Keep It Simple, Stupid
The KISS Principle
Such a simple concept, and yet, so difficult to understand.
I will share a lesson that I have learned this past week.
I have been listening to Jack D, Swagger’s excellent book, Market Wizards, for the second time while walking my dog, Marley.
Perhaps you have seen her.
She is cute.
One of the traders profiled focuses on one commodity, allowing him to understand and take advantage of its specific price action.
Giving this some thought, I decided to apply this idea to the cryptocurrency market.
Typically when trading cryptocurrencies, I scan dozens of charts on multiple timeframes.
It can be overwhelming, and it consumes an enormous amount of time.
Naturally, monitoring multiple cryptos on multiple timeframes in a volatile market can be a futile exercise.
This past week, I decided to focus on Dogecoin and almost exclusively trade it using VWAPs, trendlines, RSI and TD.
I have found that focusing on one cryptocurrency instead of many resulted in improved focus and required less effort and profitable trading.
As my skills develop, my charts have are clean with fewer indicators and oscillators.
Initially, my Daily chart started with three moving averages. Currently, I begin with the 50 DMA and YTD VWAP. I then add anchored VWAPs and TD when appropriate.
I also started with six screens to gather as much information as possible.
Because, hey, the more screens, the better, right?
I was trying to drink from a fire hose.
I now realize that the extra screens created distractions that impeded my development.
Others can process more information than I can; however, I am becoming aware of my limitations or, as my buddy Chuck reminds me at every opportunity, “You are a #&#%%@ idiot.”
The point of my story is to follow the KISS principle. As with most things in life, simpler is better.
To quote my friend Nilay, “Simplification reduces cognitive load which will improve execution speed and enhance mental endurance.”
Life is Good
Each day, I post Trade Ideas with entries and exits in the Klarenbach Research Telegram Group.
For the past year, these ideas have been outperforming the stock market indices by a significant margin.
I track the results in real-time on my website and they can be found with these links: Current year and Last Year.
I enjoy discussing the markets, whether they are currencies, equities, commodities, or bonds.
Let’s have a conversation, and we can explore a new perspective of the markets that you can apply to your analysis.
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