How to Systematically Catch Windfall Profits in the Stock Market

Adrian here from Enlightened Stock Trading. And did you realize that if you could just hang around in the market and stay profitable for long enough, amazing, unexpected, awesome things can happen. So right now we're on the last night of our 10 week RV adventure around the West coast of the US focused mainly on national parks. And this is the last night, tomorrow morning we have to drop the RV back and we've got to be there early. And we chose the RV park that was closest to the place where we have to return the vehicle to. And it's, you know, it's a big vehicle, there's a lot of traffic right now. It's the Fourth of July, if you can believe it, in the U.S. so it's everyone's, everyone's happy and excited to celebrate and looking forward to fireworks and all that sort of thing tonight, which is very cool. But here's the even cooler thing. We've survived 10 weeks of this RV journey and the very last night, we happen to be in the most awesome RV park in the universe. So this here is our view. You can see here the van behind me, the kids are there. This is Malibu Beach. So we're parked right opposite Malibu beach, up the hill just a little bit. We have an unobstructed view up and down the beach for the fireworks tonight for 4th of July. So super pumped and excited about that. Now, this sort of thing happens in life, but also in the market. But in order for you to get this sort of unexpected surprise, unexpected bonus, or.

Unusually great outcome in your trading, what do you have to do? Well, there's a couple of things that you need to do to position yourself to benefit from the really outsized positive moves in the market. The first thing that you need is a trading system that allows you to catch them. Now, the best way to catch the real mega moves, the big shifts in the market, is to have a trend following system. A system that will get you into something that's moving up and keep you in that move the whole way through, all the way through the primary trend. Because the biggest profits always come from the biggest moves. And you only catch the biggest moves if you have a good trend following system. So first thing you need is a good trend following system. The second thing you need is the confidence to follow that system. Now how do you get the confidence? You get the confidence to follow your trend following system by backtesting it thoroughly using the techniques that I talk about in the Trader Success System, following the methods in the Expert's Guide to Back Testing, which is one of enlightened stock trading, one of my primary courses. So you need the confidence to follow that system. The third thing you need to do, which is something that probably a lot of traders don't do enough of and don't realize the power of, is massive diversification. It's really tempting in trading to go big on individual trades, trying to make money out of each individual trade. But the trouble with that is if you go big, take a big position size on each individual trade, you can't fit that many trades in your portfolio and so you're not diversified broadly. And if you're not diversified broadly, what's the problem with that? The problem is your odds of capturing an outsized move, capturing one of those mega trends in a stock and is dramatically reduced. If you hold 10 stocks in your portfolio, you've got half the chance of catching one of those dramatic big moves as you do if you've got 20 stocks in your portfolio. And the thing is, okay, if you've got 20 stocks in your portfolio, sure your position size would be smaller, but you actually have a greater chance of catching one or more of those big moves. So you might start on a smaller base, but the big move will compensate for it. And so in trend following particularly, I'm a huge advocate of trading quite small position sizes. So you can spread yourself across many positions and allow yourself to capture those moves, those big outside positive.

Surprises if you like, or the huge mega trends that happen on the upside in the stock market every now and then, you can't get them or you have a very low probability of getting them if your portfolio is too concentrated. So you need a trend following system. You need to have back tested that system through thoroughly and built confidence in it so you can keep following it. And you need to diversify very broadly, hold many stocks in your portfolio in your trend following portfolio so that you've got a greater chance of capturing those moves. So that's what you need to be successful to successfully capture those big outsize moves in the market. And they do happen. And when they do, they're life changing. I mean, this view is just amazing. And tonight when the fireworks go off all up and down the beach here, it's going to be a lifelong memory. And you know, when you catch one of those big outsize moves, it also has a lifetime impact on your life. I've had trades that go from single digits like five, seven dollars a share to over $100 a share. And when you catch a move like that and you ride it the whole way, it's truly life changing. I mean, you can magnify your whole account many times over just from a single stock. I've had one trade that made enough money to almost pay off an entire house mortgage, if you can believe it, because it was positioned to capture some of these big outsized moves. So if that's what you want, if you want to improve your profitability, if you want to position yourself to profit from the big outsized moves in the market, then you need to get on board with the Trader Success System. So click the link below and register now for the Trader Success System. I'm going to post some videos from Malibu tonight when the fourth of July fireworks go off. I look forward to seeing you in the next video. Click the link below, register now for the Trader Success System. Because in the Trader Success System you get not only the training, the education you need to back test and build confidence in your trading system, you get the Expert's guide to backtesting, but you also get the systems. You get my trading system collection, which gives you some of the best trend following systems that I've developed In my last 15 years of profitable stock trading. And those systems are perfectly designed to capture the big outsize moves in the markets. But not only that, you also get the coding tools that you need. The code toolbox that I've developed, the Code Vault if you like, which has all of the templates and the coding snippets and the code library allows you to just copy and paste and back test your systems and your system ideas. Super easy copy and paste, brain dead simple. So the Trader Success System gives you everything you need, gives you the knowledge, gives you the systems, gives you the code vault to allow you to build that confidence and trade systematically, successfully. So again, my name is Adrian Reed. This is Enlightened Stock Trading. Click the link below, register now for the Trader Success System. I'm off to prepare for Fourth of July celebrations. If you're in the U.S. happy Fourth of July. Hope you have an awesome night and I look forward to seeing you in the next video. Click the link below, register for the Trader Success System today. Bye for now.