ASIA PACIFIC’S PREEMINENT TRADING MAGAZINE The TRADERS www.traders-jou ournal Interview with : J. Welles Wilder ~ FX - Cres Out the Noise pp Om Paramouncy Oi Principle —_ Candlesticks and Crossovers Pron New $25°B1G’ Dow Product Selling Options =} Action and Reaction Lines IN 17932149 $G$8.80 i 7 RMS19.80EN Adee oad =? CW clea ecad 3 Y OV Ae CCRC aneReraniite) ome indicators — now considered to be core Te eMC ELENA ROA EL ee ena include Average True Range, the Relative Soe MeO e " and the Parabolic Stop~ , . \ FUN eoe 1 = He has written many articles on trading, EYE UCL OTR CO) . Pe URE a Cen Uce Pee CL) *¢< seminars in Asia, Australia, Canada, USA, and Europe. He has also developed the Delta market timing software, One Day ata UOT RUC O CMU se Cn nCL more traders using Mr. Wilder's systems and a 5 pote methods than any other disdpline. lie)Part 1: Who is J. Welles Wilder ? Please provide a background of yourself? What were youdoing before youbecomea trader? When and how did you get into trading? ‘ejust so happens that I have had several carcers. Between high school and collage, I wasan automobile mechanic and joined the Navy and became an airplane mechanic. After the Navy, I went to North Carolina State Collage (On the G.L bill) and graduated with a degree in Mechanical Engi- neering. After seven years of engineering (and building a large Mobile Home Park on the weekends) I left enginees- jing and got into Real Estate and Land development. Two other people and I built 1,035 apartments in five sities in North Carolina and Virginia. I bought an air- plane, learned how to fly it, and made the rounds of the five projests about every day. When the apartments were almost finished my two partners wanted to buy my third of the projects. Jn the mean time, I had become interested in trading come modities because they are even more highly leveraged chen like Real Estate. My parmers and I agreed on a fair price and suddenly, at 38 years old, Ihad all the money I needed and nothing to do, So, I started to study the art of Com- modiry Trading. ‘T:What was It like when you first started? I made a lot of money in Silver because I had reason to believe that Silver was going to increase in price. I can remember buying a contrast of Silver at $1.38an ounce. I think that was as low as it got. ‘Us: How have you evolvedas a trader? 1 began to trade other commodities and 1 soon learned that one can also lose money trading commodities. So T stopped ding and began to get into technical analysis, This was in the early to mid seventies. The only book I could find in the library about trading was written by a ‘man named Gold. Then [learned about a man in Wiyset- ta, Minnesota who had collected about everything in print on Technical Trading. For a small price, he would send you several of his writings at a time and allowed one to copy them before sending them back. ‘U: How long did it take before you considered yourself successful ? And how would you define success? “My frst real success in the Commodities Industey was in 1978 whea I wrote and self published my first book, MEW CONCEPTS IN TECHNICAL TRADING SYSTEMS. ‘Before I wrote that book, there were just ewe basic totally automatic trading systems to my knowledge. One was the MOVING AVERAGE and the other was Richard Donchi- ans WEEKLY RULE. In the New Concepts book, I introduced four new au- tomatic trading systems. They were, The Parabolic Time! Price Systern, The Volatility System (which introduces Av- ‘rage Truc Range) The Directional Movement System, and the Swing Index System. The book also includes the first momentum oscillator to put all commodities and Stocks enone scale, That was called The Relative Strength Index or berterknown as the RSI. Over the years. we have sold more than 25,000 copies worldwide, At $65.00 ie was also ‘one of the highest priced boots on trading. Upon completing the book I ran a full page ad and an artide on the RSI in the June 1978 issue of what was then called Commodities Magazine. This was just at the time that small computers were becoming available and it seemed every trader in the world was looking for some- thingto program, Wesold thousands of copies of the New ‘Concepts book to these people all over the world. ‘The result of this is that I suddenly became well known in about every country that has commodity and Stock trad- ers. In che meanwhile, I developed an (automatic) visual trading system called The Reverse Point Wave system. It ‘worked equally well on stocks and commodities. To make a long story short, I put on seminars and taught this sys- tem to traders in about 10 different countries. Probably, what contributed the most fo my success over the years was my ability to write advertising copy: That is quite unusual for a Mechanical Enginees! I suppose that it was about this time that I considered myself successful in my third career So how would I define success? I would says by setting oneself a difficult goal and then achieving it. ‘Te: What Is the largest contributor to your succoss? Determination, and being one of the best ad copywriters in the industry, Tk What do you trade? Turade the 35 major US commodities primasily,and next; Gold and Silver stocks and options. ‘Th What was your first trade like? “My Bint trade was in Silver and it was very profitable. ‘Ts: What was your besttrade? The one I remember the most-was in che early seventies when I bought $10,000 VOLUME ISSUE A Th 18 9