Jim Rogers - Key Trading Tips for Success

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History

Jim Rogers started trading the markets in 1968 with just $600.00 and never looked back. In 1973, he met George Soros with whom he started the Quantum Fund which became one of the top performing funds of all time, Jimmy was the analyst for the fund while George Soros did the trades. This partnership saw the fund make gains approaching 4000% while the SP 500 could only manage 50% in the same period.

He is also responsible for creating “The Rogers International Commodities Index” and fund which has had the best performance record of any fund, regardless of asst class, over the last several years with returns approaching 170 %.

Between 1990 to 1992, he travelled through China, as well as around the world, on motorcycle, over 100,000 miles (160,000 km) across six continents and talks about his trip and investments in the book Investment Biker. Between January 1, 1999 and January 5, 2002, Rogers did another Guinness World Record journey through 116 countries, covering 245,000 kilometers with his wife and wrote Adventure Capitalist following this around-the-world trip which remains his best selling book.

Investment Philosophy

Patience

Rogers believes that one of the keys to success in investing is waiting for the best trades wherever they maybe and then trading them hard rather, than what most traders do which is trade more than they should. He made a great quote on patience which is repated below: 

"One of the best rules anybody can learn about investing is to do nothing, absolutely nothing, unless there is something to do. Most people – not that I’m better than most people – always have to be playing; they always have to be doing something. They make a big play and say, “Boy, am I smart, I just tripled my money.” Then they rush out and have to do something else with that money. They can’t just sit there and wait for something new to develop" 

Not only do people lack patience in waiting for the right trading signals to present themselves on their trading system, they also drop their guard when they have made money and think their invinsible - they enter low odds trades do to many of them and end up giving the their money back to the market or in some cases wiping themselves out altogether. Here is some sound trading advice for any new trader or anyone losing money: 

"I just wait until there is money lying in the corner, and all I have to do is go over there and pick it up. I do nothing in the meantime. Even people who lose money in the market say, “I just lost my money, now I have to do something to make it back.” No, you don’t. You should sit there until you find something"

Just wait for the trade set ups that are like just picking up money and wlaking away with it - patience is simple skill to learn but most traders fail to learn it and lose. Also keep in mind - trying to revenge trade against the market is fultile and doomed to failure so don't take losses personally!

The Market Doesn't Matter the Potential for Profit Does

Look anywhere for investment opportunities, don't restrict yourself yo just one asset class because if you will be missing opportunities for profit. Jimmy is a big fan of commodities which many traders for example ignore. In addition, Jim has travelled the world searching for the next big market to invest in and his travelling has given him an on the ground insight to many of the best trading opportunities.

We trade Forex but we don't just trade the major pairs like many traders and this is because there are very often opportunities elsewhere. If you are a technical trader and your method has an edge, you can trade any market with it. So look at cross rate currencies, commodities, precious metals, stock indices and bonds and broaden the number of contacts you follow to increase your potential for trading profits. 

Use Fundamentals First Charts as Backup

Jimmy Rogers however doesn't trade with technical analysis and charts and doesn't believe that they give clues to the future, he only looks at charts to see what has happened in the past, but does not use them to predict the future and in many ways this is sound advise because, the future cannot be predicted at all. He only invests in things that have strong fundamental reasons to be trending and looks for value in the market traded. While he is not a technical trader, he does use charts for value purposes but there are many different ways to make money in the markets:

You can trade fundamentals, technicals or a mixture of both, you just need to have a trading edge to win and strong money management to win..

Invest for the Long Term

Many investors focus on too short a time period and are in a hurry for their investments to perform. In Jim Rogers focuses on catching and riding trends which can last for many months or even years and his performance is one of consitent gains

Other Jimmy Rogers Quotes

“I haven't met a rich technician”

"Maybe the trend is your friend for a few minutes in Chicago, but for the most part it is rarely a way to get rich"

“My basic advise is don't lose money”

“Get inside information from the president and you will probably lose half your money. If you get it from the chairman of the board, you will lose all of your money.”

“Index investing outperforms active management year after year.”

Jimmy Rogers Books

1995: Investment Biker: Around the World with Jim Rogers.

2003: Adventure Capitalist: The Ultimate Road Trip.

2004: Hot Commodities: How Anyone Can Invest Profitably in the World's Best Market.

2007: A Bull in China: Investing Profitably in the World's Greatest Market.

2009: A Gift to My Children: A Father's Lessons For Life And Investing.