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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.
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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!
I figured out something HUGE and if you are not consistent and profitable in your stock trading yet then you need to understand this secret! Most systematic stock traders out there are making the same mistake, if you look in all of the Facebook groups where trading systems are being discussed you will find countless traders doing exactly the same thing!
Watch the video to find out what it is and then leave me a comment below to tell me whether you agree or not…
Someone challenged me today, one of my facebook posts about my claim that stock trading is scientific that was saying that stock trading is a skill and is absolutely not scientific at all. So I recorded this quick video just to share my perspective about why I believe trading can be scientific and how you can use scientific principles to improve your stock trading.
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.
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…