How to Trade : Jim Rogers

Below are a collection of words from his interviews. It is not difficult to understand his words. However, it is very very difficult to practice.

Go to the other side of the boat.

I've been around markets long enough to know that when everybody's on one side of the boat, it's probably not the right side to be on. When everybody is on the same side of the boat, you go to the other side of the boat for a while.

Because last summer everybody got extremely pessimistic and everybody was dumping the euro as fast as they could and in my experience when everybody's on one side of the boat you should go to the other side of the boat and so I stepped in and bought it and it went up.

I own the dollar, I own some other currencies as well. A year ago everybody was pessimistic about the dollar, including me. When everybody is on the same side of the boat, you go to the other side of the boat for a while.

Think against the crowd.

So I have learned, for whatever reason, to know that change is coming, to know to think against the crowd, that the crowd is nearly always wrong and to try to think for myself.

Because if everybody says the sky is blue, I at least urge you to go and look out the window and see if it’s blue because I have found that most people won’t even bother to look out the window.

I do know that I have learned over the years, always, when nearly everybody is thinking the same way that means somebody’s not thinking that means we got to start thinking about it and see if there’s not another way, another approach.

Now, I certainly make plenty of mistakes and have made plenty of mistakes in my life, but these are some of the things that I have learned, to try to think around the corner, try to think to the future if you want to be successful.

One of the things we are going to find is that every time there is turmoil, people will call on the central banks to save the planet to avoid the end of civilisation. Every time the markets get scared, the central banks panic and the net result is that the markets once again rally.

Invest in unpopular places.

I like to invest in unpopular places, unpopular stock markets. I have learned in my career, that if you invest in things which everybody dislikes, you're probably going to be very well off 2, 3, 5 years later.

■  All eggs in one basket.

The expression on Wall Street is, don't put all of your eggs in one basket. You should put all of your eggs in one basket, but be sure you've got the right basket and make sure you watch the basket very, very carefully.

If you don't get it right, you're going to lose everything. But if you get it right, you're going to get very rich. And by the way, don't think it's easy getting it right. It's not easy. It takes a lot of insight and work and everything else. But, if you get it right, you'll be very rich.