Interview with German trader Rüdiger Born

Rüdiger Born is the founder and manager of BORN Traders. He was already active in the markets in the early 1990s and trades successfully on the international stock exchanges.

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1. Which markets do you trade and in which time frames?

Rüdiger Born: Actually, I trade almost all markets and time frames. That includes the most important global indices, stocks from the US, Europe and Japan, currencies and also commodities such as metals or energy. In terms of time frame, I have regular trades that sometimes run for a few weeks and then some that are only designed for a few minutes.

2. How efficient are markets from your point of view?

Rüdiger Born: In fact, the markets are not very efficient in terms of the economically correct price. This is mainly due to the fact that market participants have to make subjective assessments. This is where the model of efficient markets reaches its limits.

3. Where do you see your specific edge in the market?

Rüdiger Born: Exactly in using technical chart analysis to obtain an assessment of the subjective assessments of the other market participants and to accompany the resulting movements. It is therefore not a question of knowing more than the others, but of reading the mood of the others and reacting accordingly.

4. Can you show us a typical winning trade?

Rüdiger Born: I trade many quite systematic approaches. The gold chart on December 14, 2018 was a good example. After the Parabolic SAR turned Long, I entered a trend-following long position on the 1-hour chart after overcoming an A-B-C pattern. After reaching the minimum target, the stop was trailed by the parabolic which closed the trade later with profit.

5. What does a typical losing trade look like?

Rüdiger Born: Almost the same, except that price runs into the stop instead. I do always set the stop systematically according to the same procedure within a given strategy. While I can't rule out losses, I can at least partially tighten the stop regularly and thus reduce the losses or achieve a break-even trade.

6. How do you manage risk and reward when opening a position as well as thereafter?

Rüdiger Born: This results from the respective trading signal. The gold example had a profit target at the level of the simple projection of the previous impulsive movement. If the price moves in the right direction, I trail the stop; depending on the trading approach, this can be done candle by candle, according to the last intermediate low or according to ParabolicSAR or SuperTrend.

7. How do you deal with your thoughts and emotions in trading?

Rüdiger Born: In the past, emotions were a topic for me that determined my results, but with the consistent application of trading approaches, this actually no longer plays a role. On the one hand this is of course just right, but sometimes it also seems a bit boring, because you no longer get excited with every trade. But that is the way it should be. You don't want the pilot on the plane or the taxi driver either cheering or sweating at every little thing.

8. In retrospect, what was the most important aha moment in trading for you?

Rüdiger Born: Finding my first real trading approach. This has significantly changed my trading style, my view of the markets and how I deal with emotions. For me, it was a very defining experience.

9. In your opinion, what is the most common mistake or fallacy of newcomers?

Rüdiger Born: That as a (professional) trader you know exactly what happens next and that trading is not seen as dealing with probabilities. Accordingly, the next successful or loss-making trade is not the result of skill or failure, but almost coincidental in itself. Only the sum of a large number of trades in the systematic approach ultimately constitutes success.

10. WH SelfInvest is active as a sponsor in competitive sports. What parallels do you see to trading?

Rüdiger Born: In both areas you have to have technique and train a lot, so that all the moves fit; and you have to be on top of it mentally. If you are distracted or under stress, no records will be set. Only with adrenaline there is a difference. While it is supporting in sports, in trading it is mostly a false friend.

The experience of a broker WH SelfInvest client:

"A big thank you for your service which is truly outstanding and efficient."
- Marcel

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