Do you want to learn how to consistently outperform the market?
We recently had the pleasure of interviewing MARA Trading Coach, Stuart Chalmers. So far, Stu has achieved a 65% return YT and he’s done it while trading part time. Stu’s primary focus is on creating lifecycle systems and strategies to deal with the whole life of a trade from idea generation to execution, management and post-trade analysis.
Watch the Full Trader’s Mindchat Show Episode with Stuart Chalmers HERE:
LISTEN TO THE SHOW HERE:
Top 10 Trading Highlights with MARA Trading Coach Stuart Chalmers:
- Follow a Holistic Approach to Trading. Let the market do the talking. Stu’s process starts over the weekend. He considers how the investment landscape looks overall, taking into account Relative Group Rotation to see where the money is actually going.
- Look at stocks with a lot of momentum and potential for big moves. When you see which sectors the money is flowing, look for stocks w/ high momentum and tight consolidations.
- When trading Part-time you need a very efficient process. Work on developing your process, one step at a time.
- Utilize Scans but Beware that Scans aren’t enough. Stu uses various scans to produce a list of possible trade ideas. After running that initial scan, quickly tab through one or two setups you’ve mastered or are mastering. Have a weekly candidate list of no more than 50.
- Don’t Fear Trial and Error. Has been refining his process over the years. Lost about 1/3 of his inheritance in span of a few months when he started. Never give up! Adjust. Pivot. And continue pivoting until you find what works.
- Find Your Comfort Zone: It started working once he found out what suited him as an individual and what he was comfortable with. Then started to find the setups that suited him. Go through post-analysis and ask yourself the following questions: What went well? What exactly were the characteristics of that setup? Which scan brought it to his attention? What were the markets doing at that time as well? When you see a cluster of bad trades, see what was happening at the time.
- Most Traders Understand Patterns But Don’t Know Basics Of How They Move: A key thing he noticed about many traders is that they look at patterns and are quite good at finding patterns. However, where many need help is understanding the basics about how stocks actually move and how the markets work. The majority don’t factor that this into how they trade, which trades to take, and when.
- RISK MANAGEMENT is where you make or break your account. For traders just starting, you need to get used to losing, because it’s part of the game and then you can manage your risk to reward ratio better.
- Use a 5% maximum stop based off of price action. This will help you achieve 3:1, 4:1, and even 5:1 reward to risk trades easier.
- Trust Your Gut: When you see something you don’t like, don’t just hold onto to that stock. Get out. Trust your intuition. Trust your gut. The market is an Infinite stream of opportunity. Don’t get too attached to a stock. Sometimes you need to let it go.