I have been focusing on only one instrument while learning and taking only 1-2 setups to become consistent. Many experienced traders recommend this approach. What do you think is the reason for this? Sometimes I feel like a big part of the day is wasted just waiting for next setup or for stop or target to get hit.
IMO every trading vehicle exhibits its own peculiar idiosyncratic behavior. The longer you watch just one, the more you learn about it. But what you learn may or may not be applicable to other vehicles. Also, once you learn one, you may be loath to change. It is very easy to fall in love, and unlike with women, hard to fall out of love. So choose wisely at the start. It is perhaps like a sheep fetish.
1) Trading is generally a "waiting game" and mostly boring. 2) Seek "excitement" outside of the markets, i.e. parachuting, motorcycling, shark hunting et al. 3) Try to develop set-up(s) that are related to "critical times of the day" so you can always have something to look forward to instead of waiting for something that may never show.
By the time you get really consistent with one instrument you will have a good feel for price action in general. Then you can start looking at other stuff, once you get used to the little idiosyncrasies of the new instrument that Arthur mentioned you should be able to pull the trigger with some real confidence.
tnx, lol sheepfetish. Maybe also have to do so that if a cold spell is hit after some good runs have to go back to previous familiar lover.
I always figured that if I couldn't trade 1 or 2 things consistently well at the same time, I certainly shouldn't consider more. When learning something, remember that it's like the question "how do you eat an elephant?" - one piece at a time.
That's a good sign. It says you're on the right path. I will sometimes go 3-5 days waiting for setups. And while it can be frustrating, what is more frustrating is jumping into something for the hell of it, that's just going to throw you a loss. Patience and discipline are critical to successful trading.
I am on this journey of finding that 'one contract' myself... +8.7 points trading mini-Gold this week. Of course, was drowned out by the other losses (sugar, soybeans). I think I found my 'focus' contract...very interesting. Wondering right now on Friday afternoon where I would be by next Friday afternoon if I look at nothing but Gold charts this weekend and traded nothing but Gold futures next week...massive focus. Interesting...honestly, would have never thought Gold could be it...much less 'mini-Gold' for now. Of course with the view to scale up to 2-3 at most mini-Gold contracts and then just trade the large Comex Gold...very interesting
I keep harking back to this same example time and time again but I believe it warrants a regurgitation. How often does a heart surgeon perform a brain surgery in his lifetime? That's right, never. Would you entrust your brain to a heart surgeon? That's right, you wouldn't. Instead, you would go visit a neurosurgeon. It all comes down to "specialization".
The extreme case would be going to see a gynecologist about your prostate. Like stocks versus futures.