Remember when we first started on trading, we started with technical analysis, we don't know what the fundamental is, don't know what Quantitative Easing is, don't know why people call Gold a save heaven investment, don't know what is "carry trade", we don't know many things...
We only have some technical analysis terms, drawing lines here and there, we only do what we know, and we make sure we do it.
We made progress, and within a month we make good progress, how to define "Good progress" -- to the beginners, and generally, good progress means "Profit". We keep talking to ourselves that "we are new", "market is risky", "we need to be careful"...
Time pass, we continue making progress, and 6 months has passed.
Our account doubled, tripled, or quadrupled...
We started looking into different type of things, technical, fundamental, psychological...
We thought by doing more things, we shall make better money, we are expecting more.
So, is that important?
That is important for sure.
Is that effective?
I remembered Sifu DAR Wong talked about effective trading during the last Live Trading session.
Only trade with the setup,
When there's a setup, we trade;
When there's none, we do not trade;
We cannot create setup.
Setup can be daily initial shadow; can be anything like the EMA crossings, e.g. fast line crossing the slow line.
But a complete setup shall consist of following:
Money Management -- contract size / position sizing
Trade Setup --
Entry,
Stop Loss and
Criteria to move SL,
Exit (Price Exit, and/or Time Exit).
If the losses have put you off, take time to rest, do something else that you enjoy.
Come back later, and we are always here.
Winning Trade, Losing Trade, Profitable Trade, Good Trade, shall not change our mind, we aim for consistency and we aim to learn a life skill. Result will come as long as we focus on the process, always monitor the cause and effect, be effective, and do what we know best!
