Stock Market Update|4 Critical Lessons To Boost Your Trading Now

Here is what I have for you this week:

• Tesla Gets a Political Black Eye – What it SHOULD mean for Traders
• What Iron Mike Tyson can teach us about trading
• The Holy Grail of investing… Are you trader #4?
• On the Homefront: Trading, Energy, and Knowing Yourself

Tesla Gets a Political Black Eye – What it SHOULD mean for Traders

Tesla’s stock dropped over 14% this week, shedding around $150 billion in market value.

The headlines are loud:

• Elon Musk publicly clashing with Donald Trump
• Threats to cut Tesla’s government contracts
• EV tax incentives at risk
• Cybertruck delays, quality issues, and underwhelming sales

The real clown-show is how public the spat is between Musk and Trump, and the impact on the Tesla stock price is pretty ugly (falling as much as 25% from the short term high on 29 May).

Look at the chart, then I am going to ask you a question:

So here we go… 

How can you possibly make good, profitable financial decisions about a stock like this when these are the sort of public messages that two extremely powerful and wealthy people are throwing around… acting like spoiled toddlers?

The best answer that I can see is to trade systematically.

Let’s cut through the noise and look at this from a systematic trader’s perspective. Because if this week rattled you… it probably means you’re still trading based on emotions, not rules.

So what does a systematic trader do when Tesla crashes?

1. Ignore the drama

Political fights and media spin don’t trigger trades. Systems run on data – price, volume, indicators. Not social media soundbites.

2. Let price action lead

Tesla’s fundamentals may be messy right now. But unless your system is built on that data, it doesn’t matter. What matters is whether the price confirms your setup or not.

3. Follow the rules, even in chaos

If Tesla triggered an exit in your system, you exit. If your short system is now signalling an entry, you short.

No panic. No hoping. Just process.

4. Let volatility work for you

Increased volatility is not the enemy. It’s fuel – if your system is built to handle it. Smart systems reduce size or step aside when risk spikes. Some even thrive on it.

5. Don’t ask “What should I do?”

If you’re asking that question… it means you don’t have a system. And that’s the problem to fix.

As an aside, I believe Musk’s behaviour is highly reckless for the CEO of a publicly traded company. Having a public spat with POTUS (irrespective of what you think of Trump) just can’t be good for shareholders.

This is another reason why blind faith in ANY company and buy-and-hold strategies in individual companies are so risky – there is so much that can go wrong when personalities and ego get in the way!

Weeks like this are exactly why systematic trading matters.

Because when emotions run high, the best thing you can do is follow the system you trust.

If you are just getting started and you don’t have a trading system yet – let’s change that.

 Start here with the Trader Success System if you want to master systematic trading and launch a portfolio of 3+ fully automated systems within 6 months

Trading Quote of the Week

Ok, so it is not a trading quote… but I think Iron Mike was onto something

(Full disclosure – I am NOT a boxing fan. Horrible sport – basically the modern equivalent of watching gladiators in ancient Rome). 

Here is my take on this for traders…

“Everyone has a plan ’til they get punched in the mouth” is a brilliant metaphor for trading. It highlights the gap between theory and reality – something every trader faces.

In trading, your “plan” is your trading system: your entry rules, exit rules, position sizing, and risk management (along with your broader trading plan). But the “punch in the mouth” is the market’s unpredictability – unexpected losses, volatility, or even emotional reactions to drawdowns.

For traders, this quote underscores the importance of two things:

1. Resilience and Adaptability: A trading plan is essential, but you must also prepare for the emotional and psychological impact of losses. As I’ve said before, losing trades happen all the time, and accepting that is key to becoming a systematic trader . If you abandon your plan the moment things go wrong, you’re setting yourself up for failure.
2. Testing and Confidence: A well-tested trading system gives you the confidence to stick with it, even when the market feels like it’s “punching” you. Your plan must align with your risk tolerance and personality to ensure you don’t abandon it at the worst possible time .

Ultimately, the quote reminds traders to expect challenges and prepare mentally, not just technically.

The Holy Grail of Investing

Ray Dalio—founder of the world’s largest hedge fund—has a simple but powerful idea he calls the “Holy Grail of Investing”:

Have 10 to 15 good, uncorrelated return streams that are risk-balanced.

Why? 

Because when you combine strategies that behave differently in various market conditions, you lower risk without sacrificing returns. That’s the holy grail: smoother equity growth without the emotional rollercoaster.

At Enlightened Stock Trading, we don’t just agree with this—we teach it.

In The Trader Success System, you’ll gain access to over 20 proven trading strategies. Each one is backtested, validated, and designed to perform in different market regimes—bull, bear, sideways, volatile, trending—you name it.

Just take a look at this equity curve chart:

Each line is a different system in The Trader Success System – profiting through decades of shifting market conditions. Alone, they’re strong. Together, they’re incredibly resilient.

But Here’s What I See When I Speak to Traders…

When I speak to traders about diversification, I usually encounter one of these four reactions:

1. The “All-In” Trader – Wants just one system and puts everything into it.
2. The “Familiarity Bias” Trader – Loves one market or strategy and overconcentrates.
3. The “System Collector” – Adds multiple strategies without fully testing or understanding any of them.
4. The Portfolio Builder – Methodically builds a diversified, risk-balanced portfolio. They test each system, understand its role, and implement one at a time with confidence.

Which type of trader are you? (Reply to this email and let me know)

In The Trader Success System, we train you to be Trader #4.

You’ll learn how to:

• Build unshakeable confidence in each system through proper backtesting
• Understand why each system works and in which market conditions it thrives
• Construct a diversified portfolio that’s aligned with your personality, risk tolerance, and trading goals

This isn’t theory. It’s the exact approach that helps our students grow wealth with confidence – without blowing up their accounts or riding the emotional highs and lows of guesswork trading.

  Start here with the Trader Success System if you want to master systematic trading and launch a portfolio of 3+ fully automated systems within 6 months

On the Homefront: Trading, Energy, and Knowing Yourself

We had a really insightful dinner conversation at home last night.

There were four of us around the table – my wife, her best friend, my youngest daughter, and me. Two of them are full-on extroverts. They get energy from people, conversation, movement, buzz. The other two (my youngest daughter and I) are introverts. We enjoy people (mostly), but social situations require energy management. For us, it’s about conscious pacing, breaks, and being deliberate about how we recharge.

The conversation was a great reminder that not everyone experiences the same environment the same way. What charges one person’s batteries may drain another’s. And it struck me that trading is exactly the same.

The Parallel With Trading…

Just like social situations, trading activities affect people differently. Here’s what I mean:

• If you’re trading a strategy that doesn’t fit you, it’s draining.
• If you’re relying on rules you don’t trust 100%, it’s exhausting.
• If you feel the need to stare at charts all day, second-guessing every move, your confidence and your energy takes a hit.

For me personally, I find developing new trading systems energizing. I love solving puzzles, improving edges, testing my hypothesis and seeing the numbers line up.

But checking the markets intraday and watching the news? That’s tiring. Draining, even. And the good news is—I don’t need to. My systems run just fine without me being glued to the screen. I focus on the high-leverage actions: update the data, run the signals, place the trades. Then I move on.

That’s the lesson:
You must design your trading systems and routine to support your energy, not fight against it.

Your Turn…

• Are you an introvert or extrovert?
• Which parts of trading give you energy—and which parts wear you out?
• How do you manage that balance?

If you’ve never thought about this before, here’s a good starting point: Next time you sit down to do your trading work, notice how you feel after each different activity. Does each activity charge you up or deplete you?

Because sustainable trading isn’t just about strategy. It’s about self-awareness. And the better you understand what fits you, the more likely you are to stick to your system, ride out the tough spots, and win in the long run.

I’d love to hear how this shows up for you.

Given you have read this far, please do me a quick and reply to this email and give me a score so I know if you loved or hated this update
(10 = Loved It; 1 = I hate this, I am unsubscribing)

I appreciate you – thanks for reading.

Remember – You are only one trading system away!

Adrian Reid
Founder – Enlightened Stock Trading

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