Joseph Fahmy is the managing director at Zor Capital, LLC, a New York based investment management firm. Joe has over 17 years of trading experience during which he developed his investment strategy. He worked in New York City for a boutique research firm where he gained extensive knowledge of the technical analysis of stocks, market forecasting, and risk management.
Joe completed his undergraduate work at Tufts University, receiving a B.A. in Economics and Religion in 1995. Outside of trading, Joe enjoys playing the drums, travel, and sports.
My Investment Philosophy:
The first thing you HAVE to do is define yourself! Are you a trader? Or an investor? I am a trader. I hold positions anywhere from 2-3 days to 2-3 months. I screen the market every night with proprietary screens I developed over the years. These screens are both technical and fundamental. They are based on the “Greatest Winning Stock” models and studies done by William O’Neil. Essentially, I start with sound fundamental companies and try to trade them at the proper time AND when the market is healthy. I believe the market is healthy 2-3 times a year, do your homework to identify those times, and trade them aggressively. The rest of the time, build cash and protect your profits. As Jesse Livermore says: “You should not be in the market all the time.”
Find a philosophy that fits your personality and mimic someone who has been successful at it. I don’t believe in re-inventing the wheel. In other words, if you are a long-term value investor, study Warren Buffett. I like my growth strategy because it combines both stock trading and market timing, but it might not be for you.
Be ready to work at it! Remember, there is NO substitute for experience and stock trading involves hard work and emotional control. Gerald Loeb says: “Knowledge born from actual experience is the answer to why one profits…knowledge means information and the ability to interpret it marketwise.”
Study great traders. Three common words of advice from the best traders are: CUT YOUR LOSSES! You will begin to realize the importance of this advice when you study the top traders.
Joseph Fahmy is the managing director at Zor Capital, LLC, a New York based investment management firm. Joe has over 17 years of trading experience...More »