Think about your trading performance over the last year. Now imagine those results with all the trading mistakes you made removed.
Your trading performance would be dramatically better if you could eliminate those mistakes.
Most traders set up their charts in such a way that guarantees they’ll make the same costly errors over and over.
Adding too many indicators to your chart isn’t just sloppy – it’s costing you money.
I’ll describe a simple framework you can use to make sure your charts are set up to make your trading profitable.
First, let’s talk about driving a car.
When I turned 16, I bought my family’s Mazda 626. It was a decent starter car and I loved the freedom that came with it.
Two main gauges on the dashboard took up most of the visible area.
One was a tachometer – a gauge that measures the rotation speed of the engine in revolutions per minute (RPM).
The other was a speedometer – a gauge that measures the current speed of the vehicle.
As a teenager, I remember thinking these gauges were pretty cool – they gave the driver’s seat the feel of an airplane cockpit.
But over time you realize that one of these gauges is far more valuable than the other.
And for a very simple reason.
Although the tachometer is fun to look at, you make zero driving decisions based on its reading.
Compare that to the speedometer which you constantly check and adjust your driving to make sure you’re not speeding.
(Dad – if you’re reading this, rest assured that I never exceeded the posted speed limit – not even a single time!)
The fact that these gauges took up the same amount of space on the dashboard is insane.
Now look at your charts. How many “tachometers” do you have on them?
Any indicator that doesn’t directly drive pre-planned trading decisions should be removed.
Why are they there other than to look cool?
If they can’t be tied to a specific trading rule, then not only is it taking up space needlessly, but it’s introducing an opportunity for you to make a trading mistake.
Make sure any indicators you have on your chart are speedometers, not tachometers.
When you’re ready to take your trading to the next level, consider my Trading Success Roadmap. We’ll dive into your trading to find all the tachometers and replace them with speedometers to make your trading business efficient and self-improving over time.
