August 28, 2025 • 39 mins
Adrian Reid is a full-time private trader with 20+ years of experience based in Australia. He is also the Founder and Head Trading Coach at Enlightened Stock Trading, which focuses on educating and supporting traders on their journey to profitable systems trading. Following his successful adoption of systematic trading which generated him hundreds of thousands of dollars a year using just 30 minutes a day to manage his system trading workflow, Adrian made the easy decision to leave his professional work in the corporate world in 2012. Adrian trades long/short across US, Australian and international stock markets and the cryptocurrency markets. His trading systems have consistently outperformed international share markets with dramatically reduced risk over the past 20+ years.
Adrian focuses on building portfolios of profitable, stable and robust long term trading systems to beat market returns with high risk adjusted returns. Adrian teaches traders from all over the world how to get profitable, confident and consistent by trading systematically and backtesting their own trading systems. He helps profitable traders grow and smooth returns by implementing a portfolio of trading systems to make money from different markets and market conditions.
Adrian has presented for a range of trading conferences including the Australian Technical Analysts Association (ATAA) and The International Federation of Technical Analysts (IFTA) annual conferences. He contributes regularly to the Interactive Brokers Webinar Series, has written many articles for Your Trading Edge magazine and been interviewed on numerous podcasts including Better System Trader, The Interactive Brokers Podcast, Talking Trading, Desire To Trade and many others.
CONTACT DETAILS
Company: Enlightened Stock Trading
Email: adrian@enlightenedstocktrading.com
Website: https://enlightenedstocktrading.com
Remember to SUBSCRIBE so you don't miss "Information That You Can Use." Share Just Minding My Business with your family, friends, and colleagues. Engage with us by leaving a review or comment here or on my Google Business Page. https://g.page/r/CVKSq-IsFaY9EBM/review Your support keeps this podcast going and growing.
Visit Just Minding My Business Media™ LLC at https://jmmbmediallc.com/ to learn how we can support you in getting more visibility on your products and services.
Adrian focuses on building portfolios of profitable, stable and robust long term trading systems to beat market returns with high risk adjusted returns. Adrian teaches traders from all over the world how to get profitable, confident and consistent by trading systematically and backtesting their own trading systems. He helps profitable traders grow and smooth returns by implementing a portfolio of trading systems to make money from different markets and market conditions.
Adrian has presented for a range of trading conferences including the Australian Technical Analysts Association (ATAA) and The International Federation of Technical Analysts (IFTA) annual conferences. He contributes regularly to the Interactive Brokers Webinar Series, has written many articles for Your Trading Edge magazine and been interviewed on numerous podcasts including Better System Trader, The Interactive Brokers Podcast, Talking Trading, Desire To Trade and many others.
CONTACT DETAILS
Company: Enlightened Stock Trading
Email: adrian@enlightenedstocktrading.com
Website: https://enlightenedstocktrading.com
Remember to SUBSCRIBE so you don't miss "Information That You Can Use." Share Just Minding My Business with your family, friends, and colleagues. Engage with us by leaving a review or comment here or on my Google Business Page. https://g.page/r/CVKSq-IsFaY9EBM/review Your support keeps this podcast going and growing.
Visit Just Minding My Business Media™ LLC at https://jmmbmediallc.com/ to learn how we can support you in getting more visibility on your products and services.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
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Speaker 1 (01:58):
Welcome to Just Minding My Business Media, and today I
am honored to bring to you Adrian Reed, who is
a full time trader based in Australia and also the
founder and trading coach at Enlightened Stock Trading, which focuses
on educating and supporting traders on their journey to profitable
(02:23):
systems trading. Wow.
Speaker 2 (02:26):
Welcome, Welcome, Welcome.
Speaker 4 (02:27):
Adrian, Thanks so much for having me on the show.
Speaker 1 (02:31):
Absolutely wow. I am so honored to have you because
right now I'm working with a couple of my girlfriends
and we're trying to figure out what trading platform, not
necessarily platform, but what commodity we can we can begin
to trade and learn about.
Speaker 2 (02:53):
So question number.
Speaker 1 (02:55):
One stock traders investors, why do they lose money?
Speaker 2 (03:01):
And how to turn that around?
Speaker 1 (03:03):
Because that's the biggest fear of beginners, just losing money, yea.
Speaker 4 (03:08):
And the sad reality is it's it's not just a fear.
It's also the reality because most traders do lose money.
And there's a number of reasons that. The first one
is that humans are essentially emotional beasts, right, and you know,
we have fear, we have greed, and all sorts of
(03:31):
other emotions in between. And our challenge is that finances
and money brings out those emotions, right, So, you know,
we gain money all of a sudden, we want to
gain more. We lose money all of a sudden, we're
afraid we're going to lose more. And the financial world
and particularly the stock market, and you know the communities market,
(03:55):
you know, they move around a lot. You know, the
prices will trend, but they'll they'll losto late within that trend.
And you know, we feel those emotions, and when we
start making decisions based on those emotions, we almost always
do it at exactly the wrong time or make exactly
the wrong decision. So we're going to get past the
emotions in order to succeed. And the fastest way the
(04:20):
I don't want to say easiest, because none of it's easy.
It's a challenge, But the fastest way to get past
the emotions is to have objective rules that you put
in place that tell you when to buy and when
to sell, and that way you don't have all of
this going on in your head while trying to make
(04:40):
a profitable financial decision. So you know, the set of rules,
I'll call it a trading system. It's just a complete
set of rules tell you exactly when to get in,
exactly when to get out, how much to buy, how
much to sell. And when you have that the emotions,
you get past the emotions. Always easier to get past
the emotions because you're not trying to make a decision
(05:02):
in the midst of all that emotional noise. So that's
the first The first trick, right is have a set
of rules makes sense?
Speaker 2 (05:10):
Yes, yes, absolutely absolutely so.
Speaker 4 (05:16):
The second the second trick, and this is and i'll
stop here after this. The second trick is that most
traders don't know if their rules or approach are actually profitable.
And so we take, you know, in my world, I
take those rules that I've used to bypass my emotions,
and I'll test them on historical data to make sure
(05:37):
they actually worked. Yeah, So I'll back test those rules
over twenty or thirty years of market history and make
sure that in the past, they worked. Now the past
is not a gain. You know, the past doesn't represent
the future obviously, but if they didn't work in the past,
they're not going to work in the future, right, So
at least we know that, And then you know, there's
a number of ways we can test to give us
(05:57):
a greater certainty that they actually will work in the future,
to have rules, test them, make sure they work.
Speaker 2 (06:04):
Yes, And that was taken me to my next question.
Speaker 1 (06:08):
You know the quickest path to start training successfully and
you've already hit the most important ones.
Speaker 2 (06:15):
So is there anything else we need to know?
Speaker 4 (06:18):
Yeah, I would say, I mean, have that system and
learn to test it. You know, it's called back testing.
You know, there's a number of commercial software packages which
you can use to do that back testing. The next
thing is you've got to make sure you stay in
the game, right, so people will try and succeed by
making money fast. Actually it's more important to succeed by
(06:41):
staying the game, you know, because it doesn't matter how
much money you make this month. If you lose it
all next month, you've still got nothing. If you make
a huge amount of money this year, but you lose
it all next year, you've still got nothing right, and
we don't want to have to quit the game. We
want to stay in it so that we can build
our wealth. So staying the game means making sure that
(07:02):
you risk a very small amount of money on every trade.
It means making sure that you have an amount of
exposure to the market so that if something goes crazy,
you don't get wiped out. You know, we have to
stay in a game. That's our number one priority, because
if we don't, then we have to rebuild from zero,
and that's slow. Yes, And if you blow up your
(07:24):
account and you have to rebuild from zero, I can
tell you in ten to fifteen years time, you're going
to regret that because there's a huge opportunity cost in
losing an entire account and having to regrow from zero.
If you just grow slowly and conservatively over time, then
you don't have that opportunity cost, and your ultimate wealth,
(07:47):
you know, five ten years down the track or more,
is much much higher. So we've got to have rules,
we've got to test those rules. We've got to stay
in a game by having relatively or very low position size,
low risk per trade, so if we're wrong, it doesn't
matter much. And then low exposure so that there's very
little chance, if any chance, of it's actually blowing up
the account. Yes.
Speaker 1 (08:06):
Yes, And I think the very first thing you said
was that mindset piece. Do you support people with that,
because that's the biggest part to anything that you do.
Speaker 4 (08:19):
Yeah. Look, even though we're systematic and rules based and
numbers based, the mindset still plays a huge part of it.
And probably the biggest thing I think is confidence. And
so I provide you know, when I'm teaching traders, I
provide rules and systems for them to use. But without
(08:42):
the confidence in those rules, they're worthless. We're not worthless,
they're still extremely valuable, but the trader is not going
to make money out of them consistently because they're not
going to follow them because they don't have the confidence
in it. So it's not just about the rules and
the systems. It's also about building the confidence in the
individuals so the individual can follow them without breaking the rules,
(09:05):
bending the rules, ignoring the rules. Yeah, So how do
we do that? We do it with a extensive testing,
back testing process where if you follow this process, you
learn to understand the rules more deeply, you challenge the
rules and make sure that you know, they work in
(09:25):
different market conditions. You vary the rules and make sure
that they work in a variety of different markets and ways.
So by doing that sort of testing, you build that confidence,
which cements the mindset. And then even beyond that, you've
got the general mindset about self belief and you know,
(09:48):
money beliefs and so on, and those all come out
as well. And the great thing is, in the process
of trading, a lot of this junk comes up. You know,
a lot of your money beliefs will surface. And you know,
when I'm working with the traders that all surfaces. We
work through that, and then ultimately you end up more
clear and more confident in your ability to make money
(10:10):
and then therefore more profitable.
Speaker 1 (10:12):
Yes, yes, exactly, because that's so important in anything, is
how you what you think, what you believe, your belief systems,
because we believe what we believed.
Speaker 4 (10:27):
Yeah, and what we believe is absolutely true for us, right.
I actually was having this conversation with one of my
students last night who when it got to the point
of looking at the code of the system. You know,
I say, coding. You know, you've got to write your
rules into the software, and that requires a little bit
of coding, which is technical. It's not super hard, complex,
complex stuff. But some people naturally like that. Some people
(10:50):
naturally are afraid of that. And you know, he said,
I don't know how to code. I know, I realized
most people don't don't know how to code. But when
you hold on to that belief, oh, I don't know
how to do that, I can't do that, because he
was more saying I can't do that, as opposed to
I don't know how to do that yet. Right, they're
(11:11):
two very different beliefs. I can't I don't know how
to do it yet. Yeah, my my belief I believe
in my ability to figure things out. Right in general,
for pretty much anything, I believe I can figure it out.
And that's a very empowering belief. But some you know,
if you have the belief of oh, I can't do
that whatever that is, trading coding money, then you can't
(11:36):
and you don't.
Speaker 1 (11:37):
Absolutely I have a Bible step from my dictionary. I
can't stand that where it can be automatically put yourself
in failure, yes, as I can.
Speaker 2 (11:54):
Wow.
Speaker 1 (11:55):
So your trading program is it talk a little bit
about what that looks like.
Speaker 4 (12:03):
So we understand you're talking about the systems or against
the process the system. Okay, so there's there's a number
of different styles of systems or trading strategies that exists
that work. There's a so the generic styles, let's call
it trend following mean reversion, momentum, and seasonality. Okay, so
(12:28):
I'll just touch on each of those so you know
kind of what they are. Trend following is where you
buy something that's going up with the expectation that'll keep
going up so you can make money, and you hold
it until it starts going down, so you get out
at the end of the trend. I mean, if you
think about you get a tennis ball, you throw the
tennis ball across the room. It doesn't just hit the
(12:48):
floor and turn around and come back the other way.
It kind of keeps going in the same direction until
it hits something and comes back right. It hits an
obstacle or a barrier, or something changes in its environment.
Stock or a commodity is kind of similar. It'll tend
to trend until the financial conditions change, the economic conditions change,
(13:09):
it's business, it's competitive environment changes, and then it'll turn
around and start trending. The other way we can make
money from that trend just by finding stocks that are
going up, buying them and holding them until they start
going down. Trend following. The second strategy or trading strategy
is mean version. Men reversion is where financial instruments tend
(13:31):
to overreact and bounce back. So if you think something
is going up, the stock is going up, and there's
some bad news, what happens. People panic, They hit sell,
stock price goes down. But when people panic, do they
overact or underreact? Typically they overreact, right, So the stock
(13:51):
price goes down too far on bad news and will
tend to bounce back either a little bit or a lot.
And so we can profit from that because if the
stock is going up, there's some bad news, it it
falls rapidly. We buy in the heat of the panic
and sell once it recovers just a little bit. That's
(14:12):
a very reliable or can be a very reliable way
of making money, particularly on the indices, because humans systematically overreact. Yes,
so we can buy and that we can buy in
that in that overreaction. It takes courage because everyone's panicking
right and doing to buy and put ourselves at financial
(14:32):
risk when everyone's panicking feels unnatural. That's why you need
a system to tell you exactly when, because it makes
that much easier to do so. Trend following mean reversion
momentum or rotational momentum is where you keep you buy
the strongest stocks. When they're no longer the strongest stocks,
you sell them, and then you rebuy the strongest stocks.
(14:53):
So you're always kind of buying into the stocks that
are going the best. And that's neat because you always
get to hold the biggest names that everyone's talking about.
But it's even more neat because it actually makes money,
so that's cool. And then the fourth and final one
is seasonality. There's certain seasonal trends that tend to recur
in the markets, so I mean the most one of
(15:14):
the most famous ones is probably the Santa Claus rally.
Stocks tend to rally through Christmas and just out the
other side of Christmas. There's others like different time of
the month effects. Stocks tend to rally towards the end
of the month. There's holiday effects. You know, going into
a public holiday, you know, stocks will tend to rally
(15:34):
through all public holiday. So things like that are occurring patterns.
You can create some rules around. So four generic strategies
that can create specific rules around that tend to work
over time. Trend following out of all of those is
probably my favorite. I've certainly made the most money from that.
But are a rotational momentum also very very robust strategy.
You've just got to have the confidence and keep following it.
Speaker 2 (15:58):
Yeah.
Speaker 1 (15:58):
So does this supply to no matter what you're trading in,
type of stocks, commodity that you're trading.
Speaker 4 (16:06):
Yeah, the generic generics also, the generic strategies do. The
precise rules are different. So, for example, you could imagine
that the people and the companies that make up the
the US stock markets like the NASDAQ might be and
the rules that they trade by might be different to
(16:27):
the rules that and the people that trade in Hong Kong,
you know, the exchanges have slightly might have slightly different rules.
The market constituents are slightly different, the kind of personality
and economic conditions are different. Therefore the precise nature of
price movements are different. So if I have a strategy
(16:48):
or system for the US market and I apply it
to the Hong Kong market, it might not work that great, okay,
but it can probably be tuned to the different personalities
of each market. Yeah, so I have one strategy of
trend following strategy. It works in Australia, it works in
Hong Kong, it works in the US, and it works
(17:09):
on many other markets. But to optimize it or to
find tune for those markets, you can improve the performance
quite a bit if you make it specific to each market.
Does that makes sense?
Speaker 2 (17:22):
It does? It does. Wow, you make this sound so easy.
Speaker 1 (17:26):
When I'm sitting trying to read and understand, it's like
it doesn't click. That's why you need a human to
basically talk you through but everything, because trying to do
it on your own is just not the same.
Speaker 4 (17:44):
And it's really challenging to do it on your own
because there's so much noise. I mean, I've got only
a very small portion of the books that I've read
to learn trading over my shoulder here, but there are
so many different approaches and much conflicting information. You know,
you should do this, you should never do that, hang on,
(18:04):
this person says I should this person says I should never,
or this is the best way. No, that's the best way,
or you know, by when this happens or by when
that like how do we know which is right? And
you know, one of the challenges is is getting a
mentoring or getting a learning environment that is internally consistent.
(18:26):
You know, you've got a full story, start to finish,
a bit of how to do it and how to
make it work. And you know, when you try and
learn on your own, you're getting a little bit from here,
a little bit from there, and you've sort of you've
got to assemble it all somehow translate and make it
a line so that you can make money. And it's
really tough. That's why it takes traders three to five
years to figure it out and make it make it
(18:46):
work if you do it on your own. But you know,
when I'm when I'm working with a new trader, who's
the right sort of person, you're an analytical sort of person,
we can do that journey in a couple of months
because it's all internally con and you don't have all
of that noise. You know, that's and.
Speaker 1 (19:04):
That's what I'm feeling right now, noise because one person
is talking. Now, some stuff is simular, but some stuff
is not. So it's like, okay, well which one is it?
Speaker 4 (19:21):
Yeah? And look, I think there's some good. There's some
solid generic principles that are probably indisputable, you know, very
small risk portrayed no matter how you trade, because you're
going to be wrong a lot. You know, this is
not this is not an environment where you get to
have ninety eight percent success like win rate, because the
(19:44):
markets are just too they're just too volatile, too difficult.
So you're going to be wrong many times, and many
times in a row potentially. So you've got to make
sure that when you are wrong, you don't lose too
much money because you're going to have a loss, a loss,
a loss. Your account is going to be going down
if you have five or ten losses in a row.
That wouldn't be surprising. You know. One time, early in
(20:04):
my trading career, I had twenty seven losing trades in
a row. Wow, And look, I was doing a number
of things wrong at the time, but I was following
this strategy that actually made money. It actually worked, and
I did make money from that strategy. But I didn't
realize at the time it was going to have twenty
seven losing trades in a row. Because my exits were
too tight. I was trying to get out as soon
(20:26):
as the stock went down just a little bit, and
so I ended up taking a lot of small losses.
And if you risk too much on each trade, you
lose too many too big a portion of your account
on each loss, and you have a lot of losses
in a row, all of a sudden you're in a
big hole and it's very hard to recover. So small
risk per trade is probably one indisputable piece of guidance
(20:50):
that will keep you alive. Don't use leverage, or don't
use a lot of leverage, particularly at the beginning of
your journey, is another bit of guidance. I think that's probably,
you know, relevant for almost everyone. Leverage blows up more
traders than almost anything, because as soon as if you're
(21:10):
highly leveraged trying to make what's the money fast, as
soon as the market goes heavily against you, you're out.
You know, you lose it all.
Speaker 1 (21:18):
Yes, And that's one of the things you know, I'm
talking with my friend about.
Speaker 2 (21:23):
Is it's a slow walk.
Speaker 1 (21:26):
Yes, it's not where it's not a get rich quick
kind of thing.
Speaker 2 (21:33):
You've got to be in You've got to be in
it for the long pole. Mm.
Speaker 4 (21:38):
Yeah, there's there's a lot of there's a lot of volatility,
a lot of setbacks that you're going to have in
your in your trading journey. And you imagine, can you
imagine thinking, oh, I'm going to be a brain surgeon,
and let me just I'm just going to go practice
some brain surgery so that I can figure out how
(21:59):
to do brain surgery, and now I can become rich
doing a brain surgeon. Who've been doing being a brain surgeon.
It's like, no one said that ever, right, No one
thinks that now. However, people do think, ah, I'm going
to be a trader. I'm going to go try it.
I'm going to go play around and be a trader.
(22:21):
I'll practice trading so I can get rich trading, said
just about everyone who ever started trading. For some reason.
We think, oh, it's it's easy, but the fact is
it's not. It's a big competition and there's a lot
of smart people who have got a lot of years
of experience, and when you're new, you don't have that experience.
(22:42):
It's a tough competition. You can win it, but it's
not an easy, get rich quick sort of sort of deal.
You know, you've got to learn, and you know there's
a lot of lessons and it's not intuitive. It's different
to everything else that you've done.
Speaker 2 (23:00):
And I believe that.
Speaker 1 (23:01):
I mean and being just going through this thing called life.
Nothing is easy and nothing is typically quick.
Speaker 4 (23:14):
It's look, I think we here's the thing, you know,
Tony Robbins says, we overestimate what we can achieve in
a year. We underestimate what we can achieve in ten.
And that's absolutely true in trading. And people think, oh,
you know, I'm going to start trading and replace my income.
I'm going to quit my job next month. It's like,
(23:36):
absolutely not gonna happen. It's not gonna happen because there's
a lot to learn. You've got to build your capital.
That takes time. But over ten years, you would be
amazed what you can achieve if you don't blow up,
if you have rules that are good and profitable and
(23:58):
you follow them, if you don't really too much. You know,
if you do all of these things, you know, ten
twenty years time, you can be in a pretty amazing
situation with very low ongoing effort. Because once you've learned
the lessons, the implementation of those lessons need it doesn't
have to take a lot of time. Because you're following
(24:21):
rules a system, and that is typically pretty quick. So
the funny reality about this is what people expect at
the beginning, quick easy money is what it's more what
it feels like down the track. But it's not like
that at the beginning. Like for me, Now, once I've
(24:42):
got a system that I'm confident in, I can execute
it and it takes a couple of minutes a day.
It's easy, but only because I did the work, only
because I understand the system, only because I've built confidence
in it, only because I've dealt with the emotions. So
at the beginning you don't have that. Now it's hard,
but later on it's easy. It's very strange.
Speaker 1 (25:04):
Yeah, and that's how it works. Yes, that's exactly how
it works. So if people want to work with.
Speaker 2 (25:10):
You, how do they do so?
Speaker 4 (25:12):
Look, the best way the business is in Enlightened stock Trading.
It's my trading education business, and in Enlightened stock Trading
we take people from beginner all the way through to
advanced of using systematic a systematic trading approach. If you
want to learn about this, go to Enlightened stock Trading
dot com, forward slash free and I have a free
(25:34):
couple of free courses to free ebooks and some cheat
sheets to kind of help you get started. And if
you love that and if you really want to learn more,
then we'll be in touch automatically because you've you've you've
registered for that free stuff, and I think that's a
solid place to get started. It'll tee even if we
never work together. It'll give the listeners some core skills,
(25:56):
some lessons which will help them stain in the game longer,
avoid blowing up. And so that's I'd say that's the
best way.
Speaker 2 (26:03):
Yes, Yes, And you also have a podcast.
Speaker 4 (26:08):
Have well, I have a YouTube channel. I don't I
don't interview others, but I've been on many podcasts myself,
and I do regularly present on on other trading education platforms.
So you know, if you google Adrian and Enlightened stock Trading,
there's there's plenty of material out there. And you know,
my YouTube videos I talk a lot about, you know,
(26:28):
the mindset stuff. I talk a lot about the different
systems and strategies and how to test them. So there's
there's a lot of material. If you like what you're hearing,
you know, just start diving into the systematic trading world,
and you know, you learn some things that will keep
you in the game longer and help you succeed.
Speaker 2 (26:45):
Yeah, and you definitely have to have a system. I mean,
I mean everything you need assist It's.
Speaker 4 (26:52):
True, isn't it really When you think about we just
don't know we have them because they're they're kind of habits.
Speaker 2 (26:58):
Yeah, we don't think about it that way. But I mean,
down to cooking a meal, it's.
Speaker 4 (27:06):
A system, it is. And what happens if you don't
follow the recipe. Oh, I don't like to put more salt. Right,
it might be good, but it might be horrible. Absolutely,
I'm gonna buy more tesla. It might be good, it
might be horrible.
Speaker 2 (27:23):
You're true, Yeah, yes, for sure, for sure. Wow, I'd
like this.
Speaker 1 (27:30):
Now, let me ask you about AI and trading, because
now the big thing is AI gives you the signals
and blah and you know the rest.
Speaker 4 (27:45):
So look, if it sounds like easy money, get rich quick,
retire next week, it's probably not real. As a general
principle for anything in the financial world. AI is going
to be is and is going to be a hugely
powerful tool for trading. And there's no doubt you can
(28:08):
use it to help improve your trading. It's not the
first thing that you need to learn. I suspect, you know,
the first thing we've already talked about. Some of the
first things that you need to learn is how to
control your risk. You know, how to have a system
that bypasses your emotions and gets you into the market,
(28:30):
out of the market at the right times, controlling your leverage.
Those sorts of things, they're the first things that you
want to learn. How can AI help? Couple of ways.
I've had many, many conversations with various ais about trading.
You know, to get system ideas to test, to get
ideas to improve a strategy that I'm using. It's very
(28:54):
good for that. There are more and more AI platforms
where it's generating the single for you. This is going
to become a very big thing. I believe that that's
going to be helpful. I don't believe it's a magic bullet,
because I don't think there's any magic bullet. So, like anything,
(29:16):
if you have a system of software and you put
garbage in, what do you get out? Garbage? Yeah, so
garbage in garbage outholds true. So when you're working with
these AI platforms, you need to know what you're doing
so that you give it sensible inputs, so it gives
(29:37):
you sensible outputs. And if if you don't, if you're
just buying it off the shelf and you're training it blind,
you know, just just blindly following its rules, hoping that
it's going to make your money. Look, it might work,
but you know, you've got no basis for that belief,
(29:58):
And so soon if you're making money, you're gonna feel fine.
It's like, oh, this is great, you know, making money,
making money, making money. But what happens when it goes
into drawdown, which it will because there is no such
thing as making money in a straight line forever in
the financial markets. As soon as it goes into drawdown,
If you don't have that confidence in the strategy, what
happens up here? You start to second guess the signals
(30:23):
and you're probably gonna pull a pin or do something
silly at exactly the wrong moment, right, And I think
we so we need to understand a bit more deeply
what it's doing and have confidence in that so we
can follow it. Yes, So a newbie coming in and
jumping straight into an AI platform, going yeah, I'm a trader.
(30:44):
You're kind of blindly following a computer that thinks it
knows what it's doing, and you don't know if it
knows what it's doing or not. It might work out
well or it might not. I'm not sure.
Speaker 1 (30:56):
True, true, So you need to know before you start
medal them around with a period.
Speaker 4 (31:02):
Would look I would say, yes, I think it's It's
not the place I would start. You know, get some
fundamental some no, get some basic training first, right, and
then go use to learn to use the advanced machinery.
Speaker 2 (31:15):
Okay, now, what's your your.
Speaker 1 (31:19):
Training platform? How often do you meet with the students.
Speaker 4 (31:25):
So, students in my mentoring program, we have four live
sessions each week. They don't have to come to every session,
and basically we encourage a session a week just to
keep in touch and deal with the questions because as
you go on this journey, there's a lot of questions.
No matter how great the training is. And now training
is pretty solid, we've been doing it for a long time,
(31:47):
students always have questions and they need someone to bounce
those off and share their analysis and check check that
they're doing it right. So, you know, we have four
live sessions week. We have constant forum access, so ask
questions and get answers and believe it or not, we
also have an AI clone of me. So I've trained
(32:09):
an AI with over eight hundred hours of my video
of teaching, trading, everything I've ever written, and thousands of
Q and A. I've trained the AI so that you
can ask A questions. It gives you answers back as
me in my not not my voice is in in
an auditory way, but my voice is in how I
would respond. And that is just such a cool use
(32:33):
of AI because it allows people to get access to
me instantly, no matter what time of the day. It is,
no matter where I am and what I'm doing. So wow, Yeah,
they get the momentary students get a lot of access
and a lot of support because there's a lot to
learn and you know you can do that quickly as
long as you've got that support. Yeah.
Speaker 1 (32:53):
Some people study different times, Like I'm a type of
person I m I study like four am in the morning.
My mind is a whole lot more fresher, and you know,
I absorb better, So I like that.
Speaker 4 (33:07):
Yeah, and way helping students all over the world as well,
which which can be you know, a challenge. If you're
you're it's it's it's midnight my time, but it's lunchtime
your time. You know that you want help, right, So
I've got my coaches spread around the world. But also
the the II and the forum allows you to keep
getting access, keep getting supported the matter. You know where
you are in no matter what time.
Speaker 1 (33:28):
Yes, and I like your approach, you know, because this
is you know, it's systems and I'm being in the
IT field for over fifty years, I'm wired with systems.
That's how I think. There has to be a system
for everything that I did, down to the smallest thing.
(33:52):
And I'm real probably aintal about that, you know, but
I can't help it because of the path that I've
been on.
Speaker 4 (34:00):
Yeah, and not everyone has that advantage when they come
into the markets. But putting some structure around it, putting
a process around it, making it repeatable so you're not
kind of all over the place. You know, A repeatable
process is a process you can test and validate and
improve over time. But if you don't have that process,
it's pretty hard to know what you did right and
(34:21):
what you did wrong and how to improve it.
Speaker 1 (34:23):
Yes, you're absolutely right, because I always say, perfection.
Speaker 2 (34:29):
That's another thing to.
Speaker 1 (34:30):
Me that needs to go out the dictionary, because you
can't measure perfection. You can only measure excellence. But all
the different things that you've done over time.
Speaker 4 (34:46):
Yeah, I think that's I think that's right. It's very
pertinent to trading as well, because someone who wants to
get everything right and before pulling the trigger is someone
who never pulls the trigger. Absolutely, there's a lot of
uncertainty in the financial world and we have to come
to accept that. And so I have a you know,
(35:09):
I have many systems, right, trading systems, as we've talked about,
and I know if I follow those systems over time,
they will make money. But for each individual trade, I
don't know what the outcome is going to be. I've
got a kind of range of expected outcomes. But there's
no perfect trade. At least, you can't pick it in advance.
(35:33):
Later on, after the trade is finished and go, wow,
that was a great trade. But you have no idea
going into it which one is going to be the
big winner and which one is going to be a dud.
You have no idea. And so therefore, for if you
have those perfectionist tendencies, it's really tough mentally because you've
got to accept so much uncertainty, and perfection is an uncertainty.
(35:55):
They kind of don't really play well together.
Speaker 1 (35:57):
No, it doesn't and with anything for that matter, because
if you wait it, you have to do it, you
can't read it. Were found doing it correct, absolutely right,
and to get to that place of excellence where it
becomes easy, it's all about action.
Speaker 2 (36:20):
Action is what creates the excellence.
Speaker 4 (36:24):
Yeah, there's a really good lesson as well which many
students have to learn, which is before you get into
the market, before you're doing it. You can look at
it theoretically say okay, yeah, I understand, I get it.
I know what I'm going to do. I'm going to
buy here, I'm going to sell there. I've tested it,
(36:45):
I know that works. I have confidence in it. But
that's all theoretical until you actually do it. Yes, and
then you do it, and what happens? All this emotion
comes up? What and then you start sackings and you realize, oh,
actually I didn't I've never I didn't think of that,
and I haven't thought of that before? And how do
I do this? And what's that I didn't I didn't
(37:06):
notice this thing before, and like all of this comes
up because you're doing it, yes, which is great, And
that's the point. I love when people actually get into
the market and then they have all this different set
of questions and challenges. So okay, then we deal with those.
But those people who are sitting on the sidelines perfecting
everything in a theoretical way, they never get to that
(37:29):
point where the real questions come up, right, And so
we've got to get in the game. But the trick
is when you get in the game, you've got to
do it safely because most people go, oh, I'm going
to be a trader, and they get in the game
like big all their money. It's like whoa, no, No.
When you get in the game, you want to do
(37:50):
it in a small, safe way because all these things
are still going to come up. Then you can learn
them and deal with them, and then you can scale
up over time and then you can survive. That's the key.
Slow walk, Yes, slow war, I really like that. I
might steal that. Yeah, borrow it.
Speaker 1 (38:09):
You, Drian. This has been great. I've learned so much
from you. I can't wait to get over to your website.
So can you let us know one more time with
that website is so we can get all those goodies
you got over there.
Speaker 4 (38:22):
Absolutely, if you go to Enlightened Stoptrading dot Com Forward
slash Free, opt in there, you'll get a couple of
ebooks which will really help you survive and grow as
a trader. Two free courses and there's four cheat sheets
for different aspects of trading. Really to help you get
in the markets in a safe way, survive long enough
(38:43):
to learn and actually become a trader. Love to help
you Enlightened Stop Trading dot Com Forward slash Free.
Speaker 2 (38:49):
Absolutely, thank you so much.
Speaker 1 (38:51):
This has been wonderful and I know you got up
pretty early to be with us today, so thank you
so much for that. And audience thank you as well,
and we will definitely have this conversation again.
Speaker 4 (39:04):
Adrians, thanks so much for having me on the show.
Really really enjoyed myself.
Speaker 1 (39:08):
Absolutely, Thank you to our guests and you our values audience.
Speaker 2 (39:17):
Let's stop you by. We truly appreciate you. Many blessings
to you and yours
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Speaker 1 (01:58):
Welcome to Just Minding My Business Media, and today I
am honored to bring to you Adrian Reed, who is
a full time trader based in Australia and also the
founder and trading coach at Enlightened Stock Trading, which focuses
on educating and supporting traders on their journey to profitable
(02:23):
systems trading. Wow.
Speaker 2 (02:26):
Welcome, Welcome, Welcome.
Speaker 4 (02:27):
Adrian, Thanks so much for having me on the show.
Speaker 1 (02:31):
Absolutely wow. I am so honored to have you because
right now I'm working with a couple of my girlfriends
and we're trying to figure out what trading platform, not
necessarily platform, but what commodity we can we can begin
to trade and learn about.
Speaker 2 (02:53):
So question number.
Speaker 1 (02:55):
One stock traders investors, why do they lose money?
Speaker 2 (03:01):
And how to turn that around?
Speaker 1 (03:03):
Because that's the biggest fear of beginners, just losing money, yea.
Speaker 4 (03:08):
And the sad reality is it's it's not just a fear.
It's also the reality because most traders do lose money.
And there's a number of reasons that. The first one
is that humans are essentially emotional beasts, right, and you know,
we have fear, we have greed, and all sorts of
(03:31):
other emotions in between. And our challenge is that finances
and money brings out those emotions, right, So, you know,
we gain money all of a sudden, we want to
gain more. We lose money all of a sudden, we're
afraid we're going to lose more. And the financial world
and particularly the stock market, and you know the communities market,
(03:55):
you know, they move around a lot. You know, the
prices will trend, but they'll they'll losto late within that trend.
And you know, we feel those emotions, and when we
start making decisions based on those emotions, we almost always
do it at exactly the wrong time or make exactly
the wrong decision. So we're going to get past the
emotions in order to succeed. And the fastest way the
(04:20):
I don't want to say easiest, because none of it's easy.
It's a challenge, But the fastest way to get past
the emotions is to have objective rules that you put
in place that tell you when to buy and when
to sell, and that way you don't have all of
this going on in your head while trying to make
(04:40):
a profitable financial decision. So you know, the set of rules,
I'll call it a trading system. It's just a complete
set of rules tell you exactly when to get in,
exactly when to get out, how much to buy, how
much to sell. And when you have that the emotions,
you get past the emotions. Always easier to get past
the emotions because you're not trying to make a decision
(05:02):
in the midst of all that emotional noise. So that's
the first The first trick, right is have a set
of rules makes sense?
Speaker 2 (05:10):
Yes, yes, absolutely absolutely so.
Speaker 4 (05:16):
The second the second trick, and this is and i'll
stop here after this. The second trick is that most
traders don't know if their rules or approach are actually profitable.
And so we take, you know, in my world, I
take those rules that I've used to bypass my emotions,
and I'll test them on historical data to make sure
(05:37):
they actually worked. Yeah, So I'll back test those rules
over twenty or thirty years of market history and make
sure that in the past, they worked. Now the past
is not a gain. You know, the past doesn't represent
the future obviously, but if they didn't work in the past,
they're not going to work in the future, right, So
at least we know that, And then you know, there's
a number of ways we can test to give us
(05:57):
a greater certainty that they actually will work in the future,
to have rules, test them, make sure they work.
Speaker 2 (06:04):
Yes, And that was taken me to my next question.
Speaker 1 (06:08):
You know the quickest path to start training successfully and
you've already hit the most important ones.
Speaker 2 (06:15):
So is there anything else we need to know?
Speaker 4 (06:18):
Yeah, I would say, I mean, have that system and
learn to test it. You know, it's called back testing.
You know, there's a number of commercial software packages which
you can use to do that back testing. The next
thing is you've got to make sure you stay in
the game, right, so people will try and succeed by
making money fast. Actually it's more important to succeed by
(06:41):
staying the game, you know, because it doesn't matter how
much money you make this month. If you lose it
all next month, you've still got nothing. If you make
a huge amount of money this year, but you lose
it all next year, you've still got nothing right, and
we don't want to have to quit the game. We
want to stay in it so that we can build
our wealth. So staying the game means making sure that
(07:02):
you risk a very small amount of money on every trade.
It means making sure that you have an amount of
exposure to the market so that if something goes crazy,
you don't get wiped out. You know, we have to
stay in a game. That's our number one priority, because
if we don't, then we have to rebuild from zero,
and that's slow. Yes, And if you blow up your
(07:24):
account and you have to rebuild from zero, I can
tell you in ten to fifteen years time, you're going
to regret that because there's a huge opportunity cost in
losing an entire account and having to regrow from zero.
If you just grow slowly and conservatively over time, then
you don't have that opportunity cost, and your ultimate wealth,
(07:47):
you know, five ten years down the track or more,
is much much higher. So we've got to have rules,
we've got to test those rules. We've got to stay
in a game by having relatively or very low position size,
low risk per trade, so if we're wrong, it doesn't
matter much. And then low exposure so that there's very
little chance, if any chance, of it's actually blowing up
the account. Yes.
Speaker 1 (08:06):
Yes, And I think the very first thing you said
was that mindset piece. Do you support people with that,
because that's the biggest part to anything that you do.
Speaker 4 (08:19):
Yeah. Look, even though we're systematic and rules based and
numbers based, the mindset still plays a huge part of it.
And probably the biggest thing I think is confidence. And
so I provide you know, when I'm teaching traders, I
provide rules and systems for them to use. But without
(08:42):
the confidence in those rules, they're worthless. We're not worthless,
they're still extremely valuable, but the trader is not going
to make money out of them consistently because they're not
going to follow them because they don't have the confidence
in it. So it's not just about the rules and
the systems. It's also about building the confidence in the
individuals so the individual can follow them without breaking the rules,
(09:05):
bending the rules, ignoring the rules. Yeah, So how do
we do that? We do it with a extensive testing,
back testing process where if you follow this process, you
learn to understand the rules more deeply, you challenge the
rules and make sure that you know, they work in
(09:25):
different market conditions. You vary the rules and make sure
that they work in a variety of different markets and ways.
So by doing that sort of testing, you build that confidence,
which cements the mindset. And then even beyond that, you've
got the general mindset about self belief and you know,
(09:48):
money beliefs and so on, and those all come out
as well. And the great thing is, in the process
of trading, a lot of this junk comes up. You know,
a lot of your money beliefs will surface. And you know,
when I'm working with the traders that all surfaces. We
work through that, and then ultimately you end up more
clear and more confident in your ability to make money
(10:10):
and then therefore more profitable.
Speaker 1 (10:12):
Yes, yes, exactly, because that's so important in anything, is
how you what you think, what you believe, your belief systems,
because we believe what we believed.
Speaker 4 (10:27):
Yeah, and what we believe is absolutely true for us, right.
I actually was having this conversation with one of my
students last night who when it got to the point
of looking at the code of the system. You know,
I say, coding. You know, you've got to write your
rules into the software, and that requires a little bit
of coding, which is technical. It's not super hard, complex,
complex stuff. But some people naturally like that. Some people
(10:50):
naturally are afraid of that. And you know, he said,
I don't know how to code. I know, I realized
most people don't don't know how to code. But when
you hold on to that belief, oh, I don't know
how to do that, I can't do that, because he
was more saying I can't do that, as opposed to
I don't know how to do that yet. Right, they're
(11:11):
two very different beliefs. I can't I don't know how
to do it yet. Yeah, my my belief I believe
in my ability to figure things out. Right in general,
for pretty much anything, I believe I can figure it out.
And that's a very empowering belief. But some you know,
if you have the belief of oh, I can't do
that whatever that is, trading coding money, then you can't
(11:36):
and you don't.
Speaker 1 (11:37):
Absolutely I have a Bible step from my dictionary. I
can't stand that where it can be automatically put yourself
in failure, yes, as I can.
Speaker 2 (11:54):
Wow.
Speaker 1 (11:55):
So your trading program is it talk a little bit
about what that looks like.
Speaker 4 (12:03):
So we understand you're talking about the systems or against
the process the system. Okay, so there's there's a number
of different styles of systems or trading strategies that exists
that work. There's a so the generic styles, let's call
it trend following mean reversion, momentum, and seasonality. Okay, so
(12:28):
I'll just touch on each of those so you know
kind of what they are. Trend following is where you
buy something that's going up with the expectation that'll keep
going up so you can make money, and you hold
it until it starts going down, so you get out
at the end of the trend. I mean, if you
think about you get a tennis ball, you throw the
tennis ball across the room. It doesn't just hit the
(12:48):
floor and turn around and come back the other way.
It kind of keeps going in the same direction until
it hits something and comes back right. It hits an
obstacle or a barrier, or something changes in its environment.
Stock or a commodity is kind of similar. It'll tend
to trend until the financial conditions change, the economic conditions change,
(13:09):
it's business, it's competitive environment changes, and then it'll turn
around and start trending. The other way we can make
money from that trend just by finding stocks that are
going up, buying them and holding them until they start
going down. Trend following. The second strategy or trading strategy
is mean version. Men reversion is where financial instruments tend
(13:31):
to overreact and bounce back. So if you think something
is going up, the stock is going up, and there's
some bad news, what happens. People panic, They hit sell,
stock price goes down. But when people panic, do they
overact or underreact? Typically they overreact, right, So the stock
(13:51):
price goes down too far on bad news and will
tend to bounce back either a little bit or a lot.
And so we can profit from that because if the
stock is going up, there's some bad news, it it
falls rapidly. We buy in the heat of the panic
and sell once it recovers just a little bit. That's
(14:12):
a very reliable or can be a very reliable way
of making money, particularly on the indices, because humans systematically overreact. Yes,
so we can buy and that we can buy in
that in that overreaction. It takes courage because everyone's panicking
right and doing to buy and put ourselves at financial
(14:32):
risk when everyone's panicking feels unnatural. That's why you need
a system to tell you exactly when, because it makes
that much easier to do so. Trend following mean reversion
momentum or rotational momentum is where you keep you buy
the strongest stocks. When they're no longer the strongest stocks,
you sell them, and then you rebuy the strongest stocks.
(14:53):
So you're always kind of buying into the stocks that
are going the best. And that's neat because you always
get to hold the biggest names that everyone's talking about.
But it's even more neat because it actually makes money,
so that's cool. And then the fourth and final one
is seasonality. There's certain seasonal trends that tend to recur
in the markets, so I mean the most one of
(15:14):
the most famous ones is probably the Santa Claus rally.
Stocks tend to rally through Christmas and just out the
other side of Christmas. There's others like different time of
the month effects. Stocks tend to rally towards the end
of the month. There's holiday effects. You know, going into
a public holiday, you know, stocks will tend to rally
(15:34):
through all public holiday. So things like that are occurring patterns.
You can create some rules around. So four generic strategies
that can create specific rules around that tend to work
over time. Trend following out of all of those is
probably my favorite. I've certainly made the most money from that.
But are a rotational momentum also very very robust strategy.
You've just got to have the confidence and keep following it.
Speaker 2 (15:58):
Yeah.
Speaker 1 (15:58):
So does this supply to no matter what you're trading in,
type of stocks, commodity that you're trading.
Speaker 4 (16:06):
Yeah, the generic generics also, the generic strategies do. The
precise rules are different. So, for example, you could imagine
that the people and the companies that make up the
the US stock markets like the NASDAQ might be and
the rules that they trade by might be different to
(16:27):
the rules that and the people that trade in Hong Kong,
you know, the exchanges have slightly might have slightly different rules.
The market constituents are slightly different, the kind of personality
and economic conditions are different. Therefore the precise nature of
price movements are different. So if I have a strategy
(16:48):
or system for the US market and I apply it
to the Hong Kong market, it might not work that great, okay,
but it can probably be tuned to the different personalities
of each market. Yeah, so I have one strategy of
trend following strategy. It works in Australia, it works in
Hong Kong, it works in the US, and it works
(17:09):
on many other markets. But to optimize it or to
find tune for those markets, you can improve the performance
quite a bit if you make it specific to each market.
Does that makes sense?
Speaker 2 (17:22):
It does? It does. Wow, you make this sound so easy.
Speaker 1 (17:26):
When I'm sitting trying to read and understand, it's like
it doesn't click. That's why you need a human to
basically talk you through but everything, because trying to do
it on your own is just not the same.
Speaker 4 (17:44):
And it's really challenging to do it on your own
because there's so much noise. I mean, I've got only
a very small portion of the books that I've read
to learn trading over my shoulder here, but there are
so many different approaches and much conflicting information. You know,
you should do this, you should never do that, hang on,
(18:04):
this person says I should this person says I should never,
or this is the best way. No, that's the best way,
or you know, by when this happens or by when
that like how do we know which is right? And
you know, one of the challenges is is getting a
mentoring or getting a learning environment that is internally consistent.
(18:26):
You know, you've got a full story, start to finish,
a bit of how to do it and how to
make it work. And you know, when you try and
learn on your own, you're getting a little bit from here,
a little bit from there, and you've sort of you've
got to assemble it all somehow translate and make it
a line so that you can make money. And it's
really tough. That's why it takes traders three to five
years to figure it out and make it make it
(18:46):
work if you do it on your own. But you know,
when I'm when I'm working with a new trader, who's
the right sort of person, you're an analytical sort of person,
we can do that journey in a couple of months
because it's all internally con and you don't have all
of that noise. You know, that's and.
Speaker 1 (19:04):
That's what I'm feeling right now, noise because one person
is talking. Now, some stuff is simular, but some stuff
is not. So it's like, okay, well which one is it?
Speaker 4 (19:21):
Yeah? And look, I think there's some good. There's some
solid generic principles that are probably indisputable, you know, very
small risk portrayed no matter how you trade, because you're
going to be wrong a lot. You know, this is
not this is not an environment where you get to
have ninety eight percent success like win rate, because the
(19:44):
markets are just too they're just too volatile, too difficult.
So you're going to be wrong many times, and many
times in a row potentially. So you've got to make
sure that when you are wrong, you don't lose too
much money because you're going to have a loss, a loss,
a loss. Your account is going to be going down
if you have five or ten losses in a row.
That wouldn't be surprising. You know. One time, early in
(20:04):
my trading career, I had twenty seven losing trades in
a row. Wow, And look, I was doing a number
of things wrong at the time, but I was following
this strategy that actually made money. It actually worked, and
I did make money from that strategy. But I didn't
realize at the time it was going to have twenty
seven losing trades in a row. Because my exits were
too tight. I was trying to get out as soon
(20:26):
as the stock went down just a little bit, and
so I ended up taking a lot of small losses.
And if you risk too much on each trade, you
lose too many too big a portion of your account
on each loss, and you have a lot of losses
in a row, all of a sudden you're in a
big hole and it's very hard to recover. So small
risk per trade is probably one indisputable piece of guidance
(20:50):
that will keep you alive. Don't use leverage, or don't
use a lot of leverage, particularly at the beginning of
your journey, is another bit of guidance. I think that's probably,
you know, relevant for almost everyone. Leverage blows up more
traders than almost anything, because as soon as if you're
(21:10):
highly leveraged trying to make what's the money fast, as
soon as the market goes heavily against you, you're out.
You know, you lose it all.
Speaker 1 (21:18):
Yes, And that's one of the things you know, I'm
talking with my friend about.
Speaker 2 (21:23):
Is it's a slow walk.
Speaker 1 (21:26):
Yes, it's not where it's not a get rich quick
kind of thing.
Speaker 2 (21:33):
You've got to be in You've got to be in
it for the long pole. Mm.
Speaker 4 (21:38):
Yeah, there's there's a lot of there's a lot of volatility,
a lot of setbacks that you're going to have in
your in your trading journey. And you imagine, can you
imagine thinking, oh, I'm going to be a brain surgeon,
and let me just I'm just going to go practice
some brain surgery so that I can figure out how
(21:59):
to do brain surgery, and now I can become rich
doing a brain surgeon. Who've been doing being a brain surgeon.
It's like, no one said that ever, right, No one
thinks that now. However, people do think, ah, I'm going
to be a trader. I'm going to go try it.
I'm going to go play around and be a trader.
(22:21):
I'll practice trading so I can get rich trading, said
just about everyone who ever started trading. For some reason.
We think, oh, it's it's easy, but the fact is
it's not. It's a big competition and there's a lot
of smart people who have got a lot of years
of experience, and when you're new, you don't have that experience.
(22:42):
It's a tough competition. You can win it, but it's
not an easy, get rich quick sort of sort of deal.
You know, you've got to learn, and you know there's
a lot of lessons and it's not intuitive. It's different
to everything else that you've done.
Speaker 2 (23:00):
And I believe that.
Speaker 1 (23:01):
I mean and being just going through this thing called life.
Nothing is easy and nothing is typically quick.
Speaker 4 (23:14):
It's look, I think we here's the thing, you know,
Tony Robbins says, we overestimate what we can achieve in
a year. We underestimate what we can achieve in ten.
And that's absolutely true in trading. And people think, oh,
you know, I'm going to start trading and replace my income.
I'm going to quit my job next month. It's like,
(23:36):
absolutely not gonna happen. It's not gonna happen because there's
a lot to learn. You've got to build your capital.
That takes time. But over ten years, you would be
amazed what you can achieve if you don't blow up,
if you have rules that are good and profitable and
(23:58):
you follow them, if you don't really too much. You know,
if you do all of these things, you know, ten
twenty years time, you can be in a pretty amazing
situation with very low ongoing effort. Because once you've learned
the lessons, the implementation of those lessons need it doesn't
have to take a lot of time. Because you're following
(24:21):
rules a system, and that is typically pretty quick. So
the funny reality about this is what people expect at
the beginning, quick easy money is what it's more what
it feels like down the track. But it's not like
that at the beginning. Like for me, Now, once I've
(24:42):
got a system that I'm confident in, I can execute
it and it takes a couple of minutes a day.
It's easy, but only because I did the work, only
because I understand the system, only because I've built confidence
in it, only because I've dealt with the emotions. So
at the beginning you don't have that. Now it's hard,
but later on it's easy. It's very strange.
Speaker 1 (25:04):
Yeah, and that's how it works. Yes, that's exactly how
it works. So if people want to work with.
Speaker 2 (25:10):
You, how do they do so?
Speaker 4 (25:12):
Look, the best way the business is in Enlightened stock Trading.
It's my trading education business, and in Enlightened stock Trading
we take people from beginner all the way through to
advanced of using systematic a systematic trading approach. If you
want to learn about this, go to Enlightened stock Trading
dot com, forward slash free and I have a free
(25:34):
couple of free courses to free ebooks and some cheat
sheets to kind of help you get started. And if
you love that and if you really want to learn more,
then we'll be in touch automatically because you've you've you've
registered for that free stuff, and I think that's a
solid place to get started. It'll tee even if we
never work together. It'll give the listeners some core skills,
(25:56):
some lessons which will help them stain in the game longer,
avoid blowing up. And so that's I'd say that's the
best way.
Speaker 2 (26:03):
Yes, Yes, And you also have a podcast.
Speaker 4 (26:08):
Have well, I have a YouTube channel. I don't I
don't interview others, but I've been on many podcasts myself,
and I do regularly present on on other trading education platforms.
So you know, if you google Adrian and Enlightened stock Trading,
there's there's plenty of material out there. And you know,
my YouTube videos I talk a lot about, you know,
(26:28):
the mindset stuff. I talk a lot about the different
systems and strategies and how to test them. So there's
there's a lot of material. If you like what you're hearing,
you know, just start diving into the systematic trading world,
and you know, you learn some things that will keep
you in the game longer and help you succeed.
Speaker 2 (26:45):
Yeah, and you definitely have to have a system. I mean,
I mean everything you need assist It's.
Speaker 4 (26:52):
True, isn't it really When you think about we just
don't know we have them because they're they're kind of habits.
Speaker 2 (26:58):
Yeah, we don't think about it that way. But I mean,
down to cooking a meal, it's.
Speaker 4 (27:06):
A system, it is. And what happens if you don't
follow the recipe. Oh, I don't like to put more salt. Right,
it might be good, but it might be horrible. Absolutely,
I'm gonna buy more tesla. It might be good, it
might be horrible.
Speaker 2 (27:23):
You're true, Yeah, yes, for sure, for sure. Wow, I'd
like this.
Speaker 1 (27:30):
Now, let me ask you about AI and trading, because
now the big thing is AI gives you the signals
and blah and you know the rest.
Speaker 4 (27:45):
So look, if it sounds like easy money, get rich quick,
retire next week, it's probably not real. As a general
principle for anything in the financial world. AI is going
to be is and is going to be a hugely
powerful tool for trading. And there's no doubt you can
(28:08):
use it to help improve your trading. It's not the
first thing that you need to learn. I suspect, you know,
the first thing we've already talked about. Some of the
first things that you need to learn is how to
control your risk. You know, how to have a system
that bypasses your emotions and gets you into the market,
(28:30):
out of the market at the right times, controlling your leverage.
Those sorts of things, they're the first things that you
want to learn. How can AI help? Couple of ways.
I've had many, many conversations with various ais about trading.
You know, to get system ideas to test, to get
ideas to improve a strategy that I'm using. It's very
(28:54):
good for that. There are more and more AI platforms
where it's generating the single for you. This is going
to become a very big thing. I believe that that's
going to be helpful. I don't believe it's a magic bullet,
because I don't think there's any magic bullet. So, like anything,
(29:16):
if you have a system of software and you put
garbage in, what do you get out? Garbage? Yeah, so
garbage in garbage outholds true. So when you're working with
these AI platforms, you need to know what you're doing
so that you give it sensible inputs, so it gives
(29:37):
you sensible outputs. And if if you don't, if you're
just buying it off the shelf and you're training it blind,
you know, just just blindly following its rules, hoping that
it's going to make your money. Look, it might work,
but you know, you've got no basis for that belief,
(29:58):
And so soon if you're making money, you're gonna feel fine.
It's like, oh, this is great, you know, making money,
making money, making money. But what happens when it goes
into drawdown, which it will because there is no such
thing as making money in a straight line forever in
the financial markets. As soon as it goes into drawdown,
If you don't have that confidence in the strategy, what
happens up here? You start to second guess the signals
(30:23):
and you're probably gonna pull a pin or do something
silly at exactly the wrong moment, right, And I think
we so we need to understand a bit more deeply
what it's doing and have confidence in that so we
can follow it. Yes, So a newbie coming in and
jumping straight into an AI platform, going yeah, I'm a trader.
(30:44):
You're kind of blindly following a computer that thinks it
knows what it's doing, and you don't know if it
knows what it's doing or not. It might work out
well or it might not. I'm not sure.
Speaker 1 (30:56):
True, true, So you need to know before you start
medal them around with a period.
Speaker 4 (31:02):
Would look I would say, yes, I think it's It's
not the place I would start. You know, get some
fundamental some no, get some basic training first, right, and
then go use to learn to use the advanced machinery.
Speaker 2 (31:15):
Okay, now, what's your your.
Speaker 1 (31:19):
Training platform? How often do you meet with the students.
Speaker 4 (31:25):
So, students in my mentoring program, we have four live
sessions each week. They don't have to come to every session,
and basically we encourage a session a week just to
keep in touch and deal with the questions because as
you go on this journey, there's a lot of questions.
No matter how great the training is. And now training
is pretty solid, we've been doing it for a long time,
(31:47):
students always have questions and they need someone to bounce
those off and share their analysis and check check that
they're doing it right. So, you know, we have four
live sessions week. We have constant forum access, so ask
questions and get answers and believe it or not, we
also have an AI clone of me. So I've trained
(32:09):
an AI with over eight hundred hours of my video
of teaching, trading, everything I've ever written, and thousands of
Q and A. I've trained the AI so that you
can ask A questions. It gives you answers back as
me in my not not my voice is in in
an auditory way, but my voice is in how I
would respond. And that is just such a cool use
(32:33):
of AI because it allows people to get access to
me instantly, no matter what time of the day. It is,
no matter where I am and what I'm doing. So wow, Yeah,
they get the momentary students get a lot of access
and a lot of support because there's a lot to
learn and you know you can do that quickly as
long as you've got that support. Yeah.
Speaker 1 (32:53):
Some people study different times, Like I'm a type of
person I m I study like four am in the morning.
My mind is a whole lot more fresher, and you know,
I absorb better, So I like that.
Speaker 4 (33:07):
Yeah, and way helping students all over the world as well,
which which can be you know, a challenge. If you're
you're it's it's it's midnight my time, but it's lunchtime
your time. You know that you want help, right, So
I've got my coaches spread around the world. But also
the the II and the forum allows you to keep
getting access, keep getting supported the matter. You know where
you are in no matter what time.
Speaker 1 (33:28):
Yes, and I like your approach, you know, because this
is you know, it's systems and I'm being in the
IT field for over fifty years, I'm wired with systems.
That's how I think. There has to be a system
for everything that I did, down to the smallest thing.
(33:52):
And I'm real probably aintal about that, you know, but
I can't help it because of the path that I've
been on.
Speaker 4 (34:00):
Yeah, and not everyone has that advantage when they come
into the markets. But putting some structure around it, putting
a process around it, making it repeatable so you're not
kind of all over the place. You know, A repeatable
process is a process you can test and validate and
improve over time. But if you don't have that process,
it's pretty hard to know what you did right and
(34:21):
what you did wrong and how to improve it.
Speaker 1 (34:23):
Yes, you're absolutely right, because I always say, perfection.
Speaker 2 (34:29):
That's another thing to.
Speaker 1 (34:30):
Me that needs to go out the dictionary, because you
can't measure perfection. You can only measure excellence. But all
the different things that you've done over time.
Speaker 4 (34:46):
Yeah, I think that's I think that's right. It's very
pertinent to trading as well, because someone who wants to
get everything right and before pulling the trigger is someone
who never pulls the trigger. Absolutely, there's a lot of
uncertainty in the financial world and we have to come
to accept that. And so I have a you know,
(35:09):
I have many systems, right, trading systems, as we've talked about,
and I know if I follow those systems over time,
they will make money. But for each individual trade, I
don't know what the outcome is going to be. I've
got a kind of range of expected outcomes. But there's
no perfect trade. At least, you can't pick it in advance.
(35:33):
Later on, after the trade is finished and go, wow,
that was a great trade. But you have no idea
going into it which one is going to be the
big winner and which one is going to be a dud.
You have no idea. And so therefore, for if you
have those perfectionist tendencies, it's really tough mentally because you've
got to accept so much uncertainty, and perfection is an uncertainty.
(35:55):
They kind of don't really play well together.
Speaker 1 (35:57):
No, it doesn't and with anything for that matter, because
if you wait it, you have to do it, you
can't read it. Were found doing it correct, absolutely right,
and to get to that place of excellence where it
becomes easy, it's all about action.
Speaker 2 (36:20):
Action is what creates the excellence.
Speaker 4 (36:24):
Yeah, there's a really good lesson as well which many
students have to learn, which is before you get into
the market, before you're doing it. You can look at
it theoretically say okay, yeah, I understand, I get it.
I know what I'm going to do. I'm going to
buy here, I'm going to sell there. I've tested it,
(36:45):
I know that works. I have confidence in it. But
that's all theoretical until you actually do it. Yes, and
then you do it, and what happens? All this emotion
comes up? What and then you start sackings and you realize, oh,
actually I didn't I've never I didn't think of that,
and I haven't thought of that before? And how do
I do this? And what's that I didn't I didn't
(37:06):
notice this thing before, and like all of this comes
up because you're doing it, yes, which is great, And
that's the point. I love when people actually get into
the market and then they have all this different set
of questions and challenges. So okay, then we deal with those.
But those people who are sitting on the sidelines perfecting
everything in a theoretical way, they never get to that
(37:29):
point where the real questions come up, right, And so
we've got to get in the game. But the trick
is when you get in the game, you've got to
do it safely because most people go, oh, I'm going
to be a trader, and they get in the game
like big all their money. It's like whoa, no, No.
When you get in the game, you want to do
(37:50):
it in a small, safe way because all these things
are still going to come up. Then you can learn
them and deal with them, and then you can scale
up over time and then you can survive. That's the key.
Slow walk, Yes, slow war, I really like that. I
might steal that. Yeah, borrow it.
Speaker 1 (38:09):
You, Drian. This has been great. I've learned so much
from you. I can't wait to get over to your website.
So can you let us know one more time with
that website is so we can get all those goodies
you got over there.
Speaker 4 (38:22):
Absolutely, if you go to Enlightened Stoptrading dot Com Forward
slash Free, opt in there, you'll get a couple of
ebooks which will really help you survive and grow as
a trader. Two free courses and there's four cheat sheets
for different aspects of trading. Really to help you get
in the markets in a safe way, survive long enough
(38:43):
to learn and actually become a trader. Love to help
you Enlightened Stop Trading dot Com Forward slash Free.
Speaker 2 (38:49):
Absolutely, thank you so much.
Speaker 1 (38:51):
This has been wonderful and I know you got up
pretty early to be with us today, so thank you
so much for that. And audience thank you as well,
and we will definitely have this conversation again.
Speaker 4 (39:04):
Adrians, thanks so much for having me on the show.
Really really enjoyed myself.
Speaker 1 (39:08):
Absolutely, Thank you to our guests and you our values audience.
Speaker 2 (39:17):
Let's stop you by. We truly appreciate you. Many blessings
to you and yours
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