When I began my journey to become a trader, I dove straight into searching for strategies that would give me the quick and easy way to get what I wanted: make profit. Fast and easy with minimal effort. I could choose between elaborate strategies with lots of indicators or simply focus on those based on market structure.
There was also a middle ground, where I analysed a bit of both, or simply concentrated on liquidity. Not long after, I could also add order flow to my arsenal of analysis. Over time, I began to understand the importance of data as simple as the OHLC.
Evolution of Strategy
Over time I incorporated new data, theories and strategies. Before me unfolded a new understanding of the market, which made me feel much more passionate about the career I had chosen. As time went on, however, something didn’t quite fit amidst this sea of information.
The Challenge of Discipline
Trading as a career requires time to build a strategy with a solid foundation that also fits our lifestyle, which I have learned is achieved through discipline. “Put in the hard work now and life will be easy in the future. Take it easy now and life will be hard in the future. The decision is yours,” as a well-known friend said.
The Importance of Data Analysis
Nevertheless, studying and adopting a new strategy without knowing its variables and probabilities is like a slow walk on quicksand. The more excited you get about “seeing results”, the faster you begin to sink in that same system that sometimes seems to work but again doesn’t quite click. This is something that can plunge us into distrust.
Building Statistical Confidence
When I delved into the world of statistics and probabilities, I began to understand their great weight in trading. This allowed me to not only improve my risk management but to improve every aspect of my strategies. Understanding that it’s not about being right but working with the probabilities that are in your favour. It’s about working to understand and build the solid foundation that had been missing for years.
Practical Application
We could talk about one of Severin’s strategies that are based on the relationship of the daily open with the upper or lower quartile using the 0.25 Fibonacci tool, which depending on its position, gives us a 90% probability of taking highs or lows from the previous day. Sounds great, don’t you think?
Conclusion and Next Steps
In our lesson on how to build statistics, along with its Q&A, Igor explains step by step the best way to collect this information and use it to improve our technique and management. At some point in this statistics lesson, a member of our community asked Igor what recommendation he would give today to his past self, in his early days of analysing and studying, so that he could progress quickly and what would be the most valuable information he has gathered from data collection. Can you guess now what his answer was?
Let us know, see you in general chat.
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