YouTube video (Adrian Reid) arguing that discretionary trading using chart patterns and technical analysis is inefficient and error-prone; advocates systematic trading instead, using an analogy of sorting shells at the beach to show how rules-based systems automate selection, reduce time, errors, and required learning.
Hey, Adrian. Here, look. Hope you had a good start to the week. Question for you. Are you still looking for trades, trying to find the right position to take in the markets with chart patterns, with technical analysis and that sort of thing?
If you are, then stick around. I've got an analogy which is really going to help improve your trading. So here's the thing. I'm at the beach right now, and this is what trading with chart patterns is like.
It's like taking a kid to the beach and finding a big pile of rocks and shells and sorting through it, looking at each one. No, no, it's no good. What about this one?
No, that's not good. What about this one? Nah, that's not good.
That's all right. Maybe I should take that one home. This is what the process of manually looking at charts and technical analysis in a discretionary way is like. In contrast, if you trade systematically, you can get some dramatic improvement in performance and dramatically reduce the amount of time your trading takes and have a much higher quality outcome. Because what you do, the. The equivalent sort of approach with systematic trading is you come to the beach and you have a machine that automatically picks up all the rocks and cells and automatically sorts through them all at once in a systematic way, without your human involvement. And it picks out the ones that meet your criteria, and they're the ones that you take home with you or the ones that you put into your account, given that you're trading. This dramatically, dramatically reduces the amount of time and mistakes that you make. It also reduces the amount of learning required to succeed. Because once you learn the rules of the system and how to follow the system, there's no more judgment required about does this trade meet the criteria of the system? And this is the key, because most discretionary chart traders early on lose money over and over and over again and have to do course after course after course and get mentoring for months or years to try and get successful. Why? Because there's judgment required to determine whether or not it's a good trade. And in systematic trading, it's the system that does the judging for you. So it's not up to your experience. It's not up to how well you evaluate.
Each shell on the beach to figure out whether it's a good one, whether it's worth taking home with you. It's all about do you know which buttons to press, do you know how to run the system in your software, do you know how to update your data? And these are much, much simpler things to do. So if you're still trading using chart pattern analysis, discretionary analysis, using indicators, and that sort of thing, it's time to take the step into systematic trading. It will reduce the amount of time you have to spend on your trading. It'll increase the consistency. It'll reduce your stress. It increases the number of good trades that you can find because you can scan the entire market in the blink of an eye once you've got the system set up in your trading software. So my name is Adrian Reed. Enlightened stock trading is all about the systemized approach that fits you to make your trading consistent and profitable. So if you're not yet trading systematically and you want to learn how, comment Systematic below this video and I'll show you how to get started. That's all for this video. See you in the next one. Bye now. It.
