Click Here to watch all of my Stock Trading Systems videos in this special YouTube Playlist and don’t forget to subscribe to the Enlightened Stock Trading YouTube channel to get all of my trading video updates. Click Here to Subscribe ⏩
If you have not backtested different ways of turning your trading system on and off in different market conditions then you could be leaving a lot of money on the table OR suffering big drawdowns and losses unnecessarily.
You can make money in volatile market conditions caused by world leaders, geopolitical events and uncertain economic conditions. But you cant keep trading the same way as you do in a bull market… nor can you let fear get the better of you and dump everything and go short.
Why you can’t ONLY rely on a backtest when testing your trading systems… Only watch this if you want to avoid blowing up your account!
There are price moves that happen in the Stock Market that are life-changing, these price moves that happen over many months can multiply your account and change your financial future.
For most traders, catching this sort of stock trend is pure random chance… but for the prepared trader… The Enlightened Stock Trader… it is possible to systematically catch these windfall profits.
Where do the best trading lessons and trading ideas come from?
Chances are if you are struggling then you are looking in the wrong place…
What Trading Lessons, realisations and System ideas have you had when you are going about your daily life?
The process of developing your own trading system can be quite daunting, especially the first few times you do it. It gives rise to so many questions:
– How do I convert my ideas to trading systems?
– Is my trading strategy sound?
– What is the best process to develop a system?
– Are my rules profitable?
– Is my trading edge stable?
– Are my rules robust?
– Have I optimized my rules correctly or are they curve-fit?
– Is my code accurate and realistic?
Bold marketing claims for trading advisory services, indicators, traders wanting to manager your money or trading systems can be tempting… but appearances can certainly be deceiving, as I found out in Milan.
.
The Solution is to take control of your stock trading, backtest everything for yourself and become an independent and systematic stock trader.
Stocks that go on trading halt for an extended period of time really drive me bonkers. This happened to me 12 months ago and the stock is still on trading halt – I can’t get my money out!
The lesson is to make sure every trade is only a small percentage of your capital because if trading in a stock is halted there is nothing you can do but wait, and you don’t want to be stuck with a large position that you can’t get out of!
If you have ever asked “What stock should I buy?” or “What is the best trading system?” then you really need to watch this video. These questions are extremely common, BUT it is a HUGE trading mistake.
Some plants are highly Specialised and can only survive in very narrow conditions… some are robust and can live almost anywhere. You need your trading system to be like the plants that survive everywhere. It doesnt have to make money in every market, but it does have to keep your account alive no matter what happens in the stock market!
In order to make money trading, you need to allow your winning trades to grow rather than as soon as you get a profit snatching a quick profit and closing that trade out. If you snatch the quick profit and close the trade out, you guarantee that you’re going to get a small win. Trouble is when you get a loss, that loss is always going to be bigger than that small win that you’ve managed to capture.
Great trading systems are difficult to find because trader psychology prevents us from seeing or identifying some of the best edges that are available in the stock market. When you design a trading system your stock market edge needs to be stable and consistent over time, otherwise the trading system will stop working. The key to developing stock trading systems that are stable and continue to be profitable over time is to ensure you take advantage of the psychological mistakes other traders make…which cause them to miss the very best trading opportunities.
Watch this video to learn the two characteristics that all of the best trading systems share!