How important is a trading system?

Podcast: How important is a trading system?

In JSE Direct, Latest by Simon Brown

How important is a trading system?

How important is a trading system?

Simon Shares

  • Famous Brands* (JSE code: FBR) results were nasty. Local was weak but the real issue is the UK GBP purchase that cost a bunch and is not performing.
  • Long4Life (JSE code: L4L) is now 510c as I record. Nice price and a lesson that we must never chase stocks.
  • Sasfin (JSE code: SFN) has a price-to-book (PB) of around 1x and that is always a buy signal for the stock. Ungeared and hold until PB is 1.4x or higher, about 12-18 months typically. You’ll get NAV uplift, dividends and the price gain above NAV.
  • Clicks (JSE code: CLS) are a master class in how a set of results should look if the company really is firing on all cylinders. Revenue +10.9%, HEPS +14.5% and the dividend +18.4%.
  • The Traders Life three part series with IG is online.
  • Up coming events;

I hold ungeared positions.

How important is your trading system?

Your trading system is one of the least important parts of a successful traders arsenal. Yes you need one and yes it need to be profitable. But it is not what is going to make you the money. That will be your discipline, your money and risk management – this is your trading edge.

So stop trying to find the best system in the world. Stop tweaking your system every tine it loses some money and stop jumping from one system to another.

Find a system that makes money, test it and learn to trust it. Become the absolute pro at the system and then trade it; unemotionally and with discipline.

We Get Mail

  • Ron
    • I want to buy Tech stocks (eg Alphabet, Amazon, FB, Apple, Tesla …) and get a little Biotech exposure using an off-shore account. I’d prefer an ETF than individual stocks.


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