Investing With IBD Ep. 343 How To Keep Your Cool As Markets Approach Year’s End
Oct 22, 2025
Tom Basso, founder of EnjoyTheRide.World and author of The All-Weather Trader, shares insights from his years as a veteran trader. He emphasizes trading in the present rather than predicting the future, urging a focus on systematic strategies. Basso explores techniques for distancing noise, managing risks through position sizing, and utilizing VIX as a hedge. He advocates for true diversification across uncorrelated markets and offers advice on creating a personalized trading system. Discover his methods for maintaining calm and avoiding predictive bias in turbulent times.
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Separate Noise From Information
- Markets contain huge amounts of noise and a smaller amount of actionable information.
- Use multi-day range indicators to separate noise from real trend information.
Size Positions From Risk First
- Size positions by first calculating risk from your charted stop levels, then determine position size.
- Do not pick position size first and then back into a stop price.
Use Ongoing Risk Limits
- Set both an initial risk per position and an ongoing risk limit for each market and strategy.
- Peel off size automatically when a position exceeds its preset percent-of-equity limit.
