I have found over the years that I have been trading that most traders want to make trading complicated. It’s not their fault, it’s what they’ve read about, heard in chat room, or saw on trading forums. More monitors, more markets, more setups, more indicators. The list goes on and on. Just keep adding to and complicating your trading because it’s that “one more thing” you need to finally be successful right? WRONG! It’s the exact opposite.
Trading 101 is the chapter most traders skip in any of the technical analysis books. They jump right to the indicator section, you know, the section where you are going to find that one special indicator that you can use to buy bottoms and sell tops. In that search for the Holy Grail, they forget to learn the basics. The basics are not clever, and you won’t impress anyone by trading them, except your banker. Because it’s the basics that make the money hands down over any of the over complicated methods or systems that traders try to implement. Trading is simple. But that does not mean easy. So we don’t want to complicate it to make money. The basic strategies that we employ at eminimony every day have worked for years. They worked yesterday, worked today, and will continue to work tomorrow….because they are built on sound principles that will never change.
Keeping your trading to basic strategies will free you up mentally and emotionally during the day. I used to have 5 monitors, now I have 2, and only one is used for trading. My profits did not suffer. Just the opposite, my profits took off. I narrowed my focus and my trading went through the roof. Why? Because I did not over think it. I was not caught up in the paralysis of analysis. I was free to simply observe and execute my trades as they unfolded rather than going looking for trades using the “indicator of the month”. You don’t need anything proprietary to trade profitably in the emini S&P. You only need a thorough understanding of how the market works and that is once again, back to the basics, the chapter you and most everyone else skipped.
Look over your trading and apply the 80/20 rule. 80% of your profits come from 20% of your method. Scrap the other 80% of your method and free yourself up to trade effectively the most basic of your setups, then simply do that over and over again every day and your account will blossom before your eyes. You will have more free time and you will have less stress. Trading will once again become fun again. And that’s really the bottom line, to make money while having fun.
Good Trading……JC
