, but why lately? Why have you started concentrating on Forex? Adam: Because of convenience I think. That’s really the big thing for me. It was great trading Futures but the market times were so restrictive. It was convenient from an hour of the day point of view… the markets opening in New York or Chicago we’re talking one o’clock, three o’clock in the afternoon for me so that was fine, but it did mean I had to be somewhere at a specific time so I prefer Forex because we’ve got the 24 x 5 market trading hours and pretty much there’s always some kind of movement going on so it doesn’t matter if I go out for the day – well great, I come back and I’ll probably trade in the evening. If I want to burn the midnight oil then maybe I’ll be trading the early hours of the morning from my point of view. It doesn’t really matter. Click here to visit 5EMAs Forex Trading System Avi: Ok, let’s talk a bit about your approach to trading. Can you tell us please what type of trader you are? Are you a swing trader or a day trader and I’d appreciate it if you could expand on why you’re this or that or maybe both. Adam: Yes, I’ve pretty much now moved into the realms of Day trading. I think predominantly because of my Futures upbringing if you like - the desire to be out of the market overnight still has a bit of a hold on me… as you know from your own early experience, when you’re trading the short market hours contracts like the Futures, you can be in a trade and be hit really hard the following morning when the opening bell goes just because of the opening move. And so I always wanted to try and sleep well at night and I worked very hard to make sure that I was always closing positions, wherever possible, and that’s gone through into Forex trading, so although we’ve actually got the 24 x 5 market times, I still don’t go to bed with open trades. Avi: I see, ok. Great. Hey, Adam - we talked a lot during these last several months and I know you’re a good trader, no doubt about it, but you’re also a very gifted system developer and I say that because I’ve personally seen your systems which are extremely good - I mean, very logical, well based systems and I would like to talk a bit about that... can you tell us a bit about the process you use when creating the systems? What is important? What do you concentrate on? Adam: Yeah, absolutely, pretty much what I tend to concentrate on is the observation of market behaviour… pretty much like yourself, with your mechanical systems, you’re looking for things that occur regularly and that’s basically what we do when we’re creating a system - we look at the particular market and we look at its traits and then, if we can find something that occurs frequently enough and profitably enough, then we’ll study it more and push that around and get it into a workable system that we’ll then trade for a while to prove the concept, and then the difficult bit is not so much creating the system itself, but explaining it for others. Avi: Exactly, yes - the educational part. Adam: Yes Click here to visit 5EMAs Forex Trading System Avi: So, just before I go to the next question, Adam, your systems are mostly… I know but I just want my listeners to understand this… I know you’re a day trader so your systems are geared more towards Day trading or Swing trading? Adam: Both in fairness - the fact that I personally don’t like to hold positions open is not so much an issue… if there is a strategy or a system that we can identify and prove that it works and then teach people how to trade it, that’s fine. So, we have the 5 EMAs system which is predominantly day trade and we have the Divergence System which is, if you like, more of a swing trading system - it’s designed for trades that run for several days at a time. Avi: Ok, Adam, thank you very much - that was a very full answer… I appreciate it. The next question is something I feel is probably one of the most important elements, if not the most important element, in being a successful trader and the issue is money management, obviously, and I would like you to discuss a bit what’s your approach for money management and how important do you think this area is for a trader’s success? 
Adam: It’s absolutely critical because at the end of the day, without money management, your account is not going to stand the test of time. If you don’t manage your money properly then you’re going to be losing larger proportions of it than you should be, based on the account size, when you go into new trades and they don’t work out as you expect but also, if trades are going your way, you need to use money management to decide on how to scale up your lots correctly to give you the maximum profitability. The main thing that I try to get across to new people - because I understand that money management is not top of THEIR priority list is really just the principle of “Live to fight another day”. Click here to visit 5EMAs Forex Trading System Avi: Yes - exactly. Adam: Don’t just keep throwing money at the market in a hope you’re going to get rich. If things aren’t working out you’ve got to stand back and analyse why they’re not working out and then adjust your trades to suit what the current state of your account is. Avi: Ok, yes, great! I love asking this next question on interviews and I love asking it even when I’m not doing interviews because, you know, this is a question that fascinates us as traders… ok, I know that during the years you’ve made many trades… can you mention any specific trade that stands out from the rest and why? Adam: Actually two. The first one has to be my very first trade which was my Gold trade - it’s like girl friends, you know - you always remember the first one! The other one that really stands out is… I said earlier that I really never ventured into the energies futures contracts. I did make one exception - I went into a natural gas position, about 30 minutes before the Enron news broke… Avi: WOW! I hope our listeners know what happened with Enron. Adam: It was, well, we’ll say “educational”! I turned around to make a cup of tea and by the time I sat back down at the terminal, I had $6,000 hole where my account use to be. Click here to visit 5EMAs Forex Trading System Avi: Ok... Ok. Adam: So, I think that one really stands out as the one that bit me in the backside. Avi: Wow - That is one of the good ones I’ve heard, actually. I’ve never heard actually of Enron trades – people who lost money on that particular timeframe but, ok, that’s a new one! Adam: Yup – somebody up there doesn’t like me today - that’s for certain! Click here to visit 5EMAs Forex Trading System Avi: Alright, Adam - thank you very much. I don’t want to take more of your time and I know you’re busy and, again, it’s a Friday so I would like to wrap up this interview and, again, thank you very, very much for taking the time to share a bit of your experience with my listeners. And that’s it. Adam: No problem, thank you very much, Avi, you’re very welcome. Avi: Goodbye. END OF INTERVIEW Information, charts or examples contained in this lesson are for illustration and educational purposes only. It should not be considered as advice or a recommendation to buy or sell any security or financial instrument. We do not and cannot offer investment advice. For further information please read our disclaimer. |
