The pursuit of a perfect trading system is the biggest mistake of traders.

Most traders use trading systems that are very complex. They either use three or four indicators together, or several indicators are combined with moving averages. Some traders use fundamentals and techniques together. The reason why trading systems are so complex is that traders pursue perfection. The pursuit of a perfect trading system is the biggest misunderstanding for traders, and it is also the hardest hurdle for traders to cross.

Because of the pursuit of perfection, the trading system becomes more and more complex.Complex systems are less stable than simple ones, and traders find it difficult to use them flexibly.Of complexity and simplicity, we should decisively choose simplicity. Only simple systems can stand the test of actual combat. Take the method of judging the trend. The simplest and most practical method is the conversion of highs and lows mentioned in Dow Theory. The uptrend highs are getting higher and the lows are getting higher and higher. If one day the price falls below the previous low, the trend will change, and the downward trend will reverse. Dow Theory has been around for more than 100 years, and it is still so practical because of its simplicity.

The road is simple, complex issues are simplified, and many things are artificially complicated.