Something contrasting happened in my training sessions last month. The incident took me to my formative years of trading and reminded me the big mistakes committed by me.
I had two back to back training sessions. On Saturday, it was a small group of eager retail customers, trying to make some income through stock markets. It was a long session of almost 8 hours with everybody very eager to learn everything possible. They wanted to know as many strategies as possible, as many adjustments as possible, hypothetical situations, fears, greed and it was a very interactive and participative session. I thoroughly enjoyed the session as the participation levels in the group were extremely high and curiosity to learn was great.
Next day I had one to one workshop with an HNI client who wanted to learn all alone. Highly charged with the previous day’s experience, I wanted to explain 10 different strategies to him in a detailed manner. But what is this?
After going through all the concepts, we started with strategies in the second half of the session. But after three strategies, he said, ‘I have found my setup. I do not want to consume my energy on any other strategies but would like to discuss few points in this one strategy only.’
So next one hour or so, we discussed that particular strategy thread bare and the workshop was over in less than 5 hours. He was very happy after the workshop and was ready to commit good portion of his portfolio for the particular set up, we discussed.
He was extremely focussed.
This reminded me of my initial years in trading. During those days, I would study anything available, anywhere. Different setups, different strategies, different analyses, so many groups, forums, so many possible opportunities – anything I thought would give me an edge over others.
I had with me multiple scanners, charts , news , information and so many alerts. I knew so many patterns and setups and was totally excited and eager to make huge money from the market. BUT, in spite of having so much of know-how, I kept losing money and it almost went on for three long years.
It was a clear case of a’ dog chasing two rabbits catches neither.’ I must admit I was chasing almost a dozen rabbits if not more, and obviously was not able to even catch ONE.
Are you making the same mistake?
If you analyse successful investors and traders, they are smart people not with all the knowledge of the world, but they are extremely smart investors with the set-up of trading they have chosen for themselves.
They have only one, two or maximum three set-ups. They are committed to those set-ups. They have very specific rules and parameters for selection and adjustment of trades. And, yes that’s it. After that they do not run behind anything. Slowly and steadily they master one set-up completely and then only they try to add on something in their armoury.
Choose your set-up, focus on it and become expert in it. You can create a meaningful second source of income and create wealth with great consistency. Personally, for all our existing clients, I will say master the combined strategy in Nifty (strategy number 3 in workshop) and second great and easy set-up is Master strategy (http://masterstrategy.in/). Stay with these for good time, master them completely and then if you need (most probably you may not!) go for anything else.
Let us not chase too many rabbits !