There’s so much noise in the world of investment and stock trading. In fact, according to Netpicks and experts like Nassim Taleb, it is usually this noise that hinders one’s assets to grow and one’s decision-making skills to be clouded. Fortunately, there are now alternatives that can lower the rate of distortion and noise in an investment strategy, and increase the traders’ opportunity to grow their portfolio. In a recent article from Netpicks, it is claimed that one right way to do this is through the use of “simple trading” techniques.
When Netpicks proposes the idea of simple trading, it doesn’t’ mean that one should just put all the assets in random funds and hope for the best. Doing that seems to make one’s assets more vulnerable to hidden risks and blow-ups. What Netpicks proposes is a trading style whose risks are still calculated through a robust risk management set-up but still allows for the edge and benefits to play out over time.
One problem right now with most traders is that they rely too much on various data, such as news releases, trading indicators, finance forums, investor guide sites and anything that shells out advice for any trader. While there’s inherently nothing wrong with understanding the principles in all of this data, relying too much on them makes a trader fall into the trap of what is aptly called an options or analysis paralysis.
When this paralysis happens, a trader misses significant data that helps grow their assets and even harms their trading activity in the process, not unlike what happens when one who is distracted by too much light and noise in the street gets harmed when he crosses it.
However, Netpicks offers a precaution. Only you can decide whether a simple approach works better on you. The best way to know the effect of a more straightforward approach is to use the simple strategy in a trade cycle, and then compare the results with the last run of your trades that don’t use more straightforward procedures.
Netpicks is an online trading education resource founded in 1996 headed by Mark Soberman (ceocfointerviews.com). The trading education and systems offered by Netpicks come from a coaching team that’s composed of actual and experienced traders.
It is the goal of Netpicks in the last 25 years of its personal trading experience to offer both beginners and advanced traders the basic principles to start and to prosper in their trading journey.