Active Stock Investing
Today's guest was originally a white-water rafting guide teaching people how to navigate dangerous rivers and lakes. Wanting to have more intellectual challenges in his life, he ventured into the stock market. Now, he teaches and mentors people around the world on setting up automated trading systems for the stock market.
Professional stock trader Laurens Bensdorp is the founder and CEO of Trading Mastery School and the bestselling author of “The 30-Minute Stock Trader” and his newest book, “Automated Stock Trading Systems.” He mentors a small group of people who want to have automated trading systems that work in bull, bear, and sideways markets.
Laurens and I talk about how he switched his career to stock trading, how he developed his own stress-free automated trading system and how his approach smoothly copes with uncertain times, especially during the COVID-19 pandemic
In this episode, we’re discussing…
[02:42] How Lauren switched careers from being a whitewater rafting guide to a stock trader
[06:01] How his newest book “Automated Stock Trading System” became a best seller in Amazon
[07:12] How catastrophe hedge system works during COVID-19 pandemic
[08:42] The difference between day trading and Lauren’s automated approach in stocks trading
[12:52] How the Automated Stock Trading System works
[14:14] How learning automatic stock trading is similar to mastering heart surgery skills
[15:13] On backtesting and riding the trend
[18:28] The typical participants in Lauren’s automated trading approach
[20:55] How the system removes human emotion from stock trading
[22:55] How Lauren’s automated trading system adapts well during different market environments and during uncertain times
Laurens’ Top Tips:
“The reality is, 99% of all those day traders eventually blow up their accounts, especially when the reason for getting started in day-trading is boredom or they don't have anything else to do. [They] don't really have backgrounds. They don't have scientific proof that [their] buy and sell decisions are actually making money.”
“[My approach is] we use historical data of the stock market, and based on that, we create statistical models where we can find, buy and sell decisions. We place our orders before the market opens. And this can be done in less than 30 minutes a day.”
“Everything is automated. You don't care about the news. You don't care about profit warnings. You don't care about economic news that comes out. Our models basically react only according to what the market tells us.”
“We're not predicting, but we are reacting according to the price action of the market. That is a pleasant way to trade because it takes the emotion out of it.”
“I don't know for how many years those surgeons studied before they actually mastered their skills. But stock trading is exactly the same. The learning curve can be shorter, of course. But one needs to really put in the work first before you can master it.”
“Even when you're traveling, you just have your finger with you and place your orders. And that's basically it! For the rest of the day, you don’t have to look at the market. So, for many busy people, this is a really great way to actually accumulate wealth.”
“For 24 hours, the stock market is dominating your mind, [but] with this approach, you just need to consistently follow what the computer says.”
“Emotions are mostly the cause of why people do not make money in the stock market. Now, with this approach, you take that emotion out of it.”
“With fundamental trading or day trading, people make some kind of prediction where the market goes. But basically, nobody knows where the market will be from now in a month or so.”
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Resources About Laurens Bensdorp:
Categories: Stock Market, Trading, Automated Stock Trading
Tags: Automated Stock Trading System, Trading Mastery School, Laurens Bensdorp, Professional stock trader, mentor, stock trading school, catastrophe hedge, day trading, stock trading historical data backtesting, The 30minute Stock Trader, emotional trading, computerized trading, economic, fundamental trading, catastrophe hedge system, profit warnings, money, market stocks, business, scientific stock trading, scientific historical approach.
ABOUT LAURENS BENSDORP
Laurens Bensdorp is an expert at combining multiple non-correlating trading strategies to achieve high returns no matter what the market is doing. He is the founder of Trading Mastery School, best selling author of The 30-Minute Stock Trader, and his new book Automated Stock Trading Systems will be released next week.
In light of the stock market's performance over the last month. Specifically, his new book details the entry and exit rules for 3 automated systems that deal with bearmarkets and how to still make money even when the markets go down.
