Submitted by: Fredar Pearson

Trading at the professional level and experiencing the yin and yang of the financial world from the perspective of an experienced pro, can bring an individual closer to successful investing nirvana.

Order and Chaos or Steve Vettorel and Larry Hannula are traders with many years of experience in the investment industry but with two very different paths to how they got to the top of their chosen professions. Two true teachers of trade technique methodologies on investing Larry and Stephen are equally straight-laced, by the book, kind of traders. Both of these experienced investors are joining Trading Street.

Larry has over 30 years money management experience working for such institutions as ABN-AMRO, Cantor Fitzgerald and Macquarie Bank. His life-long dedication to the pursuit of better trading techniques makes him one of the few that has been able to change his trading style over the years to suit the changing markets.

Stephen on the other hand hails from Fidelity Investments and Fisher Investments, both outstanding financial institutions that gave Stephen the strong investment sense and the ability to start his own hedge fund. At Trading Street Stephen is offering a course that will teach the individual investor how to trade the markets using the same methods he uses to trade millions of dollars in proprietary money for institutions.

Recently I had the opportunity to speak to both Stephen and Larry and so I am sharing the highlights in the following paragraphs.

Anna: Stephen, you have been a money manager at pretty high levels in your career. What wisdom would you impart to your students?

Stephen: Well, there is no real magic to being a good trader. You study hard under the eye of good mentors, use proper evaluative tools, and practice diligence, risk management and qualitative analysis by studying and careful observation of the markets and price movement.

Anna: What do all really good traders have in common?

Stephen: In my way of thinking, to be in the upper echelon of successful traders requires an innate skill, a gift of sorts. Some of this is built into your DNA, just like those who become great violinists but understand this fact: to be a competent trader and to consistently make money by showing profits .this is a skill you can learn.

Anna: Thats good to hear. How much work has to go into it?

Stephen: Honestly, Anna, like many professional skills, very few require more hard work, intelligence, dedication, patience and mental discipline than successful trading at this level. It naturally helps to foster this by working in an institutional trading environment.

Anna: But there is a solution for those of us who have not worked on pro desks, right?

Stephen: Thats the secret. Like those of us who have worked under the great traders and investment gurus, you simply need to find someone who is suited to your temperament and with whom you stylistically agree and study under them.

Anna: Any additional wisdom you can offer to our audience?

Stephen: When it comes to defining your approach to trading as an individual, this is a thought I have given to my students when we work together in the earlier stages: Every trader has strengths and weaknesses. Some are good at holding their winners, but may hold their losers a little too long. Others might cut their winners a little short, but are quick to take their losses. As long as you stick to your own style, you get the good and the bad in your approach but a winning technique is a winning technique. You never second-guess yourself, stay true to your own trading values. And of course find a good teacher.

Anna: Thanks Steve. I like that thought: dont change horses in the middle of the stream. If it works, dont fix it.

After my conversation with Stephen, I had a chance to talk with Larry Hannula. Unlike Stephens methodical and studious analysis, Larry’s approach is to calm chaos.

Anna: I have heard, from many people in the investment industry, compliments about your trading style; it is a pleasure to finally meet you. Many of these people talk about you as being one of the most off-the-beaten-path, intellectually-driven theorists around. Could you explain to our readers today some of the principles on which you base your unique approach to the markets?

Larry: Sure, I have always been fascinated by the studies and writings of many brilliant men whose theories have led to the culmination of our model driven trading methodology. Weve done extensive research of the teachings of these minds, and it is through this that weve come up with our slightly different kind of analysis.

Anna: What are some of the details of this methodology?

Larry: We combined Chaos Theory with some Newtonian principles and learned from our research which were made more precise from our unique proprietary data mining efforts with the understanding that it would logically make future market movements more predictable during chaotic, normal or periods of below normal volatility.

Anna: I understand how Chaos theory works, basically, but how do Newtons natural laws relate to trading and market movements?

Larry: Well, we applied Newtonian principles to understand that when correlated markets have divergence, it can create equal and opposite reactionary market movements much like the laws of motion and inertia. We also used this concept to apply to regression analysis, which gave us our model driven Stat-Arb approach.

Anna: This sounds like a college thesis. How did this intellectual exercise lead to a workable trading methodology?

Larry: Our ah-hah! moment came when we combined the principles we learned from our mentors, who came before us, with our analytical model to forecast with a high probability future price movements. Giving order to chaos using our Predictive Oscillator Studies was the breakthrough moment that validated the theory. And hey it works. The model has been in demand now for nearly 25 years.

Anna: So the bottom line is that you are a strict model-driven analyst who operates on outcome probabilities, predicting price movement by a set of criteria. Does this work with more than one market or instrument?

Larry: It does. We use this model for virtually anything that can be traded with a large enough sample. That is to say, just about anything our clients are interested in can be quantified using our systems. In our way of thinking, it is mandatory that we rely on the model and its rules using the disciplines where we define higher probability outcomes rather than reacting to price action .which results in poor trade location and decision-making, thereby leading to bad outcomes. Understand this: our model filters trade opportunities for us to exploit the fear of others by our belief in this model-based methodology.

Anna: Bottom line is it necessary for the average person to learn these esoteric market theories?

Larry: Absolutely not. While fun to contemplate, certainly, we have broken it down into a service by which we provide intraday, daily, nightly, weekly and longer term forecasts for very specific instruments and it is ideally suited to Index trading.

Anna: Thanks Larry and thanks for the primer on your fascinating work. We are grateful to Steve and Larry for sharing their tips and tricks.

So, finding order and taming chaos is within reach to the individual investor if you find the right mentor. Stephen and Larry may or may not be right for you but at least it may be a start for finding that perfect person to help you succeed at your long term financial goals. Both of these outstanding traders are available and approachable on Trading Street so feel free to stop by and pick their trading brains, and learn from their wealth of material in more detail. If either of them does not strike your fancy then Trading Street does have many such professionals in many different asset classes from commodities to bonds, precious metals to foreign exchange and beyond.

About the Author: About the author – Anna SmithAnna Smith is an independent journalist that writes for blogs, corporate public releases and general enjoyment. She has written for many large publications under several pseudonyms giving varying perspectives about world events. Ms. Smith has over 20 years writing experience and is passionate about writing quality articles.Email:annawritter@gmail.comAbout Trading Street Trading Street is a web portal for the individual investor that provides investment education from industry veterans that cover seven different asset classes; commodities, interest rates instruments, stocks, Forex, futures indices, precious metals and energies. Individual investors can interact live with leading experts through one of the various online forums such as the Live Trading Labs, Chat Cafes, mentoring or Signal Arenas. The online Shopping Mall has products ranging from investment newsletters to indicators and trading systems for all types of trading personalities. Trading Street is a one-stop-shop for all things that drive investment knowledge from the amateur to the professional; located at www.tradingstreet.co (yes it is dot C O not .com)Company Contact: Tim LuCarelli Trading Street, LLC marketing@tradingstreet.net646-396-8108Skype: Trading-StreetKEYWORDS: financial markets, investment education, futures tradingYOUTUBE VIDEOS: Stephen Vettorel –

youtube.com/watch?v=FgcIjPp9RLM

Larry Hannula –

youtube.com/watch?v=eriTdVVF7kc

SOURCE: Trading Street

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