Better System Trader

236: How to Profit and Protect in Any Market Conditions - with Tom Basso

May 23, 2024

Tom Basso, a Market Wizard and $600 million fund manager, shares his strategies for profiting in any market conditions. Topics include extreme diversification, simple hedging strategies, using multiple indicators, common-sense trading decisions, and risk management. Learn how to protect your account in downturns while enjoying the ride!

58:00

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Episode guests

Tom Basso

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Quick takeaways

Extreme diversification can boost portfolio growth, traditional diversification may not suffice.

Proper position sizing and risk management are crucial for long-term trading success.

Deep dives

Tom Baso's Journey in Trading and Retirement

Tom Baso shares his trading journey, starting like most traders with limited knowledge and years of persistence to eventually become profitable and managing $600 million before retiring in 2003. He reflects on how his motto 'enjoy the ride' led to the creation of a mentoring website to streamline answering common trading questions.

Balance and Discipline: The Keys to Longevity in Trading

03:12

Diversify to Prosper: A Portfolio of Many

03:23

Navigating Investment Potholes: Embrace Strategy and Diversification

03:28

Diversify Wisely: Seek Uncorrelated Assets

03:19

Introduction

5min

The Crucial Role of Diversification and Risk Management in Trading

29min

Implementing a Trend Following Hedging Strategy

10min

Selecting and Backtesting ETFs to Avoid Survivorship Bias

2min

Effective Signal Management and Indicator Understanding in Trading

9min

Tips for Contacting the Speaker and Market Caution

3min

Tom Basso is a Market Wizard with 5 decades of experience.

After taking 4 years to get to break-even, he eventually transformed himself into a $600 million fund manager.

In this discussion with Tom, we uncover some of the key strategies he uses to profit in almost any market, protect his account from market downturns, and all while enjoying the ride!

Here’s some of the key takeaways:

Why traditional diversification isn’t enough and how to deploy extreme diversification to grow your portfolio,
Tom’s simple yet powerful hedging strategies to protege your account in a downturn,
How to generate more consistent results by “filling the potholes”
The advantages of using multiple indicators in trading and which indicators Tom uses (and those he avoids),
How to simplify trading decisions using a common sense approach,
Plus risk management, position sizing, discipline, surviving long-term and much more.

Disclaimer:

Trading in the financial markets involves a substantial risk of loss. All content produced by Better System Trader is for informational or educational purposes only and does not constitute trading or investment advice.

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Better System Trader

236: How to Profit and Protect in Any Market Conditions - with Tom Basso

Episode guests

Podcast summary created with Snipd AI

Quick takeaways

Deep dives

Tom Baso's Journey in Trading and Retirement

Position Sizing and Risk Management

Longevity Tips for Traders

Diversification Strategies and Common Sense Trading

Balance and Discipline: The Keys to Longevity in Trading

Diversify to Prosper: A Portfolio of Many

Navigating Investment Potholes: Embrace Strategy and Diversification

Diversify Wisely: Seek Uncorrelated Assets

Remember Everything You Learn from Podcasts