NO HOLY GRAIL

Throughout history investors have shared the dream of one day finding some kind of magical formula or Holy Grail that finally will reveal the big secret behind stock market movements. They want to never again find themselves on the losing side. Many people carry the vision that system trading will bring them to that goal. Unfortunately they are wrong.

 

System trading is not about always being right. It’s not a Holy Grail. To a certain extent markets are, and always have been, unpredictable. At Nordic Analyst we know this. We know we won’t be right all the time. We don’t even try. What we do strive for though, is to find structure where others experience chaos. To get that winning edge.

We do not believe in the Efficient Market Hypothesis. In the same way that we know that the stock market is almost completely unpredictable most of the time, we’re convinced that its movement, from time to time and to a certain extent, is quite foreseeable. We believe that stocks can move in trends. We believe that certain patterns tend to repeat themselves, and we believe that the reason for this is that mass-psychology and the collective feelings of people are reflected in the stock market charts. We believe that people react the same way today as they did 1, 10 or even 100 years ago, and in the same way we believe that the stock market behaves the same today as it always has. These are the convictions and foundations we’ve built our systems on and it is these historic and repeatable patterns we’re trying to take advantage of when finding our setups.

Although system trading is not about holy grails we are convinced that a well working trading system is a very appropriate tool in becoming a successful trader determined to make money on the stock market. It’s a great way to get an objective view of the market and get yourself that winning edge enabling high and solid returns over time.