Have I got some news for you or what!? Are you ready… are you sure? Here it is….
The Holy Grail may exist! Woo hoo! But, unfortunately, the Holy Grail of trading strategies, most certainly does NOT exist! I know, bummer, right?
Some claim to have the “perfect” strategy, or the “best” strategy, or the strategy that will make you a multi-gazillionaire over night. I got news for you – they’re lying!
There is no such thing as a perfect trading plan or strategy. If that existed, we would all win our trades 100% of the time, and we would all be wealthy beyond our wildest dreams.
But, the good news is that there are strategies that increase your odds. There are also ways to mitigate risks before you even choose the strategy you want to implement, and that is by utilizing solid analysis skills (doing your homework).
I never enter a position based solely on a “gut feeling.” I never enter a position based solely on “well, it’s gone down this far, it has to turn around.” Yes, I will admit, however, that I do sometimes think those things, but only AFTER I have done my other homework first.
I utilize both technical and fundamental analysis. Some people just use one or the other, and that is 100% OK. I just personally think that they work best when used together. One compliments the other, so to speak. In specific, I believe that technicals compliment fundamentals. What I mean by that is – technicals move based on the underlyings fundamentals. That’s just my opinion. It works for me.
Back to the “Holy Grail” of trading strategies… They don’t exist! You will NEVER find it! So stop looking. Instead, find a strategy that works for you. Make sure that strategy has logic and reason behind it, and make sure that strategy involves some kind of risk management. Over time, if your strategy is solid and it works, you should make money. Will you become a millionaire with it? I don’t know! It’s possible, of course. Anything is possible with hard work and dedication.
Ignore the people that say their strategy is better than yours, or they know more than you do. Blah blah blah! These people, in my opinion, have nothing of value to share with you. They just want to brag and sound cool, but probably are not as smart as they think they are. I’d rather follow the people who are humble and do not push their strategies on me. The people I like to follow have tons of information to share, and never brag about it.
For example: I “ran into” a gentleman in a Facebook group named Nicholas. He runs ‘Option Alchemist.’ He’s a very smart and humble options trader with many many years of experience navigating the markets. I have been talking to Nicholas for only a couple of weeks, but I have already learned quite a bit via “small talk.” These are the types I’m looking to learn from, not the bragger.
Ok, my rant/lecture is done. I hope you gained some insight if you are a new trader. The market is full of gimmicks and “get rich quick” schemes. Ignore them. They don’t have the answer you’re looking for. They don’t have the Holy Grail!