Episode 001: Jason Stapleton on Technical Trading Systems and Losing Everything on Penny Stocks
Jason Stapleton is one of the founders of Trade Empowered and a managing partner of Harborsite Capital. Jason’s heavy focus on trader psychology, along with his in-depth knowledge of advanced technical analysis, gives him the unique opportunity to work with traders of all skills and levels, helping them to achieve a higher level of success and understanding in the foreign exchange market.
Economics and Finance Themes:
In parts 1 and 2 of the Economic Rockstar interview with Jason Stapleton, Jason mentions and discusses: technical analysis, trading strategies, stock market psychology, behavioral economics, herding behavior, Gartley patterns, harmonic price patterns, Fibonacci numbers, fundamental analysis, probability, the Turtle Trader story, rational and irrational behavior.
Jason’s Influencers:
His business partner Todd Browne, options trader John Carter, systems trader Larry Hite and trader Mike Bellafiore.
Find out:
In this first part of the Economic Rockstar interview with Jason Stapleton, Jason shares with us some thoughts on technical analysis:
- how Jason lost all his money when he first started out trading in penny stocks.
- the number one reason why people become traders.
- how to create a competitive edge in the financial markets.
- about systems trading and the Gartley pattern.
- how working on probabilities is better than certainties in trading.
- the importance of stop-losses.
- the importance of backtesting.
- how price patterns can reflect human behavior and and how you can trade based on the expectations of other traders’ decisions.
You can check out and listen to the second part of this interview here.
Advice:
- Jason advises that the key to successful trading is to develop a trading strategy and emphasises the benefits of backtesting – “the real benefit of backtesting is the psychological aspect.” Find out more on the benefits of backtesting in this interview.
- On stop-losses: “Know where you’re getting out before you get in.”
- “Most people in life settle for some level of mediocrity between total failure and their true potential. They just settle in life. I would just simply say don’t settle. I don’t care what it is you do, don’t settle. Be exceptional at what you do.”
Personal Habits:
A background in the Marine Corp instilled a discipline that Jason could use to his advantage in trading financial markets. Jason admits that he was average among his group at the Marine Corp but he was willing to work longer, harder and faster than anybody else to be successful. Jason carried this attitude with him to learn how to trade the markets, experiencing losses and gains along the way and eventually building his multi-million dollar business, Trade Empowered, from a $900 initial investment.
Takeaway:
Recommended Books:
- Trade What You See: How To Profit From Pattern Recognition by Larry Pesavento
- Harmonic Trading, Volume One: Profiting from the Natural Order of the Financial Markets by Scott M. Carney
- Harmonic Trading, Volume Two: Advanced Strategies for Profiting from the Natural Order of the Financial Markets by Scott M. Carney
- Technical Analysis of the Financial Markets: A Comprehensive Guide to Trading Methods and Applications by John J. Murphy
- Market Wizards by Jack Schwager
- One Good Trade by Mike Bellafiore
Favorite Internet Resource:
Where to Find Jason Stapleton:
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