To The Moon

This is what I learned by studying successful traders.

Source: Author’s Creation

What is the best strategy or style of investing that people should use to be successful?

Is it:
Value Investing
Low volatility Investing
Momentum Investing
Growth Investing
Smart Beta-Investing
Dividend Investing
Penny Stock Investing
Intraday Trading
Derivatives Trading
(or)
Trend Investing?

Here are my thoughts:

During times of uncertainty, low-volatility or value stocks perform better (probably due to lower drawdowns).

During times of economic boom, momentum and growth stocks perform better.

Different factors ride the trend and fall based on geopolitical and economic cycles. There are too many variables that affect and influence the performance of a particular investing style.

Thus, anyone can select a specific historical period and prove that a particular style worked better.

So which style should investors adopt?

In my opinion, The best traders use very few setups. They often find:
1. One method
2. A Single time frame
3. One Asset Class &
4. A specific set of stocks.

They spend time mastering it & then the system works for them.
They don’t stop there but continue to refine and hone their skills. This is where they gain an edge over others in the market.

What matters is NOT the style of investing or trading but,
1. How disciplined an investor or a trader following a particular style
2. Patience & Perseverance
3. Continuous & Constant learning
4. Honing skills
5. Focus & Practise

One grave mistake I made in my early days of trading stocks was:
1. To jump from one strategy to another,
2. Make complex assumptions,
3. Use multiple technical indicators, and
4. Read numerous social medial predictions
All these led to something called “ANALYSIS PARALYSIS.”

I saw my portfolio in green with consistent growth only when I adhered to ONE trading strategy over several market cycles. What Bruce Lee said shall apply aptly to stock trading as well.

I fear not the man who has practiced 10,000 kicks once, but I fear the man who has practiced one kick 10,000 times.
- Bruce Lee

So, it does not matter what investing style or factors you choose, but all you need is:

1. One Stock
2. One Trading Strategy
3. A Few Technical Indicators
4. A good mentor &
5. A great community of like-minded people

What’s your experience?

I’m still learning daily, & I certainly don’t know everything, but I can give you my perspective on any questions you have. Those I am sharing here are based on my experience and steps in the journey toward wealth creation.

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