Just in case you were starting to get excited about the positive moves in the S&P, the markets had a bit of a pullback last week which was felt across US, Canada, Australia and Hong Kong. Just in case you needed another reminder that PATIENCE is the number one emotional characteristic required to be a successful trader.
Just to show you how sideways the market really is, in the last month, I have gone from Short to Long and back to Flat in Hong Kong. Sometimes our systems get whipsawed and unfortunately, that is just part of trading… that is why we trade low risk per trade and diversify across many systems.
I would certainly not get too worried about this tiny correction at this point… it is all just part of this relentless sideways movement we have been enduring for the past few months.
Interestingly Bitcoin decoupled from the stock market this week showing quite a bit of strength despite the SEC’s best efforts to punish Binance US. It really is handy to have systems across several asset classes because the low correlation certainly makes a difference in the portfolio!
I looked at the drill down of the current market behaviour into large vs small stocks and on the different markets in the US but the story has not changed over the last few weeks. So I am not going to waste your time showing you the same charts again… I will share more when something interesting happens 😉
Something interesting is happening in Crypto at the moment that is worth sharing… Binance is still under attack from the SEC, and so there is a bit of a discrepancy opening up in the price of Tether (USDT) between the exchanges.
Presumably, because many people in the US (and perhaps elsewhere) on Binance are selling their positions to Fiat and withdrawing their Fiat, this is putting pressure on the price of USDT vs the USD on Binance. here is a snapshot that I pulled off TradingView showing the current (as at the time of writing) price of USDT across 4 different platforms:
I guess this means is that right now if you are selling USDT to get USD (Fiat) on Binance US you are basically getting screwed right now. This is one of the unusual things that can happen from time to time in a decentralised market like crypto. It also shows why it is important to have accounts with multiple exchanges so you can move your crypto around easily and get back to Fiat multiple different ways.
For example if the above price ($0.9533) was what you were getting offered for your USDT on Binance US, it would be a lot better to transfer it to Coinbase and convert to USD there to withdraw (depending on the other fees of course).
It pays to keep your eyes open in Crypto – sometimes this sort of price discrepancy can end up being costly.
Trading Tip Of The Week
Learning to trade is a journey, it takes time and commitment. Strangely most new traders come into the markets thinking it is easy money… nothing could be further from the truth. Trading is tough, especially if you try to figure it all out on your own.
I wanted to share the Enlightened Stock Trader Journey, that I have been speaking with my Trader Success System members about in the last few weeks:
You may have seen this image before – it is the journey that we take our members on when they join The Trader Success System. Here is what each stage of the journey looks like…
Over the last week I have been focusing on the Automate stage of this journey as we launched The Smart Stock Automation Engine… Automation of your trading dramatically improves consistency, reduces mistakes and gives you a level of freedom that you just can’t have when you trade manually. My automation runs on a VPS in the cloud and my job as the trader is to monitor the automation, check and handle any exceptions, monitor the performance of my systems and build new systems to further diversify my account… I no longer have to be an order entry clerk on top of that.
So my tip this week is to remember where your value lies… once you know the basics of systematic trading and you have learned to backtest and build confidence in your systems, there is limited value in actually physically placing trades yourself. In fact it is far more likely to result in a mistake than automated trading is!
So once you understand systems and backtesting, automation can remove that low value task from your plate and allow you to focus on more important things – Like testing that system improvement idea you had or developing a new system.
If you have Amibroker and Interactive Brokers, watch the demo video of The Smart Stock Automation Engine on this page (it’s the second video) to see how it works.
Member of the Week
My member of the week this week is Matthew… Matthew is absolutely killing it and making fantastic progress in the last few weeks. And the reason is that he is trying to get as much done as he can before he leaves for an overseas trip.
Matthew has been showing up and doing the work and moving his trading ahead in leaps and bounds!
What this shows is the power of having a DEADLINE.
Have you ever experienced an external deadline being imposed on you which meant some work or home project just had to get done in an unreasonably short period of time?
And when that happened, did you find a way and get it done in time?
I am thinking yes because that has certainly happened to me.
Contrast this with Trader X who approaches learning to trade without any deadline… Trader X just ambles along without any urgency and gradually, ever so gradually build his skills. Trader X is hoping that one day he will be able to make some real money in the markets.
Who do you want to be like – Matthew, or Trader X?
I can tell you which is more successful – Matthew’s approach. He is learning with focused intention, working to a deadline and excited about getting it done!
This is also why The Trader Success System is so valuable – we give you everything you need to take the ENTIRE Enlightened Stock Trader journey you saw above. We do it in a clear and simple step by step way you so can stay focused on what really matters, set yourself deadlines and work towards your goals like Matthew.
Well done Matthew – keep up the great work!!!
News From EST
The launch group for The Smart Stock Automation Engine is up and running and we had our kickoff meeting last week. Congratulations to everyone who joined – you are about to transform your trading lives and future!
We got our first review of the new book “Wisdom From The Masters of Systematic Trading” which I was very excited about. I would love to have some more reviews on Amazon, so if you have read it please GO HERE TO WRITE A REVIEW… if you haven’t read it yet then you can get the book here (It only costs a few bucks and it could really clarify many important trading concepts for you!)
Thank you for taking the time to write a review Clay, I certainly appreciate it!
On the Home Front
Only a couple of days left before my son and I fly out to Tanzania so we are pretty excited about that! To be honest we have had enough of walking up and down the local hills and we are ready to do the real thing! Standing at the 5,895m high summit looking all the way to the horizon and seeing the curve of the earth is amazing and I can’t wait to share it with my son!
Are you ready to take the next step in your trading?
We are approaching the end of the financial year in Australia, so now is the perfect time to join The Trader Success System Membership… Join now, potentially get a tax deduction now (speak to your accountant about that), and receive the best systematic trading course, live support and portfolio of systems for the next 12 months.
But if you want this deal you need to act fast because once I get on the plane to Tanzania I will be off the grid and you will miss out. So if you really want to join The Trader Success System and you want a neat saving for taking fast action – send me an email on adrian”dot”reid”at”enlightenedstocktrading.com with the word “DEAL” and I will get you the details…
But act fast – You only have until the end of day Tuesday Sydney time because I leave on Wednesday.
Hope to hear from you soon. Remember – the secret word is “Deal”
Founder – Enlightened Stock Trading
P.S. Whenever you’re ready… here are 4 ways I can help you improve your trading:
1. Join the FREE Enlightened Stock Trading Group
It’s my Facebook community where smart traders learn to trade with less time, effort and stress.
2. Watch FREE training on the Systematic Trading Workflow
Systematic trading is the perfect workflow for busy, independent traders. Watch this free training where I demonstrate the benefits of systematic trading, how it works and just how powerful it can be. This is a 100% training, ZERO PITCH session.
3. Join The Trader Success System
Are you ready to systemise & dramatically improve your trading? The Trader Success System shows you how to start trading systematically, backtest your systems & gives you access to complete, robust trading systems. Become a Successful System Trader FAST!
4. Join The Crypto Success System
Do you want to trade the crypto markets to capture the huge profit potential in a systematic way? Join The Crypto Success System and learn how to become a confident, successful and systematic crypto trader fast. Join The Crypto Success System Now.