2 Actions to take to be a lazy but profitable trader
Action #1: Take a trade only 1% of the time
Go onto your trading platform, go through the currencies or stocks that you look at. And see if a trade has lined up according to your winning strategy
If a trade has lined up – perfect.
Put in your entry and exit trading levels and get into your trade.
That takes 1% of your time.
And now you can sit back and be lazy and wait for another trade to line up.
You then have to wait for your current trade to hit your take profit or stop loss level.
This can take you up to 99% of the time.
But then, this all depends on the time period (time frame) you’re looking at.
If you’re looking at a five-minute chart, you can expect to look at the markets every 30 minutes or so. Because every five minute there will be a new candle (movement) on the chart.
I used to do this, but it took up too much time and was far too much work.
So this is what I did instead.
I took the exact same currency or stock and instead of looking at a five-minute chart, I bumped it all the way up to daily!
This means, every time there’s a new price movement, it would take an entire 24 hours until I see the next bar.
And so, I got into the trade waited a couple of days until it hit the stop loss or take profit level.
Sometimes it takes me more than 10 to 20 days, until the trade hits the take profit or stop loss level.
And it can take up to 10 days to find another trade.
What a breeze right? Right, but now I’m going to challenge you with a question.
Out of thousands and thousands of currencies and stocks to choose from locally and world-wide, WHY would it take up to 10 days just to find another trade?
This brings us to the next lazy action:
Action #2: Only look at the BEST currencies and stocks to trade
Sure, there are countless instruments to choose from.
But why bother?
You want the instruments that are traded the most. You want to trade instruments that have the best trends and low volatility. You want the instruments that you won’t have to worry about crashing or worse – DE-LISTING.
And so, how do you narrow this down to just a handful of instruments to choose from?
Well there are two ways…
With Forex you’ll simply look at the major currency pairs. These are currency pairs that are the most traded in the world.
And second. If you want to trade the best stocks, the JSE has already separated the best from the rest. And that is by sifting out the 40 top companies out of the 300+.
You can simply go to Google and type in the Top 40 JSE stocks and you’ll have your list of stocks to choose from.
These 40 stocks are basically the companies with the biggest market capitalisation (share price X number of shares listed per company). And they are the big Blue-Chip companies listed on the Johannesburg Stock Exchange.
This means, they are the most invested and traded stocks not only by locals but by international companies and individuals as well…
And so you can forget about trying to trade all 200 currency pairs and over 300 companies.
All you need are nine major currency pairs and 40 stocks…
Go through your watch list and wait for your trades to line up.
Then go and spend time with your family, do what you love or work on your career and success and leave the market to do it’s thing.
I hope I’ve given you some good tips on being a lazy but profitable trader…
“Wisdom yields Wealth”