Choose your Tools Wisely

I have been conducting weekly webinars every Sunday for over years and I now have a fair bit of understanding of what most people coming to markets have in their mind.

Most of them feel that they need to know or learn about a lot of things in order to be profitable. And most people believe they have to identify some secret scanner or formula or something special to make money in the markets.

Trust me, none of that is required. Consider a classic example of our college/post-graduate days. I am sure most of us would not have studied the entire syllabus for whatever reason. There may be a few topics that we either did not like or understand.

We might have therefore omitted those topics and still managed to not only pass the exam but score high grades too. This is because we were confident with the topics we studied, and we are fully proficient in them.

The same logic applies to trading as well. To be successful, you just need to be good in a few areas and can afford to be ignorant about a whole lot of other stuff. 

But you, as a trader/ investor is unique in terms of risk profile and psychological make-up. And everyone trades their belief about the markets. That being the case, you need to develop a system that suits your personality and belief system.

We as mentors can only equip you with the tools. We can teach you how to handle a spanner, wrench, screwdriver, and hammer. You will have to decide whether you want to become a carpenter or electrician or plumber and then pick the appropriate tools.

If you are not sure about what you want to become and try to learn the usage of one tool after another, then it will take you nowhere. Am sure as a trader, you do not want to be in that camp.

So, focus on your time frame, your trading style and then pick and choose the tools that will suit the task at hand. And remember, in order to be a profitable trader, you just need a system with a risk-reward of 1:2 or better, a win ratio of 35% or better, and a reasonable drawdown which is contained within say 15%. If the risk-reward is higher than 1:2, you can compromise a bit on the win ratio and vice versa.

So, put an end to the search for that magical scanner or secret Fibonacci number or something more mysterious. None of that is required. Focus on your needs and pick your tools wisely.