4 Trading Methods that FAIL and 1 that WORKS

Hey, are you an analytical professional who wants to master the markets, but maybe you're just sick of the emotional ups and downs and the uncertainty and not knowing whether you've got an approach that will actually work? My name is Adrian Reed. I'm the founder of Enlightened Stock Trading. In this video, I want to show you four methods of trading that just don't work. They're absolutely a path to wasted time, frustration, and probably financial ruin. And I want to show you one path that works really well, really quickly and will help you master the markets fast. So let's have a look at four approaches that just don't work and see what most traders are doing wrong. On the screen here, you can see a massive Facebook group focused on stock trading. It's got 132,000 members. And basically what they're doing is asking everyone else to tell them exactly what to do. If you're going into these groups and you're asking for what stock to buy, you are on the wrong path. What should I buy? Is only part of the trade, right? You've got to buy a stock, you've got to decide how much of that stock to buy, you've got to hold it, and you've got to decide exactly when to exit it. And asking someone, what should I buy? Is nowhere near enough information. Even if they did give you a good tip, you still don't know how much to buy, and you still don't know when to exit it, and you don't know when they change their mind. I so what's the next. The next thing that doesn't work? Let's have a look at this. I've got a chart here of the spy, and this is a pretty typical technical traders chart. You know, you've got the candlestick chart up the top, you've got some moving averages, you've got Bollinger bands, you got volume, then a whole bunch of indicators. Because the more indicators you've got, the better your insight into the stock, right? The trouble is all of these different indicators, they're just derivations of price and they're all calculating off the same information. You know, open, high, low, close, and volume. And they're just different formulas applied to that same data. So if you add more and more indicators which are just different mathematical manipulations of price and volume, do you get the right answer? Do you get better and better forecast? Unfortunately, you don't. The more indicators you add, typically the more confused you get. There's another approach that traders typically take on the charts and that's drawing trend lines and supports and resistance and all this sort of thing. The trouble with this is it's more black magic and art than it is science, because all of this is based on the levels that happened in the past. And it's very easy to join two lines in the past and say, look, support held, or look, resistance was maintained, or look, the price bounced off the trend line because you can see what actually happened and you draw the trend line after the event. The trouble with this sort of trading is in real time, it's almost impossible to draw a trend line on the hard right edge of the chart that actually helps you because where you would draw the trend line moves day by day. And again, it's not a consistent way to trade. And two traders will draw two completely different trend lines and support and resistance patterns on the chart. So this doesn't help either. Let's just go for pure price. Let's just unadulterated. Let's just look at price action, which is great, right? Because we get all of those indicators out of the way, we'll be at one with the markets and we'll just see where it's going. Again, complete bullshit because you can't predict what's happening, right? So you might have some in some candlestick patterns or some insight into it, but it's very, very hard to just look at exactly what's going on in the chart right now and make consistent trading decisions day after day, week after week, month after month. And the problem is, if we're going to trade consistently over the long run, what do we need to do? We need to have a proven method that we can repeat over and over and over. And the best way to eliminate all of that uncertainty, all of that confusion, is to put absolute rules in place. Rules that tell you exactly when to buy, exactly how much to buy, and exactly when to sell. Here's my proposed approach, which eliminates 99% of the problems that most traders have. Blow away the charts, forget about all of the indicators, forget about drawing trend lines and support and resistance, and forget about trying to trade with naked price action and put simple rules in place. So I've got a system here which incidentally, I'm going to be giving away if you register for my upcoming live workshop called Market Mastery Bootcamp. Link in the description. If you register for Market Mastery Bootcamp, you're going to get fully disclosed access to this system so that you can see how it works. A trading system is just a simple set of rules that tells you exactly when to get in exactly how much to buy and exactly when to get out. Now the beautiful thing about this is if you have objective rules that tell you when to get in and when to get out, that they become testable. Systematic trading is what it's called, eliminates the vast majority of problems traders have. So let's have a look at what this set of objective rules does. I'm not going to give you the rules today. You've got to register for Market Mastery Bootcamp to get the rules. But click the link in the description and register and you'll get those rules on the bootcamp, which is coming up really, really soon. So here is my analysis window in amibroker. I'm just going to run a backtest and what this is doing is it's taking those rules and applying them to the entire history of this ticker. This system is being applied to the tqqq, which is the leverage Q's etf. And for every day in the history of that ticker, it's looking for where the buy signals were and where the sell signals were and it's applying those signals to the chart objectively. You get a complete list of all of the trades that you would have taken in the past based on these rules. And, and the cool thing about this is then you can start to look at the performance of these rules. And this very simple system, super elegant, easy to trade, doesn't even need complicated software. Produced a compound annual return of 23%. It's 140 trades. It's ultra simple. It's not a perfect system, but making 23% return with a max drawdown of 30% is way better than what the buy and hold of the broader market indexes indices would have given you. So you eliminate the challenges of subjective technical analysis using indicators of drawing trend lines and support and resistance which change over time and are super hard to do. At the far right hand edge of the chart. This is reproducible. And the brilliant thing is if I use these rules and use these rules, we get exactly the same answer every time, which means we can both have confidence that we're doing the same thing. Systematic trading like this eliminates all of the subjectivity and makes it so much easier. So here's what I want you to do. If you're an analytical professional and you want to master the markets, and this sounds interesting to you, what I want you to do is click the link in the description and register for Market Mastery bootcamp. It's a two day live workshop. We're running 90 minutes each day, and we're going to cover the whole journey from launch to mastery of systematic trading. And I'm going to show you exactly what you have to do, step by step, to get from launch to mastery. And I'm also going to give you the rules for this system. So click the link in the description, register for Market Mastery Bootcamp, and I will see you there. My name is Adrian Reed. This is enlightened stock trading, and I look forward to accelerating your journey to trading mastery. Bye for now.