INTERVIEW
Becoming Better Traders And Technicians
Where better to learn technical analysis and trading than a university with courses specializing in the subject? Roman Bogomazov is a trader and an educator, an adjunct professor at Golden Gate University (GGU) in San Francisco, where he coordinates technical analysis programs and teaches classes on trading strategies and implementation, including Wyckoff analysis. He is a board member of the International Federation of Technical Analysts and of the Technical Securities Analysts Association of San Francisco. Bogomazov is a frequent speaker at local, national, and international trading conferences.
Stocks & Commodities Editor Jayanthi Gopalakrishnan interviewed Bogomazov in a series of emails in late October and early November 2012.
Roman, how you did get interested in technical analysis?
The first time I saw a trading terminal was in Russia in 1994. A local bank had organized an event for prospective forex traders to promote the bank’s brokerage services and gave an elaborate presentation of a potentially lucrative trade in the yen.
I found out the next morning that the bank took a major loss on that trade. Despite that, I got hooked on the idea of trading. So I emigrated from Russia in 1996 and started trading the forex market using a momentum-based system. My analyses were correct much of the time but my execution was poor. Those initial losses and the accompanying grief were the best things that happened to me as a trader, making me acutely aware of the knowledge gap in my trading approach. I sought ways to improve, which brought me to Golden Gate University’s technical analysis program.
The mastery of trading is in knowing oneself. To avoid trading inconsistencies, you have to create a system aligned with your emotions.Many classes later, I applied technical principles in my trading. I also pursued CMT designation and was mentored by Henry Pruden and Bruce Fraser. I am always continuing to learn through my teaching, coaching, and ongoing research of the Wyckoff method.
When it comes to developing a trading system, where do we start, assuming we have never developed one before?
For a beginner who is not into data mining or computer-generated rules, technical analysis provides a great entry step into system development. However, I would not necesssarily begin with technical analysis.
In my work with clients and students, I always start by having them identify their intentions and their trading personality. The first question I ask them is why they trade. The answers range from “I love solving a puzzle” to “I need an income of $10,000 per month.” Everyone has different intentions with different emotional needs. Other questions I ask them include:
The idea behind thinking through these questions is to become aware of who you are as a trader and to align your system parameters with your basic beliefs. This process also helps you visualize a system and to implement it as a finished product.