There Is No One-Size-Fits-All Approach To Trading

Trading is a deeply personal journey.

Despite the dream most mentors will preach...

There is no one-size-fits-all approach.

What works wonders for one trader might not suit another at all.

Think about it;

There are as many trading systems as there are traders, and no two people will execute the same strategy in exactly the same way...

...so, what does this mean for you?

When you adopt a trading system created by someone else, expect to tweak it to fit your style.

Embrace the elements that resonate with you and discard those that don’t.

Don't fall into the trap of being a trader who just aim to identically replicate what a mentor is teaching them.

You need to truly connect with your system to trade it profitably...

That connection only comes when you mould a strategy to align with your personality and lifestyle.

When selecting a trading system, it’s crucial to consider both the traits of the system and your personality/current life situation.

Here are some key factors to keep in mind:

Time Commitment:

How much time can you realistically dedicate to trading?

Many start as aspiring day traders, not realizing it demands long hours, high concentration, and a lot of discipline.

Alternatively, if you have a 9-5 and can't be on the charts, you'll very likely miss entries with your swing style, in which opportunities will be very few and far between.

Patience and Emotional Control:

Can you wait patiently for the right trade setups, sometimes for days or weeks?

Ironically, less patient individuals might struggle more with day trading as the constant screen-watching tests patience more than end-of-day setups.

Thinking Speed and Multitasking:

Are you a quick thinker or do you prefer taking your time to analyze?

Day trading often requires rapid decision-making and multitasking, so slower thinkers might find it challenging.

Problem-Solving Preference:

Do you enjoy solving complex puzzles and thinking deeply, or do you thrive on action and frequent trades?

Your system should match your preference for either generating frequent signals or allowing for deeper analysis.

Flexibility and Adaptability:

How easily can you change your mind or adapt to new information?

Flexibility is crucial, especially in fast-moving markets.

Risk Appetite:

Are you risk-averse or a risk-taker?

If you need some form of instant gratification, a system with a higher win rate and shorter holding times might suit you better.

System Alignment:

Does the system’s logic make sense to you?

Ensure the system aligns with your trading philosophy and the markets you wish to trade.

When deciding on a trading system...

...there are countless factors to consider.

These questions are just the beginning.

Before developing your own system, it's crucial to reflect on these aspects to ensure a good fit.

A system that doesn’t resonate with you won’t bring satisfaction when you catch a winning trade;

Instead, it will amplify your frustration when you experience a loss.

The true satisfaction in trading comes from creating your own concrete plan and executing on it.

If you’re simply guessing what the right decisions are, trading will become a stressful and maddening endeavour.

I've spoke with traders who follow concepts that make no sense to me, yet these concepts are the core of their trading strategy.

Whether their approach is valid to me...

...it doesn't matter as long as it works for them.

They find patterns that make sense in their world, and that's what’s important.

You should do the same – find what works in your world.

Ensure your lifestyle creates the least amount of friction to making the correct decisions.

The markets are incredibly complex, and seeking explanations for why a pattern works can be futile.

For some, it's enough to know that a pattern works without worrying about the why.

Others, however, need a deeper understanding to find peace and confidence in their strategies.

Ultimately, you need to know yourself.

Realize that you can’t just pick up any system and start making money immediately.

As you get to know the system inside and out, you’ll need to adjust it to fully trust it and make it your own.

Trust is essential – without it, a system is worthless.

And to build that trust, the system must align with your personality.

Stay disciplined, stay informed, and keep pushing forward.

Happy trading!

- Jonny