The Best Trading Year Ever

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1 THE BOOKER REPORT From Rob Booker January 2016 Start a subscription in 60 seconds here. In this issue: 1.The Best Trading Year Ever 2.The 5 Trades I Love Right Now 3.How to Get Anything You Want 4.Conquering Bad Habits 5.Affirmations 6.How I Trade The Best Trading Year Ever None of this will sound right. It goes against everything you ve ever heard about trading. Step One: Lower your damn trade size. Step Two: Give your trades a long time to work out. Take a trade with a small trade size. If it goes against you, laugh at it. If it goes against you more, laugh harder. This is your new motto: I can remain irrational longer than the market can remain solvent. (This is an adulteration of a famous saying by Keynes).

2 If the trade reaches a max loss level, say, 1% of your total account value, you close the trade. But, if the trade goes back into profit before reaching that max loss level, take a modest gain and get out. (the reality is that if a trade has gone a long long way against you, it rarely will come back into profit and become a huge winner). If the trade goes in your favor from the very start, here is what you do: Add to the trade. BUT: How do you add to a trade? Here are some ideas. They have have worked very, very well for me: 1)Set a clear goal for how much you want to make on the trade if it starts going in your favor from the very beginning. 2)Plan the trade AND manage the trade from the same time frame chart. If you planned the trade from the 1hr chart, then manage the damn trade from the 1hr chart and stop looking at other time frames. 3)Every time you see a pullback on the 1hr time frame chart (or whatever time frame you are using), and the trade is still profitable, add a little bit to the trade using half the trade size of the initial position. THE BOOKER REPORT JANUARY

3 4)Do not add to a losing trade. If any part of your existing trade is losing, do not add to the position. You can only add to the existing trade if EVERY new position you have added is profitable. 5)Keep adding to the trade in the same manner until you reach your goal. How does this all fit together? Let s run this down again: You re going to take one very small position to start every trade. You will NOT add to a losing position once that trade is open, and if it goes against you from the start, you simply SIT ON YOUR HANDS. Just let it fly away. If it hits a max loss, say 1% of your account, you simply close the trade and say goodbye to that dumb trade. But if the trade goes into profit soon after you take it, then start adding to the trade on pullbacks, as long as the entire position is profitable. Why does this work? It works because you will never take a huge loss. This is the reason traders fail. In fact, it s the only reason traders fail. Anyone who tells you that traders fail because they don t have the right system is a liar. Traders fail because they lose all their money. THE BOOKER REPORT JANUARY

4 (*This should be ridiculously obvious). So the idea is to never lose all your money. Period. This method works because you start getting big wins. Traders succeed when they accumulate profits. It is an objective fact that success in trading is when your account is growing. Even by a small amount. So: Success in trading is when your account is growing. Failure in trading is when you lose all your money. In 2015 I watched over 100 traders (it s even more than that) reduce their trade sizes and have their FIRST PROFITABLE YEAR IN THEIR ENTIRE TRADING CAREERS can be the best trading year ever if you: Never let a loser become a total loss. Make the most of your winning trades. Now get out there and have the best trading year ever and to start things off, why don t we consider a few wonderful trades coming up soon? 5 Trades I Love Right Now WARNING: These are trade IDEAS. They are LONG TERM. I will hold these trades for 6 months or 12 months or THE BOOKER REPORT JANUARY

5 even 24 months. They might go HUNDREDS of points against me and I do not care. My trade size is VERY small (see the previous story, The Best Trading Year Ever, for more information about it, or How I Trade. THE STOP LOSS ON THESE TRADES, FOR ME, IS 2% OF EQUITY. So, on a $10,000 account, if the trade loses $200, I exit. I keep my trade size small so this is unlikely to be hit, even if the trade moves hundreds of points against me. Ok, here are the trades: Trade #1: Junk Bonds ( SJB )< click there A day of reckoning approaches for junk bonds. I m long SJB, which is an ETF that goes up when junk bonds go down. I think this ETF could go to 32, 35, or even 40+ if you give it enough time. I like buy trades at $29, $28, $27, if it gets back to those numbers. If it goes up instead I ll write to you with some other ideas. Target $35 or better. Trade #2: Consumer ( XLY )< click there If the stock market begins to fall, XLY will drop. It s an ETF that goes up when consumer discretionary stocks go up. This ETF has already climbed into the stratosphere and has THREE missed YEARLY pivots in a row (this is rare, see the chart ). I like a sell trade at any price above $78. Keep in mind this is a long term trade and I might need to hold it for six months THE BOOKER REPORT JANUARY

6 or even longer. I am prepared to hold this trade for 24 or 36 months if necessary. Trade #3: Short EUR/USD (Chart) The Fed raised the interest rate. The European Central Bank is still doing Quantitative Easing. This means they are pushing Euros into the economy and keeping interest rates low. I will sell below and hold for I am willing to wait for this trade. If the EUR/USD climbs above , I ll buy it and target or higher. (This will happen if the U.S. Dollar starts to slide). Trade #4: Sell USD/CAD ( Chart ) I am going to take this trade on Monday, January 4, wherever the USD/CAD opens for trading. I am willing to hold this trade for three years if necessary. I will hold this trade for 10 years if I have to. I hope I can get in at It will be a small trade. I will hold it until a profit target of It will be a SMALL TRADE and I can HOLD IT EVEN IF IT GOES AGAINST ME WITHOUT LOSING VERY MUCH MONEY. If you are wondering where my stop loss is, it s at a loss of 1%. It would need to go above for this loss to get hit. Trade #5: Buy Trovagene ( TROV ) This stock has dropped over 40% in the last six months. But it s still up for the year. This company THE BOOKER REPORT JANUARY

7 develops urine based disease detection tests. I own 250 shares of this stock at an average price of $7.27. My target is $10. I will buy more on Monday (maybe 100 shares more). I will not exit before $10 and I may not even exit this trade at that price. I like what this company does. I like the overall trend (up 28% for 2015 even with the recent losses). Remember, past performance is not necessarily indicative of future results. I am not promising you wealth and riches. But I can share with you some ideas about how to get anything you want. How to Get Anything You Want There are a lot of ways to get anything you want. I ve created a list to help you. I ve used a lot of these methods on the list. They all work. Some of them are easier than others. But they all work. ALL OF THESE IDEAS HAVE ONE THING IN COMMON: You must decide what it is you want before you start. The problem with most people is they don t decide what they want. They have no idea what they want. Don t be one of those people! THE BOOKER REPORT JANUARY

8 1.Use affirmations. Write down what you want, as if you have it, 10 times in a row. Do it 3 times a day. (read more in the Affirmations section below). 2.Make a small BET, or move, or action, in the direction of what you want. Add another small step. And another. Eventually you will compound your actions into what you want. This WORKS. It works if you want to write a book (write 500 words a day). It works if you want to find a spouse (meet someone new each week, or someone new each day). It works if you want to grow your trading account (make.5% per week, and let the gains compound). And so on. 3.Focus on doing a simple, repeatable routine. And then the amazing results take care of themselves. 4.Clearly visualize what life will be like when you have what you want. Then make a plan. Then let nothing get in your way of getting it. 5.Stop being afraid. Of anything. Stop fearing what other people think. Stop fearing the unknown. Stop fearing failure. Wonderful things start to happen when you shun fear. (This just means you do things that frighten you and you just laugh about it). 6.Be 100% authentic. Be yourself. To everyone. Say what you want. Defend your beliefs. Stand up for yourself. Tell the truth. Amazing things start happening to you. THE BOOKER REPORT JANUARY

9 Let me tell you a story about this. This summer I went to Greece. I decided that I was going to stop being afraid to approach people and talk to them. Ok. Let me back up and be honest. I decided that I would stop being afraid to talk to beautiful women. LOL. I created an affirmation about this. I wrote it down 10 times on a napkin while on the plane from Madrid to Athens. A day later, I was at the pool (in Athens). The pool was right next to the sea. I kept jumping from a 15 foot platform into the sea. Each time, the lifeguard yelled, Please don t, that s dangerous! I ignored him. Out of the corner of my eye I noticed a very beautiful woman. She was sunning herself near the place I was jumping into the sea. She walked up to me. She said, He keeps telling you to stop. She pointed at the lifeguard. THE BOOKER REPORT JANUARY

10 And then I looked her in the eye and I smiled at her. I said: Do you want to do something dangerous? She smiled back. I held out my hand. She took it. Then I picked her up right off the ground and ran off the ledge. I can still remember hitting the cold water below and thinking, Ohhhhhhhh. This is what life is like when I stop being afraid. I was very happy that day. Some Random Advice About Happiness Go out and do something you re afraid of. Confidently be your best self. Forgive yourself for the stupid things you ve done, and do your best to make it right. Stand up for what you believe in. Don t change your beliefs to try to impress someone else. Use soap, mouthwash, breath mints, and manners. Wear clean clothes. Smile at people. Say thank you. Conquering Bad Habits The truth is that most people do not change. THE BOOKER REPORT JANUARY

11 Most people simply keep moving in the same direction, at the same rate of speed, for their entire lives. You can look at almost anyone and see where they will end up in 10 years. Just ask, What are they doing now, and How well are they doing it? Most people change bad habits only if: 1)Something terrible happens to them as a consequence of that bad habit, and they decide they ve had enough; 2)They decide they ve had enough (even without the terrible thing) because they want to AVOID the bad consequence. In other words, only when we become exhausted with ourselves (or our behavior) do we change. The trick is to ask the following questions: 1)If I continue on this road, with this behavior, for the next 10 years, where will I end up? 2)What is the TRIGGER that prompts me to engage in this bad habit? (Is it hearing the sound of a certain person s voice, seeing an economic report come out, watching a price bar jump upward on a chart, etc). 3)What BEHAVIOR I usually do after that TRIGGER? (yelling, eating too much, shopping too much, gambling, taking a huge trade size, etc)? THE BOOKER REPORT JANUARY

12 4)What NEW BEHAVIOR can I use to replace the OLD BEHAVIOR? 5)What REWARD do I usually receive for doing the behavior? How can I REWARD myself for the new, better behavior? The idea here is not to use willpower. It is to actually replace a behavior. Take a bad habit, and just replace it with a new habit but make sure you stop and do the NEW BEHAVIOR / HABIT every time the trigger goes off. Here is a story to help. My father wanted to quit smoking. It was He had tried at least 20 times before. And he always failed to quit. One day, he met a woman. He fell in love. But there was a catch: He told her he was a non smoker. YIKES! He imagined losing her if he did not quit smoking. This frightened him. (He wanted to avoid the bad consequence). So: THE BOOKER REPORT JANUARY

13 1)Every time he finished eating, instead of having a cigarette, he would have dessert. DESSERT BECAME HIS NEW BEHAVIOR. 2)Every time he took a break at work, he chewed gum, instead of smoking. 3)Every time he had a trigger for smoking, instead of smoking, he did a new behavior. And he used sweets gum, candy, desserts. They were a perfect reward. He never smoked again. That woman Judy became my step mom. And then she became my real mom when she adopted me in 2010 (seriously, she really did, and I love the hell out of her). Was it hard for my dad? No, because he DESPERATELY WANTED to avoid the consequence. See, you gotta want it. You have to know what you want. And he got himself a new behavior but the triggers and the rewards remained in place. It worked. He also told himself I m a non smoker. About a hundred bazillion times, he repeated this over and over in his head. That s called an Affirmation. THE BOOKER REPORT JANUARY

14 Affirmations I need you to hear me when I say this: AFFIRMATIONS WORK. This is an affirmation: I make $100,000 per month. AND: I am smoke free. Affirmations are positive statements about something you want, written down (or spoken) as if they are already true. They are ASPIRATIONAL (meaning, they relate to something you want). They are POSITIVE (meaning, they work better when you say what you DO WANT, rather than what you DO NOT WANT). I have three affirmations all the time. I write them down each morning, 10 times each. Sometimes I do it again in the afternoon. I write them down over and over. And over. And over. THE BOOKER REPORT JANUARY

15 It primes my mind. It helps me see opportunities. It trains my brain to focus on what I want. It helps me clearly visualize what is most important in my life. And I get what I want. We all get whatever it is that we want most. We always. Get. What. We WANT. Affirmations are the way we train ourselves to want something. It s the way we remind ourselves to stay on track. And somehow I don t know how this happens things just start to move around us helping us get what we want. I don t know why. But it works. So, PLEASE: 1)Get THREE affirmations ready for the first six months of One might relate to your finances, one to your relationships, and one to health. (I give examples of this in the first video lesson on the home page for The Booker Report). 2)Write those three affirmations down, 10 times, once a day. Use a notebook or a computer notepad or anything you want. It doesn t matter. I used to write them down on scraps of paper and I left them all over the house. People would come over and think I was crazy. THE BOOKER REPORT JANUARY

16 3)Get ONE additional affirmation that you keep for just 30 days. Make this one something fun. I read or learn something important from one book a day. Or go nuts and think of something crazy, like, I met and had a positive effect on a famous person one time this month. You get the idea. I write affirmations not because they are cool. In fact, they are geeky and kind of weird. I don t tell most people that I do this, because they look at me strange. But I don t care. I don t care if anyone else approves of affirmations. I learned 15 years ago that when I stopped caring what people thought of me, I started to do some amazing things. And the thing I love to do most of all (besides write you daily s and this newsletter) is take great trades. And here s how I do it. How I Trade I ve been trading forex since Last year I had my most consistent year ever. This is how I did it. (This is for forex; we ll talk about stocks next month). THE BOOKER REPORT JANUARY

17 1)I wait until Thursday morning. I USUALLY only trade on Thursday morning. 2)I pick 5 currency pairs that have been moving a lot during the week in ONE direction on the 60 minute chart. 3)I draw trendlines on those 60 minute charts. 4)If the trendlines are broken AGAINST the trend, I take a trade AGAINST that weekly trend. 5)The first trade is small. 6)If the trade goes against me, I let it run against me and don t worry about it. 7)If it goes in my favor, I add to the trade on pullbacks (see above). That s it. That was (easily) the most successful, stress free method I used to trade in my entire 15 year career. Now, you might have 10 thousand questions. You might want to know how I EXACTLY take these trades. Well, we ve already reached the end of this month s newsletter, and this is NOT a trading class, it s a trade alert service with a kick in the pants to achieve your goals. SO if you want more info on how I set up these End of Week Trades, you can watch the little video in the THE BOOKER REPORT JANUARY

18 member s section called End of Week Trading. If it s not there, just give me a few days to post it. And Have the best day ever Rob Start Your Subscription Today: THE BOOKER REPORT JANUARY

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