The Traders Journal

Tensile Trading: The 10 Essential Stages to Achieving Stock Market Mastery 1st in a Series


ImagesWarren Buffett once said, “You only have to do a few things right in your life so long as you don’t do too many things wrong.”  The objective of this new series of blogs is to increase the probabilities that you will do more “things right” and fewer “things wrong” as an individual investor. 

I’ve been an active investor for over 40 years – the past 25 years as a full-time trader.  Essentially, this series of blogs is as if you’d been peering over my shoulder all that time, witnessed what was consistently profitable and embraced those elements by incorporating them into your own trading plan. 

Decades of experience have convinced me that the investment universe is very much like the infinite night sky as seen from the Mauna Kea Observatory in Hawaii (something that should be on every investor’s bucket list).  The number of options, possibilities and alternatives – like the stars – are truly mind-boggling and overwhelming when laid out before you.


What I will do over the next 10 weeks is to help you corral this financial infinity and present to you a proven and comprehensive paradigm.  It is a paradigm that will cover all the essentials and provide a solid foundation upon which you can build your personal investment plan – one that is flexible, customizable and has no gapping omissions, thereby saving you potentially years of senseless excursions down costly dead-end stock market roads.

For seasoned investors, I offer you these 10 stages as a comparison to your own investment roadmap.  I can assure you that you’ll discover enough insights from my trading experiences to justify the time reading this series of blogs.

My major motivation for having a written trading plan is that it facilitates the all-important investment feedback mechanism.  Without a plan, you are more likely to be just a one-hit wonder.  Trading lessons and experiences – both positive and negative – will vaporize if not continually incorporated into updates of your personal roadmap.  But what does that roadmap look like?  Tensile Trading’s 10 stages will allow you to accurately compartmentalize those precious trading lessons and build upon your successes as you continue to evolve into a consistently profitable investor. 

The organization provided by the Tensile Trading framework and your discipline incorporating and updating your investment lessons into your framework will prevent you from doing the same thing again and again but expecting a different result.  Three benefits to this approach are:

  1. It will accelerate your personal investment journey.
  2. It will boil down the vastness of the investing universe to its essentials and help keep the complexity at bay.
  3. It’s a proven comprehensive money management roadmap which is easily customizable to fit your own lifestyle as well as your particular investment approach.

Each week, we’ll discuss in detail one of the 10 stages.  Here are examples of some of the key takeaways:

  1. We’ll discuss how to produce the highest probability trades by effectively aligning markets, sectors, industries and equities.
  2. We’ll help you organize your chartlists to maximize your analysis and minimize your time.
  3. We’ll make a case for carefully matching your lifestyle to an appropriate money management strategy.
  4. We’ll present 10 core technical indicators that focus on trend, volume, momentum and price relative analysis.
  5. We’ll explore the importance of your mindset and the investor self.
  6. We’ll make a strong case for you to embrace the powerful “sisters” strategy for stalking, buying, monitoring and selling your positions.
  7. We’ll blend the best of fundamentals and technical analysis together into rational analysis.
  8. We’ll review selling strategies that improve the bottomline for everyone from beginners to experts.

At the culmination of these 10 weeks, you will have significantly increased the probability of becoming a consistently profitable investor.  This transformation and personal mastery is possible, but your desire and vision for yourself are only a few of the catalysts.  It will not happen immediately but over time, as long as you believe in your potential and are determined to do what it takes to achieve this mastery.  And who knows – you might wake up one morning and realize you’ve become an overnight success!  My point is that a great deal goes into making this magical moment possible long before the magic actually happens.  These next 10 weeks will help accelerate your arrival.  I invite you to join me.  You’ll be pleased you did.

Trade well; trade with discipline!
-- Gatis Roze

Gatis Roze
About the authors: , CMT, holds an MBA from the Stanford Graduate School of Business and is a past president of the Technical Securities Analysts Association (TSAA). He is also the co-author of Tensile Trading: The 10 Essential Stages of Stock Market Mastery (Wiley, 2016). A full-time investor for over 25 years, Gatis has taught sold-out investment courses throughout the Pacific Northwest and beyond since 2000. Learn More

Grayson Roze
is the author of Trading for Dummies (Wiley, 2017) and Tensile Trading: The 10 Essential Stages of Stock Market Mastery (Wiley, 2016). He has worked in the financial services industry for since 2012, and now serves as the Business Manager for the company. He holds a Bachelor's degree from Swarthmore College. Learn More
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I just want to thank you for you generosity and extend to everyone at StockCharts. The combination of these blogs and the guidnace at SC have transformed me. I am looking forward to this series.
Fantastic idea. Can't wait for the next 10 installments...
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