How to overcome "Analysis Paralysis"?
We are into July this month, 6 months has passed for the year 2017. For those who are serious and would like to take this as your new business, how is your progress?
Are you having too many indicators, too many consideration in your mind that you are always over analysed?
Trading are very simple processes. Unfortunately, most traders try to make it into something much more complex. [Maybe deep inside you, you do not want to do things that are simple, this might make you look stupid, and therefore, you always like to do lots of analysis]
Ed Seykota said: “Everybody Gets What They Want”!
** Recently someone just commented on me: "actually you know very little about T.A., your success is because you know how to "read" the market, which is the most important key". I don't deny that I know very little T.A., because my mentor only teaches me that handful many years back. And ok, I am not a smart girl that can cope with so many. Therefore, I only use that few indicators as SIMPLE guidelines for my daily trade plan.
Let me use few of my tools to show you the performance of Nikkei 225 in June 2017. I'll be using Fibonacci (when you see my chart indicate: SLBW, EXTN FIB), PAPLines & SkyLand.
I will pair:
1) SLBW with PAPLines
2) SkyLand with PAPLines
3) Pattern with PAPLines
4) EXTN with PAPLines
** Eyes & Mind can only see and act on very clean chart, therefore, only have 2 indicators to act as one trading strategy.
Position size are constant. (Maths very poor, so, this remain constant)
1) SLBW with PAPLines ==> 25 lots
2) SkyLand with PAPLines ==> 6 lots
3) Pattern with PAPLines ==> 25 lots
4) EXTN with PAPLines ==> 10 lots
SLBW only came for 2 days in June 2017, Pattern only happen once, price touches SkyLand 10 times, the rest are no activity day.
First, I'll pull out SkyLand (Moving Pivots) & PAPLines from my tool box and place it in the chart.
How to use this tool?
>> If price is at Sky as well as PAPLine-R, we are looking to Short Autumn sell signals.
>> If price is at Land as well as PAPLine-S, we are looking to Long Spring buy signals.
Out of the 10 trading days of just focusing on SkyLand with PAPLines, be prepared that there will be winning and losing trades along the way.
The only constant is, pairing SkyLand with PAPLines and size are constant.
Next, we have 2 trading days that I have the opportunity to use SLBW with PAPLines.
A painful first trading day, but it compensate immediately on the second day.
Last chart -- Pattern
Whatever balance are charts that are not trading at SkyLand, not giving us Patterns and not giving us any opportunity for SLBW.
Some people like to do back testing, I am doing this for you for the month of June 2017, pairing with just 2 indicators at any one time. Only trade when price meet the criteria, stay out when it is not.
Outcome for June 2017: POSITIVE
Answer to my question on how to overcome "Analysis Paralysis"? Keep it SIMPLE.
If you are serious with this trading business, you don't mind to be SIMPLE, maybe it's time for you to think of what do you want to place in your chart and how to make it SIMPLE.
Have a nice weekend.