A born and bread New Yorker, Hans Dederle’s interest in trading started out as a broker. He spent his evenings studying and researching, eventually falling in love with trading. When the big crash happened in ’07/’08 he lost his job as a broker and trading full time became the natural income replacement.
Hans now mainly day trades Options on Tech firms like Facebook or Google. He also trades Futures.
In the show Hans reveals:
- The central indicator for all his trades
- The educational resource that led to his success
- His trick to controlling emotions
- Why he trades two specific times during a day
Your Episode Sponsor:
Market Wizards, by Jack D. Schwager
- Hans prefers the 5 minute chart as he finds it the most consistent, profitable and easy to read
- He uses a mixture of RSI, Stochastic Fast and Volume indicators
- He looks for overbought and oversold conditions and plays the reversals
- He typically has 80-85% winning trades
- Hans risks 50% of his equity with each trade and has a target return of 20%
- If the price keeps trending he puts in a trailing stop
- Hans takes between 5 and 10 trades per day
- Hans usually trades from market open to 10:30am because that’s when the most volatility is present
- He’ll also look to trade the last hour of the day due to volatility during that period
- Trades last between 1 and 5 minutes
- Targets 20-25% move on each contract
- Trades last between 1 and 30 minutes
- Targets at least 1 pip per trade
- Think of trading in the same way as Poker. The house always wins and in this case the house is the big financial institutions and banks, so it’s good to try and mimic what they are doing in some way
- Regarding your education, go against the grain, think outside the box, work out what the market makers do. Google search “secrets of the market makers“
- Absorb as much information as you can and figure out what works for you
- Keep your strategies simple
- Know when to walk away
- Keep it abstract, don’t think about how much money you’ll make
Hans Futures Trading Strategy
- If the stochastic fast (default settings) crosses under the 20 line and price is close to a support line enter a buy
- If the stochastic fast (default settings) crosses over the 80 line and price is close to a support line enter a sell
- Stop Loss at 2 pips
- Profit Target 1-2 pips
- 5 Minute Chart
- Trail stop loss if you want to stay with a trend
Have a question for Hans?
You can reach him on HonzaFinancial.com or on Twitter @hdederle.
Or, leave a comment below… I’ll make sure it gets to him.