Starting with a single strategy is not a bad way to go. If you don't see the right setup, you just don't trade. When you do see your pet pattern developing, don't hesitate. Hammer it when you have whatever confirmation your strategy calls for. You have a good chance at getting a high win rate as well as a high average profit. When you try to work multiple strategies as a beginner, things can get a little crazy. You aren't focusing your attention on your scanner or your watchlist for the play you know best. You make mistakes or establish a position late in the trend. And there are newbie mistakes that are common across all strategies, particularly in getting best use out of your platform or placing the proper order type. Sticking to one strategy for your first few sessions of live trading reduces all the variables you have to cope with. Whatever you do, don't just freestyle it because you don't see "your" pattern. "Plan your trade, and trade the plan", as the saying goes. Once you have got a handle on the basics then you will want to learn a couple more strats and then more and more, but concentrating on just 3 or 4 max is probably a good idea unless and until you go full time pro. Above all, try to live and trade another day. Accept small losses and never allow them to become big losses. Manage your risk intelligently. Stick with the basic rules of thumb found in 90% of all the books available on trading. The tried and proven methods are pretty much your best chance of surviving your first year of trading.
Actually, the clear winner when it comes to ranking useful patterns would be - trend. If you can identify and commit to obeying trend it will keep you out of high-risk low-probability trades. It will also give you a better win rate with more winners per year. It will stop you getting whipsawed in choppy or ranging markets. It will extend your winners so that you can improve your r:r and have the chance to pyramid the best trades. When you apply a long-term trend to your trades, this will also take account of prevailing underlying fundamental characteristics, sharpening the outcome of your FA analysis. Importantly, its not just an entry pattern. What other pattern would have kept you on the right side of EUR/CHF 2015?
For a new trader yes, this will cultivate a habit of concentration. One of the biggest perils to overcome is distractions. However as time goes by a growing 'adult' needs more than a simple diet. It would be impossible to grow without branching out into different strategies. After many years I now employ only one strategy, it's one I found works best but it's not exactly simple.
Yes. You define the "best pattern" that you recognize and are willing to trade. But there are also "good, but lesser than best" patterns which are also tradable. Over time, you will build up a mental library of "trades you should take because you know of their history". They won't all fall into the "best trade" category, but "good enough to play". Example... one of the "best trades"... involves a market in an uptrend that "oversold corrects" to the 200 day MA which has an up slope. That's a GREAT BUY setup.... HIGH probability of success and a great risk-reward. Unfortunately, may occur less than 1 time per year. The above param "describes" the trade. There are many others.... which can be learned and traded.
Well, that strategy may be working for a beginner. But as you proceed, I don’t think that you can restrict yourself to a single trade pattern.
Exactly...the trader needs to understand the market context that the pattern works well within because when that market context changes...the exact same pattern will stop working (as in the probability of success will be LESS) in comparison to the market context that the pattern performs well within. wrbtrader