Who is Rob Booker?
Rob Booker trades profitably for his own account and manages money for others. Rob has trained hundreds of traders around the world. He has helped them develop their own trading systems, but more importantly, Rob focuses on helping traders deal with the mental, psychological, and discipline issues related to training. For Rob, successful trading is more mental than anything else.
Speech Material:
It was not long after my big loss that I realized that in order to trade successfully, I needed to have an edge. Without some kind of informational advantage, I was not going to be successful. And you know what?
Without an edge, you’re not going to be successful either.Perhaps you are a profitable trader. It’s possible that you already have some ferocious trading skills. One time there was this dog in my neighborhood, and he was really, really ferocious, like he could bite your leg off in one bite, and then as he was chewing on your leg while you were screaming, he would be grinning and stuff. Maybe that’s how ferocious you are as a trader.
Getting naked is the first step.
Step 1: Get Naked
Ok, I don’t mean that you should actually take off all your clothes. But if you are not yet successful in trading, you must strip down all of your pretenses, your pride, and your previous knowledge. Dump it all. Start over. Take a deep breath.
Let me give you an example. I once worked with a trader who had studied technical analysis for 5 months previous to hiring me as a mentor. He was fascinated by many different indicators, including the MACD, moving averages, Bollinger bands, Relative Strength Index, and a few others. He was using all of these indicators on his charts when he first started with me. He asked if we could work together to put those indicators into a system for him. A profitable system that he could use every day.
I encouraged him to delete all but 2 indicators from his charts. This would help him to focus. No longer would he be confused by the conflicting messages that all of the indicators were giving him.
Instead of being excited about the prospect of reducing the information overload, he protested. What about all those months of study that he had done? All of that would be lost if he deleted the other indicators!
Two months later, he relented. After crippling losses to his account, he was ready to get naked. He humbled himself. He agreed that he was taking in too much information. He was willing to admit that he needed to reduce the amount of information he was studying every day – even if this meant that he had wasted 7 months of his trading life.
He deleted the other indicators, focused exclusively on MACD and moving averages, and has been trading profitably ever since.
Step 2: Get Some Naked Backup
I trade with a team. Granted, my team consists of me and just one other person – Maxwell Fox – but that helps me trade better than I could on my own.
Team trading is a concept that I introduced in my training, because traders seemed to do better when they could bounce ideas off one another. They don’t necessarily all take the same trades, but they at least can voice their trade ideas, get feedback, plan trades together, and keep each other honest.(PS : I even share my plans with peoples)
I found that when I first started, it helped me to have another person to whom I would be accountable for all of my trading. That’s what I mean when I say you need to get some backup. Someone to get inside the barrel with you, to help you when you make a bad trade, to keep you humble when you make a good trade. That kind of stuff.
Step two, in essence, is to trade naked with other people.
Step 3: Make a Naked Plan
Over the years, I have read at least 1,000 trading plans from traders around the world. There is one common characteristic of the best plans:
They were short. They were simple. The very best were just 1 page long.
Don’t run out and delete the last 5 pages of your trading plan just because I said the best plans were only 1 page long.
Wait. Wait a minute. I take that back. I think you SHOULD run out and delete the last 5 pages of your plan. Make it one page.
Make it one page, and cram everything you can into there. Tell me, in your plan,
- When you plan your trades
- What money management system you use (fixed fractional, etc.)
- What your primary entry and exit triggers are.
Step 4: 1-2-3
I have talked about this in front of groups. I have talked about this in front of individuals. By email, by phone, by fax, by instant message, by carrier pigeon, and by message in a bottle.
And very few people ever listen to me.
Test 1 currency pair. With just 2 time frames. With a maximum of 3 indicators. That’s it. 1-2-3.
Too many traders feel that they will do better if they have more information. You know that’s not true. So, here is the plan:
Test 1 currency pair, with just 2 time frames, with a maximum of 3 indicators, and test for at least 100 trades. See what your results are. Test with a small live account if you are wealthy. Test on a demo if you are not. Testing takes a long time, and no one likes to do it. Be patient. Test. Try different things. Test on historical charts by playing the candles back one at a time. Testing pays off.
A Bunch of Naked Rules
- You are looking at too many currency pairs, too many time frames, and way too many indicators. Get naked.
- You are trading live too soon. Get a naked demo.
- You did not test your system extensively. Test naked.
- Your forex dealer is not running your stops. You are just taking bad trades.
- Support and Resistance is the greatest invention ever. Support and Resistance can make you wealthy.
- Put one indicator on your charts. Make a system from just one indicator. I bet you’ll make more money.
- Think about pips, not dollars or euros or pounds
Thanks to Shiree Mumgain
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