Interview With Professional Forex Trader Chris Lori

8/10/2019 Interview With Professional Forex Trader Chris Lori

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Interview with Professional Forex Trader and MentorChris Lori


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Hugh Kimura: Hello everyone and welcome to The Trading Lifestyle podcast! Im very happy to

have with me today, Chris Lori.

He is one of the first people that I started learning Forex from and I think he absolutely has the best

educational material on learning price action.

Very happy to have you, thanks for coming on, Chris!

Chris Lori: A pleasure! Thanks a lot for having me, Hugh. I appreciate it.

Hugh Kimura: Yeah, no problem. I guess, Ill just get into the questions.

Can you tell me a little about what you were doing before you became a Forex Trader?

Chris Lori: Yeah. You know my kind of path in FX started when I was very young. Wed sit around

the dinner table with my seven brothers and sisters, and my dad would constantly give us sort of a

lecture and lessons on the financial market. Because he was obviously quite in to it at that time

and still is.

But he really taught us to be financially prudent when we were quite young. We had to work hard,

and make our own money and he guided us on how to invest it and what-not.


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So I took an interest in being financially responsible in quite a young age. And wondering what the

alternatives were for when you get older. And I started taking interest in the financial market

specifically, while I was in the University well actually, just before the University. But I was of

course distracted by my bobsledding career. Prior to bobsledding, I was on Canadas National

Team Decathlon and I was recruited out of there to bobsledding.

So, that got started to put basically my post university career on hold for a while, and kind of

achieved my first goal of being in the 1988 Olympic Games. And then afer that, I figured we could

probably become World Olympic champions; so, I kind of remained focus on the sport while in the

meantime I continued to study the financial markets and I took the Canadian Securities course,

pretty tough course, in order to move into the financial industry, once I retire from sport.

And so my bobsledding career lasted longer than I had anticipated and went till I was 34-35 years

old; afer four Olympic Games. And when I retired from sport, I was ready to move into the financial

business. So, I began to place a focus on FX Trading. That was like in 89-99. I passively, well, took an

interest in FX market from about that time.

But I had to make some money afer retiring from sport, so I did some contract work in sport in

order to build some capital to trade with. And of course, I traded a little bit with the Tech Bubble

where I made some money and loss some money. And then I started FX from there. That was about

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In sport, you are put under a very large number of trying circumstance circumstance where you

need to understand yourself, how you are likely to respond in certain situations in order to

develop. I went through that process as an athlete.

When I began to start my trading career, and started to discover this, that really, Ive already been

through everything that trading requires of you from understanding process thinking standpoint.

And I simply had to convert it.

So, I had to understand the market at a very very deep level. And I had to have the awareness to

adapt everything that I learned in sport and convert it into the knowledge that I acquiring in

trading. The system I was thinking and building in trading was really just a question of converting

that mental capacity into trading.

And so there is no question about it. Thats why I say this to traders because for me, it was sport.

But for other aspiring traders, you have likely gone through experiences in your life where you

aimed to achieve something, and you need to reflect back the process that had to go through and

convert that into trading.

There is no way around it. You need to expand your knowledge of the market. And we can talk

about that in some of the future questions here.

Click here for more interviews: TradingHeroes.com



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My model is kind of spread out. My Intraday Trading model is price-action based. It is 80-90%

based on the price action and the volatility occurring in an intraday basis. My charts are clean. I

dont have indicators on my charts. I simply am watching the price behavior throughout the day.

Now, for long term position trading and working with clients, we ofen need to engage in long term

speculative positions. And so those are typically more fundamentally rooted. So Ill use a

combination.

On the one end of the continuum for Intraday Trading, 80-90% decisions are based on the price

action and price behavior that we see repeated over time. Yet, there is still a fundamental

knowledge, as sense of information flow and what effect it is having on the market. Thats also

going to guide your trading decisions to some degree because of prices either reacting or not

reacting to that information flow.

On the other end of the continuum, for the longer term positions which are more rooted on more

on the view of fundamentals of that specific country, there is also a price-action component to it.

Because we obviously are going to look at the charts and try to identify what the charts are telling

us versus what the fundamentals are telling us. Whether its consistent, or whether its not.




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So therefore, my model is spread along that continuum, but I think to those listening to this

podcast, my Intraday Mode is price-action based.

Hugh Kimura: Oh, okay. I mean, you have a ton of videos in your members area in your website. It

pretty much goes through your whole strategy. When I saw your stuff, I was like wow! Thats a

totally new way to look at it. And it made sense to me. I dont know, I just couldnt explain it.

Chris Lori: Yeah. You know, what we do is we have the price-action. And when we talk about price

patterns, we are not talking about your standard Head and Shoulders, Gartley, Three Drives

these types of patterns. Its more thats why I refer to them as price behaviors.

And so, the behaviors can be broken down into what type of behaviors we expect at very specific

times of day. And the price behavior is in relation to the order flow moving through the inner bank

market.

And as you refer to the support resistance, they are more or less kind of our standard reference

levels. And then within that support resistance, we are looking for fractals; which I know that term

is used a lot in FX and in trading. But, the simple definition of a fractal is really repeated patterns

of self-similarity reduced to every scale; which is effectively what we see in chart patterns.




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We breakdown this fractals and we look for this repeated behaviors and trade these behaviors. The

thing is that when we share this information and as you mentioned, Ive got this course which is a

big Internet Intermediate course, and we have traders club, and weve got literally countless of

archives of teachings. And in those teachings, its all price-action, price behavior, fractals, and price

broken down.

Those of our members who have succeeded (there is quite a large number of them). Its interesting

because once you see it, once you see the breakdown of price, we share with one another and we

are like this is amazing! And we just keep seeing this pattern.

Its because you have something that you have a common knowledge that you are sharing with

one another your like man, look how cool this is! Look how amazing the price is behaving in this

way which we anticipate.

To me, the reason why my trading is rooted in price-action is because price-action is the closest

youll get to the psychology of the market. So we are effectively trading in the psychology of the

market through the behaviors that is repeated day in and day out.




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Hugh Kimura: That makes a lot of sense, definitely. So, when did you start teaching students?

Chris Lori: I was probably 6 or 7 years into trading, right around 2006. What happened was a

group had asked me if I would do a workshop for their members. They had quite a large group of

membership base. And I said yeah, sure! Ill do a workshop for you. And so I figured that theywere going to give me the materials and I was going to present the materials. But they said no. We

want you to present your own materials.

So, because I wanted to be consistent in what they were teaching and of course putting my own

unique stuff, but they said no. Create your own course. I said okay. Give me a couple of months.

Ill put something together. So, I put a little course together and I said Ill give it a try. So, I really

really enjoyed it because I have some public speaking because of my status in sport in Canada

so I enjoyed the speaking.

Teaching FX took a little getting used to. But I became very comfortable at it. I really enjoy it. And

what I also found was that every time I would teach, it was an exercise (it was like pressing the

refresh button). It was an exercise revisiting a lot of aspect in trading that were very refreshing

and very helpful to my current state of mind.




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My course now has completely changed since then some 5-6 years later7 years later.

Nonetheless, I really really enjoy it.

Hugh Kimura: Very cool! Very cool! You mentioned that you have quite a number of successful

students; do you notice any characteristics that are common between those kinds of people?

Chris Lori: Absolutely. And this is extremely important folks. The one common characteristic

among all successful traders is that although you, as individuals, you will go out and you will

explore and youll learn, and youll go to forms, and youll learn a lot of aspects of the market. But

at some point, and quite ofen, as you are developing as a trader, you will very very much depend

on others to share information with you.

Thats a part of the natural process. But at some point in time, you will have gone to the process of

acquiring such an in-depth knowledge of the market and more specifically, exactly the set of

parameters that you want to use to trade also called your trading model and your risk model.

And youre going to have to become an independent thinker based on the information you have

acquired. So you have a level of confidence in the information you have acquired, a level of

confidence in your psychological state, and in the manner of your process thinking, and ultimately

making your own decisions. Once you start making your own decisions based on a concrete set of

parameters, you will succeed in trading.




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And every one of the individuals Ive mentored see in my training and my mentorship, I dont say

these are the parameters, these are the rules. Go out and copy it. Thats not how you learn

trading. You will not succeed in trading that way. Okay?

So, every one of the successful students has built a foundation of knowledge through our processand through our program. But every one of them has gone out to become an independent thinker

and they used their own set of parameters. The classic example, probably the most proficient and

successful trader that I know is a woman. Her name is Maria. And she will use she has favorite

trades: the A, the B, the C, and the D.

I wont get into the details, but those four types of trades she has taken from my trading model;

however, the manner in which she trades them is uniquely her own. And the decision making

parameter that she has created are completely, uniquely her own. But is based on what she has

learned from us, but she went on her own to become an independent. Shes just phenomenal,

phenomenal trader! Shes been through the process so many times.

You want to be at a stage in your trading, for discretional traders who are once the trading

decision becomes a natural process in how you react to price following the decision to enter is a

natural process, how you manage your risk is a natural process, and so on. And that repeats itself

through every trading exercise.




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Hugh Kimura: I see. The question I came up in my mind was: do you recommend backtesting

historical data? Or just strictly forward testing and trying to figure out from this point forward?

Chris Lori: Yeah. Its a very delicate combination of the two. So, what you want to do is what

I have our people to is we have a set of, lets say, a set of 10 parameters or 10 price behaviors

for individual so study. Of these 10 price behaviors, what we do is we have them engaged in

exercise.

You can combine 2 or 3 of the price behaviors and engage in an exercise. What an exercise

would do is you take one or two of these parameters and combine them. And lets say, you useForex tester sofware. And you can get the live simulated data and you can speed it up at your

discretion.

So, you can go to your Forex tester sofware and you can use a different set of parameters, and

go through exercises at a highly intensive level. So, what you are doing is you are constantly

engaging in the market, at a high level intensity.

You are watching these sets of parameters. Some will be low probability, some will be higher

probability. And as you build sample sizes, lets say you do a sample size, you can do large

sample sizes through the sofware, or even in live time through a trading session.




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So, every time a price hits its level, you make a trade of course. You make a trade and you set a

stop at a certain level limit it at a certain level. And then you manage it accordingly. Move the

stop to breakeven afer you identify X, Y, and Z. And so that your whole view or the market,

your whole approach, becomes process-oriented.

Now, you are doing the exercise at a high level or intensity. But when it actually comes down

to making trade in a live account because you have worked with a sample size of 300, 500, or

a thousand the process is going to be so automatic to you. And youre only going to pick the

high probability scenarios.

Because youve built such a large sample size, youre going to know whats low probability

and youre going to know whats high probability based on the information you have acquired

through these exercises. And so, when it comes to live trading, you are only going to pick the

high probability ones. Youre going be process- oriented.

Youre going to know exactly where to set your stop, when to more it to breakeven, when totake your first limit, order how much to keep in the trade, things like that.




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So, I encourage our students to engage in exercises based on a specific set of parameters. And

what that does is it internalizes your understanding with the market becomes a part of you.

You have such an in-depth understanding of the market. That when youre trading, your

decision-making process becomes automatic.

You automatically know when to and when not to enter, what price-action is suitable, and

what price action it is you want to stay away from so that the market becomes a part of you.

Thats really what we are aiming to achieve. And then youll become an independent thinkerand full time trader at that point theres no shortcuts!

Hugh Kimura: Yeah. No doubt! I found that very helpful about the Forex tester and the back

testing. But at some point you have to determine where do I put in some money and actually

do it for real. How do you recommend getting started at that point?

Is there certain amount of money that people should get started with? Or is it up to the

individual, pretty much?




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Nonetheless, try to be focused. If youre running around trading on a lot of different currency

pairs and the a few trades here and a few trades there that are just too random, you are not

going to succeed.

Hugh Kimura: That makes a lot of sense, definitely. Maybe we can shifgears a little bit

around here and what really kind of interested me about you is the fact that you manage a lot

of funds. How did you get into that?

Chris Lori: My mentor that really got me into price-action. I kind of had one foot on the door,

price action was kind of a foot and a half in the door price-action, when I started trading live.

So, I had a few trades that I really like that I stuck with them.

Then, when I hooked up with my mentor who we were brought together by an analyst, co-

friend of ours, and he said you guys are very similar in your approach. You guys should get

together.

So, we got together. We started chatting and chatted much about price-action. What

happened was, we started at about the same time, but he accelerated; just a very bright and

insightful guy. And he started exploring price-action more which I though very very

interesting.




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We would start together and do a lot of back testing, and a lot of studying until our eyes were

bleeding! Working with him, to manage funds together little bit of some small funds. From

there, things went well.

He ended up getting a lot of eye surgeries because of the strain in his eyes. But we ended up

doing fine there and then moved on. I just retained a couple of clients and started trading for

them. And then I got some exposure to the Singapore market and started to take on different

types of trading.

More and more fundamentally grounded trading. And thats when I got in to the Aussie Yen.

And start to focus on that currency pair.

Because what happens is when you work with a client, you are actually engaging in a whole

new process. And you have to adapt to whatever request they are making of you. And of

course, spot trading is one thing.

But you know when we started this Aussie Yen trading it was very very interesting. And then I

basically gravitated toward it, and became my primary and most liked and most consistent

pair to trade. The managed funds kind of evolved. And then you get a few clients who are

confident in you. And it kind of just goes from there.




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Hugh Kimura: I see. So, if there are people out there who maybe got a good track record and

want to get into managing funds. How would you recommend they get started?

Chris Lori: Whats going to happen is, anybody who wants you to manage their funds are

going to want to see your track record. A couple years out is good. A two-year track record

should get you some initial funds.

I dont really recommend trading for family and friends. Its usually not a good idea. Managing

my family and friends can be certain situations can arise and can be a challenge for you. Its

usually best to have a 3rdparty set out with an agreement. What I recommend is you start out

with a good little pocket and consistency. And through the banks and what-not, word will go

out about your trading. And then somebody interested will come your way. Usually comes to

performance.

Just to let you know, some of the companies that will introduce funds, there are number of

them out there, they like to see the day to day volatility in the account. They want to knowwhat the net asset value is at the end of the day afer you close your trades. Theyre going to

look at the volatility on your trading. So, if youre up 11% one day and down 8% the next, they

dont want that. Thats too much volatility, because as soon as you take 5 losses in a row,

youre going to take them down 30-40%.




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People dont want that. They want good steady risk with low volatility. And your risk model is

going to have to be pretty tight. You have to present a very good and tight risk model and in

your processes as well.

Hugh Kimura: I see, very cool. Maybe you can talk a little bit about I know you mentioned it

before but maybe talk about your website and what you do on those websites and the

domains and everything?

Chris Lori: Yeah, you bet. Its been a real pleasure having my own website! Its really been a

pleasure just to be able to share information. We effectively have two websites and I have a

partner. His name is Joe and hes really in charge hes the boss; because if there is no Joe

there is no public figure Chris Lori.

But we have chrislori.com which is a free website. In that website, theres free information,

videos, and I strongly recommend this video series, I think its called The Essential Qualities

of a Successful FX Trader.

So, go through those videos to understand what you need to do to succeed in trading, because

that will explain everything.




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In that website, weve got free videos for you to learn from. We try to update it and add new

videos. If we do a webinar, we post it there. Theres a good webinar going on Pricing

Efficiencies. Its a price-action webinar. Go in there and check that out.

So, thats a free website. What we do is we dont sell things to people. Were not pushing sales.

If you come to our website, if you think that there is something there that you are interested

in, and if you want to buy a product, then you go to ProTradersClub.com, and thats where our

product is listed. Theres nothing salesly on them.

It just gives you the facts and information on the various products and services we have

available. And if it appeals to you, great! If not, no worries. You can keep coming to our free

website.

If you join the Pro Traders Club, its recommended that you take the course first. And the

course is very very very inexpensive its only $400.00 for the online course which runs for 35

hours. The Pro Traders Club is for high level concepts thats where the higher level conceptsare shared. And there are countless video archives in the Pro Traders Club. And you can review

all the teaching videos in there. Theres going to be hundreds of them.


http://tradingheroes.com/http://protradersclub.com/


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You can go there, as well. We have workshops. We have workshops from time to time where

we methodically go through the higher level concepts which are not shared in multimedia.

They are in any courses in the Pro Traders Club, but theyre not organized like they are in the

workshops.

In fact, check our website for the latest workshop that we will be having. We are having one in

May, but this recording might be online for a while. So, just check our website at chrislori.com

for the latest workshops.

Id also say that almost everyone that succeeded have been into one, at least one, workshop.

But we only have one a year in the States. So, hopefully you can get to it.

Hugh Kimura:Yeah. I definitely want to make it out there. But yeah, I really like the Pro

Traders Club. The Pro Traders Course really helped me a lot.

Chris Lori:Thank you.

Hugh Kimura: And you came out with the Aussie-Yen Course too, right? Recently?




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Chris Lori: Yeah. The Aussie-Yen Course, that was originally developed for another party.

That party fell through so I still had the CDs from it. So the Aussie-Yen Course has the CD or

DVD component to it, and we also have an online component to it, as well. So youll get actual

DVDs and then youll also get additional information on the coursethats available online.

We also have a section where I continually add videos. So, the Aussie-Yen Course doesnt just

a spots.

Its a course where I will continually and continually be adding new videos to show insights

and information of current market action and some of the things we are thinking of doing; or

new aspect of price-action that I want to share with the members.

It is my favorite currency to trade. And in my view, you can trade that into that pair and into

that pair only even when it sideways that pair only.

So, its not as volatile as the other pair, you have the trade in your favor, for the time being.And we explain all that in the course.


http://tradingheroes.com/http://www.tradingheroes.com/recommends/chrislori


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Hugh Kimura: Yeah, very cool. Thats pretty much the only courseIve seen that specializes in

that one pair. So, I definitely want to check that out in the future.

Chris Lori: You bet. Well get one to you!

Hugh Kimura: Okay. I guess Im pretty much out of questions. Are there any last words that

you want to say to people who want to get started in Forex? Or maybe got started and are a

little stuck?

Chris Lori: Yeah. I think what happen is people send me a lot of questions about how to get

out of being stuck, or how to proceed to succeed in the business. And thats what inspired my

series of videos I have at chrislori.com, in the free members area.

Sign up as a member. If you go through those videos, its probably 3 hours or so, or probably

even more. If you go through those videos, it should answer about 90% of you questions on

how to succeed in trading.

If you have any other questions, from time to time, I am free to take phone calls and you can

call me. But go through those videos and that should help you to understand the process in

which you should engage to succeed in trading.


http://tradingheroes.com/http://www.tradingheroes.com/recommends/chrislori


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Hugh Kimura: Very cool! I really appreciate you taking all the time, Chris. Its great to talk to

your for the first time actually, right?

Chris Lori: Yeah. You and I have been in touch for a long time now and we finally get to talk.

So, stay in touch, Hough, for sure.

Hugh Kimura: Yeah.

Chris Lori: It will be good to hear from you. Its been a real pleasure! Anytime.

Hugh Kimura:Alright, thanks!

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I hope that this interview has helped you on your trading journey.

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Interview With Professional Forex Trader Chris Lori

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