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Dave Fry has devoted more than 35 years to the business of trading and portfolio management. His registration as an arbitrator with both the National Association of Securities Dealers [NASD] and the National Futures Association [NFA] attests to his extensive experience and spotless compliance record.

He founded the ETF Digest in 2001 and was among the very first to see the need for a publication that provided individual investors with information and advice on ETF investing. By 2002 ETF Digest trading programs were making triple-digit gains, despite the sharp overall market decline at that time, and Dave’s newsletter began attracting favorable coverage in Barron’s with three positive reviews in 2002, 2004 and 2007.

Dave is a frequent commentator on ETFs and other issues important to individual investors, and his perspectives are featured in financial news sources such as The Wall Street Journal, MarketWatch, Investor’s Business Daily, Smart Money, Dow Jones Newswire, National Business Review, MSN Money, Yahoo! Finance, Bankrate.com, Emerging Markets Monitor, IndexUniverse.com, and ETF Investor.

Prior to starting ETF Digest, David owned and operated an NASD broker/dealer, Fry & Co., and an SEC registered investment advisory firm, Asia-Pacific Investment Management Inc. He was also a registered Commodity Pool Operator, Commodity Trading Advisor, and Introducing Broker.

This is the final installment of my interview with David Fry.

Optionetics: What do you think are the greatest misconceptions beginning traders have about trading the markets and about trading systems?

David:  That they can create a perfect trading system. It won’t happen.

Optionetics: What kind of advice would you give a person just now beginning in trading the markets?

David: Be systematic and disciplined.  Emotional trading and even “thinking too much” is the primary detriments to success.

Optionetics: Can you describe what your average trading and analysis day entails from preparation to execution?

David:  If I’m trading my own account I’m day-trading the NASDAQ futures which runs counter to the philosophy I preach in our newsletter.  That’s what I do for myself since it’s impractical and inappropriate for our subscribers who want something more traditional and less active.  For subscribers we rarely make transactions even intraweek unless something significant happens.  My routine involves an all-day Saturday chart study marathon of some 300 charts from a variety of perspectives.  If alerts are needed they’re transmitted on Sunday to subscribers.

Intraweek, and after trading, I write a blog that is geared toward the general public.  Rather than making predictions or pounding the table about a particular market my focus is communicating what current market conditions are and give folks a range of possibilities with markets that are either on the move or making a difference.  I do this from the experience and perspective of someone who wanted that type of information when I was either a broker or advisor and found it hard to find.  

Optionetics: What kind of decision-making process do you go through before deciding on a particular trade and a particular sector of the market that would be worthy of putting on a position?

David:  At the beginning of every year I try to develop a theme from trends that exist and believe will continue.  Then I try to find the tools [ETFs] that will match that theme.  After allocating portfolios among those ETFs I try to determine technically when to be involved long, short or not at all.

Optionetics: Thanks, David, for sharing your thoughts about the trading business with our Optionetics reading audience.

To read previous installments of this interview, please click here.


Jeff Neal 
Senior Writer, Options Strategist & Profit Strategies Radio Show Market Correspondent
Visit Jeff’s Forum
Listen to Jeff at www.ProfitStrategiesRadio.com

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