TraderInterviews.com: Hello everybody and welcome back to TraderInterviews.com. Thanks very much for joining me with a discussion with another trader this week. We're going to be speaking with a trader who has agreed to share some specific strategies with us. And we're going to talk to him about his trading style and strategies and how he approaches the markets each day. So thanks very much for joining me on the phone today.
Leigh: Hey Tim, thanks for having me.
TraderInterviews.com: Well, describe yourself as a trader. I always start with that question. What kind of trader are you?
Leigh: It's a pretty philosophical question. My main thing is risk management. And when I step into a position, I always need to know what my risk is. I always quantify it and have a target. So, I trade a lot of momentum strategies. I run a momentum book and I run a long-short strategy, which takes position on a more quantitative basis as well.
TraderInterviews.com: Okay. Excellent. Well, let's dig into that first part, the risk management because everybody says risk management is important in trading, but everybody kind of has its own little definition, their own kind of personal definition what that means. How do you determine risk? How do you determine those profit targets to determine how much risk reward there is?
Leigh: Well, when you step into a position, I like to use a 2 ATR stop. A lot of research has been done and when you're swing trading, how much room you should be giving a stock. And based on that 2 ATR stop, you can kind of see where your entries are and what the risk reward for your trades is. So what I do is I take a 2 ATR stop and I normalize all position sizes throughout the portfolio so that every position has the same amount of risk. Now, I also layer in my positions so that one unit of a position has...
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