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May 24

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Book Review : Adventures of a Currency Trader by Rob Booker

Now unlike the very deep and meaningful books by Mark Douglas that do sometimes seem an age page by page, I swept thru Rob’s 240 pages in no time and had me laughing to boot. Not often you get a book about trading that can make you laugh !

Rob gives his insight into currency trading successfully by telling it thru a fictional character called Harry Banes. Poor old Harry starts of his trading career by buying a $3000 trading robot of a TV ad and the wheels really come off when he finds he doesn’t have the discipline to even follow the robot. He loses his job, nearly his wife before he finds a mentor that helps him turn things around.

Rob’s book doesn’t recommend anything fancy with regards to strategy. His character Harry, ends up developing a simple support and resistance strategy on daily and 4 hourly charts with the help of a stochastic indicator

Rob’s advocates :

  • Thou Shalt Never Lose More Than 25 Percent of Thine Account.
  • Thou Shalt Test Before Trading
  • Thou Shalt Stand Accountable to Another Person for Thy Trades.

He says that once you lose 25% of your account you are then 75% likely to lose the rest of it. He says of the myth that losing money in the market  is the cost of education is crap. I like that !! I quote from his book ……….

Another myth that still pervades the universe of new traders is that
their initial losses can be considered “tuition” in the school of hard knocks.
Well, that’s crap. Imagine if your best friend knocks on your door one
evening and announces:

YOUR BEST FRIEND: I crashed your car tonight. I totally wrecked it. But I
want you to know, I learned a really good lesson.

YOU: What! What did you do? What lesson did you learn?

YOUR FORMER BEST FRIEND: I learned that I should not smoke a pound of
marijuana and drink a case of beer and then drive on the wrong side of
the freeway. The good news is that I have learned this lesson now, and I
am not going to do it again. Never again.

YOU: [speechless!]

YOUR FORMER BEST FRIEND WHOM YOU ARE ABOUT TO KILL: Oh, by the
way, your iPod was in the car. I think you’re going to have to get a new
one.

You have to love that…..I never felt easy with the traders that told me you have to lose your whole account before you really understand how to trade…..Rob’s statement makes total sense to me.

Although Harry’s right of passage from imbecile to wonder trader seemed to take him just a matter weeks, which we know is pure fiction, the short timescale helps move the story along.

The main thing I have taken from the book is the importance of testing, testing and testing some more. The results of 500+ trades from your chosen strategy will give you the confidence to trade it – no matter what distractions are around you. Thus, for this week and probably next I am going into “backtesting mode” and will record price and time data on my strategy going back as long as I can without losing my eyesight.

Highly recommend this read !

Adventures of a Currency Trader : Rob Booker

Good reading

Jimmy

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Permanent link to this article: http://intradayforextrading.co.uk/2010/05/24/book-review-adventures-of-a-currency-trader-by-rob-booker/

3 comments

  1. Black

    Thanks for the review Jimmy, Rob’s one of my favourite trader in the book “Millionaire Traders by Kathy Lien & Boris”. This book is among those in my list to be purchased..

    Looking forward to more reviews :) All the best to your tradings!

  2. FFXD

    I agree too. This review is great. Thanks for sharing with us.

  3. fxtradersandy

    LOL sounds like a country western tune, lost his job lost his house lost his wife!

    Will def buy the book now.

    Keep up the good work Jimmy

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