"There are more ways to trade than there are markets available.
I'm constantly amazed at traders who once used the simple approach I taught them and were successful in their trading, and then became convinced that it could not work. As time went by someone, or something convinced them that it was too simple and would not be the long term answer they are looking for (even though I've used some of these simple set-ups and strategies for YEARS successfully).
At first this misinformation can cause a conflict in a trader's mindset. They may find themselves sluggish to pull the trigger when they see the simple set-up appear that they have cashed in on many times before.
In their mind they hear the words of a doubter, or another trader who has blown up their account and blames it on a trainer, system, platform, indicator, or some other part of the process.
The trader may become convinced that if you don't have candles on your chart, or some certain indicator, that you are not approaching it logically. Simple becomes a bad thing in their eyes, and they start to look for more complex and sophisticated tools and techniques. Soon they may find themselves in the black hole of technical analysis that Mark Douglas describes in his masterpiece, ""Trading In The Zone"".
What seems to escape their view is that there are a myriad of methods and strategies for trading. Not one of them is THE right or wrong way to do it (though I agree with Mark Douglas that simple is best).
They could come to believe that if you don't have an eSignal account, or some other expensive tool or service, there is no way you can succeed as a trader. As long as that mistaken view is in their head, they have a very slim chance of being successful.
They may do well for awhile and then when a loss comes (and it WILL come - regardless of strategy or technique), they start all over again looking for the one perfect way to trade. When they think they have found it, another BIG loss is looming.
When a trader thinks he has found THE correct way to trade, he does not put a stop behind his trade, or take any precautions. He has convinced himself that he KNOWS what is going to happen, and so there is no need for precautions or any other outcome than what he perceives.
Once the BIG loss comes he is off looking for another system, indicator, or strategy. He starts the whole process again. If they blog about it, you can go back and see that they bad mouth every system, tool, or strategy they ever found along the way. What was great when they first discovered it quickly becomes a scam or rip off.
I've seen this happen over and over again with many a trader. I teach them my basic style and that get's them started. I know that they will need to find the strategy or technique that works well for them, and then stay with it! It is so true that the key to being consistent lies within you. And that there is just NO WAY to become consistent while continuously changing your strategy.
The sad fact is that the majority of traders never feel like they have found it, and they keep on searching or fall out of trading all together. When the real solution was within them the whole time."
Tuesday, August 7, 2018
How To Trade Any Market Correctly
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