KISS.. keep it simple n sempoi Your trading system should not have a lot of indicators…. Maybe one or two indicators are fine – just so that you don’t waste a lot of emotional energy trying to make ‘em all line up before taking action… When you keep your trading simple, they’re easy to repeat… They need to be repeatable for peace of mind – almost like a no-brainer… Kind of like “punch the clock” type of trade setups, know what I mean? Not only that, they also need to be measurable as well… Peter Drucker, the famous production management guru, stated, “what gets measured gets managed.” How do you know if you’re making progress with your trading? Simple. You measure them. Or parts of them. By recording all of them in some kind of a trade journal… Or put them in spreadsheet… So that you can calculate all the different matrices that matter to you… Like % win/loss, Expectancy, or whatever fancy-shmancy rocket science stuffs that tickles you… Again, the simplest, easiest way to measure your trading performance is to keep it drop dead simple… There’s that word again…simple… Just how “simple” should it be? I’d say if your teenage son or daughter could understand what you’re doing, that’s a pretty good yardstick .. Yep, simple enough for your mom-in-law as well, too
Posted on: Mon, 19 Aug 2013 06:20:58 +0000
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