Just one strategy is enough

Because of the large number of sellers of courses on the Internet, the trader has become distracted in understanding what are the requirements for success. Most people think that the profit depends on the strategy. And when I say strategy, I'm talking about the rules for entering and exiting a trade. Either with or without indications.

This is a fatal mistake that all beginners and course sellers make. You find someone who sells a course that explains everything related to entry and exit and leaves the most important and largest part in forming the strategy. It is capital management, risk management, time management and psychological control.

Yes, when I write capital management, most people will think I am talking about lot size right?

Wrong, lot size is a small part of the concept of money and risk management.

So what do I mean by capital and risk management?

Capital management are methods that make you manage your account properly in terms of deposit amount, future deposit amounts and schedule, and schedule the withdrawal of capital after each period of time.

Risk management, are methods that guarantee the trader's success in the market, no matter how weak his trading strategy is in terms of success rate.

For example, if you rely on a strategy that has a 30% success rate, you will eventually lose because the percentage is less than 51%, right?

Here comes the role of risk management, you can enter a target equal to 3 times the stop (ie 1:3 RRR) and thus your success rate in the market becomes 90%.

So there is no such thing as a weak strategy or a strong strategy. If there was a strong strategy, we would find everyone (literally everyone) using it. Therefore, everyone who says about a certain strategy that it is strong, simply said that because it suited him psychologically, meaning that the conditions of entry and exit ... etc. are not psychologically difficult, or that it suited him because the conditions of entry and exit are suitable for him in terms of time.

How many people do you know who still use homing pigeons to communicate with their acquaintances?

Nobody?, that's because we found a better alternative solution.

Apply this to trading, if there was an effective method we would find everyone used it.

Diversification of strategies will also make you a failure, because all conventional strategies have a success rate of less than 70%. Therefore, do not pay much attention to the so-called success rate because it is a purely marketing word. Find the risk to reward ratio and multiply its number by the claimed success rate, and an approximate number of the success rate will appear.

Why do we find SMC and ICT so provocatively popular?

Simply because those who claimed to have discovered it, made real profits and published it, and then claimed that it was a new strategy. Although the components of the strategy have existed for decades. But the strength of their spread is great evidence that the trader is looking for big numbers and quick money.

Did you know that you only need 24 trades to change your account if you risk 1% of the account in each trade and the take profit is 3%? (that is, three times the stop)

Although the numbers are small, the results are powerful.

Bottom line, just one strategy is enough, with proper risk and money management, nothing will stop you.