In the trading world, there is a common but extremely dangerous mistake that many people, especially new traders, make – that is continually changing trading methods after each loss, without deeply understanding the method being used.
It sounds reasonable: 'This method lost, so it must be ineffective. Let’s switch to another.' But this mindset is precisely what causes most traders to fail. They do not realize they are falling into a never-ending loop called system hopping – jumping from one system to another with an illusion of finding a perfect 'holy grail.'
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1. No Method is Immune to Losses
In reality, every trading system, no matter how good, has a series of losing trades. Losing 3-5 trades in a row does not mean the system is wrong. It could be due to the market being sideways, unusual volatility, or simply that the probability is in a low phase.
If you rush to abandon a method as soon as you encounter a drawdown, it’s like retreating in the middle of battle – without understanding the battlefield. A system needs time, statistics, and sufficient real-world experience to prove its effectiveness.
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2. Jumping Methods = Never Truly Understand Anything
When you keep trying each method for a few trades and then quit, you only touch the surface – like studying 10 subjects, each for a week, and then dropping out. The result? You’re not good at anything. In trading, this prevents you from being able to:
• Analyze why the trade lost.
• Optimize entry/exit points.
• Manage capital appropriately for each system.
• Clearly understand the psychology that accompanies that method.
Without deep understanding, there is no trust. Without trust, you will discard it as soon as you encounter difficulties. And the loop continues, while the account keeps getting smaller.
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3. Winning Traders Do Not Use Many Methods, But Use the RIGHT ONE
Winning does not depend on whether you use a 'great' system or not, but on how well you understand it. Professional traders often stick with one system for many years, but they continuously:
• Backtest the data again.
• Optimize entry according to each market condition.
• Keep a detailed journal to understand weaknesses and strengths.
They don’t need 10 methods – just one, but they understand it to the core. That’s something that traders who keep jumping methods will never achieve.
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4. Want to Progress Far – Do Each Step Correctly
If you are truly serious about trading, instead of looking for more new methods, you should:
• Choose a system that fits your personal style.
• Backtest at least 100-200 trades on historical data.
• Forward test with a demo or small account.
• Keep a detailed journal of each trade: reason for entry, emotions, adjustments.
• Reassess after every 20-30 trades.
Your losses do not mean the system is bad. It could be that you haven’t adhered to discipline, haven’t managed capital correctly, or haven’t understood what phase the market is in. But if you don’t dig deeper, you’ll never know the truth.
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Conclusion: Don’t Be a Butterfly Flying Wildly
Trading is not a place for 'emotional' decisions. If you keep jumping from one method to another every time you get slapped by the market, you will forever be a butterfly flying wildly among flowers – beautiful, but never bearing fruit.
Want to survive and earn money long-term?
Choose one system – and understand it to the roots. There is no other way.
