TJ 126: Kevin O’ Banion and the importance of systems

  Trading without systems in place is possible at any skill level. Just seek out trades that have good fundamentals and technicals and place the trade. However, you can lose a lot of time and even negatively affect your portfolio if you're not careful. Even if a security has great fundamentals and technicals, is it right for you? This is where a system can come in handy and save you serious time and heartache. The most basic system is a set of trading rules you make for yourself regarding probability, ROI, your tolerance for risk, and other factors. This makes assessing a potential new trade super easy. Does it fit your rules? If so, great! Place the trade and move on. If not, excellent; you saved yourself the pain of making a bad trade. A step beyond simple trading rules are actual trading systems, such as Theta Fade by Steve Huang. A system takes generalized rules and sharpens them to the point that the rules become super focused. In Theta Fade's case, the rules focus on trading options once a week, on Friday. May not sound like much, but said system was a big part of Steve Huang being placed into the Rich Dad Hall of Fame. In this episode, Tim is joined by Kevin O' Banion to discuss Kevin's journey as a trader and offer an insight to how Steve Huang developed his own trading system.