A lot is said about achieving simplicity in trading. How we need to keep our strategies simple, with objectively defined entry & exits, position sizing, risk management etc
But if simple things work so well, why does one naturally complicate them in the first place?
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But if simple things work so well, why does one naturally complicate them in the first place?
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To answer this we need to understand simplicity.
Is a Tendulkar straight drive which looks so simple, actually that simple?
Is a surgery which looks complicated, actually that difficult for an experienced surgeon?
Same goes for all the professionals in their fields.
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Is a Tendulkar straight drive which looks so simple, actually that simple?
Is a surgery which looks complicated, actually that difficult for an experienced surgeon?
Same goes for all the professionals in their fields.
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To create a simple profitable system requires lot of practice. We need to complicate things 1st inorder to understand what is essential & what is not. If on the onset we start resisting a little complication, then it only means we are not willing to go the distance.
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To progress, we need to explore a little & get out of our comfort zones. If we are so adamant to not complicate things, then it only stands in our way to advancement.
The problem actually starts when we desire simple answers to not so simple questions.
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The problem actually starts when we desire simple answers to not so simple questions.
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Even if you attend a seminar of a guru selling simple strategy, you can't perceive it totally. Because it's not your hustle. You've simply took a shortcut, to reduce your learning curve. But since no strategy works all the time, at the 1st instance of a dd, you'll reject it.
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Need to know the ins & outs of what we are dealing with, to get reasonable long term success in trading. It looks easy on twitter, where everyone is making money. But reality is different. The moment you think you understand something, market shows another scenario.
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Only change is constant & we need to embrace it. Something working perfectly right now doesn't mean it will work forever. That's why borrowed knowledge doesn't last for long. Need to improve your own cognitive skills to get fresh original ideas & work on them.
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A simple strategy doesn't necessarily be as simple. A complex strategy doesn't necessarily be as complex once mastered. With enough practice complex becomes simple.
Our goal should not be to look for only simple strategies, but to understand in depth & keep simplifying.
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Our goal should not be to look for only simple strategies, but to understand in depth & keep simplifying.
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"What could be more complicated than a rose for someone who wants to understand it? What could be simpler for someone who wants nothing? The complexity of thinking, the simplicity of beholding.” ~ Andre Sponville
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