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Join Rob Booker and professional coach and independent trader Scott Welsh as they discuss principles of money management, and specifically, how large (or small) your profit target should be. Scott Welsh is the co-creator of and co-instructor on The Bossilator, and he does all of his trading on a mechanical basis.
In this episode Scott shares some personal stories about his initial goal of aiming for small profit targets and how he couldn’t find a way to trade profitably with that approach. Rob and Scott also discuss how many traders pursue very high win percentages because it gives them the feeling that they’re being successful. Scott talks about how the small profit targets are extremely exhilarating on a day-to-day basis, until you lose it all in one day, which feels awful. Rob examines this universal trap that he says happens to everyone.
Scott and Rob also talk about coming to terms with the impossibility of knowing when we’re going to take a huge loss, and ultimately, they strive to wrap up this episode by telling traders how to go about finding an optimal profit target for them, regardless of whether it’s large or small. Please listen — and stay tuned at the end of this episode for a special announcement!
Scott Welsh at Bossilator.com
Special announcement link: MIAMI LIVE SEMINAR
Book recommendation: When Genius Failed: The Rise and Fall of Long-Term Capital Management by Roger Lowenstein
Tagged as: currency trading, episode 63, forex, large profit targets, miami live seminar, money management, professional trader, rob booker, roger lowenstein, scott welsh, small profit targets, the bossilator, the rise and fall of long term capital management, the traders podcast, trading career, trading for a living, trading from home, trading method, trading strategies, trading strategy, trading success, when genius failed, win percentages
{ 3 comments… read them below or add one }
Hi Rob, I was wondering what exactly do you mean by small profit; 5, 10, 15 pips? Thank you for your time!
Pablo from Connecticut
Pablo, I love CT! I bet the summertime there is just beautiful.
Would you mind if I did an entire show about what it means to have a small profit? I have stories to tell and much more.
Hi Rob, I like CT, however, I’d rather be in Miami now!!!
I believe that making an entire show talking about small profits will be awesome!!!! Thanks again!