James Mound is a veteran futures and options trader. He is President and owner of JMTG brokerage, which offers the services of a small custom tailored brokerage outfit with all the benefits of one of the largest providers of introducing brokerage firms in the business.

It was a pleasure to talk to James about how he identifies trading opportunities. This is the second part of that interview.

Optionetics: Are your trading systems geared more toward long-term strategies or short-term strategies?

James: I do not believe in trading systems in terms of automated computerized systems. I do believe in having an approach that is nimble to market conditions. It is important to acknowledge your strengths and weaknesses as a trader and for me I excel at price forecasting in a 2 week to 3 month time frame.

Optionetics: What are some of the key rules or factors that you consider before selecting any potential trading opportunity?

James: While I look at technicals (entry and exit targets) and fundamentals (trend and seasonal/cyclical analysis) I am primarily a trade design trader so I look for the risk/reward/probability balance in a trade design to offer me a statistical advantage.

Optionetics: What are your favorite markets that you like to trade and track with your analysis tools?

James: My favorite market is a volatile market. While I trade all U.S. commodity sectors, every trader has their personal favorites and mine are coffee, cocoa and rice. These are relatively thin markets but have such interesting fundamentals I am drawn to them.

Optionetics: What is your most memorable trade?

James: A good trader has a bad memory when it comes to trades, as I feel it is important to begin every day as if it is your first. However there was this one time...

Optionetics: With all the different technical as well as fundamental analysis tools out there how does a new trader avoid information overload or "analysis paralysis"?

James: That is a great question. I have had the benefit of seeing thousands of trading approaches over the years via my clientele, but not everyone is lucky enough to be enriched by other trader's experiences. I would focus primarily on understanding the statistical relevance of trade design and the fundamental and technical analysis skills will come over time. If you are good at designing trades then you remove emotion, control risk and have a plan and those are some key attributes to have as a new trader.

Optionetics: Thanks, James, for speaking about your trading approach with our Optionetics reading audience.


To read previous installments of this interview, please click here.

Jeff Neal 
Senior Writer, Options Strategist & Profit Strategies Radio Show Market Correspondent
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