The Stock Pick and Trend Intensity Report lays the foundation for the Stockradar service in a controlled and disciplined environment. Stockradar members know this report very well as you will too if you become a subscriber. Covering 160 stocks, the stock selection process is based on only three basic price setups: the Trend Reversal, the Key Low Reversal and the New High.Filtering out the weak

Then they are further qualified and filtered by Stockradar’s unique Trend Intensity Indicator. Money management, based on a Stopprocess then controls our exits, and safely wraps up our trading strategyin a predetermined limited risk process. We cannot and will not be exposed to major market downturns that kill portfolios. That’s a simple but very effective rule.

It’s a process

The markets are delivering us a reality check and we need to get back to basics to gain the perspective we need to understand what has happened and why. Michael McCarthy the chief strategist at CMC market put it succinctly in a recent Australian Financial Review article when he said ‘Investors may be fooled into thinking markets are mathematical and/or logical. Nothing could be further from the truth. Markets are the product of crowd behaviour and prone to the same characteristic as humans’

Survival

He went on to add that“John Maynard Keynes said, ‘The market can stay irrational longer than you can stay solvent.’” This is a quote we should as traders all be succinctly aware of.

Risk control

In trading there are four basic outcomes:

1. Big wins
2. Small wins
3. Small losses
4. Big losses

It is impossible to completely negate losses as they are a part of trading, but we can easily rule out the big losses through risk control and money management. If we completely neutralise Big losses, we are left with Big wins, Small wins and Small losses. You don’t need to be Einstein to work out where that leaves us. Small wins and Small losseswill neutralise each other and that leaves us with Big winsand a profitable trading strategy and outcome.

Probabilities

The repetitive playing of this statistical probabilities maintains steady equity growth profile in your equity.  Stockradar’s current cash equity settings are 87% cash and 13% equity as at the 19/11/2018 as we take a defensive stance and have protected our capital during the recent big downside move as volatility and uncertainty (read risk) rears its ugly head. The beauty for us as retail investors is that it we can take fast and immediate action and respond quickly to what the market presents us with.

Funds can’t move like that but you and your SMSF can.