Better System Trader

Gary Stone has been trading the markets since 1989.

He has spent 1000’s of hours researching the market, stocks and technical analysis criteria to understand what worked and what didn’t, using his mathematics and computer science skills to come up with a way for the computer to do the analysis and heavy lifting.

His work has been widely referenced and quoted over the years, has been a guest speaker and has been featured on TV, Radio and Print, including Sky News, ABC Radio, Your Trading Edge, Switzer Daily and the ASX.

In todays chat we discuss market timing, why it works, the impact it can have on strategy performance and simple methods you can test for yourself. We also discuss the misinformation published by some fund managers, how simple techniques can be used to outperform them, the importance of perspective and how it can improve your trading and one of the key components to executing your trading plan correctly.

Topics discussed

• The difference between amateur and professional traders
• One of the key components to executing your trading plan correctly
• Managed funds and the marketing information they publish
• Market timing, why it works and how to do it correctly
• The impact simple market timing techniques can have on strategy performance
• Tips to handling drawdown
• The importance of perspective and how it can improve your trading
• Simple techniques you can use to outperform the majority of fund managers
• The biggest lesson in trading
• Simple but effective market timing techniques you can start using today

Resources mentioned in this episode

• To learn more about Gary and his work, checkout his website Share Wealth Systems or his blog
• Books:

NOTE: You can get “Trading in the Zone” as a FREE audiobook here

• Other resources mentioned in the interview:
  • Thought Leadership Research – check fund manager returns
  • Marketing misinformation from the so-called investing professionals
  • Here is a list of the market timing techniques Gary mentions in the chat

Quotes

Top tips from this episode

• Time the market, not to ensure that you are in for the best days but to ensure that you are out for the worst days. Research has shown the best and worst days of the market are usually in close proximity to each other and if you end up missing both the best and the worst days your returns are far better than just being in the market all the time.
• “Big picture perspective helps me execute on a daily basis”. When trading through difficult times, keep big picture perspective in mind.
• 82% of funds underperformed the S&P500 total return index over a 10 year period so if you want to beat the majority of fund managers worldwide just invest in an index ETF and reinvest the dividends. So simple but of course you could do even better with some simple market timing techniques.

Transcript

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Episode Released:

24 May 2015