I have got a real treat for you today. Joshua Hayes, aka MauiTrader, was gracious enough to answer some questions I had about his trading. Joshua runs BigWaveTrading.com and has been trading for a living since he was 18. Lastly, I will be making comments throughout the interview that will be in italics. Enjoy!

How would you describe your trading system?

My methodology is a combination of CANSLIM investing (top investing strategy according to AAII that William O’Neil started) and momentum investing. The momentum comes on both ends. In up-trends like what we are in now, since 3/10/09, I will go long the strongest stocks with the best chart setups for long-term gains (cup w/handles, double bottoms, base on base, flat bases, saucer baises, flag patterns, etc.).

At the same time, in down-trending, bearish market conditions I will short the stocks that ran up the most in the previous uptrend. When they breakdown at the correct moment, that is normally around the second to fifth time of testing the 50/200 day moving average areas, I will look to go short.

The most important rule in this system is to cut losses very small on your biggest positions. in tiny positions you can give them more room as CANSLIM methodology does not apply to non-CANSLIM speculative stocks.

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