We asked him what are his guidelines for risk management?

Hanqui Guo- Risk control is an essential part of trading successfully. The results of a trade might not be good but if effective risk management was applied the trade is always well done.

 What are your rules?

Hanqui Guo- I have a trading plan and I adhere to it. This methodology has been extensively tested and I know what I am willing to lose. I use stop orders to limit my risk exposure and cut losses in fast moving markets. I try to trade with the trend and control my emotions. All traders experience high levels of stress particularly when suffering losses like now. Anxiety, frustration, depression are all part of the trading game. Part of my risk management is the ability to control those emotions in order not to get them take control of my trading.

 What is happening this year for your succession of losses?

Hanqui Guo- The market is behaving irrationally but I stick with my trading plan even if sometimes I am having personal doubts. Obviously my trading plan is not suitable for the actual market behavior but markets keep changing their behavior so I trade defensively now because I already lost 75% of my portfolio.

 Could you have changed anything if you could?

Hanqui Guo- No because I have done everything right according to my strategy: markets are like that and we have to be prepared for them. I always trade thinking about what I can lose as opposed to what I can gain. I fully understand the risks of the trade. I eliminate unnecessary risk when possible, I am selective about the risks to take and I think I act quick to reduce risk exposure. This is what needs to be done when you trade and this is what needs to continue to be done even if one is losing money.

Thank you