
Better System Trader 236: How to Profit and Protect in Any Market Conditions - with Tom Basso
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May 23, 2024 Tom Basso, a Market Wizard and $600 million fund manager, shares his strategies for profiting in any market conditions. Topics include extreme diversification, simple hedging strategies, using multiple indicators, common-sense trading decisions, and risk management. Learn how to protect your account in downturns while enjoying the ride!
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Maintain Awareness And Discipline
- Build awareness and discipline to follow your trading plan through wins and drawdowns.
- Recognize emotional states and return to your plan when greed or revenge trading appears.
Diversify Widely To Smooth Swings
- Extreme diversification across many markets smooths daily swings and reduces attention-grabbing portfolio moves.
- Holding dozens of positions prevents single names from creating large percentage swings in equity.
Automate Or Pare Strategies
- Automate many strategies only if you can run them efficiently; otherwise focus on the top performers.
- Rank and consolidate strategies to capture most gains with less complexity.
