Valuable Insights for new traders from 17 year Veteran Trader Anna Coulling

A Journey from Accidental Trader to Respected Trading Author

Oct 25, 2023

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Trading Insights from Anna Coulling: A Journey from Accidental Trader to Author

Hello everyone, Ray & JJ are excited to share with you the insights from our recent podcast episode where we had the pleasure of hosting Anna Coulling, a seasoned trader and investor with almost 17 years of experience in the financial markets. Anna, who is also an author of several books including "A Complete Guide to Volume Price Analysis" and "Forex for Beginners," shared her journey, trading strategies, and her perspective on the current state of the markets.

The Accidental Trader

Anna's journey into trading was quite accidental. Living in the east side of London, she found herself surrounded by floor traders and forex traders. She attended a presentation on futures trading, which introduced her to candlestick charts and volume analysis. Over the years, Anna and her husband refined their trading knowledge and eventually published their book in 2013. Their aim? To help shorten the learning curve for other traders through their programs and teachings.

Anna emphasized the importance of staying updated with market changes and shared success stories of individuals who started with no qualifications but became successful traders. We also touched on the Nick Leeson book and the management structure in financial institutions. I shared my own experiences with clients who have taken down brokerage firms.

The Internet Revolution and Trading

We discussed the revolution of the internet and its impact on the financial markets. Anna mentioned that the internet has provided early access to the market, but regulators may be considering clamping down on this access due to perceived risks. She believes that trading offers an opportunity to make serious money, especially for those who are street smart and know how to hustle. We agreed, stating that we would choose street smart individuals over MBAs any day.

The Psychology of Trading

We delved into the psychological aspects of trading and the importance of separating emotions from trading decisions. Anna brought up the concept of gestalt theory, which she learned about during her studies in child developmental psychology. She explained that gestalt is a holistic approach to understanding markets, where one considers the relationships between different markets and gradually gains insight into the complete picture.

We also touched on the development of the prefrontal cortex in young traders and how it affects their risk-taking behavior. As traders get older, they tend to take a step back and think more about cause and effect. We discussed the importance of confidence and sticking to one's analysis in trading.

The Current State of the Markets

Anna shared her perspective on the current state of the markets. She pointed out that the construction of indices can distort the true picture of the markets, and investors need to be aware of what they are actually buying when investing in indices or ETFs. She also discussed the impact of stock buybacks and low interest rates on the current business model of capital markets.

Looking ahead, Anna sees potential in technologies like quantum computing and green hydrogen. However, she also anticipates a potential bubble and subsequent pullback, similar to what happened with the dot-com era.

The Future of the Market and Cryptocurrency

Anna shared her views on the future of the market. She believes that after a potential crash and washout, things could improve in the future. She also talked about her views on cryptocurrency, stating that it's a new and exciting concept, but like any new thing, it goes through phases of early adoption, bubbles, and new companies entering the market.

The Challenge of Shorting Stocks for Retail Traders

We discussed why retail traders often struggle with shorting stocks. In the past, institutional traders had an advantage because they would receive information about large sell orders from other firms, allowing them to short stocks and profit from the price decline. However, retail traders don't have access to this kind of information and often end up shorting stocks without realizing that there are no sellers present.

The Impact of Volume and Price Analysis on Trading Strategies

Anna discussed the impact of volume and price analysis on trading strategies. She explained that the price cycle and congestion phase play a significant role in determining market behavior. She emphasized that low volume can be influenced by seasonality, such as during holiday times or in the new year.

Anna Coulling's Books and Online Presence

Regarding her books, Anna recommends "The Complete Guide to Volume Price Analysis" as the main book, which covers volume and price analysis in depth. She also mentions companion books that focus on setups, chart patterns, and volume patterns, with examples from various timeframes and markets.

In terms of her online presence, Anna can be found on her website, annacoulling.com, as well as on Facebook and Twitter, where she shares charts and insights.

In conclusion, our conversation with Anna Coulling was insightful and enlightening. Her journey from an accidental trader to a seasoned investor and author is inspiring. Her insights into the current state of the markets, the future of trading, and the psychology of trading are invaluable for anyone interested in the financial markets.