Trading is not just a series of trades; it is an ongoing journey of evolution that requires patience, learning, and adaptation. Just like the market that constantly changes, your strategy must evolve to remain effective and profitable. Today, I share with you some key points in the evolution of my trading strategy.
1. The chaos phase: "I will try everything!" 🤯
In the beginning, I jumped from one strategy to another, using every possible indicator and chasing every signal. It was like searching for the "holy grail" that would turn me into a millionaire overnight.
* The big mistake: I had no clear plan and no real understanding of what I was doing. I relied on emotions and was influenced by the noise.
* Result: Recurring losses, frustration, and a feeling that the market is "against me".
2. The research and learning phase: "Let's start with the basics" 📚
After many painful trades, I realized that I needed to stop and learn seriously. I started reading books, following successful traders, and most importantly: trading on a demo account.
* Focus: Understanding price action analysis, support and resistance levels, and recognizing trends. I started learning about risk management and how to determine the appropriate trade size.
* The right start: Focusing on one simple strategy and fully understanding it before thinking about anything else. For me, trend-following strategies were the starting point.
3. The application and discipline phase: "The plan is the master of the situation" 📝
This is where things started to change. I put together a written trading plan that included:
* Clear entry and exit criteria: When to enter and when to exit the trade (whether at a profit or a loss).
* Strict risk management: Setting a fixed percentage of capital to risk in each trade (e.g., 1-2%).
* Trading journal: Documenting every trade, the reason for entry, the outcome, and what I learned from it.
* Letting go of emotions: Making decisions based on the plan and analysis only, not on fear or greed.
* Focusing on patience: Waiting for confirmation of signals and avoiding overtrading.
4. The improvement and adaptation phase: "Nothing is constant except change" 🔄
As time passed and market conditions changed, I began to realize that my strategy needed continuous adjustment and improvement.
* Regular analysis: Reviewing the trading journal regularly to identify strengths and weaknesses in my strategy.
* Adapting to market conditions: The market changes between trending and sideways. I became aware of when I should adjust my approach or even stop trading if the conditions were not suitable for my strategy.
* Developing my tools: Perhaps adding simple auxiliary indicators or experimenting with different time frames, but always maintaining simplicity and clarity.
* Learning from the community: Interacting with other traders and sharing ideas.
5. The current phase: "Less is more" ✨
Today, my strategy is simpler and more focused than ever. I rely on a few tools and indicators that I understand well. I focus on quality rather than quantity in trades, and I always prioritize preserving capital over achieving quick profits.
The journey of evolving your strategy is your journey. Remember that it requires discipline, patience, and continuous learning. Don't give up at the first obstacle, and keep honing your skills.
