4.8 • 670 Ratings
🗓️ 8 March 2020
⏱️ 5 minutes
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Why do equity investors aim to be average? And how to aim for more.
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50 YEARS OF TREND FOLLOWING BOOK AND BEHIND-THE-SCENES VIDEO FOR ACCREDITED INVESTORS - CLICK HERE
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PLUS: Whenever you're ready... here are 3 ways I can help you in your investment Journey:
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0:00.0 | My main goal, the first thing I'm going to start out with is risk control, capital preservation. |
0:09.6 | And the best way to get that is, you know, obviously with a good system, with a stop loss and |
0:14.9 | training stops, but also with longs and shorts. I'm not really that concerned about the market in general when I'm |
0:24.7 | trading these individual names. It gives me so much diversification. And yeah, the market is probably |
0:29.4 | not as strong. In 2013, this basically same portfolio of stocks, I was probably long, 95% of them. |
0:37.7 | And, you know, the drawdown was hell. It was bad. And so I made a lot of stocks, I was probably long, 95% of them. And the drawdown was hell. |
0:39.1 | It was bad. |
0:40.1 | I made a lot of money, but also gave a lot back. |
0:42.7 | So I'm not going to just ipso facto say, oh, this is a bummer that the market in general |
0:50.2 | is not that strong because I can see underneath the hood and see, yeah, it's not that |
0:54.0 | strong because a lot of the stocks are not in a big up trend like the fangs. There's pros and cons. |
0:59.6 | And it's kind of funny that coming from non-system traders or trend traders, they're very interested |
1:05.3 | in the trends of all these markets. Why do you think that is? I mean, that's a interesting observation. |
1:14.5 | What do you think they want to achieve by, in a sense, questioning the rally because of lack of breath? |
1:25.1 | I mean... |
1:26.1 | I think they missed it. |
1:27.7 | Yeah. |
1:28.2 | Their system value or fundamental is not going to keep them in a trend when it looks stupid. |
1:35.2 | You know, the CTAs are the ones who are going to keep long in the stock market for no good reason other than it's going up. |
1:41.0 | As interest rates approach zero, we're the only ones are going to stay long, the |
1:45.6 | bonds and the interest rates, just because it's in an up trend. When crude goes from 90 to in the |
1:52.1 | 20s, you know, who would still stay short that? Who was expecting that? So this is one of the benefits |
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