A little over a month ago we published an article entitled, The Fibonacci Magic. The article was an excerpt from a ebook authored by Roy Cuzin, the self proclaimed Chart Wizard. After receiving a postive response from the article we decided to grab a drink with and interview Roy to learn more about him and really get to know who he is as a trader. Below is the first part of a two part interview with Roy.
Drink Forex - First, thank you for agreeing to do an interview. A few months back you allowed us to post an excerpt from your Ebook, “The Fibonacci Magic.” Thank you for allowing us to publish that article on our site. You and several of our other contributors have been excellent in providing our readers great educational material in order to improve their trading performance.
We wanted to do this interview to allow our readers to get to know you and your history. We believe it is important for them to understand who you are in order to take what you write more seriously, because you are not just some fly by night person. You have a tremendous amount of experience in this industry. So thank you again for agreeing to do this interview.
To start off, Can you explain a little bit about your background and how you got your start in this industry?
Roy Cuzin - Back in 2004 as I was about to graduate with my B.A in Economics, I began an amazing life time journey for becoming a professional trader. It all started with a small $2000 account that I have decided to open after reading a few books on the subject of technical analysis. In the meantime, I went to work as a Forex dealer in a small company so I got the chance to sit in front of the charts most of the day. However, that did not help me much with the trading as I have managed to blow up the account within a few months. Nevertheless, that just made me more focused on “cracking” that code of trading. It took me a few more years till I began to master my domain.
Drink Forex - Last year you made a transition from working for an investment firm to doing your own thing. Can you explain to us what you are doing now and what led to that decision?
Roy Cuzin - For many years, I have been head analyst and head of trading desk in a few companies around the world. Throughout the years, I have accumulated a lot of experience with markets analysis and trading to the point where I felt ready to go on my own. At that point I also had already a large group of followers, which only helped me to make that decision. I wanted to give my followers and traders a unique and highly beneficial experience by sharing with them my trading activities and expertise, in order to help them become professional and profitable traders. So today I’m running a Forex trading website that gives traders all the tools that they need to become a pro. A full trading support package which includes daily signals, forecasts, webinars, videos, training courses, advanced charts, and pretty much all the necessary elements that I was missing in my early years as a novice trader.
Drink Forex - How did you come up with the name, “The Chart Wizard”?
Roy Cuzin - Over the course of the past 10 years I was able to develop an extra-ordinary method of analysis that I named as the “Fibonacci Matix”. A few years later, I developed that formula further into a full trading system that I use very successfully for my own trading activities. The method is very unique and almost revolutionary. It is based on the Fibonacci sequence, which means that it is applicable to all markets and all types of assets. Constantly observing the way price reacts to the Fibonacci-Matix™ system in place is nothing short of a magic. Once you master the Fibonacci-Matix™, you really begin to feel like a wizard.
Drink Forex - Based on your name we take it you focus on technical indicators in order to make trading decisions. Which indicators do you focus on and why do you focus on those? How many did you try before deciding on those indicators?
Roy Cuzin - The focus is definitely on technical analysis, but from a very specific angle. I do not use any indicators what so ever. Just a blank Japanese candle stick chart with a 200 daily M.A. Upon that I apply the Fibonacci-Mtrix™ set up to find trading opportunities. In my early years as a trader I have tried every kind of indicator under the sun. Back at 2008 I specialized as a master analyst (Certified Financial Technician) by IFTA (International Federation of Technical Analysis), so I got to be familiar with all of the technical indicators, methods and techniques. After testing all of these tools over the years, I came up with the final conclusion on how to analyze and trade the markets. I had to become an expert on technical analysis to realize that most of it was mambo jumbo. However, I also realized that the Fibonacci discipline was totally exceptional, as these principles govern the laws of the universe.
Drink Forex - What time frames do you look at? What is your average trade hold time?
Roy Cuzin - I am a swing trader by nature. As oppose to day-traders I focus on the longer time-frames of the Daily, Weekly, and Monthly charts. I take medium term trades that can last up to a few weeks and sometimes even months. In terms of time-frame and trading style, swing trading is placed right in the middle between investing and day-trading approaches.
Drink Forex - New traders often make mistakes, which is expected. Like anything in this world there is a learning curve to becoming a successful trader. But, what is the single biggest mistake you think new traders make?
Roy Cuzin - The most critical mistake would have to be leveraging. Taking high risk leveraged trades right from the get go is a sure recipe for destruction. In fact, even today, 12 years down the line, I am still very cautious when it comes to leveraging my trades.
Drink Forex - Leverage has been a hot topic recently with Cysec and the FCA both coming out stating they are considering capping leverage at 50:1, which would be in line with the NFA regulation. Do you think limiting leverage is a good thing or do you believe traders should be allow to trade on 400:1+ leverage?
Roy Cuzin - I think limiting leverage is a great thing, and that takes us back to the previous question. Since in my view leveraging is the biggest mistake traders do, without the proper understanding of its nature, limiting leverage right of the bat could actually prevent a lot of self-inflicting harm doing, mostly by new participants. I also think that 50:1 is still a huge leverage to use. They should limit it much further and all the way to 10:1, and even that is still pretty high.
Drink Forex - How much leverage do you generally trade with?
Roy Cuzin - I generally trade with no leverage at all. Once I secure my running positions by moving my Stop Loss to break even, I allow myself to put on some leverage. In any case, I never go above 2:1.
Drink Forex - As we all know leverage can be a double edge sword as it can compound your losses. Not that it has anything to do with leverage, but one question we always like to ask in interviews is what was your worst trade and what did you learn from it?
Roy Cuzin - To be honest, my worst trade was actually not about leverage, but rather about the lack of protection (i.e. Stop-Loss). Back in the days I tried trading without any stop loss orders, and it did go well for a while. But then one day came an exceptional move (as it always does) against one of my unprotected trades, which completely wiped out months and months of steady profits. From that point on, I have never left my positions un-guarded.
Drink Forex - We just have a few more questions we would like to ask you before we let you get going. We have discussed a lot of new traders and some of the pitfalls that they might run into. With this in mind, what is one piece of advice you can provide to new traders just starting out?
Roy Cuzin - In a nutshell, stay away from the intra-day charts, as they are very noisy and extremely deceiving. Their sole purpose is to fool traders into reckless overdrive and over-trading.
Drink Forex - If you could have a drink with anyone in the world who would it be and why?
Roy Cuzin - That would be Donald J Trump. That man has always been a fascinating type of character, but to top that all with the presidency of the most powerful country in the world. To me, that’s just legendary.
That concludes part one of our interview. Stay Tuned for part two!
How To Get into Contact with Roy
Website - www.TheChartWizard.com
Twitter - https://Twitter.com/Roy_Cuzin
Facebook - https://Facebook.com/TheChartWizard
YouTube - www.YouTube.com/c/RoyCuzin
Blogger - http://roycuzin.blogspot.ca
Google+ - www.google.com/+RoyCuzin
E-mail - RoyCuzin@TheChartWizard.com