The decision about how to execute your stop loss orders is an important aspect of stock trading system development. As a stock trader you have three options for how to execute your stop loss orders…in market stops, close only stops or exit the next day if your stop is breached in trading today. While this choice may seem minor, it can have a dramatic impact on your system profitability, and how your cope with certain stock market scenarios.
Have you ever been frustrated by how long it takes to develop and test a stock trading system properly?
I have struggled with this a lot recently – doing a lot of backtesting and optimization, but not really getting anywhere. That was until I was reminded (at Brendon Burchard’s High Performance Academy in San Diego) about this one simple trick that tripled my trading system development productivity. This very subtle change in the way you approach trading system development will dramatically improve your productivity, quality of results and the profitability of the stock trading systems that you develop.
By eliminating your focus on the money, you will be able to improve your stock trading performance because you are free to focus on the trading activities that generate your profits…by performing these activities well you improve your trading results and make more money!
Sounds reasonable, BUT how can you stop focusing on the money? Isn’t that what stock trading is all about?
This video explains how you can adjust your focus to enable profits to come more easily in your stock trading account.
Have you ever looked at a new stock trading system (or have developed your own) and wondered HOW TO START trading the system?
Do you just start taking the signals the system generates? How big will the initial drawdown be? Is there a better way?
This video explains 2 approaches to starting a new trading system and how you can determine which is best in your situation…
Amibroker allows you to do a lot of analysis internally. However, when you are developing a trading system, sometimes you will need to export the portfolio equity curve for analysis in Excel after you run the backtest in Amibroker. This is not obvious in Amibroker so I created this video to show you how to easily do this export.
I was reflecting on a conversation from one of my recent Enlightened Stock Trading Certification Program coaching sessions and this message really came home to me. I really felt like it is just so important for you to understand, so I made this quick (super casual)...
Heaps of trading websites and system vendors promote their ‘high win rate trading systems’ or advisory services. The reality is the percentage of winning trades is one of the least important factors in your trading profitability. Expectancy of your stock trading system is far more critical and you should focus on this rather than pursuing trading systems with a high percentage of winning trades.
What is possible and realistic depends very much on YOU – your skills as a trader, how good the trading system is and how much risk you can comfortably take on.
When I first started, my objective was to ensure that I didn’t lose all my money! Now my objective is significantly more optimistic than that…
Trading mistakes have a disturbing impact on your ability to make money trading the stock market. Just like climbing a mountain, if you put one foot wrong you could loose a lot of ground…and get injured in the process. The same is true of your trading account.
Why do so many stock traders have trouble pulling the trigger and following through on their trading system development and execution? In this interview with Clinical Psychologist and Trader Dr. Taka Endo we uncover the reasons…and what you can do to avoid these problems.