"Forex trading is who I am and that will never change" - Interview with Nenad Kerkez

Nenad Kerkez is Admiral Markets’ Senior Lecturer Market analyst. He writes daily Forex analysis and contributes regularly to our Premium video service. Last year he won the Forex Best Award for Best Video Podcast, so he’s good at this and he knows it.

A stubborn believer in his own-developed money management and trading method, Nenad enjoys trading as much as he loves martial arts and nice watches. Get to know him more in this in-depth and laid-back interview.

 

Every trader and analyst has a story of how he became interested in the Forex market: What's yours?

Once I began trading in a more serious way (intraday), I also felt obliged to help traders make money.

Let me tell you a few things about my background first. Before I started to get involved with FX trading I worked with an Austrian outsource agency that dealt with BNP Paribas hedge funds. I also hold a MSc in Economy, so I already knew what the Forex market was. Back then, when I started doing the analyses, I was also trading at the same time. Once I began trading in a more serious way (intraday), I also felt obliged to help traders make money. I started with signals-like analysis in the EURUSD thread on the famous Forex Factory website. Writing the analysis without trading in my opinion is just…not right. It feels like cheating. So, I started to trade and analyze at the same time but on a global scale. Now my job is to provide trades with clear entries and targets, while at the same time teaching traders how to fish for themselves.

Forex does not seem to be a big industry in the Balkans: Was it more difficult to get into it coming from there?

Well, the Balkans have suffered economic woes since the fall of communism, whereby industry and wealth has suffered as a result. I mean, companies in the region may use FX for hedging purposes, but for retail traders, the population size is relatively small due to the economics of the region. Disposable incomes in the Balkans are a fraction of those in Western Europe and the US. Perhaps the strongest economy in terms of GDP is Greece and we all know that they are currently recovering from an economic depression. Have in mind that I have been travelling a lot so I am not glued to the Balkans. Investments into Foreign Hedge funds were available before Forex was introduced to this region.

How do you go from there to developing your own price action method?

My first project was PNT (Practical Naked Method). Soon, I upgraded it with a method named CAMMACD that is based on institutional-grade trading applying my special Camarilla indicator. I both back-tested and forward-tested my method for a full year before going LIVE. Ever since I have been using it with a big success (as you can also see from my pre-fact analysis that I share with FXStreet each day).

My method is a bit complicated, so I do 1v1 live courses with clients via www.elitecurrensea.com, but also we are in the process of making the video course for CAMMACD that should be released in a month or two. Check the website 

What would you say are your strengths and weaknesses as a trader/analyst?

My strength is, definitely, having a clear understanding of the technical price action and of the historical vs current moment prices that many traders obviously neglect. Another strength is my money management, which might be conservative but it saved my account for numerous times. My biggest weakness? Hmm, maybe I’m too stubborn when it comes to trading and analysis. I trust my own guns. Maybe that’s a merit too? Who knows

Being part of such a dynamic environment as the FX market is, you must be in constant updating of your abilities: What do you do to stay competitive?

Soon, I will also start to trade Cryptocurrencies vs USD and EUR.

I just try to follow the market, I try to see the logic in the market behavior. Market is not the same as it was 10 years ago so we constantly need to adapt to present market conditions. I watch and follow the charts religiously as this is who I am. I am totally 101% dedicated to Forex and financial markets (equities and commodities too). Soon, I will also start to trade Cryptocurrencies vs USD and EUR. Expect analyses on that front too. This blog article I wrote on Iron Rules for trading discipline is also worth a read.

So learning is a big part of any trader/analyst: What's the biggest lesson you have learned through all these years in the markets?

The biggest lesson I’ve learned through all these years is that The Holy Grail of trading indeed exists. Its name is Money Management

Do you have a favorite historical chart that led you into a big trade? Or maybe the opposite: Is there a chart you'll never forget for misleading you?

No. I trade intraday/intraweek. I don’t care about long term prognosis. My job is to make money not theory-craft. But a mistake that I made and I will never forget was the EUR/CHF trade I held for a month until the SNB dropped the floor. Fortunately enough, I got away with only a pip of a slippage. Well, the SNB chief definitely misled me into believing they would protect the floor. Ever since I really don’t care about EUR/CHF. After all, the ATR(14) of EUR/CHF is only 44 pips. I don’t care about it at all, lol. It takes ages to make 20% of the ATR target.

Why are the JPY crosses your favorite ones to trade?

The JPY carries a fair degree of volatility, which makes it good to trade.

Because of the ATR, because of the volatility. The JPY is connected to risk-on and risk-off sentiments in risky asset classes like Equities and to a certain degree Commodities. As a result, the JPY carries a fair degree of volatility, which makes it good to trade. Often, traders will perform the Yen carry trade due to its low interest rates in Japan, also adding to the volatility of this pair. Yen carry trades can then be transferred into risky asset trades. For example, when Equities are rising in the US, investors can borrow in Yen and convert to USD to buy US stocks, causing the USDJPY pair to rise (along with rising US Equities). Conversely, the opposite applies during de-risking in Equities. Then, funds are repatriated to the Yen, causing JPY to strengthen.

 

How many hours a day do you dedicate to the markets?

8-10

Does a trader need to be connected 24/7 to be successful?

In the beginning, I would’ve said yes. That’s how I started. Luckily enough we provide real education so today traders don’t need to spend 24/7 or 24/5 on screening time. Still, there is no way a trader can be successful by applying automatic systems in trading longer term. A trader needs to understand the full logic behind the price movement and proper money management. It takes time though. It’s a bit subjective and individual.

Have you ever felt the need to change your career focus to a more relaxed kind of job?

No, not at all. I will never do that. This is who I am and what I love doing.

The importance of emotional self-control in trading is being mentioned lately by traders more and more: Do you use any special technique in that regard?

Yes. I always watch for my emotional state before I start my trading day. I won’t let my emotions overwhelm me. Joy and euphoria are your worst enemies. You need to stay relaxed and optimistic.

I practice meditation, binaural beats, sports and, moreover, it’s important to keep an overall positive thinking and attitude towards life.

How does sitting so many hours in front of a screen cope with a healthy lifestyle? Is it compatible? What do you do to stay in shape?

I am a bit fond of sports. I practice Muay Thai three times per week and, in addition, I run between 5 and 10 kilometers three more times per week. I don’t eat simple sugars, wheat bread and fat food. I take mostly protein food with some supplements such as amino acids. I have always been into sports. That keeps me healthy and in a good body/mind condition too.

Where do you see yourself 10 years from now?

In this business, of course With millions of followers, haha! I also have my own goals that I will talk about only when I make them come true.

So, once you’re off your trading-mode, what do you like to do in your spare time?

Muay Thai, running, and cross-fit training. I like travelling too. Meeting different people, from different cultures and nations. The world is a beautiful place and we should keep our planet safe.

I am also a big fan of astrophysics and alternative archeology so I read so many books around that subject (Zacharia Sitchin, for example). I also like having good parties with friends and going to movies. Besides that, I am a big fan of good watches. Omega is my favourite brand, but I also like Rolex and Tag Heuer.

In my spare time, when I’m on vacation I like extremes sports like cliff diving.

Team sports as basketball, football, waterpolo or handball are big in the Balkans: Have you played any of them? What's your favorite one?

Yes, they are very popular, but I have never played them except for recreational purposes. I prefer martial arts, though.

Besides trading-related bibliography: Do you like to read other stuff? What kind of reads do you typically enjoy?

Yes, this are my favorite topics to read about:

Science: Alternative archeology, Astrophysics and Psychology.

Fiction: High Fantasy (Steven Erikson, Lovecraft, Zelazny) and Cyberpunk.

And trading books too! Definitely, I should write my own book.

What about movies? We're sure people have noticed you really look alike Vin Diesel: Are you aware of that? Do you like his action-type films?

Haha, yes! A lot of friends and people who know me have been telling me that. A few times when I went to Greece and UK, people were stopping me and asking me if I were Vin’s brother. My friend trader Dale Pinkert always calls me Vin Also many of my friends in Admiral Markets also like to call me Vin, unofficially.

I like his movies a lot. I am a big fan of action blockbusters.

By the way, to wrap this cool interview: where does your "Tarantula" nickname come from?

The name originated in Forex Factory. When everyone was selling the EURUSD back in 2008, I made some very good long trades too. Tarantula is a spider. Spider makes swings. Up and down, down then up again. I don’t care whether the currency will rise or fall. I am there to set the trap (as a spider) and get the pips. The spider is waving her web up and down, just as I do. Taking the swings in both directions. And don’t forget, the Tarantula is the spider king.