9 Minute Read

Tackle Today: Where Randomness Reigns

June 4, 2021

By | No Comments

Beware the short run


Randomness is a tricky devil. He causes you to either think you’re a genius or a fool when the truth is usually somewhere in between. The worst trading systems score the occasional winning streak, and the best trading systems suffer the occasional losing streak. When you’re in the middle of the streak, it’s hard to judge the actual merits of your system or set of rules.

So, don’t!

Instead, keep going. Give it time. Make it to the long run. Along the way, randomness dies off. The law of large numbers kills him. What remains is the true measure of a system. If it’s a quality set of rules with an edge and proper position sizing, then profits will eventually stream in. If it’s a shoddy system with no edge or poor risk protocols, consistent losses will come to the fore.

Sadly, many traders put too much pressure on themselves. They trade too large of a position or read too much into their first few trades. What they should do instead is trade small and trade often. Rack up a large enough data set. Keep track of it using the Tackle Trading Journal. Then, after dozens and dozens of trades – it’s judgment time.  


Chart of the Day

Can Tech Break Out?

The technology sector is hoppin’ this morning, directly into the top end of its recent range. Is the seventh time the charm? Can XLK finally blast through resistance? Time will tell. If it does, a return to its $143.77 peak could be in the offing.  

Video of the day

Buy One, Hold One Dump One

Coach Greg presents 3 stock ideas from Industrials – $ADP $ITW and $ETN – and Coaches Tyler, Tim and Cody have to decide to ‘Buy One, Hold One, and Dump One’ in this segment from Thursday’s Cash Flow Club

Traders Lounge 11 AM EST

Join the coaches in this live lounge, ask questions, discuss ideas or just sit back and listen to veteran traders discuss market conditions.

Halftime Report 12:30 PM EST

The Halftime Report starts at 12:30 EST and covers what news is driving the market, chart analysis from the movers and shakers of the day and fun in a way that only Matt and Tim can deliver.

At the Closing Bell 3:00 PM EST

Join Mark Justice each Friday as he covered the world of commodities and takes questions at the closing bell of the market.

Tackle Trading: Financial Freedom is a Journey. Sign up now for a 15-day free trial.

Financial freedom is a journey

The Tackle Today series is brought to you by Tackle Trading.

Sign up now and gain unfettered access to all of the quality content and powerful Scouting Reports that our Pro Members enjoy for 15-days absolutely free with no strings attached and let us show you what your trading has been missing.

# Sign up now for a 15-DAY FREE TRIAL #

Legal Disclaimer

Tackle Trading LLC (“Tackle Trading”) is providing this website and any related materials, including newsletters, blog posts, videos, social media postings and any other communications (collectively, the “Materials”) on an “as-is” basis. This means that although Tackle Trading strives to make the information accurate, thorough and current, neither Tackle Trading nor the author(s) of the Materials or the moderators guarantee or warrant the Materials or accept liability for any damage, loss or expense arising from the use of the Materials, whether based in tort, contract, or otherwise. Tackle Trading is providing the Materials for educational purposes only. We are not providing legal, accounting, or financial advisory services, and this is not a solicitation or recommendation to buy or sell any stocks, options, or other financial instruments or investments. Examples that address specific assets, stocks, options or other financial instrument transactions are for illustrative purposes only and are not intended to represent specific trades or transactions that we have conducted. In fact, for the purpose of illustration, we may use examples that are different from or contrary to transactions we have conducted or positions we hold. Furthermore, this website and any information or training herein are not intended as a solicitation for any future relationship, business or otherwise, between the users and the moderators. No express or implied warranties are being made with respect to these services and products. By using the Materials, each user agrees to indemnify and hold Tackle Trading harmless from all losses, expenses and costs, including reasonable attorneys’ fees, arising out of or resulting from user’s use of the Materials. In no event shall Tackle Trading or the author(s) or moderators be liable for any direct, special, consequential or incidental damages arising out of or related to the Materials. If this limitation on damages is not enforceable in some states, the total amount of Tackle Trading’s liability to the user or others shall not exceed the amount paid by the user for such Materials.

All investing and trading in the securities market involves a high degree of risk. Any decisions to place trades in the financial markets, including trading in stocks, options or other financial instruments, is a personal decision that should only be made after conducting thorough independent research, including a personal risk and financial assessment, and prior consultation with the user’s investment, legal, tax and accounting advisers, to determine whether such trading or investment is appropriate for that user.

Chart Modal

Tackle Trading