The Responsible Trader’s KISS
The Responsible Trader’s KISS
One is good. Two is better. Three is best. More than three can cause complications and confusion. For the ladies, before you start thinking that I am a male chauvinist pig and start bashing my head, I am talking about technical indicators not women.
Too much of a good thing can be bad for us. In the corporate world, when we want to avoid long-winded presentations and explanations we always state the acronrym: KISS – Keep it Simple, Stupid!
In Responsible Trading, we always would like to make things positive. In Responsible Trading, KISS means – Keep it Simple and Sustainable.
Except for TRUTH, everything is relative. What is easy for you might be difficult for me. What is easy for me might be difficult for you. What is simple for you might be difficult for me and what is simple for me might be difficult for you. I can go on and on and on ad infinitum.
As we always keep on saying, trading is a personal thing and it is always based on probabilities. Market action is the result of the confluence of all factors – economic, social, political, emotional and market manipulation to a certain extent. Therefore, the market is the final arbiter of our trading decisions, assumptions, perceptions, prejudices and bias,
Trading legends, professionals, experts and pundits, always emphasize the need for a trading system. A trading system can be as robust as a business plan or as simple as a chart analysis with entry, exit and stop loss points put on paper. The most important thing is whatever you decide to do, it must be something that is sustainable – something that you can easily maintain, does not take too much of your time and you can do it regularly. There is no use designing an elaborate trading system and then spend most of your time attending to it. The purpose of preparing a trading system is to make trading decisions not to produce a beautiful piece of paper.
Next time you prepare your trading system, remember The Responsible Trader’s KISS – Keep it Simple and Sustainable.
Have a blessed Holy Week everyone.