During my investment and trading journey, I have spent hundreds or even thousands of hours in attending previews, seminars, webinars, read lots of books and have spoken to many trading experts as well as people who have no trading knowledge.
People learn many different strategies using various indicators and approaches from many different trainers, from internet or even books.
Most people would say that some worked better than others and some say that they do not work at all.
My Personal Thoughts
Let me tell my personal thinking. I would gladly say that the strategies and the indicators that you have heard of,
“All of the Strategies That You Have Learnt Worked!!”
Many people would blame their losses due to non-working strategies, lagging indicators and the lack of confidence in the execution due to insufficient knowledge. There are also other areas of “blame” which I will not be mentioning in this article.
I would also say that the important part is not on the strategies itself, it is about applying them to the right scenarios.
“It is just that you have applied them in the Wrong Scenarios!!”
Moving Averages and other indicators
For those who have learnt moving averages and a few other indicators, do you just use them in all scenarios. Of course you will, because that is the acquired knowledge.
For those who are skilled in chart patterns, do you use that to make the money. Of course you will. That’s another of your acquired skills.
And those who are skilled in Price Action will use that to their advantage as well.
That are also other areas in which people are skilled in which I did not mention in this article. There are also people who are skilled in various areas and they would apply them in their trading.
So what is the deal here?
The deal is, regardless of what skill sets that you may have, if you are losing money, it would only show that you do have the skillsets but you may be using them in the wrong scenarios. By just adjusting this portion, you will be on your way to a greater Money-making journey!!
I have been through the same journey as most of you been to. The road is tough but the road is worth it. Due to the unfortunate bumps and dumps that I have stepped into, my learning route may have taken a longer route than many of you. For those have just started or are still on the road, you can avoid some of the mistakes that I have done.
The Common Mistakes
- Stop loss helps to minimise loss.
- Yes, it helps. Please place stop losses.
- Bear in mind that stop losses are still losses. If I get many stop losses, it would also mean that I am applying the strategy in the wrong scenarios.
- Be consistent in your strategy.
- Consistency in the execution is precious
- Bear in mind that it is important to be consistent in looking out for the right scenarios.
- Using the only strategy that you have learnt in seminars
- Using the only strategy that you have in the seminar is good.
- Bear in mind that it works for only certain scenarios, and the “greed” factor in human being (maybe it is just me) may propel you to use in all scenarios.
- Looking for the next “Holy Grail”
- People tend to look for the next “better” strategy to use.
- Bear in mind that, no matter how “good” the next strategy may be, it could only be used for certain scenarios. In this sense, it is not much better than your previous strategy.
All Strategies Are Good.
You already have the skillsets.
No need to look for the next “better” strategy.
You may just be applying to the wrong scenarios.
Start Adjusting Your Known Skills in the Right Scenarios!!
Share this with all your trading and investment friends.