Alan McGrath from CFD Traders Edge is probably one of the most genuine traders you will ever meet.
Alan would probably not like to be called a veteran CFD trader, but with almost 20 years of experience, he is one of the older sages of the industry.
He started trading CFDs in 2003 after quitting as a co-ordinator of charity volunteers at the Royal Children’s Hospital in Brisbane.
When he started, the bull market in commodities was taking off. He admits that at the time he would chase down anything that moved, a style he has since tempered.
“In the early days, I felt I had to trade everything,” he says. “The problem was I was scared to walk away from the market, worried I might miss out on something. But you have to remind yourself the market will always be there.”
McGrath turned an initial $2000 into a six-figure sum within two years of trading, with profits snowballing as his equity grew. It was possible, in those days, to regularly make “five-figure weeks”. Before the markets fell during the GFC, many successful traders thought this kind of money was the norm. “If you make substantial profits for a long time in a bull market, then that all ends, it’s hard to accept a more modest wage.”
He trades only ASX share CFDs as he says they provide sufficient volatility, and suit his style and lifestyle more than the more fashionable CFD areas of forex or commodities.
McGrath’s style is primarily classic day trading, or “churning” as he calls it, and often he will make 100 trades a day. He admits sometimes not trading is hard to deal with, but essential if conditions demand it. “You have to sometimes realize that the market is just not worth it”.
“If the conditions don’t suit your style, and it takes a week to decide which way it’s going, then don’t be afraid to wait a week.”
“It doesn’t matter what you trade as long as you learn, study and continue to hone and improve your skills, discipline and money management.”
Alan’s trading uses:
You can follow Alan on Twitter @ alanmcg
Watch Alan interviewing a newer trader named Chase Galbraith. Chase has had a fantastic development of late and is well on his way to becoming a professional full time day trader.