K.I.S.S. Keep It Simple Stupid:
I take great liberty in using the word “stupid” and mean no offense. However, if you had made as many “stupid” trades as I have over half a century you would accept the word as being most appropriate. Just as K.I.S.S. applies to so many things in life, it most assuredly applies to anything you might do in trading or investing.
Your ability to absorb and maintain the deluge of economic and technical information is limited by your mind’s capacity. Just try remembering10 two-digit numbers and you’ll probably find that you have trouble recalling more than five of them. If you attempt to digest too much information that requires you to use more capacity than you have, then you are setting yourself up for failure..
But please note that keeping it simple doesn’t mean that you should not sort through the vast amount of information available about the market and select only those bits that you deem most important..
An overload of information can only result in a chaotic mind. Simplify the chaos in your mind and you’ll simplify the process for selecting your next trade. Settle upon a simple system that gives you a few signals at most, and a system that only requires that you look at the market three or four times daily. I suggest reviewing the market pre-opening, immediately after ther opening, late in the trading session and after the close. Through each of these four reviews prepare yourself for the possibility of unusual and unexpected market activity and be prepared to respond quickly. It sounds simple, but far too many traders do not prepare beforehand.
Similarly, at the end of the day you need to ask yourself, “Did I make any mistakes today?” A mistake, by the way, has to do with not following your plan. However, if you did make a mistake, then plan how you will avoid that mistake in the future. Conversely, if you have just followed your plan and succeeded, give yourself a high-five and recount the successful process in your head once more.
Success comes from following simple steps. When you understand that and practice it, your percentage of winning trades will increase substantially..
