The Interview With Famous Futures Contracts Trader

Jake Bernstein – the trading psychologist

As Jake Bernstien, one of the most famous futures contracts traders said in his interview to FWN he started trading “by occasion”. He was a psychologist who responded to newspaper announcement about futures. By advice of his trader he opened an account. “I had a quick success turning to the same quick loss,” – says Bernstein. After following his broker’s advices Bernstein decided to trade himself. Now he is the active trader that works via his computer.

“I always was techniques oriented with pricing rules, seasons and cycles.” Bernstein first developed his own method of time calculation and as he didn’t have money to trade he was giving advices for money. When he saved enough money he started practicing his own method.

Now Bernstein is the president of MBH Commodity Advisors in Vinnetka, IL and the author of over 20 books. Since 1972 he publishes MBH Weekly Futures Trading Letter bulletin and teaches trading. He’s also a member of All Star Traders Hotline. “I learn my methods are effective every time I teach,” – says Berbstein adding that bunch of traders are usually misinformed so it is fun to teach things that work.

Bernstein enters the most active futures markets such as energy supplies, finances and S&P contracts. But he says he trades everything that changes predictably and he never trades palladium and orange juice for he dislikes the way of orders execution there.

When asked about analysis erosion because of many traders became the same graphic patterns oriented he replied that graphic patterns are at the same time a science and an art for if 10 people have the same conclusion by looking at the same chart it is called the objective reasoning. He also gave an example of Elliott’s analysis as the one that is highly subjective for people calculate the waves there based on own perception.

This trading veteran created his webpage and is optimistic about Internet effects on traders: “I think as Internet provides the prompt info distribution it allows more people to enter markets worldwide which increases their possibilities”.

Also Bernstein doesn’t think that electronic trading is capable of traditional exchanges displacement in nearest future: “I’m not sure about it for now as there’s always a room for a trader and a broker at every exchange. And if a broker is effective he would be demanded”. Though, Bernstein himself always was a “screen” trader because of his shortness and he explained that tall people at exchange would have an advantage over him. Speaking of present futures Bernstein predicts new inflation: “We are about to face one of the biggest inflation tendencies since 70s. The precious metals would go up in price. We now see the crops’ rise in price and energy supplies just go crazy and these are the inflation marks. We will see the interest rates increase and their huge bear market”.

To finish with here’s Bernstein’s advice to beginning traders: “Start with good capital, diversify, deal on wider and wider ranges and manage your risks.”

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