Expecting one trading system to be profitable in all market conditions is unrealistic. This lesson occurred to me as I observed the environment changing as I climbed Mount Kilimanjaro. If you are serious about making money trading stocks then enter your details below to download the 10 Commandments for Profitable Stock Trading.

Show Full Transcript

Hey, it’s Adrian here. This is halfway through day two of my climb up Mount Kilimanjaro and I’m sitting right around 3,300 meters, or 11,000 feet, on the approach to the summit. You can see I am well above the cloud line and back behind me you can see all of Africa is covered in a bed of white fluffy clouds.

It’s just amazing!

Something I noticed on the way up today which was really quite cool was that we came through quite a number of different environmental zones. As we went up the mountain, we passed through rain forests and then some trees and the trees gradually disappeared into scrub.

A thought occurred to me, because basically as you go up the mountain, as you rise in altitude, different types of plants and animals can survive. The stock trading analogy that occurred to me was that markets change over time and different types of systems and different types of traders will survive.

If you tried to climb the whole mountain of the market with a single system you will eventually suffer losses

The analogy being if you were a tree, you’re trying to grow anywhere on the mountain, it’s just not going to work, because you’re only suited to certain environmental conditions. It’s really important to recognize the conditions that you’re in to make sure you can perform at your best and your systems really work under those conditions.

Climbing a mountain is pretty amazing. You can see all sorts of different environments as you climb up. Just as you see different environments in the market. We need systems and trading approaches for all of those different environments if we’re to perform at our best.

At the very least, what we need to be able to do is identify the environmental conditions that we’re in. The market conditions that we’re in at that moment and trade appropriately according to that. That way you can survive and profit in those market conditions and stand aside when the market conditions are inappropriate for your system or your approach. And standing aside, absolutely nothing wrong with that!

You can develop one stock trading system and trade it when the market is appropriate for that system. If you develop two, three, four different types of systems for different types of environment, you can survive the whole mountain and profit in all conditions – That’s the ultimate goal if you want to be consistent and profitable through all market conditions.

Just like climbing the mountain, you’re going to go through all the different conditions and you want to be prepared for everything all the way up.

That’s all for now. See you in the next video.

PS. If you are serious about creating your own profitable trading system my Enlightened Stock Trader Development Program is exactly what you need. Schedule a free session with me and I will give you the first few steps to get you started!