Guest:
Jerry Parker
CEO Chesapeake Capital
Record Date: 1/23/17
Dear Traders,
Today I spoke with one of the most successful Turtle traders who began his career by calling a wall street journal ad in 1983. From that ad he went on to meet & learn how to trade from two trading icons, Richard Dennis & Bill Eckhardt. His name is Jerry Parker, the CEO of Chesapeake Capital.
Jerry and I had a great discussion about Trend Following and dealing with the ebb’s and flows of learning how to trade. Jerry tells us how trend following should be a part of your portfolio. We discussed managed futures, and why we both believe that those who give them a bad rap are wrong. We chatted about discretionary vs. systematic trading styles & why system trading is winning.
[bctt tweet=”It’s really important to have a systematic approach to trading, and to stick to that system and follow it…” username=”rjparkerjr09″]
It was an honor to speak with Jerry. He is an incredibly successful trader whom I have a ton of respect for. Having the opportunity to chat with him was awesome and I know that you will truly enjoy hearing from one of the best traders out there. As always…
Biggest Takeaways:
- The ebb’s and flows of the trader’s life. Going through the peaks and valley’s of managing your system.
- Trend following as a portion of your portfolio.
- The reputations of Managed Futures, and Diversified Commodity Trading Advisers.
- The debate between discretionary and systematic trading styles.
Rapid Fire:
- How has your trading evolved over the years?
- I’ve become more disciplined, and longer term. It’s better to be longer term than shorter term now with all the computer programs and trend followers and choppiness out there. I’ve continued to add markets and diversification. Also, trade smaller.
- Can you tell me the moment that trading just clicked for you?
- December 1984 was a low point. I gave myself over to the system. It still clicks, there’s a lot to it, many ideas and philosophies out there.
- What’s the number 1 source you spend your time on?
- I do a lot of reading. I have over 300 google alerts of different people and companies. I get alerts from Paul Tudor Jones, and David Harding. I love the market wizards books. I always listen to the great achievers. It’s all a part of listening and learning and over time creating your own strategy and style. Don’t expect the market to accommodate your preference or personality.
- Favorite Book About Trading:
- The Market Wizards are great. I love Black Swan, Fooled by Randomness, Wisdom of the Crowds. Winning on Wall Street, Marty Zweig.
- Favorite Movie About Trading:
- Billions HBO Show
- Best Advice Ever Received About Trading:
- There’s nothing more important than having a systematic approach with a large sample size. Something that has been back tested in the past over 4-5000 trades.
- Advice to Give to Others About Trading:
- I did two things: I met someone who changed my life, Richard Dennis was a great mentor. Become friends with a very smart person who can teach you things that you won’t learn in school. The last chapter of the Black Swan tells the reader to go to cocktail parties in New York. Also, be ready to meet someone who can change your life. Study the system and get ready for the big break.
Resources:
- Website: https://www.chesapeakecapital.com/our-team/
- Resources: https://turtletrader.com/trader-parker/
Quotes:
- “Do the right thing, and do the hard thing regardless of short term performance…” 2:08
- “It’s really important to have a systematic approach to trading, and to stick to that system and follow it…” 3:10
