Traders and Investors alike are constantly seeking winning trading strategies, but these winning day trading systems and strategies continue to remain elusive for over 90% of all day traders. Why is that? What makes them so difficult to identify? And why must you risk thousands of dollars of your own risk capital to determine if a trading strategy is a “winner” or a “loser”?
To help answer these questions about winning day trading strategies, we’ve identified one key aspect of winning trading strategies that can help you to quickly filter out the overwhelming majority of the trading systems and strategies that you come across in your investigation.
This one key attribute of a winning trading strategy can be used to quickly eliminate most day trading systems and strategies that you come across, leaving relatively few trading systems and strategies to examine.
The most effective winning trading strategies tend to be the most simple.
Quickly identifying winning day trading systems and strategies can be as simple as that. The best day trading systems and strategies tend to be the easiest to understand, learn, and master. They shouldn’t require knowledge of advanced statistical analysis, they shouldn’t require a highly complicated modeling program.
A winning trading system or strategy will be easy for the average Day Trader to quickly understand, learn, and then execute.
Consider this: in the world of Technical analysis, most Day Traders don’t really “understand” the indicators they are looking for; they are relying on statistical analysis to “guess” market direction and movement.
But of course, if you don’t fully understand that particular indicator, how it is determined, and WHY the market should behave in a certain way, then can you really be sure that the technical indicator that you THINK you see is really there? By and large, most technical or trend trading systems are difficult to learn and master, and should not be attempted by anyone but the very most advanced day traders.
But simple trading programs don’t rely on complicated technical indicators, or trend lines. Instead, they are simple to learn, understand, and execute, and the results show. And so the most easily determinable aspect of winning trading strategies is their simplicity and ease of learning and execution. This fact will allow you to quickly eliminate most trading techniques that you encounter.
As you consider any particular trading program, system, or strategy, the very first question you should be asking about that particular trading system or strategy is, how complicated is it? Is it simple? Do I really understand it?
If you determine that the trading program or system in question is NOT simple, and cannot be easily understood or learned, you can quickly eliminate that particular strategy or system and continue your search, without wasting valuable time in additional due diligence and analysis.