This is a good start. I’ve seen most of the successful traders adopt a mixed bag approach and not bound by the rigid approach to markets.
Anyway, to improve the success rate, there are two basic things you need to do -
Do not over trade
Adopt simplicity.
The most common pit fall a trader falls to, is over trading. Just because he considers himself as a trader, he somehow feels compelled to trade multiple times in a day. A successful trader does not really care about the number of signals he gets to trade. Remember, ‘more the merrier’ concept does not work in the trading world. Merry, in the trading world, is quality.
When you do far fewer trades, automatically, the time spent per trade improves. When you devote more time to trade, the quality of analysis improves, and hopefully, with this, the outcome per trade also improves.
Over these years, I’ve seen the basic moving average system works beautifully well as a basic strategy. But I’ve seen very few takers for it and guess why? - Becuase even a 10th pass student can run an MA strategy. It does not feel ‘intellectual enough’ for a trader to adopt this simple strategy.
The point that I’m trying to make is that do not ignore a strategy just because of it is basic. Stick to basic and simple stuff, it works.
Considering the Buffet missed Facebook, Google , Amazon ,Netflix , does value investing relavant in the days where Technology can create value in exponential ways.
This is a difficult spot to be my friend! Anyway, here is what I would do -
Increase the net worth of the brokers - hopefully, this will weed out all the malicious brokers from the system
Run a mandatory product suitability test across all market participants - this will ensure clients are educated on the instruments they trade on
Allow eSigning of POA - this will allow competent brokers build beautiful onboarding experience, and this will hopefully introduce new market participation.
Glad you mentioned Varisty, else I would have peddled you Varsity Chapters
Here are 5 books that I really like -
Thinking Fast and slow by Daniel Kahneman - A superb book which helps you understand your own mind and your decisions making process. Especially helpful, when it comes to trading.
Antifragile by Taleb - A great book that helps you understand events, their impacts, and the frequency of occurrence. Try and read this book in the context of options writing
When the Genius failed - Helps you understand the importance of risk management. I also think this book helps you understand the importance of staying grounded in markets and in life:slight_smile:
One up on Wall Street by Peter Lynch - This book gave me the confidence that I too can pick stocks. So has a special place in my rack!
How will you measure your life by Allworth, Dillon, and Christensen - Not a book related to markets, but then it helped me set my expectations in life, which I think has a profound impact on the way you approach markets.
The decision to sell a stock has to be the exact opposite reasons for having bought a stock. For example, if you bought a stock because you liked the ROE, PAT Margins, and low leverage on Balance sheet…then you sell it when you see these variables have started to deteriorate.
Alternately, if you have bought a stock and the stock has rallied up way ahead of its fundamentals and therefore trading at ridiculous valautions, then you could sell off the stock and look for a buying opportunity later.
He may have missed, does not mean he has made no money during these years!
Colour of money remains the same, whether you made yours on Amazon or Fruit of the Loom, how does it matter?
