Arthur Ullrich

When I got started trading back in the late 80s there were no on-line programs. I didn’t work for a trading company or a brokerage house so I had to get it on my own. It was tough. I had to stay close to home in Southern California as I had an ill wife. I was into the trading books and local seminars. I learned several things real fast. You do not learn to trade from books. If you could there would be millions of successful traders and few trading coaches and mentors. I wanted to make a living trading and Day Trading looked like the way to go. My initial efforts were disastrous. I had little or no trading education. I would have good days and bad, but the bad days were taking back everything I made from good days and more. I had a few on-line friends who were doing better and they tried to help me. I learned something from each but not fast enough to keep from losing my trading account. After having to sell a home I changed my approach. Simulators had not come along so I had to paper trades for months while I tried to work out the mistakes. The S&P; at the time was $500 a point and that was really tough. Over time, and remaining in contact with many traders I met on- line I began to share my ideas. That was how it started. I formed a business in 1996 and put up a web site. Within 6-8 months I had 35-45 students and finished my first Manual. The teaching method was to go over the day’s trades every trading day. We had to read the price action and know and understand how to read the trends. Today, technology has changed things and made communications better and faster. We still meet each morning for a Morning Briefing and discuss the expectations for the day then meet again after the close and go over the entire day, bar by bar. The Web site at www.tradetutor.com can tell the struggling trader more.

Could you tell us a little about yourself?

I grew up in Texas and married very young. We had 3 children while I was in the US Air Force. I left the service on 1968 while we were living in California. I had been a member of the National Association of Underwater Instructors for many years and opened their National Headquarters in California. I served that organization for about 11 years before going into the real estate business. I worked my way up to Executive VP and CFO before retiring after 23 years with the company. It was in the late 80s when I became interested in trading Futures.

How did you get started trading?

I had been reading a great deal about Futures before my retirement and began to study seriously. My interest was in Day Trading. I quickly found out I did not like the exposure of holding over night. My focus was on short term trading during the day. I experimented with currencies, Metals and Financial instruments and settled on the S&P; 500. That was before the e mini and the big S&P; 500 traded at $500 a point. That was also before on-line trading and the time between your broker getting you into a trade or getting you out could mean big bucks. It was very risky and frightening. Unfortunately I did not have a good trading education and lost a great deal before finding my way.

How long have you been trading now?

I got started in about 1988-89. It was rough without knowing the ropes. I had some help from others but it was not enough and it was not consistent. By 1993 I had lost my trading account and had to sell a house to get back in the market.

What do you like best about trading?

I started trading because it was something I could do from home . I used to tease that I had to walk to work in my house shoes. It made it possible to take care of my ill wife and gave me total flexibility. It also meant that If I was careful I could make a good living trading.

What markets do you trade?

I started trading different many different things. I was learning. I traded some metals and some energies and financial instruments. I found I needed to focus and so I stuck with the S&P; 500 and later with the Russell 2000. When the Russell moved from the CME, I remained with the S&P; 500 eMini. I learned that I really had to know a market before trying to trade it. I use the S&P; e-Mini as a teaching vehicle.

What style of trading do you use?

I trade and teach Day Trading. Getting in and holding as long as the price action is going my way. This means I can be into a position for a few minutes or for a couple of hours. I show my students how to set targets and take some profit at the target while holding part of the lot as long as the move continues.

What have been the biggest influences on your development as a trader?

I still credit my first mentor with much. He made me learn about me and how to maintain my discipline. I worked with Kent Calhoun for several years and learned much from him. Of course I have an extensive library and seek out new books and bright authors for ideas. My students are often the source of ideas. I always say I learn more from my students than they know. I think the Market is a wonderful teacher. It teaches you to pay attention and be flexible.

What is the one biggest lesson that you have learnt since starting trading?

Maintaining discipline. The moment I fail to be disciplined my trading starts to slip. I have to take the signal when it lines up. If I don’t it will run off and leave me or take equity away that I already earned. Additionally, my students will know at once. I have to be very consistent for myself and for them.

How did you get interested in coaching other traders?

When I was struggling I had many on-line friends. We tried to help each other. I have a great deal of experience teaching. I was a Technical Instructor in the Air Force for many years. I taught Scuba diving as an avocation and while in the National Association of Underwater Instructors I taught other instructors how to teach for about 10 years. During those years I lectured at 27 Colleges and Universities on teaching. While in the Real Estate business I taught Real Estate Finance for about 4 years in California, Oregon and Washington. Teaching comes naturally to me.

Do you focus on coaching of one particular area of trading, e.g. risk management / psychology or finding trades?

It does not serve my students well if I just point at a trade setup. We have to be well rounded. We actually start the day about 15 minutes before the open with an on-line Morning Briefing. This is when we identify the highest probability of price direction and note all the Support and Resistance zones. We all should know where price has the highest probability of going and what the underlying market conditions may be for the day. We go over a general plan before the Open every trading day. 15 minutes after the Day Session closes we meet again and review the entire day. We discuss the trend, the condition of the oscillators, entry signals, best method of entry, stop placement, stop movement, potential targets and the point where price action reverses. We then stop and discuss questions and some students share their simulated trades, how they read the price action , oscillators, trade set ups. All students are encouraged to have consistent winning trades before trading for money. If a student lost his or her discipline they explain and we discuss it. The session is recorded and students who were unable to attend the day’s Commentary Recording session can review the recorded Commentary later. The back commentary is available for the students to review as often as necessary.

How do you work together with your clients? E.g. phone / email / screen sharing?

Screen sharing mostly. There are always a few e-mail questions and that may take us back to screen sharing. Anyone can go here to see some sample Commentary Recording sessions: Sample of Commentary Recording sessions >> CLICK HERE. All students can call any time they need to talk. If the question is related to a specific price action we open an on-line meeting and we can look at the bars in question and discuss the best course of action. Newer students call more often. After a few weeks in the course they call less often, but they know they are welcome to call and ask questions.

What sort of results do your clients get after coaching with you?

After some weeks they feel far more confident. Those who did not follow my guidance eventually come around and even tell me they drifted away. I encourage them to take profits when available without leaving too much money on the table. Not everyone gets profitable. Some don’t tell me everything about their needs. Later, they will return and explain why they were not following what I was telling them . I wish I could tell you they all get rich and retire. However, trading is tough. Traders learn much about themselves along the way. We spend a great deal of time talking about the psychology and how their personal problems or situations impact their trading. As well as how their trading affects their lives. Most report slowly growing success as they work on understanding all the elements of price action as well as learning about them selves.

What is the most satisfying part of coaching traders?

There is a great personal satisfaction from helping others. There is a perspective gained from my own struggle. Lessons learned are easily shared. Even lessons that ended in my own failure years ago can help others. Perhaps most of all, many of my students become close personal friends. Some who are no longer in the course still keep in touch. I have many ex students who still write or call with questions. And sometimes there is just an e-mail to share a personal or family event. There is a chap in France who is keeping me up dated about his daughters accomplishments learning to play Classical guitar. A friend in South Carolina who sent me pictures of his first grand child, a trader in Washington DC I met in Texas who keeps in touch and many others. You are not just trading coach but often a life long friend.

What is the biggest but most easily fixed mistake that you see traders make?

I’m not sure not knowing how to read “reading price action “ is a mistake but everyone has to learn what the price action means, how to read it . It is a language all to itself. Once the trader learns to read price action everything changes. Then it is easier to know when to get in, when to tighten a stop, and when price is about to turn. Candlesticks help read the price action. And I do use and recommend Candlestick charting.

Do you recommend journals or other record keeping as an important part of trading?

Trading students must keep a personal Journal. It is a trading history, I diary of their feelings and attitudes. It is a most important record of their own personal behavior. It can become a guide of how to stay out of trouble. It needs to be a record of not just behavior but of attitude. If a trader is reading the price action incorrectly and takes a bad entry it can be the recording of how to avoid that misstep next time.

What are the most common issues that you see in your clients that prevent them from becoming better traders?

Attitude. If their attitude is open and willing to let the price action tell then what to do next they will be right there and go with the flow. If they have an attitude that they already know what the price will do next they will be in trouble right from the start. My own mentor would tell me: “It is the height of arrogance to think you know what the market will do before it does it.” Once I could read the price action the market would tell me what it was going to do.. One other issue: Many traders believe they can wait for a set up like they saw a few days ago. It is hard to get them to understand that they will never again see a day’s price action exactly like today. There are no two days alike. Never have been, never will be. So we have to look for a patterns that are similar to but never exactly like that pattern seen before. I strive to teach my students to read the patterns and rhythms of the market

What advice would you give traders who are just starting out?

You will need someone to guide you. A mentor, coach, teacher, someone who will work with you personally. If you join my course you will need a computer that can be dedicate to this process during market hours. You will need a data feed and charting software. ( I recommend TradeStation because all our software in written for TradeStation ). You will need the support of your family or those who live in your household to give you the space and time to undertake this task. This is not a home study course. It is a very demanding involvement that will take your concentration during Market hours. You will require a high speed internet connection. You do not need a trading account to get started. By the time you are ready to start with live trading you will need something near $10,000-$20,000 US to open an account. It will help you a great deal if you have the books mentioned below and have read through each. When you join my course I issue a 400 page Manual as part of the course. There will be plenty of time to read it and follow the self study guide before you begin. If you have read other books on Trading futures it will be a help.

What 3 books do you recommend traders read?

Trading for a Living by Alexander Elder, The Disciplined Trader by Mark Douglas. Japanese Candlestick Charting Techniques by Steve Nison and the New Science of Technical Analysis by Thomas De Mark These are just some of the best. There are really many others. .

Any other advice or wisdom from your experience in trading that you could share?

Making a living or even earning a consistent profit trading futures is not a quick process. It requires more time than one might expect. Futures are highly leverages and many people think they can just take this course and in just a few weeks or even a few months they will be able to retire with a hansom income. It just isn’t that way. Trading takes longer than one might think and is far more difficult than one might expect. That does not mean it is impossible If you are going to make the commitment to be a profitable trader go into it with reasonable expectations and a plan to immerse yourself in the learning experience. You have to learn about you and how your thought processes work. You have to be open to new ideas and willing to change. You must be able to focus on the market action as displayed on your computer monitor. You must be able to have to time away from distractions to focus and learn. Anyone can learn to trade profitably but there is a price to pay in terms of concentration. If you have further questions write me at TradeTutor@aol.com or Call 909-393-1205.