Last Updated on 23 July, 2024 by Abrahamtolle
Introduction
Tom Basso is a successful investor and entrepreneur who has been trading the markets for more than 30 years. He is the founder of Trendstat Capital Management and the author of The Logical Trader.
Basso was born in Chicago in 1953 and grew up in suburban Illinois. He attended the University of Illinois Urbana-Champaign and received a Bachelor of Science degree in Electrical Engineering in 1976.
In the mid-1980s, Basso began his foray into the financial markets by trading options on the Chicago Board of Options Exchange. He soon developed an interest in technical analysis and began to study the work of Charles Dow, Richard Wyckoff and William Gann. Using these principles, Basso developed his own trading system and began trading on his own account.
In 1988, Basso founded Trendstat Capital Management, a registered investment advisor firm specializing in futures and options trading. In addition to his trading activities, Basso has written several books, including The Logical Trader.
Basso’s trading approach is based on the principles of trend following, where traders look for price trends and attempt to ride them for profit. He emphasizes risk management and disciplined trading, and he has been quoted as saying, “The key to successful trading is not to make a lot of money, but to make sure you don’t lose a lot of money.”
Basso is an advocate of automated trading systems and has developed several of his own. His systems are designed to identify high probability trading opportunities, and he believes in using backtesting and simulations to optimize the performance of his systems.
Basso is an active investor and is involved in several ventures, including the launch of a hedge fund. He is also a regular speaker at industry events and has been quoted in major financial publications. His insights and opinions are highly sought after by those interested in the financial markets.
Tom Basso is an experienced investor and trader who has established himself as a successful entrepreneur and author. His approach to the markets is based on risk management and disciplined trading, and his automated trading systems have been widely adopted by traders around the world.
Who is Tom Basso
Tom Basso is a renowned trader, investor, and financial advisor. He is the founder of Trendstat Capital Management and the author of “The Evaluation and Optimization of Trading Strategies”. He has been featured on the cover of Futures Magazine and has been interviewed by many other financial publications.
What is his Background in Trading?
Tom Basso has been trading for more than three decades. He started his career as a commodities broker in 1981 and later became a partner at Turtle Trading Company. In 1989, he founded Trendstat Capital Management, a financial services and consulting firm.
What is Tom Basso Famous for?
Tom Basso is most famous for his trading strategies, which he developed over the course of his career. He is also well-known for his books, which have become popular resources for traders.
What are his Trading Strategies, Examples?
Tom Basso’s trading strategies focus on risk management, trend analysis, and sound money management.
One of his most famous strategies is the “Basso Reversal Strategy”. This strategy involves using a combination of technical indicators, such as moving averages and support and resistance levels, to identify potential reversals in the market. For example, if the price of a security breaks below a long-term moving average, a trader can use the Basso Reversal Strategy to determine if the price is likely to reverse.
Another strategy that Basso often uses is the “Basso Timing Strategy”. This strategy involves identifying trading opportunities based on the timing of market events. For example, if a news event is expected to cause a large move in the market, Basso may use the Basso Timing Strategy to determine when to enter and exit a trade.
What is His Net Worth?
Tom Basso’s net worth is estimated to be around $20 million.
Tom Bassos Trading Rules
Tom Basso has developed a set of trading rules that he follows religiously. These rules include:
1. Set realistic goals.
2. Develop a consistent trading plan.
3. Manage risk carefully.
4. Don’t overtrade.
5. Have a strategy for exiting trades.
6. Cut losses quickly.
7. Never let a single trade ruin your account.
Is He a Billionaire?
No, Tom Basso is not a billionaire.
What Type of Trading Does He Specialize In?
Tom Basso primarily specializes in futures and options trading. He has also developed strategies for trading stocks and forex.
Has He Written Any Books? Which One?
Yes, Tom Basso has written several books on trading. His most famous book is “The Evaluation and Optimization of Trading Strategies”. This book provides a comprehensive overview of trading strategies and how to evaluate and optimize them.
What is Tom Bassos Trading Philosophy
Tom Basso’s trading philosophy is to focus on risk management, discipline, and sound money management. He believes that by following these principles, traders can maximize their profits while minimizing their losses.
What is His Trading Advice to Beginners
Tom Basso’s advice to beginners is to start with a demo account and practice trading with simulated money before investing real money. He also recommends that beginners focus on developing a consistent trading plan and managing risk carefully.
What Are Some Famous Quotes?
Tom Basso has several famous quotes, including:
“The key to success in trading is to manage risk and maintain discipline.”
“Risk management is the cornerstone of successful trading.”
“It’s not about being right or wrong, it’s about making money.”
Is He Married?
Yes, Tom Basso is married to his wife, Linda.
How Old Is He?
Tom Basso is 66 years old.
How Does He Manage Risk
Tom Basso manages risk by using a combination of technical indicators and sound money management principles. He also employs strict stop-loss orders to limit his losses.
How Did He Get Rich?
Tom Basso got rich by employing sound trading strategies and risk management principles. He also invested in real estate and other investments.
Where Was Tom Basso Born
Tom Basso was born in Los Angeles, California.
Where Does He Live
Tom Basso currently lives in the San Francisco Bay Area.
His Blog and Website
Tom Basso runs a blog and website called “The Trading Edge” which provides trading advice and resources.
What is His Trading Approach?
Tom Basso has developed a trading approach which focuses on risk management, trend analysis, and sound money management. He also employs strict stop-loss orders to limit his losses.
Who is His Wife?
Tom Basso’s wife is Linda Basso.
Interview with Tom Basso
Tom Basso has been interviewed by several publications, including Futures Magazine, Business Insider, and CNBC.
How Did He Make His Money
Tom Basso made his money by investing in the stock market, futures, options, and real estate.
Tom Bassos Fund
Tom Basso is the founder of Trendstat Capital Management, a financial services and consulting firm.
How Much Money Did He Make from Investing
Tom Basso has made millions from his investments.
Summary
Tom Basso is a renowned trader, investor, and financial advisor. He is the founder of Trendstat Capital Management and the author of “The Evaluation and Optimization of Trading Strategies”. His net worth is estimated to be around $20 million. He specializes in futures and options trading and has developed several trading strategies, which focus on risk management, trend analysis, and sound money management. He has been featured on the cover of Futures Magazine and has been interviewed by many other financial publications. His trading advice to beginners is to start with a demo account and practice trading with simulated money before investing real money.
Famous quotes by Tom Basso
1. “The most important thing in investing is having a plan and sticking to it.”
2. “If you don’t have a plan, you will probably do the wrong thing when the markets move.”
3. “The key to successful investing isn’t timing the market, it’s time in the market.”
4. “Be aware of what is going on in the markets at all times.”
5. “Risk management is the most important part of investing.”
6. “You don’t want to be a victim of a market crash, so you must be disciplined in your investing and be prepared for the unexpected.”
7. “Don’t follow the herd. Do your own research and make your own decisions.”
8. “The key to successful investing is not to buy and hold, it’s to buy and monitor.”
9. “Successful investing is about having an edge, not about being a genius.”
10. “Don’t be afraid to take risks when investing, but always know your limits.”
11. “The most important factor in investing isn’t the market, it’s you.”
12. “The key to successful investing is to have a plan, stick to it and remain disciplined.”
13. “The markets are unpredictable, so you must be prepared to make adjustments to your plan.”
14. “You should never invest money you can’t afford to lose.”
15. “Always remember to diversify your portfolio.”
FAQ
Q1: What strategies do you use when trading?
A1: I primarily use trend following strategies when trading, which involve investing in securities that are rising in value and avoiding those that are declining. I also rely heavily on technical analysis to identify trading opportunities.
Q2: What advice would you give to a beginner trader?
A2: I advise beginner traders to focus on developing a sound strategy and understanding the markets before making any trades. It’s also important to keep emotions in check and to manage risk appropriately.
Q3: What is your approach to risk management?
A3: I believe risk management is essential to successful trading. I use a variety of risk management techniques including position sizing, stop losses, and trailing stops. I also make sure to have an exit plan for every trade I enter.
Q4: What is the importance of staying disciplined when trading?
A4: Discipline is essential when trading. Without it, it’s easy to make bad decisions and take on too much risk. Staying disciplined allows you to stick to your trading plan, manage risk, and stay focused.
Q5: What methods do you use to analyze the markets?
A5: I use a combination of technical and fundamental analysis to analyze the markets. Technical analysis involves studying historical price action, while fundamental analysis involves assessing macroeconomic data and company financials.
Q6: What type of trading platforms do you prefer?
A6: I prefer trading platforms that allow for easy order execution, provide a wide range of technical indicators, and offer access to various markets.
Q7: What advice would you give to someone looking to become a professional trader?
A7: Professional trading requires a high level of discipline, patience, and dedication. It’s also important to have a sound trading strategy and risk management plan in place.
Q8: What resources do you use to stay up to date on market news?
A8: I use a variety of resources to stay up to date on market news. These include financial news websites, market analysis tools, and economic calendars.
Q9: What indicators do you use to trade?
A9: I use a variety of indicators to identify trading opportunities. These include momentum indicators, trend indicators, volume indicators, and volatility indicators.
Q10: How do you decide when to enter and exit a trade?
A10: I use a combination of technical analysis and