I teach mainly trend trading, I also teach other forms of trading but as I said in the eBook I regard trend trading as one of the more simple forms technically and so suitable to most people. Other forms of trading are normally more complex and take more time to execute and monitor.
Trend trading is simple, a method using simple rules far outperforms a buy and hold strategy as is clearly shown in the statistics of the eBook, as well as my own portfolio on the website.
Trend trading really only requires you to do 4 things in sequence
1/ find a stock that is trending up
2/ buy an amount of that stock that suits your risk profile
3/ sell the stock when it starts to fall
4/ repeat the process
Now I realise that amongst and in between those 4 stages complexity arises.
1/ how to identify a trending stock and what group of stocks to trade
2/ how much stock to buy or more accurately how to identify your risk appetite
3/ what sell signal to use or more accurately what time frame will you choose to make your decisions, daily, weekly or monthly
4/ building trust in the method so you can execute the trades when required.
The eBook clearly addressed 3 of the 4 above points.
The 4th requirement, Repeat the Process, is by far the hardest to master. I attempted to build trust in the method by showing you via the book as much information, statistics and probability over the long term I felt the average reader could easily understand or mentally digest. To also build faith I publish my own trading portfolio and results for free, to my knowledge I am the only trading coach or market commentator in Australia that does so.
I said in the book that the biggest problems traders have is
1/ they don’t have a method
2/ if they do they don’t stick to it
The second problem (not sticking) is related to the 4th trading sequence. Motivation to continue a task is linked to reward, it’s hard to continue any course of action without reward. Being human and wired to need regular reward without it we will sooner or later give up.
The difficulty with trend trading is it often requires you to repeat a task that takes time to deliver the reward. We live in a world where we are used to instant gratification, unfortunately this mindset does not suit trend trading.
So if you identify yourself as an impatient person or a person that likes frequent activity and action, a method of weekly trend trading will not suit you. If you are a person that has patience and discipline then this method will mostly work for you. Those virtues will give you the reward that will keep you going and enable you to execute step 4, which is repeat the process WITHOUT INTERFERING IN THE PROCESS.
Trend trading is a simple method, what is not simple is you. You and I and us, are complicated, or perhaps I should say we can (and often) complicate a simple process.
My trading seminar on the 19th May will be about teaching, confirming and once again establishing the simple process of trend trading, along with examining the reasons why we complicate our trading and what we can possibly do about it. If you are interested in attending some seats are still available, click below for more info.