Hey, It's That Trading Blog
Of TheKirkReport.com
Minnesota-based Charles E. Kirk is an individual investor who has been investing and trading stocks for more than 12 years and who currently trades stocks for a living in addition to writing about the stock market in his blog, with more than 10,000 visitors reading his website on a daily basis; a notable number, considering he has only been blogging since September 2003. His education and work experiences are varied, including a bachelor's degree in philosophy and a law degree; he worked as a private investigator for a law firm as well as founding and operating the stock newsletter MoneyXperts. Kirk explains that his primary goals for the website and blog are to help the small investor and provide food for thought, not blind recommendations, adding that he lives and breathes the stock market every day and he does it because he loves it. Kirk has received high accolades from many financial publications, including Barron's, Forbes, Kiplinger's, BusinessWeek, and The Wall Street Journal, as well as this one.The interview was conducted via email in early September 2007 by Technical Analysis of STOCKS & COMMODITIES Editor Jayanthi Gopalakrishnan.
their mistakes well can always find a way to do well in the market.
Charles, how did you get interested in trading?
After graduating from college, I decided it was time for me to learn everything I could about mutual funds. My wife had started a retirement account at TIAA-CREF and since neither of us knew anything about how to manage these kinds of investments, I decided to learn as much as I could about them. That grew into an avid hobby, especially after I became dissatisfied with the performance of the actively managed funds we owned. It also didn't take me long to realize that I could do better by using a smart mix of index funds, by picking my own stocks, mostly for long-term buy and holds, and then trading stocks for short-term gains as I learned more about stock-screening techniques and technical analysis.
What helped you make the decision to trade full-time?
I worked as a private investigator for a few years after college, and it wasn't until I was in law school, with the time and flexibility of a student, that I could focus on trading full time.
Looking back, I think there were several factors that helped me choose this as my career. First, I started trading in one of the best bull markets in modern history, in the late 1990s, and the market was very forgiving of mistakes I made and the skills I lacked. In addition, low-cost online trading made trading as a career a viable option as tools and information became readily available in the late 1990s. I also fell in love with daily challenges and opportunities presented by the stock market versus practicing law.
Was that it?
By far the most important factor was advice I received from my father. Just shortly before he passed away (one month after I graduated from law school), he urged me to do what I loved doing the most. He was a successful businessman, but he owed much of his success to the fact that he really liked his job. One of his favorite sayings was "Do what you love and the money will follow." That was very good advice.
Was it the thrill of taking risks that attracted you?
No, I'm definitely not a thrill-seeker. I like challenges and the opportunity to test myself against the best investors and traders in the world. Trading allows you to be completely responsible for your financial destiny. Win or lose, at the end of the day you are the only one responsible for both your successes and failures. I love that. Also, while trading well requires a great deal of time and effort, I also appreciate having the flexibility to take time away from the market to do other things (travel, golf). While I'm passionate about what I do, I don't live to trade. I trade to pay the bills.
Can you tell us about a memorable trade (good or bad)?
My website offers a history of trades I make and members have access
to daily updates. While I go back from time to time to see if there are
patterns in the mistakes I make so I can improve my performance, to tell
you the truth I'm always focused on the next trade above all else. While
I think it is a good idea for traders to keep a journal so they know how
they're doing and be able to spot areas that need improvement, I think
many traders live too much in the past. I've learned that past success
will often make you think you're better than you really are and past failures
will create a loss of confidence. Both work against you. As you know, we're
only as good as our next trade and what happened yesterday, last week,
and last year is irrelevant. That's also one of the great things about
the market -- there's always another opportunity to make a great trade.
...Continued in the November 2007 issue of Technical Analysis of
STOCKS & COMMODITIES
Excerpted from an article originally published in the November 2007
issue of Technical Analysis of STOCKS & COMMODITIES magazine. All rights
reserved. © Copyright 2007, Technical Analysis, Inc.
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