The 9 Secrets to Becoming a Profitable Global Stock Trader

Did you know there are nine things that you've got to do, Nine secrets that you have to master if you want to become a successful, consistent and profitable global stock trader. In this video, I'm going to give you an overview of all nine. So you know exactly what you've got to do to take your trading to the next level. My name is Adrian Read. I'm the founder of Enlightened Stock Trading. Let's get right into it. Alright, so what are the secrets to becoming a consistently profitable global stock trader? Well, the first thing is we need to protect our capital. If we don't protect our capital, then then there's no point trading at all. We need to make sure that whatever we do, we stay in the game. If we can just stay in the game of trading, then long term we give ourselves a chance of winning. But if we don't protect our capital and we blow up our account, we're out of the game. We can't possibly win. The next thing we're going to do is systemize our decision making. If you've been trading for a while, you probably realize that your emotions get in the way. The, the gyrations of the market, the wins, the losses, your personal life, how you feel about the chart, your previous experience with this stock, whether you tripped over the cat this morning, all of these things come into your emotional state and emotions drive our decision making. Like it or not, we're humans. We all suffer from the same thing. So in order to be successful, in order to win long term, we need to systemize our decision making so we have absolutely objective trust trading decisions. We want objective rules that tell us when to buy and when to sell. If we don't have that, our emotions creep in. We end up making bad trading decisions when emotions are running high. The third thing we're going to do is diversify. Because no one strategy will make money in all market conditions. So we need a variety of different strategies in order to make money consistently. If we only have one strategy, we might make money sometimes. But a lot of the time we're going to be sitting in drawdown wondering what happened to all of our profits. So what happens if we protect our capital and we systemize our trading but we don't diversify properly? Well, if we don't diversify properly, we end up with limited growth. We might be protecting our capital, we might be making objective decisions on a consistent basis, but we're not going to make money all the time. If we systemize our decisions and we diversify our trading strategies, but we don't protect our capital enough, then we end up with inconsistent results and we blow up our account, which is an absolute disaster. And if we protect our account and we diversify but we don't systemize, trading ends up being very high stress and high effort, which is no good for anybody. Nobody wants a crappy lifestyle, staring at charts all day, every day. I certainly don't. I hope you don't either. So here's the thing. We need to avoid high stress and effort, limited growth and inconsistent blow up. So the way we do that is by making sure we protect, systemize and diversify. And if we do that properly, we get high reward, low effort trading, which is exactly what we want. Now how do we really achieve that? Inside protect, systemize, diversify. There's three things that we need to master. So in protect, we're going to really get a daily trading process down pat, consistently that we can follow day after day. If we have a consistent approach to the markets, we have a far better chance of making money long term. It's just like an airplane pilot. When a commercial pilot gets in a plane before he takes off, he has a checklist up front and he's going through every single step in the checklist to make sure he hasn't missed anything. Why does he do that? To keep everyone else on the plane safe. They've got to make sure they go through the process the same way every time. So it's repeatable, consistent and safe. Next thing we're going to do is manage our risk. If we, if we don't manage our risk appropriately on each individual trade at a trade level, also at a system level, also at a market level and the account level as a whole, then we end up with massive fluctuations in our account, we risk big drawdowns and we also risk blowing up our account. And then the third thing we're going to do inside protect is to eliminate mistakes. If we make too many trading mistakes, then what happens is our profits get eroded and our losses get bigger and, and we end up.

The mathematics of our trading strategy will end up falling apart because more larger losing trades, smaller winning trades, the expectancy will end up being negative and we'll lose money and end up behind. So let's protect. How do we systemize? Well, we need a couple of things. We need objective rules. Rules that tell us exactly when to get in and exactly when to get out of the market. If A and B and C is true, we buy. If D or E is true, we sell. Objective rules, take our emotions out of the game and allow us to make consistent decisions no matter what is going on. But objective rules alone are not enough. We need to have confidence, absolute confidence in those rules in order to make money long term. So how do we do that? We need to master back testing. We need to master back testing because that gives us the confidence to keep following the rules. Because if we know exactly what's likely to happen when we keep following those rules, then we don't get surprised. We don't get caught unaware, we don't get shocked when that happens in the real world. If we know that in the long run, 70% of our trades are losers, 30% of our trades are winners. But the winners are big, the losers are small, and the strategies likely have a drawdown of up to six or 12 months. And the drawdown is likely to be 20 to 25%. And that happens to us, it's okay. But if we don't know those things because we haven't back tested the strategy, then typically we freak out and lose confidence in the strategy and stop following it. And that is when traders end up falling behind. Because if you give up on a good strategy while it's in drawdown, you never make the money back. So you've got to have absolute confidence in your trading rules to make sure that you can keep following them no matter what's happening. The third thing we're going to do to systemize our account is monitor and improve. It's no good having a trading strategy and just letting it run with your eyes closed, going la la la, hoping that everybody, everything is going to be okay. You need to monitor that strategy. You need to monitor your trades, monitor your executions and make sure it all works smoothly. So that's systemized. How do you diversify? Three things are important in diversify. We need different strategies for different markets and different time frames. If we only trade one market and one strategy in one time frame, then you might make money sometimes. But a lot of the time you can end up in drawdown, your account going sideways, sitting in cash, all of these things. But, but if you will trade different strategies, markets, timeframes, you got a fighting chance of making money a much larger percentage of the time. So altogether this is the trader acceleration model. And I've got to give credit to this structure. This is the genius model structure from Simon Bowen. I've put my trading lens on it. Protect, systemize, diversify. Around the edge are the nine accelerators. We need a daily process. Manage risk, eliminate mistakes, objective rules, back testing, mastery, monitor, improve strategies, markets, time frames. If we will do all of this, then we have a fighting chance of becoming consistent, profitable and confident for decades. If you want to learn more about the nine secrets to becoming a consistent, profitable global stock trader, scan this QR code or click the link in the description below and download this free ebook. You'll also get a whole bunch of other great resources to help you on your trading journey. So scan the QR code or click the link in the description below and I'll see you on the other side. My name is Adrian Reid. This is Enlightened Stock Trading. I'll see you in the next video. Bye for now.