"If you chase two rabbits, you will not catch either one."
- Russian Proverb
I'm currently reading a book called "The One Thing" by Gary Keller. It's a very practical book explaining what makes some people so extraordinarily successful in something and why others aren't. The One Thing is all about focusing one's attention and efforts solely on the one most important thing you or your business can do in order to be more successful. The people who succeed are the ones who can narrow their focus so much so that they only concern themselves with getting better in one particular area. Alternatively, the people who multitask, having their minds wandering everywhere, struggle to make any real progress.
How does this relate to trading? Well a Trader should focus his/her energy on the things that make them money. Once you find the answers you need and make adjustments and create good habits, then move on to another area which will increase the amount of success.
For instance, if you get better results trading daily rather than weekly or monthly, focus your energies on becoming a better day trader. If you try trading futures, currencies, and stocks and you get better results with currencies, well focus your energy there. If you get best results with the EUR/USD or the USD/CAD, focus there and get better. If after trading the 1,2,3,4,5,15,30 minute charts and you find your best results are with the 5-min charts, specialize there. Keep doing this until you end up with your best performing industry/product, time frame, enter/exit strategy, indicators, sensitivity settings, money management approach, etc. Once you keep narrowing your focus down to the lowest level possible (backed by favourable back testing results), stay there and keep doing the same thing over and over and over again. This is the "secret" to success, in any industry, in any relationship, in any diet, in any sport, in any goal really. Focus on what is most important to your success and master it, make it a habit, and then move on.
If you get a chance, pick up the book as it's a great read. Have a great weekend!
