Tom Basso is a Market Wizard with 5 decades of experience.
After taking 4 years to get to break-even, he eventually transformed himself into a $600 million fund manager.
How?
Here’s 7 tips that have contributed to his long-term success:
1. Maintain discipline
Balance yourself during equity highs and drawdowns.
Stick to the plan.
2. “Fill the Potholes”
Analyze your drawdowns.
What was going on then?
What caused those potholes?
How can you reduce them next time?
3. Diversify to smooth out your track record
Start out wherever you are.
Add layers of things that aren’t related.
Use a common-sense approach to diversification.
4. Profit from downturns
Use hedging to offset losses.
5. A simple hedging strategy
Only 3 indicators… Donchian, Bollinger, Keltner.
Preserves a portfolio when things get really bad.
Takes the hedge off quickly during recovery.
6. Combine indicators for better signals
Use 3 indicators to time the hedge.
The combination helps to capture the noise band versus the information.
The first indicator to trigger executes the hedge.
7. Understand your indicators
Traders must understand what the indicator is trying to do so they can trust it when it does it’s thing.
Use these techniques to protect and profit in any market conditions. Become an “All Weather Trader” and enjoy the ride!
Full Interview
Watch my full discussion with Tom:
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