Hey hey: what's up my friends, so in today's episode right i want to discuss right. What should you do if you're unsure about your trading strategy, man right now how many of my trading strategy works? Sometimes it works. Sometimes it doesn't yeah. So yeah i'm gon na share with you a few tips and techniques right that you can use, and so you can better decide for yourself number one.

My suggestion is to stop trading the strategy immediately. Why is that? I know it's not something that you want to hear about, but why and the reason is simple: if you are unsure of your trading strategy, then what's going to happen is that you will have the difficulty right of trading the strategy during difficult difficult times right during A drawdown you find yourself, you know hard finding it hard to follow your rules because you're unsure of the strategy you're, not even sure whether it works or not or if you're trading, something that doesn't even work at all, then why should you continue trading that strategy? So those would be the thought process you have in your head all right. So this is why my suggestion is, if you are unsure about your strategy, stop trading it immediately. So what should you do instead right? So i want you to answer your this four questions, because if you can answer these four questions, i can almost assure right.

Your confidence right in your strategy will increase right by so so so much. Okay, first question to ask yourself: is this number one? Where did i learn that strategy from okay and the reason for that is because, if you learn a strategy from a credible source, let's say from someone is a hedge fund manager, managing a billion dollar under management and the strategy strategy that he shares. Maybe let's say on a public domain chances are that strategy would work, because that person has so much on the line his hege fund his reputation his credentials compared to a strategy. You learn off a random book, maybe say on amazon, whom you've never even heard.

The author, before right, that person has so much less or even nothing to lose. So if you want to learn a trading strategy, look for someone with the credentials and someone who has a lot on the line, because chances are that strategy. That methodology is likely to work okay, i wouldn't you know, let's say, for example, let's say i'm a big short trader. You know i have a billion dollar under management right, i'm a famous uh trader and i publish a book that shares a trading strategy that works and - and what i want to do is to make sure that strategy i publish right is of quality of good material Because if someone proves me wrong right, then my entire reputation will come falling down.

It makes me look bad right, so you can see that you know where i'm coming from right is that i have a lot more on the line compared to someone who's, a let's say: doesn't have the the name or the branding or the credentials behind it. Okay, so that's the first question right: where do you learn the strategy from number two? Why does the strategy work? So here's the thing right. You must understand the why behind the strategy, because, if not, you will not have the confidence to trade it. If you do not know why it works, then how are you going to get the confidence to trade it? So let me give you an example: let's say trend following for example, why does trend following work and it's quite simple: it's because of trends in the market.

There so trend following work is because of you know: extreme greed and extreme fear in the market, when there is greed in the market, markets will trend higher when there's fear in the market markets trend lower. So, as a trend follower, you can exploit this type of you know, fear and greed in the markets and that's why trend following work? And the third question is this right: when does trend following work? Well, that's when the market is trending right now there. Yes, i know that right, but let's dive in a little deeper right. So, just because you are a trend, follower doesn't mean you will profit right from all types of trends because trend following you can break it down into short term trend following medium term and long term.

So you have to understand right if you're a trend follower. What type of trends right will you make money? Is it from longer term trends or shorter term trend, because it's possible that a long-term trend follower could make money and a short-term trend follow, could lose money? And that's because, right during the retracement, the pullback, a long-term trend follower will endure that pullback, whereas a short-term trend follower will likely already cut their loss and move on. So that's the difference. So you have to understand right if, let's say, for example, you're a trend follower, you must know right when your trading strategy works as well.

And finally, the fourth question is this right: when does your trading strategy not work right? This is important because if you know ahead of time right under what circumstance, under what market conditions, where your trading strategy won't work, then you you'll be mentally prepared right, mentally and psychologically, and it makes it easier for you to continue. You know to uh to manage your expectations right because you know in such market conditions you're not expected to perform. So you have to know ahead of time. You know under what market conditions your trading strategy won't work so, for example, trend following clearly in choppy market conditions range range market conditions, it's not going to make money and you will be you know mentally prepared for it.

Okay. So this is right. My suggestion to you right, if you're, unsure about your trading strategy number one stop trading it immediately. Don't put yourself unnecessary through unnecessary stress, take unnecessary risk and the second thing is to understand right.

The four questions that i just shared with you number one: where did you learn the trading strategy from? Ideally, you want to take it from someone who is the with the right credentials? Okay, number: two: why does your trading strategy works? This gives you confidence right to trade. It number three: when does your trading strategy work and number four? When doesn't your trading strategy work, so you can better manage your expectations right during difficult times. So with that said, i've come to the end of today's episode and i will talk to you soon. You.