How to know if you’re suitable for system trading

michael martin martinkronicle

How to know if you’re suitable for system trading

If you believe the adage that “good trading is boring,” then system trading is boring to the nth degree.  There are days, sometimes weeks, that I don’t generate an ORDER, never mind a trade.

If you believe the adage that “good trading is boring,” then system trading is boring to the nth degree. 

There are days, sometimes weeks, that I don’t generate an ORDER, never mind a trade. Then there are times when there are so many orders, you have to write them all out first in a general ledger and number the tickets. 

On the flip side, system trading is also very peaceful because I’m able to scan thousands of instruments in less than a minute and not worry that I’m missing out of an opportunity. That is a mental advantage if nothing else.

Enter the Giveaway!

Enter our $1,052 Giveaway Contest – It’s Free

Great Trading Articles

How to add a new component to your trading system

Chart reading is not a trading system

Dealing with FOMO – the frustration of missing out

Subscribe to our Show

martinkronicle soundcloud

subscribe on itunes

When you focus on your process the results will follow

michael martin martinkronicle

When you focus on your process the results will follow

Focus on your process and stay out of the results – you’re powerless over them.  All you can do is control the “controlables” – that is, your behavior.  

Focus on your process and stay out of the results – you’re powerless over them. 

All you can do is control the “controlables” – that is, your behavior.

Enter the Giveaway!

Enter our $1,052 Giveaway Contest – It’s Free

Great Trading Articles

From chart reader to system trading

Trading systems do not remove emotion from trading

Three components of a trading system

Subscribe to our Show

martinkronicle soundcloud

subscribe on itunes

How spreads decrease risk and increase profits

michael martin martinkronicle

How spreads decrease risk and increase profits

Seasonal commodity spreads can be very a reliable type of trade for your portfolio. While commodities are surely not for everyone, commodity spreads are considered “hedged” because the trader is simultaneously long and short the same commodity but in different expiration months.  A great source of information on spreads is at Moore Research Center.

Seasonal commodity spreads can be very a reliable type of trade for your portfolio.

While commodities are surely not for everyone, commodity spreads are considered “hedged” because the trader is simultaneously long and short the same commodity but in different expiration months. 

A great source of information on spreads is at Moore Research Center.

You can get a 14-day free trial.

Disclosure: I am not compensated to endorse MRCI, but I consider Melissa and Jerry long-time friends of mine.

Enter the Giveaway!

Enter our $1,052 Giveaway Contest – It’s Free

Great Trading Articles

Why you need to learn about commodity seasonality and spreads

Minimize portfolio volatility without cutting positions

What every trader should know about trading option butterflies

Subscribe to our Show

martinkronicle soundcloud

subscribe on itunes

How to achieve your goals faster by staying on message

michael martin martinkronicle

How to achieve your goals faster by staying on message

Some investors will test you by asking you questions that are deliberately off the mark. Stick to you message throughout even if they try to knock you off balance.

Some investors will test you by asking you questions that are deliberately off the mark.

Stick to you message throughout even if they try to knock you off balance.

You might take a meeting as a CTA and someone interviewing you might say something along the lines of “We’re looking to allocate $10MM to a crypto-only portfolio in the next 5 days” when they know you’re looking for assets. 

It’s ok to laugh at them and say “good luck – I hope there is a short selling component to the model.”

Tell them that it’s “not terribly wise to make such an allocation on short notice.”

Most allocators want some fight in the dog. 

Stick to your message and what it is you can do and leave it at that.

Otherwise, you’ll look amateurish if you’re all over the place. 

Enter the Giveaway!

Enter our $1,052 Giveaway Contest – It’s Free

Great Trading Articles

Why you don’t want to skimp on marketing

What potential clients really want from you

How to stay on message

Subscribe to our Show

martinkronicle soundcloud

subscribe on itunes

What to do when the market opens below your stops

michael martin martinkronicle

What to do when the market opens below your stops

Every once in a while, the market will open below the point where you would have stopped out your long position or above where you would have covered your short position.  The best practice is to offset the position right away.

Every once in a while, the market will open below the point where you would have stopped out your long position or above where you would have covered your short position. 

The best practice is to offset the position right away. Bad situations become worse. 

Your first loss is your best loss. 

Aggravating as it might be, this has not happened enough to me to convince me to stop holding positions overnight or over the weekend. In fact, I’ll go so far to say that holding my positions for weeks is what I attribute the majority of my gains to. 

Enter the Giveaway!

Enter our $1,052 Giveaway Contest – It’s Free

Great Trading Articles

Why it’s smart to trade below your maximum risk

Why you should trade risky securities conservatively

Reduce invisible risk and reduce outsized losses

Subscribe to our Show

martinkronicle soundcloud

subscribe on itunes