The Traders Round Table

BarroMetrics Views: The Traders Round Table

Often I am asked: “Why do you teach?”

Sometimes I sense that the motivation behind the question is genuine curiosity; sometimes I sense that the motivation is: “you can’t be making as much money as they say – if you were that good, you wouldn’t be teaching”.

Both enquirers assume that my motivation for teaching is money. If that were true, then I would not teach. But my main motivation for teaching is not money. I do so because:

  • I am good at it
  • It brings just enough recognition to satisfy my need for status
  • It enables me to strike long-term friendships
  • It allows me to give something back to the market – in return for all that it has given me
  • it may allow me to leave a legacy and most of all….
  • It keeps me young and provides me with mental stimulus.

This last benefit was recently driven home.

A question asked by a coached student provided the spark that led to synthesizing the three disciplines I use in my trading plan: Barros Swings, The Ray Wave and Market Profile (under the Profile, I include the ideas of Richard Wyckoff – to me the Profile is an extension of  Wyckoff’s works). This synthesis allows me to change the material for the Habits of Success seminars. In that seminar, the challenge was to come up with a plan that:

  • Did not require specialised software
  • Had a reasonably high win rate with a positive expectancy. The Win Rate is important because the target audiences for HOS are traders who are struggling. A Win Rate that is around 30% will not cut it with this audience because of the baggage they are carrying – this is true even if the 30% produces a positive expectancy.

The HOS plan fulfills both requirements, but in the process, it produces about only one round a month per instrument. Because of this many HOS resorted to other plans; unfortunately, this led to a slip in discipline for the trading plan and as the discipline in this area gave way, the discipline in the risk management and journal keeping process also fell away.

To combat this I joined Tom Saw to set up the Traders Round Table in Singapore. For my students, the TRT provides them with the opportunity to join a community that will allow them to maintain their discipline. But I knew TRT would not be enough.

Then came the synthesis. This is why I am very excited about the ‘trading plan’  for HOS. Now instead of there being a gap between the foundational elements and the advanced section, we’ll now have a seamless whole. For the student, this means a more active trading rate without sacrificing the win rate and expectancy return.

On September 9, TRT will have a soft launch. I’ll be giving a two-hour talk. Watch for the registration link on these pages – some time this week. And yes, it’s a free open house and free talk.

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