The Naked Trader by Robbie Burns – Book Review
The Naked Trader (AKA Robbie Burns) is a journalist and writer who has become quite popular in the last few years due to his website, book and seminars. Robbie follows a similar kind of trading style to us – he picks stocks that have good fundamentals and offer Growth At a Reasonable Price (GARP) and holds them until they reach a target price level, or cuts them if they fall to his pre-defined stop loss. He’s a little more flexible on valuations than we are (he’ll take a higher price to earnings ratio then we generally would) but he’s been incredibly successful for many years. Typically he picks stocks with market caps between £50m-900m, with net debt less than 3 times operating profit, a tight price spread and ideally a P/E less than 20. Some of his greatest winners have been companies we like such as Greencore, GVC and Entertainment One. Whilst fundamentals are the core of his strategy and he claims to not buy into technical charting of shares, he does seem to follow some other rules like range trading when setting his buy and sell limits. Overall its a very effective approach that seems to have made him a very wealthy man.
The Naked Trader book is written in very clear English, easy to understand for beginners and experienced investors and covers everything from trading strategies to short selling, spreadbetting and trading psychology. As Robbie says himself, the name Naked Trader is slightly misleading as he’s not a day trader in the slightest, he holds mid to long term, but I guess Naked Investor is a less catchy name.
Anyhow, we highly recommend The Naked Trader. It’s very valuable for people new to the stock market, but good for established investors too. Click below to visit the product page on Amazon for more information:
We also advise you to check out Robbie’s website at www.nakedtrader.co.uk