Finding our trading style is important. 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. To stumble across a way that matches our personality, time and commitment is probably not going to happen immediately. Most of us (and certainly me included) try everything that we can find – thereby being driven by the personalities 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 simply following the suggestion of a well-meaning friend or well worded promotional material (or whatever) we should analyze 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 simpler to just 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 simpler, but is made difficult by its language; therefore, the first thing to do (as a trader or investor) is 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 simpler, and that is true, but transforming that into something that provides a consistent profitable return is quite another thing. But there I go, like everyone else, bringing in the mystique again!