3 Part Process for Predictable Trading Profits (Part 2)

Hi, Brian McAvoy here with Inside Out Trading. Today we're going to get into part two of the three part series, the three part process for predictable profits and trading. And this part right here is really going to be crucial. Now make sure, if you haven't seen it, you want to go back and watch the first part, which is get consistent first. Absolutely critical that you understand in this three part process. Part one is to establish consistency first. Not profits. Don't chase profits first. Establish consistency first. And the second part, this is, and this is again is where if your goal as a trader is predictable profits, not just profits, not just consistent profits, but you want them to actually be predictable where you can look ahead to the coming weeks and months, maybe even this whole year, and actually put together a reasonable forecast. That's what you can realistically expect to be making. Wouldn't that be cool? Instead of, hey, you know, I hope I make money this week or I hope to make money today, whatever, and be like, hey, I can look ahead and actually know that, yeah, I can plan on X amount next month, next quarter, this year and have it be a realistic expectation. Wouldn't that be cool? Yeah, it is cool. And this is how you go about it, so make sure you pay attention. Again, this is a proven three part process. This is what I learned with my quality background that let me turn my trading around over 20 years ago. And it just plain works. I've been teaching this to other traders for almost 19 years and it just plain works. It's rooted in engineering and quality assurance practices and again, it just plain works. It's not some big psychological hack, it's not some trick, it's not some clever strategy or whatever. This is a proven process, a three part process for predictable profits. And again, if you want to treat your trading like a business, to have it be the financial asset that you want it to be, where you have predictable returns, good returns, and again, it's predictable. Then pay attention now, again, if you haven't seen it, check out the first video in this series. And that is, you know, get consistent first. That's the first part of the process. Establish consistency first. You don't want to chase profits first. Establish consistency first. Okay, once we've established the consistency, now we want to dial it in for profit. So this is where so many traders this, they just make all kinds of mistakes, the first of which is curve fitting. They'll, you know, they'll get on the Internet, they'll Google it, you know, or, you know, you look on YouTube, you know, how to optimize a trading system. And basically all that you're, all they're going to learn there is how to curve fit a trading system. Now, if you're not familiar with the term curve fitting, and this is where a lot of scammers really get away, get away with murder because, and despite. And they, they're really good at taking advantage of traders who say, well, you know, show me how much money you've made. And what they'll do is they'll take a trading system and they'll run the trading system over a given time period, you know, maybe like, you know, last quarter or last month or last, you know, year or whatever, and they'll run the system, you know, on historical data and they'll run it over the set time period and then they'll make adjustments to it and then they'll run it again and they'll keep doing that until the system is so perfectly fit to that set of data that it just looks fantastic. And hey, this is real market data. And so, you know, all the traders who think to be, you know, smart and it is an intelligent question to ask or logical question anyway to say, okay, well, you know, show me how much money you made. You know, show me with real market data. Well, the thing is, if somebody's curve fit their system to fit a specific time period or, you know, data set, they fit the system to that. Of course it's going to look great. And they can stand there and in all honesty say, you know, hey, this, this, you know, last year, these were the results. And they can say it without lying because they fit it to that year and those are the results they got. So anyway, curve fitting is when you take a strategy and you fit it to a set, a certain set of data, you know, a certain time period. And that's, that's curve fitting. You're fitting your, your system to the data. And that's the big mistake that a lot of traders make is they'll sit there and they'll optimize their system, but they optimize it to a, a fixed set of data and they're they're just curve. Then they wonder why, you know, when they go testing it and, or, you know, put actual trading go wonder why the, the results aren't the same. Well, it's because you fit it to this, you know, past set of data and you're just playing, you know, we weren't going about it, right? When you're optimizing a system, you don't want to fit it to A specific set of data. You want to make sure that it's robust and you know, that it will work moving forward and that it will actually perform. So the other thing, as far as, you know, optimizing a system, some traders, they just plain get, they get way too crazy with making adjustments or worst of all, they're sitting to start jumping around and they're thinking, well, you know, you know, I got, you know, this, you know, this trend following part, but I keep seeing a reversal so I want to include this. And in their optimization, they just keep adding stuff, trying to capture, you know, more and more and more opportunities that they see and then they wind up with this big mess of a trading system. It's really, it's not a trading system. It's like a big mash of systems all smashed together. That's not how you optimize a trading system. So, you know, those are a couple of the major mistakes. And again, you know, jumping around, Shiny object syndrome, that's another one where a lot of traders make a mistake. It's like, you know, I see this guy's making money over there, so I'll take part of what he's doing and I'll, you know, I'll incorporate it into what I'm doing. You don't want to do that when we're dialing in for profit, when we want to make sure that we're doing it the right way, which starts with testing it the right way so that you get an accurate measure of how good it is for, you know, baseline. And then we want to optimize it in a calculated and businesslike fashion. That's really super important. Now I go into detail on this in my training and more, you know, information that I have available on my site. So if you want to find out, you know, more details on this, on how to go about it, swing by inside out trading.com and you know, engage with me there. If you want to download some of my free material, I've got stuff for you there. If you want to book a call with me and talk about your situation and you know, what's the best, best path forward for you and you know, talk about things that you run into and how to get you past the obstacles that are, you know, keeping you from moving forward, go and book a call with me. There's no charge for the call and we can, you know, talk about the best path forward for you. And if you want my help, you know, I'll explain how that works. If, you know, working with somebody else is the Best way to go. I'm fine with that. I refer traders to other providers in the space, other, you know, mentors and coaches in the space. I know a lot of good people. I've been at this a long time. I've come to know the good ones. You know, that they're been around for a. And they're, they are good, they are helpful. So I know that I'm not always the one to help you and if I, you know, send you to somebody else, that's fine. I'm not making money on it. It's just I want to help you get on with your trading so that it's actually working the way you want it to be. It is that part of your life that actually is contributing and it's, you know, it's improving your quality of life. And so I just want to help as best I can. If I'm the one to help you moving forward, cool. Somebody else, I can point you in the right direction. But you know, for now, don't just settle for the way your trading has been going if it's not really all you want it to be. Let's make sure that you, you do take some action, you move forward, you get on with it and you start realizing better than what you have been. Even if things been going okay, I'm sure you would like for them to be better. So anyway, like I said, swing by insideouttrading.com book a call with me if you want. We'll talk about your situation. We move forward. If you want to just download some free materials, cool. If you just want to watch more of my YouTube videos, check out my channel. Subscribe to the channel if you want. Share it with your friends if you found it helpful. Anyway, again, I hope this has been helpful. We got part three coming up here real soon. We've talked about the first part. Two parts in this three part process for predictable profits. First part is, you know, establish a consistency first. Second one is dial it in for profit, but do it the right way. We're going to talk about the third thing for predictable profits, the third part of the process in the next video. So make sure that you subscribe so that you catch it when I publish it. Anyway, hope this been helpful. Talk to you soon. Cheers.