Tim Bourquin of TraderInterviews.com recently interviewed Steve Palmquist, the author of How to Take Money from the Markets: Creating Profitable Strategies plus Six Ready-to-Use Systems.
Click the play button below to hear the interview or read the transcript below.
TraderInterviews.com: Hello, everybody. It's Tim Bourquin. I'm here today with Steve Palmquist and Steve got a new book out that we're going to talk about. He's been around the trading game for quite some time and he's got a website that he talks about some of his trading strategies and things that he's doing. The book is called How to Take Money from the Market. It's also got a subtitle that we'll get from Steve in just a minute, but we're going to talk to him about his overall approach to the markets and how he finds good opportunities. So Steve, thanks very much for joining me on the phone today.
Steve Palmquist: Well, it's good to talk to you.
TraderInterviews.com: All right. Give us that subtitle. We talked about it before we started recording, but it was kind of a long one. So why don't you tell us the full title?
Steve Palmquist: Well, the full title is How to Take Money from the Markets: Creating Profitable Strategies plus Six Ready-to-Use Systems which is quite a mouthful, but then trading takes a little bit of effort.
TraderInterviews.com: Okay. So let's talk about your overall approach to markets and how you've kind of come as your overall strategy and methods for finding good opportunities then we'll talk a little bit about the book as well. So what kind of trader are you? Are you a short-term day trader or swing trader? Kind of talk about that and the markets you trade.
Steve Palmquist: Well, I'm a profitable trader. I don't try to focus on a particular market or a particular holding time. What I do is I look at the market and say it can only really do three things, right? It can be trending up, it can be trending down, or it can be a trading range moving sideways, and I found through testing hundreds of different trading systems that different systems work in each of those market conditions. So the first thing I do is look at the market and if it's trending up, then I open my trading toolbox and I pull out the systems that have shown good results in up-trending markets and if it's moving sideways I open a different tour in the trading toolbox and pull out different systems. But the key is to read the current conditions and use a system that has been tested for that environment.
TraderInterviews.com: How about the specific market or markets that you trade?
Steve Palmquist: I have a database of about 2,500 stocks and what I do is I trade patterns out of those stocks. So I'm looking for a particular price in volume pattern and I don't particularly care what the stock is.
TraderInterviews.com: Okay, and the systems that you talk about, either the six systems or any system, are these automated totally or are they just giving you signals and then you actually decide which signals to take?