Episode 282: The Difficult Change That You Need to Make

by robbooker on August 20, 2014

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In Episode 282 of The Traders Podcast, your host Rob Booker talks with Jason the producer about the difficult change that you know you need to make. Rob talks about the obstacles that traders face when they need to make such a change. He says some people don’t have a road map; they don’t know what to do next. Rob also discusses two options for the process of making a change: the self-taught direction and the mentor direction. Rob talks about the importance of having a goal and a destination in mind. Rob also reveals what he thinks is one of the best trading strategies in the world! Rob also takes a trade on the spot during the podcast, so we’ve posted the chart above. Enjoy! Thanks for listening.

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{ 7 comments… read them below or add one }

Bob August 20, 2014 at 9:34 pm

Rob, I decided that I like you. So I’m gonna give you a piece of unsolicited advice. You’re causing yourself unnecessary pain by not using a trend following system. Use your missed pivots all you want. Just do it in the direction of the trend.

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Jon Donley August 21, 2014 at 1:17 pm

As I understand it the missed pivots indicate the trend, he takes plenty of trend trades in addition to the counter trend. I don’t think he feels the pain anyway cuz nine times out of ten he trades himself out of it (I’ve only been watching for a month or so but still)
You know what they say about unsolicited advice Bob….. I’m sure he’s relieved you like him though, what a relief that must be.

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Matt LaCoco August 20, 2014 at 11:41 pm

This was a brilliant episode. I’m a huge fan of the “best trading strategy in the world”. I still use it!

Jesting aside, I am no stranger to the idea of opening a “random position”. One of the things I’ve learned about myself, is that I’m prone to indecisiveness to an extreme degree. Many traders are. There are times when I have a difficult time discerning any rhythm in the market, and there’s room on any chart for enough lines to make any conceivable argument about where price is headed. I’ve realized that in the past this has caused me a lot of grief, and not just in trading.

When I feel this happening to myself, I will open one of these “random positions”. Managing my open positions is less subjective than a good entry. Every one of us has given our screens that blank stare, the one that says “uhh, umm uhhh” in an endless loop. Well, if a trade goes against me, I know what to do. If a trade goes in my favor, I know what to do. In either case, there’s no uhhs or umms about it. An open trade snaps me into a mode of action rather than apathetic bewilderment.

When I buy or sell currency, whether I made or lost money is determined by the close price, not the open price. Some completely random unnamed podcast comment poster, may have some semantic criticism on that point, but I don’t care, I make my living doing this trading thingy on my komputor, and I make it work. Speaking of Bob, thanks for free advice! Wait, were you being serious? I’m not sure how your affection for the host is relevant here, you obviously have no idea how Rob trades (just as many trend-following as counter-trend), and you have even less insight to what causes him, or anyone else “pain”, let alone what that “pain” would look like on a price chart. I’m happy you decided you liked Rob though. If you want I can pass him a note in 3rd period asking if he likes you back. I’m not doing any yes/no check boxes though.

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Matthieu August 21, 2014 at 6:46 am

Jason and Rob,

You never stop to amaze me with your timing of subjects. Each and every podcast seems to fit perfectly with my journey to becoming a self-supporting trader (right now I’m still a job-supported trader).

You DO realize that this podcast is actually about spiritual growth? Don’t you?
It occurred to me that how and why we trade tells a lot about where we stand in our personal and spiritual development. Our trading style and results are quite a good gauge into that hidden world although it’s not a qualitative measure. More like a pushpin on a map: This is where you stand right now!

Rob, I love your idea of handing out trades to people just to let them work their ways out of it!
You could call it ‘TFL Fight club’ and you could be the Edward Norton of traders.
What I really like about the idea is the fact that you can actually hone and show your skills at trading. Not just luck and gut feeling but actual skills. Everyone sort of expects a good outcome, whether that is in your personal life or in business, but when things go wrong it’s an opportunity to show your skills, integrity and trustworthiness!

Jason, I love your role in the podcast as a non-trader and your insights and questions really are the cherries on the cake. You really offer another perspective on what’s being said. Kudos for your excellent audio quality and editing too!

By the way…
Rob, you apologize a lot for being offensive and rude but I don’t think you are. Maybe it’s because I’m Dutch. A lot of us tend to think that you should always be able to express your opinions, even if it gets you into trouble now and then. You have a great sense of humor and are striking me as a very intelligent person. The fact that a really kind person like Jason stays with you tells me you’re not half as bad as you apologize for. Off course! Things may not be as they appear but only very superficial fellow beings would not be able to listen ‘between’ the words and recognize that you are a person with a very high level of integrity and a really big heart. And I don’t mean big from eating a lot of junk food at Disney World.

Gentlemen, keep up the great work and thank you for all your effort and wonderful episodes!

With kind regards,
Matthieu

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BrianF August 21, 2014 at 8:39 am

I’d go Matt one further and say indecisiveness, at least as far as it pertains to market opinion, can be a good thing in trading. If you don’t consider that both sides of the trade are possible, the human thing to do is to anchor to your decision, greatly increasing the chances you will later discount relevant information telling you that you’re wrong. In a single trade, you have to pick the right side of the trade or you don’t make any money. In a 1000 trades, it doesn’t matter which side you choose, there’s at least 500 winners out there waiting to be pulled into the boat. I’ll choose process over predictions any day.

Episode #280: One “thing I wish I had done when I started trading”: I wish I had been less decisive about the price of gold, LOL, THAT was a lesson about predictions and anchoring.

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Jon Donley August 21, 2014 at 1:06 pm

Great episode, great timing for me…. helped me get a bit of perspective

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Brian F. August 25, 2014 at 2:22 pm

“Direction doesn’t matter.” WORD. Rob’s one of the few trading educators out there saying this. Yes, in one trade, predicting the right direction is critical, but in 1000 trades, prediction is way down my list of priorities. If you take just 4 trades a day, in a trading year of @250 trading days, that’s 1000 trades. Making money is about treating those 500 expected winners just a little bit different than those 500 expected losers. THEN you can concern yourself with nifty systems of prediction.

“How do you know you are going in the right direction? You need a goal, a destination.”

True, but there’s something else at work in this business, feedback. Most of the feedback you get is just noise, and that can prevent us from reaching our goal. For example, flip a coin 1023 times. Probability says we can expect one string of 10 losers in a row, two strings of 9, four strings of 8, etc. Unless you anticipate the obstacles probability ensures you will meet along the way, you’ll never reach your goal, because you’ll change your system long before you achieve success or failure. Remember those old school printers that made pictures out of black and white dots? Put your nose to the paper and the results look meaningless. Day to day, the feedback you get in this business is a lot like that, full of noise and misleading.

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