Hey all! Rob Booker here...
The world of trading education is based upon the premise, however ridiculous, that somehow I can transfer my knowledge of how to trade successfully in some kind of a step-by-step program.
And if you simply follow that program, you’ll pop out on the other side with a big sack of money and huge smile on your face.
Of course it isn’t that simple.
There’s really no way that you can learn to successfully trade by just following a bunch of steps.
If I say I use this one moving average as a filter, even if it’s just one time, then forever after, there's going to be an online discussion that Rob Booker uses this moving average as a filter.
We want the world to be fixed and solid and interpretable. We want a step-by-step plan. But look at any billionaire — Steve Jobs, Warren Buffett, Mark Cuban, Carl Icahn — and you’ll see that each of them took a different path to achieve their goals. None of this is step-by-step stuff.
Mark Cuban built a broadcasting website for sports events over the web. And then he sold that for $5-point-something billion to Yahoo. Then he hedged all the Yahoo stock with options and, when the market crashed in 2001, he was perfectly fine.
That's not a step-by-step program.
No one had ever done anything like what he did before. Mark Cuban has a great blog about how he became successful, and there's not one step-by-step plan in there.
There are two kinds of learning:
Explicit learning (book learning)
Implicit learning (learning by experience).
After you attend this FREE event you’ll be able to spot opportunities like:
- 124.57% in 14 days on TLT.
- 103.17% in 15 days on Dell (DE).
- 174.13% in 8 days on Time Warner Cable (TWC).
- 142.4% in 11 days on NVidia (NVDA).
- 224.75% in 10 days on Flour inc (FLR).
- 96.76% in 21 days on Facebook (FB).
- 203.96% in 16 days on Iron Mountain REIT (IRM).
- 198.26% in 2 days on Amazon (AMZN).
Watch our training event to find out how.
Any success is the result of implicit learning. Learning through experience is the only way to do it. There’s not one thing we do really well that was learned by some downloadable PDF or step-by-step program.
What you need as a trader is experience and failure.
Failure is experience. But we're so afraid of making mistakes that we don't make them and we don't learn from them.
What we tend to do instead is overvalue someone else's experience. We go buy books like “Market Wizards.” But every single one of those people in that book will never be able to give you a step-by-step plan for how they succeeded.
Or you read these books about Richard Dennis’ experiment to teach people how to trade. Basically, these guys went in blind with a step-by-step program. It wasn't a successful long-term experiment. But do you know why it's famous? Because it's a step-by-step program. It gives the impression that all you have to do are these steps. But the problem is that the steps get you only so far.
Then everything goes to hell in a handbasket. Everything you did to follow those initial steps gets thrown in the garbage can. The economy fails. The account blows up. Even John Henry, who bought the Red Sox with his trend-trading fortune, went through long periods of drawdown and people accused him of trading a system that no longer worked.
You can only get so far following rules, installing a system, or following a strategy. You have to focus most of your time on failure.
And if you can create a robust system, failure will actually propel you to further success.
Ever heard a trader start speaking a different language and wonder what they’re talking about? Alpha… beta… lots… pips… There’s a lot of new terminology in trading. But pip is a big one, as it’s the smallest change that you can get in a currency trade, usually 1/100 of 1%. But what does that really mean in terms of dollars and cents? Here’s what a pip is really worth…