Trading Persistent PullbacksBy Dave Landry “One should not increase, beyond what is necessary, the number of entities required to explain anything.” – Occam’s Razor “Simplicity is the ultimate sophistication.” – Leonardo Davinci In Was Right In Front Of Me All Along I spent many years searching for the perfect methodology. I would wake up early …
Trends don’t seem to last as long as they used to. However, you can’t just sell a market because it is high or buy it because it is low. Top picking and bottom picking is a loser’s game. You’re much better off waiting for signs that a new trend may be emerging and then look to get on as soon as possible.
Most focus on the importance of a viable methodology when looking to trade and forget about the other crucial aspects: the money management and trader’s psychology involved with following the methodology.
Predicting markets is like predicting the weather, only short-term forecasts are viable. Short-term trading has the advantages of generally lower risk but unfortunately, the profits are limited.
In markets, only the short-term can be predicted when any degree of accuracy. Further, short-term trading has the advantage of somewhat limited risk.
Dave shows how many successful traders take the same exact journey. They start with a simple method but slowly make it more complex. They search for the perfect indicators, thinking that if they work hard enough, they’ll find them.