Trading is not easy… especially short term trading.
But the lack of ease has nothing to do with trading itself and everything to do with who we are as “rational” human beings. We do everything in our power to take the simple and make it complicated… convoluted… difficult.
Why do we do that? Who knows…
- Why do you just have to have that one more piece of cake?
- Why do you continue dating someone that is CLEARLY a dead end relationship wise?
- Why do you keep allowing your money to be managed by someone who hasn’t made you any real money… in years?
I suspect you do at least some of the above along with making trading more difficult than it should be because you don’t know any better… you think trading is SUPPOSED to be complicated because that’s what you’ve been told.
As an example, have a look at the video below. In it Jim Cramer (a recent convert to the power of charts apparently) gives credit to Carolyn Boroden AKA the Fib Queen for a prescient trading call in oil. Boroden is a well-known and respected technical analyst who specializes in time and price relationships on charts.
To be sure, I’m glad to see Jim Cramer acknowledging the power of charts as part of a broader analysis. It almost rises to the level of TrInvesting™. Further, the Fib Queen made a good call in oil.
However, the reality is how she got to her conclusion while highly specialized, was neither mind bending, nor was it a conclusion that could not have been reached in a far less complicated manner. In essence, she is saying trends persist…
Things that are going up, tend to continue going up. Things that are going down tend to continue going down.
I know… brilliant…
The Bottom Line
You don’t need a fancy approach to make money in the markets. In fact, the simpler, the better. Once you find that simple approach make it your own, then mine it into perpetuity.
Leave the fancy stuff to fancy folks…
Yeah, I said it.