Crashbusters

Feb. 16, 2022

Seth Godin is famous for saying, “There’s no such thing as writer’s block.”

He’s right.

For centuries, no one had ever heard of “writer’s block.” It didn’t exist until the 1940s when frustrated writers decided to make it up. And then everyone bought into the myth.

Godin says it was created by writers who wanted to hide, who wanted to come up with an excuse not to do the work.

No one gets plumber’s block. No one gets talking block. No one gets scrolling-on-your-phone block.

And, with the right mindset, no one gets writer’s block.

The cure is to do the work. We don’t sit around crossing our fingers, waiting for our muse to gift us with sweet inspiration. We just start writing.

It works every time.

And it’s exactly the same for trading.

Anyone who sits around crossing their fingers, waiting for their buy-the-dips strategy to work like it did before is headed for disaster when the crash hits the fan.

The trading muse isn’t coming for them.

But that’s perfectly okay.

We don’t need the trading gods to help us.

All we need to do is get in the market and trade a system. In other words, do the work.

Follow the trend and have a stoploss.

It works every time.

For system traders, crashes don’t exist.

You know what system traders call crashes? Highly profitable trading opportunities.

Remember our stop-and-reverse system from last week? It didn’t sit around worrying about a crash and hoping the trading deities will save its bacon. It had entry, an exit, and a stop.

A buy-the-dip trader would have lost over 50% in the Crash of 2008. At best. He would have most likely lost everything.

How did our simple S&R Forex system do?

It made over 100%:

Trading 1 lot on a hypothetical $20-$40k account would have made over $50,000 in 2008. Yes, it would have had some losses. But it made a boatload of money in the end.

Is there a crash coming?

It looks like it.

Is that a problem? Is that a cause for hand-wringing angst and indecision about what to do?

Definitely not. It’s actually good news.

For anyone who trades systems.

And in the next Newsletters, we’ll take a look at other systems on other instruments to see how they did during a crash.

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Disclaimer:
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results are not necessarily indicative of future results. Examples presented on these sites are for educational purposes only. These set-ups are not solicitations of any order to buy or sell. The authors, the publisher, and all affiliates assume no responsibility for your trading results. There is a high degree of risk in trading.

HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.