Keeping it Simple
You might remember a post I wrote some time ago. It basically described how I seemed to essentially have my best month trading during a span of barely using any type of outside research (i.e CNBC, MarketWatch, etc…). Just me and trusty old Google Finance.
Well after a couple of months of almost unknowingly maintaining this trend, my head remains clean and free from clutter.
Ever since we were forced into some sort of schooling system, it was recommended and admired to try and study as hard as possible and know every way to do something. Why else would they teach us how to find derivatives when there is something called a calculator?
“The problem came though,” says Simon Slade, “with those unable or unwilling to consume all this ‘excessive’ knowledge.” Those that were able to lock down, focus, and build on their strength were eventually the ones to succeed, according to Slade.
Am I babbling? Perhaps, but maybe it is just my way of getting the point across. There is no need to fluff or absorb every last bit of knowledge, method, or whatever it is. It is those that are able to create a “bread and butter” play that succeed in the wallet.
If I am good at basketball, then I don’t need to know how to tackle something. To be more specific, if I am good at defense, then I don’t necessarily have to be that good on the offensive end.
For everything you can be good at, there is always something else that can be dropped or not paid as much attention to.
We can bring this full circle with the stock market. Throughout the history of trading, there have been those that have made a living off one pattern or one sector. If I am a heavy technical trader, then do I really need to know all the fundamental numbers and facts of company x?
If you seem overwhelmed or flustered with information, then take a second to simplify. Take what you know best, and perfect that skill. If you don’t know that much about medicine, then why waste your time with Bio-stocks?
Do what you do? Ultimately you will even succeed too my standards.
image source - Cishore
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I couldn’t agree more. There are just too many indicators, strategies, analyst opinions, press releases etc. to keep up with and in the end none of them matter. Stick with what you know, improve upon it and become an expert at the strategy that works best for you.
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