Trading should be simple. Unfortunately, it is often made complex.
Complexity can be defined as “: a whole made up of complicated or interrelated parts.” The world of trading is rife with complexity.
There are technical concepts to learn, trends to analyze, patterns to spot and qualify, entry signals to heed, position management strategies to follow, stop losses to respect, all the while keeping an eye on the market environment through the analysis of internals. Seems complex enough? Then there's the issue with learning to use a trading platform, the use of scanning mechanisms, etc, etc.
There is complexity everywhere!
Plus, traders pile on the complexity by making trading even more complex than it needs to be. Complexity can increase exponentially when we add more “parts” to the whole and this is where traders get frustrated and overwhelmed.
Take any strategy of the ones we teach in the T3 Technical Strategies Course and/or the Omega Prop Trading Program. Its complexity will be established by the number of parts that makes up the “whole” system.
You have to analyze the trend that is in place, the “room” to move toward resistance/support, the quality of a given pattern, the risk-reward ratio, then calculate the position size according to your Trading Plan, etc. Then, after making sure that internals are in alignment (and maybe the sector is also cooperating). you finally can pull the trigger to buy/sell.
This in itself is complex enough.
Depending on the timeframe you trade (5-min. charts vs. weekly charts) you'll have more or less time to make all these calculations.
Now, add another strategy, ideally one that requires your attention at the same times of the day when you should be focusing on the first strategy (Notice the ironic tone of voice).
Can you feel the complexity creeping in?
Your brain has now received a jolt of complexity that's more than double the intrinsic complexity of each strategy! Imagine having to focus on the entry above the 5-minute high on strategy 1, while at the same time needing to deal with an entry on strategy 2 that might be different (But triggering at the same time).
This, of course, is perfectly doable for a seasoned trader who has enough experience and the right training (The T3 Method of course!) but think of the trader in his developmental stages…
Traders bring unnecessary complexity upon themselves because they feel that the more they attempt to do, the better their results. Nothing could be further from the truth. Most consistent traders I know share the exact opposite trait, they crave simplicity. That's not to say that trading is simple though. It means that their approach is straightforward and lacking unnecessary distractions. Their analysis is objective, their execution simple in nature, and focus is on one thing.
Traders often look to bring many strategies to their daily activity, simply because they feel like it would help them be ready to capitalize from “more opportunity”. What they don't realize is that the excessive complexity they bring with each addition could prove harmful, particularly through their development.
Crave simplicity and see the results!