Better System Trader

236: How to Profit and Protect in Any Market Conditions - with Tom Basso

57 snips
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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ADVICE

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.
INSIGHT

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.
ADVICE

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.
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