Hey hey, what’s up my friend!

Here’s my trading result for this year…

YTD return: 21.33%

All-time return: 400.65%

In March, the stock market declined 10%, and this triggered an exit for most of my stock positions.

It turned out to be a false breakdown as the market rallied 17% of the lows. Ouch!

Because of this rally, my trading system is bullish again, and I needed to buy the stocks I sold earlier, albeit at a much higher price.

As you can tell, this isn’t the easiest thing to do because I seem like an idiot who sold at the lows and bought back at the highs.

But there’s a reason for this madness.

Here’s why…

I moved to cash in March because I don’t know if the market will collapse further. If it did, I would look like a genius who avoided a blood bath.

However, it turned out to be a false breakdown, and I ended up selling low and buying high.

But here’s the thing…

You can’t judge the quality of a decision after the outcome.

Instead, the quality of a decision is based on the information you have available and using it to the best of your ability.

It's like going on a date. You dress nicely, bring flowers, and show up on time. If she turns out to be crazy, that doesn't mean your preparation was bad—you just got unlucky with the outcome.

Now this isn’t the first time it has happened, and it will happen again.

However, it’s the price I’m willing to pay because I know this:

If I take care of my downside, the upside will take care of itself.

That’s how I’m able to beat the markets consistently over the last 7 years.

Not because I'm smart.

Not because I can predict the future.

But because I protect my downside and let the maths do the heavy lifting.

Cheers,

Rayner “buy-high-sell-low” Teo

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