The Empowered Trader by Mark Fechner

Learning to Respond to the Market, not just React

More Methods Do Not Lead to More Profit

with 3 comments

There is a school of thought that says that if you really want to be a profitable trader, you need to have all sorts of methods to trade. Sort of like a carpenter that needs to have a variety of tools to do the job the ‘right’ way. Well, having done some wood working myself and having worked with a few carpenters, I know that a master carpenter has one hammer that he or she uses all the time and only goes to something else if there are extraordinary circumstances to do so.

This thought that more methods means more trading opportunity and, by association, more money, is simply false. More trading MAY lead to more money but it will certainly lead to more risk. The objective of your trading strategy should be to eliminate risk from your trading life.

To help support this idea of more is not necessarily better, I found this article from Psychological Design examining why too many choices are bad for you.

This article talks about choices from a marketing point of view, but if you think about all the pressure put on retail traders to buy the next greatest strategy, the article is very appropriate.

Mark
eTradingCoach

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Written by etradingcoach

February 22, 2012 at 10:33 am

3 Responses

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  1. […] you think this is an argument for multiple methods, see my posting on Feb 22nd entitled More Methods Do Not Lead to More Profit. More is definitely not […]

  2. […] I wrote about this last month.  What I’d like to share with you is a entertaining and informative talk sponsored by TEDGlobal 2005 by psychologist Barry Schwartz on The Paradox of Choice.  When you listen to Barry speak, replace his obsession of blue jeans with trading methods and you’ll get the point.  Enjoy. […]

  3. […] In a similar vein, consider my earlier posting entitled, More Methods Does Not Mean More Profit. […]


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