Episode 89 ... Blake Morrow (80:41)

Lives in Phoenix, Arizona
Went to college after getting out of military
Mid-1990s, stockbroker friend asked him to join firm since he had gift of gab
Got the job, got Series 7 and 63
He was good at selling over the phone but he wasn't interested in the job
Stockbroker friend sat with market maker for several months, learned to trade
SOES Bandits from Block Trading made front cover of Inc. Magazine [I remember it well]
Went to Scottsdale office of Block Trading and started day trading
Lost 60% of his account in first six months, rich guy had staked him
Turned things around, did well for himself [doesn't say how?]
Moved to Dallas, opened a day trading office
Sold direct access trading company to Wize Trading Group
Been with Wize Trading Group ever since
No Pattern Day Trader rule when he started
Was using 20:1 margin in the early days
No one traded from home, didn't have the technology, would go to an office
First book he read was Mark Douglas' Disciplined Trader
Rich guy who staked him also paid for Blake's education with various chartists
Rich guy wasn't too alarmed when Blake lost 70% of his money in six months
Blake was 26 or 27 when he started [born 1970?]
Dot com boom bailed him out, Blake did well, rich guy did well
Blake ate a lot of ramen noodles, peanut butter, and bread during lean times
Mom had a rental property in Phoenix which she let him use at favorable rate
If you want to trade for a living, can't be stressed out by the money
Blake was young, no family, no kids, could take a lot of risks
He was lucky to have caught some dot com stocks which gave him a cushion
Backbone of his trading: patience, waiting for the market to set up
No trader education back then, he just learned by trial and error
Let the trade come to you, don't chase
Risk-reward a concept he picked up early in his career
His buddy who sat next to him acted as drill sargeant and trading companion
Learned by studying charts, which were taboo at the time
2003-2004 stopped trading stocks, started trading currencies exclusively
His analysis isn't fancy, same as 20 years ago
Matches up indicators and trendlines which causes him to act
Looks for pullbacks, Fibonacci levels 38% 50% 62%
Matches Fib levels with trendlines and indicators like the RSI
Trading isn't glamorous, it's boring
Everything in nature has some Fibonacci relationship
Human emotions also have Fibonacci ratios [things that make you go hmmm]
Fibonacci retracements and extensions places where human emotions are
Fibonacci confluence or clusters are things you look for
He wants to buy what people are selling and sell what people are buying
Managing risk an important part of trading
Looks at Fibonacci clusters as a "zone"
Japanese candlesticks are valuable tools, esp. the daily candle
Loves trading the markets, in front of screen 15 hours a day
Gets up extremely early since he's in Arizona
Has company called Forex Analytix with Nicola Duke and others
He's Chief Currency Strategist at Wize Trade Group, hosts webinars
Markets not like a bike, if you get off, you won't remember how to ride it
Have to stay engaged with the markets or you'll fall out of touch
Likes ForexFactory calendar
Likes ForexLive website
First question always: What is my risk? Where do you get out when you're wrong?
Don't risk more than 1% in a single trade
Don't paper trade, trade micro-lots instead
Have to feel the pain of losing $5
Save your money, you need more than the "minimum" to start trading
Practice using the platform with tiny amounts
Stay with big name currency brokers that are highly regulated
Swiss National Bank surprise decision wrecked some big UK-based currency brokers
Blake says some kind things to Aaron in parting
www.forexanalytix.com
Twitter: @PipCzar