Are You Still Looking For That New Scanner or Indicator Part II?
- : February 28, 2021
- : B. Krishnakumar
Hope you enjoyed last week’s post. If you realise the underlying message in that post, you might not be as excited about the new version of the Tradepoint software released yesterday. Am not suggesting that you should shut-off new learning or understanding new concepts. By all means do that. But this does not mean you should keep tweaking your system or process to accommodate new features or learning.
To be honest, I was excited too regarding a few indicators. The key aspect to consider is will the new feature or tool enhance your expectancy in trading. If so, how? You will have to backtest it and convince yourself that it indeed enhances the expectancy. If not, just move on.
The above quote is extremely relevant to trading. In my case, I will observe and jot down the impact of the new indicator which I plan to use. I would observe this for at least the next 50 trades or more and assess if this new indicator will help me make more money as a trader. If not, I will ignore this and that is it.
If your trading style and the process (trading system) are not in sync, then you will feel unsettled and would keep looking around for new tools and new indicators. If this is the case, then put an end to this search and use the tools available to develop a process that suits your style.
Consistent profit happens when the intersection between the two circles in the above graphic gets bigger. I wish to share my journey as a trader. But that is for next week. Best wishes.
You make money if your risk-reward and win ratio are healthy. Using a new indicator or scanner will not magically make you a profitable trader. Remember, your ultimate objective as a trader is to make money.
Once you get to the stage where you are making money consistently, you can then look around for ways and means to improve the net profit (also known as expectancy) per trade.
If you are someone who is still struggling to make money consistently, then avoid this search for new tools, new indicators, or new charting method. The problem lies elsewhere, and you are heading in the wrong direction.
The problem in such instances is more likely to be the gap between your trading style and the tools you are using now. Have a look at the graphic featured below.