Interview with Kerry Given

Could you tell us a little about yourself?

My formal education consists of a B.S. and a Ph.D. in chemistry; I also completed half of the coursework for an MBA. My career began in research and development, and moved into technology management. In 2007, I founded Parkwood Capital, LLC to provide “no hype” stock and options trading education and coaching.

How did you get started trading?

I began trading stocks for my personal account in 1982 and added simple options strategies in 1999 (covered calls and protective puts).

How long have you been trading now?

I have been trading stocks for 28 years and trading options for 11 years.

What do you like best about trading?

Trading is a fascinating mixture of rational analysis coupled with intuitive judgment. This makes for a fascinating intellectual challenge. In addition, trading is an individual activity with a significant sense of accomplishment, free from the frustrations of corporate bureaucracies and politics. You are truly in business for yourself.

What markets do you trade?

I trade the equity and equity options markets.

What style of trading do you use?

I use several different styles of trading in different accounts, consistent with the objectives for those accounts. This ranges from longer term blue chip stock holdings, covered call strategies, and protective puts to more speculative long calls and puts, vertical spreads, calendar spreads, butterfly spreads and iron condors.

What have been the biggest influences on your development as a trader?

Reading Investors Business Daily has probably been the most significant influence on my stock trading. My options trading has been influenced by extensive reading, training by the Options Institute of the Chicago Board Options Exchange, and discussions with one of their instructors, Jim Bittman,

What is the one biggest lesson that you have learnt since starting trading?

Risk management is the most important lesson for all traders.

How did you get interested in coaching other traders?

I answered a request for tutoring by someone in an options trading chat room; coaching that person and his friend started my coaching practice.

Do you focus on coaching of one particular area of trading, e.g. risk management / psychology or finding trades?

My classes and webinars cover all aspects of stock and options trading. I try my best to provide the trader with a solid foundation for trading stocks and options – no hype and no get rich quick schemes. My private coaching is often used to focus on a specific trading strategy or adjustment technique.

How do you work together with your clients? E.g. phone / email / screen sharing?

I offer private coaching either face-to-face or via webinar, depending on the client’s preferences and location. My group classes are delivered via webinar. In both cases, my clients always have my personal email address and phone number for questions and advice. And this access does not end with the end of the course or coaching.

What sort of results do your clients get after coaching with you?

This varies across the board. Some of my clients simply want to have more informed discussions with their financial advisers. Many of my clients see improved structure, focus, and consistency in their trading. I consistently emphasize risk management in all of my coaching; however, not all clients take that to heart.

What is the most satisfying part of coaching traders?

I enjoy teaching and get enormous satisfaction from helping students achieve success.

What is the biggest but most easily fixed mistake that you see traders make?

Inconsistent trading style and little or no risk management. It is crucial that the trader have a systematic approach to her trading, consisting of rules for trade entry, profit stops, time stops, stop losses and adjustment triggers/techniques.

Do you recommend journals or other record keeping as an important part of trading?

Yes. The trading system I recommend traders develop needs to be written down. I also recommend periodic post audits of one’s trades to assist in continued learning and improvement.

What are the most common issues that you see in your clients that prevent them from becoming better traders?

Lack of a solid approach to risk management. For example, it is common to see a trader initiate a trade and establish a stop loss price. Yet, when that stop loss price is hit, the trader rationalizes why the stock will pull back if given more time. Effectively, this trader has no risk management.

What advice would you give traders who are just starting out?

1. Build a solid foundation of knowledge; don’t cut corners.
2. Hire a coach; this will save you a lot of money in the long run.
3. Start your live trading with small amounts at risk and scale up slowly.

What 3 books do you recommend traders read?

1. Options As a Strategic Investment by Larry McMillan
2. Options Pricing and Volatility by Sheldon Natenberg
3. No Hype Options Trading by Kerry Given (I have to plug my own book!)

Any other advice or wisdom from your experience in trading that you could share?

Whatever your vocation, you did not get the necessary education and become proficient in that profession in a short period of time. Likewise, don’t expect to become a good stock and/or options trader after a two day course or reading a couple of books. A proper educational foundation requires time and hard work, but live trading experience is crucial and that takes time.