Follow Up Questions for Gary B. Smith

May 24th, 2006

I interviewed Gary about a month ago – take a look in case you missed it. Gary goes in depth about how he trades and even how to start your own hedge fund for fun and profit.

A couple of you had some more questions which Gary was kind enough to answer. I’ll post them here for all to see.

Yuri asked:

How much capital do think one should have to become a professional trader?

Gary answers:

How much capital? A lot of that depends on how active your trading is. If you’re more long term, you can start with less as commissions won’t kill you. If your horizon is short term, you’ll need a bit more. The simple answer, though, is to start with only the amount you can afford to lose. If I’m pinned to a specific number, $50K seems about right.

Trader Eyal asked:

Hi guys, good interview. A question for Gary, would you be able to mention a couple of profit taking exit strategies you like to use in your personal trading or the fund?

Gary responds:

Profit-taking exit strategies? I like to set a percentage target for each of my trades and exit at the next opening if it’s hit. As for exits, we’ll also exit on a time stop and trailing low.

For more information on the hedge fund Gary has started, go to the Exemplar Capital web site.

Comments are closed.