One of my favorite indicators is flashing a caution sign. It’s saying that a major U.S. market index is stretched to the upside.
I’ve spent years studying, doing a ton of research and backtesting trading systems for essentially a single purpose:
To control the market. Or at least attempt to somehow gain control of where my trades go.
The work is exhilarating… and can give me a feeling of invincibility, like nothing can go wrong.
The emotional part of me suddenly wants to execute trades with gigantic position size. But that feeling of control is dangerous.
When it happens to me, I just have to laugh at myself and take a step back.
Newsflash: There’s no way for me (or you) to control the markets or trade outcomes.
It’s often the trades you have the most confidence in that do the most damage. You get attached to the trade… hope it turns around instead of cutting it and moving on.
It sucks, but that’s an expensive lesson that I’ve had to learn..
It’s so easy to fall prey to this idea that we have it all figured out. That we’ve discovered a system that’ll deliver a 100% winning rate. That’s obviously not realistic.
Don’t let confidence or the idea that you can control the market influence your trading.
Instead, you need to have realistic goals and stick to what you know should work over the long-term.
That’s why I mostly stick to trading systems, it removes the emotion. It also ensures that I’m trading a system that has proven to work over the long-term.
And I’m about to add a new system to my arsenal starting November 25.
Like me, Roger Scott is a systems trader. And he’s going to unveil his latest one this Monday. I’ll be there… and if you reserve a spot now, you can be there too.
I don’t have all the details of the system yet, but he did tell me it’s designed for the tricky market we’re in right now. He says it has the potential to double your money over the next, even if stocks go nowhere or crash.
Seriously, you don’t want to miss this. All you have to do is sign up here, and Roger will send you all the details.
Good luck trading everyone!