How Bob Baffert Taught Me To Be a Better Stock Trader
The best way to learn is by doing. You should never rely on other people to tell you how to become a better stock trader. Learn the skills, then put them into practice.
“There is no way to win if you don’t know the game’s rules.” That’s a quote I pulled out of the head of Bob Baffert, one of the most well-known American jockeys and trainers.
To become a successful stock trader, it’s essential to understand the importance of a balanced portfolio, the value of diversification, and how to manage risk.
Baffert’s Philosophy on Stock Selection
As the owner of the only Triple Crown winner in racing history, Bob Baffert has seen plenty of horses come and go. In his career, he’s won more races than any other trainer in the sport, and he’s earned a reputation as one of the best trainers around. His philosophy on horse selection is simple but powerful.
He says the “one thing” separates the good breeders from the bad ones. This can make or break a horse’s racing career. In fact, some believe that a big part of Baffert’s success is due to his stock selection—but is it true? We’ll take a closer look at the evidence.
Why He Does Not Use Technical Analysis
“Technical analysis helps us see past price movement and identify why prices move up and down. However, the technical analysis only works when we have a solid understanding of how market participants are feeling about the stock.”
Body: “Many investors and traders use technical analysis to try to predict future price movements and trade on the basis of technical signals alone. This can lead to trading mistakes and the failure of long-term investment plans.
So, to avoid this, it is essential that we understand the psychological forces behind market behavior. Market participants always have their own motivations and goals, and these have a huge impact on how they respond to market events.”
What He Uses To Determine Market Support & Resistance
When you’re first starting out, you can’t afford to rely on gut instinct when it comes to finding support and resistance levels in the market.
Here’s an example of the type of question you’ll need to answer when assessing your market.
How Baffert’s Process Helps His Stocks Perform
Baffert says a close friend of his initially developed his process. He would give him a bunch of stocks to buy and he’d take a look at the trades. He’d say, “How did you pick these?” and “Why did you do this?” and then he’d go out and look at them.
And so he kept doing it until he felt like he had a handle on why they worked the way they did. So then he started to give the process to others, and his friends and family were able to get out of trading in a way that they liked.
And they started asking questions and wanted to understand it, and that’s when he began to put the system together. And he says that people started asking questions like, “Why are you buying so many different things?” “Why are you only looking at one time period?” and “Why aren’t you including all the data?”
How Bob Baffert Uses Intraday Analysis
As an intraday trader, I have to get the most out of each session. That’s why I rely on my intraday analysis software.
The key to unlocking intraday trading opportunities is having the right tools to track your trades and analyze their performance. Fortunately, my favorite tool for intraday analysis is RAPT, which stands for Rapid Analysis of Profit Traits.
Bob Baffert is one of the most successful trainers of thoroughbred racehorses in America. But he doesn’t just train thoroughbreds.
He trains racehorses. He trains them like thoroughbreds. He does this by using the same tools that top thoroughbred trainers around the world use to analyze races. Here’s how he does it.
How to Learn from Baffert’s Style
You’re reading a book about horses, so naturally, you’re wondering what kind of horse trainer Scott J. Pletcher is. After all, he’s one of the most famous trainers in the sport. It’s no secret that Scott J. Pletcher knows a lot about training Thoroughbred racehorses. He’s a two-time champion trainer and has won the Eclipse Award three times as the nation’s top trainer. But the question on everyone’s mind is: “Who is Scott J. Pletcher?”