Episode 212: The Market Doesn’t Give an F— About You

by robbooker on December 18, 2013

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In Episode 212 of The Traders Podcast, your host Rob Booker and his producer, Jason Pyles, dip into the mailbag, so to speak, and address some comments left on the Web site. First they talk about a comment from Tracey, which leads Rob and Jason to talk about whether they should be angrier on the podcast. They also discuss “The Walking Dead,” which leads to a conversation about our patience and tolerance for letting a trade go sideways.

Next we read a question from Ryan about Rob’s forthcoming book(s), so Rob describes “Man vs. Market” and a second book that may tentatively be titled “The Market Doesn’t Give an F— About You.” Rob also answers a comment from Bernie about containing losses, and Felix asks about Rob’s Wallaby indicator. Rob and Jason also answer the question: How long will The Traders Podcast last? How many episodes will it release? Listen to Episode 212 to find out! Thanks for your comments.

Links for this episode:

TFL365.com

Rob on Twitter: @RobBooker

The Traders Podcast on Twitter: @TradersPodcast

E-mail us! Producer@TradersPodcast.com

Trader Interviews.com

{ 4 comments… read them below or add one }

sunay December 20, 2013 at 7:37 am

i love the market so much i know it don’t give a F. about me but i care so much about the market and love it to pieces that when it hurts me takes my money away i cry like a baby,care like a mother and because of my loyal love to it i become romeo looking into the eyes of juliet
saying why do you do this to me i love you so much don’t you see i’m melting to pieces when you take my money away but because i care and love you so much what ever you do i will keep on giving my money to you. juliet (the market) says come in to my arms baby as long as you love and care i will keep on sucking your blood away till you don’t. but a caring loving guy like me don’t get it and melts his financial and mental capital away till he dies from his caring love.

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Brian December 23, 2013 at 11:27 am

Bernie’s method of money management, where he adjusts his stop to limit his losses to $500, even when he sizes up, will ensure he will get eventually get shaken out. This means he will lose $500 in his bad trades, $500 at the end of his great trades, mess up his fair to middling trades, and he will miss ALL of the potentially great trades because price isn’t unidirectional very often.

Some parts of trading scale. Bigger positions imply larger profits and larger losses. You can’t, for example, double your size and half your stop size just because you happen to like no larger than a $500 loss. This will merely ensure you get shaken out of all your best trades. Presumably, you picked a stop size based, at least in part, on the volatility of the market. That consideration doesn’t change just because the price moved in your favor.

When dealing with money, it’s best to think in terms of percentages. If you can’t get over that $500 figure in your head, you are going to have to trade more frequently, because you are not ready to trade size, and no amount of clever money management can change that fact.

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Dorcas del Icatessen December 30, 2013 at 8:16 am

Hi Brain,

Thank you for this great advice! I’m quite a noob so please be gentle with me 🙂 .

If I understand you correctly, do you mean that I should put my SL just where it SHOULD be instead of where i WANT it to be? And ONLY scale up when I can move the SL of my initial lot according to the same ‘rules’ that I used for my initial SL?

It’s just a game of patience then?
Thanks!

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Radoslav December 26, 2013 at 4:52 pm

Hi Rob & Jason; I red description of this episode with some skepticism and worries. But when listened to it next day on my way to work, I was really relieved to hear you are going to continue forever 🙂 It’s always a joy and pleasure to listen to you. Yours podcast listener friend Radoslav

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