Steve Burns - The Most Helpful Traders on Twitter: 30 of The Most Helpful Traders on Twitter Share Their Methods and Wisdom

Chief Investment Officer atWaverly Advisors Author of The Art and Science of Technical Analysis.

Name:

Adam Grimes

Website:

http://adamhgrimes.com

Email:

How long have you been activeinvesting or trading in the financial markets?

20+ years

What year did you becomeactive on Twitter?

2009

Services you offer:

I publish daily and weeklyresearch and market ideas for traders in stocks, futures, and currencies, ontime frames ranging from intraday to long term investing.

Which markets and instrumentsdo you trade?

Stocks, currencies, futures, andoptions on stocks and futures.

Why did you choose thesemarkets?

My trading style evolved over theyears to cover pretty much all liquid markets. I find an edge in all thesemarkets, though they require different approaches.

What type of trader do youconsider yourself?

Swing Trader

Do you have a target for youraverage annual returns?

No

What time frame do you preferto trade in, and do you ever change time frames?

Ideal time frame for me is 2 daysto 2 weeks, though I spent many years daytrading and also do a lot of work onmuch longer time frames.

What is the maximum drawdownyou are willing to tolerate in pursuit of these returns?

Depends on specific approach. 15%is a good target for some types of trading, but some (trend following) requiremuch more willingness to endure larger drawdowns.

What technical indicators doyou use to help quantify buy and sell signals?

I use Keltner Channels and amodified MACD, but these are secondary to the patterns that I trade. I don'tuse indicators to mark entries.

Are there any chart patternsyou use for trading?

Subjective chart patterns can beuseful, but I'm not sure you can build a reliable program on them. I've gonebeyond chart patterns to quantify a number of other types of patterns in themarket. These are patterns that you could see them on charts, but it's not atall what most people mean when they say "chart pattern". I think ofmy approach as a blended quantitative/discretionary approach.

What was your best tradingyear and what did you learn?

2007-2008 were good years. Inthose years, I learned that probabilities and patterns are reliable guides,even in market extremes. This time could be different, but it probably isn't.

What was your worst tradingyear and what did you learn?

Worst was when I started becauseI didnt understand risk and leverage. Switching markets/time frames alsocaused some bumps along the way.

How do you quantify your entryinto a trade? What parameters do you use?

I usually enter on a breakout(i.e., with short term momentum) using what many people would consider a fairlywide stop (in the neighborhood of 3-4 ATRs on the trading time frame).

How do you manage your exitfrom a trade? What parameters do you use?

I usually exit part of a trade ata predetermined target, and then the rest on some type of trailing stop. I'llalso add to a trade and finesse exit a bit more at times.

What is your favorite tradingquote?

Most trading quotes arepotentially harmful, especially the ones people throw around. "The trendis your friend." (only at times and only in certain kinds of trading)"Your first loss is your best loss." (Again, only in certain types oftrading) "Only price pays." (Patently false and dangerous because itmakes us ignore other *costs* (the flip side of "pay") of trading:volatility pays, time pays, carry pays, factors pay, relative performance paysif properly hedged, etc. It's hard to find trading quotes that applyuniversally.

"Know where you'regetting out before you get in." Bruce Kovner is one that might applyto almost everyone.

What are your favorite tradingbooks?

There's something of value inevery trading book, but I don't read many trading books anymore. The ones thatgo "bar by bar" I think are highly misleading. The market is noisierthan that. It looks good in hindsight, but it can't really be applied in realtime. I have a reading list on my website, and it's extensive. I think peopleshould focus on building a strong background in finance, accounting, economics(even though most of those topics are minimally applicable to most types of trading),and a stronger background in statistics (essential). In most cases, tradingbooks oversimplify. Time would be better spent understanding how to learn andunderstand the market.

Who are your favorite tradersto follow on Twitter?

I find social media to becounterproductive for good trading. Twitter, in my experience, magnifies theemotions of trading, in a very negative way. Groupthink, hostility, pride, ego,all of these things are more important on social media. No one wants to hearwhat they need to hear (understand probabilities, manage your risk, you'regoing to be wrong a lot so move on, etc.) on Twitter. The quote I think of whenit comes to finance social media is: "The best lack all conviction whilethe worst are full of passionate intensity" (especially the last part ofthat. :)