Develop your own trading strategy!

Many aspiring traders have difficulties developing a suitable strategy with which to make money. The problem is not that there are not enough strategies out there. The Internet and books are full of them. The problem is that making the right choice between strategies is a little more difficult.

That's why many beginners "follow" or "copy" a guru. Some trader claims success with a certain method, and soon there is a whole army of "followers" ready to copy his method. 

I'm not suggesting here that you can't learn from coaches. Of course you can. But the reason why the guru is so successful (if he really is) is usually not because of his method in and of itself. The guru’s success is usually because of the confidence he has in his method. 

That confidence is the edge the guru has over his followers. The core of the method may be something simple. Often it involves something that has been described or said a hundred times before. But the guru is successful with it because he is a disciplined trader, and disciplined traders have success with all kinds of methods.

From that point of view, it is best to develop a strategy yourself, perhaps based on an observation you have made. And even that observation can be something as simple as "lows in the morning in the S&P 500 are often buying opportunities." If a trader determines that this is true, then he can develop an attractive trading strategy around this idea that produces some nice gains in this index each month.

The point is that it is better for each trader to develop his own strategy based on his own observations, which he should not share with anyone else. After a testing phase, which can take several months, the trader can start trading using this strategy with small positions. Slowly, confidence in his own method will naturally develop. You usually have much more confidence in a method that you have developed yourself than in something that you have taken from someone else.
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