M ost traders will tell you to focus on one strategy at a time. It will help speed up your learning and avoid distractions, they say. This is a good advice if you are a totally new to trading and still grasping the basics.
Such advice, however do no address human emotion. The “need to trade” is quite dominant in the early stages of trading, and only focusing on one strategy at a time can lead to greater losses. Let me explain:
Let’s say you are trading our PA strategy and look for trades on 5 min charts every day. Sooner or later there will be a period of several consecutive days when there are no good setups. During such times a disciplined trader will stay on the sidelines, however new traders will find it hard to resist taking trades based on setups that do not completely meet our system rules. The emotion of “need to trade” can result in losses and frustration and you may hear yourself saying ” Ah ! This strategy also doesn’t work, lets Google for a new one “
By trading a second strategy you can easily avoid taking improper setups and only focus only on good ones, now that you have more chances of participating in the market. By using multiple strategies you can address the emotion that we talked earlier.
Remember, do not overdo it by trading tons of strategies at the same time. Keeping a balance to maximize learning will be your key to success.
Let’s get started !