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Trade a System for Consistent Profitability
- By Mark Espy
- Published 11/16/2008
- Wealth Building
- Unrated
Mark Espy
Mark Espy (aka RobinHood Trader) is a full time trader and professional educator. Mark loves to help others master trading skills and is co-founder MarkeTamer. Learn more about how to improve your trading skills at and sign up for a free lesson at http://www.MarkeTamer.com
http://www.marketamer.com
One day as a teenager I saw an advertisement that read, "Challenge a chess grandmaster".
A Russian chess grandmaster who was visiting my city had claimed that he could play 20 people simultaneously and beat them all. I signed up for the challenge. While I had never played
seriously and had developed no particular playing strategy or system, I was quite familiar with the uses of the individual playing pieces and felt I knew how to exploit the strengths of each. I had been playing regularly with friends for the previous six months and felt that my skills were pretty well honed and that while I would not match the Russian, I could at least compete. To my surprise, within 30 minutes of the challenge starting, the chess grandmaster had already won multiple quick victories.
His history of studying chess strategy and specific offensive and defensive systems easily defeated our collective labored efforts. To each of our moves, he had a predetermined counter move which he employed, seemingly without thought. He always seemed to know ahead of time what he would do in each circumstance. While we each grew frustrated, he enjoyed the confidence that came from playing with a well-mastered strategy.
As a stock and options trader, I have come to realize a trading system can be just as valuable in ensuring consistent profits in the market as the chess grandmaster's strategy had been in enabling him to easily and effortlessly defeat me and others at the chess match. The challenge in trading, as in chess, is to understand how to integrate the knowledge we have into a trading strategy.
It is relatively easy to understand the separate components. As in chess where you can master the movements of the pawns, rooks, knights, and other pieces quite easily, developing a strategy that optimizes those moves and applies them appropriately in each situation, is the key to ensuring a consistently winning game.
One chess book I glanced through recently was hundreds of pages in length, but only a small fraction of those pages was spent outlining the concept of the game and the movement of the individual pieces. Similarly, learning trading instruments that will afford you the opportunity to profit in bullish, bearish, and stagnant markets is relatively straightforward and can be learned quite quickly and easily. The challenge is in learning to combine those instruments into an overall strategy that will provide consistently winning trades.
There are many investment training books and courses that explain how to use trading instruments and even when to use them. Few, however, take the next critical step of integrating the various disparate components into an investment system and strategy that works consistently. That is why so many investors continue to trade unprofitably, even after taking training courses.
Conversely, the training program at Stock and Options Training provides the knowledge and tools to be able to react effortlessly to any market condition. So when I purchase a stock only to see it move in the wrong direction, I'm able to employ a predetermined strategy and turn that potential loss into a winning trade.
I'm now able to profit in every market condition "up, down, sideways, volatile, flat" you name it. I know when to enter and when to exit the market. And if a stock moves against expectations, I'm able to adjust my strategy to minimize loss or maintain profit. No longer a challenger, reacting to the market, I'm now prepared for any event like the grandmaster. The grandmaster ended up winning 19 of his 20 matches that day. Just think of the profit potential with a 95% winning record!
A Russian chess grandmaster who was visiting my city had claimed that he could play 20 people simultaneously and beat them all. I signed up for the challenge. While I had never played
seriously and had developed no particular playing strategy or system, I was quite familiar with the uses of the individual playing pieces and felt I knew how to exploit the strengths of each. I had been playing regularly with friends for the previous six months and felt that my skills were pretty well honed and that while I would not match the Russian, I could at least compete. To my surprise, within 30 minutes of the challenge starting, the chess grandmaster had already won multiple quick victories.
His history of studying chess strategy and specific offensive and defensive systems easily defeated our collective labored efforts. To each of our moves, he had a predetermined counter move which he employed, seemingly without thought. He always seemed to know ahead of time what he would do in each circumstance. While we each grew frustrated, he enjoyed the confidence that came from playing with a well-mastered strategy.
As a stock and options trader, I have come to realize a trading system can be just as valuable in ensuring consistent profits in the market as the chess grandmaster's strategy had been in enabling him to easily and effortlessly defeat me and others at the chess match. The challenge in trading, as in chess, is to understand how to integrate the knowledge we have into a trading strategy.
It is relatively easy to understand the separate components. As in chess where you can master the movements of the pawns, rooks, knights, and other pieces quite easily, developing a strategy that optimizes those moves and applies them appropriately in each situation, is the key to ensuring a consistently winning game.
One chess book I glanced through recently was hundreds of pages in length, but only a small fraction of those pages was spent outlining the concept of the game and the movement of the individual pieces. Similarly, learning trading instruments that will afford you the opportunity to profit in bullish, bearish, and stagnant markets is relatively straightforward and can be learned quite quickly and easily. The challenge is in learning to combine those instruments into an overall strategy that will provide consistently winning trades.
There are many investment training books and courses that explain how to use trading instruments and even when to use them. Few, however, take the next critical step of integrating the various disparate components into an investment system and strategy that works consistently. That is why so many investors continue to trade unprofitably, even after taking training courses.
Conversely, the training program at Stock and Options Training provides the knowledge and tools to be able to react effortlessly to any market condition. So when I purchase a stock only to see it move in the wrong direction, I'm able to employ a predetermined strategy and turn that potential loss into a winning trade.
I'm now able to profit in every market condition "up, down, sideways, volatile, flat" you name it. I know when to enter and when to exit the market. And if a stock moves against expectations, I'm able to adjust my strategy to minimize loss or maintain profit. No longer a challenger, reacting to the market, I'm now prepared for any event like the grandmaster. The grandmaster ended up winning 19 of his 20 matches that day. Just think of the profit potential with a 95% winning record!
