How to become a trader and investor: the story of Rose Rapson
Stock traders are often parodied like Wall Street whirling dervishes, going from monitor to monitor, spitting curses, buying and selling multiple times a day. Rose Rapson challenges this stereotype. She lives in a small town in northeastern Australia, about two days’ drive from Sydney. His way to stock trading started in 2016 when friends suggested that she join them for a 101 stock exchange and investment class in the nearby neighborhood. Townsville Investor share exchange class.
The course focused on an approach by William J. O’Neil, founder of Investor’s Business Daily and author of How to Make Money in Stocks: A Winning System in Good Times and Bad Times. Rose used O’Neil’s ideas to uncover growth stocks on the ASX, manage the portfolio and exit successfully.
We spoke with Rose, who trades on an IG platform, about her journey from a value investor to a more active trader. The highlights follow:
What kind of trader are you?
I hope to uncover growth stocks early in their movement, hold them for 6-18 months, and sell them after their initial growth. I sell them real fast if they hit my initial stop. But I see myself as a long term investor rather than a short term trader.
Can you describe your trading setup?
I use a standing desk and spend 70% of my time studying and researching, less than 5% of my time looking at the market, and maybe less than 5% of my time clicking the button to buy or sell.
Do you benefit from a mentor or a trading club?
Absolutely, the Townsville Investor Share Trading class tutors helped me immerse myself in the method. The people in the class also helped me at the beginning, some of us formed a study group and we used to have a discussion in the local library until last year. Now we have Zoom meetings once a week.
Are there any other stock trading resources that help you learn or gain valuable knowledge?
Yes, the concept of the Enneagram Personality Test and Trading Tribe book has helped me learn and understand my own personality and trade ppsychology so that I can choose the trading rules that suit me the best. The trade in the zone and the disciplined trader, both from Mark Douglas, are both excellent!
Does the news influence your business decisions?
No, I’m stepping away from the news. I buy on fundamentals and charts, and I only sell on charts. I switched completely to cash in early March 2020, not because of the news, but because of what the charts suggested. Gradually, I returned to the market from a month later, in April.
One final thought on stock trading or investing?
I believe that investing in the market is a great gift of capitalism for any man or woman. It’s not supposed to be easy, it’s not a 9 to 5 job. It’s an elite sport, and like any skill, practice is vital. 10,000 hours of in-depth study and focused practice are required, along with a willingness to make mistakes and learn from them. I recorded my first 9,980 hours and thought I would become the master of the game when I hit the 10,000 completed hours. As I recorded the 9,980 hours, I realized that those hours had just kicked me out, and how much I didn’t know.