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Trading Made Simple with Louise Bedford, Ep #87

by | Nov 16, 2021 | Podcast | 1 comment

Louise Bedford is a best-selling author of five books on the stock market and Founder of www.tradinggame.com.au. She is a behavioral finance expert and has degrees in Psychology and Business. She’s been running a 6-month, repeat-for-free Mentor Program, since 2000, and she’s also the founder of a free weekly trading podcast.  Louise is known as ‘the corporate executive who lost the use of her arms and achieved financial freedom by trading with a pen in her mouth’.  In this episode of How To Trade It, Louise will inspire you to achieve your trading best. You don’t want to miss it! @CaseyStubbs talks with author and trader, Louise Bedford, about the importance of premeditating your trading, so that you do not react emotionally. Join us on this episode of How To Trade It to find out more! #AustralianMarket #MentorProgram… Click To Tweet

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You’ll want to hear this episode if you are interested in…

  • [02:10] choosing the right market
  • [03:22] Louise’s 3 main archetypes (aka “strategies”)
  • [06:20] a mentoring program
  • [09:02] why you should stop looking at the profits
  • [11:26] having a macro kill-switch
  • [16:06] how not to be a lonely trader
  • [17:53] premortem analysis
  • [22:19] reviewing your trades for profitability
  • [24:38] accountability
  • [28:07] Louise’s offerings…psst, there’s FREE stuff!

Archetypes/Strategies

One of Louise’s keys to success is developing a really firm, marriage-material, ticks-every-box, kind of trade which has everything that you are looking for and then matching that up with a well-thought-out strategy.  The three main archetypes that Louise runs are:  

  1. Breakout – like a Darvas Box method – goes sideways, up, sideways, up, etc., then shows a long green candle, on heavy relative volume, which breaks up past a significant line of resistance, during an existing uptrend.
  2. Reset
  3. Retracement

Almost 80% of Louise’s trades are from breakouts when the market is trending up.  The same is true for the majority of her mentoring students.  

Macro Kill-Switch  

If you haven’t already established a big, macro statement to tell you how to handle trading issues that may arise, you absolutely must do that now.  Louise says that it’s important to premeditate your trading.  You must have a plan that is written down, so that you do not react emotionally while trading.  If Louise would happen to lose 25% of her money in the markets, she knows exactly what she would do.  First, she would stop entering new positions.  She would cut her losses by eliminating the bad trades, then she would let her current positions run so as to grab profits there, and finally, she would consult a higher authority.  When you find yourself doing poorly, it’s time to enlist the help of a trusted, experienced trader who is willing to delve into your plan to help you get back on track and achieve greatness.  

Reviewing Your Trades

Louise suggests journaling and/or recording every trade, and then, reviewing your trades and trading plan on a regular basis, in order to improve.  New traders should plan to go through an intensive review process every three months, while experienced traders should review every six months. Setting a date on your calendar to sit down and analyse your strategies and individual trades is an important part of long-term success.  You will quickly be able to gauge areas where you are excelling, as well as, identifying areas of weakness that need improvement.  

Resources & People Mentioned

Connect with Louise Bedford

Connect With Casey Stubbs

Subscribe to How To Trade It

Disclaimer: Trading carries a high level of risk, and may not be suitable for all investors. Before deciding to invest you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment. Therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts. 

  • Louise Bedford says:
    November 19, 2021 at 1:49 am

    What a pleasure it has been to be on your show, Casey. You are a true professional and your questions are so insightful. This was one of my favourite interviews ever.

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