Geopolitical Issues are Trending

Welcome to my weekly snapshot of information that I hope will help in your journey as a systematic, rules based, trader!

In todays issue:

  • Trading Quote
  • Trading Strategy Tips
  • Recommended Trading Books
  • Whats on our Watchlist
  • Trading Humour

Trading Quote 

"Throughout my financial Career I have continually witnessed examples of other people that I have known being ruined by a failure to respect risk. If you don't take a hard look at risk it will take you out." - Larry Hite

Larry Hite is another famous trader who was interviewed in Jack Schwager's Market Wizard book series. In that interview, Hite doesn’t talk much about his trading strategies, but mostly about risk. Hite’s approach is that as long as you take care of the risk, the profits will take care of themselves.

This philosophy is echoed in this quote. Successful traders such as Larry Hite do not focus on how much money they can make, they focus on how much money they can lose. Risk Management needs to be your main focus when developing your trading strategy.

Trading Strategy Quick Tips

  • Follow the Market Trend- Embrace the trend. Success in trading begins with understanding and following the market trend.
  • Trend Analysis Matters - Analyze the trend, but don't overcomplicate. Focus on key indicators and patterns to make informed decisions.
  • Stay Informed & Adapt - The market evolves. Stay informed and adapt to changing trends to maximize your trading potential.

For more trading strategy tips be sure to watch the FREE Preview of our flagship course How to Build a Systematic, Rules-Based, Trading Strategy.

Recommended Trading Books

The New Trading for a Living This book is a great introduction to trading. I would recommend that all new traders start here first. This classic guide emphasizes that risk management and discipline are the keys to successful trading. It provides a great overview of the keys to developing your own trading strategy.

What's on our Watchlist

Your Trading Strategy should include a daily scan to find the strongest trending markets.  Every day after the market closes as part of my trading strategy I scan my trading portfolio of approximately 50 markets to identify the ones that are showing strength and should be added to my watchlist. The strongest trending markets are highlighted in the table below.  How does this compare to the markets on your watchlist?

trending markets

As you can see from the table the downtrends are considerably stronger that the uptrends over the past month. As is typical in a bear market there are larger gains to be had by shorting markets rather than trading on the long side. The strongest markets all reflect the geopolitical issues in the Ukraine and the Middle East with Food, Precious Metals and Aerospace & Defense all showing limited strength.

Trading Humour


Please let me know what you think.  What did you find most useful? What would you want more or less of? If you find this information useful please share with fellow traders.
Trade Smarter....Trader Better!
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