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Are you looking for that one thing that will make all of the difference and turn your trading around for good. My name’s Adrian Reid. I’m the founder of Enlightened Stock Trading, and when I first started trading, it took me three years to get profitable. Three long, long, difficult years. Now, I didn’t lose a lot of money when I started trading. A lot of people blow up their accounts and so on. I didn’t have that problem because I started off with very good risk control, very small risk on every trade, but I didn’t have a method that really worked. And I tried lots of different things. I tried fundamental analysis. I tried buying good companies that paid dividends. I tried technical analysis, looking at charts and drawing trend lines and support and resistance. I tried lots of different indicators. I tried a huge number of different things, and I really found that it was incredibly difficult to be consistent with any of those things.
And ultimately, I realised the reason it was hard to be consistent was that all of those approaches require subjective decision-making you have to take in a lot of different information and make a decision about whether to buy or whether to sell, and also how much to buy and how much to sell. Subjective decision-making and trading is incredibly, incredibly difficult to do consistently. Over time. You might have a hot streak where you’re making great decisions and then you kind of get out of sync with the market, or your mind’s not quite in it, and you sort of lose your edge. And so it comes and goes. It’s very hard to be consistent with any subjective measure. The one thing that made all of the difference for my trading was when I discovered systematic trading, and I discovered systematic trading by reading a book called Market Wizards, which was interviews with all sorts of different traders from all different styles of trading.
There was fundamental traders, there was quantitative traders, there was global macro traders, all sorts of things. And in that book I discovered systematic trading, which is purely objective rules based on price and volume that allow you to make your decisions completely objectively. If A and B and C happen, you buy If D or E happen, you sell. Now those rules, having objective rules like that is a complete game changer. It certainly was for me because as soon as I discovered that approach and I implemented my first system, my account turned around on a dime. It went from losing money gradually to the day I implemented my first system, and it turned around and my account started going up. I used to record my equity curve. I still do record my equity curve every single day, and you can see to the day when I implemented that first system and it was an absolute game changer for me. All of a sudden, the subjectivity of my decision-making was gone, and I could make consistent decisions day after day. Not only that, but the amount of time my trading took shrunk from three or four hours a day to 20 to 30 minutes a day because all I was doing was running my raws to look for my trade. That’s all it took. So less time each day, much less stress, much less mental energy because I didn’t have to make subjective decisions all the time.
Much higher consistency, much better profits. That’s why systematic trading is such a game changer. It certainly was for me, and it will be for you too. So if you want to learn more about systematic trading, stick around. Subscribe to Enlightened Stock Trading and come along for the journey with us and I’ll show you the path to consistent long-term stock trading. My name’s Adrian Reid. I’m the founder of Enlightened Stock Trading. See you in the next video. Bye for now.