How I became consistently profitable (Base Hits)

About this video

• Video Title: How I became consistently profitable (Base Hits)
• Channel: Trades by Matt
• Speakers: Matt
• Duration: 20:20:16

Overview

This video explains Matt's "base hits" trading strategy, which focuses on achieving small, consistent wins rather than chasing large, infrequent profits. He shares his personal journey, illustrating how this approach transformed his trading results, improved discipline, and helped him manage risk and emotional capital. The strategy is inspired by the Moneyball concept of getting on base to win games.

Key takeaways

• The "Base Hits" Strategy: Focus on achieving small, consistent wins (10-15 points on Nasdaq) rather than aiming for large, infrequent "home run" trades. This approach is inspired by the Moneyball principle of getting on base to win.
• Origin Story and Transformation: Matt shares a personal anecdote about a significant loss on the first trading day of 2021, which served as a turning point, leading him to adopt the "base hits" strategy. This shift resulted in over $300,000 in 85 days.
• Risk Management and Mindset: The strategy emphasizes taking calculated risks ("cheap trades") and exiting when a trade is invalidated, rather than holding on for larger potential gains. It also helps manage emotional capital and avoid depleting one's "gas tank."
• Passing Evaluations: "Base hits" are presented as a key method for passing prop firm evaluations, particularly those with trailing drawdowns, by ensuring consistent small wins that grow the account and trailing stop.
• Personalized Approach: While Matt targets 10 points on the Nasdaq, he stresses the importance of analyzing personal trading data to determine what constitutes a "base hit" for individual strategies and assets.
• Patience and Discipline: The strategy requires significant patience and discipline, as traders must resist the urge to chase bigger profits and be comfortable taking smaller, consistent wins. This is crucial for long-term success and avoiding emotional trading.
• Defining "Enough": Matt suggests comparing trading income to previous job earnings to establish a realistic and comfortable profit target, combating greed and promoting consistency.
• Actionable Questions: He provides key questions to ask oneself before and during trades to ensure discipline, manage risk, and avoid emotional decisions.