Trading without systems in place is possible at any skill level. Just seek out trades that have good fundamentals and technicals and place the trade. However, you can lose a lot of time and even negatively affect your portfolio if you’re not careful. Even if a security has great fundamentals and technicals, is it right for you? This is where a system can come in handy and save you serious time and heartache.
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Description
Trading without systems in place is possible at any skill level. Just seek out trades that have good fundamentals and technicals and place the trade. However, you can lose a lot of time and even negatively affect your portfolio if you’re not careful. Even if a security has great fundamentals and technicals, is it right for you? This is where a system can come in handy and save you serious time and heartache.
The most basic system is a set of trading rules you make for yourself regarding probability, ROI, your tolerance for risk, and other factors. This makes assessing a potential new trade super easy. Does it fit your rules? If so, great! Place the trade and move on. If not, excellent; you saved yourself the pain of making a bad trade.
A step beyond simple trading rules are actual trading systems, such as Theta Fade by Steve Huang. A system takes generalized rules and sharpens them to the point that the rules become super focused. In Theta Fade’s case, the rules focus on trading options once a week, on Friday. May not sound like much, but said system was a big part of Steve Huang being placed into the Rich Dad Hall of Fame.
In this episode, Tim is joined by Kevin O’ Banion to discuss Kevin’s journey as a trader and offer an insight to how Steve Huang developed his own trading system.
Notes
- For your free 15 day Tackle Trading Pro trial membership, follow this link and fill out the form with the coupon code: theta
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