The biggest detour in trading is seeking complexity!
Looking back on a decade of trading, the biggest detour was overcomplicating trading. I was once obsessed with technical indicators: researching dozens of indicators, trying to find the 'holy grail'. Now, I only rely on moving averages, trend lines, and occasionally refer to MACD.
Demanding a 'perfect' system: I backtested and optimized dozens of trading systems, pursuing perfection, but ended up with none that worked. Getting caught up in the details of opening and closing positions: repeatedly studying how to accurately open positions, increase or decrease positions, and take profits. I eventually realized: every method has its pros and cons, and over time, advantages can become disadvantages.
Mistakenly believing 'busyness = profit': I always thought I needed to operate frequently for quick growth, but later understood that patiently waiting for big opportunities often yields more than busy trading. Getting trapped in the whirlpool of fundamentals: I invested a lot of energy in researching fundamentals, only to find that the conclusions were often uncertain and even interfered with pure trend judgments.
Blindly following 'winners': I learned from whoever made big money but ignored the individual differences in methods. Trading is like dressing; the fit is most important, and one must forge their own system.
In the end, I awakened to the fact that the essence lies in simplicity, focusing on the principle of 'following the trend'. Especially, it is crucial to align with the major trends on the monthly and weekly charts. Once the main direction is correct, the principles for opening positions become clear: only bet on opportunities with huge potential profits that can cover multiple losses.
The profit-taking principle is also very simple: ensure that the profit margin is far greater than the stop-loss.
After many years of trading, I haven't made the 'advancements' in techniques and systems I imagined; instead, I've been continuously simplifying my approach, and my methods have become more straightforward.
True progress lies in:
Patience: the ability to wait patiently without positions, enduring market noise.
Courage: when high-probability big opportunities arise, the daring to decisively enter the market and gradually increase positions.
Execution: once rules are set, act decisively.
Looking back, the biggest detour is not a single failure, but the time spent carving intricate branches while neglecting the trunk—recognizing and following the major market trends. Simplifying and focusing is the right path.