Finding our trading style is essential. Most of us bounce around different trading systems, methods and personalities looking for what is right for us. And what is right for us is not necessarily right for many other traders. The combination, and therefore choice, of indicators, methods, timeframes and systems is massive.
A trading strategy that matches our personality, time and commitment will not happen immediately. Most of us (me included) try everything that we can find – thereby being driven by the characters of the people encouraging us to use (and pay for) their system or method. This is a time-wasting and expensive way to go about things. Not only expensive because we pay for the system, but also because if the system does not suit our personality, then the expense comes via our inevitable trading losses.
It only occurs to me now that instead of following the suggestion of a well-meaning friend or well worded promotional material we should analyse ourselves and find what would be best for us. At least narrowing down the search so we have a better chance of finding whats right for us. The same applies to investors to a large extent.
The mystique surrounding trading makes us reluctant to make our own decisions, as we feel that we don’t know enough about it to decide, and it is far more straightforward just to follow a suggestion from someone who claims to be very successful at it. Well, that is a rubbish way to go about it. The basics of trading couldn’t be more uncomplicated, but is made difficult by its language; therefore, the first thing to do (as a trader or investor) is to learn the language.
You will be surprised at how simple trading and investing is, once you get past the coded words. I said trading couldn’t be more straightforward, and that is true, but transforming that into something that provides a consistently profitable return is quite another thing. But there I go, like everyone else, bringing in the mystique again!