The 9-to-5 Trader: A Simple System for Outsmarting the Markets (And Yourself)
Well now, you’ve wandered into the wild world of trading. Pull up a chair and get comfortable, because I'm about to share with you a little system that’s as simple as it is effective. No magic wands here, folks, no crystal balls — just a straightforward trading plan that you can take, tweak, and, most importantly, test for yourself. Yes, you read that right. I’m not giving you my backtests, because if you’re thinking of trading this, you better do your own homework. It's just common sense, right?
Now, let’s get down to brass tacks. This system will be based on three key indicators: the 200-period Simple Moving Average (SMA), the 9-period Exponential Moving Average (EMA), and the 14-period Average True Range (ATR). Nothing fancy, nothing complicated. Just three little tools that can help you figure out when to get into a trade — and just as importantly, when to get out.
The Basics:
Price above the 200 SMA? You only take longs, my friend. That’s your direction. If it’s below, you’re looking at shorts. No flip-flopping here — stick to your lane.
Market opens above the 9 EMA? Well, that's your signal to go long, cowboy.
Stops and targets are determined by the ATR (14). You’ll set your stop loss at 2 ATR and aim for a profit target of 3 ATR. Not complicated math here, just risk and reward — served up plain.
Oh, and one more thing: If the trade doesn’t hit your profit or stop target by the end of the day, you close it out. Simple as that. No holding on for dear life overnight hoping for a miracle. Close it. Every. Single. Day.
Rinse and Repeat:
You’re going to do this every trading day. Wash, rinse, repeat. Now, here’s where I could go on about how beautifully this system works with options — but I won’t. You’ll have to dig into that on your own if you're feeling adventurous. All I'm saying is that if you can’t turn a profit with this in plain ol' stock trading, then options won’t save you.
Now, a Word About You (Yes, YOU)
There’s a little secret that the market likes to keep — and no, it’s not the next hot stock tip. It’s this: The system I just gave you isn’t the hardest part of trading. It’s you. That’s right, your head, your nerves, your psychological profile.
Here’s the thing: All the qualities that make you successful in business or life — hard work, patience, grinding it out day after day — will fail you in trading. Why? Because this isn’t about grinding. It’s about precision. It’s about cutting losses like a cold-hearted robot and letting your winners run. The very same grit that got you that promotion in your 9-to-5 might just keep you in a losing trade longer than you should be.
But, don’t lose hope, dear reader. There’s one thing you can take with you from the business world into trading: belief and confidence. You need to trust your system, and more importantly, trust yourself. If you can't do that, the market will chew you up and spit you out faster than you can say “margin call.”
So, Do You Have What It Takes?
Listen, this little system can be profitable — it’s been backtested and proven to work. But it's not the Holy Grail. The Holy Grail, if you want to call it that, lies in your ability to follow the rules. Not your rules — the system's rules. You see, in trading, the best strategy won’t save you if you don’t have the discipline to stick with it.
Your brain will scream at you: “Get out now! It’s going against you!” Your heart will say, “Just hold a little longer, maybe it’ll turn around.” But, you? You’re going to follow the rules, right? You’re going to put your stop where it belongs and your target where it makes sense. And then — and this is the hard part — you’re going to walk away.
Because at the end of the day, trading is about numbers and rules, not emotions. If you can figure that out, then you’ve got a chance. If not, well... you’re going to learn the hard way.
In Closing
So there you have it, folks — a simple, daily trading system. No fluff, no nonsense. Just a bit of common sense and a whole lot of discipline. You’ll use the 200 SMA, the 9 EMA, and the ATR (14) to guide your entries, your stops, and your profits. And remember — if the market hasn’t hit your target or stop by the end of the day, close it out. No hanging on for tomorrow’s miracle.
But here’s the real truth: No matter how good this system is, your success will come down to you. Your mind. Your ability to follow the rules and let the numbers work. Confidence in the process is key — and belief in yourself? Well, that’s everything.