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Mark Seleznov is the Chief Investment Officer of Seleznov Capital Advisors [SCA]. SCA is a SEC registered investment advisory firm that offers advisory services for Mutual Funds, Trusts, 401K plans and Individuals. Mark supervises the asset allocation programs of SCA in a variety of strategic and tactical objective strategies.

Mark is the host of Financial Review heard weekdays at 2pm MT on the Financial News Network, KFNN Radio in Phoenix Arizona. www.kfnn.com. The SCA served as the Sub-Advisor for the Equipointe Growth and Income Fund (EQGIX). Mark Seleznov was the Fund portfolio manager and was an organizer of Equipointe fund trust. He has experience in the creation of mutual fund and separately managed account strategies.

A professional trader and money manager for more than 30 years, Mark Seleznov was a market maker on the Philadelphia Stock and Option Exchange as well as a retail registered representative and futures trader. Mark is a recognized expert in trading of equities and has conducted technical analysis seminars in addition to his TV appearances, newspaper and magazine contributions.

This is the final installment of my recent interview with the very successful money manager Mark Seleznov.

Optionetics: How would you characterize your technical approach to the markets?

Mark: All trading techniques break down to two major characteristics. Either it is Swing Trading or Trend Trading. If you buy while and asset is going down, you expect it to swing up. If you buy after the trend is established, breaks out of a range, or is above a longer term moving average, you are a trend follower.

I spend most of my time defining the characteristics of the assets that I trade. I use both swing trading and trend trading. Just as I want diversification of assets, I want diversification of methods.

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

Mark: The biggest misconception is that the method or trading plan should work all the time. Basically, trend following has big winners, but may only have a win loss ratio of 35% winners. Swing or oscillator trades have a win loss ratio of about 66%, but the winners and losers are smaller.

You can make money being long option volatility or being short option volatility. You just cannot make money all the time being long or short volatility.

Optionetics: What kind of advice would you give a person just beginning to trade the markets?

Mark: Backtest, backtest, and backtest. Have a diversified portfolio and learn how to use stops and exit rules to keep you out of trouble. Also, understand drawdown. All traders have it.

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

Mark: Currently, my work is as a registered investment advisor for wealthy families. I use ETFs and sector funds to obtain my allocations and positions for clients. I download thousands of stocks, sectors, and ETFs. I then have built in explorations on the assets I trade that tells be if there is a change to be made for the next day. If there is, I make the trade. The next night, repeat the process again. You need to have a trading plan and proper screening tools.

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?

Mark: All my research is done during non-market hours developing the trading plans I use. That sets up my decision making process. If I have a trade in the S&P 500 based on the plan, I just take it. It may be a long, a short, or an exit. I don't want to think in the middle of a trade. My thinking was in the systematic plan development. It includes the set up, entry, stop, and exit.

Optionetics: What type of analysis methodology do you employ to find great trading opportunities?

Mark: I never could define a great opportunity. Each trade has an equal chance of success or failure. I take each trade in my plan. I am not sure of the results of the next trade, but I have extreme confidence in the results of the next 100 trades.

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

Jeff Neal
Senior Writer, Options Strategist
Optionetics.com ~ Your Options Education Site

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