My trading style is strange to say the least.
I rely on fundamentals far more than any trader I know and I rely on price action way more than your typical value investor.
No matter how good a technical entry looks, I won’t enter unless the fundamentals are sound. But no matter how sound the fundamentals are, I will always wait for a mindful technical entry.
As an independent trader, I take advantage of my freedom to invest with stop losses. No amount of fundamentals will make me hold a bag or marry a losing position.
I have no problem taking my calculated loss and moving on to the next opportunity.
Opportunities in markets are abundant. I don’t chase pumps, I sit and wait for asymmetric opportunities to arise. And then I go for the jugular.
I do what day traders do on 10 minute charts, but on the daily and weekly charts. Usually a thesis can take anywhere from 1 week - 24 months to develop.
I never take my max profit. I only sell when it is clear that the trend or my thesis has changed.
There’s nothing more painful than selling too early…
Except having to sit on your hands for months without being able to take any profits..
Now that’s excruciating.
Which is why I don’t recommend my style of investing for most people.
With this system, you bleed a little every day. You take many small L’s. Calculated. But it takes a certain person, nonetheless.
But when you win, you win big. Im not afraid to play a heavy hand when my conviction is there. It is the art of risk taking. Anyone can learn risk management, few manage risk taking.
This is my system when it comes to how I invest. But a philosophy I live by, “Investing is 10% skills and 90% psychology.”
If you want to earn with your mind and not your time. You have to train your mind.
That alone is the cost of freedom.
“I always say you could publish rules in a newspaper and no one would follow them. The key is consistency and discipline.”
— Richard Dennis