Rob Booker made 70% of all his money from 2004 to 2009 in currency trading, and his only goal was to never get stopped out of a position. Back then, Rob was holding trades anywhere from 6 to 8 months or even up to 1 year. Never getting stopped out sounds risky, so Alex sits down with Rob today to get more details on his strategy.
Rob went to law school in the 90s, but soon discovered that trading was his real passion. After a failed business endeavor, he decided to take the risky rather than the safe route and started trading currencies for the next 14 years. At the beginning, he studied charts with the help of Thomas Dorsey’s “Point and Figure Charting: The Essential Application for Forecasting and Tracking Market Prices”, and Dr. Alexander Elder’s book “Trading for a Living” – with mixed (or rather bad) results for the first 11 months.
In Rob’s experience, nothing good ever comes from being frantic. And, according to Rob, trading is about being skeptical and being aware of risk: don’t blow up your trading account! If you can survive and stay in the game long enough, you can make it. In that context, Rob’s advice is just turn pro! You don’t know what will happen. Stop chasing certainty! It’s not about the rules; rather it’s about having a good perspective. When Rob wakes up in the morning he’s excited about the challenge. To stay in a good mindset, accept that you have no control over the stock market. Rob always focuses on doing the “next right thing”. When you start trading, your only responsibility is not to get into the trade too early and focus solely on trading and not on other business or family issues. Let go of what you cannot control, have your basics down, and execute them perfectly.
Rob has a maximum risk, but he lets the trade work out as he believes that short sellers are usually on the right side. In other words, short selling is being in a disagreement with the irrational behavior of stock pumpers. As a short seller, trade small and spread the risk over several positions. Usually, the low float stocks that are being pumped each morning all fail in the long run. And if they don’t’ fail – take a small loss. At the beginning, trade so small that nothing bad can happen to you and document all your trades.
Traders must stop expecting to be rewarded right away. Stay in the game and be patient about making money. Track every trade, share it with other traders, and review your trades on a weekly basis while trading small at the beginning.
According to Rob, a trader doesn’t learn anything by taking 20 trades a day, and by getting in and out of a trade quickly. Wait for the right opportunities, and attack like a sniper! Successful traders are not frantic in the markets. Nothing good ever comes out of being frantic. Often, you win by being patient, slowing down, and keeping a focused mind.
Rob also credits his success to having good habits. Trading success is about eliminating bad habits and building good habits. It’s about slowing down and focusing on habits, not being pulled into trades by giving into triggers and emotions. Don’t let the excitement dictate your trading! He also uses “practice days” and “rest days” to optimize his trading skills. Missing trades is fine. Learn to miss trades and be comfortable with it. This is key to finding consistency. Always be in charge and bring the best version of yourself to trading each day. Wait for the best set-ups to come to you!
Pro tips from Rob:
- Know the basics!
- Let go of what you cannot control.
- Don’t be frantic in trading.
- Trading success is about eliminating bad habits and building good habits. Have them on auto pilot!
Review the following first few steps in trading:
- Get yourself under control and work on yourself! Burn the gambler by missing trades. Learn to be a patient and balanced person. Step back and don’t be dependent on trading profits.
- Learn to document your trades; screenshot and circle your entries and exits on a chart.
- Find someone who is a verifiable profitable and balanced trader and ask them if you can send them your trading journal for accountability.
Thank you, Rob, for sharing your advice that has helped so many traders in the past. What a great interview!
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Book Suggestions from Rob:
Clear, James: “Atomic Habits”
Dorsey, Thomas: “Point and Figure Charting: The Essential Application for Forecasting and Tracking Market Prices”
Elder, Dr. Alexander: “Trading for a Living”
Fogg, Dr. BJ: “Tiny Habits: The Small Changes that Change Everything”
Holiday, Ryan:” Right Thing, Right Now”
Parrish, Shane: “Clear Thinking: Turning Ordinary Moments into Extraordinary Results”
Additional resources can be found here: Top Trading Resources for Enhanced Performance | BTheTrader
Rob Booker:https://www.robbooker.com/about-me
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