In our day to day operations, in almost any area, we tend to make things more complicated than necessary, and this can significantly affect the outcome of our actions, although many times we do not realize. In trading, something similar happens.
Some traders spend day and night in front of their computer, test hundreds of strategies, follow all the analysis and signals that are found, load how many indicators occur to them in the graphics of their trading platform. Others, instead, seek the maximum simplicity and try to get benefits under pain of possible head.
1- Simple Strategies Are The Easiest To Follow And Optimize
Most beginners begin by studying the graphs and incorporating the more indicators, the better trying to get the positive input signal. The indicators usually give information too late to detect these input signals. Some indicators may be useful to be used as confirmation of another sign that you have detected, but many may not be helpful, and the combination of them may give us false or often contradictory signals.
2- Entering The Market Only With Strong Input Signals Can Help You Avoid Mistakes
It is not usually convenient for you to try to enter all market movements. More movements do not necessarily equal more benefits but more risk and generally more losses. A common mistake of the novice trader partner is (Partner คือ, which is the term in Thai) to want to open many positions so as not to miss opportunities to obtain benefits. If you are disciplined and do not enter the market if there is no strong input signal based on your strategy, it is easier for you to avoid unnecessary mistakes and to lose positions.
3- Wider Time Frames Reduce Your Stress When Operating
Trading platforms allow you to work with different time frames that generally range from 1 minute to 1 month. Many traders believe that they can obtain more benefits if they work with the shorter time frames since, generally, they generate more trading opportunities in less time. There may indeed be more opportunities in these shorter time frames, but many more false entry signals are also formed, and the market in such a short term has a much more random behavior.