Stock Market Wizards
Steve Lescarbeau: The Ultimate Trading System
Steve Lescarbeau is known for his systems that are by far the best ones. He invests in mutual funds and has made an average annual compounded return of over 70% with incredible risk control.
He believes the traits needed for comprehensive success are the characteristics that are required to become a successful trader. The key elements required to be victorious are being smart, disciplined, decisive and independent.
Another characteristic of winners in any field is that they are extremely confident. An honest assessment of your confidence level is the best indicator of your potential for accomplishment. Confidence cannot be manufactured. You either have it, or you don't. It can however be acquired by hard work.
Even though Lescarbeau has already developed incredible trading systems, he continues his research without abatement. He doesn't relax, instead ploughs a comfortable approach daily, as if what he is using will cease to work tomorrow. Obsession is one more trait that has helped Lescarbeau to achieve success. He never misses a day from checking markets.
Lescarbeau refused to reveal any details about his trading systems because he believes that when too many people jump on the bandwagon, the market takes it away. In his opinion, if you know what is working for the market then you should keep it to yourself because it won't last forever. It will become obsolete at some point in time.
He uses leverage but never more than 140% of his capital.
He doesn't sell winners and doesn't believe in holding losers. He also doesn't get emotionally involved with his trades.
Lescarbeau has an unfailing sense of discipline. He never holds onto a position once he gets a sell signal. If his system tells him to liquidate, he is out without any second-guessing. The essence of discipline is that there are no exceptions.
Risk control means longevity. A trader like Lescarbeau keeps his losses very low and has a much higher probability of long-term success.
His advice for novice traders is that he doesn't want them to misinterpret activity with accomplishment. They begin trading before having any idea about it. They are active, but they’re not accomplishing anything.