How simple is your trading process overall? Did you know that many traders choose to complicate their trading more so than simplifying it. It is a true flaw that many traders fall into and there are many reasons why we and many of us do it. Partly it is human nature. In this article and video I will focus on why it is so common.
First of all, I am not saying that everyone does this, just that many people fall into the belief that the more junk they put on their screen the more likely they will be right about a trade. The truth is the more stuff one puts on a chart the more likely they will get confused and be wrong about a trade. I firmly believe and like I said in many of my videos that I have brought out over the last few years is that keeping it simple in trading is always the best.
The Market is Not Complex..
Now, you maybe wondering why? Well, because the market really is not that complex, it is quite simple, it moves in three major ways, it trends, it respects major structure and it abides by price action. These three simple processes are simply all a trader needs to know. They do not need some complex stochastic cross formula or some complex macd cross formula or some moving line telling them the market is up. The chart can tell its complete story simply by looking at it and that is all you need overall. And that is the only skill set you need to know..
Keep It Simple
Well, I think you get my point here, many traders spend hours and hours, days in fact sometimes ridiculous amounts of time researching this and that or applying gosh knows what to their charts to get an edge but in the end it usually always ends the same, keep it simple, keep it real and keep it profitable and learn the skill set as a simple approach as I suggested above.
That is all anyone needs to know, the market repeats itself often and all a trader needs to do is look at those repetitions such as major structure ( The Engulfing Trader as an Example ) and Trends and apply a strategy to that knowledge.
You see, here is the thing, the market kept saying for years over and over prices were going lower, in fact Gold was in a downward play for years. People were too busy learning aspects about that market that they thought they had an advantage with, but did they? The truth is a young kid with basic trend and major structure knowledge and having no complex formulas could of out performed CEO’s and all these hedge fund managers that thought they were right on this one just by looking at a simple price chart and looking at what exactly the market is saying right now and not what the news or some economic calender is suggesting.
Once again everyone, happy trading, keep it simple, keep to what works and speak again soon..