Trader Profile: Joey Fundora aka "DowntownTrader"

TraderInterviews.com: Hello everybody and welcome back to TraderInterviews.com. Thanks for joining me for another interview with another successful trader this week. We're going to be speaking with Joey Fundora, and Joey is better probably known as Downtowntrader. He's got a blog where he talks about how he's trading and what he's doing and the ways he's looking at the market. So, Joey, thanks very much for joining me on the phone today.

Joey Fundora: No problem Tim. It's nice to be here.

TraderInterviews.com: Well, I always start with this question. What kind of trader are you? What markets do you trade and with what frequency?

Joey Fundora: Well, I'm primarily an equities trader. I do trade some options. For the vast majority of my trades, I am an aggressive swing trader and what that means is I trade basically the one-, two-, five-day time frame. I will take a few day trades here and there, but I'm not a day trader and I don't really position trade too often. I will get into some trades sometimes like some other market setup on the longer term like commodities earlier last year. In the middle of last year, I took a couple longer term trades on commodities, but for the most part I'm really focusing on just a five-, four-, five-day move on equities.

TraderInterviews.com: OK, all right. Describe your ideal setup. With these swing trades that you're looking at, what's a trade that maybe one you could even explain from a previous week or something where it was a good trade, you took it, and it worked out.

Joey Fundora: The fist thing let me clarify, and one of the things is I'm purely technical straight. I trade completely on technical analysis. I don't look at fundamentals very often. I don't care what the stocks earnings are. I almost don't really care what they do other than what sector they belong to. And I don't fade moves, I don't buy breakouts, I'm kind of in the middle. What I'm doing, if I'm looking for stocks that are trending and as they pullback to an area of support and form some sort of limited risk windows, so either by trading into MA or trading into support, or even forming narrow range candles which is another thing I really look into, is I'm looking for the stock to pullback into that area and then the minute it starts to turn back up and then I have a small risk window, then I'll usually enter a trade in favor of the longer term trend.

TraderInterviews.com: Got it. OK. So, you're not picking tops and bottoms, but you're picking maybe short term tops and bottoms as they turn and maybe then continue on into the trend.

Joey Fundora: What I'm really looking to do is not by weakness, but I'm not trying to buy the breakout. I think almost breakouts are faded. Both upside and downside breakouts are faded by either a computer algorithms or institutions. So, what I'm looking for is a spot where maybe some weak hands have been shaken in a longer term strong trends, and then instead of trying to buy it up, support that on the way down. I just look for a few signs that the strength is returning.

TraderInterviews.com: All right. So, let's talk about those few signs. Well, I'm just going to ask you straight out then, what are those signs that would indicate strength is returning?

Joey Fundora: OK. So, a lot of times you'll see a stock get extended from either its moving averages or get extended from its base, and you'll see volume pour in and you may have a couple of high volume exhaustion days towards the top of a trend. So, what happens is the stock will typically start retracing. And for people who have been trading a while, you realize that retracement is actually healthy for a stock and as long as there's no signs such as the high volume distribution day or having a couple candles undercutting a couple weeks' worth of price action, typically that's something that's healthy, but a lot of either retail traders or weaker hands that have maybe been in the trade for a while start getting rid of their shares. There maybe even some foolish people maybe shorting stuff at the top. So, what I look for is a stock that pullback into an area that I feel that support and that support can be either a lateral trend line from a prior peak, it could be a moving average, it could be a few different things. And then at some point that stock will begin to show signs of a pip accumulating, and those signs can be very subtle or they can be not quite so subtle because you can never see a cup or candles where people will buy late in the day and have it form hammers, maybe you'll see a couple of bullish engulfing candles at a certain level, and those are little cues. So once you see that the stock is stabilized at that area, you can guess that that's going to be the support area and your line in defense is that's where the trade would fail if they were to cut those lows. So, once it does that usually it will form a couple of very narrow range candles as basically the bulls and the bears reach in equilibrium and neither side is really winning that battle, then once the price goes back above that, then you kind have a signal that the bulls have overtaken the bears at least in that area, and then you have a solid place where you could sort of just say, "OK, if it undercuts this little price cluster then I'm wrong," and if it doesn't then you have yourself your trade and you can either follow it up with a trailing stop or you can be aggressive with your targets, a lot of different ways to manage how you get out of it.

TraderInterviews.com: And you mentioned, if it's coming into a moving average in MA, what typically moving averages do you like to watch?

Joey Fundora: I watch like three or four basically. I don't think the moving averages are as important as the price action. I tend to use the 9 EMA and the 20 and 50 SMAs and it's just what I've been used to and for whatever reason I like the way those behave with each other, but in reality the EMA, you can use EMA, you can use VWAP which is volume-weighted average price. You can use Bollinger Bands, you can use price channels. It's not the actual number that you use or the average you use is not as important as watching the price action in that area.

TraderInterviews.com: And then the time frames that you're typically having on a chart, what are those?

Joey Fundora: I basically trade on a daily chart and I use weekly charts to take a look at the longer term trend. Almost all of my signals are based off the daily chart. I will drill down into the intraday charts, 15- to 30-minute time frame just to take a look at what the price action is happening, what's going on underneath, but for the most part most of my signals are based off the daily time frame and I will look at the weeklies just to make sure that I'm on the right side of the overall trend.

TraderInterviews.com: That's interesting. So even though you're only holding from one to five days daily and weekly charts even are important to you?

Joey Fundora: Yes. They're very important. I do think typically price tends to err on the side of the longer term trend, and a lot of times when you have surprises whether it would be a gap or a runaway move, it's typically in favor of what's going on on the longer term charts. So, I prefer to trade in that direction. Every once in a while you could fade a move against, you see something really extended, but for the most part for a typical swing trades I just want to stay in line with that weekly chart. Another thing is if the weekly charts, a lot of times, will show very strong levels of resistance or support that the daily charts want to show. And if you see a stock that has historically had strong selling at a certain level, it may have been eight or nine months ago, so it will not show up if you're only looking at six months on a daily chart, but when you scale back and look at that weekly chart and you see that last summer this box never made it past this and the summer before that, that level was also rebuffed then you sort of either if you're long you want to be very cautious in that area and if you're looking at the short then that could be a place to look for signals to setup.

TraderInterviews.com: Yeah. I think that's interesting that a lot of people seemed to be trading now on short term charts or they're making decisions based on maybe shorter term charts like a daily chart or even an hourly chart, but they're finding support and resistance as the close of the month prior or the close of six months prior, and those are the kind of things that would show up on a weekly chart so that seems to make a lot of sense. So, are you kind of looking for a basket of stocks that you'll get really familiar with and know where these levels are? Or will you trade the whole market depending on what's moving?

Joey Fundora: Yeah. I trade the whole market. I don't trade baskets and I don't limit myself to only S&P 500 stocks. I scan the markets every night using a product; TeleChart is what I use actually. And I'll run through anywhere from 3 to 600 charts every night. And the way the charts are making on my watch list is I'm looking for interesting action, and when I see a stock that I think is either a good setup or even if it's just to watch what the action is in that sector, I'll flag them into a list. So, I'll run through that list and everyday I'll either scan for volume surges one day or I'll scan for overbought stocks in another. Little by little, what I'll do is that I find stocks that are interesting or stocks that look like they're setting up, I'll flag them, and when I see things that I have no more interest, I unflag them and in that way I just keep that list at a steady 3 to 500 stocks, and then I go into other groups as well. Basically, what I do is I'll run through and I'll look for common themes across the charts I'm looking at. So, if you're running to 300 charts and you got 20 semiconductors and you see 10 semiconductor stocks that are setting up nicely, then you sort of got a good feel for what's happening in tech. And as you go through, you get very comfortable. When you're looking at that many charts every night, you get very comfortable with looking at the different groups and understanding what's happening with rotations just based on what's going on with this individual stocks.

TraderInterviews.com: Sector rotation knows big for traders so you really put a lot of weight on that, you'll find the sectors that are moving and then what, maybe find the strongest ones or making the most dramatic route moves in that sector?

Joey Fundora: I kind of go backwards. I don't necessarily seek out the sectors. What I do is I look at stocks first, and then I'll see some common themes occurring across a few and then I'll drill down deeper into that sector to see if I can uncover other stocks I may not be familiar with or other stocks that maybe setting up that are not on my typical list. And I do pay attention to where the money is rotating in and out because those are also subtle clues as to what is going in the markets and what's going on with the psychology of market participants. If you see money flowing out of aggressive sectors such as tech stocks or small caps and you see it flowing into utilities or you see it flowing into consumer staple groups, then that's actually a subtle sign that the market is actually shifting and becoming more risk averse and could be signaling that the market started to either take a breather or pull back then. And when you see in a deeper correction, you see money start rotating out of those groups and getting it to some of the more aggressive ones, that's also a subtle clue that things could be turning.

TraderInterviews.com: How many positions will you have on at any one time?

Joey Fundora: I don't hold too many positions even as a swing trader. As a swing trader, you can carry more positions than as a day trader, but if I'm carrying more than eight or ten positions I think that's starting to extend myself. I typically keep it under ten.

TraderInterviews.com: And a typical size for you on a standard position is what?

Joey Fundora: The way I size my trades basically is I don't use a standard lot size, I don't size based on a certain dollar amount. The way I do it like I take my trading capital and actually for each trade I only want to risk 1%, and what I'll do is it's not that I'm investing 1% of my portfolio into the stock and then let's just use round numbers to make it easy. So, say you have a $100,000 account, you want to risk a $1,000 for trade if you're doing the size in the way I size it, so 1%. And what you do is, if you're trading Apple, and let's say Apple is $200 a share I think, right?

TraderInterviews.com: I don't know, but it keeps going up.

Joey Fundora: Apple is $205.

TraderInterviews.com: OK.

Joey Fundora: So, if you want to risk a $1,000 you can basically buy, you figure out what you're stop is going to be on Apple, and if it's five points when you buy your 200 shares at five points, if it's 10 points you would buy 100 shares. So you figure what the stop is going to be, and then you size so that you're only risking $1,000. And you do that across a few trades and your position size and sort of takes care itself and if you're stopped at a five six trades, you're not going to wipe out your account, and where if somebody is putting 5 or 6% of their trading capital or whatever that number be if they're risking 5 or 6%. If you get into an unlucky streak of ten straight in a row, that's a pretty big dent in your account. And using this position size and you can weather some of those storms where you're either not firing all cylinders or you're not seeing what the market is telling you, and after a while it kind of fix yourself though.

TraderInterviews.com: And how long you've been trading?

Joey Fundora: I want to say I've been trading like eight years, nine years now? May be some more. It's funny I just listened to one of my old interviews and I think I started trading about 2001 or 2000, so it's been I guess about nine or 10 years.

TraderInterviews.com: All right. So, going back to the TeleChart, you take TeleChart and you are flipping through charts manually looking at them or do you have some sort of scan going that eliminates.

Joey Fundora: I flip through every single chart one by one. I do have some scans that I run. It's just to look for interesting stocks, but I really don't run that many scans. I run one scan that says, "OK, who had the highest volume percentage gain for the day?" So, it's not necessarily who went up the highest, but who had the highest increase in volume, and I look at the top 15 or 20 just to see if there's anything occurring, a very high volume reversal something that was in the news. And even though typically you'll see that during the day, a lot of times you'll see stuff that sneaks in that is kind of out of the news and I'll do that. But for the most part, what I'm really doing is I'm going one by one by one over those 300 charts. And then I have other groups like I do look at the IBD 100, which is Investors Business Daily. I'll go through those hundred charts typically every Sunday and then maybe like every Wednesday. I'll go through that twice a week and I'll go through the NASDAQ-100 every once in a while and I'll through certain groups, but for the most part, I got my core watch list that I review one by one, and then a couple other smaller groups that I watch.

TraderInterviews.com: OK. Are these all daily charts?

Joey Fundora: All daily charts.

TraderInterviews.com: So, you're flipping through charts on daily charts, you've got your 9 EMA, your 20 and your 50 SMA on these charts and you're looking for something that's maybe coming into that with the right volume profile and that would be something you'd key on.

Joey Fundora: Yes. I do have a couple other indicators I watch. They're sitting on my chart, I don't necessarily take signals off of my indicators, but I watch the MACD histogram because that just gives me an objective view on momentum. So, a lot of times, it's something that traders need to be careful of. You project your own feelings about a stock or your own feelings about something on the chart without realizing that you're doing it. So, what I do is I use the indicators to keep me honest, on what the trend is. If I see the MACD histogram is declining for 10 days in a row and I see stochastics is also rolling over or actually stays towards the bottom, it keeps me honest that the momentum is clearly down and you don't really have business getting in until you see that shift, and I won't necessarily take a trade on the stochastics crossover. I won't take a trade on the MACD break above zero, but I do have value and I do get value from just watching what the indicators are telling me in a stock.

TraderInterviews.com: Right. And then let's talk about execution. Let's say you've narrowed it down to one or two that look really good, you're going to trade these today, how will you go in and find that right price you want to get in at?

Joey Fundora: Most of my decisions are made ahead of time, so if I'm looking at a stock that has made a couple narrow range candles at support, so what I'm saying is I'm going to buy, if it clears that level on the daily time frame it clears that level the next day, then I will buy and set a stop below that area. Whether it would be a mental stop or physical stop I know that I'm going get out of that level. So, my decisions have been made for me, so what I'll do the next day, I'll take a look at the open, hopefully it doesn't gap. I don't like buying when it gaps over my entry level because now you're stuck in a situation where you could easily pull back to fill that area or completely reverse based on what the market is doing, but if the market opens regular and that stock trades up to that level and trades through it, and I look at the intraday and everything was good, I'll take that intraday right there. Normally, if the stock gaps up and then pulls back into that area that's when I'll drill it down and see the intraday charts and see if I see a reversal intraday where I would take it back, maybe get in on an intraday signal as long as the daily signal is in tune with what the intraday charts are telling me. But all my decisions are made on whether price seeks out a resistance level on the daily chart, therefore, giving me a clear level so I can say, "OK, I'm wrong. How it gets back unto this area."

TraderInterviews.com: And how about that stop because a lot traders have a tough time finding how far away from that support level or resistance level to put that stop so that you don't get washed and rinsed taken out only to have it go where you thought it was going to go. So what do you do to kind of avoid that?

Joey Fundora: It's actually a very good question and it's important for traders to be cognizant of how you're setting your stop. The biggest thing and how I set my stops is not as important as how I set my stops compared to what my targets in my trading system. Since I'm taking a one- to five-day trade and I'm being very aggressive with my targets, I can be very aggressive with my stop, so I'll set my stop typically if I have a very small candle, I'll set my stop and again it depends on the size of the stock, but let's go to Apple again. If Apple set a narrow range candle I guess from a $3 candle, from 203 to 205, I would set my stop maybe at 202.89 or something. So, I'll make it 10, 11, 12 cents under that level that I expect. So, if I'm risking maybe a dollar and I'm trying to target three or four dollar gain, so I'll set a stop very tight because I'm trying to be very aggressive with my exit. Now, what I see the mistake a lot of traders make is they'll set that stop at a dollar, $2 is very tight, but they're trying to get a two-month move out of it, and if there's just too much noise in the markets for you to expect to get a three-month trade out of a stop that really is almost an intraday stop. So, I think the key for traders is to understand what they're trying to accomplish overall, so are you trying to capture a three-month move. If you're capturing a three-month move, then you need to be able to weather some pullbacks because the stocks don't go straight up for three months. They will go straight up for four to five days if you time it right. So you just need to be cognizant of what type of trade you're trying to make, and then have your profit taking how do you stop loss complement what you're trying to do.

TraderInterviews.com: Do you track how many percentages of your trades are winners versus losers?

Joey Fundora: Yeah. I do keep a journal and I've actually been kind of lax with my journal for the last like couple of months, but historically I'm actually very close to 50%, maybe 48-49%, but I think as a swing trader a lot of traders think you have to hit 60, 70, 80% of your trades to make money and in reality I think if you're hitting even 50% that's pretty good. The key to making money in the market is actually not how often you're right and I think that's another misconception for a lot of traders. You're going to be wrong and the only way to make money in the market is to make sure you lose less on your losing trades than you win on your winning trades. I know it sounds kind of "Captain Obvious" speaking here, but if you're going to risk $1,000 per trade and you're going to be wrong 50% of the time, you have to make more than $1,000 on your winning trades in order to make money in the market. You should be hopefully closer to two or three thousand dollars per winning trade and what happens is if you're winning 50% of time, but making three times as much as when you lose, then you'll be very profitable.

TraderInterviews.com: Yeah. You can be less than 50% and still make money.

Joey Fundora: Yeah. Exactly. You can have 40 to 35% in your trades. As a matter fact, a lot of trend traders because they make so much on their winning trades, they're making 10, 15, 20 times what they risk that's why they can hit 30% of their trades, even 25% of the trades. And so if you're hitting 25% of your trades, you better be making four to one at least to make money, but like I said trend traders are a lot of times holding on for those really big gains and they'll make 20 to 1 on a trade. So again, the key is understanding that what you win and what you lose and how that is tied together - it all comes down to expectancy; it's not really how often you win. If somebody can say, "Hey, I want to make 80% of my trades," but if you're getting whacked on those other 20%, then you're actually could be losing money even though you're actually right 80% of the time. So, it's a very important relationship that traders should be aware of.

TraderInterviews.com: So, how do you judge success for yourself, is it a dollar amount you want to make everyday, every month? What is it? What do you do in terms of goals for yourself?

Joey Fundora: Yeah. It's a trap for a lot of people. I obviously want to make a certain kind of a certain dollar amount per month, but I learned over the years that it doesn't work out that way, and really the way to grade yourself, and that's actually one of the things I do keep, I do keep a handwritten journal of just what I've been doing and what my stops are during the market and whether I made a mistake or not a mistake. So, I think the way to really grade yourself is the trades you make for the day, does it conform to your setup, did you think it through, did you not chase it, did you chase it, did you lift the stop, did you pull a stop, did you chase a gap? So, the way to grade whether you're doing a good job is whether you are really following your rules and following your trading methodology. Whether you're wrong or not, it's not really not on you per say because that's a risky take when you're trading. You can get stops about 10 times in a row, but if you're taking your setup in good faith and you're not ignoring the overall markets and you just get stopped out it's not on you, it's actually just the market not cooperating, you're running through a bad streak. So, I think that's one thing that traders need to be aware of, you could have losing streak even when you're trading well per say. In other words, you're taking a setup you should be taking, and then you just need to realize, "OK, the market is telling me something and you need to either step back or you need to re-assess what trade you should be taking."

TraderInterviews.com: And what do you do when you have four, five, six losing trades in a row? Any adjustments you make?

Joey Fundora: Yeah. Usually, when I have six, seven, eight trades in a row that is wrong, normally it's because I'm going against the market. And then it takes you a couple of trades to figure out, "Hey, what am I doing shorting here? What am I doing buying here?" Because in a healthy environment you will get stopped out on a bad luck every once in a while, but for the most part, if you're re-running it to eight, nine, ten trades in a row, you're probably trading a little bit on tilt, and you're not really understanding what the market is telling you. So, I usually step back, it can either cut risk down to half a percentage instead of a percent or just say, "Hey, I'm not going to take a trade for a day or two," and just sort of figure out what it is that I'm not seeing in the market. I think another thing traders do is they're very quick to blame the market, they're very quick to blame high-frequency trading or quick to blame something, but in reality the market is always telling you something. And sometimes you're just not in the right frame of mind to absorb what it's telling you. So, sometimes it's best to just take a step back, take your money out, find a good portion in your position so that you're not emotionally tied to the markets and then really take an objective look at what it is the markets are telling you.

TraderInterviews.com: A lot of people are talking about high-frequency trading. I think it seems to have affected more strict day traders than swing traders, do you think your strategy helps you avoid kind of worrying about high-frequency trading?

Joey Fundora: Yeah. Actually, you're a hundred percent on the money there and I think it's a misconception by some traders that they're getting ripped off by high-frequency trading. High-frequency trading is only impacting day traders and only impacting even aggressive day traders even longer term day traders. If you will think about what those high-frequency algorithms are doing, they're stepping in front of bids and trying to capture a bigger spread or stepping below offers, they're basically pushing around the very small short term movements. As a swing trader, you may be underwater for a little bit on your entry, push you around a little bit, but for the most part a lot of those programs are not impacting the longer term moves, even longer term intraday moves are somewhat shielded. Now, there are other computer trading programs and I think that's the other thing that people don't differentiate between the different programs out there, but there are a lot of other programs out there and there's a lot of different program trades. So, it's counterintuitive or it's also, you don't want to get bogged down to over thinking who's on what side of the trade, if you just look by price action whether it's a computer taking a trade or human, just honor the price action and eventually it all takes care of itself.

TraderInterviews.com: One thing that you are a little bit vulnerable to is news because you don't follow it. Have you ever been burned because somebody has earnings two days after you bought in?

Joey Fundora: Yeah. I don't trade off news, but I do pay attention to anything that's scheduled. So, again it all boils down to what type of trader you are. If you're a position trader, then earnings are a fact of life you have to deal with. If you're a swing trader, only trading three, four, five days then you really should not be in earnings unless you're trying to play the earnings play. But if you're just trying to take a swing trade, you should really be aware of what the earning stage or what news items are coming out in the stocks you're trading.

TraderInterviews.com: So, you will check to see if earnings or any news is coming out.

Joey Fundora: I always check. Anytime I take a trade that the first thing I do is I'll check to see what earnings are in play or what news is coming out. If there's nothing scheduled and everything is great, if there's news coming out in three days or there are earnings report coming out in four days, I may still take that trade, but I will be looking to get out sooner than normal. I definitely do not want to be holding over earnings unless I could protect myself with an option position. So, I will take on once in a while, if the trade looks really, really good, as long as I can take a put or take a sell or call do whatever it is I can to protect it, I will. But for the most part I do avoid earnings.

TraderInterviews.com: So, Joey, if you had one or two things that you think really made a big difference in your trading that when you started doing them that really got you to the next or made you more consistent, for the people listening out there, talk about what those things are.

Joey Fundora: Sure. In the beginning, the first thing I think as a trader needs to do or especially struggling traders is keep a trading journal and try to document exactly what trades you're taking, what time of day, what time frame, what you're risking, what your targets are and just keep track of what's working and what's not working. Are you losing more than you're gaining on those losing trades? Are you hitting 40% of your trades? Are you hitting 70% of your trades? I think it's very critical for beginning traders and even traders down the road to truly understand how they're performing and what parts of their methodology that are performing better. Now, if you're keeping track of what your slippage is, you may not realize you're throwing away a lot of money either buying at the market or with the way you're setting your stops. So, I think keeping a detailed journal is critical for a trader especially trying to figure out what it is that works for them. The second thing and I think this really is the Holy Grail in trading, is risk management. I mean every trader in the beginning when they begin trading, they're always looking for that magical indicator or looking for that setup that always works consistently, and in the end there's a thousand systems out there that will work as long as they're in tune with you as a person and in tune with the way you like to take a risk. The key really is, how you manage a risk, I mean cut your losses that's the biggest thing I think. The big difference between pro traders and amateur traders is the pros, you don't take it personally, if you have a loss, you have a loss, that's what the market is telling you; it's just a bit of expense and you just need to make sure you cut that so basically you're not ruining your portfolio on a couple of trades. Basically, you need your money to make the trades later. So, I think risk management is the biggest key to being successful.

TraderInterviews.com: On the trading journal, I know a lot of traders say that, but how do you use it? Do you actually try to go back and find what went wrong on every single trade? Are you able to find that out?

Joey Fundora: Yeah. And I don't want to make a product plug, but basically I use StockTickr which is on my journal, you know Dave Mabe?

TraderInterviews.com: Yeah. Dave Mabe. He's got a great site, so Stock Tickr, I don't mind talking about a site.

Joey Fundora: Yeah. So he's got great products and what I like about it, so the biggest problem with trading journal is people are either too tired or too lazy to document everything at the end of the day. And using the online journal, you just upload your data and you can run all those report ad hoc based on the data. So, I don't need to run through and come up with a very complicated Excel formula to figure out what I'm doing or not doing, the website does everything for me.

TraderInterviews.com: Yeah. And it's Stock Tickr without the "E"?

Joey Fundora: Yeah, Stock Tickr without the "E". So, I keep two journals basically, that's one journal where I just upload my trades or have them upload automatically, and then I keep another journal, which is just a handwritten notebook where I go through what I'm feeling on the day or whether I'm making mistakes or it's basically just to keep me in tune with how I'm trading and keep me in tune with what the markets are telling me. But the actual raw data, I do on the website.

TraderInterviews.com: And then finally when you thought about 2010 and what you want to accomplish for this year, any areas you think you need improvement on or you really want to work hard on to try and make your trading even better this year?

Joey Fundora: Again, it's just really getting better at the risk management, every trader has issues they deal with. I think my biggest weakness is I still tend to overtrade at times and then I still try to be early on trying to pick tops or pick bottoms. And as a trader, you need to be aware of what your weaknesses are and understand that that's something that could hurt you. And so basically for the year really what I'm trying to do is limit myself to only taking the setups that I like. I think I've done a really good job over the last few years in narrowing down what types of trades I take, and it's made a huge improvement over my performance. Last year was my best year ever. So, this year really it's just keeping that going and making sure that I'm aware when I'm trying to either get away from my setups and try to pick tops or bottoms because again it's not about your ego, it's about your account and you just have to stick with what works.

TraderInterviews.com: All right. Well, Joey, thanks very much. Listeners, we'll link to Joey's blog downtowntrader so you can check out where he talks about what he's trading, it's great to resource for people that are trying to find out for themselves about what strategies are going to work. So, Joey, thanks very much for your time today. I appreciate you sharing some thoughts with us.

Joey Fundora: Thank you Tim, any time.