STICK TO YOUR TRADING PLAN.
Written by: Robert and Russell Markham
For those of you following the market closely, you will have seen the Confirmed Up, C/Up, on the 19th of April! The last C/Up on the 23 February 2018 was short lived; however, the confirmed call prior entailed a significant run in the market with the confirmed signal taking place on 9 October 2017, holding right through until 12 February this year.
So, the question you may be asking yourself is: How do I take advantage of a rising market? I noted some quick strategies back on 12 January 2018 in the essay.
For today, I want to discuss the importance of sticking to your trading plan. Do you have a trading plan that tells you When to Buy, What to Buy, When to Sell, What to Sell, What Stop Losses to Set, How many stocks to pickup at a time? Or are you yet to formulate a trading plan? Or are you going to wait for the market to start running before you formulate your trading plan?
Often when the market turns, we see numerous new investors to the market wanting to jump in with very little strategy or appreciation for what they are doing. Often, they jump in too late. The pro investors on the other hand show very little emotion and continue with business per usual having been in the market long before the new entrants arrive. So how do the pros do it? The pros stick to a trading plan! This is where BackTester and Portfolio Genius will become your best money-making tools and turn you into a pro!
BackTester allows for us to setup exact trading rules and thereby eliminating emotion. It covers Market Timing, our most important factor. In addition, BackTester allows for us to set how much we wish to invest, how many stocks will be held at any time, how many stocks will be purchased at a time, when to replace any stocks, what risk money management to apply to each stock, etc. By BackTesting your strategies, you will have your trading plan formulated. Once you are happy with your BackTester settings, you can simply convert your BackTest into a portfolio (by selecting the Convert button in BackTester).
Please note, this feature is available for those who own AutoTimer.
If you don’t currently own AutoTimer and would like to try it, please CLICK HERE for a FREE 30- Day trial.
You can now follow your portfolio exactly and, in turn, stick to your trading plan feeling assured that you have done your homework. You have optimised your investing strategy and set the parameters you are comfortable with. All you now need to do is stick to your trading plan. This will ensure that you will not be the one running around with the fear of missing out as the market turns. Rather, you will be the professional, the one in control of your emotions. You will be the one waiting for the market to come to you, all setup, ready to go long before the market has changed direction.
To check out some of our trading plans, click on the Portfolios tab. Next, select any of the portfolios you are interested in on the left-hand side of the page. Having selected the portfolio you are after, click on the Details button (per the upper right of the screen) to see the exact settings. You can also click on the Portfolio Performance button (per the bottom left of the screen) to see how your given portfolio of interest had performed over time. These are great starting points from which to create your own portfolio or to simply follow one of our portfolios.
The 10 Stock Model Portfolio continues to power on hitting higher highs. A quick check to see where this portfolio was as of 2 January this year: 286.53%. As of 18 May 2018, the portfolio shows total returns at 348.45%.