This week, we had the pleasure of interviewing Bob Knight, better known on Twitter and Profit.ly as Turbo Bob. Having been a successful trader for the past 20-30 years, Bob has a lot of experience in the markets. With this experience, he decided that he wanted to begin to teach other traders leading him to become a part of Turbo Trading. Since the room launched, he has helped guide a number of other traders within his community, alongside his moderators, to help work on getting traders over the PDT.
How Did Bob Get Started?
Bob got started in the market back in the 1980’s, initially as a stock broker in Canada in his very early 20’s. At the time, he was living at a ski resort and decided to that it was time to make something of himself. After borrowing a suit from his dad, he decided to interview at a local brokerage firm, and as luck would have it, he got the job. From there on, he never looked back and had a life revolving around trading.
During the course of his time at firms, he started off doing what many would consider “pump and dumps” today. However, back at that time, these types of plays were very popular and widely accepted as the way people traded. With that being said, there came a time in which Bob was ready to start trading on his own. He came to this realization during the financial crash of 2008 while on a phone call with his brother. Financial analysts were telling the world to sell their stocks, but Bob knew that it was likely the bottom and the best time to start buying. After he was right, he realized that there was money to be made simply trading the markets himself.
After coming across some big names in the day-trading world through online promotions and whatnot, Bob decided he might want to try this out. With that said, he was never a “day-trader” as many would call it, rather, he had more of a swing-style from the beginning. Nonetheless, it was at this time that Bob decided to trade in this style and for himself.
Bob’s Trading Philosophy:
There is a lot that Bob attributes to his success as a trader. Including, the knowledge he has gained about the markets in the past working at his firms, or lessons that he has learned afterwards, but one of the main philosophies that he follows regards the way that he sells. When Bob enters a position, he makes it an effort to sell his shares in chunks – he is never looking to top-tick per se, because he realizes that this is near impossible to do consistently.
Instead, Bob mentions that he makes it an effort to sell some at the bottom, some at the top, and the rest are sold in between. Of course, this does not mean that he is looking to sell at the bottom because he wants to take a loss, rather, he will sell off shares of his position as it nears his price target, and after it hits his price target he may hold some. Inversely, if the price dips at some point he may look to get out of his position slightly as well, hence the idea of selling some at the bottom.
In essence, his idea is that one should never dump all of their shares at once – especially with the swing-type style that he trades. Rather, locking in gains on the way up is the best way to go about it because if the stock continues to go up, you still have some shares left to lock in the gains.
Bob’s Advice for New Traders Regarding Trading Style
In Bob’s trading room, Turbo Trading, he and his team work to teach their community something different than a lot of other’s teach; do not trade the volatile stocks as a new trader. He mentions this because he feels as though it is one of the easiest ways to lose money right off of the bat. His idea is that when one is trading in the first 10-15 minutes of the day, especially as a new trader, they are at high risk of getting dumped on. Instead, he recommends that if a new trader is going to be trading these lower float stocks to wait for a few minutes and attempt to let a trend develop. In the podcast, he mentions, “you can always get in on the first pullback.”
Again, though, Bob teaches a style that has suited him better in the past – trading stocks that are not as volatile. His style of trading revolves more around being in a position for the course of a few days, weeks, or sometimes even months. It’s all about riding the trend, and he mentions that this is not as easy to do with volatile stocks. While his swing-style may take a little bit longer, Bob mentions there is less risk involved especially for traders who are just beginning.
Bob’s Thoughts on the PDT
It should not come as a surprise that Bob is not a fan of the PDT. However, seeing as Bob grew up and still resides in Canada, he has never personally had to deal with the PDT for his account. With that being said, he does not think that it is a great way to protect traders. In his words, the PDT is “a complete travesty for traders.” Bob believes that beginning as a trader is difficult enough and being stuck in a position because the trader cannot break the PDT is absolutely absurd.
In his opinion, beginner traders may be better off looking for an off-shore broker so that they are not forced to be subject to the PDT. Of course, this comes with risks in itself because of the possibility of overtrading and paying high commission prices, but in the same breath for those traders who are able to stay discipline, it serves as a great way to get around the PDT when starting off.
In this interview with Turbo Bob, we were able to talk about what types of strategies Bob thinks work for new traders. However, we were also able to talk about Bob’s life and what led him to become a full-time trader, and now a mentor for new traders as well. For those who are interested in learning the type of trading the Bob has used to become successful, check out our giveaway for one free month of access to Turbo Trading!