Millionaire Traderscan afford to lose. I might be the only guy saying this out there,
but I seriously believe that that phrase is enormously damaging
because it teaches people that the money they’re using to trade
is not significant enough to be protected. The first and last and
most important thing is that I’m a defensive trader. So I feel that
there is no excuse for losing the entire amount of trading capital,
meaning if that’s money that people can afford to lose, then I’d
rather have them give it to me and I can take them to the movies
and we can take a long walk on the beach, hang out together, and
we still have something to show for it later. But it is not money
that people can afford to lose. It represents somebody’s financial
future. We would never move into a house that we could afford to
have burn down. We would never buy a car and only buy it if we
could afford to have it smashed into a semi-truck. But we regularly
open our trading accounts with money that we say we can afford
to lose, and so it’s as if we’re from the beginning saying: “Well,
this money wasn’t very important to me.” I think to certain degree
that the money that we’re entrusted with to trade is sacred money
that not only represents the amount that’s in the account today, it
represents what it could be later on in life—the quality of life that
it could provide for someone. So it’s much more important than
just money that someone can afford to lose.
Lessons from Rob Booker
Fit Trading to Your PersonalityIn this interview, Rob Booker has shared with us some of his fa-
vorite trading techniques. However, we feel that the key lesson to
learn from this interview is that knowing yourself is more impor-
tant than any particular trading strategy that you may choose. You
need to make sure that your style of trading is in sync with your
personality. If you are a short-term trader, you should focus on
short-term profits. If you are long-term trader, you should focus
on longer term or bigger profits. Furthermore, you should never
trade a strategy with a significant amount of capital without back
testing and forward testing it first.