Say YES To Profit

Sometimes the weekly column writes itself

Rob Booker:
How’s trade copying going? Mine has finally stabilized
Boris Schlossberg:
So funny just writing a column about it today
After flatlining for about 2 months I am finally back on the up and up but of course it involves NOT taking all my rules based trades and often getting out early.
It’s really about whether you want to be right or want to make money everybody who backtests a rules based system makes a huge mistake in thinking that future is just like the past when a 5% variance which is NOTHING can mean dif between profit and loss so the other day as I closed out a trade early I realized that just making 1 penny is still million times better than being “right” on your strategy and taking a loss.

Now this applies to my type of trading which is negative risk/reward if you are trading traditionally at 3:1 r/r than its probably not true but it was an interesting insight
and from now on I NEVER regret taking early profit no matter how much I leave on the table
because the flip side is that I rarely wipe out

Rob Booker:
So crazy. I just recorded two radio shows about this exact same thing. Some guy wrote me this message:
Screenshot 2016-05-26 19.51.07
Boris Schlossberg:
Rob Booker:
Same thought. Trading is fucking hard. You want to make it harder? Lol
Boris Schlossberg:
Rob Booker:
People are always looking backwards
At what could have been or might have been or should have been. But every time I focus on ANYTHING besides the right now -- I get screwed
Boris Schlossberg:
I think the key thing here is that trading is like quantum physics where all the rules of the universe are reversed but people think it’s like investing which is much more akin to Newtonian physics
Rob Booker:
It’s not linear. So true.
Boris Schlossberg:
So good risk reward ratios, holding on for long term profits, and having low transaction costs are all completely opposite in trading
That why it’s so hard to teach this to people
It’s like saying that chain smoking, coke snorting and promiscuous sex all leads to a healthy lifestyle :)
Rob Booker:
Wait. It doesn’t?
Happiness is not linear either
Boris Schlossberg:
The future is NEVER just like the past
It’s just different enough to really f- you if you don’t recognize that fact
The only lasting rule is stay alive
Rob Booker:
Haha so true
It’s Jumanji
This is a jungle
Boris Schlossberg:
Robbie I am stealing this whole conversation for my Memorial Day column ok?
Rob Booker:
Lol yes
I’ll steal it too
Boris Schlossberg:
This is just too good :)
I never believe in anything but I actually really do believe in Carl Jung and synchronicity and today is just the most perfect example of that
Rob Booker:
Really is.

Boris Schlossberg

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