K I S S is the way forward
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Posted by ray under Psychology
I have offered to do another blog today for our mentor , and in view of the forthcoming intensive course of Habits of Success , I feel a topic on keeping it simple is timely.
KEEP IT SIMPLE, STUDENT (STUPID, is the saying). KISS, the acronym, is what traders should aim at, whether a novice or advance trader. It is easy to recall: ‘Keep it simple, stupid .’ However, I prefer to say ‘student’ , as a courteous way to address all levels of traders, who will probably react more positively , than if addressed as stupid!
Courtesy aside, when we keep our approach simple, we will work better, and therefore trade better: just as Murphy’s Law states: if anything can possibly go wrong, it will go wrong. Which brings me to John J Murphy, a veteran technical analyst, author and CNBC resident technical analyst, who remarked that his work has become better due to simplicity , recently at a conference.
How simple could a trader be? Well, speaking for myself, I do not rely on the free indicators , such as, Relative Strength Index, Moving Averages, MACD , although I rely on some, like trendlines, triangles, double tops and Fibonacci retracement levels in my analysis.
As a slightly advance trader than a novice, I use a combination of tools to take a trade, such as Barros Swings, Ray Wave , Basic Market Profile and subscription to Market Analyst and Market Delta. Looking at various time frames on charts on Market Analyst using Barros Swings and Ray Wave will give a better perspective of the market.
Readers may want to refer to Ray Barros : The Nature of Trends (Wiley Press), to understand what I am talking about. Although my approach seems simple because one has to maintain a set of routines daily to prepare for the market before it opens, having the discipline to keep simple routines is not so simple. In fact, I stick to a daily routine of multi-tasking, with my own blogs at various websites such as Idkit, among others, in addition to getting ready for trading when the US market opens, which is night time in Singapore.
Attendees of the Habits of Success seminars or webinar (first held recently), are the yardstick to go by regarding making daily routines as a discipline. It sounds simple to inculcate a daily routine , taking baby steps as Ray believes in the Coyle approach, but the number of attendees who have great difficulty putting into practice these baby steps, shows it is far from simple, a great hurdle, in fact.
It takes a lot of discipline on the part of the students to work at a simple routine, spending just a little time each day, to work slowly into a good habit of success. Hence, the necessity for some to have a long hand-holding with a mentor, to build up a simple routine of good habits.
Once, this hurdle is overcome by the students, they are on the way to a simple approach to keep a routine of good habits, which means success. They can then KISS goodbye to bad habits!
ANA aka IDkit
Ag Moderator
