Tom Basso is another Market Wizard from a renowned Jack Schwager book series, which appears on my show. It is an unusual occasion to ask him how is he going after 26 years since the famous interview. How does he see the markets after such an extensive trading experience?
Although he didn’t know too much about the British pound fundamentals or economy, he made a bunch of money at the same time when George Soros was shorting it. How he did it? Was it pure luck?
No. My guest believes that big trends happen in the markets. And when it happens, he just needs to squeeze it like a lemon. No complex entry/exit signals. No fancy charting. He puts, however, a great focus on risk management. At the same time, he is very patient and strategic. He doesn’t have to be profitable every day, every week or even month. But all he does is carefully planned. And in the long run, his trading approach is very profitable. For decades.
After all, he was featured in Jack Schwager’s Market Wizards book in 1992. For a good reason.
In 2003 he happily retired at the age of 51 years. And today he’s still actively trading on his private account using the same, old methodology — trend following.
If you haven’t yet guessed, yes, Tom Basso is on my show today! Enjoy the ride!