Wednesday 22 August 2012

Master The Method


Theres many ways to skin a cat and with all the fancy whiz bang indicators these days multiplied by the currencies and different timeframes there are so many different options/styles on how to trade. This is where I believe most people get lost. They hear someone on twitter or a blog post some winning trades and maybe that individual is using a 7, 31 and 79 moving average (I just used numbers from my birthday but hey who knows maybe they are the holy grail....lol) or someone else is using the MACD with different settings and so the aspiring trader thinks this person has the answer or the SECRET. Well the truth really is that the only difference between the successful trader and the unsuccessful one is that the successful one has mastered their method/strategy. The successful trader has defined their edge and know what they are looking for and when it happens they strike. The reality is from my experience all strategies work some of the time and it is your job as the trader to figure out how to make the strategy work most of the time. This may mean sitting doing hours of testing and finding the nuances to the method but in the long run it will be worth it.
Once you understand what defines a high odds setup then just hunt them. This may mean sitting there for days waiting for a setup to form and if you struggle with this its not methods/strategies or setups you need to work on its you PATIENCE! Ive heard WMD aka Will Hunting ask a very valid question which is "Whats the minimum number of trader to take a day?" Think about it for a second and if your answer is greater than 0 this could be where you are getting in trouble. If you trade on timeframes like the M15 or higher I do not believe you can get really high odds setups every day or at least this is the way that I see the charts anyway.
Ive noticed common patterns/setups occur on the chart regularly but they dont occur every day so when the pattern/setup happens then I know what to do and this is what Im hunting.
Remember the key to successful trading is "MASTERING THE TRADE NOT BEING A JACK OF ALL TRADES"

J

2 comments:

  1. Very bad technic...lol. He will visit the chiropactor a couple of times...lol

    ReplyDelete
  2. I hate to think what my coach at Crossfit would do to me if I tried to lift like this...haha!

    ReplyDelete