I have a saying when it comes to trading; “Everything works & nothing works”
How many times have you tried new or different trading methods or proclaimed that a method just doesn’t work?
I reckon most people in trading have lost count but that doesn’t matter because there is a very valid reason for trying lots of different things in trading which is the requirement to find something which suits your trading style, temperament or timeframe.
We are all different in that respect but a lot of the time, people dismiss methods wholesale, simply because it doesn’t work for them.
The truth can actually be quite painful.
How long did you actually spend trading a new method or tweaking it before ditching, proclaiming its uselessness? Not long enough is the most common answer.
One of the big keys to trading success is having a method & growing with it. For example, most people know that I am predominantly a pivot trader & have been for the past 8years but it really wouldn’t take me long to do a search & discover that actually pivot trading doesn’t or cannot work in other peoples so called expert opinion.
Look close enough & you will see where its all going wrong for a lot of people in trading.
See, I’ve been trading, nurturing & analysing pivot trades for a long time & that doesn’t stop because that is MY preferred mode of trading. It works for me. But within that I also know when to bail a pivot trade before hitting its target,avoiding an entry or maybe even lowering my stake size due to other factors. Each pivot entry will have its own set of circumstances that will dictate how or if I enter.
If I hadn’t of spent a lot of time with pivots then I wouldn’t know any of this & I would just lazily enter a trade “just because”. By the way, there is nothing wrong with doing it this way however it is the management of the trade that becomes more important than the entry.
For example, when I record our members video describing that days market activity I will often say “that’s a break even trade at worst” – this means that a pivot trade was in progress, had gone 10-15pts in profit before reversing. Once its gone into that much profit there is no way I’m taking a loss on that trade & my stop is already at break even.
However others without too much knowledge would allow that trade to reverse fully on them & then continue to hold the losing trade in the hope it pulls back round for them. Again, there is a method in that madness but would require hedging the losing trade at a sensible gap & then continue trading in the opposite direction. until the market either returns or carries on & you decide to close out at a much smaller loss.
As I say, everything works & nothing works – its all down to the person in front of the trading screen. Make sure, once you find a trading approach you like, stick with it like glue & nurture it, build upon it & discover its weaknesses & how to deal with them.
If you don’t do this then you are going to be going round in circles for a long time, or worse still, get dumped out of the trading game.