Trade Less Live More with Troy Noonan

Troy Noonan started trading after he got a brochure in the mail entitled “Head and Shoulders.” He gave the head and shoulders trading pattern a shot and shorted the British Pound against the Dollar. As luck would have it, he caught the same trade that became known as the “Trade that broke the Bank of England.” He took some of the profit and started backpacking in Europe, officially hooked on trading and the freedom it allowed him. But he knew he needed more structure. What did he learn that he now teaches other traders? In this episode of How To Trade It, Troy shares how he learned how to trade less and live life more. Don’t miss it!

How does the @Backpacktrader1 trade less and live more? Find out in this episode of How To Trade It! #stocks #trading #StockMarket #Investing #DayTrading #StockPicks Click To Tweet


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You’ll want to hear this episode if you are interested in...

  • [0:46] Why is Troy THE Backpack Trader?
  • [1:45] Troy’s background in trading
  • [3:14] How Troy got started with Netpicks
  • [6:24] Troy’s key trading strategies
  • [12:00] The biggest questions Troy gets from beginners
  • [16:37] The dangers traders should watch out for
  • [22:20] The 12 Powers to Successful Trading

Troy’s key trading strategies

One of Troy’s favorite strategies is the “counterpunch trader.” The gist is that he waits for the markets to get tired and then comes out swinging. He uses this to trade crude oil. He also likes to swing-trade Forex. All of Troy’s strategies are price-action based. He tries to stack a few pieces that look for repeating patterns. You can predict the next thing that will happen. If the sellers get tired and you’re looking to buy, you wait for the price action to confirm the trade. It’s a very versatile trading strategy.

The crude oil inventory report comes out once a week on Wednesdays at 10:30 Eastern. He waits two minutes and looks for the next setup, then they go. If his trading room hits their objective in the first trade, they’re done—which happens quite often. The strategy wins around 75% of the sessions. Troy emphasizes that you don’t have to trade more to win money. You can trade something that wins a lot and trade less. All of his plans have that element built-in.

The daily goal is a dynamic target. If his strategy has a trade setup you’ll see the entry, the target, the stop—the whole trading plan. You place the trade, follow your rules, and take some profit when it hits the first target. If you hit the second target, you hit your goal for the day and you’re done.

The biggest questions Troy gets from beginners

Beginners always ask Troy what they should trade. He asks them a series of questions to help them determine that answer for themselves. By doing that, they can eliminate what they shouldn’t trade and choose from the list remaining. A couple of the questions include:

  • How much capital do you have to trade with? The amount of capital you have removes some options.
  • When are you available to trade? You can’t really day-trade while at your full-time job.

If you trade too much, you’ll give all of your profits back to the market. Troy believes that you should prove your strategy and your trade plan will make you money before you start trading live. You build a foundation and practice so that executing your trades becomes reflex—like riding a bike. It gives you the best chances to succeed. If you only risk 2% on any proven trade, then that 2% grows as your account grows.

He wants his students to experience the good, the bad, and the ugly with a specific plan. Eventually, you learn that the trade is just a transaction and that there will be some losers no matter what. The winners pour in and you make money over time. If losses come, you know it’s the natural part of the distribution of wins and losses.

What is the biggest question Troy gets from beginners? He shares the question—and his answer—in this episode of How To Trade It! #stocks #trading #StockMarket #Investing #DayTrading #StockPicks Click To Tweet

The dangers traders should watch out for

The #1 danger that dwarfs everything Troy has dealt with is that traders don’t do the pre-production work for themselves. They blindly believe that Troy has done the work and can just ride his coattails. But as soon as they get a few losses, they don't know how to handle it, and they quit. You have to prove it to yourself first and believe what you’re doing. The problem is that no one has patience, everyone wants to get rich now.

Traders wait until the markets look like they’re trading well and then they jump in. But they start trading at the wrong point. They always find themselves out of sync with the curve. Some people who have been reading for years struggle to unlearn bad habits. You have to let go of your ego. You don’t have to be smarter than the market. You can’t be psychologically invested in the outcome of a trade.

Troy was in Paris 12 years ago at a trading convention. He was demonstrating his strategy live. His first trade lost. The second trade lost. Then the mother of all trades happened. Crude oil went on a $5 run and made $5,000 per contract. What if the first trade was a 15 cent winner and they made $150? Thank God they had two losers first. Those losers kept them in to grab the big winner.

Trade plans work in mysterious ways. It doesn’t matter if the trade wins or loses. You simply want to quit positive the majority of the time while minimizing your drawdowns. You do that by trading less.

The 12 Powers to Successful Trading

Troy’s eBook—12 Powers to Successful Trading—are the 12 essential keys to success. Troy sincerely believes it can help any trader. The most important of the 12 powers is the power of why. Why are you trading? Are you doing the things that reflect that? If you’re trading to make money, you make money if you’re growing your account. How do you win more than you lose? Embrace a proven trading plan before you risk your money.

You prove it by your actions and what you do. You are the best indicator. The things you do when you’re trading indicate what you need to work on. You can control yourself. If you can be honest and watch yourself objectively, you know what you need to work on. It’s challenging—but necessary. Listen to the whole episode for more of Troy’s trading wisdom.

What are the 12 Powers to Successful Trading? The @Backpacktrader1 shares more in this episode of How To Trade It! #stocks #trading #StockMarket #Investing #DayTrading #StockPicks Click To Tweet

Resources & People Mentioned

Connect with Troy Noonan

Connect With Casey Stubbs

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Disclaimer: Trading carries a high level of risk, and may not be suitable for all investors. Before deciding to invest you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment. Therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

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